Imation Sales Rise 6% In Q2, Net Income Decreases
Oakdale, Minn. — Aggressive recordable optical media price declines, as well as supply side overcapacity, did much to limit Imation revenue to a 6 percent increase in the second quarter, reaching $284.1 million, up from $258 million year-on-year. Net income dropped to $6.8 million in the three months, ended June 30, down from $19.4 million in the year-ago period. Second-quarter margin decreases, down to 24.7 percent from 30.4 percent year-on-year, were driven by pricing and inventory-related adjustments. Expenses in the quarter hit 14.9 percent of revenue, an improvement over the 15.7 percent posted the previous three months. Revenue expectations for the second half have been lowered, driven by optical pricing declines and an Imation decision to rationalize its channel approach and focus on strategic accounts. The company still anticipates solid second-half operating income growth in its data storage and information management segment. For the year, total revenue growth is targeted at 5 percent to 10 percent, reaching $1.22 billion to $1.28 billion.
Plantronics Q2 Sales Soar 42%, Net Income Doubles
Santa Cruz, Calif. — Increasing revenue from mobile headsets helped headset maker Plantronics register a 42 percent increase in second-quarter sales, hitting $131.4 million, up from $92.8 million year-on-year. Operating income climbed to $30.7 million in the second three months, ended June 30, doubling the year-ago figure of $15.7 million. Net income in the second quarter rose to $22.3 million, also about doubling from the $11.3 million reported in the second three months of 2003. Because the company expects its share of mobile headset sales tied to carrier promotional offers will return to historically normal levels in the third quarter, the three months, ending in September, will see a $6 million to $7 million decrease in revenue. But Plantronics expects growth in its international Bluetooth headsets business, which should offset a sequential quarterly decline in corded products aimed at the U.S. carrier market.
Lexmark Q2 Revenue Rises 11%, Net Earnings Jump 34%
Lexington, Ky. — Posting its fourth consecutive quarter of double-digit revenue, printing solutions provider Lexmark International reported an 11 percent increase in sales in the second quarter, ended June 30, hitting $1.2 billion, up from $1.1 billion in the year-ago period. Earnings were sharply higher, thanks to strong sales of printers and ink cartridges, with net returns at $136.6 million, compared with a year-earlier $101.7 million — a 34 percent jump. For the third quarter, Lexmark said it was “cautious,” due to the uncertainty in the market and a potential for aggressive price competition. The company expects a year-over-year revenue growth rate in the high-single to low-double digits for the third quarter of 2004. For the six months, revenue rose to $2.5 billion, a 12 percent increase over the $2.2 billion recorded in the first half of 2003. Net earnings for the six months grew 31 percent, reaching $257.6 million, up from $196.3 million year-over-year.
Logitech Fis. Q1 Sales Jump 32%, Retail Sales Rise 32%
Fremont, Calif. — Personal digital peripherals maker Logitech recorded sales of $266.6 million in its fiscal first quarter, up 22 percent from the $218.2 million reported in the year-ago period. Retail sales climbed 32 percent year-on-year in the quarter, reflecting robust performance among cordless mice, Web cams and gaming peripherals for PCs and consoles. Retail sales and unit shipments of cordless mice more than doubled year-over-year, up by 121 percent and 126 percent, respectively. First-quarter net income for the three months, ended June 30, increased to $18.9 million, up from $5.7 million in the same three months in 2003. For the full fiscal year, ending March 11, 2005, Logitech anticipates an 11 percent growth in revenue and 15 percent increase in operating income.
Kodak Q2 Digital Camera Segment Sales Rise 2%, Earnings Expand
Rochester, N.Y. — Second-quarter sales in the digital and film imaging segment at Eastman Kodak edged upward 2 percent, hitting $2.4 billion, compared with $2.3 billion in the year-ago period, due mainly to growing sales of digital cameras and sales from related photo kiosks. Earnings from operations for the segment jumped 93 percent in the second quarter, ended June 30, reaching $230 million, compared with last year’s $119 million. Consolidated Kodak sales in the second quarter climbed 6 percent to $3.5 billion, up from $3.3 billion in the same three months in 2003. Excluding foreign exchanges, sales increased 4 percent. Net income climbed 37 percent to $154 million in the second quarter from $112 million the preceding year. Excluding restructuring costs, earnings from operations reached $253 million, compared with a year-over-year $166 million. Sales of all digital products increased 48 percent in the second three months, while revenue from chemical-based products slid 8 percent, said Kodak.
