Leading printing and imaging solutions provider
Lexmark International Inc.
) has won a 5-year contract worth $20.0 million from renowned oil
and gas producer
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The contract makes Lexmark the sole supplier of comprehensive
printing solutions to Statoil that are expected to optimize output,
enhance productivity and reduce cost per print and printer
downtime. Lexmark will provide the energy company with its "Print
Release" solution, which provides utmost security in printing
Print Release, introduced in October 2011, allows users to print
documents from any networked device on the premise, after the user
furnishes personal details to authenticate the activity. Moreover,
the solution also takes printing requests from smartphones or
tablets, thus helping a mobile workforce.
The proven benefits of Print Release also prompted the Federal
Aviation Administration (FAA), which is an arm of the U.S.
Department of Transportation (DoT), to opt for the printing
service. Apart from the 900 FAA offices, other departments under
DoT also used Lexmark's solutions for better management of their
Earlier this year, Lexmark clinched two print services deals from
the U.S. Department of Agriculture and brewer
Lexmark operates in a highly competitive market where there is a
constant price war between major players such as
). Additionally, the scope for printing solutions is narrowing as
digital technology and e-commerce are becoming more prevalent.
However, considering Lexmark's strength in the Managed Printing
Services segment and growing exposure in the software space through
back-to-back acquisitions, we remain bullish on the stock.
Currently, Lexmark has a Zacks #2 Rank (short-term Buy rating) and
a long-term Hold recommendation.