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BETHESDA, Md., April 22 /PRNewswire-FirstCall/ — Lockheed Martin Corporation today reported first quarter 2008 net earnings of $730 million ($1.75 per diluted share), compared to $690 million ($1.60 per diluted share) in 2007. Net sales were $10.0 billion, an 8% increase over first quarter 2007 sales of $9.3 billion. Cash from operations for the first quarter of 2008 was $882 million, compared to $1.5 billion in 2007.
“We are off to an excellent start for 2008. Our first quarter results reflect continued progress on our commitment to build the world’s premier global security company,” said Bob Stevens, Chairman, President and CEO. “We are meeting this goal by building on our core capabilities and continuing to be responsive to customers while delivering greater value to them. This continued success reflects the efforts of our dedicated and talented employees who understand the important challenges facing our customers across the globe.”
Summary Reported Results and Outlook
The following table presents the Corporation’s results for the first quarter of 2008 and 2007, in accordance with generally accepted accounting principles (GAAP):
REPORTED RESULTS 1st Quarter
(In millions, except per share data) 2008 2007

Net sales $9,983 $9,275

Operating profit
Segment operating profit $1,150 $999
Unallocated corporate, net:
FAS/CAS pension adjustment 32 (14)
Unusual items, net 16 46
Stock compensation expense (35) (49)
Other, net 15 3
$1,178 $985

Interest expense 87 93

Other non-operating (expense) /
income, net(1) (7) 37

Earnings before income taxes 1,084 929

Income taxes 354 239

Net earnings $730 $690

Diluted earnings per share $1.75 $1.60

Cash from operations $882 $1,482

(1) Includes interest income and unrealized (losses) gains, net on
marketable securities held to fund certain employee benefit
obligations.

The following table and other sections of this press release contain forward-looking statements, which are based on the Corporation’s current expectations. Actual results may differ materially from those projected. See the “Forward-Looking Statements” discussion contained in this press release.
2008 FINANCIAL OUTLOOK(1) 2008 Projections
(In millions, except per share
data and percentages) Current Update January 2008

Net sales $41,800 - $42,800 $41,800 - $42,800

Operating profit:
Segment operating profit $4,750 - $4,875 $4,715 - $4,840
Unallocated corporate
expense, net:
FAS/CAS pension adjustment 125 125
Unusual items, net 15 –
Stock compensation expense (155) (170)
Other, net (40) (65)

4,695 - 4,820 4,605 - 4,730

Interest expense (360) (345)
Other non-operating income /
(expense), net 45 145
Earnings before income taxes $4,380 - $4,505 $4,405 - $4,530

Diluted earnings per share $7.15 - $7.35 $7.05 - $7.25
Cash from operations >/= $4,200 >/= $4,200
ROIC(2) >/= 19.0% >/= 18.5%

(1) All amounts approximate

(2) See discussion of non-GAAP performance measures at the end of this
document

The majority of the $0.10 increase in the Corporation’s projected 2008 diluted earnings per share results from higher projected segment operating profit in the Space Systems segment.
Other updated projections include:

* an assumption of lower full year average diluted shares outstanding as a
result of share repurchases in the first quarter;

* a reduction in expected stock compensation and other unallocated
corporate expenses;

* the benefit of a $0.02 per share gain recognized on an unusual item
during the first quarter of 2008 (see the discussion below the caption
“Unallocated Corporate Income (Expense), Net” for additional
information);

* a reduction in other non-operating income as a result of lower interest
rates on our invested cash balances and unrealized losses on marketable
securities held to fund certain employee benefit obligations; and

* an increase in interest expense as a result of the $500 million first
quarter debt issuance, described below.

It is the Corporation’s practice not to incorporate adjustments to its outlook for proposed acquisitions, divestitures, joint ventures, or other unusual activities until such transactions have been consummated.
Balanced Cash Deployment Strategy
The Corporation continued to execute its balanced cash deployment strategy during the first quarter as follows:
* repurchased 11.3 million shares at a cost of $1.2 billion;

* paid cash dividends totaling $172 million; and

* made capital expenditures of $104 million.

Additionally, in March 2008, the Corporation issued $500 million of debt due in 2013 with a coupon rate of 4.121%.
Segment Results
The Corporation operates in four principal business segments: Aeronautics; Electronic Systems; Information Systems & Global Services (IS&GS); and Space Systems.
The following table presents the operating results of the four business segments and reconciles these amounts to the Corporation’s consolidated financial results.
(In millions) 1st Quarter
2008 2007
Net sales
Aeronautics $2,807 $2,821
Electronic Systems 2,789 2,515
Information Systems & Global Services 2,504 2,145
Space Systems 1,883 1,794

Total net sales $9,983 $9,275

Operating profit
Aeronautics $323 $299
Electronic Systems 366 317
Information Systems & Global Services 230 198
Space Systems 231 185
Segment operating profit 1,150 999

Unallocated corporate income
(expense), net 28 (14)

Total operating profit $1,178 $985

The following discussion compares the operating results for the first quarter of 2008 to the first quarter of 2007.
Aeronautics

($ millions) 1st Quarter
2008 2007
Net sales $2,807 $2,821
Operating profit $323 $299
Operating margin 11.5% 10.6%

Net sales for Aeronautics were slightly lower for the first quarter of 2008 compared to the first quarter of 2007. The decrease in sales resulted from declines in Combat Aircraft that partially were offset by increases in Air Mobility. The decrease in Combat Aircraft mainly was due to lower volume on F-16 and F-117 programs, which more than offset increased F-22 and F-35 volume. The increase in Air Mobility mainly was due to higher volume on C-130 programs, which more than offset lower volume on the C-5 program.
Segment operating profit increased by 8% for the first quarter of 2008 from the first quarter of 2007. The increase in operating profit primarily was due to higher volume on C-130 programs in Air Mobility and improved performance on F-16 programs in Combat Aircraft.
Electronic Systems

($ millions) 1st Quarter
2008 2007
Net sales $2,789 $2,515
Operating profit $366 $317
Operating margin 13.1% 12.6%

Net sales for Electronic Systems increased by 11% for the first quarter of 2008 from the first quarter of 2007. The increase mainly was due to higher volume on fire control and tactical missile programs at Missiles & Fire Control (M&FC), and in surface systems and radar activities at Maritime Systems & Sensors (MS2).
Operating profit for Electronic Systems increased by 15% for the first quarter of 2008 compared to the first quarter of 2007. The increase primarily was attributable to higher volume and improved performance on fire control and tactical missile programs at M&FC and in surface systems and radar activities at MS2.
Information Systems & Global Services

($ millions) 1st Quarter
2008 2007
Net sales $2,504 $2,145
Operating profit $230 $198
Operating margin 9.2% 9.2%

Net sales for IS&GS increased by 17% for the first quarter of 2008 from the first quarter of 2007. Sales increased in all three of the segment’s lines of business. Mission Solutions’ sales grew due to higher volume on mission and combat support solutions. Information Systems’ sales grew due to higher volume on information technology programs. Growth at Pacific Architects and Engineers contributed to the increase in sales in Global Services.
Operating profit for IS&GS increased by 16% for the first quarter of 2008 compared to the first quarter of 2007. Operating profit increased in Information Systems and Mission Solutions and remained relatively unchanged in Global Services. The increase in Information Systems primarily was due to a benefit from a contract restructuring during the first quarter of 2008. The increase in Mission Solutions mainly was due to the sales growth on mission and combat support solutions.
Space Systems

($ millions) 1st Quarter
2008 2007
Net sales $1,883 $1,794
Operating profit $231 $185
Operating margin 12.3% 10.3%

Net sales for Space Systems increased by 5% for the first quarter of 2008 from the first quarter of 2007. During the quarter, sales growth in Space Transportation partially was offset by declines in Strategic & Defensive Missile Systems (S&DMS) and Satellites. The sales growth in Space Transportation primarily was due to higher volume on the Orion program. S&DMS sales declined mainly due to lower volume in strategic missile programs. In Satellites, reduced volume in government satellite activities partially was offset by an increase in commercial satellite activities. There was one commercial satellite delivery in the first quarter of 2008 and no deliveries during the first quarter of 2007.
Segment operating profit increased by 25% for the first quarter of 2008 compared to the first quarter of 2007. During the quarter, increased operating profit at Space Transportation partially was offset by a decline in Satellites. In Space Transportation, the increase mainly was attributable to higher equity earnings on the United Launch Alliance joint venture and the results from successful negotiations of a terminated commercial launch services contract. In Satellites, the decrease mainly was due to lower volume on government satellite activities.
Unallocated Corporate Income (Expense), Net

($ millions) 1st Quarter
2008 2007
FAS/CAS pension adjustment $32 $(14)
Unusual items, net 16 46
Stock compensation expense (35) (49)
Other, net 15 3
Unallocated corporate
income (expense), net $28 $(14)

Consistent with the manner in which the Corporation’s business segment operating performance is evaluated by senior management, certain items are excluded from the business segment results and included in “Unallocated corporate income (expense), net.” See the Corporation’s 2007 Form 10-K for a description of “Unallocated corporate income (expense), net,” including the FAS/CAS pension adjustment.
The FAS/CAS pension adjustment (calculated as the difference between FAS 87 expense and the CAS cost amounts) switched to an income item in 2008 due to an increase in the discount rate and other factors such as actual return on plan assets. This change is consistent with the Corporation’s previously disclosed assumptions used to compute these amounts.
For purposes of segment reporting, the following unusual items were included in “Unallocated corporate income (expense), net” for the first quarter of 2008 and 2007:
2008 -

* A gain, net of state income taxes, of $16 million representing the
recognition of a portion of the deferred net gain from the 2006 sale of
the Corporation’s ownership interest in Lockheed Khrunichev Energia
International, Inc. (LKEI) and International Launch Services, Inc.,
(ILS). At the time of the sale, the Corporation deferred recognition of
the gain pending the expiration of its responsibility to refund advances
for future launch services. At March 30, 2008, a deferred gain (net of
federal and state taxes) of $57 million remains to be recognized as an
unusual item as future launch services are provided.

