Lexmark International, Inc. (NYSE: LXK) is an American corporation which develops and manufactures printing and imaging products, including laser and inkjet printers, multifunction products, printing supplies, and services for business and individual consumers. The company is headquartered in Lexington, Kentucky.

Lexmark International, Inc., (Lexmark) is engaged in developing, manufacturing and supplying printing and, imaging, document workflow, and content management solutions for the office. The Company operates in the office imaging and enterprise content management (ECM) markets. Lexmark’s products include laser printers, inkjet printers, multi-function devices, dot matrix printers and associated supplies, solutions and services, and ECM software solutions and services. The Company has two segments: Imaging Solutions and Services (ISS) and Perceptive Software. Lexmark develops and owns the technology for its laser and inkjet products, software related to managed print services, and ECM solutions. On June 7, 2010, the Company acquired Perceptive Software, Inc. (Perceptive Software), a provider of ECM software and document workflow solutions.
ISS
ISS offers a portfolio of monochrome and color laser printers, laser multifunction products (MFPs) and inkjet all-in-one (AIOs) along with software solutions and managed services to help businesses to manage and share information. They are designed to provide people with the information they need-on paper or electronically. ISS offers a range of services covering ISS’ line of printing products and technology solutions, including maintenance, consulting, systems integration and managed print services (MPS) capabilities to provide a output solution.
Within the single-function laser printer category, ISS offers its E Series, which includes the Lexmark E260, E360 and E460 Series for small to midsize workgroups. For medium to large workgroups, ISS offers both the Lexmark T650 Series and the Lexmark W850 Series. The T650 Series includes Lexmark T656dne, single-function monochrome A4 (8.5 inches x 11 inches) laser printer with a touch screen, which lets users access preloaded solution applications in addition to basic functions. The W850 Series provides departmental workgroups with A3 (11 inches x 17 inches) paper support and finishing options.
ISS’ monochrome MFP line ranges from low-end and mid-range workgroup models to high-end devices equipped with ISS’ smart MFP architecture and e-Task touch screen. For individual users and small workgroups, ISS offers the Lexmark X200 Series, the Lexmark X264dn, and the Lexmark X360 Series. For medium and large workgroups, ISS offers Lexmark X460 Series, Lexmark X650 Series, and A3-capable X860 Series.
During The year end December 31, 2010, the Company announced 13 printers and MFPs. The new products include Lexmark X792 family of color laser MFPs; Lexmark C792 color laser printer family offers similar advanced color laser technology; the Lexmark X925e color laser MAP; the Lexmark C925 family, and Lexmark X925de color MAP. The Lexmark C925 color printer family consists of two models, both with a 4.3-inch touch screen. For small to midsize workgroups, ISS offers the X540 Series of color laser MFPs and the C540 Series of color laser printers. For medium workgroups, ISS offers the Lexmark X730 Series and Lexmark C730 Series.
ISS build designed and feature-rich inkjet AIOs. Lexmark’s Professional and Home Office series of Inkjet AIO products include office features, such as automatic two-sided printing and document and photo print. ISS continues to expand its SmartSolutions application platform, which combines Web-connected touch screen technology. During 2010, the Company added two products in feature-rich AIOs that include Web-connected line of inkjet AIOs, Lexmark’s myTouch capacitive 4.3-inch touch screen technology, Lexmark’s Vizix print technology, Wireless-N connectivity (IEEE 802.11n). Enhancing the line-up of Lexmark’s Professional Series is the Pinnacle Pro901. Similar to the Platinum Pro905, the Pinnacle Pro901 features the 4.3 inches Web connected touch screen with SmartSolutions technology, penny-per-page mono printing, Wireless-N (IEEE 802.11n) and Ethernet connectivity. Other Professional Series products include the Prevail Pro705 and Prospect Pro205. The flagship of the Home Office line of AIOs is the Lexmark Genesis S815. The Home Office line of AIOs includes the Interact S605, Intuition S505, the Interpret S405 and the Impact S305, all of which offer wireless connectivity.
The Company competes with Hewlett-Packard (HP), Canon, Ricoh, Xerox, Brother, Konica Minolta, Kyocera, Okidata, Samsung and Epson.
Perceptive Software
Perceptive Software offers a complete suite of ECM software products and solutions. Perceptive Software ECM software products, including ImageNow document management, document imaging and workflow, allows users to capture, process and collaborate on documents and information, protect data integrity throughout its lifecycle and access precise content in the context of the users’ everyday business processes. These components are developed and maintained by Perceptive Software. In 2010, Perceptive Software released Retention Policy Manager, offering to enable customers to manage the complete lifecycle of their content from creation to destruction or disposition. It also released a business analytics module, Business Insight, which integrates IBM Cognos to provide industry and business process dashboards, operational and ad-hoc reporting and easy to use report design tools.
Designed from Perceptive Software’s ECM technology, including the ImageNow document management, document imaging and workflow suite, Perceptive Software offers industry specific solutions of varying levels of functionality and across target industries, such as healthcare, higher education, government, and financial services, as well as select back office functions, such as accounting, human resources, contracts, and records. These solutions are consists of select products, practice templates, and industry specific deployment methodologies. Perceptive Software uses a direct to market sales and lead generation approach, employing internal sales and marketing teams that are segmented by industry sector, such as healthcare, education, public sector/government, and cross industry, which includes areas, such as retail, financial services and insurance.
The Company competes with EMC, International Business Machines Corporation (IBM), Hyland and Laserfiche.


