X-Rite announces US$118m loss for 2008

For the quarter, the figures showed sales of US$60.8m (A$89.7m), with US$8.6m from its Pantone division – a year on year drop of 20%. However, the company also recorded a number of charges, including a US$3.8m cost related to its deferred financing arrangements and a US$58.1m non-cash charge related to its 2007 acquisition of Pantone.

The company said that the latter would not affect its cashflow, liquidity position or credit facilities.

For the full year, X-Rite reported sales of US$261.5m (A$385.5m), down 7.7% year-on-year (including Pantone) and a net loss of US$117.8m (A$173.4m). However it reduced its debt balance to US$270.9m (A$399.4m) and said it maintained US$50.8m in cash.

X-Rite chief executive officer Thomas J. Vacchiano said: “Our team made good progress on a number of fronts in the fourth quarter that resulted in a stronger balance sheeet, exciting new product shipments, and important new customer projects… Pantone’s brand, customer base and business model continue to be extremely valuable to X-Rite and will create a range of new opportunitites for X-Rite by serving the complete value chain of many of our targeted markets.”

The company expects Q1 2009 to be down between 25% and 30% down year on year, although it is also implementing a range of cost-reduction measures in line with the effects of the recession and to maintain the necessary margins under its credit facility covenants.

Shares in X-Rite closed at US$1 yesterday, down from the previous day’s close of US$1.05.

Read the original article at www.printweek.com.

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