Checkpoint Systems, Inc. (NYSE:CKP)
today reported financial results for the third quarter ended September 23, 2012.
Net revenues decreased 12.5%, 7.8% on a constant currency basis, to $188.2 million from $215.1 million in the third quarter 2011. The Company reported a loss of $0.13 per diluted share, compared with a loss of $1.20 per diluted share in the same period last year.
The Company reported adjusted non-GAAP operating income of $7.6 million in the third quarter of 2012, compared with $10.4 million in the year-earlier quarter, which included $2.6 million of other operating income due to the sale of customer-related receivables associated with the renewal and extension of sales type lease arrangements.
The Company completed the sale of its Banking Security Systems Integration business unit on October 1.
Checkpoint Systems' interim Chief Executive Officer and President, George Babich, said, “Despite lower revenue in the third quarter, gross profit margins improved slightly versus last year and increased 160 basis points over the second quarter. SG&A expenses decreased by $7.9 million, or 11.6% compared with the same period last year driven by $3.6 million of incremental savings from the restructuring programs we have in place and tight expense control.”
Mr. Babich continued, “Last quarter I announced a newly refined strategic direction for Checkpoint. Our goal is to transition from a product-driven merchandise protection business to a provider of solutions that give retailers ready insight into the on-shelf availability of merchandise in their stores.”
On-Shelf Availability Strategy
- Become the recognized global leader in shrink management and merchandise visibility solutions to the retail and apparel industries, and
- Leverage our competitive advantage in the transfer and printing of variable data onto apparel labels, which increasingly serve as carriers for RFID solutions used in item-level tagging.
Mr. Babich noted, "For retailers and retail suppliers, getting the right product in the right place at the right time and in the right quantity is critical to success. We are confident that Checkpoint's range of retail products and solutions can play an important role in helping our customers improve on-shelf availability, thereby increasing their revenue and profitability.