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Signs of progress for Everett-based Intermec

The Everett-based firm reports a 12-percent increase in revenue in the second quarter, after losing $242 million in the first quarter and shedding 7 percent of its workforce.

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By Michelle Dunlop
Herald Writer
EVERETT -- Less than three months after losing $242 million and a CEO, Everett-based Intermec showed signs of improvement Thursday, reporting a 12 percent increase in revenue in the second quarter.
"I'm pleased to say we made respectable progress," said Allen Lauer, chairman of Intermec.
Lauer has been serving as the interim chief executive of the maker of barcode printers and radio frequency identification products since Intermec's previous CEO, Patrick Byrne, left May 1. Shortly after Byrne's departure, Intermec said its first-quarter loss had widened to $242.1 million, or $4.03 per diluted share.
In June, Intermec announced a restructuring plan that eliminated 170 jobs, or 7 percent of the company's global workforce. Intermec employed 2,300 people prior to the layoff. On Thursday, Robert Driessnack, Intermec's chief financial officer, said the company so far has cut 160 positions.
In the short term, the restructuring will cost Intermec $6 million to $7 million. Over the long haul, Driessnack estimates the restructuring program will save Intermec $19 million to $20 million annually.
However, Intermec's second-quarter earnings per share were affected by a previously disclosed non-cash impairment of $28.3 million and a $5.6 million restructuring charge. Excluding the charges and other adjustments, Intermec's adjusted net earnings for the quarter were $1.3 million, or 2 cents per share. That beats the company's first-quarter loss but is still down from earnings of $5.9 million for the same quarter last year.
Lauer attributed the company's improvement to a "more favorable product mix." He said the company has also taken steps to bring expenses more in line with revenue.
"This is just the first step toward reaching a satisfactory financial performance," Lauer said.
Intermec will continue to implement the restructuring plan, though Lauer declined to give more details. The company did not provide financial performance estimates for the third quarter.
"Our board is working closely with management and the company's advisers to review our long-term strategic direction and leadership requirements," Lauer said.
Michelle Dunlop: 425-339-3454;
Story tags » Intermec Technologies



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