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OEM News - Volume 3, Issue 1, 2011

OEM News, by Warren Rainer

EA30, Wow What a Scanner!

It's always exciting to start a new year with new plans, new budgets, new market opportunities and old friends. I hope your year is off to a good start, I know we have been very busy working with many of you on new projects and products. While attending the National Retail Federation show in New York last month I noticed large QR codes on many booths and signs. These codes were meant to scan with your phone to connect to some specific content point on the WEB or show special or a hundred other fascinating options. Upon observing these omnipresent codes I had to smile a bit as these barcodes were now suddenly the latest "Hi Tech" connection to the Internet. It was only a few short years ago the pundits were predicting the end of barcodes in favor of RFID.

I am sure most of you have either used your phone to board a plane or have seen others using their phones for this application. You can expect to see more of this type of application. You can also expect 2D codes to continue their rise to market dominance.

To support this migration to both 2D and to imaging, Intermec is proud and excited to announce the EA30 2D imager. The EA30 is truly remarkable in its motion tolerance, snappiness, aiming and illumination. This is the first scan engine for mobile devices that uses white LEDs and can boost motion tolerance ability up to 500 inches per second. Truly a scanner you will want to try for yourself. To learn more about this great new product please be sure to sign up for the launch WEBEX on Wednesday, March 30th. There will be a morning and evening presentation so all time zones can be included. If you are interested in registering for this launch presentation, please register at:

March 30 – 8:00 am PDT:
Link - https://intermec.webex.com/intermec/onstage/g.php?t=a&d=967406185
Event number: 967 406 185
Event password: imager

March 30 – 5:00 pm PDT:
Link - https://intermec.webex.com/intermec/onstage/g.php?t=a&d=963660525
Event number: 963 660 525
Event password: imager

Also on the product side please check out the new release of firmware for our industry standard production decoders. If you are a contracted user of Intermec engines and use this product today you will receive an official tech bulletin but for a great brief description please see technical article below. I look forward to speaking with you again in the very near future, best regards and have a great Q1.

Warren Rainer
OEM Sales Director
Phone: 425-348-2763
Cell: 425-876-5515
Send Warren an Email »

Intermec News

4th Quarter Year End Results

Intermec's fourth quarter reported strong demand and continuing improvement in the overall business.

Fourth quarter 2010 revenues were $200 million and net earnings from continuing operations were $7.9 million, or $0.13 per diluted share, compared to the $179 million and net earnings from continuing operations of $6.0 million, or $0.10 per diluted share for the fourth quarter of 2009.

"Intermec delivered solid fourth quarter results, driven by strong sales in each region and increased enterprise spending on rugged mobile computers," said Patrick J. Byrne, Intermec President and CEO. "Our new product introductions, most recently the 70 series of ultra rugged computers, reinforce Intermec's leadership in our key deployment environments. This puts Intermec in a strong position to deliver profitable growth in 2011. We believe our acquisition of Vocollect will further accelerate our growth and contribute to earnings in the first year."

Full year 2010 revenues were $679 million with a net loss from continuing operations of $(5.3) million, or $(0.09) per diluted share. Full year 2010 results included restructuring charges of $2.8 million and impairment of facility charges of $3.0 million. Excluding these pre-tax restructuring and impairment of facility charges, the adjusted net loss from continuing operations for full year 2010 was $(1.5) million or $(0.03) per diluted share.

Full year 2009 revenues were $658 million with a net loss from continuing operations of $(10.9) million or $(0.17) per diluted share. Full year 2009 results included restructuring charges of $20.6 million or $0.22 per diluted share.

For the full year 2010, revenue growth was 3%. Net of US Government business, growth was 11%. On a geographic basis, North America was down 8%, but up 6% after setting aside the US Government business. Internationally EMEA grew 14%, Latin America grew 20%, and Asia Pacific grew 32%.

