Welcome!

AJAX & REA Authors: Pat Romanski, Elizabeth White, Liz McMillan, Plutora Blog, Ram Sonagara

News Feed Item

HARMAN Q1 Fiscal Year 2013 GAAP EPS up 17% to $0.79

Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR), today announced results for the first quarter ended September 30, 2012.

Net sales for the first quarter were $998 million, a decrease of 5 percent compared to the same period last year. In local currency, net sales increased by 2 percent. The Company noted that the year-ago quarter benefitted from an estimated $75 million in additional infotainment sales as vehicle production surged to fulfill pent-up demand and one time competitive replacement following interruptions associated with the tsunami in Japan.

First quarter operating income was $79 million, compared to $74 million in the same period last year. Excluding restructuring charges, operating profit in the first quarter grew by 4 percent to $79 million, compared to $76 million in the same period last year. On a GAAP basis, earnings per diluted share were $0.79 for the quarter compared to $0.67 in the same period last year. Excluding restructuring charges, earnings per diluted share were $0.79 compared to $0.69 in the same period last year.

Dinesh C. Paliwal, HARMAN’s Chairman, President and CEO, commented, “We delivered another strong quarter with growth in local currency, even against last year’s abnormally strong first quarter. Our success continues to be underlined by our launch of several award winning new products and our competitive wins in car audio business from BMW, Ford and Volvo. Despite economic uncertainty and a weak European automotive sector, we have the largest backlog of awarded business in our history. We are proud that relentless execution and continued cost focus has allowed us to post our 12th consecutive quarter of top and bottom line growth. We are also pleased to see our solid track record reflected by our credit rating upgrade to investment grade. We are confident that our excellent liquidity profile will enable us to continue to utilize a variety of initiatives to deploy capital, invest in growth and generate strong returns for our shareholders.”

 
FY 2013 Key Figures – Total Company   Three Months Ended September 30
      Increase
            (Decrease)

$ millions (except per share data)

  3M
FY13
  3M
FY12
  Including
Currency
Changes
 

Excluding
Currency
Changes(1)

Net sales   998   1,051   (5%)   2%
Gross profit   278   288   (3%)   3%
Percent of net sales   27.9%   27.4%        
SG&A & Other   199   214   (7%)   0%
Operating income   79   74   7%   14%
Percent of net sales   7.9%   7.1%        
Net Income   55   48   13%   23%
Diluted earnings per share   0.79   0.67        
Restructuring-related costs   0   2        

Non-GAAP

               
Gross profit(1)   278   289   (4%)   3%
Percent of net sales(1)   27.9%   27.5%        
SG&A & Other(1)   199   213   (7%)   0%
Operating income(1)   79   76   4%   11%
Percent of net sales(1)   7.9%   7.3%        
Net Income(1)   55   50   10%   19%
Diluted earnings per share(1)   0.79   0.69        
Shares outstanding – diluted (in millions) 69 72  
1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Summary of Operations – Gross Margin and SG&A

On a non-GAAP basis gross margin increased 34 basis points to 27.9 percent of sales in the first quarter of fiscal 2013. This improvement was primarily due to neodymium cost mitigation and productivity gains.

On a non-GAAP basis SG&A and Other expense decreased 36 basis points to 19.9 percent of sales.

Investor Call on Friday, November 2, 2012

On Friday, November 2, 2012, HARMAN's management will host an analyst and investor conference call to discuss the first quarter results. Those who wish to participate via audio in the earnings conference call, scheduled at 11:00 a.m. EDT, should dial 1 (800) 659 1839 (U.S.) or +1 (303) 223 4399 (International) ten minutes before the call and reference HARMAN, Access Code: 21608442.

In addition, HARMAN invites you to visit the Investors section of its website at: www.harman.com where visitors can sign-up for email alerts and conveniently download copies of historical earnings releases and supporting slide presentations, among other documents. For your reference during the Analyst and Investor Call, the Company has posted a set of information slides on its website at www.harman.com and accompanying this press release on www.businesswire.com.

