Lexmark 2008 Annual Report Download - page 41

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Revenue
The following tables provide a breakdown of the Company’s revenue by product category, hardware unit
shipments and market segment:
Revenue by product:
(Dollars in Millions) 2008 2007 % Change 2007 2006 % Change
Laser and inkjet printers . . . $1,196.8 $1,498.3 (20)% $1,498.3 $1,663.0 (10)%
Laser and inkjet supplies . . . 3,117.5 3,248.6 (4)% 3,248.6 3,211.6 1%
Other . . . . . . . . . . . . . . . . . . 214.1 227.0 (6)% 227.0 233.5 (3)%
Total revenue . . . . . . . . . . . . $4,528.4 $4,973.9 (9)% $4,973.9 $5,108.1 (3)%
Unit shipments:
(Units in Millions) 2008 2007 2006
Laser units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9 2.1 2.1
Inkjet units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6 12.1 14.7
During 2008, laser and inkjet supplies revenue decreased 4% YTY as growth in laser supplies was more
than offset by a decline in inkjet supplies. Laser and inkjet hardware revenue decreased 20% primarily due
to declines in laser and inkjet units.
During 2007, laser and inkjet supplies revenue increased 1% YTY as good growth in laser supplies was
mostly offset by a decline in inkjet supplies. Laser and inkjet hardware revenue decreased 10% primarily
due to a decline in inkjet units.
During 2008, 2007 and 2006, one customer, Dell, accounted for $596 million or approximately 13%,
$717 million or approximately 14% and $744 million or approximately 15%, of the Company’s total
revenue, respectively. Sales to Dell are included in both PSSD and ISD.
Revenue by division:
(Dollars in Millions) 2008 2007 % Change 2007 2006 % Change
PSSD . . . . . . . . . . . . . . . . . $2,981.6 $2,999.2 (1)% $2,999.2 $2,869.1 5%
ISD . . . . . . . . . . . . . . . . . . . 1,546.8 1,974.7 (22)% 1,974.7 2,239.0 (12)%
Total revenue . . . . . . . . . . . . $4,528.4 $4,973.9 (9)% $4,973.9 $5,108.1 (3)%
PSSD
During 2008, revenue in PSSD decreased $18 million or 1% compared to 2007 due to a 9% decline in laser
hardware revenue, partially offset by growth in laser supplies revenue. The lower laser hardware revenue
was due to lower unit volume and aggressive pricing, partially offset by a positive currency impact and
positive mix of workgroup and MFP devices. Laser hardware unit shipments decreased approximately 7%
YTY primarily due to lower OEM units, partially offset by unit growth in laser MFPs. Laser hardware AUR,
which reflects the changes in both pricing and mix, decreased approximately 2% YTY due to aggressive
pricing, partially offset by a positive currency impact.
During 2007, revenue in PSSD increased $130 million or 5% compared to 2006 due to growth in laser
supplies revenue partially offset by a 2% 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 increased approximately 1% YTY due to the positive mix shift.
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