The company reported first quarter net income of $US26.7 million, compared to net income of $US29.2 million in the first quarter 2004. Diluted earnings per share were $US.37, a decline of 7.5 percent and within the previous guidance of $US.35 to $US.40. Net cash provided by operating activities was $US78.4 million, up 389 percent from the prior year, while free cash flow* improved by $US59.6 million, moving from a free cash use* of $US1.2 million in the first quarter 2004 to free cash flow* of $US58.4 million. Included in the first quarter 2005 reported results were restructuring charges of $US7.3 million, or approximately $US.07 per share*, related primarily to the realignment of the company’s operations in Western Europe, consistent with previous guidance. The first quarter 2005 effective tax rate was 32.8 percent, compared with previous guidance of 31.5 percent. The higher first quarter effective tax rate reduced reported earnings per share by approximately $US.01. Excluding the impact of both the restructuring charges and the higher effective tax rate, diluted earnings per share in the first quarter would have been $US.45, or 12.5 percent higher than the first quarter of 2004. First Quarter Highlights – Total product orders, excluding election systems, grew in the double- digit range led by double-digit growth in the Europe, Middle East and Africa (EMEA) region and the Americas. – Total Opteva orders were approximately $US109 million, an increase of more than 80 percent from the first quarter 2004 as this new platform continues to gain wider market acceptance globally. – Security solutions revenue grew 19.9 percent and 19.6 percent on a fixed exchange-rate basis*. – Asia Pacific total revenue increased 14.2 percent, and 12.5 on a fixed exchange-rate basis*, while total revenue in the Americas, excluding election systems, grew 13.8 percent, and 12.4 percent on a fixed exchange-rate basis*. – Net cash provided by operating activities improved by $US62.4 million, or 389 percent; while accounts receivable days sales outstanding improved 13 days, moving from 96 days at March 31, 2004 to 83 days at March 31, 2005.
