Thursday, identification and data collection products maker Intermec, Inc. (IN) posted a decline in fourth-quarter profit from a year-ago on a sizeable decrease in product revenue.
Intermec's fourth-quarter net earnings from continuing operations declined to $6.0 million or $0.10 per share, compared to net earnings from continuing operations of $9.3 million or $0.15 per share.
Excluding restructuring charges, non-GAAP adjusted net earnings were $7.6 million or $0.12 per share. Analysts polled by Thomson Reuters expected earnings of $0.05 per share. Analysts' estimates typically exclude one-time items.
Consolidated revenue declined to $179.1 million from $221.5 million; well above Wall Street revenue expectations of $166.50 million.
Segment-wise, product revenue decreased to $141.77 million from $182.67 million, while service revenue declined to $37.34 million from $38.79 million. In its product line, revenue from systems and solutions decreased 28% and revenue from printers and media declined 5%.
Geographically, revenue in North America declined 33%, Europe, Middle East and Africa revenues declined 8%; down 16% when adjusting for currency translation compared to the prior-year quarter. Revenue from Latin America increased 43%, while Asia Pacific revenue was virtually flat.
Intermec's gross profit margins of 39.7%, increased 0.5 percentage points over the prior-year period. Operating expenses excluding restructuring charges of $1.9 million were $61.9 million in the quarter, lower by 19% compared to $76.8 million in the year-ago period.
Operating profit from continuing operations was $7.3 million or 4.1% of total revenue compared with $7.6 million or 3.4% of total revenue in the year-earlier quarter.
Full year net loss from continuing operations was $10.9 million or $0.17 per share, compared to net earnings from continuing operations was $35.7 million or $0.58 per share. This year's results include a pre-tax restructuring charges of $20.6 million or $0.22 per share, while last year's results include a pre-tax restructuring charges of $5.7 million or $0.06 per share.
Excluding restructuring charges, non-GAAP adjusted earnings from continuing operations was $2.6 million or $0.05 per share. Analysts expected a loss of $0.03 per share this year.
Full year revenue decreased to $658.2 million from $890.9 million; comparable to analysts expectations of $645.59 million.
For the third-quarter, the company expect a loss of $0.01 per share to earnings of $0.03 per share. Revenue is expected to be $155 million to $165 million, compared to revenue of $163 million in the prior-year period.
Excluding restructuring charges of approximately $2 million, non-GAAP earnings per share is expected to be $0.01 to $0.05. Analysts expect earnings $0.03 per share on revenue of $161.65 million for the first-quarter.
IN closed Thursday's regular trading session at $12.94, down $0.73 or 5.34%, on the NYSE.
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