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Intermec Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 10, 2011 06:45AM

Intermec Inc. (IN) filed Quarterly Report for the period ended 2011-07-03. Intermec has a market cap of $451.6 million; its shares were traded at around $7.4 with a P/E ratio of 63.4 and P/S ratio of 0.7.



Highlight of Business Operations:

Research and Development Expenses. The total research and development expenses (“R&D”) were $22.9 and $40.7 million for the three and six months ended July 3, 2011, respectively, compared to R&D expenses of $18.9 and $34.4 million for the corresponding prior-year periods. The increase for the three and six months ended July 3, 2011, was primarily due to $6.1 and $8.1 million, respectively related to entities acquired in 2011 and expenditures for new product introductions.

Selling, General and Administrative Expenses. Total selling, general and administrative (“SG&A”) expenses were $66.1 and $120.3 million for the three and six months ended July 3, 2011, respectively, compared to SG&A expenses of $44.4 and $87.8 million for the corresponding prior-year periods. The increase in SG&A expenses for the three and six months ended July 3, 2011, as compared to the three and six months ended June 27, 2010, was primarily attributable to $13.3 and $18.7 million, respectively, of costs associated with our entities acquired in 2011 along with increased investment in organic Intermec sales and marketing initiatives.

Interest, Net. Net interest (income) expense was $0.6 and $1.0 million for the three and six months ended July 3, 2011, respectively, compared to net interest (income) expense of $0.0 and $0.1 million for the corresponding prior-year periods. The increase in net interest expense was mainly due to the addition of interest paid on borrowings under our Revolving Credit Facility which we used to finance a portion of the Vocollect acquisition in 2011. There were no similar borrowings in 2010.

Cash used in operating activities of $7.2 million in the first half of 2011 was primarily due to a net loss of $9.9 million offset by an increase in amortization and deferred tax related to acquisitions. Cash used in operating activities for the six months ended June 27, 2010, was $0.7 million and consisted of a net loss of $6.4 million, adjustments for non-cash items of $7.9 million and cash used by working capital and other activities of $2.2 million.

For the six months ended July 3, 2011, investing activities used $213.0 million of cash primarily due to the acquisition of Vocollect and Enterprise Mobile and capital expenditures of $11.5 million. Cash used in investing activities for six months ended June 27, 2010 was $8.2 million. This was primarily related to capital expenditures of $6.8 million. The increase in capital expenditures for the six months ended July 3, 2011, is due to the global ERP system investment for Europe which will be deployed during the third quarter of 2011.

Financing activities for the six months ended July 3, 2011, provided cash of $68.1 million primarily related to incurring debt of $97.0 million, offset by a $20.0 million repayment of this debt and $10.0 million of stock repurchased. Financing activities for the six months ended June 27, 2010, provided cash of $0.9 million related primarily to the issuance of stock under our Employee Stock Purchase Plan and exercised stock options.

Read the The complete Report



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