A replay of the call will also be available following its completion at approximately 1:00 p.m. EDT. The replay will be available through January 31, 2013 at 1:00 p.m. EST. To listen to the replay, dial 1 (800) 633 8284 (U.S.) or +1 (402) 977 9140 (International), Access Code: 21608442.

If you need technical assistance, call the toll-free Global Crossing Customer Care Line at 1 (800) 473 0602 (U.S.) or +1 (303) 446 4604 (International).

General Information

HARMAN (www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets — supported by 15 leading brands, including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon® and Mark Levinson®. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 13,900 people across the Americas, Europe and Asia, and reported net sales of $4.4 billion for year ended June 30, 2012. The Company's shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.

A reconciliation of the non-GAAP measures included in this press release to the most comparable GAAP measures is provided in the tables contained at the end of this press release. HARMAN does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

Forward-Looking Information

Except for historical information contained herein, the matters discussed in this release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. One should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to: (1) our ability to maintain profitability in our infotainment segment if there are delays in our product launches which may give rise to significant penalties and increased engineering expense; (2) the loss of one or more significant customers, or the loss of a significant platform with an automotive customer; (3) fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the Euro; (4) our ability to successfully implement our global footprint initiative, including achieving cost reductions and other benefits in connection with the restructuring of our manufacturing, engineering, procurement and administrative organizations; (5) fluctuations in the price and supply of raw materials including, without limitation, petroleum, copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; (6) the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; (7) our ability to attract and retain qualified senior management and to prepare and implement an appropriate succession plan for our critical organizational positions; (8) our failure to implement and maintain a comprehensive disaster recovery program; (9) our failure to comply with governmental rules and regulations, including the Foreign Corrupt Practices Act and U.S. export control laws, and the cost of complying with such laws; (10) our ability to maintain a competitive technological advantage through innovation and leading product designs; (11) our failure to maintain the value of our brands and implementing a sufficient brand protection program; and (12) other risks detailed in Harman International Industries, Incorporated Annual Report on Form 10-K for the fiscal year ended June 30, 2012 and other filings made by the Company with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement except as required by law. This earnings release also makes reference to the Company’s awarded business, which represents the estimated future lifetime net sales for all customers. The Company's future awarded business does not represent firm customer orders. The Company calculates its awarded business using various assumptions including global vehicle production forecasts, customer take rates for the Company’s products, revisions to product life cycle estimates and the impact of annual price reductions, among other factors. These assumptions are updated on an annual basis. The Company updates the estimates quarterly by adding the value of new awards received and subtracting sales recorded during the quarter.

HAR-E

APPENDIX

Infotainment Division

 
FY 2013 Key Figures – Infotainment   Three Months Ended September 30
      Increase
            (Decrease)

$ millions

  3M
FY13
  3M
FY12
  Including
Currency
Changes
 

Excluding
Currency
Changes1

Net sales   561   603   (7%)   2%
Gross profit   128   144   (11%)   (2%)
Percent of net sales   22.9%   23.9%        
SG&A & Other   84   97   (14%)   (4%)
Operating income   45   47   (5%)   2%
Percent of net sales   8.0%   7.8%        
Restructuring-related costs   0   2        

Non-GAAP1

               
Gross profit(1)   128   146   (12%)   (3%)
Percent of net sales(1)   22.9%   24.1%        
SG&A & Other(1)   84   97   (14%)   (5%)
Operating income(1)   45   49   (8%)   (1%)
Percent of net sales(1) 8.0% 8.1%  
(1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the first quarter were $561 million, a decrease of 7 percent, or an increase of 2 percent in local currency. Prior year sales were exceptionally robust due to approximately $30 million in one-time competitive replacement business and $45 million in additional sales to fulfill pent-up demand following the tsunami in Japan. Continued revenue growth in BRIC countries was led China, up 27 percent. On a non-GAAP basis gross margin decreased 121 basis points to 22.9 percent of sales, primarily due to the impact of the higher margin competitive substitution business booked in the prior year.

On a non-GAAP basis SG&A and Other expense decreased 116 basis points to 14.9 percent of sales.

Infotainment Division Highlights

In the first quarter, HARMAN continued to be a driving force for innovation in embedded infotainment systems globally.

