Checkpoint Systems’ 3Q Revenue Down 2.2% from 2001
Checkpoint Systems Inc., a provider of EAS and RFID systems, source tagging, barcode labeling systems, hand-held labeling systems and retail merchandising systems,
reports financial results for the third quarter ended Sept. 29.
For the nine months ended Sept. 29, the company reports revenue of $463.2 million, compared to $481.2 million in the same period of 2001. Excluding the impact of foreign exchange of $4.9 million, revenue decreased 4.8 percent in the 2002 nine-month period over the comparable 2001 period.
Operating income was $34.9 million for the first nine months of 2002, compared to $39.1 million for the same period of 2001. Net income was $16.5 million, or 49 cents per diluted share, for the first nine months of fiscal 2002, vs. $14.1 million, or 44 cents per diluted share, for the first nine months of 2001.
For the third quarter, the company reports revenue of $158.8 million vs. $155.3 million in the prior-year period. Excluding the impact of foreign exchange of $6.9 million, revenue decreased 2.2 percent in the third quarter of 2002, compared to the year-ago period. Gross profit in the third quarter was $65.6 million, or 41.3 percent of revenue, compared to $62.8 million, or 40.4 percent of revenue, in the third quarter of 2001.
The company’s net income for the third quarter was $6.4 million, or 19 cents per diluted share, compared to $4.4 million, or 14 cents per diluted share, in the third quarter of 2001. Third-quarter 2002 net income included expenses of $3.8 million pre-tax, or 6 cents per diluted share after-tax, related to compensation costs associated with post-employment benefits of $1.5 million, legal fees for the ID Security Systems Canada Inc. litigation of $1.1 million, and restructuring charges of $1.2 million primarily related to the reduction of hand-held labeling systems (HLS) manufacturing capacity.
George Off, chairman and CEO of Checkpoint, said the security segment showed solid performance by the company’s CCTV, fire and intrusion group in the United States and in its global security source tagging program. However, sustained softness in retail demand resulted in weaker sales in the company’s labeling services and retail merchandising segments.
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