Lexmark Forecasts Second Quarter Profits To Be Below Estimates
Lexmark has forecasted second quarter profit to be largely below its estimates.
The company is up against lower demand for printers and printing services, and has forecast second-quarter adjusted earnings of 80 cents to 90 cents per share on revenue ranging from $845.1 million (£547 million) to $863.4 million, reports Reuters.
The news provider reported Credit Suisse analyst Kulbinder Garcha as saying: “While the company continues to ramp up its software and services offering, there will be a large, profitable void to fill as they exit the inkjet segment of the printing market over the next few years.”
Lexmark’s imaging division recently fell to 13 per cent to $840 million, though it represented 96 per cent of the business’ revenue last year.
In January, Lexmark bought Acuo Technologies in an effort to support its growth and boost software capabilities.
Acuo Technologies will enable customers to deploy an enterprise-wide access platform for clinical content via an electronic medical record.
Posted by Johnny McMaster.