Pitney Bowes sees marketing, overall revenue declines
Pitney Bowes' marketing services division generated $30 million in revenue in the first quarter, a 6% decline compared with the prior Q1. The company's total revenue in the period also fell 2% year-over-year to $1.3 billion. The Stamford, Conn.-based company said revenue declines in supplies, rentals and financing mitigated gains in software and equipment sales.
Pitney added that a fire at its Dallas mail presort center impacted Q1 revenue from enterprise mail services, which fell 3% year-over-year to $144 million. Revenue from Pitney Bowes' enterprise business was relatively flat, growing 0.3% to $643.5 million.
Pitney Bowes' North American small and medium business mailing revenue fell 5% compared with the prior year to $509 million. The division's overall revenue dropped 4% year-over-year to $679.6 million.
Despite the revenue declines, the company's net income rose 9% year-over-year to $86.3 million.
Pitney Bowes chairman, president and CEO Murray Martin said on an April 29 earnings call that the company is “launching into a hybrid mode” to counteract revenue declines, as well as help its customers communicate with their customers through print or digital.
“What we're doing is positioning the company so that we're attacking the total delivery channel and not just one side,” he said. “And that will give us the ability to both offset [declines] and to create growth as we expand the offerings.”
During the company's full-year 2010 earnings call, Martin said the company expects 2011 revenue “to be in the range of flat-to-3% growth.