Checkpoint Systems net revenue drops 12.5% in Q3 2012

Net revenues decreased 12.5%, 7.8% on a constant currency basis, to $188.2 million from $215.1 million in the third quarter 2011. The Company reported a loss of $0.13 per diluted share, compared with a loss of $1.20 per diluted share in the same period last year.

The Company reported adjusted non-GAAP operating income of $7.6 million in the third quarter of 2012, compared with $10.4 million in the year-earlier quarter, which included $2.6 million of other operating income due to the sale of customer-related receivables associated with the renewal and extension of sales type lease arrangements.

The Company completed the sale of its Banking Security Systems Integration business unit on October 1.

Checkpoint Systems' interim Chief Executive Officer and President, George Babich, said, "Despite lower revenue in the third quarter, gross profit margins improved slightly versus last year and increased 160 basis points over the second quarter. SG&A expenses decreased by $7.9 million, or 11.6% compared with the same period last year driven by $3.6 million of incremental savings from the restructuring programs we have in place and tight expense control."

Mr. Babich continued, "Last quarter I announced a newly refined strategic direction for Checkpoint. Our goal is to transition from a product-driven merchandise protection business to a provider of solutions that give retailers ready insight into the on-shelf availability of merchandise in their stores."

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Checkpoint Systems Inc