-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OpO5+0Afb59gD+oqI1VnOk6BaKJMURw3IeGZLy36mtOF455zGNhZEP8YrTX2rhnM MRpgHNe3wY8YCmjFIlohdQ== 0001157523-06-010642.txt : 20061101 0001157523-06-010642.hdr.sgml : 20061101 20061101160124 ACCESSION NUMBER: 0001157523-06-010642 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061101 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061101 DATE AS OF CHANGE: 20061101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Intermec, Inc. CENTRAL INDEX KEY: 0001044590 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 954647021 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13279 FILM NUMBER: 061178894 BUSINESS ADDRESS: STREET 1: 6001 36TH AVENUE WEST CITY: EVERETT STATE: WA ZIP: 98203-1264 BUSINESS PHONE: 425-265-2400 MAIL ADDRESS: STREET 1: 6001 36TH AVENUE WEST CITY: EVERETT STATE: WA ZIP: 98203-1264 FORMER COMPANY: FORMER CONFORMED NAME: UNOVA INC DATE OF NAME CHANGE: 19970815 8-K 1 a5263909.txt INTERMEC, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 - -------------------------------------------------------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): November 1, 2006 Intermec, Inc. (Exact name of registrant as specified in its charter) Delaware 001-13279 95-4647021 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) file number) Identification Number) 6001 36th Avenue West Everett, Washington www.intermec.com 98203-1264 (Address of principal executive offices and internet site) (Zip Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On November 1, 2006, Intermec, Inc. issued a press release announcing its preliminary financial results for the quarter ended October 1, 2006. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description - ------- ----------- 99.1 Press release issued by Intermec, Inc. dated November 1, 2006. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Intermec, Inc. (Registrant) Date: November 1, 2006 By: /s/ Lanny H. Michael ------------------------------ Lanny H. Michael Senior Vice President and Chief Financial Officer EX-99.1 2 a5263909ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Intermec Announces Third Quarter 2006 Results -- Q3 Revenues of $195.9M, consistent with revised guidance -- EPS from Continuing Operations of $0.05 -- $50M of the Share Repurchase authorization completed EVERETT, Wash.--(BUSINESS WIRE)--Nov. 1, 2006--Intermec, Inc. (NYSE:IN) today announced financial results for its third fiscal quarter of 2006. Intermec reported 2006 third quarter revenues of $195.9 million and net earnings from continuing operations of $3.4 million, or $0.05 per diluted share, compared to 2005 third quarter revenues of $219.8 million and earnings of $11.3 million, or $0.18 per diluted share. The results for the current quarter include a restructuring charge relating to the closure of the Company's design centers in Goteborg and Lund, Sweden, announced in the first quarter, which negatively impacted operating profit by ($1.8) million, or ($0.02) per diluted share. Also, the Company adopted amendments to its US pension and certain employee plans, effecting a "freeze" to benefit accruals for most participants as of June 30, 2006. These changes resulted in a net curtailment gain which positively impacted operating profit from continuing operations in the current quarter by $2.1 million, or $.02 per diluted share. The Company's 2006 third quarter includes ($0.8) million of incremental stock compensation expense recorded under the provisions of FAS 123-R, which negatively impacted EPS by ($0.01) per diluted share. The effective tax rate for the current-quarter was 37.2 percent, compared to 12.4 percent in the prior-year quarter. Third quarter 2006 revenue decreased 11 percent compared to the prior-year quarter. Geographically, North American revenues decreased 14 percent over the comparable prior-year period. Revenues in Europe, Mid-East and Africa (EMEA) decreased 17 percent; and the rest of the world, consisting of Asia Pacific and Latin America, increased 19 percent. By product line during the third quarter, Systems and Solutions revenue decreased 20 percent and Printer and Media revenues increased 6 percent over the comparable prior-year period. Service revenue decreased 3 percent over the comparable prior-year period. During the quarter the Company repurchased stock with an aggregative value of approximately $50 million pursuant to its board authorization of $100 million, at an average share price of $28.77. The Company's cash equivalents and short-term investments position at the end of the third quarter was $237.7 million. The decrease in cash equivalents and short term investments of $85.1 million during the third quarter was primarily due to the stock repurchases and to the increase in inventory. "In response to disappointing results for the third quarter, we are accelerating cost initiatives and aggressively reducing inventory," said Larry D. Brady, Chairman and CEO. "We expect to announce specific cost reduction plans and related restructuring activities before the end of November." Other Third Quarter Business Highlights -- Intermec named Lanny H. Michael Senior Vice President and Chief Financial Officer. During the quarter, Intermec introduced an array of new products: -- The CN3, a small rugged mobile computer with unique communications capabilities, provides