Epson Succeeded in ‘Sharply’ Expanding Inkjet Printer Revenue

Epson has released Fiscal 2014 full-year financial report (ended March 2015). Revenue was ¥1,086.3 billion ($9 billion), up 7.7% year over year (YoY). Business profit was ¥101.2 billion ($842.8 million), up 12.4% YoY.

Information-related Equipment Business Segment, which comprises Printing Systems (including inkjet printers, page printers, color image scanners, commercial inkjet printers, serial impact dot matrix printers, printers for use in POS systems, inkjet label printers, related consumables and others), Visual Communications and Other, saw 7.9% YoY increase in revenue, totaled at ¥907.2 billion ($7.55 billion).

According to Epson, it succeeded in sharply expanding inkjet printer revenue despite a decline in ink cartridge printer shipments because a reinforced lineup of printers with high-capacity ink tanks had strong sales especially in emerging markets. It has also reinforced its business inkjet printer lineup for a serious entry into the business market. At the same time, Epson has launched a managed print services business in Japan. Under this new business model, customers pay a flat fee for a package that includes printer, ink, and maintenance service. Revenue from consumables rose along with an improved composition of the install base.

Other highlights include:

  • In large-format inkjet printer segment, Epson saw ongoing firm demand in the large-photo and color calibration (proofing) markets.
  • In the professional photo market, Epson received increased revenue by launching compact, high performance new models.
  • In the inkjet textile printing market, Epson has expanded the range of applications to encompass everything from apparel to small personal items and interior goods. Meanwhile, Epson has expanded the territories by selling direct-to-garment printers to capture opportunities created by a rise in demand for custom and original T-shirts.
  • Page printer revenue decreased due to a decline in unit shipments, the result of Epson’s focus on selling high added value models.
  • SIDM printer revenue was flat year over year because the effects of a temporary lull in demand in China and a decline in unit shipments in the Americas and Europe were offset by foreign exchange effects and increased sales of low-priced models in Asia.
  • POS system product revenue increased because of unit shipment growth in Europe and expanded sales of label printers for on-demand, in-house printing.

Speaking of its strategy in Printing, Epson said, “In the printing, we will look to use Epson’s unique Micro Piezo inkjet technology to create an innovative printing environment. In inkjet printers, we will work to sell more high-end consumer models, which tend to generate higher print volume. We will also continue to upgrade and expand our lineup of products tailored to the needs of consumers in emerging countries. We will release powerful new office printers equipped with state-of-the-art Micro Piezo printheads and build up our managed print services business, a new business model, to further increase our competitiveness. Digital inkjet printing systems are increasingly replacing conventional analog systems in the commercial, industrial, and business printing markets, where they are used to print everything from billboards to wrapping film for food products to textiles. By creating new customer value in the form of shorter production processes and lower environmental impact, we will tap more deeply into these markets and build strong core businesses that will sustain future growth. In business systems, we will achieve steady income growth by uncovering new demand while maintaining a grip on the top share in existing segments.”

(Source: Epson)

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