Lexmark To Move Out Of Inkjet Market
Ink company Lexmark has confirmed that it will stop developing printers in an effort to focus on its imaging and software businesses.
The move has seen its shares jump by 20 per cent, but the printer ink specialist has maintained that it will continue to sell laser printers, according to Reuters.
A representative noted that Lexmark had been recommended by Goldman Sachs to consider dropping out of the inkjet market, where it has around 1,000 patents across the world.
Reuters has reported chief executive Paul Rooke as saying in a conference call: "We plan to continue using part of the free cash flow to accelerate growth in the software business through acquisitions."
Earlier this month, Mr Rooke told the Lexington Herald-Leader that inkjet printers are "driving the big declines" at Lexmark, as opposed to the firm's smaller laser hardware.
He went on to say that he expects ink cartridges for older printers to remain available through stores.
Posted by Barry Ashmore.