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Some light in the sky for Lexmark

Issue #0813/2 - It is with some irony that news has broken today that Lexmark has won a long-term (5-year) contract with the U. S. Air Force for supply of laser printers, MFPs, consumables, service and support at its bases around the world.

Not the latest inkjet spitting ink!NOT the latest inkjet spitting ink!
One of the primary reasons Lexmark was chosen as the supplier is said to be that the company has a ‘thorough’ approach to Total Cost of Ownership. The Air Force expects that the global hard copy saving under the new contract will be $40m – a sum that will help in the recapitalisation of its aircraft fleet.
This would indicate that the total contract value could be in the region of $120m to $160m over five years.

As indicated in this week’s primary article , Lexmark’s strengths certainly lie in the area of hard copy contracts in the business market segment. Here, the company is obliged to take a robust view of TCO because without it Lexmark would have no business customers – just in the way that it nearly has no customers for its inkjet printers because of the extraordinarily high Total Cost of Ownership presented to inkjet buyers.

It will be very interesting to watch the Lexmark financial results as they come through over the next four to six quarters.

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This entry was posted on Friday, April 25th, 2008 at 12:01 am and is filed under News, Total Cost of Printing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.