Intermec, Inc. (NYSE:IN) today announced preliminary financial results for its second quarter ended July 1, 2012.
Second quarter 2012 net revenues were $201.0 million, with a net loss on a GAAP basis of ($39.3) million or ($0.65) per diluted share compared to 2011 second quarter revenues of $221.1 million and a GAAP net loss of ($3.8) million or ($0.06) per diluted share. Earnings per share for the quarter were significantly impacted by a non-cash impairment of goodwill of $28.3 million and restructuring charges of $5.6 million. Excluding the impairment, restructuring and certain other adjustments totaling $39.2 million (detailed in the table below), Adjusted Operating Income for the quarter was $3.9 million and adjusted net earnings were $1.3 million or $0.02 per diluted share.
“We achieved solid sequential revenue, gross margin and adjusted operating profit improvement in the second quarter. With improved margin and cost controls we were able to realize a $17.7 million improvement in adjusted operating profit on a $21 million incremental increase in revenue. While our results were below the second quarter 2011, this most recent quarter’s performance puts us on an improved trajectory as we enter the second half of 2012,” said Allen J. Lauer, Intermec Chairman and Interim CEO. “As we consider additional steps, our Board is working closely with management and the Company’s advisors to review our long-term strategic direction and leadership requirements.”
The Company recognized a non-cash impairment charge of $28.3 million against goodwill. The impairment charge is an estimate based on an analysis of a number of factors. The Company expects to complete the detailed steps of the analyses and adjust the impairment amount if needed when it completes its financial filings for the second and/or third fiscal quarters of 2012. In addition the Company recorded a net $5.6 million restructuring charge related to the restructuring announced on June 12, 2012, net of the release of $300,000 from the 2011 restructuring.