HARMAN celebrated the start of production of the latest generation BMW infotainment system for all vehicles world-wide. HARMAN’s system for BMW is the most advanced on the market, offering a sophisticated set of features including 3-D navigation with real-time traffic information, brilliant graphics, office function integration, voice command intelligence, internet connectivity, and more.

Chryslers´ latest Ram Truck and Dodge Viper models launched into the market featuring the next generation Uconnect™ infotainment system, designed and built by Harman. This scalable system combines phone, navigation, entertainment, digital media compatibility, Bluetooth, and voice command – including voice activated texting – in an intuitive, easy-to-use design.

In September, Harman announced plans to establish a software engineering center in Chicago to further expand on its global network of Infotainment engineering and development centers. Harman also became a founding member of the Automotive Grade Linux Workgroup, with a goal to foster widespread industry collaboration and reference distributions that advance Linux-based automotive device development. In Pune, India, a new Sales & Development Center started operations.

Harman´s Aha™ Radio was launched as an integral feature in Honda’s new in-vehicle connectivity system HondaLink™. HondaLink with Aha Radio debuted on the 2013 Accord in September and will be rolled out to Honda’s entire U.S. line. Aha will be seamlessly integrated into the HondaLink mobile app and audio system-based interface for a unified user experience and will bring tens of thousands of stations of digital content to drivers.

Lifestyle Division

 
FY 2013 Key Figures – Lifestyle   Three Months Ended September 30
      Increase
            (Decrease)

$ millions

  3M
FY13
  3M
FY12
  Including
Currency
Changes
 

Excluding
Currency
Changes1

Net sales   292   300   (3%)   3%
Gross profit   94   89   6%   11%
Percent of net sales   32.3%   29.7%        
SG&A & Other   57   60   (4%)   1%
Operating income   37   29   27%   32%
Percent of net sales   12.8%   9.8%        
Restructuring-related costs   0   0        

Non-GAAP1

               
Gross profit(1)   94   89   6%   11%
Percent of net sales(1)   32.3%   29.7%        
SG&A & Other(1)   57   59   (4%)   2%
Operating income(1)   37   29   26%   31%
Percent of net sales(1) 12.7% 9.8%  
(1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the first quarter were $292 million, a decrease of 3 percent, or an increase of 3 percent in local currency. Sales growth in local currency was led by robust demand in emerging markets, led by 28 percent growth in China. On a non-GAAP basis gross margin increased 2.7 percentage points to 32.3 percent of sales. The improvement was primarily due to neodymium cost mitigation and productivity gains.

On a non-GAAP basis, SG&A and Other expense decreased 22 basis points to19.6 percent of sales.

Lifestyle Division Highlights

In the first quarter, Harman extended its global leadership in automotive audio with $800 million of new competitive awards from major automakers including BMW, Ford and Volvo. Customers in all major markets continue to acknowledge our technological leadership, strong brand portfolio, and best-in-class global footprint.

Expanding our existing audio business with BMW, Harman was selected for new cross-car line ultra-premium level audio systems worldwide, and Volvo Car Corporation signed a letter of intent with Harman to provide ultra-premium branded audio across multiple vehicle platforms. This is HARMAN’s first branded audio award with Volvo and marks the beginning of a new strategic relationship. In North America, Ford Motor Company chose Harman as its branded audio partner for select future programs. This newly established partnership is the result of a common focus on technical innovation and a shared vision to create an unmatched ownership experience.

In Italy, the Fiat Group has also awarded HARMAN a second luxury branded audio contract for its famed Maserati sports car line, in addition to the JBL sound system recently launched on the Fiat Abarth 500 special edition. These two awards, in the luxury flagship Maserati brand and the sporty Abarth brand, show the breadth of the HARMAN portfolio and our ability to satisfy customer needs in all product segments.

Across Asia, HARMAN secured eight new program awards with six different OEMs. In China, HARMAN was awarded the first ever branded audio business with JAC, a major domestic automaker, as well as additional programs with current customers BAIC and Geely. In Japan, our long-term relationships with Subaru (with the Harman/Kardon brand) and Lexus (with the Mark Levinson brand) continue, as HARMAN has been nominated for two replacement platforms with each company. In Korea, the Company continues to expand its portfolio of business with Kia by securing HARMAN’s first branded audio award in the small C-segment SUV platform.

