Lexmark results beat estimates on higher software, services revenue
(Reuters) - Printer maker Lexmark International Inc (LXK.N) reported better-than-expected quarterly results on higher revenue from its services and software businesses.
Lexmark shares were up 6 percent at $36.69 in premarket trading.
Revenue from the company's Perceptive software business grew 34 percent in the second quarter to $59 million, while revenue from managed print services grew 12 percent to $170 million.
Analysts expect the Perceptive software business, which Lexmark acquired three years ago, to drive growth.
The business accounted for 6.6 percent of total revenue in the second quarter, with the rest coming from its imaging division consisting of laser printers, software and managed print services business.
Lexmark exited its inkjet printer business last year in a bid to shed the image of being a printer company and to focus on more lucrative Perceptive software and services businesses.
April-June revenue fell 3.4 percent to $887 million.
Net income rose to $88.9 million, or $1.39 per share, from $39.2 million, or 55 cents per share, a year earlier.
Excluding items, the company earned 95 cents per share.
Analysts on average had expected earnings of 88 cents per share on revenue of $859 million, according to Thomson Reuters I/B/E/S.
Lexmark had said it expected the impact of its exit from inkjet printer business, announced last August, to continue into 2013 and beyond.
The company on Tuesday forecast third-quarter adjusted earnings of 85 cents-95 cents per share. It said it expects revenue to decrease 4 to 6 percent. Analysts were expecting earnings of 94 cents per share.
Lexmark shares closed at $34.57 on the New York Stock Exchange on Monday.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)