October 23, 2014
The association was founded in 2011, and includes ESP, Intel, Green Hills Software, GreatAmerica Financial Services, MWA Intelligence and fellow remanufacturer LMI Solutions. It states that it is “dedicated to providing the best and most aggressive technology and services” in IT security, embedded technology, IT automation and supply chain management.
Clover stated that as it “provides a vast breadth of technology products including imaging supplies, printer parts, and server and computer parts”, becoming part of the association will allow other Technology United members to “leverage Clover’s comprehensive service platform to fulfil their customers’ needs”.
Steve Noyes, Senior Vice President of Clover, said: “I am excited to represent Clover on the Board of Directors at Technology United and look forward to the collaborative opportunities it will provide. Our broad product assortment nicely complements the innovative technology solutions Technology United provides its global customer base.”
Mike Stramaglio, President and CEO of MWA Intelligence, added: “Everyone at Technology United is pleased to welcome Clover to the Technology United team. It is always a pleasure to have companies join our innovation family of great thought leaders who are dedicated to improving the industry. As Chairman, I look forward to a long and beneficial relationship.”
Categories : Rank 2
October 22, 2014
The results saw total revenue reach $5.1 billion (€4 billion), a fall of two percent over the last year’s results, with 57 percent of this total coming from the services segment, which saw a one percent increase in revenue to $2.9 billion (€2.2 billion). In turn, the document technology business, representing 40 percent of the total, saw revenue of $2 billion (€1.5 billion), a fall of six percent.
Operating margin meanwhile increased 0.1 percent year-over-year to 9.5 percent, leaving an operating profit of $486 million (€383 million), whilst $595 million (€469 million) in cash flow was generated in the quarter, and Xerox also repurchased $251 million (€198 million) in stock during the quarter, with an expectation that, having repurchased $730 million (€575 million) in the year already, it will have bought back around $1 billion (€788 million) by the end of the financial year.
Ursula Burns, Chairman and CEO of Xerox, stated: “This quarter we delivered earnings at the high end of our range. Profits from our document technology business came in above expectations while Services results were lower than planned. Our document technology business continues to provide strong profitability, and we are continuing to invest in our services business for revenue and profit improvement by strengthening leadership and evolving our operating model to better leverage our scale and drive efficiency and customer value.
“These activities will position us well for the future. Our business continues to deliver strong cash flow that enables us to invest for growth while returning capital to shareholders through share repurchases and dividends.”
Categories : Rank 5
October 22, 2014
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.”
Categories : Rank 5
October 22, 2014
Times of India reported on the Indian government’s plan to “make India a better place to do business”, with a range of reforms announced including “working to cut down the time for registering a business from 27 days to a single day” as well as “single registration for all labour laws”, an overhaul of taxation systems, a reduction of the number of required permits, an easing of property registration and quicker electricity connections.
The government reacted as a consequence of India being placed 134 out of 189 countries worldwide in the World Bank’s “Ease of doing business” index, behind China (96), Pakistan (110) and Bangladesh (130). Prime Minister Narendra Modi launched the ‘Make in India’ campaign at the end of September to “transform India into a global manufacturing hub by encouraging foreign businesses to invest in the country”, with these moves part of that process.
The Department of Industrial Policy and Promotion (DIPP) is the “nodal agency” for ensuring the passage of the reforms, with a timeframe of three to six months set “for implementing the changes”, with all government ministries asked “to come on board and work to reform the regulatory structure”, including an “overhaul [of] the investment climate”. Additionally, individual states are also being asked to help out with their own reforms, in order to “cut down delays”.
In terms of the tax system reforms, the government is suggesting a reduction in the number of taxes, the online payment of taxes, an incorporation of education taxes under corporation taxes “to simplify the process”, and the abolishment of the Minimum Alternate Tax (MAT), which is enforced on developers of special economic zones (SEZs).
Inspections of low risk businesses would be stopped, whilst computer-based selection would be undertaken in terms of inspecting high-risk businesses, and a uniform policy and procedure for all states was suggested “so as to enable the single-window clearance system” for businesses. The government cited Malaysia, New Zealand, Canada, Rwanda, Turkey and the UAE as examples of nations that have “eas[ed] up the processes and reduce[d] delays” in business applications.
One final, challenging hurdle is ensuring electric connectivity for businesses, with the government recommending “removing the requirement of pollution control certificates for providing a connection”, whilst state electricity boards and the ministry for power “have been asked to simplify procedures”. An anonymous official concluded that “to achieve all this, the government, along with the states, will need to carry out radical measures on a war footing.”
