Lexmark beats billion mark in second quarter

by Stuart Wilson, Friday 30 July 2010

Lexmark’s second quarter sales climbed 14% year-on-year to US$1.03 billion

Lexmark’s second quarter sales climbed 14% year-on-year to US$1.03 billion. The imaging and printing solutions vendor’s profits soared fivefold to US$85m compared to the previous year. Second quarter printing solutions and services division (PSSD) sales were up 20% year-on-year at US$752m. Imaging solutions division (ISD) sales slipped 2% to US$275m.

"Lexmark’s second quarter results were significantly better than expected, driven by double-digit growth in both hardware and supplies revenue, as well as operating income margin expansion," said Paul J. Curlander, Lexmark chairman and CEO.

"This strong performance is a reflection of our improved product lines, continued growth in managed print services, the shift in our inkjet focus to business customers, and our ongoing strong growth in workgroup lasers and higher end inkjet products," Curlander added.

Lexmark ended the quarter with US$1.0 billion in cash and current marketable securities. During the second quarter, Lexmark completed the acquisition of Perceptive Software in a cash transaction for US$280m. Perceptive Software is a leading provider of enterprise content management (ECM) software and solutions, with industry experience in the higher education, healthcare and government segments.