LEXMARK’S CEO DEFENDS DELL RELATIONSHIP

[Anonymous]

Lexmark CEO Touts New Inkjets,
Defends Dell Relationship

 

As Lexmark works to expand its presence in the
inkjet space, revenue from consumables is keeping the company on a growth track,
CEO Paul Curlander said Thursday.

In a presentation at the Sanford C. Bernstein & Co. Strategic Decisions
Conference in New York, Curlander said Lexington, Ky.-based Lexmark maintains a
21.5 percent global share in the inkjet market, second only to Hewlett-Packard’s
40.5 percent share.

To help grow its market presence, Lexmark on Thursday unveiled two low-end
products, geared primarily for the consumer space: the Lexmark X2350 All-In-One
multifunction device, which costs $69 after a rebate, and the Lexmark Z735 color
printer, which runs $49.99 after a rebate.

Though low-price hardware and the price-aggressive market helped cause
Lexmark to miss Wall Street analysts’ financial expectations in its most recent
fiscal quarter, Curlander said the company has been able to outperform most
competitors in recent years because of its non-hardware business.

“The reason Lexmark is doing better than other companies in general is our
business model,” he said. “We’re not just selling printers, but importantly
we’re selling aftermarket supplies, which is the most profitable and consistent
portion of our business.”

Curlander also defended Lexmark’s OEM partnership with Dell, which he said
has helped boost his company’s market presence.

“I think it’s been a good partnership for the two of us. I think we have
strengths that complement each other. They are a world-class company and,
whenever we work with a world-class company, we learn from them,” he said.

“In addition to being a tremendous developer and manufacturer of products,
they are a very strong channel into the marketplace,” Curlander added about the
Dell partnership. “I think that Lexmark’s technology is very strong. I’ve always
felt we’re underrepresented in the market.”

[Author]

June 9, 2005 at 9:45 AM