After having reduced numerous layers of management, created highly independent product development teams, organized a brand new, extremely aggressive sales force, and discarded IBM's traditional appraisal and suggestion program, Mann was ready to take Lexmark to new heights. In 1992, as the company improved its product development time cycles and made its manufacturing processes more and more efficient, a new dot matrix printer was introduced for use at both work and home, along with an extremely lightweight battery-powered printer for portable personal computer users. Later that year, Lexmark introduced a PostScript-compatible inkjet printer, and also began to make a mark in the field of laser network printing. These laser printers were manufactured for Macintosh and were the first products bearing the Lexmark, rather than the IBM, name. At the same time, however, Lexmark retained its right under a licensing agreement to manufacture printers under the IBM logo.
In addition to expanding its product line with such items as color printers, Lexmark significantly increased the number of its original equipment manufacturer (OEM) printer customers, and was well on the road to doubling that number within its projected timetable of one year. Lexmark also aggressively expanded its IBM PC-compatible keyboard business, which, by the end of fiscal 1992, had grown to include over 40 original equipment manufacturers besides IBM. Lexmark was able to double its operating profits after only two years of operation. The company produced $1.8 billion in revenues during fiscal 1992 and, with a good cash flow and astute management of its financial resources, Lexmark was able to dramatically reduce its debt from $1.15 billion to approximately $700 million, an impressive accomplishment within such a competitive industry.
In 1993, Lexmark significantly enhanced its presence in the Pacific Rim with the acquisition of Gestetner Lasers. Arranged through its subsidiary, Lexmark Australia, the print maker Gestetner was the company's first acquisition and, like all subsequent purchases, was fully incorporated into the company's manufacturing operations. At this time, the company made a commitment to increase its business operations in the international sector and, after a restructuring plan implemented in 1992, improved manufacturing operations in France and built up distribution, marketing, and administrative operations throughout Europe. As a result of these measures, sales from the company's European business shot up to approximately $500 million. Through astute pricing and product sourcing decisions, management was able to minimize the effects of exchange rate fluctuations on the company's European revenues. Other major events during 1993 included the introduction of a new series of network laser printers, and a licensing agreement with Interlink Electronics to develop joystick technologies for a burgeoning market.
By the beginning of 1994, Lexmark had made its name in the laser printer industry. The sale of inkjet printers increased 27 percent over the previous year, much of this due to the entry of the company into the low-end color inkjet market. Associated printer supplies increased by 28 percent, attributed primarily to the continued growth of the company's installed printer base. Keyboard revenues increased only six percent, but the company's notebook computer line proved to be one of its most popular products in the retail market. In fact, Lexmark's presence in retail stores was growing at an astounding rate, with over 20 percent of the company's total revenues generated from retail sales. By the end of the year, Lexmark was ranked fourth in the retail market, closing in on such giants as Hewlett-Packard, Epson, and Canon Computer in inkjet sales. A study conducted during this time indicated that consumer recognition of Lexmark and its products had grown from 36 percent to 41 percent in just three months.
In addition to the increase in revenues, Lexmark received a major endorsement from Microsoft when the software titan picked the company as its first partner for the WindowsAtWork printing environment. Pleased with Lexmark's innovative and aggressive style, Microsoft subsequently chose the company to work on a second generation of products which would be optimized to run in a Windows environment. The close of 1994 marked a milestone in Lexmark history as the IBM logo was finally removed from all company products to be replaced by the Lexmark name. Perhaps the most satisfying moment for Mann, however, arrived when Lexmark was able to reduce its debt to a mere fraction of the total amount by the end of 1994.
Into the Future
In 1995, Lexmark introduced one of its most successful products, MarkVision, the most thorough and comprehensive printer management system designed up to that time. Local Area Network (LAN) users within large corporations significantly increased their efficiency by installing MarkVision, which allowed staff to view all the available printers and check the print job status of each of them without leaving their desk. Another feature of MarkVision provided network administrators with access to the same information so that printer settings could be easily changed through a unique remote operator panel. The click of a mouse gave individuals the ability to remotely perform multiple tasks from their desktop, and simultaneously control and manage all printers across the entire network, regardless of whether the printer was on another floor in the building or across the country. Within a very short time, MarkVision had developed into one of the most popular network and systems management applications, used by many of the leaders in the network industry. With the success of MarkVision, Lexmark was able to introduce related applications such as the MarkNet IR, or infrared adapter. This highly compact product enabled a mobile printer to print, synchronize, and transfer files from an infrared-equipped notebook or laptop computer without the use of switch boxes or cables that required extensive hook-up procedures.
By the end of fiscal 1995, Lexmark was able to report nearly $2.2 billion in revenues, with approximately 70 percent of sales generated from printers and associated supplies. Nearly 40 percent of Lexmark revenues came from sales outside the continental United States, mostly derived from countries in Europe and around the Pacific Rim. With international sales up 25 percent over 1994, the company planned to continue expanding its presence overseas through a strategic effort to manufacture more competitive products, improve marketing and intensify sales efforts.
According to the trends within the industry, Lexmark management was confident that most of the company's revenues through the end of the 90s would be generated from its consumable supplies business, especially in the area of replaceable cartridges for printers. Because cartridges must be replaced two to three times per year, the demand for laser and inkjet cartridges increased at a much higher rate than initially expected. Lexmark planned to meet this need into the next decade by increasing its production facilities in the United States, Europe and Latin America. During the mid-1990s Lexmark management decided that, for the foreseeable future, the company would be the only supplier for new print cartridges of its laser and inkjet printers, thus contributing to the stability of Lexmark's earnings.
Principal Subsidiaries: Lexmark Australia.


