Lexington-based Lexmark, one of the city's largest private employers, on Tuesday reported a 3 percent increase in revenue and earnings per share for the third quarter.
The company employs 2,300 people in Lexington.
The company's Managed Print Services and Perceptive Software revenue grew 20 percent. That represented nearly one-third of the company's total revenue, according to a news release from Lexmark.
Revenue was $921 million, up from $896 million for the third quarter of 2013. Earnings per share were $1.05, up from $1.02 a share. That outpaced earnings expectations, which were 92 cents a share.
In a telephone interview, Paul Rooke, president and CEO of Lexmark, said he expected the Managed Print and Perceptive Software segments to experience "continued strong growth" and to expand from nearly one-third of the company's total revenue "to something much larger."
"Our strong results reflect the work we have been doing to transform Lexmark to a solutions company, creating a unique portfolio of higher value imaging and software solutions," he said.
During the third quarter, the company bought Sweden-based ReadSoft, which Rooke said "further broadens Lexmark's solutions capabilities and reach, and supports our target of generating Perceptive Software revenue of $500 million in 2016."
The exit from inkjet printer production will continue to affect the company going forward, but less so as it is countered by expansion of Perceptive Software and managed print services, Rooke said.
Revenue for the fourth quarter is expected to be down 2 percent to 4 percent compared with the same quarter of 2013, as the 2012 decision to exit inkjet printer production has a diminishing negative affect on revenue.