Intermec makes data collection and mobile computing devices that track supply chain assets. Products include bar code scanners, RFID readers, mobile and fixed vehicle computers, printers, and label media. Intermec also offers installation, training, support, and repair services and sells voice-directed workflow technology through its
business. The company's products are used to automate and manage functions related to distribution, warehousing, and manufacturing. Intermec, which serves customers globally, targets the warehouse and distribution, field services, postal and courier express, and direct store delivery markets. It was acquired by
in late 2013.
Change in Company Type
Intermec was acquired by industrial conglomerate
in September 2013 for $600 million. Intermec will become a part of Honeywell's Scanning & Mobility division, which is part of its
Automation and Control Solutions
Intermec divides its operations into three segments: Intermec-branded products (67% of total sales), Intermec-branded services (18%), and voice solutions (15%).
Intermec has domestic offices in Iowa, Ohip, Pennsylvania, and Washington. International locations reside in Australia, Brazil, Canada, China, Denmark, France, Germany, Italy, Korea, Mexico, the Netherlands, Sweden, and the UK. Customers in North America make up roughly half of sales.
Sales and Marketing
Although the company does market products through its own sales force, it generates some three-fourths of sales via channel partners. Distributor
accounts for 10% of total sales.
Intermec has suffered four straight years of net losses, with a loss of $283 million for 2012 marking its worst yet. Revenues also declined 7% from $848 million in 2011 to $791 million in 2012.
The revenue declines in 2012 were attributed to unfavorable foreign currency translations along with a 12% dip in Intermec-branded products revenue within the EMEA region.
The company's net loss of $283 million for 2012 was due to large impairment of goodwill expenses (around $52 million), the company's lower market capitalization, and a significant surge in income tax expenses ($216 million in 2012 compared to $23 million in 2011).
Before it was acquired by Honeywell in late 2013, Intermec's was expanding its rugged mobile devices business to vertical markets with positive growth prospects within the automated identification and data collection (AIDC) industry. In addition to strengthening its sales and marketing organization, the company counted on services such as system design and activation, on-site and depot repair, and managed remote device and network services to bolster global product sales. It grew organically, but still made strategic acquisitions when the opportunities presented themselves.
Mergers and Acquisitions
Among the strategic acquisitions Intermec has made are Vocollect and Enterprise Mobile, both in 2011. It paid about $190 million for industrial voice recognition software and systems provider Vocollect in a move to expand its presence in the warehouse and distribution center space. Intermec made the Enterprise Mobile purchase to bolster its mobile business, which has focused primarily on rugged devices. Enterprise Mobile offered mobile phone lifecycle management for enterprise customers, overseeing device deployment, training, technical support, repair, and recycling for business clients. Intermec added this extended service list to those already offered by its resellers.