EX-99.1 2 q3_erexhibit.htm EXHIBITS TO Q3 EARNINGS RELEASE q3_erexhibit.htm
 
Intermec, Inc.
6001 36Pth Avenue West
Everett, WA  98203-1264
HTUwww.intermec.comUTH
FOR IMMEDIATE RELEASE
Contact:

Kevin McCarty
Vice President, Corporate Development &
Investor Relations
Intermec, Inc.
425-265-2472
HTUkevin.mccarty@intermec.comUTH

 
INTERMEC REPORTS THIRD QUARTER 2010 RESULTS
 
§  
Q3 Revenue of $169 Million, up 6% Y/Y, up 5% Q/Q
§  
Q3 Earnings Before Tax of $2.3M; Non-GAAP Earnings Before Tax of $4.1M
§  
Q3 Positive Cash Flow From Operations of $5.7M

EVERETT, Wash. – October 28, 2010 – Intermec, Inc. (NYSE: IN) today announced financial results for its third quarter, which ended September 26, 2010.

Third quarter 2010 revenues were $169 million and earnings before tax were $2.3 million. The Company recorded a $9.2 million primarily non-cash tax expense in the quarter to align its year-to-date provision with updated fiscal-year 2010 revenue and income estimates, as further described below. This resulted in a third quarter net loss of ($6.9) million, or ($0.11) per diluted share, compared to 2009 third quarter revenues of $159 million and a net income of $0.1 million, or $0.00 per diluted share.

“Third quarter revenue and operating margins met our expectations due to continued strength in international markets and gradual recovery in the North America region. Our new products and service offerings and channel programs continue to make progress and position the company for long-term growth,” said Patrick J. Byrne, Intermec President and CEO.
 
 
The following table presents our GAAP earnings before taxes, net loss, and diluted loss per share as reported for the third quarters of 2010 and 2009, and as adjusted by excluding restructuring charges.
 
   
Quarter Ended September 26, 2010
    
Quarter Ended September 27, 2009
  
($ in millions, except per share amounts)
  
Earnings from operations
before taxes
    
Net (loss) earnings
    
Diluted (loss) earnings 
per share
    
Earnings from operations
before taxes
    
Net earnings
    
Diluted earnings
per share
  
Earnings (loss) as reported
   $ 2.3     $ (6.9 )   $ (0.11 )   $ 0.1     $ 0.1     $ 0.00  
Restructuring charges
   $ 1.8     $ 1.2     $ 0.02     $ 2.7     $ 1.7     $ 0.03  
Earnings (loss) as adjusted
   $ 4.1     $ (5.7 )   $ (0.09 )   $ 2.8     $ 1.8     $ 0.03  


 
 
 
 

Excluding the restructuring charges, the non-GAAP net loss for the third quarter of 2010 was ($5.7) million, or ($0.09) per diluted share, as described in the Reconciliation of GAAP to Non-GAAP net earnings financial measures section of this release.

Tax Expenses

The $9.2 million tax expense in the quarter is primarily non-cash. There are three main factors that drove the third quarter tax provision:

§  
The Company reversed tax benefits recorded in Q1 and Q2, which were based on then-current estimates of fiscal-year 2010 revenue and earnings. Combined with tax on earnings in the third quarter, this year-to-date true-up is a non-cash tax expense of approximately $6.2 million. 

§  
The Company recorded a non-cash tax expense of approximately $2 million related to the establishment of an offshore headquarters for our supply chain operations and foreign sales activities.   

§  
The Company’s foreign sales office profits are taxed separately in those countries, resulting in cash tax expense of approximately $1 million for the quarter. 

The Company expects that as profitability increases, additional pre-tax income will lower its total tax rate to normal levels. 

Product and Service Introductions

§  
Intermec introduced the CS40 mobile computer, an innovative new product that has a small lightweight form factor.  It combines compact ruggedness with advanced data capture capabilities and a robust software environment required for line-of-business applications.  The CS40 is targeted at the merchandising, field service and transportation markets. It is fully compatible with Intermec’s printers, peripherals, SkynaxTM software, Smart Systems™ foundation, and IN Control™ managed services, enabling ease of configuration and effective deployment and support.
 
§  
Intermec acquired SkynaxTM, which provides software for secure mobile communications and data management. SkynaxTM software reduces the deployment time and life-cycle management costs of mobile computing systems.

