LEXINGTON, Ky., Oct. 21, 2014 — Lexmark International, Inc. today announced financial results for the third quarter of 2014.
"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," said Paul Rooke, Lexmark chairman and chief executive officer. "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.
"The acquisition of ReadSoft further broadens Lexmark's solutions capabilities and reach, and supports our target of generating Perceptive Software revenue of $500 million in 2016," added Rooke. "This acquisition demonstrates the disciplined execution of our capital allocation framework, which fuels Lexmark's transformation and rewards our shareholders through the ongoing return of capital."
Other third-quarter results:
– Revenue growth of 3 percent and EPS both exceeded guidance range
– Revenue excluding Inkjet Exit grew 6 percent, sixth consecutive quarter of growth
– MPS and Perceptive Software combined revenue grew 21 percent (20 percent non-GAAP)
– Generated strong free cash flow of $87 million
– Expanded solutions capabilities and reach with acquisition of ReadSoft
– Share repurchases and dividends totaled $40 million