This item increased net earnings by $10 million ($0.02 per share) during the first quarter of 2008.
2007 -

* A gain, net of state income taxes, of $25 million related to the sale of
land; and

* Earnings, net of state income taxes, of $21 million related to the
reversal of legal reserves from the settlement of certain litigation
claims.

These items, along with the income tax benefit of $59 million ($0.14 per share) described below, increased net earnings by $89 million ($0.21 per share) during the first quarter of 2007.
Income Taxes
Our effective income tax rates for the first quarter of 2008 and 2007 were 32.7% and 25.7%. These rates were lower than the statutory rate of 35% for both periods due primarily to tax benefits for U.S. manufacturing activities and dividends related to our employee stock ownership plans. The research and development (R&D) credit, which expired December 31, 2007, further reduced the effective tax rate for the first quarter of 2007. Additionally, for the first quarter of 2007, income tax expense was reduced by $59 million ($0.14 per share) due to the completion of an IRS audit, which also reduced the effective tax rate for that quarter by 6.4%.
Headquartered in Bethesda, Md., Lockheed Martin employs approximately 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
Web site:
Conference call: Lockheed Martin will webcast the earnings conference call (listen-only mode) at 11 a.m. E.D.T. on April 22, 2008. A live audio broadcast, including relevant charts, will be available on the Investor Relations page of the company’s web site at: .
FORWARD-LOOKING STATEMENTS
Statements in this release that are “forward-looking statements” are based on Lockheed Martin’s current expectations and assumptions. Forward-looking statements in this release include estimates of future sales, earnings and cash flow. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results could differ materially because of factors such as: the availability of government funding for our products and services both domestically and internationally; changes in government and customer priorities and requirements (including changes to respond to Department of Defense reviews, Congressional actions, budgetary constraints, cost-cutting initiatives, election cycles, terrorist threats and homeland security); the impact of continued military operations in Iraq and Afghanistan on funding for existing defense programs; the award or termination of contracts; return on pension plan assets, interest and discount rates and other changes that may impact pension plan assumptions; difficulties in developing and producing operationally advanced technology systems; the timing and customer acceptance of product deliveries; materials availability and performance by key suppliers, subcontractors and customers; charges from any future impairment reviews that may result in the recognition of losses and a reduction in the book value of goodwill or other long-term assets; the future impact of legislation, changes in accounting, tax rules, or export policies; the future impact of acquisitions or divestitures, joint ventures or teaming arrangements; the outcome of legal proceedings and other contingencies (including lawsuits, government/regulatory investigations or audits, and environmental remediation efforts); the competitive environment for the Corporation’s products and services; and economic, business and political conditions domestically and internationally.
These are only some of the factors that may affect the forward-looking statements contained in this press release. For further information regarding risks and uncertainties associated with Lockheed Martin’s business, please refer to the Corporation’s SEC filings, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”"Risk Factors,” and “Legal Proceedings” sections of the Corporation’s 2007 annual report on Form 10-K, which may be obtained at the Corporation’s website: .
It is the Corporation’s policy to only update or reconfirm its financial projections by issuing a press release. The Corporation generally plans to provide a forward-looking outlook as part of its quarterly earnings release but reserves the right to provide an outlook at different intervals or to revise its practice in future periods. All information in this release is as of April 21, 2008. Lockheed Martin undertakes no duty to update any forward-looking statement to reflect subsequent events, actual results or changes in the Corporation’s expectations. We also disclaim any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
NON-GAAP PERFORMANCE MEASURES
The Corporation believes that reporting ROIC provides investors with greater visibility into how effectively Lockheed Martin uses the capital invested in its operations. The Corporation uses ROIC to evaluate multi-year investment decisions and as a long-term performance measure, and also uses ROIC as a factor in evaluating management performance for incentive compensation purposes. ROIC is not a measure of financial performance under generally accepted accounting principles, and may not be defined and calculated by other companies in the same manner. ROIC should not be considered in isolation or as an alternative to net earnings as an indicator of performance.
The Corporation calculates ROIC as follows:
Net earnings plus after-tax interest expense divided by average invested capital (stockholders’ equity plus debt), after adjusting stockholders’ equity by adding back adjustments related to postretirement benefit plans.
(In millions, except percentages) 2008 Outlook
Current Update January 2008
Net Earnings Combined Combined
Interest Expense (multiplied by 65%) (1)
Return >/= $3,185 >/= $3,185

Average debt (2), (5)
Average equity (3), (5) Combined Combined
Average Benefit Plan Adjustments (4), (5)
Average Invested Capital < / = $16,750 < / = $17,200

Return on invested capital >/= 19.0% >/= 18.5%

(1) Represents after-tax interest expense utilizing the federal statutory
rate of 35%.

(2) Debt consists of long-term debt, including current maturities, and
short-term borrowings (if any).

(3) Equity includes non-cash adjustments, primarily for unrecognized
benefit plan actuarial losses and prior service costs, the adjustment
for the adoption of FAS 158 in 2006 and the additional minimum pension
liability in years prior to 2007.

(4) Average Benefit Plan Adjustments reflect the cumulative value of
entries identified in our Statement of Stockholders’ Equity discussed
in Note 3.

(5) Yearly averages are calculated using balances at the start of the year
and at the end of each quarter.

LOCKHEED MARTIN CORPORATION
Consolidated Condensed Statement of Earnings
Unaudited
(In millions, except per share data and percentages)

QUARTER ENDED

March 30, 2008(a) March 25, 2007(a)
Net sales $9,983 $9,275
Cost of sales 8,914 8,365
1,069 910

Other income and expenses, net 109 75
Operating profit 1,178 985
Interest expense 87 93
Other non-operating income (expense), net (7) 37
Earnings before income taxes 1,084 929
Income tax expense 354 239
Net earnings $730 $690
Effective tax rate 32.7% 25.7%

Earnings per common share:
Basic $1.80 $1.64
Diluted $1.75 $1.60

Average number of shares outstanding:
Basic 406.6 421.4
Diluted 416.8 432.1

Common shares reported in stockholders’
equity at quarter end: 399.7 417.3

(a) It is our practice to close our books and records on the Sunday prior
to the end of the calendar quarter. The interim financial statements
and tables of financial information included herein are labeled based
on that convention.

A

LOCKHEED MARTIN CORPORATION
Net Sales, Segment Operating Profit and Margins
Unaudited
(In millions, except percentages)

QUARTER ENDED

March 30, 2008 March 25, 2007 % Change
Net sales:

Aeronautics $2,807 $2,821 (0%)
Electronic Systems 2,789 2,515 11%
Information Systems & Global
Services 2,504 2,145 17%
Space Systems 1,883 1,794 5%
Total net sales $9,983 $9,275 8%

Operating profit:

Aeronautics $323 $299 8%
Electronic Systems 366 317 15%
Information Systems & Global
Services 230 198 16%
Space Systems 231 185 25%

Segment operating profit 1,150 999 15%

Unallocated corporate income
(expense), net 28 (14)
$1,178 $985 20%

Margins:

Aeronautics 11.5% 10.6%
Electronic Systems 13.1 12.6
Information Systems & Global
Services 9.2 9.2
Space Systems 12.3 10.3

Total operating segments 11.5 10.8

Total consolidated 11.8% 10.6%

B

LOCKHEED MARTIN CORPORATION
Selected Financial Data
Unaudited
(In millions, except per share data)

QUARTER ENDED

March 30, 2008 March 25, 2007
Unallocated corporate income (expense),
net
FAS/CAS pension adjustment $32 $(14)
Unusual items, net 16 46
Stock compensation expense (35) (49)
Other, net 15 3
Unallocated corporate income (expense),
net $28 $(14)

QUARTER ENDED

March 30, 2008 March 25, 2007
FAS/CAS pension adjustment
FAS 87 expense $(116) $(171)
Less: CAS costs (148) (157)
FAS/CAS pension adjustment -
income / (expense) $32 $(14)

QUARTER ENDED MARCH 30, 2008

Operating Earnings
profit Net earnings per share
Unusual Items - 2008
Partial recognition of the deferred
gain from the 2006 sale of LKEI and
ILS $16 $10 $0.02