§  
Intermec launched INcontrolTM services, the Company’s new managed services offerings. Utilizing a hosted web-based platform, INcontrolTM enables customers to outsource the day-to-day task of managing mobile devices to Intermec or its partners.

§  
In a joint development, Intermec and Seattle-based RAF technologies, a leader in intelligent information extraction and data verification solutions, have introduced VERDEXTM software.  VERDEXTM targets the Courier Express Parcel market and provides mobile address verification and correction capability exclusively on Intermec mobile computers. 

Other Business Activities

§  
The local government in Brazil's Rio Norte region will begin implementing its electronic vehicle registration system based on RFID sticker tags supplied by Intermec. Intermec received the initial order comprised of fixed RFID readers, handheld RFID readers, CN3 rugged mobile computers’ and RFID tags. 

§  
The Company added new North America distribution partners, Ingram Micro and Bluestar, to increase Intermec’s market reach and presence.  

§  
Intermec’s Asia Pacific (APAC) Partner Summit was held in Taiwan during September. The Summit launched the Company’s APAC PartnerNet Program, which was deployed in the Americas and EMEA earlier in the year. 

Third Quarter 2010 Operating Performance

§  
Total revenue of $169 million increased 6% from the prior-year quarter, and was up 9% when adjusted for currency translation.

§  
Geographically, compared to the prior-year quarter, revenues in North America declined 6%; excluding U.S. government sales, the region increased approximately 4%. In Europe, Middle East and Africa (EMEA) revenues increased 11%, up 21% in constant currency. The rest of world improved by 41%, led by Latin America’s increase of 62% and APAC growth of 13%.

§  
Systems and Solutions revenue grew 6%, Printer and Media revenue increased 10% and Service revenue was up 4%, all as compared to the prior-year quarter.

§  
Gross profit margins of 38.8% increased 0.2 percentage points compared to the prior-year quarter.  Product gross margins of 37.9% increased 0.9 percentage points while service gross margins of 42.2% decreased 2.5 percentage points over the third quarter 2009.

§  
Total operating expenses for the quarter were $63.1 million, compared to $61.2 million in the prior-year quarter. Operating expenses, excluding restructuring charges of $1.8 million in Q3’10 and $2.7 million in Q3’09, totaled $61.3 million and $58.5 million, respectively. Third quarter 2010 expenses also reflect an offsetting gain from the sale of intellectual property of $2.9 million.

§  
In the quarter, Intermec repurchased approximately 1.8 million shares of its common stock at a total cost of $20 million or $10.89 per share. Outstanding shares began the quarter at 61.8 million and ended at 60.0 million. Due to the timing of the repurchases, the average share count for Q3’10 was 61.4 million. There is $55 million remaining under the share repurchase authorization.

§  
The Company generated positive cash flow from operations during the quarter of $5.7 million; year-to-date cash flow from operations was $5.0 million. The Company’s cash, cash equivalents, and short-term investments ended the quarter at approximately $211 million. The Company has no debt.
 
 
 
 
 
 
Outlook – Fourth Quarter 2010

Intermec announced its financial guidance for the fourth quarter of 2010.

§  
Q4’10 revenues are expected to be within a range of $180 to $190 million.

§  
Q4’10 GAAP EPS is expected to be within a range of $0.04 to $0.09 per diluted share.

Conference Call Information

Intermec will hold its conference call on October 28, 2010 at 5:00 p.m. ET (2:00 p.m. PT).  The dial-in number for participants is 1-(888)-790-1746 (US and International); Passcode: (“Intermec”). The call will be broadcast on the Internet via a link from the investor’s Web page at HTUwww.intermec.com/InvestorRelationsUTH

###


Non-GAAP Financial Measures

This press release includes non-GAAP financial measures for earnings (loss) from continuing operations before taxes, net earnings (loss), and earnings (loss) per diluted share.  Reconciliations of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures are detailed in the Reconciliation of GAAP to Non-GAAP Net Earnings 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 generally accepted accounting principles.

We believe that excluding our restructuring charges (principally related to severance costs in connection with distinct organizational initiatives to reduce costs and improve operational efficiency) provides supplemental information useful to investors’ and management’s understanding of the Company’s core operating results, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods.

About Intermec, Inc.

Intermec Inc. (NYSE:IN) develops and integrates products, services and technologies that identify, track and manage supply chain assets and information. Core technologies include rugged mobile computing and data collection systems, bar code printers, label media, and RFID. The company’s products and services are used by customers in many industries worldwide to improve the productivity, quality and responsiveness of business operations. For more information about Intermec, visit www.intermec.com or call 800-347-2636.


