Lexmark 2010 Annual Report Download - page 4

We also introduced the new Lexmark Genesis inkjet all-in-one (AIO), featuring our unique and innovative verti-
cal design and a new flash scan camera technology. The new flash scan enables instant scan previews to the
color touch screen and can transfer a page from document to digital in as few as three seconds. This exciting
new AIO was recently named a 2011 CES Innovation Award recipient.
We outperformed our competition
Lexmark gained market share in our key focused segments of workgroup laser and business inkjet and, overall,
our revenue growth outperformed the industry.
We believe our improved product line and path to market resulted in about two times the industry average
revenue growth. We had good growth in both our color laser and laser MFP units. Our managed print service
business grew rapidly as we continued to help our enterprise customers optimize their output environment and
improve their paper-based workflows.
In 2010 Lexmark once again gained market share in our target segment of branded A4 workgroup laser. Contin-
ued growth in this segment is important to our long-term success as workgroup lasers drive significantly more
supplies consumption than low end lasers.
Our inkjet products introduced in 2009 received a positive reception in 2010 as we continued Lexmark’s expan-
sion in U.S. office superstores. The strong growth in retail sell out of our Professional Series products enabled
us to gain branded unit share here.
Lexmark continued to be a recognized leader in the industry through awards and industry recognition. Accord-
ing to our internal assessment for 2010 in the U.S., Lexmark received 24 percent of the industry laser and inkjet
awards, almost double the number for the next closest competitor.
We improved upon our already strong financial position
Financially, Lexmark delivered strong revenue growth, greatly expanded our operating income margin, and
significantly grew earnings per share. For the year, net cash from operations was more than $500 million,
marking the ninth consecutive year exceeding $400 million, and the 18th consecutive year of positive cash
flow for the company.
We ended 2010 maintaining our strong financial position with more than $1.2 billion in cash and current market-
able securities. These results were achieved through our stronger product portfolio and a leaner, more efficient
cost and expense infrastructure.
Our people make the difference
I am extremely proud of our talented and committed teams across the globe. Despite a difficult economic
climate, our employees stayed focused on our customers and worked hard to earn their loyalty by listening to
them, anticipating their needs, and creating value in their eyes.
As we celebrate our 20th anniversary and a successful 2010, we want to acknowledge Paul Curlander, who will
retire from Lexmark and the Board of Directors on April 30, 2011.
Paul has been a large part of Lexmark since our inception as a company in 1991. He was Lexmark’s first gen-
eral manager of our printer business in the early 1990s as we were beginning to build our imaging business,
became CEO in May of 1998 and chairman of the Board of Directors in April of 1999. Paul has made many
significant contributions to our success over the last 20 years, including his vision and leadership in investing in
a portfolio of technology, products, solutions, services and software that leave us well positioned for the future.
On behalf of the entire Lexmark family, I would like to thank Paul for his leadership and passion for our business
and our customers.
I’d like to also thank you, our customers, business partners, employees and investors, for your continued support.
I truly believe our best is yet to come.
Sincerely,
Paul Rooke
President and CEO
Lexmark International, Inc.