US investors pledged around $45 billion (€33.5 billion) to India in terms of investment earlier this month, and you can read more about ‘Make in India’ and how it could affect the country’s remanufacturing industry in a future issue of The Recycler.
Categories : Rank 3
October 22, 2014
Virtual-Strategy reported on the franchise’s appointment of Armanino LLP to provide it with a “custom-tailored” accounting and financial reporting solution, as part of a new enterprise resource planning (ERP) system.
Armanino, which says it is the “largest independent accounting and business consulting firm” in California, is providing Cartridge World with its Intacct system, and claims that Cartridge World’s expenditure on the implementation of the ERP system “will be recouped within six months of deployment”.
Intacct is cloud-based and will allow Cartridge World to get “customised analysis of KPIs [key performance indicators] and budget variances from multiple locations”, including North America, the UK, France and Australia. The “multi-dimensional” software also allows users to ‘tag’ transactions and data for “custom reporting”.
Lindy Antonelli, Partner at Armanino and Founder of the Cloud Accounting Institute, stated: “Armanino is excited to work with Cartridge World, an international franchisor that offers printers, ink and toner, and printer repair for home and business customers, in consolidating its global accounting and financial reporting.
“By utilising Intacct, the only accounting solution endorsed by the AICPA, we sare able to automatically consolidate reporting across geographies and minimise time-consuming manual reporting with a cost-saving cloud solution.”
Michael Dixon, Director of Finance at Cartridge World, added: “By reducing our annual subscription fee by two-thirds of what we were previously investing, Armanino has helped us redesign our workflow to maximise our savings. With Intacct, we are able to tie our global presence together under one simple to use cloud accounting solution.”
Categories : Rank 5
October 21, 2014
Actionable Intelligence (subscription required) reported on the changes, which came into force on Monday 20 October, and which are the latest expansion of the OEM’s partner programme revamp, which it first announced last November.
The programme’s changes last year were an attempt for the OEM to create more interconnected partnerships with channel partners in the USA, with the main issue being that an authorised partner would invalidate its agreement with HP if it resold HP products to a non-authorised reseller instead of the end-user – a big issue in terms of cartridge supply.
Steve Sakumoto, Vice President and General Manager of US Supplies Sales Organisation, Printing and Personal Systems, stated at the time that HP’s distribution system is switching from “open” to “authorised”, adding that “we’re basically asking all of our reseller partners just to register with HP so we can know who they are”.
Then, in April HP announced it would ban US partners from selling its consumables unless they had registered, with partners required to comply and obtain “Qualified” status, or be prevented from selling HP consumables – with this due to come into effect on 1 November.
The new changes now force resellers to provide end-user information to the OEM, with an email sent to authorised partners notifying them that as of 20 October, HP will collect the information via distributors and partners, who will have to provide this when placing orders, and this information includes customer names and addresses.
HP’s argument is that the data will help support its improvements in support and shipments, with resellers who already report directly to HP needing to report this information to the OEM as well, and the only exception will be in the case of restocking products. Concerns over selling third-party consumables were addressed by Sakumoto, who said “we full support choice in the marketplace”, though reseller numbers have almost halved since the reforms were announced last November.
David Connett, Editor and Publisher of The Recycler, stated: “Ever since HP sold printers and consumables the dealer has owned and managed the relationship with the customer, but these changes, along with its ongoing MPS strategy, are about the new HP Inc (or HP Ink) trying to own and eventually manage the relationship with the customer.
“For the smaller players in the market, the relationship with the customer is the most valuable part of their business, and I can’t see many of them giving that relationship to HP. So they will walk, and sell other printers and consumables, and in the meantime increase the sales of non OEM product. Good for the other printer brands, and good for the non-OEM consumables channel, but on the surface another doomed HP initiative.”
Categories : Rank 2
October 17, 2014
Forbes reported on HP’s announcement that it will cut 5,000 more jobs on top of the 45,000 to 50,000 lay-offs previously announced as part of the company’s restructuring plans; with the latest job cuts following last week’s news that HP is to split its PC and printing business and software and services to form two separate companies by the end of next year.
HP reportedly pledged to invest the money saved from the latest job cuts into research and development, with a total of 55,000 jobs expected to have been cut “by the time the restructuring programme is complete”.
As a result of HP announcing the split and the additional job cuts, shares of the company “soared”, with stock “up more than five percent as the opening bell approached” in a pre-market trading session. Forbes added that HP shares have gained more than 27 percent this year to date.
Jim Suva, Analyst at Citi, said: “HP’s balance sheet is in the strongest shape it has been in the past several years with cash greater than debt, PC margins are very stable, and services margins are improving.”
