Lexmark 2007 Annual Report Download - page 42

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Revenue by market segment:
(Dollars in Millions) 2007 2006 % Change 2006 2005 % Change
Business . . . . . . . . . . . . . . . $2,999.2 $2,869.1 5% $2,869.1 $2,774.8 3%
Consumer . . . . . . . . . . . . . . 1,974.7 2,239.0 (12)% 2,239.0 2,446.7 (8)%
Total revenue. . . . . . . . . . . . $4,973.9 $5,108.1 (3)% $5,108.1 $5,221.5 (2)%
Business segment
During 2007, revenue in the Business segment increased $130 million or 5% compared to 2006 due to
growth in laser supplies revenue partially offset by a decline in laser hardware revenue. Laser hardware
unit shipments decreased approximately 3% YTY reflecting strong unit growth in laser MFPs and branded
workgroup printers which was more than offset by a decline in low-end monochrome lasers. Laser
hardware AUR, which reflects the changes in both pricing and mix, increased approximately 1% YTY due
to the positive mix shift.
During 2006, revenue in the Business segment increased $94 million or 3% compared to 2005 principally
due to higher laser supplies revenue. Laser hardware unit shipments increased approximately 9% YTY
with strong growth in branded unit sales partially offset by declines in OEM unit sales. Laser hardware AUR
decreased approximately 9% YTY reflecting price declines and a mix shift to low-end monochrome lasers.
Consumer segment
During 2007, revenue in the Consumer segment decreased $264 million or 12% compared to 2006 due to
decreased inkjet hardware and supplies revenue. Hardware revenue declined YTY due to lower unit
shipments and lower AURs. Inkjet hardware unit shipments declined 18% YTY principally due to declines
in OEM units and the Company’s decision to prioritize certain markets, segments and customers and to
reduce or eliminate others. Units were also impacted by the Company’s decision to focus on more
profitable printer placements in every geography. Inkjet hardware AUR decreased 3% YTY as price
declines were partially offset by a favorable mix shift to AIOs.
During 2006, revenue in the Consumer segment decreased $208 million or 8% compared to 2005 primarily
due to decline in inkjet hardware units. Inkjet unit shipments decreased approximately 20% YTY. Inkjet
hardware AUR increased approximately 2% YTY as a favorable product mix shift to AIOs was partially
offset by price declines.
Revenue by geography:
The following table provides a breakdown of the Company’s revenue by geography:
(Dollars in Millions) 2007 2006 % Change 2006 2005 % Change
United States. . . . . . . . . . . . $2,140.3 $2,245.3 (5)% $2,245.3 $2,360.5 (5)%
EMEA (Europe, the Middle
East & Africa). . . . . . . . . . 1,827.2 1,843.1 (1)% 1,843.1 1,853.8 (1)%
Other International. . . . . . . . 1,006.4 1,019.7 (1)% 1,019.7 1,007.2 1%
Total revenue. . . . . . . . . . . . $4,973.9 $5,108.1 (3)% $5,108.1 $5,221.5 (2)%
During 2007, revenue decreased in all geographies primarily due to the previously-mentioned decline in
Consumer segment revenues. Currency exchange rates did have a material favorable impact on revenue
in Europe and Other International geographies during 2007.
During 2006, revenue decreased in the U.S. primarily due to the decline in inkjet hardware units. Currency
exchange rates did not have a material impact on revenue in Europe and Other International geographies
during 2006.
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