Lexmark Pays Share Dividend—It’s 18th in a Row

Lexmark’s first quarterly report since news of its acquisition by a Chinese consortium, reveals the company continues to be plagued by the same difficulties experienced in recent years.

The report reflects the strain following the Lexington-based company’s withdrawal from the inkjet printer market while restructuring into a diversified information solutions company.

The report also suggests that the strong U.S. dollar and a descending in non-managed print services income had counteracted the revenue growth in managed print services and enterprise software.

In 2015, Lexmark had reported a profit but has experienced a $39.4 million loss for the same period this year.

A Chinese consortium of companies, including Ninestar-Apex Microelectronics, bought Lexmark for $3.6 billion, or $40.50 a share, on April 19. Once the sale goes through, the company will be delisted from the New York Stock Exchange.Paul Rooke, the chairman and CEO of Lexmark stated however, that the company would still be based in Lexington and he would continue to lead the company.

When the report of earnings was released on Tuesday, Lexmark chose not to hold the usual meeting with analysts. Rooke also made no comments on the results.

Compared with the first quarter of 2015, Lexmark’s first quarter revenue of 2016 fell from $852 million to $806 million, along with the gross profit margin descended from 38.7% of the first quarter in 2015 to 38% the same period in 2016.

The company’s operating income margin also reduced 4.8%. However,it declared it would pay 36 cents a share—this being its 18th consecutive quarterly dividend.

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