Lexmark Earnings: Weak Demand In Printer Supplies And Hardware Negatively Impacts Revenue And Guidance

The following appears on Forbes.com

Lexmark International released its Q3 earnings after market close on October 27th. The company posted a 6% decline (flat in constant currency) in revenues to $868 million, even as its high-value managed printer services and Perceptive software businesses (including the recently acquired Kofax) delivered 28% growth (37% in constant currency).

The most encouraging news in the announcement was that the higher value business revenue exceeded an annualized $1.5 billion and makes up 43% of total revenues. It’s imaging solutions and services revenues declined by 16%. Within the ISS division, managed print services revenue grew by 1% year over year to $207 million; non-MPS revenue declined by 18% to $465 million as softness in laser hardware and supplies persisted in Q3. Additionally, Lexmark’s Perceptive software division continued to post growth as revenues grew by 92% to $165 million.

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