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American Reprographics Company revises annual forecast

Tuesday, October 12, 2010

Press release from the issuing company

Walnut Creek, CA - American Reprographics Company, the nation's leading provider of reprographics services and technology, today announced that it is lowering its annual earnings per share forecast for 2010. The Company currently expects to see annual EPS in the range of $0.04-$0.09, down from its earlier forecast of $0.15-$0.30. Operating cash flow for the Company is expected to be in the range of $50-$60 million, down from $65-$80 million. These projections exclude any one-time charges that may be incurred through December 31, 2010.

The Company attributed the forecast revision to weaker than expected demand for reprographics services due to the continuing lack of activity in the commercial construction market.

"Any signs of market recovery in the third quarter have been spotty at best," said K. "Suri" Suriyakumar, Chairman, President and CEO of American Reprographics Company. "Until confidence is restored in the market, we are likely to see continued delays in the kind of new commercial construction projects that drive demand for our services. While the declining trends in our daily sales appear to have stabilized over the past several quarters, the return of seasonal trends in the third quarter did not materialize. As a result, we have revised our projections for the year. Our earnings are clearly constrained by this environment, but our cash position remains strong, allowing us to meet our financial obligations comfortably."

"Meanwhile, the company continues to build relationships with national customers, and our diversification into digital color and managed print services continues to gain momentum," Mr. Suriyakumar added.




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