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8-K - FORM 8-K - Intermec, Inc.d428747d8k.htm
EX-10.1 - FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT - Intermec, Inc.d428747dex101.htm

Exhibit 99.1

 

LOGO

 

       

Intermec, Inc.

6001 36th Avenue West

Everett, WA 98203-1264

www.intermec.com

FOR IMMEDIATE RELEASE

INTERMEC PRELIMINARY THIRD QUARTER 2012 RESULTS

 

   

Global revenue of $192.8 million

 

   

Adjusted EBITDA of $18.5 million

 

   

Adjusted Net Earnings of $10.4 million or $0.17 per share

EVERETT, Wash. – November 1, 2012 – Intermec, Inc. (NYSE: IN) today announced preliminary financial results for its third quarter ended September 30, 2012.

Third quarter 2012 net revenues were $192.8 million and net earnings on a GAAP basis were $7.2 million, or $0.12 per diluted share, compared to 2011 third quarter revenues of $211.8 million and GAAP net earnings of $704 thousand, or $0.01 per diluted share. Excluding certain adjustments totaling $3.2 million (detailed in the table below), adjusted net earnings for the quarter were $10.4 million, or $0.17 per diluted share.

“I am pleased with our progress improving the Company’s overall performance during the third quarter,” said Allen J. Lauer, Intermec Chairman and Interim CEO. “The steps taken in the second quarter led to sequential improvement in gross margins, operating expenses and cash flow. Improved bookings in North America and Latin America contributed to a relatively significant increase in backlog. This provides an improved foundation as we maintain our focus on continuous growth in revenue and profitability.”

The Company remains engaged in a review of its long-term strategic direction and leadership requirements. The Company is continuing its work with its financial advisor BofA Merrill Lynch in performing its evaluation of the Company’s business and strategic alternatives. There is no specific timetable for completion of the evaluation. Concurrently, the Company is working with Spencer Stuart to conduct a nationwide search for its next Chief Executive Officer for the Company.

 

1


The following table presents the Company’s operating profit (loss), net earnings (loss) and earnings (loss) per share reported for the third quarter and nine months ended September 30, 2012 and October 2, 2011, on a GAAP basis and as adjusted excluding the impact of restructuring costs, acquisition-related costs and other adjustments, and also presents Adjusted EBITDA for those periods:

PRELIMINARY

INTERMEC, INC.

RECONCILIATION OF GAAP TO NON-GAAP OPERATING PROFIT (LOSS) AND ADJUSTED EBITDA

NET EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE

(Unaudited)

(In millions, except per share amounts)

 

     Three Months Ended September 30, 2012     Three Months Ended October 2, 2011  
     Operating
Profit (loss)
    Net earnings
(loss)
    Earnings (loss)
per share
    Operating
Profit (loss)
    Net earnings
(loss)
    Earnings (loss)
per share
 

Operating profit as reported

   $ 9.0      $ 7.2      $ 0.12      $ 1.0      $ 0.7      $ 0.01   

Acquisition related adjustments

     4.5        4.5        0.07        7.1        4.4        0.07   

Restructuring costs

     (1.1     (1.1     (0.02     0.6        0.6        0.01   

Executive severance

     —          —          —          —          —          —     

Forfeited executive stock awards

     —          —          —          —          —          —     

Impairment of goodwill

     (0.2     (0.2     —          —          —          —     

Deferred taxes and valuation allowance

     —          —          —          —          0.3        0.01   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP profit as adjusted

   $ 12.2      $ 10.4      $ 0.17      $ 8.7      $ 6.0      $ 0.10   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and other amortization

     4.7            5.1       

Stock-based compensation

     1.6            3.2       
  

 

 

       

 

 

     

Adjusted EBITDA

   $ 18.5          $ 17.0       
  

 

 

       

 

 

     
     Nine Months Ended September 30, 2012     Nine Months Ended October 2, 2011  
     Operating
Profit (loss)
    Net earnings
(loss)
    Earnings (loss)
per share
    Operating
Profit (loss)
    Net earnings
(loss)
    Earnings (loss)
per share
 

