May 3, 2013
The Lexmark survey, which questioned office workers across Europe, found “knowledge to be very low” regarding laser printer supplies, noting that “common beliefs and misconceptions” were widely held by those surveyed, including those thinking they would have to pay to recycle cartridges.
Lexmark notes that the “better insight” into capabilities that should be available to those surveyed would allow “more informed decisions” about buying products, saving users money and time. Among the most startling statistics were that 75 percent “don’t know how many pages their printer cartridge should print”, and 28 percent believing they must “pay themselves to recycle an empty toner cartridge”.
Other findings included 84 percent of those surveyed having “no idea how many more pages they can print” after a low toner warning appears, as well as 50 percent believing that “the more expensive the toner cartridge, the higher the print cost per page”. Three out of five of the office workers asked also stated that they believe the quality of printing “goes down the less toner there is in the cartridge”.
Lexmark responded to the idea of poorer quality in comparison to toner levels by adding that “the cartridge will require a shake or two for best results” after a low toner warning, also advocating its own Unison toner, which features a “shake free system” and can “reveal the exact number of pages that can still be printed”.
Moving on from this, the OEM added that “some toner may be lost” in swapping to a new cartridge too soon, but added “this is not true for all printers”, with its own able to “analyse printing habits” and “better calculate the number of remaining pages that can be printed”. It also debunked the idea that cost per page increases with cartridge pricing, adding that “the higher the price of the toner cartridge for a specific printer segment, in general the greater number of printed pages that can be produced and the lower the overall cost per page”.
The survey was compiled from asking 664 office workers from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, Sweden and the UK, with the results collected this year.
Danny Molhoek, General Manager at Lexmark UK and Ireland, said of the results: “Our survey shows that many people have little knowledge of what they can expect from their printer supplies and several misconceptions about capabilities and costs.
“Whilst some of these may have been true in the past, technology as ever is advancing. Cost per page is getting lower whilst the yield, reliability and sustainability of products is increasing all the time.”
What do you think about these findings? What do you believe could or needs to be done to improve public knowledge about supplies, in particular recycling cartridges? Contact The Recycler by commenting below or emailing us at email@example.com.
Categories : Rank 1
May 2, 2013
OEM’s first quarter spending on research and development declines 15.6 percent year-on-year.
Kentucky.com reports that Lexmark’s spending on R&D in the first quarter of 2013 was the lowest amount in over eight years at $81.6 million (€62 million), compared to $96.7 million (€73.4 million) in the first quarter of 2012.
The amount has not been so low since the third quarter of 2004 when Lexmark spent $78.3 million (€59.5 million), with the company gradually increasing its spending since then to expand product lines.
It is thought that Lexmark’s exit from the inkjet market, which it announced in July last year, has affected the R&D spending; with the move resulting in the lay-off of 1,700 employees worldwide over the next two years. The OEM sold its inkjet business in April to Funai Electric Co. for approximately $100 million (€76 million).
Lexmark’s MPS business, on the other hand, saw a year-on-year revenue growth of 10 percent to $160 million (€121.5 million) as the company focuses on its MPS and Perceptive Software businesses.
Paul Rooke, CEO of Lexmark, said: “When we’ve gone through the restructuring with inkjet, it takes out a large element of the R&D […] we continue to optimize our laser investments there.”
Commenting on the company’s new direction, Rooke continued: “We’re in a transition in our business, and I think it’s important that people understand the dynamics in this transition […] We started initially calling out the decline in the inkjet exit segment, then on the strategic pieces with Perceptive Software and managed print services, two key investment areas and growth areas.
“It reinforces we’re having success in these areas, and we’re trying to improve our communications with investors.”
The Recycler reported in February that Lexmark’s R&D spending for the fourth quarter of 2012 was the lowest in six years at $88.1 million (€67 million); a year-on-year drop of 10 percent.
Categories : Rank 5
April 30, 2013
The toners have been developed by AQC to “be a perfect match for sustaining all the original printer’s capabilities, offering crisp text and rich colour images throughout”.
The toners are used in the two devices, which are said by the company to have a “vast array of paper handling facilities” and are ideal for medium to large businesses, “especially those requiring large and frequent print jobs”. The devices print at a speed of 21ppm for the initial document, but print at 30ppm after the 11 seconds needed to warm up, with AQC adding that these printers “are perfectly capable of dealing with continuous large print jobs”.
The toners are available in AQC’s foil bags or 10 kilogram bulk bags, and are in stock for immediate dispatch, with the company adding that “high yield replacement chips are also available”.
Categories : Uncategorized
April 24, 2013
OEM’s forecasts below those of analysts as demand for printers and printing services declines.
Lexmark International Inc. has announced second quarter adjusted earnings of 80 to 90 cents per share on revenue of $845.1 million (€649 million) to $863.4 million (€663.4 million) – lower than previous average estimates by analysts of 89 cents per share on revenue of $846.3 million (€650.3 million), reports Reuters.
Falling printer sales due to corporate cost cutting and the increasing popularity of mobile devices has been identified as a main cause for the low forecast; although Lexmark’s first quarter revenue reportedly exceeded expectations.
