Lexmark 2011 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2011 Lexmark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

Lexmark a Growing Provider of End-to-End Solutions
Through Perceptive Software, we are competing and expanding our presence in the high growth enterprise
content management (ECM) and business process management (BPM) software markets, considerably
strengthening our ability to provide end-to-end industry-specific workflow solutions.
In October, Lexmark purchased the Netherlands-based BPM provider, Pallas Athena, and integrated it into
Perceptive Software, notably expanding our overall ECM and BPM software offerings and European presence.
Through our expanding MPS business and Perceptive Software, we are creating a strong, growing software
and services business at Lexmark.
Lexmark’s Core is Strong and Growing
As a result of our strategy and the actions we are taking, we saw revenue growth in the core. This core
growth was driven by stronger growth in core supplies, MPS, high end hardware, and software revenue.
We believe the growth we’re seeing in our core through MPS and business process solutions proves that our
value proposition resonates strongly with customers as they look for ways to save time and money.
Lexmark’s overall revenue in 2011, however, was dampened by the anticipated decline in legacy revenue,
primarily the trailing supplies from our former consumer inkjet business, which represented only 10 percent
of Lexmark’s fourth quarter 2011 revenue.
Focused on Delivering Value to Our Shareholders
We also remain focused on delivering value to our shareholders. We continue to shift and focus our talent
and resources on solutions targeting business customers while aggressively building and growing our
software offerings.
During 2011, we announced our capital allocation framework indicating our plan to return more than 50
percent of our free cash flow to shareholders, on average, through dividends and share repurchases. In 2011,
we paid our first dividend to shareholders and repurchased $250 million of our shares. We remain confident
in Lexmark’s ability to continue to generate positive free cash flow as we have in each of the past 10 years.
Our People Make the Difference
I am extremely proud of our talented employees around the world who are committed to our vision of Customers
for Life. In 2011, we celebrated our 20th anniversary by not only reflecting on our past, but also envisioning our
future. We have built our company around the fundamentals of listening carefully and anticipating the needs of
our customers - working to create innovative, industry-specific, customer-specific solutions. While technology
will continue to evolve, these Lexmark fundamentals won’t change.
To our customers, our investors, our business partners and our employees, thank you for your continued support.
Sincerely,
Paul Rooke
Chairman and CEO
Lexmark International, Inc.