Also during the first quarter, HARMAN launched 56 new consumer audio products at the IFA show in Berlin. At this show, the Harman/Kardon SB30 sound bar was awarded a prestigious EISA award. As a long-time Apple technology partner, HARMAN was selected to participate in the iPhone5 launch showcasing JBL docking stations featuring new 8-pin Lightning connectors. The Company also collaborated with Nokia to launch JBL PowerUp, the first co-branded wireless charging/docking speakers for the Nokia Windows 8 smartphones.

Professional Division

 
FY 2013 Key Figures – Professional   Three Months Ended September 30
      Increase
            (Decrease)

$ millions

  3M
FY13
  3M
FY12
  Including
Currency
Changes
 

Excluding
Currency
Changes1

Net sales   144   148   (3%)   0%
Gross profit   55   55   1%   4%
Percent of net sales   38.4%   37.0%        
SG&A & Other   35   39   (8%)   (6%)
Operating income   20   16   23%   27%
Percent of net sales   13.8%   10.9%        
Restructuring-related costs   0   0        

Non-GAAP1

               
Gross profit(1)   55   55   1%   4%
Percent of net sales(1)   38.5%   37.2%        
SG&A & Other(1)   35   39   (8%)   (6%)
Operating income(1)   20   16   22%   25%
Percent of net sales(1) 13.8% 11.1%  
(1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the first quarter were $144 million, a decrease of 3 percent, or flat in local currency. On a non-GAAP basis gross margin increased 132 basis points to 38.5 percent of sales. The primary reason for the gross margin improvement was neodymium cost mitigation, new product introductions at price premium and productivity gains. On a non-GAAP basis SG&A and Other expense decreased 145 basis points to 24.7 percent of sales, primarily as a result of productivity improvements within R&D expense.

Professional Division Highlights

In the first quarter, HARMAN equipment was installed in over 13 major venues including the Oakland Arena, Williams Arena at the University of Minnesota, and Houston’s 16,800-seat Lakewood Church. Harman received major contracts for equipment sales to outfit two new FIFA Official Stadiums for the 2014 World Cup in Brazil.

During the quarter, the Company introduced new category-leading signal processing, mixing console, installation loudspeakers and software user interface products. HARMAN’s new integrated audio and visual information delivery solution called IDX is being adopted by a growing number of airport and transit facilities, and the IDX installation at Colombia’s Bogota International Airport was completed. The Company’s professional audio products were in use at major special events like the BMW Olympic Delegates Celebration in Beijing, Las Vegas’ iHeart Radio Festival, and the Global Poverty Project Benefit concert in New York. HARMAN professional audio systems continue their strong legacy of supporting leading concert artists like Neil Diamond, Barry Manilow, and Lenny Kravitz among others on their international tours.

Other (Corporate)

 
FY 2013 Key Figures – Other   Three Months Ended September
      Increase
            (Decrease)

$ millions

3M
FY13
  3M
FY12
Including
Currency
Changes
 

Excluding
Currency
Changes1

SG&A & Other   23   18   25%   25%
Restructuring-related costs   0   0        

Non-GAAP

               
SG&A & Other(1) 23 18 25% 25%
(1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

The Company continued the rollout of its global marketing campaigns. The Company’s Corporate Technology Center is driving and enabling cutting-edge development in connectivity and networking, cloud computing, wireless technologies, digital signal processing, and energy-efficient solutions. The Company is building on its strong base of patents and patents pending, including 175 patents issued or filed worldwide during the first quarter. The increase in first quarter SG&A expense compared to the prior year is primarily due to stock compensation forfeitures recorded in the prior year and investments in global brand marketing.