Operating profit (loss) as reported

   $ (58.2   $ (272.4   $ (4.52     (10.7     (9.2     (0.15

Acquisition related adjustments

     13.8        13.8        0.23        21.6        14.2        0.23   

Restructuring costs

     4.5        4.5        0.07        5.7        5.7        0.10   

Executive severance

     1.9        1.9        0.03        —          —          —     

Forfeited executive stock awards

     (1.2     (1.2     (0.02     —          —          —     

Impairment of goodwill

     41.3        41.3        0.69        —          —          —     

Deferred taxes and valuation allowance

     —          212.9        3.53        —          1.1        0.02   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP profit as adjusted

   $ 2.1      $ 0.8      $ 0.01      $ 16.6      $ 11.8      $ 0.20   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and other amortization

     13.7            13.4       

Stock-based compensation

     6.0            7.5       
  

 

 

       

 

 

     

Adjusted EBITDA

   $ 21.8          $ 37.5       
  

 

 

       

 

 

     

Third Quarter 2012 Operating Performance

 

   

Total revenue for the third quarter was $192.8 million, a decrease of 4% compared to the second quarter of 2012 and down 9% compared to the same period in 2011. On a constant currency basis total revenue declined 6% compared to the prior year.

 

   

Due primarily to the previously announced cost reduction initiatives, SG&A and R&D expense for the quarter was $74.8 million compared to $81.8 million in the second quarter 2012 and $85.7 million in the third quarter 2011.

 

   

In conjunction with its financial analysis and reporting procedures, the Company is evaluating its goodwill and long-lived assets including its intangible assets for impairment for the third quarter of 2012. The final income per share reported for the quarter could be less than the preliminary results reported in this press release, or could be a loss per share, if either or both of these items require adjustment as a result of this analysis. Any such adjustments would be non-cash charges and are not expected to result in any change to our Non-GAAP results.

 

   

Including gains from the sale of certain assets of $2.5 million, a favorable adjustment for restructuring costs of $1.1 million and a favorable adjustment of $200 thousand related to goodwill impairment finalization from the first and second quarter of 2012 analyses, GAAP operating profit was $9.0 million compared to GAAP operating profit of $1.0 million in the same period 2011.

 

2


   

North America revenues decreased 3% compared to the third quarter 2011, while Latin America revenue rose 16%. Europe, Middle East and Africa (EMEA) revenues declined 22% and Asia Pacific declined 31% compared to the third quarter 2011. On a constant currency basis EMEA revenues were down 18% compared to the prior year.

 

   

Total gross margin was 41.5% compared to 41.5% in the same period in 2011 and 39.4% in the second quarter 2012. Excluding certain adjustments, third quarter adjusted gross margins were 43.4% compared to 43.6% for the same period in 2011 and 41.2% in the second quarter 2012.

 

   

Adjusted EBITDA for the quarter was $18.5 million compared to Adjusted EBITDA of $17.0 million in the same period 2011 and Adjusted EBITDA of $10.2 million in the second quarter 2012.

 

   

Cash, cash equivalents, and short-term investments totaled approximately $86 million at quarter-end, an increase of over $11 million from the end of the second quarter 2012. During the quarter the company also repaid $5 million on its line of credit and the outstanding balance of its credit facility is now $80 million.

Recent Intermec and Vocollect Business Highlights

 

   

Launched the SRX2, an innovative new wireless headset for distribution centers (DCs) and warehouses that significantly enhances the operational efficiency of workers with superior voice recognition performance. Its modular design enables shared use of headset electronics across multiple shifts, resulting in lower total cost of ownership.

 

   

Announced a new HTML5 browser allowing for the development of OS agnostic web applications that can run on iOS, Android and select Intermec rugged mobile computers, enhancing workflow efficiency and offering increased flexibility to mobile workforces.

 

   

Announced the establishment of Intermec China, a Wholly Foreign Owned Enterprise (WFOE). Intermec China was recently granted a business license from the Chinese Ministry of Commerce to directly conduct business in China.

 

   

Awarded and began shipping RFID tags for a large Electronic Toll Collection (ETC) contract with the State of Sao Paulo and the Department of Transportation in Brazil to greatly improve collections revenue and to enable a more secure processing environment.

 

   

The 70 series rugged mobile computer enjoyed a record quarter with multiple large wins in the Direct Store Delivery, Rugged Delivery and Transportation and Logistics Deployment Environments.

