Pitney Bowes takes a dip in third quarter

By Kevin Zimmerman

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Pitney Bowes Inc. reported third-quarter revenue of $839 million, down 3.5 percent year over year and down 2 percent when adjusted for the impact of currency and market exits in Mexico, South Africa and five markets in Asia. Earnings per share were $0.47, a 2.3 percent year over year improvement.

For 2016, the Stamford company expects to be at the low end of its annual guidance range for revenue and adjusted earnings per share. It expects revenue on a constant currency basis to decline by 1 to 3 percent when compared to last year.

“We continued to make progress against our strategic initiatives to transform Pitney Bowes,” said president and CEO Marc B. Lautenbach. “Our new enterprise business platform, which was deployed in the second quarter, continues to provide operational benefits, while our new products and solutions introduced in the second and third quarter tied to the Pitney Bowes Commerce Cloud are resonating well with our clients and gaining traction.

“While we continue to make progress in building out our partner channel in our software solutions business by adding new regional system integrators and location intelligence partners in the third quarter, license revenue fell short of our expectations,” he added. “In our small and medium business, equipment sales rebounded after the deployment of our enterprise business platform, but there were some lingering effects that impacted our stream revenues. That said, we are confident that the actions we have put in place in the third quarter will begin to yield better results in the fourth quarter and throughout 2017.”

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