Lexmark forecasts Q4 revenue drop

Reuters writes.

The company, whose shares fell 6% in early trading, forecasted fourth-quarter adjusted earnings of $1.15 to $1.25 per share, with revenue falling 4% to 6%. Based on 2010 revenue of $1.10 billion, that would yield a 2011 forecast of $1.04 billion to $1.06 billion.

According to The Wall Street Journal, Lexmark, as with other printing companies, including rival Xerox, has been placing a heavier focus on providing so-called managed print services to help offset headwinds in traditional hardware and supplies businesses. Under such services, printing companies are typically contracted to provide the entirety of a customer's printing needs, from machines and ink, to consulting on reducing costs.

Lexmark reported a profit of $67 million, or 86c a share, down from a year-earlier profit of $72 million, or 90c a share. Excluding acquisition and restructuring-related charges, earnings slipped to 95c from $1.09 a year earlier.

Courier Journal reports that John Gamble, the company's CFO, said that while Lexmark does not have facilities in Thailand, a number of its suppliers are hurt by the crisis. The effect of hardware availability will be $10 million, or about 1% of total revenue, in the fourth quarter.