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Intermec Inc. Reports Operating Results (10-Q)

November 14, 2011 | About:
10qk

10qk

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Intermec Inc. (IN) filed Quarterly Report for the period ended 2011-10-02.

Intermec has a market cap of $457.24 million; its shares were traded at around $7.68 with a P/E ratio of 25.6 and P/S ratio of 0.67.

Highlight of Business Operations:

One distributor, ScanSource Inc., accounted for more than 10% of our revenues. Total sales to this distributor were $45.4 and $135.2 million for the three and nine months ended October 2, 2011 and $38.8 and $109.4 million for the three and nine months ended September 26, 2010, respectively.

More specifically, for the three months ended October 2, 2011, worldwide revenues increased 26% over the prior-year quarter and increased 5% when revenue from acquired businesses is excluded. Continuing a trend from 2010 and the first two quarters of 2011, international revenues grew 24% over the prior-year quarter reflecting both organic growth and the benefit of acquired revenues in those geographies. Revenues in North America increased by 27% over the prior-year quarter, reflecting the positive effect of revenues from the Vocollect business acquired in March 2011 and organic growth. Among Intermec-branded products, Systems and solutions revenues grew 9%, and Printer and media revenue increased 6%. Intermec-branded service revenue increased by 5%, all as compared with the prior-year quarter.

For the nine months ended October 2, 2011, worldwide revenues increased 28% over the first nine months of 2010, and increased 13% when acquisitions are excluded. Continuing the trend from 2010 and the first two quarters of 2011, international revenues grew 35% over the prior year reflecting organic growth, the benefit of acquired revenues and the favorable impact of foreign currency conversion rates. Revenues in North America increased by 20% over the prior year reflecting primarily the positive effect of the revenues from the Vocollect business acquired in March 2011. Among Intermec-branded products, Systems and solutions revenues grew 16% and Printer and media revenue increased 10%, all as compared to the prior year and Intermec-branded service revenue increased by 9%, as compared with the prior-year period.

Geographically, product and service revenues increased in all regions for the quarter ended October 2, 2011, with the largest increase in North America of $23.0 million or 27%. EMEA and rest of the world increased $20.1 million, or 24%, over the corresponding prior-year period. The increase in North America revenues was mainly attributable to revenue from the Vocollect segment, but also included organic growth in the Intermec-branded portions of the business of more than 5%. The increase in EMEA revenues was mainly attributable to inclusion of revenues from the Vocollect business, but also included growth in our overall business in the region along with changes in foreign currency conversion rates that favorably impacted EMEA revenue by $3.3 million, or 6.5 percentage points. The increase in Latin America revenues, which accounted for approximately 6% of the total revenue increase in rest of the world, was primarily related to the addition of Vocollect revenues and strong growth in the southern most economies including Brazil. Asia had strong growth driven by printer sales. Across all regions the impact of foreign currency rates as compared to the foreign currency rates in the prior-year period was $4.4 million, or 2.6 percentage points, favorable to revenue. Operations of acquired entities contributed $19.0 million, $11.3 million and $3.7 million of the total increase in North America, EMEA and the rest of the world revenues, respectively, for the quarter ended October 2, 2011.

Geographically, revenues in North America increased $49.3 million, or 20.3%, while revenues in EMEA and the rest of the world increased by $49.2 million, or 32.5%, and $33.8 million, or 40.0%, respectively, over the corresponding prior-year period. The increase in North America revenues was primarily due to the operational activities of acquired entities. The increase in EMEA revenues was mainly attributable to the operational activities of acquired entities and some year-to-date improvement in economic conditions in the region along with the changes in foreign currency conversion rates that favorably impacted EMEA revenue by $9.2 million, or 6.1 percentage points, as compared to the foreign currency exchange rates used in the prior-year period. Across all regions the impact of foreign currency rates as compared to the foreign currency rates used in the prior-year period was $13.2 million, or 2.8 percentage points, favorable to revenue. The increase in all other geographic regions was related to strong economic conditions in Mexico and Brazil and strong printer sales in Asia. Operations of acquired entities contributed $44.6 million, $25.9 million and $7.4 million of the total increase in North America, EMEA and rest of the world revenues, respectively, for the nine months ended October 2, 2011.

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