Lexmark International Inc. announced better-than-expected second-quarter financial results Tuesday.
Nonetheless, earnings per share were down from the second quarter of 2013.
Lexmark chairman and CEO Paul Rooke said in a phone interview Tuesday afternoon that the difference was largely due to a tax differential.
"In the second quarter, our higher-value solutions portfolio revenue, comprised of Managed Print Services and Perceptive Software, grew 11 percent, accounted for nearly 30 percent of Lexmark's total revenue and is expected to exceed $1 billion this year," Rooke said.
The Lexington-based company is "rewarding our shareholders with both a 20 percent dividend increase and share repurchases, returning $41 million this past quarter," he said. The company's performance reflects its investment in imaging and software solutions, "which help our customers solve their unstructured information challenges," he said.
The company is increasing its projection for full-year 2014 revenue and earnings per share.
Also, Lexmark expects to emerge the victor from a bidding war with Hyland Software over the Swedish company ReadSoft, Rooke said. Lexmark's most recent offer, announced July 14, offered a cash tender price of 50 Swedish Krona per share, or $224 million.
"We expect to close and have those shareholders accept our offer," Rooke said. "It's a very good strategic fit, and ... Lexmark is the right home for ReadSoft."
GAAP (generally accepted accounting principles) revenue of $892 million includes acquisition-related adjustments of $2 million, according to the news release. Non-GAAP revenue of $894 million increased slightly year to year but grew 5 percent excluding the planned and continuing decline in inkjet revenue as the company shifts its emphasis to becoming more of an information management company.
GAAP earnings per share for the second quarter of 2014 were $0.59, compared with $1.47 for the same quarter of 2013. Second-quarter 2014 non-GAAP adjustments were $0.40 a share.
Second-quarter 2014 non-GAAP earnings were $0.99 per share compared with non-GAAP earnings of $1.04 per share in the second quarter of 2013.