Lexmark 2013 Annual Report Download - page 3

Paul Rooke
Chairman and CEO
To My Fellow Shareholders,
As I reect back on 2013, I am pleased with Lexmark’s progress this year and with our momentum as we enter 2014.
Over the year, we further sharpened our solutions focus. We invested in our hardware, software and services
platforms to strengthen our solutions value proposition. The acquisitions we made throughout 2013 dramatically
increased our software and solutions capabilities. These capabilities, when coupled with Lexmark’s industry-
leading output and eet management technology, enabled Lexmark to achieve record revenue in both managed
print services (MPS) and Perceptive Software for the year, each growing at double-digit rates.
While we are pleased with this progress, we have more to do to realize our vision of being a leading provider
of unstructured information solutions. Lexmark remains focused on our customers, and we are excited about
leveraging our capabilities to further strengthen existing relationships and win new customers in 2014 and beyond.
Solutions Expansion, Customer Success and Industry Recognition
Building on our core strength of output management technology, Lexmark has added a broad portfolio of
content and process management technologies that together comprise the key technologies to solve business
customers’ unstructured information challenges.
We dene unstructured information as coming in two primary forms. First, digital information: word processing
and spreadsheet les, email, chat and social messaging, and rich media le types like images, audio and video.
Second, paper-based information: mail, memos, notes and documents buried in mailrooms, ling cabinets and
stacks of folders.
Lexmark is focused on helping customers capture and connect this unstructured content to their core systems
and applications. By doing so we enable our customers to connect this information to the people in their orga-
nizations that need it most, enabling the accuracy and timely completion of business processes while simulta-
neously enhancing productivity and delivering hard and soft cost savings.
We’re accelerating our solutions growth with the synergies we’re creating between the Imaging Solutions
and Services (ISS) and Perceptive Software units. ISS is leveraging its global large account presence, MPS
leadership, industry expertise, and global infrastructure to open doors and grow our Perceptive Software
solutions more quickly, deepening Lexmark’s overall penetration into these accounts. These are generally
accounts that have been with Lexmark for a number of years and have come to trust us to deliver productivity
gains and savings for them. They are counting on us to bring them additional productivity gains and savings.
Similarly, Perceptive Software’s expanding software capabilities and industry presence in healthcare, higher
education, and back oce operations is further dierentiating and growing our managed print solutions
quicker, also deepening our penetration into these accounts.
As proof of these synergies, we are winning software solution deals in ISS accounts across a range of industry
segments. In fact, for 2013, we won more than 40 new capture, content and process software deals across a
range of ISS retail, manufacturing, banking, insurance, government, healthcare and education accounts, and
our sales funnel continues to strengthen. We are also beginning to see the reverse happen as well, where ISS is
winning MPS deals in Perceptive Software healthcare accounts. As we expand our solutions oerings and build
more customer references, we expect these synergies to continue to grow.