Lexmark Finds Higher Value in MPS

Lexmark has paid a dividend of $0.36 per share to shareholders, totaling $23 million in the second quarter of 2016 (2Q2016).

According to Lexmark’s financial report, higher value solutions revenue is defined as combined Managed Print Services (MPS) and Enterprise Software revenue. Lexmark explained MPS is defined as ISS laser hardware, supplies, and fleet management solutions sold through a managed print services agreement.

In addition to the financial data, Lexmark also noted that shareholders has approved the definitive merger agreement. Lexmark expects that the all-cash transaction will provide Lexmark’s shareholders $40.50 per share in cash, representing a 30% premium to the undisturbed stock price on Oct. 21, 2015.

In addition, the board of Lexmark directors declared a quarterly cash dividend of $0.36 per share of Lexmark Class A Common Stock payable on Sept. 16, 2016.

Other highlights about Lexmark’s second quarter results include:

  • GAAP revenue fell 2% to $863 million, compared to the same period last year;
  • GAAP Gross profit margin was 39.1%, down 2.1% compared to the same period last year;
  • GAAP Operating income margin increased from -2.5% to 2.7%;
  • In Q2, Non-GAAP revenue declined 3% to $865 million, or increased 1% at constant currency;
  • Non-GAAP gross-profit margin fell from 43.8% to 41.5% in Q2;
  • Non-GAAP operating income margin decreased from 10.6% to 8.6%;
  • Cash generated in Q2 was $103 million; while new debt was $886 million.

Upon closing, Lexmark common stock will cease to be publicly traded on the New York Stock Exchange.

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