Exhibit 99.1
Intermec Announces First Quarter Fiscal Year 2007 Results
EVERETT, Wash.--(BUSINESS WIRE)--May 3, 2007--Intermec, Inc.
(NYSE:IN) today announced financial results for its first quarter
ended April 1, 2007.
Intermec reported 2007 first quarter revenues of $179.3 million
and a loss of ($4.4) million, or ($0.07) per share, compared to 2006
first quarter revenues of $203.8 million and earnings from continuing
operations of $15.1 million, or $0.23 per diluted share. The first
quarter of 2006 included a gain on an intellectual property
settlement, which positively impacted operating profit from continuing
operations by $16.5 million, or $0.16 per diluted share.
The Company's tax benefit for the first quarter of 2007 was
negatively impacted by ($0.02) per share due to an unfavorable change
in foreign deferred tax assets. Conversely, the first quarter of 2006
tax provision was favorably impacted by the conclusion of a Canadian
tax audit.
Geographically during the first quarter of 2007, North American
revenues decreased 29 percent over the first quarter of 2006. Revenues
in Europe, Mid-East and Africa (EMEA) increased 16 percent over the
same prior-year period; and the rest of the world, consisting of Asia
Pacific and Latin America, increased 19 percent.
During the first quarter of 2007, Systems and Solutions revenue
decreased 20 percent and Printer and Media revenues decreased 4
percent over the first quarter of 2006. Service revenue increased 1
percent over the comparable prior-year period.
Restructuring and other cost reduction activities initiated in
2006 have been substantially completed. Lower operating expenses for
the first quarter of 2007 was in-line with earlier guidance,
reflecting a decrease of approximately $8.2 million or 11 percent over
the prior-year period.
The Company's cash equivalents and short-term investments position
at the end of the first quarter was $173.2 million. The decrease in
cash equivalents and short-term investments of $11.3 million during
the first quarter was primarily due to increased inventory levels.
"During the first quarter of this year, we saw a marked difference
in the performance by region," said Larry Brady, Chairman and CEO.
"This difference was driven in part by the earlier availability of our
next generation mobile computer, the CN3, in international markets.
Worldwide bookings for the CN3 continue to provide an indication of
increasing traction in enterprise bookings."
Other First Quarter Business Highlights
During the quarter, Intermec introduced a number of new products:
-- New radio configurations of the CN3, the Company's rugged
mobile computer. The CDMA radio configuration, more widely
used in the U.S., was introduced in February and the
integrated GPS configuration was introduced in March.
-- The IF30 is a cost-effective, high-performance fixed reader
that reliably reads and writes UHF RFID tags in "RF noisy"
environments. The IF30's receive sensitivity enables large
populations of tags to be interrogated at high speeds, which
is critical to many use cases involving dock doors, portals
and conveyors.
-- The portable PB40 direct-thermal receipt printer is geared for
markets from warehousing, pre-sales and route sales to home
delivery and field service. Intermec also introduced the PB41
printer, the ultimate print solution for store delivery, route
accounting, field service, logistics, home delivery and
pre-sales.
Second Quarter Outlook
Intermec also reported today its GAAP basis outlook for the second
quarter 2007.
-- Revenues for the period are expected within a range of $195
million to $205 million.
-- Diluted EPS from continuing operations are expected within a
range of $0.05 plus or minus $0.04.
Conference Call Information
Intermec will hold a conference call on May 3, 2007 at 5 p.m. ET
(2 p.m. PT). The call will be hosted by Intermec, Inc. Chairman and
CEO, Larry D. Brady, SVP, President and COO, Steven J. Winter, SVP and
CFO, Lanny H. Michael and Director of Investor Relations, Kevin P.
McCarty.
The dial-in numbers for participants is 1-(800)-857-8060 (US);
1-(210)-839-8066 (International); Passcode: ("Intermec"). The call
will be broadcast on the Internet via a link from the investor's Web
page at the Intermec website at www.intermec.com/InvestorRelations
About Intermec, Inc.
Intermec, Inc. (NYSE:IN) develops, manufactures and integrates
technologies that identify, track and manage supply chain assets. Core
technologies include RFID, mobile computing and data collection
systems, bar code printers and label media. The Company's products and
services are used by customers in many industries worldwide to improve
the productivity, quality and responsiveness of business operations.
For more information about Intermec, visit www.intermec.com or call
800-347-2636. Contact Intermec Investor Relations Director Kevin
McCarty at kevin.mccarty@intermec.com, 425-265-2472.
(Forward-looking Statements)
Statements made in this release and related statements that
express Intermec's or our management's intentions, hopes, indications,
beliefs, expectations, forecasts or predictions of the future
constitute forward-looking statements, as defined by the Private
Securities Litigation Reform Act of 1995, and relate to matters that
are not historical facts. They include, without limitation, statements
regarding potential increases in sales or product volumes, potential
easing of price competition or price erosion, and our ability to
launch new products as planned, improve gross margins or profits of
our business segments, our cost reduction and restructuring plans, our
revenue, expense or financial outlook for the second quarter of 2007
or any future period, and the applicability of accounting policies
used in our financial reporting. They also include statements about
our ability to compete effectively with our current products and newly
launched products, effectively complete the closure of certain
facilities and redeploy related functions, reduce expenses, improve
efficiency, realign resources, increase product development capacity,
leverage our research and development investment to drive significant
future revenue, and continue operational improvement and
year-over-year growth. Actual results may differ from those expressed
or implied in our forward-looking statements. These statements
represent beliefs and expectations only as of the date they were made.
