Net revenues decreased 8.5%, 4.0% on a constant currency basis, to $198.4 million from $216.8 million in the year-earlier quarter and the Company reported a loss of $2.30 per diluted share, compared with earnings of $0.24 per diluted share in the second quarter of 2011.
The Company reported adjusted non-GAAP operating income of $3.3 million in the second quarter of 2012 compared to $17.1 million in the year-earlier quarter, which included $16.7 million of other operating income due to the sale of customer related receivables associated with the renewal and extension of sales type lease arrangements.
Checkpoint Systems' interim Chief Executive Officer and President George Babich said, "Revenue continues to be impacted by global economic uncertainty, especially in Europe and disruptions caused by our Apparel Labeling restructuring. Gross profit margins continue to be impacted by under absorption as we complete our manufacturing consolidation, execution issues which are currently being addressed through our restructuring plan and unfavorable mix as a result of a large sale of Hard Tag @ Source last year. Importantly though, SG&A expenses for the second quarter decreased by $10.8 million, or 13.6%, compared with the same period last year. The second quarter of 2012 includes $5.4 million in savings from restructuring and a $2.9 million charge from contractual costs associated with the CEO transition announced in May, 2012."
Mr. Babich continued, "Although we are operating in an extremely challenging economic environment where retailers are reducing capital expenditures and ordering fewer products, we continue to win new national and international customers with our EAS solutions. With our restructuring initiatives in place, we will be well positioned for substantial growth ahead of the eventual economic improvement in our end markets."
Click here to read more details:
Checkpoint Systems Inc
Apparel/Garments | On 27th Jun 2017
Vietnam's Ho Chi Minh City will build large centres for designing...
Textiles | On 27th Jun 2017
Unitin, a trademark of Industrias Morera SA and a leading textile...
Fashion shows are also encouraging and highlighting sustainable fashion
Shades of India
Women value something that is unique and has a flavour of India
Setting up a brand for online selling is easy, but running the brand is not
Coating at a fibre level is a practice not usually seen in the...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Iago Castro Asensio
RCfil Distribuciones S.L.
Iago Castro Asensio, International Business Manager of RCfil...
Somaiya Kala Vidya
Among the many honours showered on Frater, including Fulbright and Ford...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...