Large Format Review - Business News

X-Rite, Incorporated today announced its financial results for the quarter ended January 2, 2010.

The Company reported fourth quarter 2009 net sales of $50.1 million compared to $45.7 million in the third quarter of 2009 and $60.8 million in the fourth quarter of 2008. These results were in the range of Company expectations given the general market conditions and reflect an improving situation with sequential quarter growth of 9.9 percent and a narrowing decrease on a year over year basis in the quarter of 17.6 percent. Net sales for the full year were reported at $191.7 million, 26.7% lower than $261.5 million for 2008.

"It has been gratifying to see how the Company has managed so well through the unusually difficult challenges of 2009" said Thomas J. Vacchiano Jr. , X?Rite's Chief Executive Officer. "Not only have our profit improvement plans been highly effective in the year, but in the fourth quarter of 2009 and now the first quarter of 2010 we are beginning to see the returns on our sales, marketing and new product initiatives in places like Greater China and more broadly across our industrial sector."

X-Rite reported that its' new myPANTONETM app is being featured in a series of iPhone advertisements by Apple in major news publications such as USA TodayTM and The Wall Street JournalTM. Released in September of 2009 in Apple's iTunes store, this product combines Pantone's "cool factor" with X?Rite's leading color management technology.

Supported by the Company's profit improvement actions and narrowing sales difference from the prior year, the Company reported net income of $0.1 million and operating income of $1.5 million in the fourth quarter of 2009. A net loss of $64.7 million was reported in the same period in 2008, which included a $58.1 write down of goodwill and indefinite?lived intangible assets related to the Pantone acquisition in 2007.

Adjusted EBITDA for the fourth quarter was $12.7 million or 25.3 percent of sales as compared to $16.0 million or 26.3 percent of sales in the same period in 2008. Full year 2009 adjusted EBITDA was reported at $44.6 million or 23.3 percent of sales, compared to $60.7 million or 23.2 percent of sales for the full year 2008.

The Company also reported continued progress in working capital management contributing to positive operating cash flows in the fourth quarter and the year. Combined with the reported adjusted EBITDA result the Company was able to reduce its first and second lien debt obligations by $3.9 million in the fourth quarter and $45.7 million for the year. This yielded a secured net debt position for the Company at the end of 2009 of $154.5 million, netting cash of $29.1 million.

Rajesh K. Shah, X?Rite's Chief Financial Officer, commented, "I have now been with the Company for approximately six months and I continue to be impressed by the capabilities and potential of X?Rite. We have made excellent progress in reducing our cost structure and strengthening our balance sheet. As market conditions improve X?Rite's profit leverage and cash generation prospects should be attractive to investors."

Vacchiano closed by saying, "a combination of variables, including improved market conditions, customer interest in new products , and increasingly effective new sales and marketing initiatives are yielding year over year sales growth for the Company in the first quarter of 2010. At this point we expect to report first quarter sales growth in the mid to high single digits."

London-based large format printing specialist Cubed Creative welcomes you to review their newly launched website at www.cubedcreative.co.uk

Cubed is an experienced company with the knowledge, ability and creativity to deliver everything you require to promote your business; whether you require a brochure, pop-up display or simply a vinyl sign. Cubed was created to provide a complete design and print service under one roof, with clients first and foremost in mind, they aim to produce realistic cost effective design solutions.

Specialising in graphic design, large format digital printing and vinyl signage, Cubed Creative use theirr extensive knowledge, traditional skills and the latest technology to offer creative solutions that aim to exceed client expectations.

4 March 2010 - Reference is made to the press release of 28 January 2010, in which Canon Inc. ("Canon") and its subsidiary Canon Finance Netherlands B.V. ("Offeror") and Océ N.V. ("Océ") jointly announced that the Offeror is making a fully self-funded public cash offer ("Offer") for all the issued and outstanding ordinary shares of Océ (the "Shares") at an offer price of EUR 8.60 per Share. The Offer is further described in the offer memorandum dated 28 January 2010 (the "Offer Memorandum").

 

Offer unconditional

The Offeror announces that with more than 71% of the Shares tendered to or owned by the Offeror and given the positive outcome of the Enterprise Chamber hearing in Amsterdam on 3 March 2010, it declares the Offer unconditional (gestanddoening).

With this announcement, Canon and Océ have successfully taken an important first step in their aim to create the overall No. 1 presence in the printing industry.

 

Acceptances

36,520,160 Shares have been tendered for acceptance under the Offer during the acceptance period that ended at 17:30 hours CET on 1 March 2010. The Shares tendered under the Offer represent 43.03% of the Shares and an aggregated value of EUR 314,073,376.

