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 : Products and Technology