Sensormatic Electronics Corp. announces that it expects to report second-quarter revenue growth of approximately 4 percent, or $281 million, which is less than previously expected. Revenue would have grown about 9 percent, or to $295 million, without the negative impact of weakness in the Euro and other currencies, according to the company. Earnings per share (EPS) is expected to grow approximately 20 percent, or 20 cents, to 21 cents per share in the second quarter. Although these results are an improvement compared to the prior year’s quarter, they fall below the company’s previous expectations.
Sensormatic attributes the shortfall primarily to negative effects of foreign exchange, weakness in video product sales and slower growth in label sales. The company, however, adds that it expects revenue growth for the second half of fiscal 2001 to be significantly greater than in the first half. Earnings per share growth for fiscal 2001 is expected to be approximately 35 percent, still within the growth range announced last August.
“Although it appears that our revenue and earnings will be somewhat lower than previously expected, our overall business is healthy and we expect to report our seventh consecutive quarter of results improvement. We are confident about the rest of the year and in our plans to address the issues we are facing,” says Per-Olof Loof, Sensormatic president and CEO. Sensormatic manufactures access control, electronic photo imaging, intrusion detection, CCTV and integrated systems equipment.