OVERALL
Beta: 1.08
Market Cap (Mil.): $2,445.71
Shares Outstanding (Mil.): 79.05
Annual Dividend: --
Yield (%): --
FINANCIALS
LXK.N Industry Sector
P/E (TTM): 7.52 13.28 19.04
EPS (TTM): 78.46 -- --
ROI: 13.66 15.19 15.77
ROE: 25.13 17.11 17.30


Statistics:
Public Company
Incorporated: 1991
Sales: $2.16 billion (1995)
Employees: 5,000
Stock Exchanges: New York
SICs: 3579 Office Machines; 3577 Computer Peripheral Equipment

Name Age Since Current Position
Rooke, Paul 52 2010 President, Chief Executive Officer, Director
Gamble, John 48 2005 Chief Financial Officer, Executive Vice President
Canning, Martin 47 2010 Executive Vice President, President - Imaging Solutions and Services
Stromquist, Gary 55 2010 Vice President - Imaging Solutions and Services and Corporate Finance
Patton, Robert 49 2008 Vice President, General Counsel, Secretary
Isbell, Jeri 53 2003 Vice President - Human Resources
Foresti, Ronaldo 58 2008 Vice President, Asia Pacific and Latin America
Coons, Scott 44 2010 Vice President, President & Chief Executive Officer - Perceptive Software
Dunbar, W. Roy 49 2011 Director
Gomory, Ralph 81 1991 Independent Director
Maples, Michael 68 1996 Independent Director
Hardis, Stephen 75 1996 Independent Director
Fields, William 61 1996 Independent Director
Holland, Robert 70 1998 Independent Director
Seifert, Kathi 61 2006 Independent Director
Montupet, Jean-Paul 63 2010 Independent Presiding Director
Cohon, Jared 63 2010 Independent Director
Coleman, J. Edward 59 2010 Independent Director
Helton, Sandra 61 2011 Independent Director


Address:
55 Railroad Avenue
Greenwich, Connecticut 06836
U.S.A.
 
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