LEXINGTON, Ky., April 25 -- Lexmark International, Inc. today announced financial results for the first quarter of 2006. First-quarter revenue was $1.28 billion compared to $1.36 billion last year, a decline of 6 percent. First-quarter earnings per share were $0.78 and include FAS123 expense of $0.05 per share. Earnings per share would have been $1.03 excluding $0.31 per share restructuring related charges and a $0.06 pension curtailment benefit for actions announced in January. First-quarter 2005 earnings were $0.96 per share. "While our first-quarter results were better than expected, we still have more work to do. We are executing the restructuring actions that we announced in January to improve our operating efficiency and, at the same time, we continue to make good progress on our core strategic initiatives. Our investments in product development are evident in new products that are winning awards and strengthening our position in key growth segments," said Paul J. Curlander, chairman and chief executive officer. In the first quarter, year-over-year business segment revenue of $688 million was down 5 percent. First-quarter consumer segment revenue of $587 million was down 7 percent. In the first quarter, gross profit margin was 31.7 percent and includes restructuring related charges of $19 million. First- quarter operating expense as a percent of revenue was 22.2 percent, and includes $31 million restructuring related charges and a $10 million pension curtailment benefit. Operating income margin in the first quarter was 9.5 percent, and includes $50 million restructuring related charges and the $10 million pension curtailment benefit. Gross profit margin excluding restructuring related charges would have been 33.1 percent in the first quarter. Gross profit margin was 33.0 percent in the same period last year. Operating expense as a percent of revenue excluding restructuring related charges and pension curtailment benefit would have been 20.6 percent in the first quarter as year-to-year improvements in marketing expenses outpaced increased investments in research and development. The operating expense to revenue ratio was 21.0 percent in the first quarter of 2005. Operating income margin excluding restructuring related charges and pension curtailment benefit would have been 12.6 percent in the first quarter. Operating income margin was 11.9 percent in the same quarter last year. First-quarter net cash provided by operating activities was $220 million. Capital expenditures for the quarter were $47 million. Lexmark repurchased $300 million of its stock during the quarter. The company's remaining share repurchase authorization was $1.0 billion at quarter end. New products, industry recognition highlight progress on core strategic initiatives Lexmark continues to make good progress on its core strategic initiatives and this progress is reflected in the company's award-winning products for the enterprise, small and medium business, and home markets. - Workgroup Monochrome Laser All-in-One: The company announced six new monochrome laser all-in-one products during the first quarter, all of which were recognized as industry-leading devices and Editor's Choices by Better Buys for Business. These AIOs feature Lexmark's new embedded solutions framework. - Low-End Monochrome Laser: Lexmark announced the Lexmark E120n, which features its smallest monochrome laser footprint, making it ideal for small office/home office customers. - Color Laser: The Lexmark C522n color laser printer won a PC Magazine Editors' Choice award. - Channel Support: During the first quarter, for the third consecutive time, Lexmark was named Best Revenue Generator by channel partners at CMP Media's XChange Conference. - Business Inkjet All-in-One: The Lexmark X8350 AIO Plus Photo business inkjet earned top honors from Better Buys for Business, which praised the "superior workflow" capabilities featured in its software. - Inkjet All-in-One: Today, Lexmark is introducing three new all-in-one products that deliver industry-leading value and ease of use for the home market. Looking forward In the second quarter, the company expects revenue to decline in the low- to mid-single digit range year over year. It expects second-quarter 2006 EPS to be in the range of $0.70 to $0.80. This excludes restructuring charges of approximately $0.26 per share. GAAP EPS in the second quarter of 2006 are expected to be in the range of $0.44 to $0.54. GAAP EPS in the second quarter of 2005 were $0.64, or $1.06 excluding the tax cost of $0.42 per share resulting from the approval to repatriate $684 million during 2005 under the American Jobs Creation Act.