Standard Register, a leader in the management and execution of mission-critical communications, announced its financial results for the second quarter and first half of 2012. The Company reported quarterly revenue of $155.1 million and a net loss of $1.1 million or $0.04 per share. The results compare to prior year quarterly revenue of $164.3 million and a net loss of $1.0 million or $0.03 per share. Non-GAAP net income after adjustments for pension loss amortization, pension settlement, restructuring charges, tax effect of adjustments and deferred tax valuation allowances was $3.8 million or $0.13 per share for the second quarter of 2012, a $1.0 million increase from non-GAAP net income of $2.8 million, or $0.10 per share for the same period in 2011.
Through the first half of 2012, the Company reported revenue of $312.7 million and a net loss of $6.2 million or $0.21 per share. The first half results compare to last year’s revenue of $329.2 million and a net loss of $0.6 million or $0.02 per share through the first half of 2011. Non-GAAP adjusted net income for the first half of 2012 was $5.7 million or $0.20 per share compared to non-GAAP adjusted net income of $6.9 million or $0.24 per share for the first half of 2011.
“Positive sales activity continued in the second quarter and performance in the aggregate as well as at the business unit level was in line with our restructuring plan,” said Joseph P. Morgan, Jr., president and chief executive officer. “Growth in our core solutions is steady, increasing 3.4 percent in the second quarter. Legacy sales continue to decline disproportionately as businesses discontinue the use of certain operational documents. Cost-saving initiatives associated with our restructuring plan are having a positive impact on operating income and we are optimizing our operations while delivering exceptional service to our customers. Our two business units, Healthcare and Business Solutions, are focused on adding new customers and fully implementing customer wins so they will begin contributing to revenue. We can reaffirm that we expect positive cash flow of at least $5 million for the year.”
Morgan continued, “In the second quarter, we sharpened our customer focus and applied what we have learned about market demand. We are accelerating our investment in the core technology-oriented solutions that are driving sales across the markets we serve, specifically healthcare software and services and marketing solutions software and services, where we can deliver more value for the customer, produce higher margins and offer a complete portfolio of solutions.”
Second Quarter Results
Total revenues declined 6 percent to $155.1 million in the second quarter compared to $164.3 million in the second quarter of 2011. Core solutions grew 3.4 percent, primarily due to increases in unit sales, while Legacy product declined 11.8 percent. At the end of the second quarter, approximately 43 percent of revenue was derived from core solutions sales and approximately 57 percent of revenue came from legacy products.