The Recycler reported on IDC’s predictions that rivals of HP will “in the short-term” attempt to “exploit” the OEM’s plans to split its two areas of business by trying to “lure smaller resellers and distributors away with a ‘unity’ message”. It was also reported that HP was still in merger talks with cloud technology company EMC after it announced the split, but that talks “seem to have ended” between the companies “probably over the price” of such a deal.
Categories : Rank 5
October 16, 2014
BostInno reported on how the merger talks “seem to have ended” between HP and cloud technology company EMC, “probably over the price” of such a deal, with Reuters confirming that “executives from the two companies were still trying to hammer to a deal as recently as last week, but talks bogged down on price and are now dead”.
The news site noted that the price being a sticking point “was no surprise”, as the previous announcement that the two companies were looking to merge late last month mentioned a “price impasse” that halted negotiations. The interesting aspect of the developments is that negotiations “apparently resumed” after HP announced its plans to split into two companies, which The Recycler reported on here.
HP reported it will split its PC and printing businesses into HP Inc., whilst its software and services offerings will form Hewlett-Packard Enterprise, but the previous talks between it and EMC had seen it plan to spin off its PC and printing businesses in the merger, so it can be seen that the split would not have affected any potential merger.
Joseph Wittine of Longbow Research added that “an EMC valuation of $33 to $34 (€25 to €26)” would “get the deal done” between the two companies, with EMC’s stock worth $27 (€21) earlier this week, but BostInno stated that a “generous premium may have caused” HP CEO Meg Whitman to turn down the deal “considering all of the other benefits EMC would gain” in comparison to what HP would.
Categories : Rank 3
October 15, 2014
CRN reported on Canon’s new go-to-market (GTM) strategy for both laser MFPs and inkjet AIOs in India, with the OEM reportedly planning to “consolidate its presence in top-10 markets and penetrate deeper in tier-2 and -3 cities for inkjet AIOs” and “aggressively focus on VARs [value-added resellers] catering to enterprise, mid-market and government segments” as part of its plans to push its laser MFP offerings.
Commenting on the laser MFP strategy, Gautam Paul, Assistant Director of Consumer System Products Group at Canon, explained that it “will be our focused approach to move ahead of box-pushing and to offer printing solutions through VARs. We want to build a robust VAR channel by identifying VARs from current set of partners and by adding new ones that could provide solutions to large customers”. He added that the strategy for the VAR channel will be formulated “by 2014-end”.
Paul noted that, in addition to large enterprises choosing A4 laser MFPs for their branches and departments, a lot of mid-market and SMB customers choose laser MFPs to benefit from “optimum printing speed and enterprise applications at lower costs”; while “many of the large customers are now opting for inkjet printers to lower their printing cost”. He added that “IT VARs are well positioned to leverage this demand and provide end-to-end printing solutions”.
In terms of market share, Canon is aiming to have 15 percent in the laser MFP segment this year.
Meanwhile, in the inkjet AIO segment, Canon hopes its Ink Efficient E-series printers will provide growth and “five to six SKUs in the OND quarter of 2014”, with Paul explaining: “Besides product expansion, our focus will be to consolidate market share in top-10 cities and to expand presence in tier-2 and -3 cities. In top-10 cities we already have market share of 25 percent and will expand it to 30 percent in a year by capturing competition market share with feature-rich products with high decibel marketing.”
Paul added that Canon “will enable partners to sell more” in tier-2 and -3 cities and will “add more partners for deeper penetration”, aiming to beat HP and reach the number one position in the inkjet AIO segment in the next two years.
Categories : Rank 5
October 14, 2014
The company said the move “is part of ILG’s continued expansion plan to accommodate growth”.
The “relocation and expansion” of ILG’s corporate headquarters sees the company move to Calabasas in California, with the address being 26610 Agoura Road, Suite 100, Calabasas, CA 91302. The same customer service representatives that customers are in contact with, alongside sales support and staff, are continuing to provide order fulfilment during the relocation.
Noting that the move is part of its “continued expansion plan to accommodate growth”, ILG stated that the “high-tech, state-of-the-art and energy-efficient facility” will allow it to “further automate order processing, streamline client services, and continue enhancing our ability to serve our customers at the highest levels”.
The company added that the new headquarters “ensures efficient use of water and energy while creating a healthy and comfortable environment”, with “motion-activated lighting” utilised to “lead the way to an environmentally-friendly business”, as well as a “secure IT data management system” and “modern work-flow offices for prompt order processing”.
The new headquarters adds to ILG’s five distribution facilities across the USA, in California, Texas, Illinois, Pennsylvania and Georgia. The company was acquired by European remanufacturer Turbon last December.
Categories : Rank 5