Log In | Become a Member | Contact Us

Market Intelligence for Printing and Publishing

Connect on Twitter | Facebook | LinkedIn

Featured:     M&A Trends     Production Inkjet     Installations and Placements Tracker

IKON Improves Second Quarter 2008 Outlook

Monday, April 14, 2008

Press release from the issuing company

MALVERN, Pa., Apr 10, 2008 -- IKON Office Solutions, the world's largest independent channel for document management systems and services, today announced it expects to report second quarter fiscal 2008 diluted earnings per share in the range of $0.22 to $0.24. The Company previously communicated guidance of $0.16 to $0.19 per diluted share.

The improved outlook for the second quarter is primarily due to better than anticipated Equipment revenue and Equipment gross margin. Equipment revenue is expected to be flat year over year in the second quarter, representing a significant improvement from the 6 percent year-over-year decline in the first quarter of fiscal 2008.

For the second quarter, total revenue is expected to grow approximately 1 percent year over year, reflecting the better than anticipated Equipment performance, continued growth in Managed and Professional Services, and flat Customer Service and Supplies revenue year over year. The Company expects its second quarter selling and administrative expense-to-revenue ratio to be less than 29 percent and tax rate to be approximately 36 percent. The Company also expects its inventory to decline more than $85 million in the second quarter. For fiscal 2008, the Company expects to maintain its free cash flow outlook of $80 to $110 million.

"We are encouraged by our improving Equipment performance, particularly late in the second quarter," said IKON Chairman and Chief Executive Officer Matthew J. Espe. "However, the economic environment remains challenging. As such, we expect to maintain our fiscal 2008 outlook of $0.92 to $0.98 per diluted share, excluding the $0.04 per share restructuring charge in the first quarter."

Second Quarter Conference Call

The Company plans to announce its second quarter fiscal 2008 results on April 24, 2008 before the market opens and to conduct a conference call at 10 a.m. EDT that day. To access the live audio broadcast of the call, with slides, go to IKON's web site--http://www.ikon.com-- and click "About IKON," "Investor Relations," and "Calendar & Presentations" or call 201-689-8261. Listeners should access the web site at least 10 minutes early to register for the presentation.

A complete replay, with slides, will be available on IKON's Investor Relations homepage under "Calendar & Presentations" approximately two hours after the call ends. A telephone replay of the conference call will be available approximately two hours after the call through midnight EDT on April 28, 2008, by calling 877-660-6853 or 201-612-7415 and entering account number 270 and conference number 280810.




Email Icon Email

Print Icon Print

Become a Member

Join the thousands of printing executives who are already part of the WhatTheyThink Community.

Copyright © 2019 WhatTheyThink. All Rights Reserved