The OEM’s imaging division, including its laser printers, software and MPS business, fell to 13 percent to $840 million (€645.4 million), despite the division accounting for 96 percent of Lexmark’s overall revenue during 2012; while first quarter net income fell to $34.8 million (€26.7 million) or 54 cents per share compared to $61 million (€46.8 million) or 84 cents per share in the first quarter of 2012.
Lexmark reported first quarter earnings for 2013 at 88 cents per share, with revenue falling to $884.3 million (€679.5 million). Despite the fall, the results exceeded average analyst expectations of 87 cents per share and a revenue of $873.6 million (€671.3 million).
Kulbinder Garcha, an analyst with Credit Suisse, commented on Lexmark’s future as it shifts to higher value printing services and software products following its exit from the inkjet printer business last August: “While the company continues to ramp up its software and services offering, there will be a large, profitable void to fill as they exit the inkjet segment of the printing market over the next few years.”
Categories : Rank 5
April 23, 2013
CRN reports that MPS could move to focus on SMBs as well as large enterprises, starting with entry-level, basic print services (BPS) that will enable smaller businesses to ensure the smooth running of their print infrastructure, save money and enable staff to focus on “more strategic activities”.
The article notes that despite many SMBs relying heavily on large volumes of printing, often in colour, most are faced with “limited resources and expertise” regarding printing and ordering supplies; and are forced to purchase print devices and consumables separately, therefore using up significant resources and time on day-to-day printer support and the ordering of new supplies.
However, with the emergence of BPS, which combines hardware, service and supplies into a single contract, the way SMBs handle their print infrastructure could begin to improve. Hardware can be leased to the companies and supplies ordering is “enabled through a centralised web portal or triggered through remote monitoring capabilities”, while “data reports and service records may also be available through the web portal”.
According to the article, fewer than 20 percent of SMBs currently purchase or lease printers as part of an MPS contract, but 40 percent indicate that they are planning to move to some form of MPS in the next few years, suggesting that the trend for purchasing “printing” rather than “printers” is set to grow among smaller businesses.
Recognising this, Lexmark has recently introduced its Page Plus Business (PPB) aimed at encouraging IT resellers with little to no experience of MPS to enter the MPS market by “providing an easy way to shift from a transactional hardware to contractual sales approach” without requiring them to get involved in the extended auditing or management of more advanced MPS programmes.
PPB is described as a “simple, entry-level service, wrapping consumables and service support into an annual contract with flexible monthly payment options”; with the reseller being responsible for the selling of the MPS contract while Lexmark manages print usage analysis and forecasting that determines the margin payable.
PPB is also beneficial for SMBs due to its pay-as-you-go set-up, allowing businesses with unpredictable monthly output to avoid excess charges incurred in more traditional MPS programmes when volume commitments are exceeded. Furthermore, Lexmark pay margin on consumables revenue on three to five-year contracts up front, compared to many MPS contracts where consumables revenue is paid on a quarterly basis.
While it has been shown that SMBs are becoming more interested in entry-level MPS programmes, the article states that the key to Lexmark’s PPB success “will be engaging its IT reseller partners to make this transition, providing the sales tools, training and resources needed”.
Categories : Rank 5
April 8, 2013
Trade Arabia reports that Lexmark International Middle East recently organised a number of seminars and workshops to benefit its resellers in Kuwait, with the OEM aiming to strengthen interaction between its brand and its channel partners in the market.
The event was attended by 30 of Lexmark’s partners across the country, who were briefed about the company’s latest product lines, product launches and service and maintenance issues.
Commenting on the forum, Mathias Militzer, General Manager of Lexmark International Middle East, said: “Building a quality relationship with our channel partners is paramount to Lexmark and we invest a lot into building this up. Workshops like these play a significant part in spreading awareness about our latest offerings as well as improving communications channels and fostering a deeper mutually beneficial relationship.”
Brother International also held an event recently in the Middle East to demonstrate its newest range of products in the Gulf region; while HP unveiled a new line-up of products at the Gitex Shopper event in Dubai.
Categories : Rank 5
April 2, 2013
Lexmark has announced that Japanese manufacturer Funai Electric Company Ltd. will acquire more than 1,500 of the OEM’s inkjet patents in a $100 million (€78 million) deal expected to close within the first half of 2013.
The deal will also see Funai acquire Lexmark’s inkjet-related research and development assets and tools, all outstanding shares and Lexmark International (Philippines), Inc.’s manufacturing facility; which it states will allow Funai to develop, manufacture and sell inkjet hardware and supplies under its own brands.
Funai, which has headquarters in Osaka, Japan, has manufactured inkjet hardware for Lexmark since 1997, with Lexmark stating that the companies have “established a strong relationship over time”. It intends to develop and grow its inkjet printer business by introducing its own devices and supplies into the market, with the deal expected to accelerate the expansion of its inkjet business.
Tomonori Hayashi, President and CEO of Funai, said: “This transaction provides us with a crucial and tremendous opportunity to enhance our office solution business. Funai and Lexmark have developed a great partnership, and we are glad to take over Lexmark’s inkjet-related technology and assets. The acquisition of the inkjet-related technology and assets enables Funai to start and grow our own inkjet business. Funai will benefit from the strong inkjet business platform that Lexmark has established.”
