Tuesday, October 25, 2011

Lexmark Announces Third-Quarter Results for Perceptive

For the quarter Perceptive saw 15% year-over-year growth to reach $23 million in sales. This was, however, "sightly below expectations," said Lexmark EVP and CFO John Gamble, on a conference call today discussing Lexmark's third-quarter results. (Here's s the transcript.)  Apparently, Perceptive's revenue did grow fast enough to completely offset Lexmark's increasing investments in the Perceptive business. This contributed to a non-GAAP operating loss of $3 million for Perceptive for the quarter.

"We are investing in Perceptive to drive expansion of international sales, accelerate the development roadmap and increase the industry solutions Perceptive offers to both Perceptive and Lexmark customers, including MPS customers," said Gamble. "To achieve this, we have increased both development and marketing and sales expense of head of revenue growth."

That said, Lexmark has hardly soured on the Perceptive acquisition. "We remain pleased with Perceptive's progress overall and believe the capabilities we are adding drive not only growth in Perceptive but also in our imaging business," said Gamble.

Those capabilities include the addition of the products of Dutch ISV Pallas Athena to the Perceptive portfolio, in a $50 million acquisition that was announced last week. Lexmark described Pallas Athena as "a leading provider of BPM, DOM (document output management) and process mining software."

According to Lexmark CEO Paul Rook on the conference call, "The combination of Lexmark and Perceptive and now Pallas Athena, creates a unique capability in a market that further strengthens and differentiates Lexmark's core industry focused workflow solutions and managed print services proposition to our customers. It expands our market for revenue growth and now provides cross-selling opportunities between imaging products, fleet management, content management, business process management and document output management solutions."

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