The Shares tendered under the Offer, together with the 24,018,597 Shares acquired by the Offeror before the end of the acceptance period, amount to a total of 60,538,757 Shares, which represent 71.33% of the Shares.

 

Settlement

Payment of the offer price of EUR 8.60 per Share validly tendered (or defectively tendered provided that such defect has been waived by the Offeror) and delivered (geleverd) on the terms and subject to conditions and restrictions set out in the Offer Memorandum will take place on 9 March 2010.

 

Post-acceptance period

Shareholders who have not yet tendered their Shares under the Offer will be granted the opportunity to tender their Shares in a post-acceptance period (na-aanmeldingstermijn) commencing at 09:00 hours CET on 5 March 2010 and expiring at 17:30 hours CET on 19 March 2010 (the "Post-Acceptance Period"). Shareholders can tender their Shares in the same manner and under the same conditions and restrictions as set out in the Offer Memorandum and the press release of 28 January 2010.

Shares tendered during the Post-Acceptance Period will immediately be accepted. Shareholders who tender their Shares during the Post-Acceptance Period shall not have the right to withdraw such tendered Shares. The Offeror shall arrange for a payment for the Shares that are validly tendered (or defectively tendered provided that such defect has been waived by the Offeror) and delivered (geleverd) in the Post-Acceptance Period as soon as possible and shall use reasonable endeavours to arrange that, in respect of Shares that are so tendered and delivered to Fortis Bank (Nederland) N.V. / MeesPierson CFCM, as exchange agent in respect of the Offer, before 17:30 hours, Amsterdam time, on any day that Euronext Amsterdam N.V. is open for trading (a "Trading Day") during the Post-Acceptance Period, the payment of EUR 8.60 per Share shall be made on the third Trading Day after the date on which the relevant tender and delivery were made.

Former St Ives technical director John Charnock has founded Print Research International, a one-stop knowledge base for the printing industry. Print Research International is the access point to a global network of experts and consultants, all specialists in their disciplines, and offers business management and consultancy to help printers, manufacturers and organisations worldwide, adapt to and profit from the changing face of the international graphic arts industry.

"I have spent many years seeking out the best technology and the right people to implement it, and I intend to keep on doing so," says Charnock. "It helped make St Ives a market leader and I am sure it can help other companies and organisations to be leaders in their fields. It's about business process change and positioning print to achieve greater value and applies to both print technology manufacturers and printers."

The aim of Print Research International is to help businesses adapt to the changing landscape of print through research, knowledge and leadership. It offers businesses access to a wide range of skills and partnerships to help them implement new business strategies. It also has links and resources in universities and research bodies which can facilitate product re-engineering, aid market knowledge and help companies stand out from their competitors.

Print Research International has a global remit and is currently working with companies in North America and Europe. A business review is available in order for Print Research International to assess the best course of action and recommend the right people to add the most value to an organisation. It emphasises the importance of high-quality and high-value knowledge and leadership to achieve the best possible results. "The companies we help have to see a return on their investment," says Charnock. "If we don't add the value and demonstrate the benefit that we promise, then we won't charge."

Print Research International's specialist partners work together in a system of business review which is based on six principles of business:

• Pr-international: Territory and market
• Pr-intelligence: Information management and research
• Pr-integration: Effective production and automation
• Pr-internal: Resources and business continuity, products and services
• Pr-interface: Communication, logistics and administration
• Pr-intuition: Leadership, vision and culture

"There are some great minds out there and we have some great partners," says Charnock. "By bringing them together everyone benefits."

 

HP today announced financial results for its first fiscal quarter ended Jan. 31, 2010, with net revenue of $31.2 billion, up 8% from a year earlier and up 5% when adjusted for the effects of currency.

In the first quarter, GAAP diluted earnings per share (EPS) was $0.96, up from $0.75 in the prior-year period. Non-GAAP EPS was $1.10, up from $0.93 in the prior-year period. Non-GAAP financial information excludes after-tax costs of approximately $0.14 per share and $0.18 per share in the first quarter of fiscal 2010 and 2009, respectively, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

"HP is well-positioned to outperform the market," said Mark Hurd, HP chairman and chief executive officer. "The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook."

Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below. Unless otherwise noted, all growth rates included in the narrative below reflect year-over-year comparisons.

First quarter revenue was up 9% in the Americas to $13.6 billion. Revenue was up 1% in Europe, the Middle East and Africa and 26% in Asia Pacific to $12.1 billion and $5.4 billion, respectively. When adjusted for the effects of currency, revenue was up 7% in the Americas, down 1% in Europe, the Middle East and Africa and up 19% in Asia Pacific. Revenue from outside of the United States in the first quarter accounted for 65% of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 41% over the prior-year period while accounting for 10% of total HP revenue.