(Forward-looking Statements)
Statements made in this release and related statements that express Intermec’s or our management’s intentions, 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. They include, without limitation, statements regarding: our cost reduction plans; our view of general economic and market conditions; and our revenue, expense, earnings or financial outlook for the fourth quarter of 2010, the full-year of 2010 or any current or future period.  They also include statements about our ability to develop, produce, market or sell our products, either directly or through third parties, reduce or control expenses, improve efficiency, realign resources, continue operational improvement and year-over-year or sequential growth, and about the applicability of accounting policies used in our financial reporting. 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 that may cause our actual results to differ materially from those discussed in a forward looking statement. These 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 and quarterly reports on Form 10-Q, which are available on our website at www.intermec.com.
 
 
 
 
 

 
 INTERMEC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 26, 2010
    
September 27, 2009
    
September 26, 2010
    
September 27, 2009
  
                         
Revenues:
                        
    Product
  
$
134,559
    
$
125,822
    
$
379,032
    
$
377,824
  
    Service
       34,154      
32,969
         100,072      
101,255
  
        Total revenues
       168,713      
158,791
         479,104      
479,079
  
                                 
Costs and expenses:
                                
    Cost of product revenues
       83,511      
79,289
         238,354      
243,583
  
    Cost of service revenues
       19,726      
18,239
         58,845      
58,089
  
    Research and development
       16,489      
14,065
       49,777      
45,353
  
    Selling, general and administrative
       47,741      
44,460
         138,573      
140,178
  
    Gain on intellectual property sales
       (2,944 )     
-
         (2,944 )     
-
  
    Restructuring charges
       1,817      
2,703
         2,779      
18,631
  
    Impairment of facility
       -      
-
         3,008      
-
  
         Total costs and expenses
       166,340      
158,756
         488,392      
505,834
  
                                 
Operating profit (loss)
       2,373      
35
         (9,288 )     
(26,755
)
Interest income
       243      
325
         787      
927
  
Interest expense
       (318 )     
(261
)
       (986 )     
(713
)
Earnings (loss) before income taxes
       2,298      
99
         (9,487 )     
(26,541
)
    Income tax expense (benefit)
       9,182      
35
         3,750      
(9,663
)
Net (loss) earnings
  
$
   (6,884 )   
$
64
    
$
   (13,237 )   
$
(16,878
)
                                 
Basic (loss) earnings per share
  
$
   (0.11 )   
$
0.00
    
$
   (0.21 )   
$
(0.27
)
Diluted (loss) earnings per share
  
$
   (0.11 )   
$
0.00
    
$
   (0.21 )   
$
(0.27
)
                                 
Shares used in computing basic (loss) earnings per share
       61,412      
61,714
         61,732      
61,593
  
Shares used in computing diluted (loss) earnings per share
       61,412      
62,062
         61,732      
61,593
  

 
 
 
 
 


INTERMEC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
   
September 26, 2010
    
December 31, 2009
  
ASSETS
            
Current assets:
            
  Cash and cash equivalents
  
$
173,781
    
$
201,884
  
  Short-term investments
       37,416      
36,301
  
  Accounts receivable, net
       107,412      
106,890
  
  Inventories, net
       85,336      
101,537
  
  Current deferred tax assets, net
       48,466      
51,140
  
  Assets held for sale
       3,196      
 -
  
  Other current assets
       16,543      
16,826
  
    Total current assets
       472,150      
514,578
  
                 
Property, plant and equipment, net
       36,255      
37,383
  
Other acquired intangibles, net
       2,718      
2,587
  
Deferred tax assets, net
       182,433      
182,457
  
Other assets
       31,004      
34,404
  
Total assets
  
$
   724,560    
$
771,409
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
  Accounts payable and accrued expenses
  
$
 86,597    
$
102,607
  
  Payroll and related expenses
       21,979      
20,683
  
  Deferred revenue
       37,261      
39,038
  
    Total current liabilities
     145,837      
162,328
  
                 
Long-term deferred revenue
       22,915      
22,010
  
Pension and other postretirement benefits liabilities
       78,673      
81,897
  
Other long-term liabilities
     15,116      
14,891
  
                 
Commitments and contingencies
                
                 
Shareholders’ equity:
                
