Lexmark 2010 Annual Report Download - page 46

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During 2010, total revenue was $4.2 billion or up 8% from 2009. Laser and inkjet supplies revenue
increased 6% year-to-year (“YTY”) while laser and inkjet hardware revenue increased 13% YTY.
During 2009, total revenue was $3.9 billion or down 14% from 2008. Laser and inkjet supplies revenue
decreased 12% YTY while laser and inkjet hardware revenue decreased 22% YTY.
Net earnings for the year ended December 31, 2010 increased 133% from the prior year primarily due to
higher operating income as well as lower restructuring-related charges, somewhat offset by acquisition-
related charges. Net earnings in 2010 included $38.6 million of pre-tax restructuring-related charges and
project costs along with $32.1 million of pre-tax acquisition-related adjustments. The Company uses the
term “project costs” for incremental charges related to the execution of its restructuring plans. The
Company uses the term “acquisition-related adjustments” for purchase accounting adjustments and
incremental acquisition and integration costs related to acquisitions. See “Restructuring and Related
Charges and Project Costs” and “Acquisition-related Adjustments” sections that follow for further
discussion.
Net earnings for the year ended December 31, 2009 decreased 39% from the prior year primarily due to
lower operating income and lower interest and other income/expense, net. Net earnings in 2009 included
$141.3 million of pre-tax restructuring-related charges and project costs in connection with the execution of
the Company’s restructuring plans.
Revenue
The following tables provide a breakdown of the Company’s revenue by product category, hardware unit
shipments and reportable segment:
Revenue by product:
(Dollars in Millions) 2010 2009 % Change 2009 2008 % Change
Laser and inkjet printers . . . $1,062.2 $ 938.8 13% $ 938.8 $1,196.8 (22)%
Laser and inkjet supplies . . . 2,914.5 2,751.8 6% 2,751.8 3,117.5 (12)%
Software and other . . . . . . . 223.0 189.3 18% 189.3 214.1 (12)%
Total revenue . . . . . . . . . . . . $4,199.7 $3,879.9 8% $3,879.9 $4,528.4 (14)%
Unit shipments:
(Units in Millions) 2010 2009 2008
Laser units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.5 1.9
Inkjetunits .................................................... 3.2 4.2 6.6
During 2010, laser and inkjet supplies revenue increased 6% YTY as growth in laser supplies more than
offset a continuing decline in inkjet supplies. Laser and inkjet hardware revenue increased 13% primarily
due to growth in laser hardware more than offsetting the decline in inkjet hardware. Software and Other,
which consists principally of hardware spare parts and related service revenue, as well as software
licenses, subscription, professional services and maintenance revenue, increased 18% YTY, reflecting the
impact of the acquisition of Perceptive Software in the second quarter of 2010.
During 2009, laser and inkjet supplies revenue decreased 12% YTYas the Company experienced declines
in both laser and inkjet supplies. Laser and inkjet hardware revenue decreased 22% primarily due to
declines in laser and inkjet units.
During 2010, 2009, and 2008, one customer, Dell, accounted for $461 million or approximately 11%,
$496 million or approximately 13%, and $596 million or approximately 13% of the Company’s total
revenue, respectively. Sales to Dell are included in the ISS reportable segment.
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