Lexmark 2011 Annual Report Download - page 51

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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) 2011 2010 % Change 2010 2009 % Change
Laser and Inkjet Hardware ...... $ 989.0 $1,062.2 -7% $1,062.2 $ 938.8 13%
Laser and Inkjet Supplies ....... 2,911.8 2,914.5 -0% 2,914.5 2,751.8 6%
Software and Other ............ 272.2 223.0 22% 223.0 189.3 18%
Total revenue ................. $4,173.0 $4,199.7 -1% $4,199.7 $3,879.9 8%
Unit shipments:
(Units in Millions) 2011 2010 2009
Laser units ........................................................... 1.6 1.7 1.5
Inkjet units ........................................................... 2.0 3.2 4.2
During 2011, supplies revenue was essentially flat YTY as growth in core laser and inkjet supplies was
offset by a continuing decline in legacy inkjet supplies. Hardware revenue decreased 7%, primarily
reflecting a decline in legacy consumer inkjet hardware, but also reflecting a smaller decline in core
hardware. For core hardware, growth in high-end core hardware was more than offset by declines in
low-end core 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 22% YTY reflecting strong growth in Perceptive Software offset by
declines in parts and service ISS revenue. The 2011 results for Perceptive Software reflect full year
financial results while 2010 results reflect activity occurring after Perceptive Software was acquired on
June 7, 2010. As indicated earlier, the Company uses the term “legacy” to include hardware and
supplies for consumer inkjet platforms. “Core” excludes legacy and includes laser, business inkjet, and
dot matrix hardware and supplies and the associated features and services sold on a unit basis or
through a managed services agreement. Core also includes parts and service related to hardware
maintenance and includes software licenses and the associated software maintenance services sold
on a unit basis or as a subscription service. The Company’s focus continues to be on growing its core
business while legacy continues to become a less significant portion of the Company’s revenue mix.
During 2010, supplies revenue increased 6% YTY as growth in laser supplies more than offset a
continuing decline in inkjet supplies. Hardware revenue increased 13% primarily due to growth in laser
hardware more than offsetting the decline in inkjet hardware. Software and Other revenue increased
18% YTY reflecting the impact of the acquisition of Perceptive Software in the second quarter of 2010.
During 2011, 2010, and 2009, one customer, Dell, accounted for $415 million or approximately 10%,
$461 million or approximately 11%, and $496 million or approximately 13% of the Company’s total
revenue, respectively. Sales to Dell are included in the ISS reportable segment.
Revenue by reportable segment:
(Dollars in Millions) 2011 2010 % Change 2010 2009 % Change
ISS ......................... $4,078.2 $4,162.4 -2% $4,162.4 $3,879.9 7%
Perceptive Software ........... 94.8 37.3 154% 37.3 — N/A
Total revenue ................. $4,173.0 $4,199.7 -1% $4,199.7 $3,879.9 8%
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