Pitney Bowes Announces Third Quarter Results for 2012

Given the overall slowdown in the global market, Software has experienced a reduction in the number of large license deals compared with the prior year. Additionally, revenue was impacted by the continued austerity measures in the public sector globally.

EBIT margin declined versus the prior year principally because of lower licensing revenue, as well as relatively higher R&D investment and marketing spend in the quarter.

Management Services

  3Q 2012   Y-O-Y Change   Change ex Currency
Revenue $221 million (6%) (5%)
EBIT   $ 10 million   (44%)    

Management Services revenue and EBIT margin continue to be impacted by ongoing pricing pressures, lower volumes and account contractions resulting from worldwide economic uncertainty and competitive conditions. However, there continues to be positive net new written business, which, coupled with new strategic partnerships in print outsourcing, are expected to drive revenue growth in the future.

Mail Services

  3Q 2012   Y-O-Y Change   Change ex Currency
Revenue $142 million (1%) (1%)
EBIT   $ 17 million   (53%)    

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