The market is moving to Lexmark.
The continuing growth of online data and the ease and affordability of high-speed Internet access is driving more and more information directly to users, who are printing an ever increasing amount of it on distributed printing devices like ours. As this information management technology is leveraged across every core business process, we expect it to drive significant changes. Currently, more than 60 trillion pages of information are printed each year in various formats — books, magazines, pre-printed forms, newspapers, bills and so on — and then transported in paper form.
While it's easy to believe this output will continue to increase, it is Lexmark's view that the world's total paper consumption may have peaked. We don't expect books, magazines — and especially bills — to disappear, but many of those pages will instead begin to be delivered electronically, to be printed by the user when and where they want to optimize their personal productivity. We believe distributed printing in the home or office will rise from about 5 percent of those 60 trillion pages to 10 to 15 percent by 2010. That's a compound growth rate of 7 to 12 percent. The market is clearly moving to distributed printing — and that's Lexmark's business.
More than half of Lexmark's revenue comes from our supplies annuity.
Our business model has enabled us to consistently grow revenue and make a profit — even during each quarter of 2001, a year that was especially challenging for technology companies. Our steadily growing installed base of printers, aided by the market's shift to distributed printing, is expected to result in a demand for supplies that grows at an even faster rate than printer shipments. In turn, the higher gross margin on supplies provides earnings to reinvest in the research and development of new low-cost, high-value solutions for our customers. |
| |
|
|
| |
 |
| |
Gary Morin | Executive vice president and CFO
Kathy Affeldt | Vice president, Human Resources
Vinny Cole | Vice president, general counsel and secretary |
| |
| |
 |
| |
| Lexmark's revenue rose 9 percent in 2001 to $4.143 billion, following an increase of 10 percent to $3.807 billion in 2000. |
| |
|