  Common stock (250,000 shares authorized, 62,411 and 62,203 shares issued and 60,038 and 61,653 outstanding)
       624      
622
  
  Additional paid-in-capital
       692,370      
703,590
  
  Accumulated deficit
       (187,482
)
    
(174,245
)
  Accumulated other comprehensive loss
       (43,493
)
    
(39,684
)
    Total shareholders’ equity
       462,019      
490,283
  
Total liabilities and shareholders’ equity
  
$
   724,560    
$
771,409
  
 
 
 
 
 
 

INTERMEC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
   
Nine Months Ended
   
September 26, 2010
    
September 27, 2009
  
Cash and cash equivalents at beginning of the period
  
$
201,884
    
$
221,335
  
                 
Cash flows from operating activities:
                
Net loss
       (13,237 )     
(16,878
)
Adjustments to reconcile net loss to net cash provided by operating activities:
                
  Depreciation and amortization
       11,137      
11,879
  
  Impairment of facility
       3,008      
-
  
  Deferred taxes
       805      
(11,835
)
  Stock-based compensation
       7,515      
5,922
  
  Gain on intellectual property sales
       (2,944 )     
-
  
  Gain on company owned life insurance      (863 )       -  
  Changes in operating assets and liabilities:
                
    Accounts receivable
       (289 )     
33,743
  
    Inventories
       15,453      
27,684
  
    Accounts payable and accrued expenses
       (14,875 )     
(22,357
)
    Deferred revenue     (619 )       (6,556 ) 
    Other long-term liabilities
       273      
(40
)
    Other operating activities
       (343 )     
(2,199
)
      Net cash provided by operating activities
       5,021      
19,363
  
                 
Cash flows from investing activities:
                
Additions to property, plant and equipment
       (9,903 )     
(7,617
)
Sales of property, plant and equipment
       -      
1,867
  
Purchases of investments
       (6,645 )     
(35,645
)
Maturities of investments     5,800        -  
Capitalized patent legal fees
       (1,230 )     
(3,709
)
Other investing activities       68        -  
      Net cash used in investing activities
       (11,910 )     
(45,104
)
                 
Cash flows from financing activities:
                
Stock repurchase
       (20,037 )     
-
  
Stock options exercised and other
       1,482      
1,682
  
      Net cash (used in) provided by financing activities
       (18,555 )     
1,682
  
                 
Effect of exchange rate changes on cash and cash equivalents
       (2,659 )     
5,593
  
Resulting decrease in cash and cash equivalents
       (28,103 )     
(18,466
)
                 
Cash and cash equivalents at end of the period
  
$
   173,781    
$
202,869
  
 

 
 
 
 
 

 
INTERMEC, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET EARNINGS
(In thousands, except per share amounts)
(Unaudited)

 
Three Months Ended
              
Three Months Ended
  
   
 September 26, 2010
    
Non-GAAP Adjustments
    
Adjusted September 26, 2010
    
September 27, 2009
    
Non-GAAP Adjustments
    
Adjusted September 27, 2009
      
June 27, 2010
    
Non-GAAP Adjustments
      
June 27, 2010
  
                                                           
Revenues:
                                                          
    Product
$
134,559
        
$
134,559
  
$
125,822
        
$
125,822
    
$
128,729
          
$
128,729
  
    Service
  
34,154
          
34,154
    
32,969
          
32,969
      
32,432
            
32,432
  
        Total revenues
  
168,713
          
168,713
    
158,791
          
158,791
      
161,161
            
161,161
  
                                                           
Costs and expenses:
                                                          
    Cost of product revenues
  
83,511
          
83,511
    
79,289
          
79,289
      
81,952
            
81,952
  
    Cost of service revenues
  
19,726
          
19,726
    
18,239
          
18,239
      
19,799
            
19,799
  
    Research and development
  
16,489
          
16,489
    
14,065
          
14,065
      
18,315
            
18,315
  
    Selling, general and administrative
  
47,741
          
47,741
    
44,460
          
44,460
      
45,916
            
45,916
  
    Gain on intellectual property sales
     (2,944 )            (2,944 )    -              -         -               -  
    Restructuring charges
  
1,817
    
$
(1,817
)
  
-
    
2,703
    
$
(2,703
)
  
-
      
225
    
$
(225
)
    
-
  
    Impairment of facility
  
-
      
-
 
  
-
    
-
         -    
-
      
587
      
(587
)
    
