Deluxe Shares Soar Despite Second QuarterLosses
ST. PAUL, Minn. - (07/28/06) -- Shares in check-printer surgedalmost 20% Thursday morning after company officials announced steepsecond quarter losses and cost-cutting plans. The company said netlosses were $2 million, or five cents a share, for the secondquarter, compared to a profit of $42 million, or 83 cents a share,for the second quarter last year. This year's second quarterincluded a $45 million write-off for the abandonment of a softwareproject. Revenues declined by 7% for the period to $403 million.Deluxe also slashed its second quarter dividend by 33% to 25 centsa share. New CEO Lee Schram said the company had identifiedcost-cutting and efficiency opportunities that could reduce costsby $150 million or more by the end of 2008. Deluxe shares weretrading up almost 20% to $16.48 on Thursday morning following thenews. For the first six months of the year, Deluxe reported a 7%decline in revenues to $814 million, and a 73% drop in earnings to$22 million, or 42 cents a share, compared to the first half lastyear.