Checkpoint Systems 4Q loss widens as sales drop

Checkpoint Systems 4Q loss widens as sales drop, marks down value of retail merchandising unit

Associated Press

THOROFARE, N.J. (AP) -- Checkpoint Systems' fourth-quarter loss widened as its sales shrank and it marked down the value of one of its divisions.

Checkpoint Systems Inc. provides services to retailers designed to help stem theft of their products, such as radio-frequency identification tags for merchandise. As its revenue shrank last year, it launched a cost-cutting drive. The company said Tuesday that it has already cut 1,850 of the 2,400 job cuts targeted.

For the period ended Dec. 30, the company lost $35.4 million, or 86 cents per share. That compares with a loss of $19.1 million, or 47 cents per share, a year earlier. It had a $38 million charge in the most recent quarter to write down the value of its retail merchandising unit.

Removing that charge, restructuring costs and results from the CheckView business that Checkpoint said Monday it plans to sell, earnings came to 9 cents per share, compared with a loss of 12 cents per share the year before.

Revenue declined 11 percent to $200.2 million from $225.1 million.

For all of 2012, Checkpoint's loss deepened to $145.9 million, or $3.56 per share. It lost $66.6 million, or $1.64 per share, in 2011. Revenue fell 10 percent to $690.8 million

Going forward, the Thorofare, N.J. company anticipates 2013 adjusted earnings between 65 cents and 75 cents per share on revenue in a range of $665 million to $685 million.

Shares were inactive in premarket trading Tuesday. They have risen 5.8 percent over the past 12 months.

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