QUARTER ENDED MARCH 25, 2007

Operating Earnings
profit Net earnings per share
Unusual Items - 2007
Gain on sale of surplus land $25 $16 $0.04
Earnings from reversal of legal
reserves 21 14 0.03
Benefit from closure of an IRS audit - 59 0.14
$46 $89 $0.21

C

LOCKHEED MARTIN CORPORATION
Selected Financial Data
Unaudited
(In millions)

QUARTER ENDED

March 30, 2008 March 25, 2007
Depreciation and amortization of
plant and equipment

Aeronautics $42 $39
Electronic Systems 54 45
Information Systems & Global Services 16 15
Space Systems 36 29
Segments 148 128

Unallocated corporate expense, net 12 13

Total depreciation and amortization $160 $141

QUARTER ENDED

March 30, 2008 March 25,2007
Amortization of purchased intangibles

Aeronautics $13 $13
Electronic Systems 5 11
Information Systems & Global Services 13 15
Space Systems 2 2
Segments 33 41

Unallocated corporate expense, net 3 3

Total amortization of purchased intangibles $36 $44

D

LOCKHEED MARTIN CORPORATION
Consolidated Condensed Balance Sheet
Unaudited
(In millions, except percentages)

MARCH 30, DECEMBER 31,
2008 2007
Assets
Cash and cash equivalents $2,799 $2,648
Short-term investments 148 333
Receivables 5,413 4,925
Inventories 1,619 1,718
Deferred income taxes 732 756
Other current assets 469 560

Total current assets 11,180 10,940

Property, plant and equipment, net 4,258 4,320
Goodwill 9,399 9,387
Purchased intangibles, net 428 463
Prepaid pension asset 317 313
Deferred income taxes 824 760
Other assets 2,743 2,743

Total assets $29,149 $28,926

Liabilities and Stockholders’ Equity
Accounts payable $1,906 $2,163
Customer advances and amounts in excess
of costs incurred 4,258 4,254
Other accrued expenses 3,606 3,350
Current maturities of long-term debt 104 104

Total current liabilities 9,874 9,871

Long-term debt, net 4,803 4,303
Accrued pension liabilities 1,311 1,192
Other postretirement and other noncurrent
liabilities 3,794 3,755
Stockholders’ equity 9,367 9,805

Total liabilities and stockholders’
equity $29,149 $28,926

Total debt-to-capitalization ratio: 34% 31%

E

LOCKHEED MARTIN CORPORATION
Consolidated Condensed Statement of Cash Flows
Unaudited
(In millions)

QUARTER ENDED

March 30, 2008 March 25, 2007

Operating Activities
Net earnings $730 $690
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 160 141
Amortization of purchased intangibles 36 44
Changes in operating assets and
liabilities:
Receivables (483) (281)
Inventories 99 285
Accounts payable (257) (131)
Customer advances and amounts in
excess of costs incurred 4 195
Other 593 539

Net cash provided by operating activities 882 1,482

Investing Activities
Expenditures for property, plant and
equipment (104) (84)
Sale of short-term investments, net 185 85
Acquisitions of businesses /
investments in affiliates (11) (95)
Other 1 79

Net cash provided by (used for) investing
activities 71 (15)

Financing Activities
Issuances of common stock and related amounts 64 149
Repurchases of common stock (1,185) (733)
Common stock dividends (172) -
Issuance of long-term debt and related costs 491 -
Repayments of long-term debt - (17)

Net cash used for financing activities (802) (601)

Net increase in cash and cash equivalents 151 866
Cash and cash equivalents at beginning of
period 2,648 1,912

Cash and cash equivalents at end of period $2,799 $2,778

F

LOCKHEED MARTIN CORPORATION
Consolidated Condensed Statement of Stockholders’ Equity
Unaudited
(In millions)

Accumulated
Additional Other Total
Common Paid-In Retained Comprehensive Stockholders’
Stock Capital Earnings Loss Equity

Balance at
January 1, 2008 $409 $- $11,247 $(1,851) $9,805

Net earnings 730 730

Common stock
dividends (a) (172) (172)

Stock-based awards
and ESOP activity 2 174 176

Repurchases of
common stock (b) (11) (174) (1,000) (1,185)

Other comprehensive
income 13 13

Balance at
March 30, 2008 $400 $- $10,805 $(1,838) $9,367

(a) Includes dividends ($0.42 per share) declared and paid in the first
quarter.

(b) The Corporation repurchased 11.3 million shares of its common stock
for $1.2 billion during the first quarter. The Corporation has
21.4 million shares remaining under its share repurchase program as of
March 30, 2008.

G

LOCKHEED MARTIN CORPORATION
Operating Data
Unaudited
(In millions)

MARCH 30, DECEMBER 31,
2008 2007
Backlog

Aeronautics $25,300 $26,300
Electronic Systems 20,300 21,200
Information Systems & Global Services 12,200 11,800
Space Systems 16,900 17,400
Total $74,700 $76,700

QUARTER ENDED

Aircraft Deliveries March 30, 2008 March 25, 2007

F-16 9 9
C-130J 3 2

H

Lockheed Martin Corporation

CHICAGO, April 22 /PRNewswire-FirstCall/ — uBid.com Holdings, Inc. (BULLETIN BOARD: UBHI) , owner of uBid.com — one of the leading business- to-consumer and business-to-business online auction companies, today announced it is changing its business strategy to focus solely on liquidating excess inventories for top-brand manufacturers. This new direction meets the growing demand among major manufacturers, distributors, and retailers for a streamlined asset recovery solution and builds on the company’s solid foundation, having liquidated more than $2 billion of excess inventory for over 7,000 sellers in the last 10 years.
“The excess inventory problem exists across every vertical. Because no manufacturer, retailer or distributor can predict the future, there are going to be supply-chain inefficiencies and a need for uBid.com Holdings’ services,” said Jeffrey Hoffman, Chief Executive Officer.
Unlike most of its competitors that have a single-channel sales model, uBid.com Holdings will augment its existing auction platform, located at , with an additional four channels to better serve its sellers’ asset-recovery efforts. The additional four sales channels include:
— uBuy — Many online shoppers prefer the instant gratification of a
traditional ecommerce purchase, this new website will offer top brand
name excess inventory at fixed prices.
— uLive — Building on its success helping financial institutions
liquidate the retail facilities of brands such as Appliance Electronics
Depot, Laminate Store International and Hollywood Video with offline
brick and mortar sales, uBid.com Holdings will continue to scale its
facilities liquidation model with a new uLive channel.
— uBiz — To accommodate the large volume transactions commonly
associated with business-to-business sales, uBid.com Holdings has
created the uBiz wholesale/business-to-business channel.
— uSaaS — Using the emerging Software-as-a-Service model, trusted
partners will have the ability to leverage uBid’s technology platform
to conduct both charity-based auctions and private, invite-only
auctions.

“With the uncertain near-term outlook on the economy, uBid.com Holdings is better positioned than ever to take advantage of the growing multi-billion dollar liquidation industry. Our strong relationships with manufacturers, distributors and retailers on the asset recovery side allow us to help them liquidate their excess inventory and to offer today’s price-sensitive consumer great deals on excess inventory from top brands,” said Hoffman. “With this new strategy, we are streamlining our internal processes to better assist our selling partners and we are making significant changes to our product focus.”
In addition to establishing its new sales channels, uBid.com Holdings has made significant changes to the current organization to support its new business model, including:
— The previously announced appointments of new key executives to lead
uBid.com Holdings’ transformation, including a Chief Financial Officer
and three company officers dedicated to enhancing seller partnerships.
— Upgrading and retooling back-end systems and procedures, including the
reorganization of several internal departments.
— Creation of the Risk, Reporting and Analysis Center that will oversee
performance management throughout the company.
— Completing technology enhancements, including a complete software and
information technology upgrade.
— Aligning with key strategic communications and operations partners to
streamline internal processes and communicate the uBid.com Holdings
value proposition to its buyers and sellers.
— Investigating and prioritizing uBid.com Holdings’ growth opportunities,
including new geographic and vertical growth markets.
— A complete re-design of the uBid.com Web site, which is currently
underway and will be unveiled later in 2008.

“All of these changes will position uBid.com Holdings to compete more effectively, grow our business and exceed seller, consumer and shareholder expectations,” added Hoffman.
For more information please visit .

