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Imagistics International Reports Second Quarter Earnings

3 Aug, 2004

Imagistics International Reports Second Quarter Earnings

Imagistics International Inc. announced a 24 percent increase in diluted earnings per share to $0.36 for the second quarter of 2004 compared with $0.29 for the second quarter of 2003. Net income increased by 22 percent over the same period to $6.1 million from $5 million last year. Total revenue for the second quarter decreased 3 percent to $151.5 million. Revenue results consist of three business lines: copier/MFP, facsimile and sales to Pitney Bowes of Canada, which operates under a reseller agreement. Copier/MFP revenue increased 10 percent, facsimile revenue declined 17 percent and revenue attributable to sales to PB Canada decreased 75 percent. Excluding sales to PB Canada, total revenue for the second quarter was $149.9 million, up slightly versus revenue for the second quarter of the previous year.

Marc C. Breslawsky, Imagistics Chairman and Chief Executive Officer, said, "We have again posted record levels of net income and EPS for the second quarter of 2004. We are especially pleased with the 10 percent growth in our core copier/MFP revenue, particularly the 9 percent increase we achieved in copier/MFP rental revenue. Thus, we continue to add to our unbroken string of quarterly year-over-year increases in copier/MFP revenue, now for the tenth consecutive quarter since the spin-off. Copier/MFP now represents 69 percent of our total revenue versus 56 percent two years ago, and it has clearly become the dominant part of our business as our facsimile revenue continues its expected rate of decline. By continuing to focus on our core business, we hope to achieve positive revenue growth for 2004 overall."

Imagistics President and Chief Operating Officer, Joseph Skrzypczak added, "This quarter, we have again delivered excellent earnings, $0.36 per share, up 24 percent over last year, thereby again fulfilling our objective to deliver greater than 20 percent earnings growth. A major driver of our earnings is copier/MFP revenue, which continues to grow at a healthy pace. Year to date, this measure of our core revenue has increased 11 percent. We have also made significant progress in improving our cash flow, generating $29.4 million in cash flow from operations and $14.0 million of free cash flow."

Skrzypczak continued, "In the second quarter, we also continued to invest in the expansion of our direct distribution through an acquisition in Little Rock, Arkansas. The acquisition reflects our strategy to expand both distribution and service capabilities in underserved areas of the country having strong national account potential as well as opportunities to capture business with smaller, local companies and public agencies."



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