 
Harman International Industries, Incorporated
Consolidated Statements of Income
 
(In thousands, except earnings per share data; unaudited)   Three Months Ended
September 30,
   

2012

 

2011

Net sales   $ 998,193   $ 1,050,603
Cost of sales    

719,946

   

762,961

Gross profit     278,247     287,642
Selling, general and administrative expenses     199,156     213,752
Sale of Intellectual Property     0     (288)
Operating income     79,091     74,178
Other expenses:        
Interest expense, net     5,995     5,276
Miscellaneous, net    

1,330

   

5,668

Income from operations before taxes     71,766     63,234
Income tax expense    

17,211

   

14,867

Net income   $

54,555

  $

48,367

Earnings per share:        
Basic   $ 0.79   $ 0.68
Diluted   $ 0.79   $ 0.67
Weighted average shares outstanding:        
Basic     68,682     71,283
Diluted     69,471     71,882
 
Harman International Industries, Incorporated
Consolidated Balance Sheets
 

(In thousands; unaudited)

 

September 30,
2012

 

June 30,
2012

ASSETS        
Current assets        
Cash and cash equivalents   $ 633,935   $ 617,356
Short-term investments     64,656     203,014
Accounts receivable     648,341     582,835
Inventories     512,567     427,597
Other current assets    

286,869

   

285,443

Total current assets     2,146,368     2,116,245
Property, plant and equipment     425,841     430,234
Goodwill     180,533     180,811
Deferred tax assets, long term     284,356     308,768
Other assets     150,453     133,406
Total assets   $

3,187,551

  $ 3,169,464
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current liabilities        
Current portion of long-term debt   $ 399,700   $ 395,409
Short-term debt     212     227
Accounts payable     477,849     505,694
Accrued liabilities     358,322     368,002
Accrued warranties     99,453     97,289
Income taxes payable    

17,051

   

15,279

Total current liabilities     1,352,587     1,381,900
Pension liabilities     169,524     168,099
Other non-current liabilities    

90,990

   

89,854

Total liabilities    

1,613,101

   

1,639,853

Total equity    

1,574,450

   

1,529,611

Total liabilities and equity   $

3,187,551

  $ 3,169,464
 
Harman International Industries, Incorporated
Reconciliation of GAAP to Non-GAAP Results
 
(In thousands, except earnings per share data; unaudited)   Three Months Ended
September 30, 2012
   

GAAP

 

Adjustments

 

Non-GAAP

Net sales   $ 998,193   $ 0   $ 998,193
Cost of sales    

719,946

 

(40)a

   

719,906

Gross profit     278,247     40     278,287
Selling, general and administrative expenses     199,156   (188)b     198,968
Sale of Intellectual Property     0     0     0
Operating income     79,091     228     79,319
Other expenses:            
Interest expense, net     5,995     0     5,995
Miscellaneous, net    

1,330

   

(27)

   

1,303

Income from operations before taxes     71,766     255     72,021
Income tax expense    

17,211

   

63c

   

17,274

Net income   $ 54,555   $ 192   $ 54,747
Earnings per share:            
Basic   $ 0.79   $ 0.01   $ 0.80
Diluted   $ 0.79   $ 0.00   $ 0.79
Weighted average shares outstanding:            
Basic     68,682         68,682
Diluted     69,471         69,471

(a) Restructuring expense in Cost of Sales was $0.04 million due to projects to increase efficiency in manufacturing.

(b) Restructuring credit in SG&A was $0.2 million due to reverse of accrual formed in prior period.

(c) The tax benefits are calculated by multiplying the actual restructuring charge in each individual country by the discrete tax rate within that specific country.

Harman International has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of our non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.

 
Harman International Industries, Incorporated
Reconciliation of GAAP to Non-GAAP Results
 
(In thousands, except earnings per share data; unaudited)   Three Months Ended
September 30, 2011
   

GAAP

 

Adjustments

 

Non-GAAP

Net sales   $ 1,050,603   $ 0   $ 1,050,603
Cost of sales    

762,961

 

(1,702)a

   

761,259

Gross profit     287,642     1,702     289,344
Selling, general and administrative expenses     213,752   (313)b     213,439
Sale of Intellectual Property    

(288)

    0    

(288)

Operating income     74,178     2,015     76,193
Other expenses:            
Interest expense, net     5,276     0     5,276
Miscellaneous, net    

5,668

    0    

5,668

Income from operations before taxes     63,234     2,015     65,249
Income tax expense    

14,867

   

543c

   

15,410

Net income   $ 48,367   $ 1,472   $ 49,839
Earnings per share:            
Basic   $ 0.68   $ 0.02   $ 0.70
Diluted   $ 0.67   $ 0.02   $ 0.69
Weighted average shares outstanding:            
Basic     71,283         71,283
Diluted     71,882         71,882

(a) Restructuring expense in Cost of Sales was $1.7 million due to projects to increase efficiency in manufacturing.

