Lexmark Revenue Jumps 8%
Lexington, Ky. — Hitchhiking on growing sales of supplies and laser printers, printing and imaging solutions supplier Lexmark International enjoyed an 8 percent increase in first quarter revenue, hitting $1.36 billion, up from a year-ago $1.26 billion. First quarter operating income, which dipped to $161.7 million, from $165.2 million a year ago, included a $9.6 million charge. Profit also fell short due to particularly challenging market conditions in the first quarter, mainly aggressive pricing and soft consumer market demand. Net income for the quarter, ended March 31, was $123.4 9 million, compared with $121 million in the first quarter of last year. Gross profit margin came in at 33 percent, up from 32.7 percent year-on-year. Operating expenses, however, climbed to 21 percent of revenue, up from 19.6 percent the prior year. The printer maker said it continues to increase participation in high-growth segments, such as inkjet photo printing. One source of growth this year is expected from strength of its supplies-driven business model, fueled by strong sales of replacement ink cartridges, said Lexmark. However, there still is ongoing potential for weakening market demand and aggressive price competition, the company said`.
Plantronics Net Income Climbs
Santa Cruz, Calif. — Led by wireless and the convergence of audio and entertainment, wireless headset maker Plantronics posted a 22 percent increase in fiscal fourth quarter revenue, hitting $147.8 million, compared with $121.4 million in the year-ago period. Net income in the three months moved up to $28.7 million, compared with $20.9 million year-on-year. Revenue for the 12 months, ended March 31, rose 34 percent, to $560 million, from $417 million the previous year. Net income for the 12 months hit $100.2 million, compared with $62.3 million in the same 12 months last year. Plantronics said revenue from wireless headsets nearly doubled during the 12 months, while the company enjoyed a $33 million increase in mobile headset revenue for the fiscal year.
SanDisk Revenue, Net Income Post Increases
Sunnyvale, Calif. — Flash storage card products supplier SanDisk recorded a 17 percent increase in first quarter revenue, reaching $451 million, up from $387 million in the year-ago period. Net income in the first three months, ended April 3, hit $74.5 million, also up 17 percent, compared with a year-earlier $63.6 million. Among the SanDisk quarterly highlights were an 18 percent rise in product revenue, hitting $399.7 million, compared with $338.8 million in the same three months in 2004, and a 7 percent rise in license and royalty revenue, up to $51.3 million in the first quarter, compared with a year-on-year $48.2 million. Product gross margin in the first quarter climbed 5 percentage points year-over-year, to a record 37.2 percent.
Imation Rev Slides, Net Income Up
Oakdale, Minn. — Magnetic and optical removable data storage media supplier Imation reported net revenue of $325.2 million in the first quarter, down 4 percent from the $339.3 million recorded in the year-ago period. The company said it had solid results across optical, data center tape and flash products. Due to its restructuring and cost reduction program, Imation recorded net income of $31.4 million in the first three months, ended March 31, a 47 percent jump over the $21.4 million reported in the same quarter a year earlier. Gross profit margin, however, dropped to 26.2 percent in the first quarter, down from 27.6 year-on-year, but up from the 22.9 percent held down in the fourth quarter of last year. Expenses in the first three months decreased to $39.2 million, bettering the $44.8 million spent in the same quarter the prior year. Operating income in the first quarter reached $33.1 million, down slightly from the $33.5 million recorded in the first three months of 2004.
Logitech Announces Q4 Sales Rise
Fremont, Calif. — Personal interface products maker Logitech International reported a 16 percent increase in fiscal fourth quarter sales, hitting $402.6 million, up from a year-ago $347.1 million. Net income for the quarter, ended March 31, rose 5 percent, to $40.2 million, from $38.5 million in the same three months in 2004. Gross margin in the three months climbed to 33.6 percent, from a year-earlier 33.2 percent. Logitech’s retail sales grew by 25 percent in the first quarter, to $352.2 million, from $282 million in the same three months last year. Sales in the Americas climbed 34 percent in the period. The company reported retail sales growth in the cordless category — its largest — as well as audio and gaming. For the 12 months, the company enjoyed a 17-percent increase in overall sales, rising to $1.5 billion, from a year-earlier $1.3 billion. Net income reached $149.3 million in the fiscal year, a 13 percent rise over the $132.2 million recorded in the prior year.
