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Weekend MFP Industry Notes Newsletter
8-9-09



Toshiba’s president, Norio Sasaki, stated the following during a press briefing in Tokyo:
- It plans on coming out of the downturn by expanding its energy, healthcare and
environment-related businesses
- Expects its nuclear plant division to be its most profitable division by 2012
- Nuclear energy expansion “will provide a basis for strong growth”
- Predicts this division will bring it $3.7 billion in profit by 2012
- Will cut fixed costs by 330 billion yen this year
- Will cut spending in research & development in other business units to 1 trillion yen
from 1.17 trillion yen
- cut its profit forecast from $5.2 billion to $2.6 billion for the year
- cuts its sales estimates by 25% to 7.5 trillion yen
- posted a record 343.6 billion yen net loss last fiscal year
- it expects orders for 39 nuclear reactors by 2015
- “the results in fiscal year 2008 were dreadful”
- “starting with restoring the capital base, we aim to transform ourselves into a
company with a solid financial footing to start again for further growth”

Toshiba won a $116 million bid to supply two steam turbine engines for a coal plant in Vietnam.

During its 2009 Regional Summit, Toshiba’s President & COO, Mark Mathews announced:
- its managed print program is now 6 years old
- has 1 billion pages per month in its MPS program.
- Announced that Toshiba has entered into a “Strategic Agreement” with Hewlett Packard, apparently allowing it access to Hewlett Packard printers and MFPs (branches and dealers may now start marketing HP products in addition to Toshiba products)
- MPS program is called “Encompass 3.0” and is run by Jon Hafey,
Director Program Management & Service Delivery

Comdoc, a dealer in Ohio recently acquired by Xerox, announced it won a $80,000 bid to supply document management for Dimension Service Corp, a warranty company, who supposedly was spending $240,000 per year on outsourced scanning/storage services for 80,000 documents per month. The solution included 5 Kodak desktop scanners and DocuWare software, according to Director of Sales, Dan Nihiser.

Sandy Jones and Nicole Moses were arrested in New Hampshire after allegedly making fake currency using a color copier. Both women were arrested after they use a fake $50 bill to buy lottery tickets.

Heidelberg is apparently working on a high speed color inkjet production print system. The company has invested in inkjet printhead maker, Spectra, and plans to launch a new product named Linoprint.

Forrester Research predicts the following marketing methods will see increases:
- social media = 34%
- mobile marketing = 27%
- display advertising = 17%
- search marketing = 15%
- email marketing = 11%

Hewlett Packard announced it now has a total of 5,000 Indigo production color systems installed worldwide. The product was first shipped in 1993, when Indigo was an independent company, before it was acquired by HP in 2002 for $800 million. According to InfoTrends, the supply cost per page on the new Indigo 7000 is only 2 cents.

Hewlett Packard announced it plans on launching “Cloud-Print”. This service will allow end users to print from their Blackberry device to any printer connected to the Internet. Launch date and cost unknown.

Three former factory direct salespeople of Hewlett Packard, are suing the company alleging they were denied tens of thousands in sales commissions. Details:
- As many as 50,000 current and former HP salespeople have not received commissions and bonuses because of problems HP was having with its Omega sales tracking software
- HP spokeswoman, Gina Giamanco, stated that HP is working to solve the problem
- According to HP, only 2000 of its team of 23,000 were affected by the software problem
- HP responded to the lawsuit filing by saying; “HP believes that lawsuit filed by a handful of former employees in connection with the Omega related claim substantially exaggerates the scope of the previously acknowledged issue. We intend to defend this vigorously in court.”
- The lawsuit was filed by Shaun Simmons, a former HP rep who claims he is owed at
least $30,000 in commissions
- All three sales people reside in Colorado
- The workers are being represented by attorney, Barry Dunn.
- The case will be heard by the U.S. District Court in San Francisco.

Kodak announced it has sold a NexPress S2500 production color system to a print shop in Italy named Grafostampa.

The U.S. Postal Service, despite implementing $6 billion in cost cutting measures, announced it will still lose a whopping $2.4 billion. It now has reported a loss for 11 of the last 12 quarters.

EFI announced that since it offered its version 5.0 of Fiery Command WorkStation free upgrade, that 10,000 users have downloaded the software.

Printable Technologies, maker of the popular FusionPro variable data software, announced a record quarter for sales and profits.

According to WhatTheyThink.com, commercial printing shipments were down 12.2%, and printing volume was down 9.7%.