 

   

Announced the CK3 Next Generation Series – the CK3X and CK3R which utilize a 1GHZ OMAP architecture to optimize workforce performance through industry-leading battery life, enhanced barcode scanning, superior device health monitoring and broad compliance for emerging industry standards such as HTML5.

 

3


About Intermec, Inc.

Intermec Inc. (NYSE: IN) is the workflow performance company. We design the leading data capture and information management solutions at the interface between mobile workers, assets, and customers. For more information about Intermec, visit www.intermec.com or call 800-347-2636.

Contact:

Dan Evans

Investor Relations

425-267-2975

dan.evans@intermec.com

Non-GAAP Financial Measures

This press release includes Non-GAAP financial measures for operating profit (loss), net earnings (loss), earnings (loss) per diluted share, and gross margins and also presents Adjusted EBITDA. Reconciliations of each of these Non-GAAP financial measures to the most directly comparable GAAP financial measures are detailed in the tables set forth in or attached to this release: Reconciliation of GAAP to Non-GAAP Operating Profit (Loss) and Adjusted EBITDA Net Earnings (Loss) and Earnings (Loss) Per Share, set forth in this press release and Reconciliation of GAAP to Non-GAAP Operating Profit (Loss) and Reconciliation of GAAP to Non-GAAP Gross Margins, for the three and nine months ended September 30, 2012, attached to this press release.

Our Non-GAAP measures should be read in conjunction with the corresponding GAAP measures. The Non-GAAP measures should be considered in addition to and not as an alternative or substitute for the measures prepared in accordance with accounting principles generally accepted in the United States of America.

We believe that excluding items such as, but not limited to, allowances for deferred tax assets, goodwill or asset impairment charges, restructuring charges, costs or adjustments related to completion of acquisitions, amortization of intangibles, executive severance and non-cash stock-based compensation expenses provides supplemental information useful to investors’ and management’s understanding of Intermec’s core operating results, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods.

The Company believes that the Non-GAAP financial measures that it uses provide investors the additional information to evaluate financial performance in a way that is comparable to measures reported by other technology companies. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is net earnings/loss before provisions for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered an alternative to, or more meaningful than, earnings before income taxes, cash flow from operations, or other traditional indicators of operating performance. Rather, EBITDA is presented because it is a widely accepted supplemental financial measure that we believe provides relevant and useful information. Our calculation of Adjusted EBITDA adds back the non-cash effect of stock-based compensation as accounted for under ACS 718 as we believe this is a meaningful view of our underlying cash earnings. Adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this Non-GAAP measure in the same manner.

 

4


Statements made in this release and related statements that express Intermec’s or our management’s intentions, hopes, indications, beliefs, expectations, guidance, estimates, 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. The forward-looking statements contained herein include, without limitation, statements regarding: our view of general economic and market conditions; our revenue, expenses, earnings or financial outlook for the current period or any other period; our impairment analysis for goodwill and long-lived assets, our deferred tax valuation allowances, the applicability and results of accounting policies and analyses used in our financial reporting, the necessity to update information in our periodic or other required reports; our cost reduction plans; and our ability to develop, produce, market or sell our products, either directly or through third parties, to reduce or control expenses, to improve efficiency, to realign resources, or to continue operational improvement and year-over-year or sequential growth. They also include, without limitation, statements about future financial and operating results of our Company after the acquisition of other businesses and the benefits of such acquisitions. When used in this document and in documents it refers to, the words “anticipate,” “believe,” “will,” “intend,” “project” and “expect” and similar expressions as they relate to us or our management are intended to identify such 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.

Actual results may differ from those expressed or implied in our forward-looking statements. Such forward-looking statements involve and are subject to certain risks and uncertainties, which may cause our actual results to differ materially from those discussed in a forward-looking statement. These risk factors 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, quarterly reports on Form 10-Q, and current reports on Form 8-K, which are available, among other places, on our website at www.intermec.com.