Harman Sales Rise 8%
Washington — Automotive and consumer audio products maker Harman International Industries recorded an 8 percent increase in consolidated fiscal third quarter sales, hitting $742.6 million, up from a year-ago $690.4 million. Net income for the three months, ended March 31, reached $63.5 million, a 45 percent jump over the $43.7 million reported in the same three months the prior year. Consumer net sales rose 28 percent in the third quarter, to $100.3 million. Automotive net sales for the same three months climbed 7 percent, reaching $522.5 million. For the nine months, consolidated sales climbed 12 percent, to $2.2 billion, compared with $2 billion year-on-year. Nine-month net income rose to $162.6 million, compared with $104.9 million in the same period a year ago. Consumer sales in the nine months were $313.1 million, a 16 percent gain over the same period last year. Automotive sales for the nine months increased 14 percent, to $1.6 billion.
Ingram Micro Q1 Sales Rise 6%
Santa Ana, Calif. — Despite the competitive economic environment, technology distributor Ingram Micro raised North American sales 6 percent in the first quarter, hitting $2.9 billion, up from $2.8 billion in 2004. Operating income in North America during the first three months, ended April 2, reached $29.9 million, compared with a year-ago $25.3 million. Excluding $5.8 million in costs, North American operating income increased 42 percent, to $35.7 million, compared with $25.1 million in 2004. Consolidated Ingram Micro sales for the first quarter climbed 12 percent, to $7.1 billion, compared with $6.3 billion in the same three months last year. Consolidated operating income, excluding costs, reached $86.1 million, up from $66.7 million year-over-year. Net income for the first quarter, excluding $6.8 million in costs, hit $49.2 million, an increase over the $37.6 million registered in the same three months last year. First quarter gross margin came in at 5.38 percent, down from 5.44 percent in the same quarter the previous period.
PC Connection Q1 Sales Off 1.1%
Merrimack, N.H. — Direct sales retailer PC Connection registered a 1.1 percent decrease in consolidated sales during the first quarter, down to $323.9 million, from a year-ago $327.6 million, due, in part, to sales softness in its small- and medium-sized business segment, the company’s largest. Consolidated net income slipped to $948,000 for the three months, ended March 31, down from $1.2 million in the same period last year. Notebooks and PDAs continued to be the retailer’s largest product category, accounting for 18.8 percent of first quarter sales, or $60.9 million, but down from 21 percent or $68.7 million year-on-year. Desktop computers and servers accounted for 14.8 percent of first quarter sales, or $48 million, up from 14.1 percent or $46.3 million in the same three months in 2004. Gross profit margin, as a percentage of net sales, was 11.5 percent in the first quarter, compared with 10.4 percent year-on-year. Expenses, as a percentage of sales, increased to 10.9 percent in the first quarter, compared with 9.4 percent in the corresponding quarter the previous year.
Kodak U.S. Digital Imaging Segment Sales Slide
Rochester, N.Y. — U.S. sales for Eastman Kodak’s Digital and Film Imaging Systems segment dropped 5 percent in the first quarter, down to $701 million, compared with $741 million in the year-ago period. When sales outside the United States are added, total segment sales in the first three months, ended March 31, decreased 9 percent, to $1.8 billion, from $2 billion year-on-year. Earnings from operations for the total segment plunged to $4 million in the first quarter, down from a year-earlier $25 million. Included in first quarter 2005 earnings is a non-recurring $16 million charge. Highlights for the quarter include a 68 percent increase in sales of Kodak Picture Maker kiosks and a 24 percent increase in consumer digital capture sales, which includes the Kodak Easyshare line of cameras. Sales of film in the U.S. fell 17 percent. First quarter consolidated Kodak sales decreased 3 percent, to $2.8 billion, from $2.9 billion. Kodak moved into the red in the first quarter, reporting a net loss of $142 million, compared with a year-on-year net income of $21 million.
Tracfone Boosts U.S. Prepaid Wireless Subscribers By 44.9%
Mexico City — Tracfone Wireless, the U.S. subsidiary of carrier America Movil, based here, added 457,000 subscribers in the first quarter, bringing its total U.S. subscriber count to 4.9 million, an increase of 44.9 percent over 3.3 million year-on-year. Tracfone Wireless, said by the company to be the largest prepaid wireless provider in the United States, reported operating revenue of $231 million for the first three months, a 32.6 percent increase over the $174 million recorded in the same period last year. Year-over-year, first quarter Tracfone minutes-of-use climbed 9.2 percent, to 63, compared with 58 in the same three months a year ago. Average-revenue-per-unit, however, dropped 6.7 percent in the first quarter, down to $14, from a year-earlier $15. First quarter churn remained steady year-on-year, at 3.8 percent.