Paul Rooke, CEO and Chairman of Lexmark, asserted that the deal will not disrupt the service or support the company offers to its customers, commenting: “As we continue our transition to becoming a leading end-to-end solutions provider, this transaction essentially completes our exit from the ownership of inkjet-related assets, although we will continue to support our existing customer base with the sale of inkjet supplies. Funai has been a trusted partner of Lexmark’s since 1997, and I am fully confident in Funai’s ability to deliver high-quality inkjet supplies for Lexmark.”
Categories : Rank 2
March 19, 2013
Law360 (full article requires subscription) reported that at the beginning of March the US Supreme Court asked Static Control to “respond” to Lexmark’s petition, which sought a review of a ruling that had been made over false advertising. The case was spun out of the two companies’ case over patent infringement, which began in 2002.
The false advertising came about from Static Control’s counterclaim in the patent infringement case that argued Lexmark had “violated antitrust law by forcing consumers to buy only Lexmark-brand ink” as well as claiming the OEM had “falsely told customers that Static Control’s components infringed Lexmark’s patents and copyrights”.
The ruling, made in August, reversed a district court ruling previously made, stated that Static had “standing to make false advertising counterclaims” in the wake of the two companies’ long-running battle over patent infringement of cartridge components. The request for a response from the high court suggests that the court “may be interested in taking a case”, and Law360 added that a request for a response “makes it four times more likely that the court” will start a case.
In February Static Control waived the right to respond to Lexmark’s petition for writ of certiorari, which was issued in January. This asked for the court to recognise that “only direct competitors should be allowed to bring false advertising claims”, with Lexmark stating that Static should not, as a Sixth Circuit court previously ruled, be allowed a “reasonable interest” in protection against false advertising.
Other courts have used stricter testing for determining the standing of a company for false advertising claims, with Lexmark’s petition to the high court arguing that the Sixth Circuit “should have used stricter tests for determining Static Control’s standing”, as under one of these tests, Static would have been found “to be a ‘mere supplier’ to Lexmark’s competitors as opposed to an actual competitor”.
Lexmark argued in turn that the Supreme Court in the United States should take the case to “resolve a ‘widening circuit split’ […] the test used by the Sixth Circuit was ‘particularly expansive’ and constituted the ‘minority view’”. In Lexmark’s belief, if either of the “narrower approaches” had been applied, “it is likely that Static Control would not have standing to assert its Lanham Act counterclaims”.
Categories : Rank 1
February 19, 2013
The new printers announced by Lexmark are built on an enhanced technology platform for productivity enhancing solutions, with intuitive touch-screens and integration with the OEM’s Perceptive Software portfolio to improve efficiency and business growth.
Among the new product releases is the CX510 colour laser MFP designed for mid-sized workgroups, which the company says produces professional-quality colour thanks to its calibration technology for the PANTONE colour system and Lexmark Named Colour Replacement true colour matching.
Also included is the MX812 monochrome laser MFP, which is able to print up to 66 A4 pages per minute and deliver the first page in as quickly as four seconds; the MX611 monochrome laser MFP, which is said to be the only MFP in its class to offer an automatic in-line stapler finishing option; and the MX410, which the company states allows many companies to benefit from solutions capabilities that were previously unaffordable, including fast processor, print, copy and scan speeds.
Marty Canning, Executive Vice-President of Lexmark and President of Imaging Solutions and Services at the company, said: “The intelligence offered through Lexmark’s devices is a key differentiator, and when combined with our state-of-the-art imaging technology, we are able to provide our customers unmatched capabilities in a solutions portfolio. Our innovative, smart MFPs are the backbone of the many workflow solutions we provide, and this close marriage between our hardware and software portfolios is what gives our customers access to unavailable information and improves customer satisfaction.”
Categories : Rank 5
February 6, 2013
OEM spends 10 percent less on R&D compared to same quarter in 2011, the lowest since early 2006.
Kentucky.com reports that Lexmark has slowed spending on research and development (R&D), with the company spending $88.1 million (€65.2 million) during the fourth quarter of 2012, compared to $98.3 million (€72.7 million) in the previous year’s final quarter.
This is reportedly the lowest figure for Lexmark’s R&D spending since the first quarter of 2006, when the company spent $87.4 million (€64.65 million) before increasing spending “to broaden its product lines”. Lexmark CEO Paul Rooke explained that the drop in spending is due to the company exiting the inkjet printer business. However, he added that R&D spending is increasing in terms of its software business, commenting that “in the fourth quarter, the negative outweighed the growth in Perceptive […] we’re growing a young business here rather rapidly, and I think that will improve as time goes on”.
Also seeing growth was Lexmark’s MPS offering, with sales increasing by three percent in 4Q12 and revenue rising by seven percent overall in 2012.
The Recycler recently reported on Lexmark’s overall results for the fourth quarter of 2012, which indicated that the company’s quarterly and annual earnings had dropped to figures lower than previously estimated, with Rooke again blaming the company’s exit from the inkjet business along with an overall decrease in printing demands.
Categories : Rank 5