About uBid.com Holdings, Inc.

uBid.com Holdings is the world’s leading excess inventory solutions company that links brand name sellers with customers throughout the United States. uBid.com Holdings does this through its multi-channel asset-recovery solution that includes an online auction platform located at , physical facilities liquidation and a business-to- business selling platform. Brand name sellers are able to reduce excess inventory more efficiently and profitably than ever before. And however they choose to buy, shoppers now have an inside connection to the world’s most trusted brands at prices far below retail. With more than 10 years experience in online commerce, uBid.com Holdings is headquartered in Chicago, IL.
uBid.com Holdings, Inc. is publicly-traded on the NASD OTC bulletin board (UBHI).
Certain statements made in this release are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of uBid.com Holdings, Inc. and the industries and markets in which uBid.com Holdings, Inc. operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect the forward looking statement identified above and uBid.com Holdings, Inc.’s business, financial condition and operating results generally include the effects of adverse changes in the economy, reductions in consumer spending, declines in the financial markets and the industries in which uBid.com Holdings, Inc. and its partners operate, adverse changes affecting the Internet and e-commerce, the ability of uBid.com Holdings, Inc. to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment or extension of its relationships with strategic partners, the ability of uBid.com Holdings, Inc. to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of uBid.com Holdings, Inc. to attract and retain qualified personnel, the ability of uBid.com Holdings, Inc. to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. uBid.com Holdings, Inc. expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise specifically stated by uBid.com Holdings, Inc. Additional information about uBid.com Holdings, Inc. is available in the company’s annual report on Form 10- K filed with the Securities and Exchange Commission.
MEDIA CONTACTS:
uBid.com
Jim Murphy
(773) 272-4537

Cathleen Bleers
(312) 255-3123

uBid.com Holdings, Inc.

LEXINGTON, Ky., April 22 /PRNewswire-FirstCall/ — Lexmark International, Inc. today announced financial results for the first quarter of 2008. First-quarter revenue was $1.18 billion, down 7 percent compared to revenue of $1.26 billion last year. First-quarter GAAP earnings per share were $1.07. Earnings per share for the first quarter of 2008 would have been $1.16 excluding $0.09 per share for restructuring-related activities. First-quarter 2007 GAAP earnings per share were $0.95. Earnings per share for the first quarter of 2007 would have been $0.96 excluding $0.01 per share for restructuring-related activities. First-quarter 2008 GAAP EPS grew 12.5 percent year to year.
“Our first-quarter results reflect the strategic shift that we began in the second half of 2007,” said Paul J. Curlander, Lexmark chairman and chief executive officer. “Although EPS greatly exceeded expectations in the first quarter and we had good cash generation performance, we have more work to do as we continue to implement our strategy to drive our growth in higher-usage segments. A key element in our strategy is the development of industry-leading products and technology, and we made good progress here in the first quarter of 2008 with the introduction of our new Professional Series and Home & Student inkjet product lines, and the ongoing receipt of industry awards, particularly for our inkjet and color laser products.”
First-quarter 2008 business segment revenue was $741 million, up about 1 percent year to year. Consumer segment revenue of $434 million declined 17 percent compared to a year ago. First-quarter 2008 gross profit margin was 37.1 percent, the operating expense-to-revenue ratio was 26.7 percent, the operating income margin was 10.4 percent, and net earnings were $102 million. First-quarter 2008 operating income includes $13 million pretax charges in connection with the company’s restructuring-related actions.
First-quarter 2007 gross profit margin was 33.5 percent, the operating expense-to-revenue ratio was 23.9 percent, the operating income margin was 9.6 percent, and net earnings were $92 million. First-quarter 2007 operating income included $2 million net restructuring-related pretax charges.
On a non-GAAP basis, excluding restructuring-related charges:
— First-quarter 2008 gross profit margin would have been 37.5 percent, up
3.8 percentage points from 33.7 percent in the same period last year,
principally due to a favorable product mix shift.
— First-quarter 2008 operating expense as a percent of revenue would have
been 26.0 percent, up 2.1 percentage points compared to 23.9 percent in
the same quarter last year, principally driven by increased investment
in research and development.
— First-quarter 2008 operating income margin would have been 11.5
percent, up 1.7 percentage points from 9.8 percent last year.
— First-quarter 2008 net earnings would have been $111 million compared
to $94 million in the first quarter of 2007.

The company ended the quarter with $879 million in cash and current marketable securities. First-quarter net cash provided by operating activities was $178 million. Capital expenditures for the quarter were $40 million. Depreciation and amortization in the quarter was $51 million. Lexmark did not repurchase its stock during the first quarter. The company’s remaining share repurchase authorization was approximately $295 million at quarter end.
New Inkjets Target Higher-Usage Customers
The introduction of Lexmark’s new Home & Student inkjet line during the quarter further advances the company’s strategy to increase penetration in higher-usage and higher-growth inkjet market segments. The Home & Student line, with prices ranging from $79 to $129(1), includes two new wireless products and the world’s only all-in-one (AIO) with a front laptop port for quick and easy access by students and busy laptop users without wireless access.
Also during the quarter, Lexmark’s Professional Series inkjet line, with prices ranging from $99 to $249(1), earned three Editor’s Choice awards from Better Buys for Business, a leading independent reviewer of document imaging equipment. The review praised the Wi-Fi printing capabilities of the Lexmark X4875 Wireless AIO, the X6575 Wireless AIO and the X9575 Wireless AIO. Additionally, the X6570 Wireless AIO was named to PC World magazine’s Top 10 Inkjet Multifunction list in January, and the X9575 received a Four-Star, Highly Recommended rating from independent test lab BERTL in April.
Lexmark Continues Award-Winning Push into Key business Market Segments
Lexmark’s efforts to increase its presence in the high-growth color laser printer and color multifunction product (MFP) segments were also advanced during the period with receipt of several awards of excellence from respected testing labs and technology publications. In April, Lexmark’s first entry into the important mid-range color MFP segment, the Lexmark X560n, was awarded a Four-Star, Highly Recommended rating from independent test lab BERTL. In February, PC World magazine named the Lexmark X500n low-end color MFP a Top Five Color Laser Multifunction Printer. The Lexmark C530dn and C780n were additionally named to PC World magazine’s Top 10 Color Laser list.
Better Buys for business has recently recognized Lexmark’s color and monochrome laser printers with a string of accolades. Lexmark’s C935hdn workgroup color laser printer was featured on the cover of its 2008 Color Laser and business Inkjet Printer Guide, in which the Lexmark C530, C532, C782 and C935 families of color laser printers were all honored with Editor’s Choice awards. In January, Lexmark’s E250, E350 and E450 low-end monochrome laser printer families were designated Editor’s Choice winners, and Lexmark’s T640, T642 and T644 workgroup monochrome laser printer families earned the Editor’s Choice distinction for the third consecutive year.
Looking Forward
In the second quarter of 2008, the company expects revenue to be down in the mid-single digit percentage range year over year. It expects second- quarter 2008 GAAP EPS to be in the range of $0.54 to $0.64 per share. Restructuring-related costs and expenses are expected to be approximately $0.11 per share in the second quarter of 2008. Excluding these restructuring- related costs and expenses, non-GAAP EPS are expected to be in the range of $0.65 to $0.75 per share. GAAP EPS in the second quarter of 2007 were $0.67, or $0.65 excluding $0.02 per share net benefit for restructuring-related activities.
Conference Call Today
The company will be hosting a conference call with securities analysts today at 8:30 a.m. (EDT). A live broadcast and a complete replay of this call can be accessed from Lexmark’s investor relations Web site at . If you are unable to connect to the Internet, you can access the call via telephone at 888-693-3477 (outside the U.S. by calling 973-582-2710) or the replay shortly afterward by calling 800-642-1687 (outside the U.S. by calling 706-645-9291) using access code 42452624. This telephone replay of the conference call will be available through Tuesday, April 29, 2008.
Supplemental information slides, including reconciliations between GAAP and non-GAAP financial measures, will be available on Lexmark’s investor relations Web site prior to the live broadcast.
About Lexmark
Lexmark International, Inc. provides businesses and consumers in more than 150 countries with a broad range of printing and imaging products, solutions and services that help them to be more productive. In 2007, Lexmark reported $5.0 billion in revenue. Learn how Lexmark can help you get more done at .
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release which are not historical facts are forward-looking and involve risks and uncertainties, including, but not limited to, weak economic conditions, aggressive pricing from competitors and resellers, inability to be successful in the higher-usage segments of the inkjet market, the financial failure or loss of business with a key customer or reseller including loss of retail shelf placements, disruptions at important points of exit and entry and distribution centers, market acceptance of new products and pricing programs, periodic variations affecting revenue and profitability, the inability to meet customer product requirements on a cost competitive basis, failure to execute planned cost reduction measures, entrance into the market of additional competitors focused on printing solutions, increased investment to support product development and marketing, inability to perform under managed print services contracts, decreased supplies consumption, increased competition in the aftermarket supplies business, failure to successfully outsource the infrastructure support of information technology systems, failure to manage inventory levels or production capacity, unforeseen cost impacts as a result of new legislation, fees on the company’s products or litigation costs required to protect the company’s rights, inability to obtain and protect the company’s intellectual property and defend against claims of infringement and/or anticompetitive conduct, reliance on international production facilities, manufacturing partners and certain key suppliers, changes in a country’s political or economic conditions, conflicts among sales channels, the failure of information technology systems, changes in the company’s tax provisions or tax liabilities, business disruptions, currency fluctuations, terrorist acts, acts of war or other political conflicts, or the outbreak of a communicable disease, and other risks described in the company’s Securities and Exchange Commission filings. The company undertakes no obligation to update any forward-looking statement.
Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries. All other trademarks are the property of their respective owners.
All prices, features, specifications and capabilities are subject to change without notice.
(1) All prices are estimated street prices in U.S. dollars - actual prices
may vary.

LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In Millions, Except Per Share Amounts)
(Unaudited)

Three Months Ended
March 31
2008 2007
Revenue $1,175.1 $1,260.6
Cost of revenue (1) (2) 739.6 837.8
Gross profit 435.5 422.8

Research and development 105.5 99.9
Selling, general and administrative (1) (2) 209.0 201.8
Restructuring and related (reversals)
charges (1) (1.3) -
Operating expense 313.2 301.7

Operating income 122.3 121.1

Interest (income) expense, net (7.5) (4.4)
Other expense (income), net 1.4 1.2

Earnings before income taxes 128.4 124.3

Provision for income taxes (3) 26.7 31.9
Net earnings $101.7 $92.4

Net earnings per share:
Basic $1.07 $0.96
Diluted $1.07 $0.95

Shares used in per share calculation:
Basic 95.2 96.5
Diluted 95.4 97.5

(1) Amounts for the three months ended March 31, 2008, include total
restructuring-related charges and project costs of $12.6 million with
$5.3 million and $8.6 million included in Cost of revenue and
Selling, general and administrative, respectively, partially offset
by the ($1.3) million reversal in Restructuring and related
(reversals) charges.

(2) Amounts for the three months ended March 31, 2007, included
restructuring-related project costs of $5.7 million and a $3.5
million gain on the sale of the Company’s Scotland facility. Of the
net $2.2 million of project costs incurred, $1.6 million and $0.6
million were included in Cost of revenue and Selling, general and
administrative, respectively.

(3) Amount for the three months ended March 31, 2008, includes a $6.7
million benefit from the reversal of previously accrued taxes
primarily due to the settlement of a tax audit.

LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
(In Millions)
(Unaudited)

March 31 December 31
2008 2007
ASSETS

Current assets:
Cash and cash equivalents $329.9 $277.0
Marketable securities 549.2 519.1
Trade receivables, net 516.2 578.8
Inventories 433.0 464.4
Prepaid expenses and other current assets 246.2 227.5
Total current assets 2,074.5 2,066.8

Property, plant and equipment, net 875.5 869.0
Marketable securities 59.4 -
Other assets 188.9 185.3
Total assets $3,198.3 $3,121.1

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Current portion of long-term debt $150.0 $149.9
Accounts payable 567.1 636.9
Accrued liabilities 726.4 710.5
Total current liabilities 1,443.5 1,497.3

Other liabilities 350.4 345.5
Total liabilities 1,793.9 1,842.8

Stockholders’ equity:
Common stock and capital in excess of par 903.8 888.9
Retained earnings 1,037.4 935.7
Treasury stock, net (454.7) (454.7)
Accumulated other comprehensive loss (82.1) (91.6)
Total stockholders’ equity 1,404.4 1,278.3
Total liabilities and stockholders’ equity $3,198.3 $3,121.1

LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)

Earnings Per Share: 1Q08 1Q07
GAAP $1.07 $0.95
Restructuring-related charges
& project costs 0.09 0.01
Non-GAAP $1.16 $0.96

Operating
Expense-to- Operating
1Q08: Gross Profit Revenue Income
Margin Ratio Margin
GAAP 37.1% 26.7% 10.4%
Restructuring-related charges &
project costs 0.4% (0.7%) 1.1%
Non-GAAP 37.5% 26.0% 11.5%

1Q07:
GAAP 33.5% 23.9% 9.6%
Restructuring-related charges &
project costs 0.2% - 0.2%
Non-GAAP 33.7% 23.9% 9.8%

Net Earnings (In Millions) 1Q08 1Q07
GAAP $102 $92
Restructuring-related charges &
project costs 9 2
Non-GAAP $111 $94

Earnings Per Share
Guidance: 2Q08 2Q07
GAAP $0.54 to $0.64 $0.67
Restructuring-related charges &
project costs 0.11 (0.02)
Non-GAAP $0.65 to $0.75 $0.65

Note: Management believes that presenting these measures is useful
because they enhance shareholders’ understanding of how management
assesses the performance of the Company’s businesses. Management
reviews the performance of the Company’s operating segments based
on GAAP and non-GAAP measures which reflect income and expense
items which are recurring in nature, and do not include the impact
of actions that management believes are not reflective of the
ongoing operation of the Company. These measures may not be
comparable to similar measures of other companies as not all
companies calculate these measures in the same manner.

Totals may not foot due to rounding.

Lexmark International, Inc.

LONDON, April 29 /PRNewswire/ —

- UK B2B Publisher Develops Lead Generation 2.0

Incisive Media, a leading B2B information provider, today announced the
global launch of IThound.com (http://www.ithound.com/ithound/home), marking a
radical advance in its lead generation strategy developed following its
partnership with KnowledgeStorm.

IThound.com provides B2B IT decision makers, procurement heads and
research analysts with the UK’s definitive online search resource and
information portal for technology and financial solutions and services. In
turn clients receive real time leads from IT professionals researching and
comparing the hosted technology solutions.

Incisive Media’s new bespoke platform gives business professionals
immediate and comprehensive access to the information they need on leading
software, hardware and IT service solutions. It is able to leverage an online
audience of more than 4.4 million monthly business professionals visiting its
network of flagship technology and finance websites including VNUnet.com,
Computing.co.uk, AccountancyAge.com and TheInquirer.net.

“IThound.com represents a significant investment by Incisive Media to
consolidate our position in the UK lead generation market” said James
Hanbury, Chief Executive, UK and Asia. “This move builds upon our experience
in the response marketing sector through our previous partnership with
KnowledgeStorm, The ability to target a wider range of sectors offers
opportunities for significant growth and allows more of our customers to take
advantage of what really is a next generation service.”
The in-house developed platform has been designed to provide the most
effective lead generation solution while delivering the best possible
end-to-end experience for both users and clients. Its search capabilities
allow users to query an information-rich repository of white papers, product
data and analysis provided by carefully vetted vendors. This enables users of
the service to research and compare solutions so they can make better
informed buying decisions whilst benefiting from enhanced search options and
usability.

“The feedback we received from the user testing of IThound.com’s new
research library has confirmed that the decision to develop our own lead
generation solution and build on 18 months experience of this market was the
right one”, said Matthew Smith, Head of IThound.com at Incisive Media. “We
are looking to today’s launch of IThound.com to provide our clients with the
most effective lead response platform for targeting business and technology
buyers.”
IT product and services vendors including IBM, Cisco, Computer Associates
and MessageLabs use the IThound.com campaign delivery reporting and highly
targeted web lead tracking capabilities to generate sales leads. The Incisive
Media network now enables customers to target a wider range of professionals
across verticals including IT, finance and accountancy. The extensive
audience in combination with a re-engineered search functionality
dramatically improves a vendors’ ability to target identified buyers with
product and services information that is relevant to them, at the time they
need it.

“Over the past 4 years we have refined our expertise in delivering online
lead-generation by delivering simple, effective solutions for our clients.
Our track record operating the leading solution currently available in the
market, supported by the UK’s largest IT Pro online network, gives us
unparalleled knowledge and insight into what the market needs and our
customers want” said John Barnes, Incisive Media’s Managing Director of
Digital Strategy and Development. “IThound.com represents the culmination of
that process and is concrete evidence of the importance of lead generation as
a core revenue stream for Incisive Media wider portfolio of brands and
sectors over the next five years.”
About Incisive Media

Incisive Media is one of the world’s fastest growing B2B information
providers, serving the financial and professional services markets globally.
Bringing product provider and purchaser business communities together in
print, in person or online, Incisive Media has an unquestioned reputation for
delivering high quality, timely information in whatever format best suits our
customers. With an unrivalled passion for the products they produce, over
2,000 staff in 27 offices across 3 continents provide an ever increasing
range of valuable marketing opportunities, enabling the professional
communities we serve to do more and better business.

The business operates across the main areas of financial services, with
leading brands in the financial, legal, accountancy and IT sectors.

Central to our business model is a truly platform-neutral approach to
media communication. This enables audiences to communicate through print in
magazines, newsletters, books or directories, face-to-face at events,
exhibitions or conferences and online through websites, videocasts and
business TV channels.

