Lexmark reports record EPS for the second quarter 2011

GAAP earnings per share for the second quarter of 2011 were $1.27. Excluding $0.10 per share for restructuring-related and acquisition-related adjustments, earnings per share for the second quarter of 2011 would have been $1.36. GAAP earnings per share for the second quarter of 2010 were $1.07. Earnings per share for the second quarter of 2010 would have been $1.23 excluding $0.16 per share for restructuring-related and acquisition-related adjustments.

In the second quarter, Supplies revenue grew 3 percent year on year, Hardware revenue declined 9 percent, and Software and Other revenue grew 33 percent, or 30 percent excluding acquisition-related adjustments.

Imaging Solutions and Services (ISS) revenue of $1.020 billion declined less than 1 percent in the second quarter compared to the same period last year. Perceptive Software revenue in the second quarter was $24 million, or $25 million excluding acquisition-related adjustments, compared to $6.4 million, or $8.4 million excluding acquisition-related adjustments, in the second quarter of 2010.

In the second quarter of 2011, net cash provided by operating activities was $94 million, capital expenditures were $34 million, and depreciation and amortization was $53 million. The company ended the quarter with $1.3 billion in cash and current marketable securities.

Lexmark’s New Branch Bank and Mobile Printing Solutions Advance Company’s ‘Capture-Manage-Access’ Strategy Further demonstrating the company’s leadership and innovation in the financial vertical, Lexmark announced its newest end-to-end software solution for branch banks jointly developed by Lexmark and Perceptive Software. The Lexmark Branch Capture Solution is a powerful tool that enables financial institutions to automate paper-based workflows and eliminate much of the pain associated with tasks such as loan processing and new account openings, while enabling the branch to electronically capture, manage and access paperwork associated with day-to-day activities.

Lexmark also recently announced its Mobile Print Application for Android-based mobile devices. Lexmark’s enterprise-class application enables easy-to-use mobile printing for knowledge workers across the enterprise without adding additional servers. Lexmark’s Mobile Print Application for Android-based tablets will be available later this year.

Lexmark recently announced new smart color devices aimed at increasing productivity for heavy-usage workgroups and departments in mid-sized businesses and large enterprises. The Lexmark X950 color multifunction product (MFP) Series and the Lexmark C950 color printer are solutions-enabled devices that enhance the company’s award winning color lineup and strengthen Lexmark’s position in the important color workgroup market segment.

Lexmark recently became the manufacturer of choice for a national workgroup and color laser printer bid sourced by the U.S. Department of Veterans Affairs (VA). The contract calls for the potential placement of more than 20,000 Lexmark workgroup monochrome and color laser printers throughout 260 VA locations, including outpatient clinics in the U.S.

TBC Corporation, one of the largest marketers of automotive replacement tires and services, recently named Lexmark as its managed print services (MPS) provider, awarding the company a three-year contract to improve and optimize its printing environment and reduce print output costs throughout its more than 800 U.S. retail tire and automotive maintenance stores and Wholesale Division.

In the third quarter of 2011, the company currently expects revenue to be flat to down in the low single digit percentage range year on year. GAAP earnings per share in the third quarter of 2011 are expected to be around $0.86 to $0.96, or $0.94 to $1.04 excluding $0.08 per share for restructuring-related and acquisition-related adjustments. GAAP earnings per share in the third quarter of 2010 were $0.90, or $1.09 excluding $0.19 per share for restructuring-related and acquisition-related adjustments.