 

5


PRELIMINARY

INTERMEC, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2012
    October 2,
2011
    September 30,
2012
    October 2,
2011
 

Revenues:

        

Product

   $ 150,214      $ 165,294      $ 445,042      $ 484,781   

Service

     42,607        46,511        128,408        126,625   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     192,821        211,805        573,450        611,406   

Costs and expenses:

        

Cost of product revenues

     90,369        97,587        281,681        291,825   

Cost of service revenues

     22,468        26,363        66,663        72,115   

Research and development

     20,266        22,047        60,706        62,720   

Selling, general and administrative

     54,565        63,610        181,984        183,906   

Gain on sale of assets

     (2,534     —          (5,189     —     

Restructuring costs

     (1,130     644        4,468        5,756   

Impairment of goodwill

     (200     —          41,314        —     

Acquisition costs

     —          554        —          5,766   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     183,804        210,805        631,627        622,088   

Operating profit (loss)

     9,017        1,000        (58,177     (10,682

Interest income

     107        162        308        565   

Interest expense

     (683     (572     (2,315     (1,964
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) before income taxes

     8,441        590        (60,184     (12,081

Income tax expense (benefit)

     1,238        (114     212,225        (2,911
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss)

   $ 7,203      $ 704      $ (272,409   $ (9,170
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings (loss) per share

   $ 0.12      $ 0.01      $ (4.52   $ (0.15

Diluted earnings (loss) per share

   $ 0.12      $ 0.01      $ (4.52   $ (0.15

Shares used in computing basic earnings (loss) per share

     60,451        59,796        60,243        59,959   

Shares used in computing diluted earnings (loss) per share

     60,579        59,897        60,243        59,959   

 

6


PRELIMINARY

INTERMEC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

     September 30,
2012
    December 31,
2011
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 85,757      $ 95,108   

Short-term investments

     186        170   

Accounts receivable, net

     120,501        139,737   

Inventories

     103,814        103,622   

Current deferred tax assets, net

     7,419        84,541   

Other current assets

     31,950        24,226   
  

 

 

   

 

 

 

Total current assets

     349,627        447,404   

Deferred tax assets, net

     8,616        141,064   

Goodwill

     102,196        143,510   

Intangibles, net

     48,023        61,996   

Property, plant and equipment, net

     47,025        47,086   

Other assets, net

     19,974        28,230   
  

 

 

   

 

 

 

Total assets

   $ 575,461      $ 869,290   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 78,234      $ 92,607   

Payroll and related expenses

     23,478        32,540   

Accrued expenses

     26,947        35,118   

Deferred revenue

     53,976        47,234   

Finance lease obligation

     2,389        —     
  

 

 

   

 

 

 

Total current liabilities

     185,024        207,499   

Long-term debt

     80,000        85,000   

Long-term financing lease obligation

     1,474        —     

Pension and other postretirement benefits liabilities

     123,133        124,058   

Long-term deferred revenue

     33,695        28,960   

Other long-term liabilities

     15,878        15,344   

Commitments and contingencies

    

Shareholders’ equity:

    

Common stock (250,000 shares authorized, 63,430 and 62,956 shares issued and 60,239 and 59,717 outstanding)

     640        636   

Additional paid-in capital

     703,221        697,597   

Accumulated deficit

     (482,734     (210,327

Accumulated other comprehensive loss

     (84,870     (79,477
  

 

 

   

 

 

 

Total shareholders’ equity

     136,257        408,429   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 575,461      $ 869,290   
  

 

 

   

 

 

 

 

7


PRELIMINARY

INTERMEC, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

     Nine Months Ended  
     September 30,
2012
    October 2,
2011
 

Cash and cash equivalents at beginning of the period

   $ 95,108      $ 221,467   

Cash flows from operating activities:

    

Net loss

     (272,409     (9,170

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     27,172        21,020   

Deferred taxes

     212,173        (8,099

Stock-based compensation

     4,770        7,548   

Impairment of goodwill

     41,314        —     

Gain on sale of assets

     (5,189     —     

Gain on company owned life insurance

     (2,414     —     

Change in pension and other postretirement plans

     (7,178     (3,045

Change in other long-term liabilities

     (2,054     799   

Changes in operating assets and liabilities:

    

Accounts receivable

     20,577        (11,194

Inventories

     (6,740     (10,209

Other current assets

     (7,673     845   

Accounts payable

     (14,018     3,140   

Payroll and related expenses

     (9,196     3,079   

Accrued expenses

     (7,785     (5,766

Deferred revenue

     10,909        5,351   

Other operating activities

     (1,159     91   
  

 