-
  
        Total costs and expenses
  
166,340
      
(1,817
)
  
164,523
    
158,756
      
(2,703
)
  
156,053
      
166,794
      
(812
)
    
165,982
  
                                                                 
Operating profit (loss)
  
2,373
 
    
1,817
    
4,190
 
  
35
 
    
2,703
 
  
2,738
 
    
(5,633
)
    
812
      
(4,821
)
Interest income
  
243
            
243
    
325
            
325
      
394
              
394
  
Interest expense
  
(318
)
          
(318
)
  
(261
)
          
(261
)
    
(323
)
            
(323
)
Earnings (loss) before income taxes
  
2,298
 
    
1,817
    
4,115
 
  
99
 
    
2,703
 
  
2,802
 
    
(5,562
)
    
812
      
(4,750
)
    Income tax expense (benefit)
  
9,182
 
    
589
    
9,771
 
  
35
 
    
963
    
998
 
    
(2,854
)
    
263
      
(2,591
)
Net (loss) earnings
$
(6,884
)
  
$
1,228
  
$
(5,656
)
$
64
 
  
$
1,740
  
$
1,804
 
  
$
(2,708
)
  
$
549
    
$
(2,159
)
                                                                 
Basic (loss) earnings per share
$
(0.11
)
  
$
0.02
  
$
(0.09
)
$
0.00
 
  
$
0.03
  
$
0.03
 
  
$
(0.04
)
  
$
0.01
    
$
(0.03
)
Diluted (loss) earnings per share
$
(0.11
)
  
$
0.02
  
$
(0.09
)
$
0.00
 
  
$
0.03
  
$
0.03
 
  
$
(0.04
)
  
$
0.01
    
$
(0.03
)
                                                                 
Shares used in computing basic (loss) earnings per share
  
61,412
      
61,412
    
61,412
    
61,714
      
61,714
    
61,714
      
61,949
      
61,949
      
61,949
  
Shares used in computing diluted (loss) earnings per share
  
61,412
      
61,412
    
61,412
    
62,062
      
62,062
    
62,062
      
61,949
      
61,949
      
61,949
  
 
 
Nine Months Ended
  
   
 September 26, 2010
    
Non-GAAP Adjustments
    
Adjusted September 26, 2010
    
September 27, 2009
    
Non-GAAP Adjustments
    
Adjusted September 27, 2009
  
                                     
Revenues:
                                    
    Product
$
379,032
        
$
379,032
  
$
337,824
        
$
337,824
  
    Service
  
100,072
          
100,072
    
101,255
          
101,255
  
        Total revenues
  
479,104
          
479,104
    
479,079
          
479,079
  
                                     
Costs and expenses:
                                    
    Cost of product revenues
  
238,354
          
238,354
    
243,583
          
243,583
  
    Cost of service revenues
  
58,845
          
58,845
    
58,089
          
58,089
  
    Research and development
  
49,777
          
49,777
    
45,353
          
45,353
  
    Selling, general and administrative
  
138,573
          
138,573
    
140,178
          
140,178
  
    Gain on intellectual property sales
     (2,944 )           (2,944 )      -             -  
    Restructuring charges
  
2,779
    
$
(2,779
)
  
-
    
18,631
    
$
(18,631
)
  
-
  
    Impairment of facility
  
3,008
      
(3,008
)
  
-
    
-
      
-
    
-
  
        Total costs and expenses
  
488,392
      
(5,787
)
  
482,605
    
505,834
      
(18,631
)
  
487,203
  
                                         
Operating (loss) profit
  
(9,288
)
    
5,787
    
(3,501
)
  
(26,755
)
    
18,631
    
(8,124
)
Interest income
  
787
            
787
    
927
            
927
  
Interest expense
  
(986
)
          
(986
)
  
(713
)
          
(713
)
(Loss) earnings before income taxes
  
(9,487
)
    
5,787
    
(3,700
)
  
(26,541
)
    
18,631
    
(7,910
)
    Income tax expense (benefit)
  
3,750
 
    
2,007
    
5,757
 
  
(9,663
)
    
6,733
    
(2,930
)
Net (loss) earnings
$
(13,237
)
  
$
3,780
  
$
(9,457
)
$
(16,878
)
  
$
11,898
  
$
(4,980
)
                                         
Basic (loss) earnings per share
$
(0.21
)
  
$
0.06
  
$
(0.15
)
$
(0.27
)
  