"Solid performance across the business and disciplined execution on our cost initiatives contributed to strong growth in cash flow and EPS," said Cathie Lesjak, HP executive vice president and chief financial officer. "We will continue to invest for growth and leverage our scale and global position to take advantage of an improving demand environment."

Enterprise Storage and Servers

Enterprise Storage and Servers (ESS) reported total revenue of $4.4 billion, up 11%. Industry Standard Server revenue increased 27% while Storage revenue declined 3% with the midrange EVA product line down 5%. Business Critical Systems revenue declined 22%, while ESS blade revenue was up 24%. Operating profit was $552 million, or 12.6% of revenue, up from $406 million, or 10.3% of revenue, in the prior-year period.

Imaging and Printing Group

Imaging and Printing Group (IPG) revenue increased 4% to $6.2 billion. Supplies revenue was up 1%, up 4% in constant currency, while Commercial hardware revenue and Consumer hardware revenue increased 4% and 21%, respectively. Printer unit shipments increased 16%, with Commercial printer hardware units up 11% and Consumer printer hardware units up 18%. Operating profit was $1.1 billion, or 17.0% of revenue, versus $1.1 billion, or 18.5% of revenue, in the prior-year period.

Personal Systems Group

Personal Systems Group (PSG) posted a 26% increase in unit shipments and maintained the leading market share position in PCs worldwide. PSG revenue increased 20% to $10.6 billion. Notebook revenue for the quarter was up 25%, while Desktop revenue increased 16%. Commercial client revenue was up 16%, while Consumer client revenue increased 26%. Operating profit was $530 million, or 5.0% of revenue, up from $436 million, or 5.0% of revenue, in the prior-year period.

Services

Services revenue decreased 1% to $8.7 billion. Infrastructure Technology Outsourcing revenue increased 2% to $3.9 billion. Technology Services revenue decreased 2% to $2.4 billion. Application Services posted revenue of $1.5 billion and Business Process Outsourcing posted revenue of $734 million down 8% and 3%, respectively. Operating profit was $1.4 billion, or 15.8% of revenue, up from $1.1 billion, or 12.9% of revenue, in the prior-year period.

HP Software

HP Software revenue was flat at $878 million. Business Technology Optimization revenue decreased 1% and Other Software revenue increased 1%. Operating profit was $167 million, or 19.0% of revenue, up from $140 million, or 15.9% of revenue, in the prior-year period.

HP Financial Services

HP Financial Services (HPFS) revenue increased 13% to $719 million. Financing volume increased 30%, and net portfolio assets increased 23%. Operating margin was 9.3% of revenue, up from 6.4% in the prior-year period.

Asset management

HP generated $2.4 billion in cash flow from operations for the first quarter. Inventory ended the quarter at $6.6 billion, down 6 days. Accounts receivable of $14.5 billion was down 4 days. Accounts payable ended the quarter at $13.6 billion, up 3 days. HP's dividend payment of $0.08 per share in the first quarter resulted in cash usage of $189 million. HP also utilized $2.7 billion of cash during the quarter to repurchase approximately 54 million shares of common stock in the open market. HP exited the quarter with $13.7 billion in gross cash.

 

Outlook

For the second quarter of fiscal 2010, HP expects revenue of approximately $29.4 billion to $29.7 billion, GAAP diluted EPS in the range of $0.89 to $0.91, and non-GAAP diluted EPS in the range of $1.03 to $1.05. Second quarter fiscal 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.14 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

HP estimates full year fiscal 2010 revenue will be approximately $121.5 billion to $122.5 billion, up from its previous estimate of $118.0 billion to $119.0 billion. HP expects full year fiscal 2010 GAAP diluted EPS to be in the range of $3.79 to $3.86, up from its previous estimate of $3.65 to $3.75, and non-GAAP diluted EPS to be in the range of $4.37 to $4.44, up from its previous estimate of $4.25 to $4.35. Full year fiscal 2010 non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.58 per share, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges.

These estimates for both the second quarter and full year fiscal 2010 do not reflect the potential impact of the proposed acquisition of 3Com Corporation that HP announced on Nov. 11, 2009.

 

 

Océ N.V. and Konica Minolta Holdings Inc. have reviewed their existing strategic alliance in light of the public offer made by Canon Inc.

Initiated by Konica Minolta, the joint development activities for cutsheet monochrome and color output systems for the production market have been stopped.

In good mutual consultation, both companies have reached a new OEM sales agreement under which Konica Minolta will continue to supply its office printing systems to Océ, and both Konica Minolta and Océ will continue to supply cutsheet production printing systems to each other.

Also, both companies will continue to supply consumables and parts and offer after-sales services for products sold under their former and new OEM sales agreement to serve their customers.