(b) Restructuring expense in SG&A was $0.3 million due to projects to increase efficiency in engineering and administrative functions.

(c) The tax benefits are calculated by multiplying the actual restructuring charge in each individual country by the discrete tax rate within that specific country.

Harman International has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of our non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.

   
Harman International Industries, Incorporated
Reconciliation of GAAP to Non-GAAP Results
Foreign Currency Translation Impact
 

(In thousands; unaudited)

  Three Months Ended
September 30,

Increase

(Decrease)

   

2012

 

2011

 
Net sales – nominal currency   $ 998,193   $ 1,050,603   (5)%
Effect of foreign currency translation(1)        

(71,975)

   
Net sales - local currency     998,193     978,628   2%
             
Gross profit – nominal currency     278,247     287,642   (3)%
Effect of foreign currency translation(1)        

(18,530)

   
Gross profit – local currency     278,247     269,112   3%
             
SG&A & Other – nominal currency     199,156     213,464   (7)%
Effect of foreign currency translation(1)        

(13,512)

   
SG&A & Other – local currency     199,156     199,952   0%
             
Operating income – nominal currency     79,091     74,178   7%
Effect of foreign currency translation(1)        

(5,018)

   
Operating income – local currency     79,091     69,160   14%
             
Net income – nominal currency     54,555     48,367   13%
Effect of foreign currency translation(1)        

(3,892)

   
Net income – local currency     54,555     44,475   23%
             
(1) Impact of restating prior year results at current year foreign exchange rates.

Harman International has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect our reported financial results, we show the rates of change both including and excluding the effect of these changes in exchange rates. We encourage readers of our financial statements to evaluate our financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.

   
Harman International Industries, Incorporated
Reconciliation of Non-GAAP Results
Foreign Currency Translation Impact
 

EXCLUDING restructuring and goodwill charges

(In thousands; unaudited)

 

Three Months Ended
September 30,

Increase

(Decrease)

   

2012

 

2011

 
Net sales – nominal currency   $ 998,193   $ 1,050,603   (5)%
Effect of foreign currency translation(1)        

(71,975)

   
Net sales – local currency     998,193     978,628   2%
             
Gross profit - nominal currency     278,287     289,344   (4)%
Effect of foreign currency translation(1)        

(18,525)

   
Gross profit - local currency     278,287     270,819   3%
             
SG&A & Other – nominal currency     198,968     213,151   (7)%
Effect of foreign currency translation(1)        

(13,512)

   
SG&A & Other – local currency     198,968     199,639   0%
             
Operating income – nominal currency     79,319     76,193   4%
Effect of foreign currency translation(1)        

(5,013)

   
Operating income – local currency     79,319     71,180   11%
             
Net income – nominal currency     54,747     49,839   10%
Effect of foreign currency translation(1)        

(3,887)

   
Net income – local currency     54,747     45,952   19%
             

(1) Impact of restating prior year results at current year foreign exchange rates.

Harman International has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect our reported financial results, we show the rates of change both including and excluding the effect of these changes in exchange rates. We encourage readers of our financial statements to evaluate our financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.

