The OEM saw a three percent growth, which “exceeded” its predictions.
The results showed revenue growth of three percent, revenue excluding Lexmark’s exit from inkjet in 2012 growing six percent, and MPS and Perceptive Software combined revenue increasing by 21 percent.
GAAP (generally accepted accounting principles) revenue was $918 million (€723 million), whilst non-GAAP revenue was $921 million (€725 million), giving the growth of three percent, and “excluding the planned and ongoing decline in inkjet exit revenue”, this growth is six percent”.
In terms of the company’s Imaging Solutions and Services (ISS) segment, revenue “was about flat” compared to the same quarter last year, at $835 million (€657 million), but without the inkjet exit revenue, it grew three percent compared to last year; MPS grew 12 percent to $205 million (€161 million), non-MPS revenue was flat at $570 million (€55 million), and inkjet exit revenue of $60 million (€47 million), which was six percent of total revenue, declined by 29 percent.
Product-wise, hardware revenue grew eight percent to $196 million (€154 million), whilst supplies declined two percent to $593 million (€467 million), and laser supplies revenue grew two percent to $533 million (€419 million). As previously mentioned, the MPS and Perceptive Software revenue – packaged as Lexmark’s “higher value solutions”, is expected to pass $1 billion (€787 million) this year, with combined revenue of $291 million (€229 million) showing a growth of 20 percent over last year, accounting for 32 percent of total revenue.
Lexmark’s predictions looking forward include an expectation that total revenue in the fourth quarter of the financial year would be “down two to four percent”, with the inkjet exit continuing to “have a diminishing negative impact on revenue growth”, though excluding this, the OEM believes revenue in the next quarter will “grow year to year”.
Paul Rooke, Lexmark’s Chairman and CEO, commented: “In the third quarter, Managed Print Services and Perceptive Software combined revenue grew 20 percent, representing nearly one third of Lexmark’s total revenue, and is on track to exceed $1 billion this year. Our strong results reflect the work we have been doing to transform Lexmark to a solutions company, creating a unique portfolio of higher value imaging and software solutions.”