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AnonymousInactivehttp://www.kentucky.com/103/story/1140169.html
DELL IS STILL LEXMARK’s BIGGEST
CUSTOMER
Computer maker Dell
remained the top customer of Lexington-based printermaker Lexmark
International in 2009.Dell accounted for 12 percent of Lexmark’s revenue
in 2009 and was the only customer generating 10 percent or more of
revenue, Lexmark chief financial officer John Gamble Jr. told analysts
during the company’s recent fourth-quarter earnings call.Lexmark
manufactures printers for Dell, which then sells them under the Dell
brand.Dell accounted for 13 percent of revenue in 2008 and 15 percent in
2005, 2006 and 2007.
Laser hardware issues
CEO Paul
Curlander told analysts during the company’s recent earnings call that
sales of laser printers have been curtailed by issues including
component shortages.Curlander said those shortages along with
higher-than-expected demand and longer lead times from suppliers have
slowed Lexmark in fulfilling demand.He said demand for certain parts has
been higher than expected across the overall technology industry,
causing the parts shortages.”We’re very focused on trying to catch that
up …” he said. “Clearly it’s going to be some time in the first half
of 2010 before we get to where we’d like to be.”No stock
repurchases
For the first time in years, Lexmark did not
repurchase any of its outstanding stock in 2009.The company had been
aggressively buying back stock in recent years, including spending more
than $1 billion in 2005 to buy 17 million shares.The company has slowed
its purchases in recent quarters as much of its cash is overseas, and it
would have to pay a certain amount to be able to bring it back to the
United States to fund share repurchases.The company has billed the
program as a way to return value to shareholders, but some analysts have
been skeptical.”Thankfully most of the cash is overseas, making it less
likely for Lexmark to do its historical shareholder unfriendly
repurchase plans,” said Tom Carpenter, vice president and senior equity
analyst at Hilliard Lyons in Louisville.Deal inked with LG
Lexmark
has signed an agreement with electronics powerhouse LG to produce
inkjet and laser printers to be sold under the LG name in South
Korea.The deal is for that country only, though it is one of the top 10
PC markets in the world, noted Lexmark spokesman Jerry Grasso.Printers
hailed by critics
Lexmark has been calling attention to the
praise bestowed upon its recent laser and inkjet printer lines by
critics.In an internal assessment released during the earnings period,
Lexmark announced its laser printers won more than three times as many
laser awards in the United States last year as its competitors. The
company says it also received 28 percent of the U.S. industry inkjet
awards, coming in second among top manufacturers.It’s “strong
recognition of the evolution of our inkjets over the past two years,”
Grasso said. -
AuthorFebruary 15, 2010 at 10:20 AM
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