We may elect to update forward-looking statements but we expressly
disclaim any obligation to do so, even if our beliefs and expectations
change. Such forward-looking statements involve and are subject to
certain risks and uncertainties. These include, but are not limited
to, risks and uncertainties described more fully in our reports filed
or to be filed with the Securities and Exchange Commission including,
but not limited to, our annual reports on Form 10-K and quarterly
reports on Form 10-Q.
INTERMEC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of dollars, except per share amounts)
(Unaudited)
Quarter Ended
-------------------
April 1, April 2,
2007 2006
--------- ---------
Revenues:
Product $141,512 $166,350
Service 37,806 37,481
--------- ---------
Total revenues 179,318 203,831
Costs and expenses:
Cost of product revenues 92,194 100,614
Cost of service revenues 22,583 22,861
Selling, general and administrative 69,561 77,793
Gain on intellectual property settlement - (16,538)
Restructuring charge - 1,107
--------- ---------
Total costs and expenses 184,338 185,837
--------- ---------
Operating profit (loss) from continuing operations (5,020) 17,994
Interest income 2,553 3,360
Interest expense (2,295) (2,216)
--------- ---------
Earnings (loss) from continuing operations before
income taxes (4,762) 19,138
Provision (benefit) for income taxes (330) 4,069
--------- ---------
Earnings (loss) before discontinued operations (4,432) 15,069
Loss from discontinued operations, net of tax - (1,078)
--------- ---------
Net earnings (loss) $(4,432) $13,991
========= =========
Basic earnings (loss) per share
Continuing operations $(0.07) $0.24
Discontinued operations - (0.02)
--------- ---------
Net earnings (loss) per share $(0.07) $0.22
========= =========
Diluted earnings (loss) per share
Continuing operations $(0.07) $0.23
Discontinued operations - (0.01)
--------- ---------
Net earnings (loss) per share $(0.07) $0.22
========= =========
Shares used in computing basic earnings (loss) per
share 59,990 63,025
Shares used in computing diluted earnings (loss)
per share 59,990 64,603
INTERMEC, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, amounts in thousands of dollars)
April 1, December
2007 31, 2006
-------------------
ASSETS
Current assets:
Cash and cash equivalents $143,961 $155,027
Short-term investments 29,268 29,510
Accounts receivable, net of allowance for
doubtful accounts and sales returns of $7,158
and $7,796 149,537 158,369
Inventories 132,442 119,027
Net current deferred tax assets 49,875 49,623
Assets held for sale 8,598 8,661
Other current assets 27,582 28,913
--------- ---------
Total current assets 541,263 549,130
Property, plant and equipment, net 43,501 43,453
Intangibles, net 4,413 3,978
Net deferred tax assets 178,354 190,683
Other assets 23,977 23,096
--------- ---------
Total assets $791,508 $810,340
========= =========
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current liabilities:
Accounts payable and accrued expenses $112,847 $113,207
Payroll and related expenses 22,522 32,008
Deferred revenue 50,491 45,021
Current portion of long-term debt 100,000 -
--------- ---------
Total current liabilities 285,860 190,236
Long-term deferred revenue 16,290 17,318
Long-term debt - 100,000
Other long-term liabilities 77,855 85,184
Shareholders' investment:
Common stock 601 598
Additional paid-in-capital 661,701 657,468
Accumulated deficit (224,279) (212,903)
Accumulated other comprehensive loss (26,520) (27,561)
--------- ---------
Total shareholders' investment 411,503 417,602
--------- ---------
Total liabilities and shareholders' investment $791,508 $810,340
========= =========
INTERMEC, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, amounts in thousands of dollars)
Quarter Ended
-------------------
April 1, April 2,
2007 2006
--------- ---------
Cash and cash equivalents at beginning of year $155,027 $256,782
--------- ---------
Cash flows from operating activities of
continuing operations:
Net earnings (loss) from continuing operations (4,432) 15,069
Adjustments to reconcile net earnings (loss) to
net cash provided by (used in) operating
activities:
Depreciation and amortization 3,093 2,588
Deferred taxes 210 2,792
Excess tax benefits from stock-based payment
arrangements (233) (2,183)
Changes in working capital and other operating
activities (9,352) 26,104
--------- ---------
Net cash provided by (used in) operating
activities of continuing operations (10,714) 44,370
Cash flows from investing activities of
continuing operations:
Capital expenditures (2,160) (4,268)
Purchases of investments (595) (19,695)
Sale of investments 837 -
Other investing activities (577) 73
--------- ---------
Net cash used in investing activities of
continuing operations (2,495) (23,890)
Cash flows from financing activities of
continuing operations:
Excess tax benefits from stock-based payment
arrangements 233 2,183
Stock options exercised 1,389 3,113
Other financing activities 521 881
--------- ---------
Net cash provided by financing activities of
continuing operations 2,143 6,177
Net cash provided by (used in) continuing
operations (11,066) 26,657
Net cash used in operating activities of
discontinued operations - (651)
--------- ---------
Resulting increase (decrease) in cash and cash
equivalents (11,066) 26,006
--------- ---------
Cash and cash equivalents at end of period $143,961 $282,788
========= =========
CONTACT: Intermec, Inc.
Kevin P. McCarty, Director of Investor Relations
425-265-2472
kevin.mccarty@intermec.com