$
0.19
  
$
(0.08
)
Diluted (loss) earnings per share
$
(0.21
)
  
$
0.06
  
$
(0.15
)
$
(0.27
)
  
$
0.19
  
$
(0.08
)
                                         
Shares used in computing basic (loss) earnings per share
  
61,732
      
61,732
    
61,732
    
61,593
      
61,593
    
61,593
  
Shares used in computing diluted (loss) earnings per share
  
61,732
      
61,732
    
61,732
    
61,593
      
61,593
    
61,593
  
 
 
 
 
 
INTERMEC, INC.
SUPPLEMENTAL SALES INFORMATION BY CATEGORY
(In millions)
(Unaudited)

 
Three Months Ended
          
Three Months Ended
    
   
September 26, 2010
    
Percent of Revenues
    
September 27, 2009
  
Percent of Revenues
  
Percent Change in Revenues
    
June 27, 2010
    
Percent of Revenues
    
Percent Change in Revenues
  
Revenues by category:
                                            
Systems and solutions
  
$
93.2
      
55.2
%
  
$
88.1
  
55.5
%
5.8
%
  
$
86.3
      
53.5
%
    
8.0
%
Printer and media
    
41.4
      
24.6
%
    
37.7
  
23.7
%
9.8
%
    
42.4
      
26.3
%
    
(2.4
%)
    Total product
    
134.6
      
79.8
%
    
125.8
  
79.2
%
7.0
%
    
128.7
      
79.8
%
    
4.6
%
Service
    
34.1
      
20.2
%
    
33.0
  
20.8
%
3.6
%
    
32.5
      
20.2
%
    
4.9
%
    Total revenues
  
$
168.7
      
100.0
%
  
$
158.8
  
100.0
%
6.2
%
  
$
161.2
      
100.0
%
    
4.7
%

 
Nine Months Ended
   
September 26, 2010
    
Percent of Revenues
    
September 27, 2009
    
Percent of Revenues
    
Percent Change in Revenues
  
Revenues by category:
                              
Systems and solutions
  
$
258.6
      
54.0
%
  
$
267.5
      
55.8
%
    
(3.3
%)
Printer and media
    
120.4
      
25.1
%
    
110.3
      
23.0
%
    
9.2
%
    Total product
    
379.0
      
79.1
%
    
377.8
      
78.8
%
    
0.3
%
Service
    
100.1
      
20.9
%
    
101.3
      
21.2
%
    
(1.2
%)
    Total revenues
  
$
479.1
      
100.0
%
  
$
479.1
      
100.0
%
    
0.0
%


 
SUPPLEMENTAL SALES INFORMATION BY GEOGRAPHIC REGION
(In millions)
(Unaudited)

   
Three Months Ended
          
Three Months Ended
  
   
September 26, 2010
    
Percent of Revenues
    
September 27, 2009
  
Percent of Revenues
    
Percent Change in Revenues
  
June 27, 2010
  
Percent of Revenues
  
Percent Change in Revenues
  
Revenues by geographic region:
                                        
North America
  
$
84.1
      
49.8
%
  
$
89.0
  
56.0
%
    
(5.5
%)
$
84.7
    
52.5
%
(0.7
%)
Europe, Middle East and Africa (EMEA)
    
50.8
      
30.1
%
    
45.9
  
28.9
%
    
10.7
%
  
49.7
    
30.8
%
2.2
%
All others
    
33.8
      
20.1
%
    
23.9
  
15.1
%
    
41.4
%
  
26.8
    
16.7
%
26.1
%
    Total revenues
  
$
168.7
      
100.0
%
  
$
158.8
  
100.0
%
    
6.2
%
$
161.2
    
100.0
%
4.7
%

 
Nine Months Ended
   
September 26, 2010
    
Percent of Revenues
    
September 27, 2009
    
Percent of Revenues
    
Percent Change in Revenues
  
Revenues by geographic region:
                              
North America
  
$
243.3
      
50.8
%
  
$
280.9
      
58.6
%
    
(13.4
%)
Europe, Middle East and Africa (EMEA)
    
151.4
      
31.6
%
    
133.4
      
27.8
%
    
13.5
%
All others
    
84.4
      
17.6
%
    
64.8
      
13.6
%
    
30.2
%
    Total revenues
  
$
479.1
      
100.0
%
  
$
479.1
      
100.0
%
    
0.0
%