Lexmark International today announced record financial results for the first quarter of 2003. First-quarter revenue was $1.108 billion, up 6% from the same period in 2002. Net earnings per share were a record 73c, up 36% from the year-ago quarter.
"Lexmark continues to report record financial results despite a slow technology market and a sluggish economy," stated Paul J Curlander, chairman and CEO. "The consistency of our results again demonstrates the strength and stability of our supplies-driven business model."
Lexmark`s revenue for the first quarter ended 31 March 2003 was $1.108 billion, up 6% from $1.050 billion in the same period of 2002, and was positively impacted 7% from foreign currency translation. Laser and inkjet supplies revenue was $642 million, a 17% increase over $546 million a year ago, and now represents 58% of total revenue, up from 52% in the prior-year quarter.
Laser and inkjet printer revenue was $370 million, down 8% from $401 million in the first quarter of 2002.
Gross profit was $356 million or 32.1% of revenue for the quarter, versus $310 million or 29.5% a year ago. The improvement in gross profit margin was due to an increase of supplies in the product mix and higher supplies margins, somewhat offset by lower printer margins.
Operating expense was $228 million compared to $205 million in the prior year. Operating income for the first quarter was $129 million or 11.6% of revenue versus $105 million or 10.0% of revenue a year earlier. Net earnings were $95 million in the first quarter, up 32% from $72 million reported a year ago. Diluted net earnings per share for the period were 73c, an increase of 36% from 53c in the same period of 2002.
Lexmark`s debt-to-total-capital ratio at 31 March 2003 was 11%, down from 13% at 31 December 2002. Net cash provided by operating activities was $237 million versus $115 million a year earlier. Capital expenditures were $16 million in the first quarter.
"As we look forward to the second quarter, we believe the strength and appeal of our imminent new product announcements, coupled with the power of our supplies annuity, will keep us well-positioned for growth," stated Curlander. "However, we remain cautious due to softness in corporate and consumer spending and aggressive pricing competition. In the second quarter of 2003, we expect a year-over-year revenue growth rate in the low- to mid-single digits and earnings per share to be in the range of 70c to 80c, versus 67c reported in 2002."
A full copy of the financial numbers is available on request.
For further information, please contact Cathy Steyn at tel (011) 329 0999; fax (011) 792 7449; e-mail cathryn.steyn@lexmark.co.za
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Lexmark International, Inc is a leading developer, manufacturer and supplier of printing solutions - including laser and inkjet printers, associated supplies and services - for offices and homes in more than 150 countries. Founded in 1991, Lexmark reported more than $4.4 billion of revenue in 2002, and can be found on the Internet at www.lexmark.com.
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