Lexmark Sees Strong Growth in Q4/FY13

Lexmark has released its 4th quarter and full-year financial result of the 2013 fiscal year. It has posted US$1.01 billion revenue, up 4% year over year. Net income was US$75.0 million, compared with US$44.3 million in the year-ago quarter.

In the 4th quarter, Lexmark continue to see robust growth in Managed Print Services and Perceptive Software. Meanwhile, the company has delivered record Laser Supplies revenue with 8% growth in the 4th quarter and 2% for the year. According to Lexmark’s press release, below are some highlights of the financial result:

• Imaging Solutions and Services (ISS) revenue grew 1% compared to the same period last year, reaching US$939 million. ISS revenue, excluding Inkjet Exit revenue, grew 8% year over year.
• Within ISS, revenues from MPS grew 22% to US$208 million, while non-MPS revenues increased 4% on a year-over-year basis, reaching US$631 million. The revenue of Inkjet Exit was US$100 million, down 32% year over year, representing 10% of total company revenue. According to Lexmark, this segment 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 was US$67 million. Perceptive Software revenue, excluding acquisition-related adjustments of US$5 million, was a record US$72 million and grew 70% compared to the same period in 2012.
• Product Revenue: Hardware revenue of US$228 million and Supplies revenue of US$661 million grew 3% and 1%, respectively, compared to last year. Hardware revenue, excluding Inkjet Exit, grew 7% year over year. Supplies revenue, excluding Inkjet Exit, grew 8%, compared to last year.

According to John W. Gamble, Chief Financial Office and Executive Vice President of Lexmark, “In 4Q 2013, we had growth across all strategic revenue categories. We saw a revenue and unit growth across laser large and small workgroup hardware and revenue growth in both laser supplies and Perceptive Software. Large workgroup hardware had over 25% growth in color and about 15% growth in MFP units. Small workgroup hardware had over 10% growth in MFP units. Laser Supplies revenue grew 8%, driven by continued strong MPS growth. ”

“In calendar year 2013, large workgroup hardware revenue was flat, with 3% growth in overall units. Large workgroup represented 83% of total hardware revenue in 2013. Large workgroup MFP units grew almost 15% and color units almost 20% in 2013. Laser Supplies revenue grew 2% in 2013, again, reflecting strong MPS growth. Laser supplies channel inventory movements had a minimal impact on year-to-year revenue growth. In absolute terms, we estimate the laser supplies channel inventory increased during 2013 to support our page growth and buying ahead of announced price increases. ” (Source: seekingalpha.com)