Imagistics International Reports Solid Second Quarter 2005 Results10 Aug, 2005
Imagistics International Reports Solid Second Quarter 2005 Results
Imagistics International Inc. announced total revenue for the second quarter of 2005 decreased 4 percent to $145.7 million. Revenue is generated from three business lines: copier/MFP (multifunctional products), facsimile, and sales to PB Canada under a reseller agreement.
For the quarter, copier/MFP revenue increased 6 percent to $109.8 million, facsimile revenue declined 24 percent to $34.7 million, and sales to PB Canada decreased 25 percent to $1.2 million, compared with the prior year's second quarter.
Marc C. Breslawsky, Imagistics chairman and CEO, said, "We are pleased with our performance in the second quarter of 2005 with strong EPS growth, as the cost reduction actions we took earlier this year have greatly improved results. Our key financial metrics were very good in the second quarter of 2005 -- copier/MFP revenue grew 6 percent, we maintained a high level of recurring revenue, selling, service and administrative expenses were significantly reduced, and facsimile revenue continued its expected rate of decline.
"We are back on track - delivering results, growing our core copier/MFP business, and strengthening our product, distribution and service capabilities. We affirm our earnings per share guidance for 2005."
Total copier/MFP revenue of $109.8 million increased 6 percent for the second quarter 2005, compared with the prior year. Copier/MFP sales of $60.0 million increased 7 percent in the second quarter 2005 due to continued unit volume growth, including strong demand for color copier/MFP products, and growth in aftermarket supplies.
Rental revenue from the copier/MFP product line of $28.3 million grew 3 percent in the second quarter, compared to the prior year, and 3 percent sequentially. Year-over-year copier/MFP rental growth continued to be impacted by the expiration of certain contracts with the Federal government that were not renewed. The company expects that year-over-year copier/MFP rental growth will continue to be modest in the third quarter of 2005, but will significantly improve in the fourth quarter of 2005 due to a strong level of recent business activity and the aforementioned U.S government contracts which are expected to have less of a negative year-over-year impact. Copier/MFP support services revenue of $21.5 million grew 5 percent in the second quarter of 2005.
Total facsimile revenue of $34.7 million was down 24 percent in the second quarter of 2005. Facsimile sales of $15.1 million declined 13 percent, reflecting lower supply sales primarily due to the continuing industry-wide reduction in facsimile usage, partially offset by a large rental to sale conversion of facsimile equipment in the second quarter of 2005. Rental revenue from the facsimile product line of $17.9 million declined 33 percent in the second quarter of 2005, reflecting the decline in the rental installed base due in part to the impact of rental to sale conversions and lower per unit pricing. Support services revenue from facsimile of $1.7 million declined 7 percent in the second quarter of 2005. Facsimile revenue represented 24 percent of total revenue for the company in the second quarter of 2005.
Sales to PB Canada of $1.2 million were down $0.4 million or 25 percent in the second quarter of 2005. Sales to PB Canada are at low margins, so the decline in revenue had little impact on profitability.
Results for the First Six Months of 2005
For the first six months of 2005, total revenue decreased 7 percent to $287.8 million. Copier/MFP revenue grew 6 percent, facsimile revenue declined 26 percent and sales to PB Canada declined 72 percent, compared to the first half of 2004. Net income declined 24 percent to $8.2 million.