Lexmark Reports Continued Growth in MPS Segment

Lexmark released its financial results for the third quarter of 2013, reporting GAAP revenue at $890 million compared to $919 million in 2012. In addition to $29 million net earnings for 3Q2013, Lexmark reported its operating expense was $294 million compared to $316 million in the same period of 2012.

As was revealed by Lexmark, Managed Print Services (MPS) created a record $184 million in revenue, up 18% year-over-year (YoY) compared with 2012. Inkjet represented 9% of the total company revenue, dropping 44% YoY to $84 million. Lexmark commented that Inkjet exit revenue “is expected to decline as a percentage of total revenue as the trailing inkjet supplies revenue from the remaining installed base of inkjet printers naturally decreases over time.”

Perceptive Software revenue reached $54 million, growing 38% compared to the 3Q2012.  Revenue from software and other sectors hit $102 million, up 21% YoY. Hardware revenue was $182 million with an 11% YoY decline, while supplies revenue dropped 4% YoY to $606 million.

On the Lexmark earnings conference call for 3Q2013, Paul Rooke, Chairman and Chief Executive Officer at Lexmark, declared, “In the third quarter, we continued our progress in creating a higher value portfolio for Lexmark, driving double-digit revenue growth for our high-value areas of Managed Print Services and Perceptive Software. We also continued to receive confirmation that our unique proposition of helping customers solve their unstructured information challenges is resonating.”