Fourth Quarter 2010 Operating Performance

  • Total revenue of $200 million increased 12% from the prior-year quarter, and was up 13% when adjusted for currency translation.
  • Geographically, compared to the prior-year quarter, revenues in North America increased 9%. In Europe, Middle East and Africa (EMEA) revenues increased 15%, or 23% on a constant currency basis. The rest of world improved by 13%, led by APAC's growth of 30% and Latin America increasing 6%.
  • Systems and Solutions revenue grew 20%, Printer and Media revenue increased 5% and Service revenue declined 3%, all as compared to the prior-year quarter.
  • Gross profit margin of 39.7% was flat compared to the prior-year quarter. Product gross margin of 39.0% increased 0.7 percentage points while service gross margin of 42.7% decreased 2.6 percentage points compared to the fourth quarter 2009.
  • Total operating expenses for the quarter were $69.8 million, compared to $63.8 million in the prior-year quarter. Included in the $63.8 million for the prior-year quarter were $1.9 million of restructuring expenses.
  • Intermec generated positive cash flow from operations during the quarter of $16.8 million; for the full year, cash flow from operations was $21.8 million. Intermec's cash, cash equivalents, and short-term investments totaled approximately $228 million, and ended the year with no debt outstanding.

Intermec also launched the CN70 and CK71 line of new computers. This new family is built from a single platform and gives the customer a complete range of products to meet their particular application requirements.

Andy's Tips

Release 4 of our EA15/ED30 firmware

Last year we saw the release of our new ED40 decode platform that added USB to our imaging line. We continue to improve our decode algorithms with improved decoding and new features as the market finds new ways to use imaging to collect data and automate different processes. We are pleased to announce our release 4 of our EA15 or ED30 firmware. ED30 is the decode board we have always used in our EA15 engine but with our wide range of optics engines we have decided to separate the decode board model from the optics engines. For ED30 our improved decode is able to read bar codes faster with improved performance on the real world, hard to read bar codes we know every scanning application faces. This same decode library will have a release in our ED40 decode board with support of our EA21 mega pixel imager and our EA20x long range imager.

We have also been keenly aware of some developing markets with ability to read dot peen bar code which is part of the family of bar code know as Direct Part Marking. These bar codes are embedded in the surface of metal or even plastic part and do not actually require a label. We have also found some of you wanted to create your own fixed scanner applications. We find these were the imager is embedded into test equipment, kiosk, or hand held scanners that our fixed and bar codes are presented to the imagers. These present their own unique set of requirements to control the lighting, aiming and work in various lighting conditions. Please read up on some of these new features in our release 4 flash bulletin or contact Intermec OEM account managers and systems engineers for assistance.

Bar code imagers are cameras specially tuned to read bar codes but they can also capture pictures. We have added to our imaging capabilities new image correction algorithms that provide user feedback when image has proper quality, the controls to improve and quickly transfer the images you want to keep.

Through Intermec's 40 plus years, we have always recognized the power of automated data entry. From one dimensional barcodes to now two dimensional bar codes and RFID, Intermec is here to help solve your data collection application with innovative solutions. We look forward to another year of exciting news in 2011.

Best Regards,

Andy Reynolds
OEM Sales Manager
Phone: 425-234-2836
Cell: 425-321-3266
Send Andy an Email »

Meet the Partners

JADAK Technologies

Intermec utilizes select partners to help provide fulfillment of the sale of our engines into specific markets, specialty applications and smaller volume requirements. One such partner is Jadak in North America and parts of Europe. Jadak not only resells Intermec scan engines, but provides data collection technologies such as 2D barcode scanners, machine vision systems and RFID engines, as well as communication technologies such as Bluetooth, 802.11, USB and Ethernet, to OEM Medical Device Manufacturers. The solutions provided by JADAK are either integrated into medical devices or are fully designed products designed and manufactured specifically for their OEM customers.

Learn more about Marvel: www.jadaktech.com

OEM Sales Team

Meet the other members of the OEM Sales Team

Takaharu Moridaira

Takaharu Moridaira
OEM Sales Manager - APAC
Phone: +81-3-3770-5754
Cell: +81-90-9975-8062
Send Takaharu an Email »

Mark Timms
OEM Sales Manager - Americas
Phone: 972-867-6396
Cell: 214-668-6252
Send Mark an Email »

Joyce Yu
OEM Sales Manager - Taiwan
Phone: +886-2-2836-2160
Cell: +886-936-934-366
Send Joyce an Email »

Miguel Martin
OEM Sales Manager - EMEA
Phone: +34-91-806-02-19
Cell: +34-680-99-36-41
Send Miguel an Email »

Ken Mott
OEM Systems Engineer
Phone: 425-348-2630
Cell: 206-263-6004
Send Ken an Email »

Monica Chandler
Customer Support Specialist
Phone: 425-265-2159
Send Monica an Email »