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Intermec Guides Revenue Lower

Systems and solutions revenue falls 20%.
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Intermec

(IN)

chopped its revenue expectations for the third quarter on Wednesday.

The Everett, Wash.-based maker of product tracking tools said quarterly sales would tally $192 million to $196 million, lower than the prior guidance of $230 million to $240 million. Last year, the company reported $220 million on the top line.

Analysts polled by Thomson First Call anticipated $237.2 million for the quarter.

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Intermec blamed the low numbers on a 20% decline in its systems and solutions revenue, and a 5% drop in service revenue when compared with the same quarter last year. Printer and media revenue was up slightly, the company said.

Also, sales in North America, Europe, the Mid-East and Africa decreased about 15% compared with the parallel quarter last year while sales in Latin America and Asia Pacific grew 20% over the prior year period.

The company did not provide an update to its EPS forecast. Last quarter, the company said its EPS for the third quarter would range from 17 cents to 21 cents. Analysts expect a profit of 20 cents a share.

Intermec shares lost 63 cents, or 2.4%, to $25.68 in after-hours trading, erasing the gains it made during the regular session.

Intermec reports third-quarter earnings on Nov. 1.