For more information, contact:

Stephen Orr, AxiCom UK (for Incisive Media)
Tel: 44(0)20-8392-4056, Email: stephen.orr@axicom.com

Matthew Smith, Publisher, Incisive Response
Tel: 44(0)20-73169130 Email: matthew.smith@incisivemedia.com

Incisive Media Plc

LONDON, April 22 /PRNewswire/ — Ten years ago, Virgin Books published Losing My Virginity, a massive international bestseller which has sold over two million copies worldwide and has been translated into 21 languages. Virgin are delighted to now announce business Stripped Bare: Adventures of a Global Entrepreneur, a major new book from Sir Richard Branson for publication this September.
Sir Richard Branson is a unique global figure. He is one of the most celebrated men of our time, with a truly international presence, and Virgin is one of the world’s most recognised and trusted business brands.
In business Stripped Bare Branson reveals for the very first time the secrets of his success. With trademark humour and candour, he shares his experience of almost every industry and sector, providing invaluable business advice for everyone, whether starting out or running a large multinational. The book will draw on never-before-seen diary and notebook entries from Branson’s massive archive, which spans more than forty years in business.
Richard Cable, Chairman of Virgin Books, comments: ‘Sir Richard is a hugely inspirational figure. In business Stripped Bare we get to see what makes him tick. Like Losing My Virginity this is a book destined to be read and enjoyed by everyone whether directly involved in business or not.’
Sir Richard Branson comments: ‘What I’ve found is that there is no single prescription for running a successful and intrepid company. There are a lot of ways of doing it. My views have been formed over more than forty years in the white heat of daily unfolding business life and, for the first time, I’m going to share some of the gems.’
Business Stripped Bare: Adventures of a Global Entrepreneur will be published worldwide in September 2008 accompanied by a major national press serialisation. Sir Richard Branson will promote in the UK and the US on publication. The book is the first in a five-book deal for Virgin, who hold all rights.
Notes to editors:
The Random House Group acquired a 90% share of Virgin Books in March 2007. The Virgin Group retains a 10% stake in the company.
For further details please contact:
Clare Pierotti, Publicity Director, Virgin Books
Direct tel: 44-20-7386-3328
Mobile: 44-7825-797057
Email:
Virgin Books Ltd

WASHINGTON, April 21 /PRNewswire/ — The J Street Companies, one of the Washington area’s leading commercial and residential real estate companies through affiliates Randall Hagner and J Street Development, have reached a merger agreement in principle with the Woodmark Companies, a highly respected commercial real estate firm offering specialized expertise in property management, leasing, and investment services.
Woodmark was founded in 1995 by principals Edwin Beanblossom and Stan Ferenc. Over the last ten years, Woodmark has completed approximately 550 transactions with an aggregate value of more than $870 million, including 2.6 million square feet of leases and over 700,000 square feet of sales. The company manages a portfolio of 4.3 million square feet in Washington, D.C., close-in Northern Virginia, Baltimore, Maryland and Dallas, Texas. Ranked consistently by the Washington business Journal in the Top 25 Commercial Real Estate Leasing and Property Management Companies in the Washington, D.C. Metro Area, the firm has earned the business of major owners including Kondobo, RREEF Funds, Starwood Capital Group, The Bernstein Companies, Royal Dutch Shell and tenants like Washington Gas, Battelle Memorial Institute and Reading is Fundamental.
J Street Companies Chairman, Bruce Baschuk, commented on the merger, stating, “The Woodmark merger demonstrates J Street’s plan to grow and become a regional leader in residential and commercial real estate. For us, Woodmark adds an outstanding commercial Class A managed portfolio and augments our brokerage business. Beyond the obvious fit of the company’s business lines, there is great synergy with our leaders, a meeting of the minds on culture and integrity and great determination to bring our customers the best services in the region.”
Woodmark Companies Principal, Geoff Kieffer, said, “The principals of both companies have known and admired each other for 25 years and this merger is, in many ways, a natural evolution of two companies intent on becoming the best at what they do and finding innovative ways to do that.” Mr. Kieffer continued, “This merger gives Woodmark the opportunity to participate in a diversified business model, with residential and development service lines.”
J Street’s announcement today follows a year of growth following the acquisition, slightly over a year ago, of Randall Hagner. In August, veteran commercial services leader and former President and CEO of GVA Advantis, Petch Gibbons, took the helm of Randall Hagner as President. In 2007, despite challenging economic conditions in both commercial and residential markets, Mr. Gibbons guided the company to success in a number of areas including the recruitment of additional senior and highly experienced brokers from major local real estate firms in the areas of commercial leasing and sales in both the downtown Washington, D.C. and Northern Virginia offices.
Mr. Gibbons commented, “I was extraordinarily proud last summer to take the helm of a 104-year old company with such incredible enthusiasm, talent and local knowledge. Taking that business and those professionals forward under the Woodmark banner — a company with an enviable track record in its own right — is an incredible opportunity for all of us. We firmly believe that with this exceptional commercial services platform, we will be able to provide the very best to our clients.”
Going forward, the extensive Randall Hagner commercial service lines will operate under the Woodmark banner so that the J Street Companies will now be known through three highly-regarded and branded companies: Randall Hagner Residential, J Street Development and Woodmark for all commercial leasing, sales and property management business.
About The J Street Companies
The J Street Companies, through affiliated companies Randall Hagner, J Street Development and now, Woodmark Companies, offer a complete array of real estate services including commercial sales and leasing, residential sales, property management, development, project management and capital markets.
J Street Companies

CAMBRIDGE, England, April 29 /PRNewswire-FirstCall/ — ARM Holdings plc [; ] announces its unaudited financial results for the first quarter ended 31 March 2008
Highlights(US GAAP unless otherwise stated)

- Q1 dollar revenues at $134.3m, up 4% year-on-year
- Processor Division (PD) total revenue at $91.1m, up 11% year-on-year
- PD royalty revenue at $54.8m, up 22% year-on-year
- 889 million units shipped

- Physical IP Division (PIPD) total revenue at $20.9m, up 7%
sequentially
- PIPD underlying royalty revenue up 20% year-on-year

- Group backlog flat quarter-on-quarter, remaining at record high
- Normalised PBT and EPS at GBP21.3m (US GAAP GBP12.2m) and 1.17p (US
GAAP 0.69p) respectively

- Net cash of GBP55m at end Q1
- GBP13m spent on share buybacks in Q1
- Normalised cash generation of GBP14m in Q1

- FY 2008 guidance unchanged

Commenting on the results, Warren East, Chief Executive Officer, said:

“ARM has made an encouraging start to 2008. Our Q1 results demonstrate robust operational execution, with sequential revenue growth in PIPD and continued strong demand for our Cortex(R) family of microprocessors with a further seven licenses being signed in the quarter. Growth in underlying royalty revenues in both PD and PIPD of more than 20% year-on-year provides further evidence of the increasing use of ARM’s technology in the rapidly broadening range of consumer electronics products.”
Q1 2008 - Revenue Analysis

Revenue ($M)*** Revenue (GBPM)

Q1 2008 Q1 2007 % Change Q1 2008 Q1 2007 % Change

PD
Licensing 36.3 37.4 -3% 18.3 19.4 -6%
Royalties 54.8 45.0 22% 27.8 23.0 21%
Total PD 91.1 82.4 11% 46.1 42.4 9%

PIPD
Licensing 11.8 16.9 -30% 5.9 8.7 -32%
Royalties 9.1(1) 8.4(1) 9% 4.7(1) 4.3(1) 9%
Total PIPD 20.9 25.3 -17% 10.6 13.0 -18%
Development Systems 14.2 13.5 5% 7.1 6.9 3%
Services 8.1 8.0 2% 4.1 4.2 -3%
Total Revenue 134.3 129.2 4% 67.9 66.5 2%

(1) Includes catch-up royalties in Q1 2008 of $0.8m (GBP0.4m) and in Q1
2007 of $1.5m (GBP0.8m).

Q1 2008 - Financial Summary

Normalised* US GAAP

GBPM Q1 2008 Q1 2007 % Change Q1 2008 Q1 2007

Revenue 67.9(1) 66.5 2% 67.9 66.5
Income before income tax 21.3 21.6 -1% 12.2 12.7
Operating margin 30.6% 30.3% 17.2% 16.9%
Earnings per share (pence) 1.17 1.14 3% 0.69 0.70
Net cash generation** 13.7 15.6
Effective fx rate ($/GBP) 1.98 1.94

(1) Equivalent to GBP69.1m at Q1 2007 effective $/GBP rate

Current trading and prospects

ARM has made an encouraging start to 2008 with sequential revenue growth in PIPD and positive momentum in both PD and PIPD royalty revenues.
We remain cautious in the short term given the uncertainty in both the semiconductor industry and the wider macroeconomic environment. Against this backdrop and given the potential impact of industry seasonality on royalty revenues, total dollar revenues in Q2 are unlikely to be higher than Q1. However, consistent with our guidance in February, assuming no marked deterioration in the trading environment, we continue to expect to increase dollar revenues in FY 2008 by at least the growth rate achieved in 2007.
* Normalised figures are based on US GAAP, adjusted for
acquisition-related, share-based remuneration and restructuring charges.
For reconciliation of GAAP measures to normalised non-GAAP measures
detailed in this document, see notes 6.1 to 6.21.

** Before dividends and share buybacks, net cash flows from
share option exercises and acquisition consideration - see notes 6.12 to
6.15.

*** Dollar revenues are based on the group’s actual dollar
invoicing, where applicable, and using the rate of exchange applicable on
the date of the transaction for invoicing in currencies other than
dollars. Approximately 95% of invoicing is in dollars.