 

   

 

 

 

Net cash used in operating activities

     (18,900     (5,610
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisitions, net of cash acquired

     —          (200,810

Additions to property, plant and equipment

     (6,980     (16,075

Maturities of investments

     —          6,564   

Proceeds from sale of assets

     6,359        —     

Proceeds from company owned life insurance

     10,238        —     

Capitalized patent legal fees

     —          (560

Other investing activities

     (346     (75
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     9,271        (210,956
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from issuance of debt

     27,000        111,700   

Repayment of debt

     (32,000     (34,700

Stock repurchase

     —          (10,014

Financing lease obligation

     3,863        —     

Stock options exercised and other

     1,461        2,370   
  

 

 

   

 

 

 

Net cash provided by financing activities

     324        69,356   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (46     (770
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (9,351     (147,980
  

 

 

   

 

 

 

Cash and cash equivalents at end of the period

   $ 85,757      $ 73,487   
  

 

 

   

 

 

 

 

8


PRELIMINARY

INTERMEC, INC.

RECONCILIATION OF GAAP TO NON-GAAP OPERATING PROFIT (LOSS)

(Unaudited)

(In thousands)

 

     Three Months Ended September 30, 2012     Three Months Ended October 2, 2011  
     GAAP
Operating
Results
    Non-GAAP
Adjustments
    Non-GAAP
Operating
Results
    GAAP
Operating
Results
    Non-GAAP
Adjustments
    Non-GAAP
Operating
Results
 

Total revenues

   $ 192,821      $ —        $ 192,821      $ 211,805      $ 2,178      $ 213,983   

Costs and expenses:

            

Cost of revenues

     112,837        (3,642     109,195        123,950        (3,170     120,780   

Research and development

     20,266        —          20,266        22,047        (18     22,029   

Selling, general and administrative

     54,565        (847     53,718        63,610        (1,178     62,432   

Gain on sale of assets

     (2,534     —          (2,534     —          —          —     

Restructuring costs

     (1,130     1,130        —          644        (644     —     

Impairment of goodwill

     (200     200        —          —          —          —     

Acquisition costs

     —          —          —          554        (554     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     183,804        (3,159     180,645        210,805        (5,564     205,241   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

   $ 9,017      $ 3,159      $ 12,176      $ 1,000      $ 7,742      $ 8,742   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Nine Months Ended September 30, 2012     Nine Months Ended October 2, 2011  
     GAAP
Operating
Results
    Non-GAAP
Adjustments
    Non-GAAP
Operating
Results
    GAAP
Operating
Results
    Non-GAAP
Adjustments
    Non-GAAP
Operating
Results
 

Total revenues

   $ 573,450      $ —        $ 573,450      $ 611,406      $ 5,082      $ 616,488   

Costs and expenses:

            

Cost of revenues

     348,344        (10,939     337,405        363,940        (8,540     355,400   

Research and development

     60,706        —          60,706        62,720        (35     62,685   

Selling, general and administrative

     181,984        (3,609     178,375        183,906        (2,159     181,747   

Gain on sale of assets

     (5,189     —          (5,189     —          —          —     

Restructuring costs

     4,468        (4,468     —          5,756        (5,756     —     

Impairment of goodwill

     41,314        (41,314     —          —          —          —     

Acquisition costs

     —          —          —          5,766        (5,766     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     631,627        (60,330     571,297        622,088        (22,256     599,832   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

   $ (58,177   $ 60,330      $ 2,153      $ (10,682   $ 27,338      $ 16,656   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9


PRELIMINARY

INTERMEC, INC.

RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGINS

(Unaudited)

(In thousands)

 

     Three Months Ended September 30, 2012     Nine Months Ended September 30, 2012  
     As Reported     Non-GAAP
Adjustments
    Non-GAAP as
Adjusted
    As Reported     Non-GAAP
Adjustments
    Non-GAAP as
Adjusted
 

Revenues:

            

Product

   $ 150,214      $ —        $ 150,214      $ 445,042      $ —        $ 445,042   

Service

     42,607        —          42,607        128,408        —          128,408   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 192,821      $ —        $ 192,821      $ 573,450      $ —        $ 573,450   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues:

            

