Lexmark 2010 Annual Report Download - page 11

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• Advancing and growing the Company’s managed print services business; and
• Expanding the Company’s rate of participation in market opportunities and channels.
ISS’ strategy requires that it provide an array of high-quality, technologically-advanced products and
solutions at competitive prices. ISS continually enhances its products to ensure that they function
efficiently in increasingly-complex enterprise network environments. It also provides flexible tools to
enable network administrators to improve productivity. ISS’ target markets include large corporations,
small and medium businesses (“SMBs”), SOHO, and the public sector. ISS’ strategy requires that it
continually identify and focus on industry-specific print and document process-related issues so that it can
differentiate itself by offering unique industry solutions and related services. With the introduction of new
laser products that began in the fall of 2008 and continued through 2010, ISS has announced products that
represent the most extensive series of laser product introductions in the Company’s history. The new
product introductions have significantly strengthened the breadth and depth of ISS’ workgroup laser line,
color laser line and laser MFPs. ISS also continues to invest in product and solution development as well as
solution sales related to business inkjet products. This investment has led to new inkjet products and
solutions aimed at targeted growth segments as well as a pipeline of future products.
Because of ISS’ focus on printing and document process solutions, the Company has formed alliances and
OEM arrangements to pursue incremental business opportunities through its alliance partners.
The acquisition of Perceptive Software enhances Lexmark’s capabilities as a document solutions provider,
expands the Company’s market opportunity, and provides a core strategic component for Lexmark’s
future. Perceptive Software’s strategy is to deliver affordable, industry and process specific solutions
through deep industry expertise and a broad ECM software platform, in a model that is easy to integrate,
use, and support. Key strategic initiatives of Perceptive Software include:
• Advancing and growing the Company’s ECM business internationally;
• Expanding and strengthening the Company’s ECM product line; and
• Expanding the Company’s rate of participation in ECM market opportunities.
Segment Information — ISS
• Products — ISS
ISS offers a broad portfolio of monochrome and color laser printers, laser MFPs and inkjet AIOs along with
innovative software solutions and managed services to help businesses efficiently manage and share
information. ISS’ laser and inkjet products are core building blocks for enabling information on demand.
They are designed to accelerate business processes by providing people with the information they need —
on paper or electronically — securely, reliably and cost-effectively.
Monochrome Laser
Within the single-function laser printer category, ISS continues to offer its successful E Series, which
includes the Lexmark E260, E360 and E460 Series for small to midsize workgroups. For medium to large
workgroups, ISS continues to offer both the Lexmark T650 Series and the Lexmark W850 Series. The
T650 Series includes the innovative Lexmark T656dne, the industry’s first single-function monochrome
A4 (8.5 inch x 11 inch) laser printer with a touch screen, which lets users easily access preloaded solution
applications in addition to basic functions. The W850 Series provides departmental workgroups with
A3 (11 inch x 17 inch) paper support and robust finishing options.
ISS’ monochrome MFP line ranges from versatile low-end and midrange workgroup models to high-end
devices equipped with ISS’ smart MFP architecture and e-Task touch screen. For individual users and
small workgroups, ISS continues to offer the Lexmark X200 Series, the Lexmark X264dn, and the Lexmark
X360 Series. For medium and large workgroups, ISS continues to offer the high-performance, solutions-
enabled Lexmark X460 Series, Lexmark X650 Series, and A3-capable X860 Series.
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