 
Harman International Industries, Incorporated
Total Liquidity Reconciliation
 
Total Company Liquidity  

As of September
30, 2012

$ millions  
Cash & cash equivalents   $634
Short-term investments   65
Available credit under Revolving Credit Facility   541
Total liquidity   $1,240
 
Harman International Industries, Incorporated
Revised Lifestyle Division Reporting Due to Organizational Restructuring
(unaudited)
 
$millions   Lifestyle Division
   

GAAP

 

Restructuring

 

Non-GAAP

Three Months Ended September 30, 2011            
Net sales   299.8   -   299.8
Gross profit   89.0   (0.1)   88.9
Selling, general and administrative expenses   59.7   (0.2)   59.5
Operating income   29.3   0.2   29.5
             
Three Months Ended December 31, 2011            
Net sales   368.8   -   368.8
Gross profit   108.5   -   108.5
Selling, general and administrative expenses   58.9   (0.2)   58.7
Operating income   49.6   0.2   49.8
             
Three Months Ended March 31, 2012            
Net sales   332.0   -   332.0
Gross profit   93.5   -   93.5
Selling, general and administrative expenses   63.3   (0.4)   62.9
Operating income   30.2   0.4   30.6
             
Three Months Ended June 30, 2012            
Net sales   330.2   -   330.2
Gross profit   102.3   -   102.3
Selling, general and administrative expenses   59.9   0.5   60.4
Operating income   42.4   (0.5)   41.9
             
Twelve Months Ended June 30, 2012            
Net sales   1,330.8   -   1,330.8
Gross profit   393.3   (0.1)   393.2
Selling, general and administrative expenses   241.8   (0.3)   241.5
Operating income   151.5   0.2   151.7
 
Harman International Industries, Incorporated
Revised Professional Division Reporting Due to Organizational Restructuring
(unaudited)
 
$millions   Professional Division
   

GAAP

 

Restructuring

 

Non-GAAP

Three Months Ended September 30, 2011            
Net sales   147.5   -   147.5
Gross profit   54.5   0.3   54.8
Selling, general and administrative expenses   38.5   -   38.5
Operating income   16.0   0.3   16.3
             
Three Months Ended December 31, 2011            
Net sales   158.4   -   158.4
Gross profit   58.4   -   58.4
Selling, general and administrative expenses   36.2   (1.1)   35.1
Operating income   22.2   1.1   23.2
             
Three Months Ended March 31, 2012            
Net sales   152.8   -   152.8
Gross profit   58.9   -   58.9
Selling, general and administrative expenses   46.4   (6.7)   39.7
Operating income   12.5   6.8   19.2
             
Three Months Ended June 30, 2012            
Net sales   172.0   -   172.0
Gross profit   60.0   0.1   60.1
Selling, general and administrative expenses   37.7   (0.6)   37.1
Operating income   22.3   0.7   23.0
             
Twelve Months Ended June 30, 2012            
Net sales   630.7   -   630.7
Gross profit   231.8   0.4   232.2
Selling, general and administrative expenses   158.8   (8.4)   150.4
Operating income   73.0   8.8   81.8

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50463730&lang=en

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
CA Technologies released a new study – “DevOps: The Worst-Kept Secret to Winning in the Application Economy” – that reveals that 82% of enterprises in Asia Pacific and Japan (APJ) already have or plan to adopt a DevOps strategy, a 12 point increase from last year’s figure of 70%. DevOps is a methodology which helps foster collaboration between the teams that create and test applications (Dev) with those that maintain them in production environments (Ops). Vanson Bourne conducted the survey with...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...
At 15th Cloud Expo, Shrikant Pattathil, Executive Vice President at Harbinger Systems, demos a video delivery platform that helps you do interactive videos. He discusses how Harbinger is accomplishing it in the cloud world, the problems they faced and the choices they made to get around these problems.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at ...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use c...
NuoDB just introduced the Swifts 2.1 Release. In this demo at 15th Cloud Expo, Seth Proctor, CTO of NuoDB, Inc., discussed why scaling databases in the cloud is challenging, why building your application on top of the infrastructure that is designed with this in mind makes a difference, and what you can do with NuoDB that simplifies your programming model, your operations model.
“The year of the cloud – we have no idea when it's really happening but we think it's happening now. For those technology providers like Zentera that are helping enterprises move to the cloud - it's been fun to watch," noted Mike Loftus, VP Product Management and Marketing at Zentera Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. Acco...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
“We are a managed services company. We have taken the key aspects of the cloud and the purposed data center and merged the two together and launched the Purposed Cloud about 18–24 months ago," explained Chetan Patwardhan, CEO of Stratogent, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps,...