users with access to multiple voice and high-speed data options. The CN3 is the first mobile computer to offer integrated GPS and Bluetooth(R) capabilities along with 3G WAN and Cisco Compatible WiFi(R) connectivity simultaneously in one device. -- The Intellibeam(TM) EX25 is the first area imaging bar code scan engine to read and decode 1D and 2D bar codes in any orientation from six inches to over 50 feet, as well as composite and postal codes. The EX25 can also operate as an auto focusing camera in applications requiring photographs such as evidence of damaged, expired or unsealed goods. -- The CV30 is a rugged, fixed-mount computer designed to operate in challenging mobile vehicle based environments. The CV30 offers a choice of Microsoft Windows CE.NET 5.0 or Windows Mobile 5.0 operating systems, multiple mounting options, Cisco(R) Compatible WiFi(R), Bluetooth(R) and RFID support. Radio Frequency identification "RFID" was also a source of highlights for the quarter: -- Intermec, an RFID pioneer and global RFID technology leader, received an award from Frost & Sullivan for RFID market strategy leadership in the Asia Pacific market for the years 2005-2006. The Frost & Sullivan Award for Market Strategy Leadership is presented each year to a company whose market strategy has yielded significant gains in market presence during the research period. -- Intermec was selected to provide the Gen 2 RFID bag tag printer system for the Hong Kong International Airport (HKIA) in Hong Kong. The Intermec RFID(TM) Gen 2 printers will be installed at check-in counters to enhance the existing RFID baggage sorting system, which was first installed in 2005. HKIA is the first airport in the world to implement an end-to-end RFID baggage tagging/sorting system. Intermec announced Medallion Complete, a new world-class extended service coverage program for Intermec data collection equipment. Available in 14 countries around the world, Medallion Complete covers eligible Intermec devices against incidental damage experienced in the work environment. Under normal industry practice, incidental damage to data collection equipment - as opposed to normal wear or component failure - is not covered by standard service agreements. Repairs due to damage are infrequent, but can be costly, as they typically involve the most expensive components of a device, such as a touch screen or LCD. Fourth Quarter Outlook Intermec also reported today its GAAP basis revenue outlook for the fourth quarter 2006. Revenues for the period are expected to be within a range of $210 million to $230 million. Intermec will hold a conference call on November 1, 2006 at 5 p.m. ET (2 p.m. PT). The call will be hosted by Intermec Inc. Larry D. Brady, Chairman and Chief Executive Officer, Steven J. Winter, Senior Vice President and Intermec Technologies President and Chief Operating Officer, Lanny H. Michael, Senior Vice President and Chief Financial Officer, and Kevin P. McCarty, Director of Investor Relations. The dial-in numbers for participants is 1-(888) 791-2132 (US); 1-(210) 234-0001 (International); Passcode: ("Intermec"). The call will be broadcast on the Internet via a link from the investor's Web page at the Intermec website at www.intermec.com/InvestorRelations About Intermec Inc. Intermec Inc. (NYSE:IN) develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. 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. Contact Intermec Investor Relations Director Kevin McCarty at kevin.mccarty@intermec.com, 425-265-2472. (Forward-looking Statement) Statements made in this release and related statements that express the Company's or management's intentions, hopes, beliefs, expectations 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, the statements regarding the Company's cost reduction and restructuring plans and its financial outlook for the fourth quarter of 2006. They also include statements about the Company's ability to continue to improve profit of its business segments, compete effectively with its current products and newly launched products, effectively complete the closure of certain facilities and redeploy related function, reduce expenses, improve efficiency, realign resources, increase product development capacity, leverage its research and development investment to drive significant future revenue, and the ability to continue operational improvement and year over year growth. Actual results may differ from those expressed or implied in the Company's forward-looking statements. These statements represent expectations only as of the date they were made. Intermec may elect to update forward-looking statements but expressly disclaims any obligation to do so, even if the Company's expectations change. Such forward-looking statements involve and are subject to certain risks and uncertainties. These include, but are not limited to, risks and uncertainties described more fully in the Company's filings with the Securities and Exchange Commission including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. INTERMEC, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands except per share amounts) Three Months Ended Nine Months Ended --------------------- --------------------- October 1, October 2, October 1, October 2, 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Revenues Product $156,951 $179,640 $515,741 $522,590 Service 38,996 40,174 115,474 111,178 Intellectual property settlement - - 23,000 - ---------- ---------- ---------- ---------- Total Revenues 195,947 219,814 654,215 633,768 Costs and Expenses Cost of product revenues 98,807 107,054 315,811 301,755 Cost of service revenues 21,026 25,083 65,311 67,053 Cost of intellectual property settlement - - 6,462 - Selling, general and administrative 70,573 74,143 226,862 222,691 Restructuring charge 1,758 - 4,000 - ---------- ---------- ---------- ---------- Total Costs and Expenses 192,164 206,280 618,446 591,499 ---------- ---------- ---------- ---------- Operating Profit From Continuing Operations 3,783 13,534 35,769 42,269 Gain on sale of investments - - 2,305 - Interest income (expense), net 1,705 (665) 4,615 (3,911) ---------- ---------- ---------- ---------- Earnings From Continuing Operations Before Taxes 5,488 12,869 42,689 38,358 Provision for income taxes 2,043 1,601 12,878 9,823 ---------- ---------- ---------- ---------- Earnings Before Discontinued Operations 3,445 11,268 29,811 28,535 Earnings (loss) from discontinued operations, net of tax 1,352 (6,697) (667) (8,416) ---------- ---------- ---------- ---------- Net Earnings $4,797 $4,571 $29,144 $20,119 ========== ========== ========== ========== Basic Earnings (Loss) per Share Continuing operations 0.05 $0.18 $0.47 $0.46 Discontinued operations 0.02 (0.11) (0.01) (0.13) ---------- ---------- ---------- ---------- Net earnings per share 0.07 $0.07 $0.46 $0.33 ========== ========== ========== ========== Diluted Earnings (Loss) per Share Continuing operations $0.05 $0.18 $0.46 $0.45 Discontinued operations 0.02 (0.11) (0.01) (0.13) ---------- ---------- ---------- ---------- Net earnings per share $0.07 $0.07 $0.45 $0.32 ========== ========== ========== ========== Shares Used in Computing Earnings (Loss) per Share Basic 62,749 62,077 63,009 61,509 Diluted 64,061 63,635 64,428 63,071 INTERMEC, INC. CONSOLIDATED BALANCE SHEETS (Unaudited, amounts in thousands) October 1, December 31, 2006 2005 ---------- ------------ Assets Current Assets: Cash and cash equivalents $218,614 $256,782 Short-term investments 19,130 - Accounts receivable, net 158,161 180,985 Inventories 138,071 82,088 Net deferred tax assets 47,857 100,656 Assets held for sale 8,529 8,517 Other current assets 11,407 29,468 ---------- ------------ Total Current Assets 601,769 658,496 Property, Plant and Equipment, Net 41,918 30,820 Other Intangibles, Net 5,976 6,871 Net Deferred Tax Assets 185,373 137,578 Other Assets 64,592 68,955 ---------- ------------ Total Assets $899,628 $902,720 ========== ============ Liabilities and Shareholders' Investment Current Liabilities: Accounts payable and accrued expenses $143,173 $148,731 Payroll and related expenses 26,727 31,011 Deferred revenue 46,183 38,369 ---------- ------------ Total Current Liabilities 216,083 218,111 Deferred Revenue 18,845 20,095 Long-term Debt 100,000 100,000 Other Long-term Liabilities 86,679 88,711 Shareholders' Investment: Common stock 634 627 Additional paid-in capital 703,316 736,224 Accumulated deficit (215,760) (244,903) Accumulated other comprehensive loss (10,169) (16,145) ---------- ------------ Total Shareholders' Investment 478,021 475,803 ---------- ------------ Total Liabilities and Shareholders' Investment $899,628 $902,720 ========== ============ INTERMEC, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (Preliminary) (Unaudited, amounts in thousands) Nine Months Ended ------------------------------- October 1, 2006 October 2, 2005 ------------------------------- Cash and Cash Equivalents at Beginning of Period $256,782 $217,899 Cash Flows from Operating Activities of Continuing Operations: Net earnings from continuing operations 29,811 28,535 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 7,818 7,504 Deferred taxes 7,085 7,120 Changes in working capital and other operating activities (14,743) (4,503) -------------- ---------------- Net Cash Provided by Operating Activities of Continuing Operations 29,971 38,656 -------------- ---------------- Cash Flows from Investing Activities of Continuing Operations: Capital expenditures (17,276) (7,159) Purchases of investments (19,695) - Other investing activities 29 56,643 -------------- ---------------- Net Cash Provided By (Used In) Investing Activities of Continuing Operations (36,942) 49,484 -------------- ---------------- Cash Flows from Financing Activities of Continuing Operations: Repayment of long-term obligations - (108,500) Stock options exercised 5,819 16,373 Stock repurchase (49,948) - Other financing activities 6,370 1,118 -------------- ---------------- Net Cash Used In Financing Activities of Continuing Operations (37,759) (91,009) -------------- ---------------- Net Cash Used In Continuing Operations (44,730) (2,869) Net Cash Used In Operating Activities of Discontinued Operations - (34,662) Net Cash Provided by (Used In) Investing Activities of Discontinued 6,562 (806) -------------- ---------------- Operations Resulting Decrease in Cash and Cash Equivalents (38,168) (38,337) -------------- ---------------- Cash and Cash Equivalents at End of Period $218,614 $179,562 ============== ================ CONTACT: Intermec, Inc. Kevin P. McCarty, Director of Investor Relations 425-265-2472 kevin.mccarty@intermec.com -----END PRIVACY-ENHANCED MESSAGE-----