EVERETT – Intermec Inc. struggled to increase sales of its inventory tracking technology during the first quarter, generating $179 million during the period, down from nearly $204 million in the prior year’s first quarter.
As a result, the company reported Thursday a first-quarter loss of $4.4 million, or 7 cents a share. In last year’s first quarter, thanks in part to a one-time gain of $16.5 million from an intellectual property settlement, Intermec made a $15 million profit.
It’s the third down quarter in a row for Intermec, which has cut jobs and expenses since last fall. Lower operating costs couldn’t offset lower sales across North America, however.
“During the first quarter of this year, we saw a marked difference in performance by region, with North American revenue severely declining and Europe and other areas up somewhat,” said Larry Brady, Intermec’s chairman and chief executive officer.
Indeed, Intermec’s sales and service overseas grew by 16 to 20 percent versus last year’s quarter, while North American revenue plunged 29 percent. The company blamed a mixture of increased competition and introduction of new products, which delayed companies from ordering earlier.
Steve Winter, Intermec’s president and chief operating officer, said initial orders for and inquiries about the company’s new mobile computer, the CN3, have exceeded those for any previous product. With that and the coming launch of other new products as the year goes on, the company is optimistic about turning around its declines, he said.
The company said restructuring and other cost-cutting measures, implemented late last year, have been substantially completed.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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