Lexmark First Quarter Better Than Expected Despite Losses
LEXINGTON, Ky. - Lexmark International has posted declines in revenue and profit for the first quarter, but the losses were not as bad as forecasters expected.
Lexmark shares rose more than 8 percent on news that the company had exceeded analysts’ expectations for the quarter with $884M in sales – up roughly $11M from forecasts. CEO Paul Rooke called it a “solid first quarter,” as the company works to transition from printers to a more diverse portfolio of products including software. Rooke said the software division saw a bump in sales of 54 percent year over year, though it continues to show an operating loss.
Lexmark announced last August that it planned to gradually halt its inkjet operations, which accounted for 14 percent of overall revenue in the first quarter.
The company is also dealing with a slowdown in printing demand, a development Rooke believes is the result of companies tightening their budgets in an uncertain economy and an overall increase in the number of individuals accessing data through mobile devices.