InfoTrends released the following list of top features for production print systems:
- Overall fastest system is the Kodak Versamark VX5000 color inkjet system at 750 feet per minute
- Fastest cut sheet toner system in the Hewlett Packard Indigo 7000 at 120ppm
- Fastest cut sheet color inkjet system is the Riso HC5500 at 120ppm
- Fastest color MFP is the Ricoh Aficio Color MP7500 at 75ppm
- Largest cut sheet paper capability is the Xerox iGen4 at 14.33” x 22.5”
- Longest image possible is the color LED Punch Graphix Xeikon 8000
which is unlimited with rolls of paper
- Most flexible cut sheet media handling is the NexPress from 16lb. bond to 130lb. cover
- Most flexible roll fed media handling is the Punch Graphix Xeikon 8000 from 27lb. text to 122lb. cover

Epson has filed patent infringement suit against a company in California who refills Epson print cartridges. Green Project Inc. of Hacienda Heights, filed a countersuit claiming it is doing nothing wrong.

Great America Leasing announced that it has hired famous sales training author, Steven Power, to provide training to dealers who plan to succeed in managed print services.

Xerox announced it has settled a patent infringement case brought against the company by Acacia Research Corp. Acacia is a company that seeks out obscure patents, so that it can chase companies for licensing revenue. In this case, it was a patent regarding networkable multifunction printer technology. The amount of money it is now going to receive from Xerox was not released. Toshiba also settled out of court as well.

Xerox launched two new color laser production print systems, the DocuColor 7002 & 8002. Details:
- replace the 7000, 7000AP, 8000, and 8000AP models
- 70ppm and 80ppm top speeds respectively
- Base MSRPs start at $245,000.00
- both come standard as print only models, and do not make copies
- optional scanner
- requires 240v/30amp circuit
- 7002 has maximum duty cycle of 1 million per month
- 8002 has maximum duty cycle of 1.2 million per month
- Built-in spectrophotometer, so no external color calibration device is needed (apparently only works if end user chooses the Xerox FreeFlow print server, and not with EFI Fiery or Creo servers)
- Horizontal 4 tandem OPC drum design
- can replace toner on the fly while unit is running
- uses mylar film transfer belt, or digital blanket, to move image from drums to paper
- Can handle from 16lb. bond to 110lb. cover (maximum of 300gsm)
- in the “All Weights” mode, can run thick stocks at top speed (not recommended for best image quality)
- in the “Mixed Media” mode, slows down to produce best image quality on thick and/or coated stocks
- engine uses steel for durability, reliability
- advertised as offering 2400x2400dpi with VCEL technology (is actually 600dpi, divided into 4, with each ¼ of the pixel designated for each color, or 1 bit per quadrant)
- Not true 8 bits per pixel continuous tone imaging
- maximum paper size of 12.6” x 19.2”
- minimum paper size of 7.2” x 7.2”
- can auto duplex up to 300gsm
- comes standard with two 2,000 sheet paper drawers
- can add two more 2000 sheet paper drawers
- Corotron cleaning assembly allows end users to clean the corona wires on their own
- Finishing options include
- GBC eBrinder 200
- punches and binds all on line
- uses polyester binging material
- can use black, blue, white or clear binds
- can bind from 2 to 100 sheets
- letter size only
- Tape binder
- can bind from 15 to 125 sheets
- letter size only
- uses thermal adhesive taple
- available in black, blue and white tape
- DB120-D Document Binder
- maximum of 120 sheets of letter size paper
- in-line thermal binder
- Booklet maker (made by Horizon)
- GBC FusionPunch II for inline punching
- Standard Horizon ColorWorks Document Finisher
- inline folding, corner and top stitching
- standard face trim
- optional multi-line scoring and bleed trimming
- Stacker/stapler staples up to 50 sheets maximum

- Print controller options include EFI Fiery, Kodak Creo and Xerox FreeFlow
- Xerox FreeFlow server
- actual maker unknown
- 2.5GHz processor
- 4GB RAM
- 300GB hard drive
- PCL and PostScript print drivers
- Xerox EX Print Server
- relabeled EFI Fiery
- two 3GHZ processors
- 2GB RAM
- 80GB hard drive and two 250GB hard drives
- Xerox CX Print Server
- relabeled Creo

Xerox announced the first customer for its new DocuColor 7002 is Kings College in Wilkes-Barre, PA.

Xerox gave out more details of it past quarter’s financials:
- Segment 2 through 5 installs up 10%
- Service annuity revenue down 4%
- Total pages tracked down 5%
- Color pages grew 12%
- Color equipment placements down 21%
- Segment 1 installations down 84%
- Color MFP installs down 21%
- Color printer sales down 42%
- Managed print services has run rate of $3.5 billion

Xerox announced that its Hawaiian operations now employ 200 people:
- first opened branch in the state in 1961
- now has office in Honolulu/Oahu, Lihue/Kauai, Hilo & Kona/Hawaii

Competing against the Xerox 4127 b/w production print system? Pointers:
- Recommended maximum monthly volume of only 600,000 per month
- First copy out time is 3.5 seconds
- The maximum size saddle stitched booklet is only 20 sheets
- Drum yield is only 500,000 impressions

NSI also announced that it won a bid to provide scanning solutions for the U.S. Navy Marine Corps Intranet (NMCI) program. It will be used in conjunction with thousands of Ricoh, Xerox, HP & Sharp MFPs. NMCI includes 363,000 computers serving 700,000 people in 620 location worldwide, making it the largest internal computer network in the world.

