UPDATE 1-Check printer Deluxe 1st-qtr profit falls

Thu Apr 23, 2009 6:47pm IST

Related Topics

Stocks

   

* Revenue falls 10 percent to $339.5 mln

* Projects Q2 adjusted profit of 43 to 51 cents per share

* Projects full-year adjusted profit of $2.05 to $2.35/shr

NEW YORK, April 23 (Reuters) - Deluxe Corp (DLX.N), the largest U.S. printer of checks, said profit fell for a sixth straight quarter, hurt by charges related to the writedown of goodwill and restructuring-linked costs.

First-quarter net income fell to $12.5 million, or 24 cents per share, from $27.3 million, or 52 cents, a year earlier, the St. Paul, Minnesota-based company reported on Thursday. Revenue fell 10 percent to $339.5 million.

Excluding $24.9 million in asset impairment charges related to goodwill writedowns and a restructuring charge, as well as one-time gains from long-term debt repurchases, operating profit was 56 cents per share, Deluxe said.

Analysts on average expected profit of 38 cents per share on revenue of $329.57 million, according to Reuters Estimates. Deluxe in January projected profit of 38 cents to 46 cents per share, excluding restructuring costs, on revenue of $335 million to $350 million.

Revenue fell 8.7 percent to $193.3 million in small business services, fell 10.4 percent to $102 million in financial services, and fell 14 percent to $44.2 million in direct checks.

Deluxe projected second-quarter profit of 43 cents to 51 cents per share, excluding 2 cents per share of restructuring costs, on revenue of $325 million to $340 million. Analysts on average expected 45 cents per share on revenue of $334.86 million.

The company projected full-year profit of $2.05 to $2.35 per share, excluding 35 cents per share of restructuring and other one-time costs, on revenue of $1.3 billion to $1.385 billion. Analysts on average expected profit of $1.91 per share on revenue of $1.34 billion. Deluxe in January projected profit of $1.95 to $2.35 per share on revenue of $1.3 billion to $1.4 billion.

Shares of Deluxe closed Wednesday at $11.46 on the New York Stock Exchange. (Reporting by Christian Plumb; editing by John Wallace)

FILED UNDER: