(Corrects paragraph 5 to say Lexmark's revenue beat, not
misssed, expectations, removes reference to "weak demand".)
* Sees second-quarter adj. EPS $0.80-$0.90 vs est $0.89
* Sees second-quarter rev. $845.1 mln-$863.4 mln vs est
* First-quarter adj. EPS $0.88 vs est $0.87
* First-quarter rev. $884.3 mln vs est $873.6 mln
April 23 Lexmark International Inc
forecast current-quarter adjusted profit largely below analysts'
estimates as it grapples with lower demand for its printers and
The company forecast second-quarter adjusted earnings of 80
cents to 90 cents per share on revenue of $845.1 million to
Analysts on average were expecting earnings of 89 cents per
share on revenue of $846.3 million, according to Thomson Reuters
Printer makers are struggling with falling sales as printing
has been a target of corporate cost cutting and personal
computing has moved to tablets and smartphones.
Lexmark's first-quarter revenue beat expectations, while
larger rival Xerox Corp's first-quarter revenue came in
below estimates on Tuesday.
Hardware companies such as Xerox, HP Co, EMC Corp
and Dell Inc were expected to come out with
weak results after IBM Corp's disappointing results last
week, particularly in its hardware business.
Lexmark, which is shifting to higher value printing services
and software products, announced its exit from the inkjet
printer business last August.
"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," Credit Suisse analyst Kulbinder Garcha
wrote in a pre-earnings note.
Lexmark's imaging division, which includes its laser
printers, software and managed print services business, fell to
13 percent to $840 million. The division accounted for 96
percent of the company's revenue last year.
Net income fell to $34.8 million, or 54 cents per share, in
the first quarter, from $61 million, or 84 cents per share, a
Excluding items, earning were 88 cents per share.
Revenue fell to $884.3 million.
Analysts on average expected earnings of 87 cents per share
on revenue of $873.6 million, according to Thomson Reuters
Shares of the Lexington, Kentucky-based company closed at
$25.45 on the New York Stock Exchange on Monday.
(Reporting by Supantha Mukherjee and Lehar Maan in Bangalore;
Editing by Supriya Kurane)