Lexmark International Inc LXK
Q4 2011 Earnings Call Transcript

Transcript Call Date 01/31/2012

Operator: Thank you for standing by and welcome to the Lexmark International Fourth Quarter 2011 Earnings Conference Call. During the opening remarks, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded on Tuesday, January 31, 2012.

I would now like to turn the call over to John Morgan, Lexmark's Director of Investor Relations. Please go ahead, John.

John Morgan - Director, IR: Good morning, and thank you for joining us. Chairman and CEO, Paul Rooke and EVP and CFO, John Gamble, are with me this morning. After their prepared remarks, we'll open the call for your questions as time permits. We ask that you please limit yourself to one question and one follow-up, if needed, so that we can get to everyone.

Please note that Paul and John will be referring to specific earnings presentation slides by number. These slides were posted to our Investor Relations website located at earlier this morning.

Paul and John will be referring to non-GAAP measures during their presentation unless otherwise noted. Pursuant to the requirements of Regulation G, the company has provided reconciliations of GAAP and non-GAAP measures and a discussion of management's use of non-GAAP measures in the supplemental materials section of the earnings presentation slide.

Regarding our upcoming dividend schedule, Lexmark anticipates that the record date of its first quarter 2012 dividend will be March 5th, with an anticipated payment date of March 16. We have also included our anticipated dividend schedule for 2012 and 2013 in the supplemental section of the earnings presentation.

Following the conclusion of this conference call, a complete replay will be made available on our IR website.

As a reminder, any of today's remarks that are not statements of historical fact are forward-looking statements and involve certain risks and uncertainties that are disclosed in the Safe Harbor section of our earnings releases and SEC filings. Actual results may differ materially from such statements, and Lexmark undertakes no obligation to update any forward-looking statements.

With that, I'll turn it over to Paul.

Paul Rooke - President and CEO: Well, thank you John and good morning to everyone. As John said we'll be using a presentation slide deck. We'll refer to the slide numbers as we go to keep everyone on the same page.

So let's begin. Starting on Slide 4 our fourth quarter financial results reflected good performance for the quarter and the year given a challenging global economic environment.

For the fourth quarter revenue and earnings per share were at the top end of the guidance range. For the quarter and the year we saw record laser revenue along with record laser supplies revenue. This performance helped to drive a record gross profit margin along with a solid operating income margin.

We also saw continued revenue growth in our strategic focus areas. We continue to see growth in our core driven by growth in supplies, managed print services and high end hardware. We also saw strong software revenue growth worldwide as we continue to expand our international footprint for Perceptive Software.

Read our Earnings Call Transcript disclaimer.
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