Lexmark 2010 Annual Report Download - page 16

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under SMI agreements. Any impact on future operations would depend upon factors such as ISS’ ability to
negotiate new SMI agreements and future market pricing and product costs.
Many components of ISS’ products are sourced from sole suppliers, including certain custom chemicals,
microprocessors, electro-mechanical components, application specific integrated circuits and other
semiconductors. In addition, ISS sources some printer engines and finished products from OEMs.
Although ISS plans in anticipation of its future requirements, should these components not be
available from any one of these suppliers, there can be no assurance that production of certain of ISS’
products would not be disrupted. Such a disruption could interfere with ISS’ ability to manufacture and sell
products and materially adversely affect ISS’ business. Conversely, during economic slowdowns, ISS may
build inventory of components as demand decreases.
• Backlog — ISS
Although ISS experiences availability constraints from time to time for certain products, ISS generally fills
its orders within 30 days of receiving them. Therefore, ISS usually has a backlog of less than 30 days at any
one time, which the Company does not consider material to its business.
• Seasonality — ISS
ISS experiences some seasonal market trends in the sale of its products and services. For example, ISS’
sales are often stronger during the second half of the year and ISS’ sales in Europe are often weaker in the
summer months. The impact of these seasonal trends on ISS has become less predictable.
Segment Information — Perceptive Software
• Products — Perceptive Software
Perceptive Software offers a complete suite of ECM software products and solutions.
Software
Perceptive Software ECM software products, including ImageNow document management, document
imaging and workflow, allows users to capture, process and collaborate on important documents and
information, protect data integrity throughout its lifecycle and access precise content in the context of the
users’ everyday business processes. These components are developed and maintained by Perceptive
Software.
In 2010, Perceptive Software released Retention Policy Manager, a very user friendly, yet robust, offering
to enable customers to manage the complete lifecycle of their content from creation to destruction or
disposition. It also released a new business analytics module, Business Insight, which tightly integrates
IBM Cognos to provide industry and business process dashboards, operational and ad-hoc reporting and
easy to use report design tools. In addition to these new products, significant enhancements were made to
both workflow and eForms modules.
Perceptive Software’s workflow software unlocks the full potential of an ECM system, distributing
information anywhere it’s needed across an organization. This workflow software automates
processing steps, simplifies work tasks and provides real-time monitoring to advance any document-
based business routine. The workflow software subsystem is used to create industry tailored solutions and
numerous enhancements were made to the designer component of the software related to the creation of
industry specific workflows, load balancing options for high volume scenarios, and increased notification
and collaboration features. This subsystem includes both document-centric as well as human-centric
functionality.
Perceptive Software’s eForms technology completes the capture strategy of an ECM system, enabling the
online entry and collection of raw data in electronic forms that are accessible from websites and portals.
This information is incorporated immediately into the business process, and can be used to eliminate
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