About LEXMARK INTERNATIONAL, INC.

Increasingly, Lexmark is about what ends up on a printed page than it is about the printing. Still a leading maker of printers and related supplies, the company has been adding software for capturing and managing data and images to its business. Its printer business, Imaging Solutions and Services (ISS), offers laser and dot matrix printers, multifunction devices, and related products. Through its Enterprise Software segment, the company offers content, document output, and business process management services. Lexmark expects to double the size of its software business with its $1 billion acquisition of Kofax.

Operations

ISS offers a broad portfolio of monochrome and color laser printers and laser multi-function products as well as a wide range of supplies and services covering its printing products and technology solutions. Enterprise Software offers a complete suite of Enterprise Content Management (ECM), Document Object Model (DOM), intelligent data capture and search software as well as associated industry specific solutions.

ISS accounted for more than 85% of revenue in 2014 with Enterprise Software bringing in the rest. In terms of products, supplies, which includes printer ink, made up 60% of Lexmark sales while hardware was 20% and software 20%.

Geographic Reach

Lexmark has facilities in the US, as well as in Australia, Brazil, Canada, China, France, Germany, Mexico, The Netherlands, the Philippines, Switzerland, and the UK.  It sells its products in more than 170 countries, with the US accounting for about 46% of sales. The EMEA region (Europe, the Middle East, and Africa) accounts for about 35%. Lexmark grouped the other 19% of sales in "other international."

Sales and Marketing

The company distributes its printers and related products via IT resellers, direct marketing resellers, and copier dealers. It markets it software through a direct sales force, as well as a network of third-party resellers.

Financial Performance

Lexmark's revenue fell 4% in 2015 to $3.5 billion from 2014. Revenue from the ISS unit dropped 12% from the impact of the company's exit from the inkjet printer market and from currency exchange rates. Sales of laser printer hardware fell from competitive pressures. Enterprise Software revenue, however, jumped 81% in 2015 on increases in maintenance and support, license, professional services and subscription revenue as the effect of the Kofax and ReadSoft acquisitions kicked in.

The company posted a loss of $40 million in 2015, compared to net income of $80 million in 2014. Higher expenses associated with the Kofax and ReadSoft acquisitions combined with the reduced revenue to cause the loss.

Strategy

Like a number of other companies, Lexmark is de-emphasizing hardware to focus more on supplies and services that generate recurring revenue. The document management services offered in its Enterprise Software unit reflect that move as was the 2013 sale of its inkjet technologies and assets to Funai Electric Co for about $100 million.

Lexmark still depends on its printing products to generate software, supplies, and services sales. In 2016, it released seven single-function color laser printers and 11 color multi-function printers. The products run on faster computer chips to speed the printing process.

Mergers and Acquisitions

Lexmark significantly boosted its software business with the $1 billion acquisition of Kofax Ltd. in 2015. Kofax's software is aimed at increasing its customers' responsiveness to the needs of their customers.

Also in 2015 Lexmark bought Claron, a provider of medical image viewing, distribution, sharing, and collaboration software technology, for $37 million, adding to Lexmark's capabilities in the medical and healthcare markets.

A key 2014 acquisition was of ReadSoft AB, a provider of software that automates business processes on premise and in the cloud. ReadSoft’s software manages hard copy and digital documents, extracting and verifying relevant information before depositing it into a customer’s record system.

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LEXMARK INTERNATIONAL, INC.

740 W New Circle Rd
Lexington, KY 40511-1876
Phone: 1 (859) 232-2000
Fax: 1 (859) 232-2156
www.lexmark.com

Stats

  • Employer Type: Public
  • Stock Symbol: LXK
  • Stock Exchange: NYSE
  • Chairman and CEO: Paul A. Rooke
  • VP and CFO: David Reeder
  • Chairman and CEO: Paul A. Rooke

Major Office Locations

  • Lexington, KY

Other Locations

  • Auburn, CA
  • Costa Mesa, CA
  • Irvine, CA
  • Sacramento, CA
  • Highlands Ranch, CO
  • Longmont, CO
  • Washington, DC
  • Coral Gables, FL
  • Coral Springs, FL
  • Davie, FL
  • Rosemont, IL
  • Bedford, MA
  • Framingham, MA
  • Baltimore, MD
  • Southfield, MI
  • Minneapolis, MN
  • Chesterfield, MO
  • Kansas City, MO
  • Apex, NC
  • Montvale, NJ
  • Park Ridge, NJ
  • New York, NY
  • Coopersburg, PA
  • Houston, TX
  • Irving, TX
  • Plano, TX
  • Ashburn, VA
  • Brossard, Canada
  • Calgary, Canada
  • Edmonton, Canada
  • Gloucester, Canada
  • Québec, Canada
  • Vancouver, Canada
  • Victoria, Canada
  • Winnipeg, Canada
  • Bois Guillaume Bihorel, France
  • Bordeaux, France
  • Labege, France
  • Les Milles, France
  • Lille, France
  • Lyon, France
  • Nantes, France
  • Reims, France
  • Strasbourg, France
  • Suresnes, France
  • Vadodara, India
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