Lexmark International Inc. reported higher than expected revenue for Q4 2012 and credits the continued growth of its Perceptive Software and managed print services revenue. Revenue for 2012 dipped slightly to $3.798 billion from $4.173 billion in 2011, according to the company.
The vendor made some strategic business decisions in 2012, such as exiting of the development and manufacturing of its remaining inkjet hardware in hopes of realizing ongoing annualized savings of $95 million.
At the same time, lexmark committed to focusing on higher value imaging and software solutions to improve competitiveness and create value for shareholders. In October, the vendor introduced 42 new laser-class printers ranging from $199 to $5499.
The Q4 2012 GAAP results were revenue of $967 million compared to $1.060 billion in 2011. Imaging Solutions and Services (ISS) revenue of $925 million declined 10 percent compared to the same period last year while Managed Print Services, within ISS, revenue grew three percent to $170 million.
Perceptive Software revenue was $42 million growing about 37 percent compared to the same period in 2011.
Looking at full year 2012 results, ISS revenue of $3.642 billion declined 11 percent compared to 2011, however MSP revenue, within ISS, grew seven percent to $624 million.
Perceptive Software revenue was $156 million, excluding acquisition-related adjustments was $162 million, a 62 percent increase compared to the full year 2011.