Lexmark International, Inc. News
Lexmark reports first quarter results
"Our first-quarter results reflect the strategic shift that we began in the second half of 2007," said
First-quarter 2008 business segment revenue was
First-quarter 2007 gross profit margin was 33.5 percent, the operating expense-to-revenue ratio was 23.9 percent, the operating income margin was 9.6 percent, and net earnings were
On a non-GAAP basis, excluding restructuring-related charges: — First-quarter 2008 gross profit margin would have been 37.5 percent, up 3.8 percentage points from 33.7 percent in the same period last year, principally due to a favorable product mix shift. — First-quarter 2008 operating expense as a percent of revenue would have been 26.0 percent, up 2.1 percentage points compared to 23.9 percent in the same quarter last year, principally driven by increased investment in research and development. — First-quarter 2008 operating income margin would have been 11.5 percent, up 1.7 percentage points from 9.8 percent last year. — First-quarter 2008 net earnings would have been $111 million compared to $94 million in the first quarter of 2007.
The company ended the quarter with
New Inkjets Target Higher-Usage Customers
The introduction of Lexmark's new Home & Student inkjet line during the quarter further advances the company's strategy to increase penetration in higher-usage and higher-growth inkjet market segments. The Home & Student line, with prices ranging from
Also during the quarter, Lexmark's Professional Series inkjet line, with prices ranging from
Lexmark Continues Award-Winning Push into Key Business Market Segments
Lexmark's efforts to increase its presence in the high-growth color laser printer and color multifunction product (MFP) segments were also advanced during the period with receipt of several awards of excellence from respected testing labs and technology publications. In April, Lexmark's first entry into the important mid-range color MFP segment, the Lexmark X560n, was awarded a Four-Star, Highly Recommended rating from independent test lab BERTL. In February, PC World magazine named the Lexmark X500n low-end color MFP a Top Five Color Laser Multifunction Printer. The Lexmark C530dn and C780n were additionally named to PC World magazine's Top 10 Color Laser list.
Better Buys for Business has recently recognized Lexmark's color and monochrome laser printers with a string of accolades. Lexmark's C935hdn workgroup color laser printer was featured on the cover of its 2008 Color Laser and Business Inkjet Printer Guide, in which the Lexmark C530, C532, C782 and C935 families of color laser printers were all honored with Editor's Choice awards. In January, Lexmark's E250, E350 and E450 low-end monochrome laser printer families were designated Editor's Choice winners, and Lexmark's T640, T642 and T644 workgroup monochrome laser printer families earned the Editor's Choice distinction for the third consecutive year.
Looking Forward
In the second quarter of 2008, the company expects revenue to be down in the mid-single digit percentage range year over year. It expects second- quarter 2008 GAAP EPS to be in the range of
Conference Call Today
The company will be hosting a conference call with securities analysts today at
Supplemental information slides, including reconciliations between GAAP and non-GAAP financial measures, will be available on Lexmark's investor relations Web site prior to the live broadcast.
About Lexmark
Lexmark International, Inc. (NYSE: LXK) provides businesses and consumers in more than 150 countries with a broad range of printing and imaging products, solutions and services that help them to be more productive. In 2007, Lexmark reported
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release which are not historical facts are forward-looking and involve risks and uncertainties, including, but not limited to, weak economic conditions, aggressive pricing from competitors and resellers, inability to be successful in the higher-usage segments of the inkjet market, the financial failure or loss of business with a key customer or reseller including loss of retail shelf placements, disruptions at important points of exit and entry and distribution centers, market acceptance of new products and pricing programs, periodic variations affecting revenue and profitability, the inability to meet customer product requirements on a cost competitive basis, failure to execute planned cost reduction measures, entrance into the market of additional competitors focused on printing solutions, increased investment to support product development and marketing, inability to perform under managed print services contracts, decreased supplies consumption, increased competition in the aftermarket supplies business, failure to successfully outsource the infrastructure support of information technology systems, failure to manage inventory levels or production capacity, unforeseen cost impacts as a result of new legislation, fees on the company's products or litigation costs required to protect the company's rights, inability to obtain and protect the company's intellectual property and defend against claims of infringement and/or anticompetitive conduct, reliance on international production facilities, manufacturing partners and certain key suppliers, changes in a country's political or economic conditions, conflicts among sales channels, the failure of information technology systems, changes in the company's tax provisions or tax liabilities, business disruptions, currency fluctuations, terrorist acts, acts of war or other political conflicts, or the outbreak of a communicable disease, and other risks described in the company's Securities and Exchange Commission filings. The company undertakes no obligation to update any forward-looking statement.
Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries. All other trademarks are the property of their respective owners.
All prices, features, specifications and capabilities are subject to change without notice.
(1) All prices are estimated street prices in U.S. dollars - actual prices may vary. LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (In Millions, Except Per Share Amounts) (Unaudited) Three Months Ended March 31 2008 2007 Revenue $1,175.1 $1,260.6 Cost of revenue (1) (2) 739.6 837.8 Gross profit 435.5 422.8 Research and development 105.5 99.9 Selling, general and administrative (1) (2) 209.0 201.8 Restructuring and related (reversals) charges (1) (1.3) - Operating expense 313.2 301.7 Operating income 122.3 121.1 Interest (income) expense, net (7.5) (4.4) Other expense (income), net 1.4 1.2 Earnings before income taxes 128.4 124.3 Provision for income taxes (3) 26.7 31.9 Net earnings $101.7 $92.4 Net earnings per share: Basic $1.07 $0.96 Diluted $1.07 $0.95 Shares used in per share calculation: Basic 95.2 96.5 Diluted 95.4 97.5 (1) Amounts for the three months ended March 31, 2008, include total restructuring-related charges and project costs of $12.6 million with $5.3 million and $8.6 million included in Cost of revenue and Selling, general and administrative, respectively, partially offset by the ($1.3) million reversal in Restructuring and related (reversals) charges. (2) Amounts for the three months ended March 31, 2007, included restructuring-related project costs of $5.7 million and a $3.5 million gain on the sale of the Company's Scotland facility. Of the net $2.2 million of project costs incurred, $1.6 million and $0.6 million were included in Cost of revenue and Selling, general and administrative, respectively. (3) Amount for the three months ended March 31, 2008, includes a $6.7 million benefit from the reversal of previously accrued taxes primarily due to the settlement of a tax audit. LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION (In Millions) (Unaudited) March 31 December 31 2008 2007 ASSETS Current assets: Cash and cash equivalents $329.9 $277.0 Marketable securities 549.2 519.1 Trade receivables, net 516.2 578.8 Inventories 433.0 464.4 Prepaid expenses and other current assets 246.2 227.5 Total current assets 2,074.5 2,066.8 Property, plant and equipment, net 875.5 869.0 Marketable securities 59.4 - Other assets 188.9 185.3 Total assets $3,198.3 $3,121.1 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $150.0 $149.9 Accounts payable 567.1 636.9 Accrued liabilities 726.4 710.5 Total current liabilities 1,443.5 1,497.3 Other liabilities 350.4 345.5 Total liabilities 1,793.9 1,842.8 Stockholders' equity: Common stock and capital in excess of par 903.8 888.9 Retained earnings 1,037.4 935.7 Treasury stock, net (454.7) (454.7) Accumulated other comprehensive loss (82.1) (91.6) Total stockholders' equity 1,404.4 1,278.3 Total liabilities and stockholders' equity $3,198.3 $3,121.1 LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited) Earnings Per Share: 1Q08 1Q07 GAAP $1.07 $0.95 Restructuring-related charges & project costs 0.09 0.01 Non-GAAP $1.16 $0.96 Operating Expense-to- Operating 1Q08: Gross Profit Revenue Income Margin Ratio Margin GAAP 37.1% 26.7% 10.4% Restructuring-related charges & project costs 0.4% (0.7%) 1.1% Non-GAAP 37.5% 26.0% 11.5% 1Q07: GAAP 33.5% 23.9% 9.6% Restructuring-related charges & project costs 0.2% - 0.2% Non-GAAP 33.7% 23.9% 9.8% Net Earnings (In Millions) 1Q08 1Q07 GAAP $102 $92 Restructuring-related charges & project costs 9 2 Non-GAAP $111 $94 Earnings Per Share Guidance: 2Q08 2Q07 GAAP $0.54 to $0.64 $0.67 Restructuring-related charges & project costs 0.11 (0.02) Non-GAAP $0.65 to $0.75 $0.65 Note: Management believes that presenting these measures is useful because they enhance shareholders' understanding of how management assesses the performance of the Company's businesses. Management reviews the performance of the Company's operating segments based on GAAP and non-GAAP measures which reflect income and expense items which are recurring in nature, and do not include the impact of actions that management believes are not reflective of the ongoing operation of the Company. These measures may not be comparable to similar measures of other companies as not all companies calculate these measures in the same manner. Totals may not foot due to rounding.
SOURCE Lexmark International, Inc.
Search Our News Using Google Search
Can't find what you want? Try using Google:
