Lexmark 2010 Annual Report Download - page 3

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Paul Rooke
President and CEO
To my fellow shareholders,
I am honored to serve as Lexmark’s third chief executive officer. Lexmark will celebrate its 20th anniversary on
March 27, 2011, and I am excited about leading our talented and dedicated team into the years ahead.
2010 was a very good year for Lexmark during which we executed on our strategy, invested in our future, out-
performed the competition and improved upon our already strong financial position.
Financially, Lexmark delivered strong revenue and earnings per share growth in 2010. We generated cash from
operating activities of more than half a billion dollars, marking the ninth consecutive year we have generated
more than $400 million.
Strategically, Lexmark acquired Perceptive Software, a leading provider of enterprise content management
(ECM) software. Perceptive Software will play a key part in growing our software and services business.
We also combined our two printing organizations, the Printing Solutions and Services Division (PS&SD) and the
Imaging Solutions Division (ISD), into a unified team named Imaging Solutions and Services (ISS). This combi-
nation will enable us to bring more value to our customers, more consistency to our offerings, and improve our
market approach across the full range of imaging solutions and services we provide.
The formation of ISS and the acquisition of Perceptive Software support Lexmark’s strategy of helping busi-
nesses of all sizes by offering them products, solutions and services that enable them to save time and money.
We continued the successful execution of our strategy
Our strong 2010 results were driven by the execution of our strategy to focus on growing our workgroup laser and
business inkjet products, and were enhanced by the following actions we have taken over the last several years:
• Expanding and strengthening our laser product line particularly in color lasers
and laser multifunction products (MFPs)
• Repositioning our inkjet technology to focus on higher usage business customers
• Significantly expanding our sales in office superstores
• Advancing our managed print services and strengthening our industry workflow solutions capabilities
• Restructuring actions taken to position ourselves as a leaner, more focused company worldwide
Our success in these key initiatives leaves us well positioned as the global economy continues to recover.
We invested in our future
We closed on the acquisition of Perceptive Software in June. Perceptive Software builds upon and strength-
ens Lexmark’s industry workflow solutions while adding strong content management solutions and services.
It expands Lexmark’s market opportunity by adding a complementary software business to our core imaging
business. Our strategy is to accelerate Perceptive Software’s growth by leveraging Lexmark’s global infrastruc-
ture and lead generation capability.
Also in 2010, we introduced the new 50page-per-minute X792 Series of color laser MFPs, bringing our count of
new laser products introduced to 89 since 2008. This A4 color laser MFP Series strengthens Lexmark’s strategy
of disrupting large A3 copiers in the marketplace, offering our customers a space-saving design with full func-
tions and features that offer a lower total cost of ownership.