CheckPoint Swings to a Loss

The quarter is marked by impairment and restructuring charges.
By TSC Staff ,

CheckPoint Systems

(CKP)

swung to a loss in the fourth quarter, missing earnings expectations, because of impairment and restructuring charges at its labeling services unit.

The New Jersey-based company reported a net loss of $29.3 million, or 78 cents a share, compared with a profit of $4.5 million, or 13 cents a share, for the fourth quarter of 2003.

Excluding items -- most notably impairment and restructuring charges -- the company earned 30 cents a share, compared with 27 cents a share in the fourth quarter of 2003. Analysts were expecting 31 cents a share, according to Thomson First Call.

The quarter was marked by a noncash charge of $45.0 million, or $1.19 a share, related to the impairment of goodwill, intangibles, and fixed assets in the company's labeling services unit.

Revenue rose 1.2% to $213.9 million. Revenue was driven by the company's U.S. electronic article surveillance and closed circuit television businesses, which delivered growth of 21% and 6%, respectively. CheckPoint's European businesses saw revenue decline almost 13%.

The company provides services for retail security, labeling and merchandising.

The company forecast 2005 EPS of $1.15 to $1.25. The consensus is $1.06.

Shares closed at $16.40 Monday.

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