**** Each American Depositary Share (ADS) represents three
shares.

Financial review
(US GAAP unless otherwise stated)
Total revenues

Total dollar revenues in Q1 2008 were $134.3 million, up 4% versus Q1 2007. Sterling revenues of GBP67.9 million were up 2% year-on-year after a 2% weakening of the dollar against sterling (ARM’s effective rate of $1.98 in Q1 2008 compared to $1.94 in Q1 2007). At the Q1 2007 effective rate, Q1 2008 sterling revenues would have been GBP69.1 million.
License revenues
Total dollar license revenues in Q1 2008 fell by 12% to $48.1 million, representing 36% of group revenues, compared to $54.3 million in Q1 2007. License revenues comprised $36.3 million from PD and $11.8 million from PIPD.
Royalty revenues
Total dollar royalty revenues in Q1 2008 grew by 20% to $63.9 million, representing 47% of group revenues, compared to $53.4 million in Q1 2007. Royalty revenues comprised $54.8 million from PD and $9.1 million from PIPD.
Against the backdrop of growth in more sophisticated mobile phones, underlying PD royalties grew 12% sequentially and 22% compared to Q1 2007.
Total PIPD royalties grew 9% to $9.1 million including $0.8 million of catch-up royalties. Underlying royalties were up by 20% year-on-year.
Development Systems and Service revenues
Sales of development systems in Q1 2008 were $14.2 million, representing 11% of group revenues, compared to $13.5 million in Q1 2007. Service revenues in Q1 2008 were $8.1 million, representing 6% of group revenues, compared to $8.0 million in Q1 2007.
Gross margins
Gross margins in Q1 2008, excluding the FAS123(R) charge of GBP0.3 million (see below), were 88.8% compared to 89.4% in Q4 2007 and 89.5% in Q1 2007. The lower gross margin in Q1 2008 is due primarily to the higher revenue contribution from technology which includes payments to collaborative partners recorded as a cost of sale.
Operating expenses and operating margin
Total operating expenses in Q1 2008 were GBP48.4 million (Q1 2007: GBP48.0 million) including amortisation of intangible assets and other acquisition-related charges of GBP4.5 million (Q1 2007: GBP5.1 million), GBP3.6 million (Q1 2007: GBP3.6 million) in relation to the fair value of share-based remuneration and related payroll taxes and restructuring charges of GBP0.7 million (Q1 2007: nil). Total share-based remuneration and related payroll tax charges of GBP3.9 million in Q1 2008 were included within cost of revenues (GBP0.3 million), research and development (GBP2.6 million), sales and marketing (GBP0.5 million) and general and administrative (GBP0.5 million). Normalised income statements for Q1 2008 and Q1 2007 are included in notes 6.20 and 6.21 below which reconcile US GAAP to the normalised non-GAAP measures referred to in this earnings release.
Operating expenses (excluding acquisition-related, share-based remuneration and restructuring charges) in Q1 2008 were GBP39.5 million compared to GBP39.3 million in Q1 2007 and GBP37.2 million in Q4 2007. The sequential increase in operating expenses from Q4 2007 to Q1 2008 is due primarily to salary inflation effective from the beginning of the year, the quarterly phasing profile of certain vacation pay and sabbatical accruals and a negative quarter-on-quarter foreign exchange impact on opex. Cost management remains a key focus with opex in the remaining quarters of 2008 expected to be lower than the Q1 level, subject to the potential negative impact on opex arising from movements in exchange rates.
Normalised research and development expenses were GBP16.3 million in Q1 2008, representing 24% of revenues, compared to GBP15.1 million in Q4 2007 and GBP16.6 million in Q1 2007. Normalised sales and marketing costs in Q1 2008 were GBP11.0 million, being 16% of revenues, compared to GBP11.1 million in Q4 2007 and GBP11.1 million in Q1 2007. Normalised general and administrative expenses in Q1 2008 were GBP12.2 million, representing 18% of revenues, compared to GBP11.1 million in Q4 2007 and GBP11.6 million in Q1 2007.
Normalised operating margin in Q1 2008 was 30.6% (6.1) compared to 31.5% (6.2) in Q4 2007 and 30.3% (6.3) in Q1 2007.Operating margins in Q1 2008 were slightly ahead of Q1 2007 despite the weakening of the US dollar against sterling.
Earnings and taxation
Income before income tax in Q1 2008 was GBP12.2 million compared to GBP12.7 million in Q1 2007. After adjusting for acquisition-related, share-based remuneration and restructuring charges, normalised income before income tax in Q1 2008 was GBP21.3 million (6.5) compared to GBP21.6 million (6.7) in Q1 2007. The group’s effective tax rate under US GAAP in Q1 2008 was 27% (Q1 2007: 25%) reflecting the availability of research and development tax credits and a reduction in the benefits arising from the structuring of the Artisan(R) acquisition.
In Q1 2008, fully diluted earnings per share prepared under US GAAP were 0.7 pence (4.1 cents per ADS****) compared to earnings per share of 0.7 pence (4.1 cents per ADS****) in Q1 2007. Normalised fully diluted earnings per share in Q1 2008 were 1.17 pence (6.16) per share (7.0 cents per ADS****) compared to 1.14 pence (6.18) (6.7 cents per ADS****) in Q1 2007.
Balance sheet
Intangible assets at 31 March 2008 were GBP380.4 million, comprising goodwill of GBP345.2 million and other intangible assets of GBP35.2 million, compared to GBP344.7 million and GBP39.4 million respectively at 31 December 2007.
Total accounts receivable were GBP72.0 million at 31 March 2008, comprising GBP53.9 million of trade receivables and GBP18.1 million of amounts recoverable on contracts, compared to GBP68.2 million at 31 December 2007, comprising GBP43.7 million of trade receivables and GBP24.5 million of amounts recoverable on contracts. Days sales outstanding (DSOs) were 52 at 31 March 2008 compared to 49 at 31 December 2007 and 41 at 31 March 2007. Having been temporarily higher at the end of Q1 2008, DSOs are now back to more typical levels following strong cash receipts in April.
Cash flow and share buyback programme
Net cash at 31 March 2008 was GBP55.2 million (6.9) compared to GBP51.3 million (6.10) at 31 December 2007. Normalised free cash flow in Q1 2008 was GBP13.7 million (6.12).
During the quarter, GBP13.0 million of cash was returned to shareholders through the purchase of 15 million shares. It is anticipated that the buyback programme will resume after the announcement of these results.
Operating review
Backlog

Group order backlog at the end of Q1 2008 remained at the record high level that was achieved in Q4 2007 and was up more than 20% on the level at the end of Q1 2007.
PD licensing
Fifteen processor licenses were signed in Q1 across the entire range of processor technology. Seven Cortex licenses were signed, including one further license for our newest microprocessor, the Cortex-A9 core. Interest in ARM’s 3D Mali(TM) graphics technology continued to develop, with Broadcom taking a license in the quarter, further demonstrating ARM’s success in selling specialist processor technologies beyond the traditional ARM(R) microprocessors.
Q1 2008 PD Licensing Analysis - 542 cumulative processor licenses

Multi-use Term Per-use Cumulative
U D N U D N U D N Total Total
ARM7 1 1 154
ARM9 1 1 1 1 4 243
ARM11 1 1 65
Cortex-M3 1 2 1 4 18
Cortex-R4 1 1 11
Cortex-A8 1 1 10
Cortex-A9 1 1 5
Mali 1 1 6
Other 1 1 30
Total 15 542

U:Upgrade D:Derivative N:New

PD royalties

PD unit shipments grew strongly in Q4 2007 (our partners report royalties one quarter in arrears) buoyed by growth in smartphones, audio players and other consumer electronics. Reported processor unit shipments were 889 million, up 7% sequentially and up 23% compared to Q1 2007. The ARM11(TM) family achieved 80% sequential growth and now represents approximately 3% of all units shipped. Shipments of new Cortex-based devices gathered pace with more than a quarter of a million units being shipped in a quarter for the first time. The ARM7(TM) and ARM9(TM) families now represent 57% and 40% of total shipments respectively. Not only does this demonstrate the longevity of ARM technology but it also underscores the material additional value to be derived from the significant license sales of ARM11 and later technology that have already been made.
The proportion of total units shipped in mobile devices grew to 70%, up from 67% in the previous quarter. The cause of this shift was a significant increase in the proportion of smartphones shipped during the Christmas season which contain more ARM technology per phone than less feature-rich devices. For the quarter, an ARM technology-based mobile phone contained an average of 1.7 ARM microprocessors. As smartphones typically use more sophisticated semiconductor devices with higher average selling prices per chip and as ARM’s royalties are typically based on a percentage of the selling price of the semiconductor chip, the overall average royalty per ARM microprocessor increased from 5.9c in Q4 2007 to 6.2c in Q1 2008.
In Q1 2008, shipments in ARM-based chips in embedded devices continued to grow compared to the previous quarter. Microcontrollers continued to grow, up 55% compared with Q1 2007, and ARM powered smartcards, used in secure identity cards, credit cards and SIM cards grew 25% sequentially to 30m units. The contribution from units shipped in home and enterprise was flat with growth in units shipped in digital TV being offset by falls in digital still cameras.
PIPD licensing
PIPD license revenue increased sequentially to $11.8 million in Q1 from $10.8 million in Q4 2007. Thirteen physical IP licenses were signed in the quarter for products across the technology portfolio, including two further licenses with top ten semiconductor companies. The attractiveness of ARM’s combined processor and physical IP offer was illustrated again in Q1 with additional business being signed which included technology from both divisions.
In February, we described how the PIPD business is transitioning from the technology catch-up phase which has been a key strategic focus since the acquisition of Artisan, to a more business-as-usual state for the development of leading-edge technology. In order to facilitate this transition, a reorganization of the business was undertaken in Q1 which included the creation of dedicated design centres to align better the skill sets of each centre with the challenges of customer centric development of leading-edge technology. This alignment included the elimination of 30 positions from our US operation in the quarter resulting in a restructuring charge of GBP0.7 million.
Also in Q1, we have strengthened PIPD’s ability to capitalise on the longer-term growth opportunity by investing both in key engineering and commercial management and in the infrastructure to improve internal processes to drive increased productivity and improved product delivery to customers. We have increased the breadth of our product offering through the addition of products available via our web channel and achieved significant milestones in the delivery of advanced technology to tier-1 customers.
Q1 2008 PIPD Licensing Analysis - 363 cumulative physical IP licenses

