MFP Industry Notes for 11/24/2018

 

November 24, 2018

Toshiba financial issues update


- Nikkei News of Japan is reporting that Toshiba is attempting to sell its Westinghouse nuclear plant manufacturing division.
- Jiji News of Japan is reporting that talks between Toshiba and Western Digital have broken down again, and did not lead to an agreement to settle Western Digital’s lawsuit aimed at preventing Toshiba from selling its NAND memory chip division to Bain Capital for $18 billion
- Toshiba finalized plans to sell more stock in attempt to raise $5.3 billion so that it can prevent being delisted from the Tokyo Stock Exchange
o Will attempt to sell 2.28 billion shares for 262.8 yen per share
o Japan’s most famous activist investor, Yoshiaki Murakami, will become the largest Toshiba shareholder with a 11.34% stake in the beleaguered company
o Goldman Sachs will receive $180 million in fees for managing the stock sale
- In a cost cutting move, Toshiba announced it will terminate its 48 year old sponsorship of popular Japanese TV show named “Sazea-san”
o Also announced it will not renew the contract for the large billboard ad that is on display in New York’s Times Square (the sign was seen by audiences around the world during the New Year’s countdown celebrations on TV)


HP posts earnings for last quarter


- Total earnings of $660 million
- Total revenue up 11% to $13.93 billion
- Total gross margin down from 18.3% to 18.1%
- Computer division revenue up 13% to $9.1 billion
o Margins down to 3.8%
- Printer/MFP division revenue up 7% to $4.9 billion
o Claims total printer unit market share of 40%
o Total printer/MFP units up 3%
 Consumer units up 3%
 Commercial units no growth
o Supplies revenue up 10% to $3.1 billion
o Total operating profit up 2.6 basis points to 16.6%
o Won contract to deliver 24 PageWide production color inkjet systems to Lightning Source Printing (has contract to produce 40% of the books sold through Amazon)
o CEO, Dion Weisler expects that the now completed acquisition of the printer/MFP division of Samsung will allow HP to grab “12% of A3 market share in the next 3 years”

HP admits to LaserJet security issues


- HP announced it would release firmware patches for several security bugs reported to the company by various cyber-security experts, according to article published in Bleeping Computer magazine
- Includes a remote code execution (RCE) flaw in LaserJet and PageWide MFPs which allows hackers to:
o access data from print jobs
o modify PostScript print jobs
o reset the MFP’s admin password
o extract firmware images
o store malicious files on HDD


PrintAudit report on U.S. printing trends


- Daily pages per user in healthcare vertical is up 118% over last year
o Duplexed pages down from 20% to 17% of total pages
o Average of 37 pages per user per day
o Total color printing costs down from 50% to 26% of total
- Education vertical color spend versus b/w up 85%
o Decrease of 11% in duplexing down from 50% to 39% total
o Decrease from 25% to 24% of total color output form email and web
o Total color printing costs up from 27% to 50%
- Government vertical has 55% decrease in pages per user to 15 pages per day per user
o 38% of total is duplexed
o Total color output from email and web up from 12% to 16% of total
o Total color printing costs down from 56% to 52% of total
- Financial vertical has 52% decrease in color versus b/w spend
o Duplex pages down from 12% to 7% of total
o Total color output from web and email up from 22% to 27% of total
o Average of 21 pages per day per user
o Total color printing cost down from 66% to 32% of total


Marvell Technology to diversify


- Marvell, of Santa Clara, CA and Bermuda, is maker of chips and technology for MFP and printer makers.
- Announced it has agreed to acquire Cavium of San Jose, CA for $6 billion
- Cavium is maker of networking processors and server microprocessors


Dealer announces acquisition


- WiZiX Technology Group of Sacramento, CA (Toshiba dealer) announced it has acquired All Net, a dealer in Fresno, CA
- Recently also acquired Stanton Office Machines (Ricoh/Lexmark) of Fresno and Scott Technology Group (Savin) of Sacramento
- WiZiX was founded by Gary Johnson (who founded and then sold Zoom Imaging to Global Xerox in 2012)
Mega dealer makes another acquisition
- Dex Imaging announced it has acquired Dean’s Office Machines
- Dean’s has offices in Greensboro, NC as well as Charleston, Greenville, and Columbia, SC and is a dealer for Canon, Toshiba, Kyocera and Lexmark with annual revenues of $8.5 million


IDC reports on Western Europe MFP sales


- Data on 3rd quarter of 2017 shows total printer and MFP market units down 3.2% to 5.1 million placed
- Total revenues down 11.4%
- A3 inkjet MFPs up 9.6%
- Total laser based device revenue down 15.2%
- Total laser based device units down 7.9%
- Average selling price down 0.5%
- Total MFP units up 1.9% and value up 27%
- Laser and inkjet print only units down 13.6%



- Received notification letter from Nasdaq Stock Market that the company is not in compliance with rule requiring timely financial reporting to the SEC
- EFI now has 60 days to file necessary forms
New software to reduce need to print
- Binartech Software of Opole, Poland launched FleetSheet, developed by Christine Reina Hoyt of Sag Harbor, NY
- The new software allows a user to click “print” on any PC and have documents instantly appear on tablet PC or smartphone, as long as all devices are on same WiFi network
- FleetSheet is a free downloadable app, but charges $6.99 per month for unlimited usage.
o Upgrade to $9.99 per month also provides features of annotate, save and share

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