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 user 2005-01-30 at 9:58:00 am Views: 74
  • #9965
    Ikon 1Q Profit Falls 40 Percent to $16.6M
    MALVERN, Pa.- Ikon Office Solutions Inc., which sells and leases document management systems and services, on Thursday said first-quarter earnings declined 40 percent, hurt by softness in its North American equipment and off-site managed services segments.

    Quarterly income Fell to $16.6 million, or 12 cents a share, from $27.6 million, or 18 cents a share, last year.
    Analysts Surveyed by Thomson First Call expected Ikon to earn 13 cents a share in the period. Previously, Ikon had said it expected to earn 12 cents to 14 cents a share.

    Revenue declined 3.6 percent to $1.1 billion from $1.14 billion a year ago, mainly due to the decline in finance revenue as a result of the transition out of captive leasing in North America. Foreign currency translation added 1.5 percent to total revenue. Targeted revenue, which excludes technology hardware and finance revenue in North America, rose about 3 percent on positive performance in service offerings and the benefits of fees received from GE Commercial Finance.

    As it focused on a broader strategy in its professional services segment, Ikon experienced a decline in sales productivity in its North American equipment buisness. The company said softness in its off-site managed services business produced lower revenue and reduced operating profitability. Ikon said it is taking aggressive action to improve the flexibility of the cost structure of these businesses, which are short-cycle and highly price-competitive.

    Ikon expects second-quarter earnings of 14 cents to 16 cents a share, and said it maintains full-year expectations for earnings of 63 cents to 68 cents a share. Analysts currently expect the company to earn 17 cents a share in the second quarter and 65 cents a share for the year.
    Ikon shares rose 17 cents to $10.75 in late morning trading on the New York Stock Exchange.
    Ikon reports Q1 slump

    January 2005 – Valley Forge (PA): Ikon Office Solutions has posted a decline in its Q1 sales and income.

    Net income fell from $27.7 million, or EPS of $0.18 registered 12 months ago, to $16.6 million, or EPS of $0.12. Sales fell 3.6 per cent to $1.1 billion.