Process Node
(nm) Total
Platform Licenses
Metro 180/130 2
Advantage 65 1

Standard Cell Libraries
Advantage 65/90 3
Metro 180 1

Memory Compilers
Advantage 90 1
Velocity PHYs 90/65 5
Quarter Total 13
Cumulative Total 363

PIPD royalties

PIPD royalties in Q1 2008 were $9.1 million, up 4% from $8.7 million in Q4 2007 and up 9% from $8.4 million in Q1 2007. Underlying royalties for PIPD were $8.3 million up 20% year-on-year. Sequentially, underlying royalties were broadly flat, representing market share gains given the 2.3% decline (source - Gartner Dataquest, January 2008) in foundry utilization rates during the corresponding period.
People
At 31 March 2008, ARM had 1,707 full-time employees, a net reduction of 21 since the year end, following the restructuring activities in PIPD in the first quarter. At the end of Q1, the group had 659 employees based in the UK, 494 in the US, 188 in Continental Europe, 293 in India and 73 in the Asia Pacific region.
Change to ARM’s NASDAQ ticker
On 14 April 2008, ARM American Depositary Receipts (ADR) started trading on NASDAQ under the new ticker symbol “ARMH”. This change makes ARM ADRs compatible with the new NASDAQ platform and better aligns ARM with other leading NASDAQ semiconductor companies such as BRCM, INTC, MRVL and QCOM. The 3:1 ratio between ARM ordinary shares and an American Depositary Share (ADS) remains unchanged.
Legal matters
ARM is currently involved in ongoing litigation proceedings with Technology Properties Limited, Inc. Details are set out in the 2007 Annual Report on Form 20-F filed with the Securities and Exchange Commission on 7 April 2008. Based on independent legal advice, ARM does not expect any significant liability to arise in respect of these proceedings.
ARM had been involved in ongoing litigation proceedings with Nazomi Communications, Inc. The litigation has now been concluded with a ruling granted in ARM’s favour.
ARM Holdings plc

First Quarter Results - US GAAP

Quarter Quarter
ended ended
31 March 31 March
2008 2007
Unaudited Unaudited
GBP’000 GBP’000
Revenues
Product revenues 63,817 62,300
Service revenues 4,071 4,192
Total revenues 67,888 66,492

Cost of revenues
Product costs (5,800) (5,638)
Service costs (2,040) (1,590)
Total cost of revenues (7,840) (7,228)

Gross profit 60,048 59,264

Research and development (18,966) (18,997)
Sales and marketing (11,554) (11,906)
General and administrative (12,702) (12,462)
Restructuring costs (718) -
Amortization of intangibles
purchased through (4,430) (4,655)
business combination
Total operating expenses (48,370) (48,020)

Income from operations 11,678 11,244
Interest, net 571 1,457

Income before income tax 12,249 12,701
Provision for income taxes (3,307) (3,124)

Net income 8,942 9,577

Earnings per share (assuming
dilution)
Shares outstanding (’000) 1,301,123 1,377,589
Earnings per share - pence 0.7 0.7
Earnings per ADS (assuming
dilution)
ADSs outstanding (’000) 433,708 459,196
Earnings per ADS - cents 4.1 4.1

ARM Holdings plc

Consolidated balance sheet - US GAAP

31 March 31 December
2008 2007
Unaudited Audited
GBP’000 GBP’000
Assets
Current assets:
Cash and cash equivalents 55,191 49,509
Short-term investments 36 232
Marketable securities - 1,582
Accounts receivable, net of allowance of
GBP1,528,000 in 2008 and GBP1,504,000 in 2007 72,018 68,232
Inventory: finished goods 2,112 2,339
Income taxes receivable 7,492 6,552
Prepaid expenses and other assets 15,578 13,089
Investments - 1,180
Total current assets 152,427 142,715

Deferred income taxes 11,139 11,309
Prepaid expenses and other assets 2,492 2,860
Property and equipment, net 11,224 12,042
Goodwill 345,192 344,663
Other intangible assets 35,188 39,375
Investments 3,701 3,701
Total assets 561,363 556,665

Liabilities and shareholders’ equity
Accounts payable 2,468 2,230
Income taxes payable 8,306 3,704
Personnel taxes 1,777 1,751
Accrued liabilities 20,837 25,670
Deferred revenue 28,282 27,543
Total current liabilities 61,670 60,898

Deferred income taxes 1,346 2,027
Total liabilities 63,016 62,925

Shareholders’ equity
Ordinary shares 672 672
Additional paid-in capital 371,876 367,680
Treasury stock, at cost (91,463) (90,000)
Retained earnings 234,494 234,455
Accumulated other comprehensive income:
Unrealized holding loss on available-for-sale
securities, net of tax of GBPnil (2007: GBP85,000)
(68) (214)
Cumulative translation adjustment (17,164) (18,853)
Total shareholders’ equity 498,347 493,740

Total liabilities and shareholders’ equity 561,363 556,665

Notes to the Financial Information
(1) Basis of preparation
US GAAP

The financial information prepared in accordance with the Company’s US GAAP accounting policies comprises the consolidated balance sheets as of 31 March 2008 and 31 December 2007 and related income statements for the periods then ended, together with related notes. In preparing this financial information management has used the principal accounting policies as set out in the Company’s annual financial statements and Form 20-F for the year ended 31 December 2007.
(2) Share-based remuneration charges and acquisition-related expenses
Included within the US GAAP income statement for the quarter ended 31 March 2008 are share-based remuneration charges of GBP3.6 million: GBP0.2 million in cost of revenues, GBP2.4 million in research and development costs, GBP0.5 million in sales and marketing costs and GBP0.5 million in general and administrative costs.
(3) Accounts receivable
Included within accounts receivable at 31 March 2008 are GBP18.1 million (31 December 2007: GBP24.5 million) of amounts recoverable on contracts.
(4) Consolidated statement of changes in shareholders’ equity (US GAAP)

Additional
paid-in
Share capital Treasury Retained
capital GBP’000 stock earnings

GBP’000 GBP’000 GBP’000

At 1 January 2008 672 367,680 (90,000) 234,455

Net income - - - 8,942

Tax effect of - (524) - -
option exercises

Amortization of
deferred
compensation - 3,469 - -

Conversion of
liability award to
equity award - 1,251 - -

Issuance of shares
from treasury - - 11,556 (8,903)

Purchase of own
shares - - (13,019) -

Other
comprehensive
income:

Realized gain on
available-for-sale
security (net of - - - -
tax of GBP85,000)

Unrealized holding
losses on
available-for-sale - - - -
securities

Currency - - - -
translation
adjustment

At 31 March 2008 672 371,876 (91,463) 234,494

(4) Consolidated statement of changes in shareholders’ equity (US GAAP)
Continued.

Unrealized Cumulative
holding translation
gain/(loss) adjustment

GBP’000 GBP’000 Total

GBP’000

At 1 January 2008 (214) (18,853) 493,740
Net income - - 8,942
Tax effect of - - (524)
option exercises
Amortization of
deferred
compensation - - 3,469

Conversion of
liability award to
equity award - - 1,251

Issuance of shares - - 2,653
from treasury

Purchase of own - - (13,019)
shares

Other
comprehensive
income:

Realized gain on
available-for-sale
security (net of 214 - 214
tax of GBP85,000)

Unrealized holding
losses on
available-for-sale (68) - (68)
securities

Currency - 1,689 1,689
translation
adjustment

At 31 March 2008 (68) (17,164) 498,347

(5) Consolidated statement of comprehensive income (US GAAP)

Q1 2008 Q4 2007 Q1 2007 FY 2007
GBP’000 GBP’000 GBP’000 GBP’000

Net income 8,942 9,859 9,577 36,842
Realized gain on 214 - - -
available-for-sale security, net
of tax
Unrealized holdings gains / (losses) on (68) 237 (230) (608)
available-for-sale securities, net of tax
Currency translation adjustment 1,689 10,543 (927) (6,777)
Total comprehensive income 10,777 20,639 8,420 29,457

(6) Non-GAAP measures

The following non-GAAP measures, including r