Product

   $ 90,369      $ (3,642   $ 86,727      $ 281,681      $ (10,939 )a    $ 270,742   

Service

     22,468        —         22,468        66,663        —          66,663   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

   $ 112,837      $ (3,642   $ 109,195      $ 348,344      $ (10,939   $ 337,405   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margins:

            

Product

     39.8       42.3     36.7       39.2

Service

     47.3       47.3     48.1       48.1

Total

     41.5       43.4     39.3       41.2
     Three Months Ended October 2, 2011     Nine Months Ended October 2, 2011  
     As Reported     Non-GAAP
Adjustments
    Non-GAAP as
Adjusted
    As Reported     Non-GAAP
Adjustments
    Non-GAAP as
Adjusted
 

Revenues:

            

Product

   $ 165,294      $ —        $ 165,294      $ 484,781      $ —        $ 484,781   

Service

     46,511        2,178        48,689        126,625        5,082        131,707   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 211,805      $ 2,178      $ 213,983      $ 611,406      $ 5,082      $ 616,488   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues:

            

Product

   $ 97,587      $ (3,170   $ 94,417      $ 291,825      $ (8,540   $ 283,285   

Service

     26,363        —          26,363        72,115        —          72,115   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenues

   $ 123,950      $ (3,170   $ 120,780      $ 363,940      $ (8,540   $ 355,400   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margins:

            

Product

     41.0       42.9     39.8       41.6

Service

     43.3       45.9     43.0       45.2

Total

     41.5       43.6     40.5       42.4

 

10


PRELIMINARY

INTERMEC, INC.

SUPPLEMENTAL SALES INFORMATION BY CATEGORY

(Unaudited)

(Amounts in millions)

 

     Three Months Ended  
     September 30, 2012      Percent of
Revenues
    October 2, 2011      Percent of
Revenues
    Percent
Change in
Revenues
 

Revenues by category:

            

Intermec-branded:

            

Systems and solutions

   $ 92.6         48.1   $ 102.1         48.2     -9.3

Printer and media

     37.4         19.4     43.7         20.6     -14.4

Service

     33.6         17.4     35.2         16.6     -4.5

Voice solutions

     29.2         15.1     30.8         14.6     -5.2
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

   $ 192.8         100.0   $ 211.8         100.0     -9.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
     Nine Months Ended  
     September 30, 2012      Percent of
Revenues
    October 2, 2011      Percent of
Revenues
    Percent
Change in
Revenues
 

Revenues by category:

            

Intermec-branded:

            

Systems and solutions

   $ 271.4         47.3   $ 301.2         49.3     -9.9

Printer and media

     111.6         19.5     131.8         21.6     -15.3

Service

     103.4         18.0     107.4         17.5     -3.7

Voice solutions

     87.1         15.2     71.0         11.6     22.7
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

   $ 573.5         100.0   $ 611.4         100.0     -6.2
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

SUPPLEMENTAL SALES INFORMATION BY GEOGRAPHICAL REGION

(Unaudited)

(Amounts in millions)

 

     Three Months Ended  
     September 30, 2012      Percent of
Revenues
    October 2, 2011      Percent of
Revenues
    Percent
Change in
Revenues
 

Revenues by geographic region:

            

North America

   $ 104.0         53.9   $ 107.1         50.6     -2.9

Europe, Middle East and Africa (EMEA)

     50.2         26.0     64.7         30.6     -22.4

Latin America (LATAM)

     27.3         14.2     23.6         11.1     15.7

Asia Pacific (ASIAPAC)

     11.3         5.9     16.4         7.7     -31.1
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

   $ 192.8         100.0   $ 211.8         100.0     -9.0
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
     Nine Months Ended  
     September 30, 2012      Percent of
Revenues
    October 2, 2011      Percent of
Revenues
    Percent
Change in
Revenues
 

Revenues by geographic region:

            

North America

   $ 296.8         51.8   $ 292.6         47.9     1.4

Europe, Middle East and Africa (EMEA)

     160.7         28.0     200.6         32.8     -19.9

Latin America (LATAM)

     73.9         12.9     70.0         11.4     5.6

Asia Pacific (ASIAPAC)

     42.1         7.3     48.2         7.9     -12.7
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

   $ 573.5         100.0   $ 611.4         100.0     -6.2
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

11