- Kyocera announced version 5.0 of its KYOcapture option for its MFPs:
- Actually is a relabeled version of Notable Solutions Inc. (NSI) AutoStore software
- Has customizable user interface
- Software is loaded onto customer’s server
- Provides a document capture workflow solution
- Improved bi-directional search functionality
- Retrieve indexing data from databases
- Browse folders across network

Kyocera announced that it is partnering with Wells Fargo and GreatAmerica to provide leasing options for its dealers.

Kyocera announced that in the U.S., it has shipped just over 1800 of the new TASKalfa color MFPs. It claims that the TASKalfa name will be on 23 different MFP and printer models.

Creo print servers received accolades from the International Cooperation for the Integration of the Processes in Prepress, Press and Postpress (CIP4) organization, as achieving the highest level of connectivity to third party workflow solutions. CIP4 measures vendor’s compatibility with the new Job Definition Format, or JDF standards.

Ricoh announced that it has sold one of its Aficio Pro 900 production color systems to a print shop in Des Moines, Iowa. Its IKON office in the area, sold one to Colorfx Inc., which is now using the system to produce variable data direct applications.

Ricoh announced that some of its products received accolades from Business Equipment Research & Testing Labs (BERTL):
- 5 star ratings given to MP C2550, C3300 & C5000 color laser MFPs
- BEST award given to C2550 & C5000

Ricoh announced more details about its new b/w production print systems (906EX, 1106EX, 1135EX) where it now expects end users to perform some of the service, under the “Trained Customer Replacement Units (TCRU). Details:
- Advertised as allowing end users to minimize downtime
- End users receive one hour of on-site training to learn how to replace the TCRU parts
- Consists of 8 different parts including; fuser section, fuser cleaning web, OPC drum, corona wires/grids,
waste toner receptacle, etc.

Details on the finishers offered for the new Ricoh b/w production print models:
- The GB2000 perfect binder can glue bind up to 200 sheets of paper, and can trim 3 edges of book
- booklet size of either 8.5”x11” or 8.5” x 5.5”
- uses tray on top to insert cover material
- top speed of 20 booklets per hour
- unit takes 6.5 minutes to reach melt temperature
- maximum paper weight handling of 163gsm for body, up to 300gsm for cover
- does not support use of coated/glossy stock
- the optional EFI Fiery does not support this option
- The RB5000 ring binder can punch and bind up to 100 sheets of paper
- can only use 8.5” x 11” paper
- when loading ring material, must choose either 50 sheet or 100 sheet ring material
- can not load both 50 & 100 rings at same time
- choice of either white or black ring material
- is not three ring, but instead punches 21 holes, and rings resemble comb binding
- when using 100 sheet bind, top speed of 30 booklets per hour
- when using 50 sheet bind, top speed of 55 booklets per hour
- output drawer can hold up to 11 booklets maximum
- ring material replacement will produce 75 booklets
- maximum paper weight that can be used is 216gsm
- The BK5000 booklet maker can stitch up to 15 sheets of paper
- The BK5010 booklet maker can stitch up to 30 sheets of paper

EFI announced results of its second quarter’s financials:
- Total revenue of $90.1 million compared with $143.8 million last year
- GAAP net loss was $13.3 million
- GAAP net income was $13.4 million
- 14% growth in inkjet business
- Operating expenses reduced by 22%

Canon launched the imageRUNNER LBP5460 print-only color laser system offering 31ppm top speed for color or b/w with base MSRP of $1350.00.

Canon raised its group operating profit forecast by $105.8 million. The upgrade is due to cost reductions in advertising and R&D expenditures. Overall sales expected to drop by 22%.

Canon announced it will hold its annual Integrated Solutions Showcase at the Bellagio Hotel in Las Vegas, NV on 9/21/09.

Recently, Canon held its award trip for its top performing personnel in Europe, by taking them to Miami, FL, with a day spent in the Everglades, as the event had a save the environment theme.

Competing against the Canon imageRUNNER 7105? Points to remember:
- recommended maximum monthly volume is only 600,000 per month
- while advertised as offering top speed of 105ppm, when running ledger size paper,
it slows down to only 53ppm
- the document feeder runs at top speed of only at 85opm
- maximum paper size is only 11”x17”, so can create a full bleed tabloid image
- toner yield is only 47,000 pages (based on page with 6% coverage)
- uses an amorphous silicon ceramic drum instead of organic photoconductor (traditionally, organic drums provide better image quality, especially in halftones)

Sharp announced it will hold its next dealer meeting during week of 8/31/09 at the Gaylord Resort in Washington D.C.

Okidata announced that it is replacing its CEO of its North American division. Out is Stewart Krentzman, after 12 years with the company. He is replaced by Takabumi Asahi from Japan.

Okidata announced it will offer PrintFleet managed print service software to its dealers.
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