Lexington, KY – Lexington-based printer and software company Lexmark saw earnings in the fourth quarter of $.10 per share and $1.53 for the year.
“Our fourth quarter financial results were highlighted by revenue that exceeded expectation, solid cash flow generation, and ongoing growth in Perceptive Software and managed print services revenue," Paul Rooke, Lexmark chairman and chief executive officer said in a release.
"We missed on the earnings per share line, but it was largely due to these tax effects, we think operationally we were on our expectations," Rooke added in a conversation with Business Lexington.
The company took a hit in the final quarter of 2012 as a result of the past last minute tax negations, that pushed tax credits to a different quarter.
The company brought in $968 million in the quarter, down from $1.061 billion in the same quarter of 2011.
The fourth quarter earnings would have been at $.61 per share as earnings were shaved in restructuring and acquisition costs.
For the year, Lexmark earned $1.53 per share, down from $4.12 in 2011. The earnings would have earned $3.51 for the year if not for restructuring and acquisition costs.
Also in 2012, Lexmark exited the consumer aimed inkjet printer division, which Rooke said had a negative impact on earnings. "The inkjet exit will continue to be a headwind for us in 2013," he said.
Earlier this month, in the first quarter of 2013, Lexmark announced it had acquired Acuo Technologies, LLC, a Minneapolis-based company that specializes in streamlining healthcare imaging on to one system to further grow its software business as a part of Perspective Software, a Lexmark company based in suburban Kansas City.
Rooke said he expects to see continued growth and profitability from the software expansion in the new year.
"On the profit perspective (the software side of the business) hasn’t contributed, in fact it has had some losses in 2012, largely because we’re investing ahead of revenue. We’re operating it for growth, not profit. As we’re shifting into 2013 we’re going to improve that," he said.
Also in the fourth quarter of 2012, Lexmark saw:
Record full year gross profit margin percentage for fourth consecutive year.
Cash from operations of $138 million in the quarter, $413 million in full year.