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Intermec Inc. Reports Operating Results (10-K)

February 28, 2012 | About:
10qk

10qk

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Intermec Inc. (IN) filed Annual Report for the period ended 2011-12-31.

Intermec Inc has a market cap of $461.3 million; its shares were traded at around $7.64 with a P/E ratio of 25.8 and P/S ratio of 0.5.

Highlight of Business Operations:

Intermec-branded product revenues of $598.9 million for the year ended December 31, 2011, increased $53.6 million, or 9.8%, compared to 2010. The growth in our 2011 Intermec-branded product revenues was due to a $41.8 million, or 11.0%, increase in sales of systems and solutions products and $11.9 million, or 7.2%, increase in sales of printer and media products. The increase in printer and media products revenues was primarily driven by an increase in our sales to distribution channel partners, and the increase in systems and solutions products revenues was primarily related to increased product volumes. Increased sales in LATAM market contributed the most of any region to the growth in both the printer and media and systems and solution product lines.

Geographically, revenues in North America for the year ended December 31, 2011, increased by $64.2 million, or 18.6%, while revenues in EMEA, LATAM and ASIAPAC increased by $62.4 million, or 29.3%, by $26.4 million or 34.6% and by $16.1 million, or 35.2%, respectively, compared to 2010. The increase in North America revenues in 2011 was attributable to sales related to companies acquired in 2011, partially offset by decreased sales of Intermec-branded printer, media and RFID products. The increase in EMEA revenues in 2011 was related to growth in our overall business and sales related to companies acquired in 2011 and changes in foreign currency conversion rates that favorably impacted EMEA revenues by $8.6 million, or 4.5%, as compared to the foreign currency exchange rates experienced in 2010. Across all regions, the favorable impact of foreign currency rates as compared to the foreign currency exchange rates experienced in 2010 was $10.4 million, or 1.5%. The increase in LATAM revenue was primarily attributable to continued expansion of Intermec-branded product sales to existing customers. The increase in ASIAPAC was primarily attributable to continued growth in the markets we serve across multiple product lines.

Intermec-branded product revenues of $545.2 million for the year ended December 31, 2010, increased $25.6 million, or 4.9%, compared to 2009. The growth in 2010 product revenues reflects a $12.2 million, or 8.1%, increase in sales of printer and media products, and a $13.4 million, or 3.6%, increase in sales of systems and solutions products. The increase in printer and media products revenues was primarily driven by an increase in our sales to distribution channel partners, and the increase in systems and solutions products revenues was primarily related to increased product volumes.

Geographically, revenues in North America for the year ended December 31, 2010, decreased by $29.1 million, or 7.8%, while revenues in EMEA, LATAM and ASIAPAC combined increased by $26.2 million, or 14.0%, and $23.8 million, or 24.2%, respectively, compared to 2009. The reduction in North America revenues in 2010 was primarily attributable to a decline in U.S. federal government business, which was partially offset by an increase in sales revenues to commercial customers. The increase in EMEA revenues in 2010 was primarily related to growth in our overall business, partially offset by the changes in foreign currency conversion rates that unfavorably impacted EMEA revenues by $8.9 million, or 4.8%, as compared to the foreign currency exchange rates in 2009. Across all regions, the unfavorable impact of foreign currency rates as compared to the foreign currency exchange rates in 2009 was $2.3 million, or 0.9%.

Cash provided by operating activities consisted of net losses adjusted for non-cash items and the effect of changes in working capital and other activities. Cash provided by operating activities from continuing operations in the year ended December, 31, 2011, was $14.3 million and consisted of a net loss of $30.8 million, adjustments for non-cash items of $55.0 million and cash used in working capital and other activities of $9.9 million. Cash provided by operating activities from continuing operations in the year ended December, 31, 2010, was $21.8 million and consisted of a net loss of $5.3 million, adjustments for non-cash items of $18.0 million and cash provided by working capital and other activities of $9.1 million. Operating activities in 2010 provided lower cash flows compared to 2009, primarily due to an increase in accounts receivable as a result of higher revenue. In 2009, the $24.0 million of cash provided by operating activities was primarily due to cash provided by working capital and other activities of $25.8 million mainly due to volume driven decreases in accounts receivable and our efforts in inventory reduction, partially offset by cash payments for restructuring activities.

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