Toshiba financial issues update
– KKR & Co. is reportedly in talks with Toshiba about a preemptive bid for the company’s memory chip manufacturing divisiono KKR’s partners, which includes the Development Bank of Japan, have indicated that they would pay $16 billion
o Western Digital, which is already a partner with Toshiba, has its CEO flying to Japan to discuss joining the group
o (Toshiba researcher, Fujio Masuoka invented the NAND flash memory technology in 1987)
– Company is considering releasing its full year earnings statement without audito Its current auditor, PricewaterhouseCoopers, continues to disagree with Toshiba over losses suffered, and issued a disclaimer on the 4th quarter earnings report
o May 22, 2017 is the deadline for Toshiba to release the report, or it may be delisted from the stock exchange
o Toshiba had originally stated it would find another auditor, but it has been struggling to do so
o In March, Toshiba stated it could post a net loss of $8.9 billion for the last fiscal year.
– Toshiba continues to sell off divisions to raise cash:o Mitel Networks, a telecommunications company, announced it will acquire the Unified Communications division of Toshiba (makes phone systems). Purchase price unknown.
o (still no reports on whether Toshiba will sell off its TEC division that makes MFPs and printers
Toshiba to launch another erasable copier
– The company announced it will launch the eSTUDIO4508LP with a base MSRP of $13,768.
– Will offer a top speed of 45ppm
– Replaces the eSTUDIO306LP
– Based on engine of the eSTUDIO4508A b/w A3 MFP
– Will use special blue toner to create copies and prints
– To recycle the paper, the copies/prints are placed in a separate RD30 eraser unit to remove the blue toner, which can be done several times
– Will ship in June
– (unknown if new model will resolve complaints about previous model, including copy quality, and toner residue)
Toshiba president speaks at event
– Toshiba Americas Business Solutions USA president and CEO, Scott Maccabe spoke at recent annual dealer meeting
– Color MFP unit placements up 7.3% over past 6 months
– Managed print services revenue up 14% YoY
– Barcode and thermal printer sales up 15%o Won contracts for cash register printers from Home Depot and FedEx
– Recommends that dealers have at least 10% of their revenue not print related
– Even though the company has not acquired a dealer in past 8 years, it is apparentlyl planning on acquiring dealers in 2017
– 38% of total revenue in U.S. comes from single-line Toshiba dealers
– 54% of revenue is from dealers, while 46% is from Toshiba factory direct branches
– Is hoping to target the following vertical markets with its “Elevate”-integrated LCD touchscreen control panel applications:o Healthcare
o Government
o Logistics and manufacturing
o Education
o Finance
o Legal
o Retail
o Houses of worship
– Claims that 100 of its dealers source Lexmark A4 products from Toshiba, or 65%
Samsung leadership questions
– As reported in Nikkei newspaper, apparently company is backing away from plans to make jailed Lee Jae-yong as the official company CEO
– Mr. Lee has been running the company from his jail cell in Seoul, South Korea, instructing executives during periodic visits.
– He is in jail waiting to face charges of bribery to government officials
– Named Choi Kyong-sik as VP of mobile division (smartphones and tablets)o Replaced Lee Sang-chul
– Kwon Kye-hyun named head of China business
HP signs up distributor for its A3 MFPs
– Company announced it has authorized Synnex of Greenville, SC, to be a nationwide distributor for its new A3 MFPs
– Synnex was already authorized to distribute HP printers
– Rather than selling directly to dealers in the U.S., HP is using distributors. The following two dealers were quoted in press release:o “Synnex has been an incredible partner in helping us grow our traditional LaserJet and Page Wide Solutions business, and we look forward to the continued exemplary support with HP’s A3 portfolio.;” stated Matt Schotten, CP of ImageNet Consulting.
o “We look forward to continuing our relationship with Synnex for the new A3 product line from HP”; stated Rich Houghton, President of ManagedPrint, Inc.
One dealer buys another in two cities
– Data Source Technology & Printing Solutions announced it has acquired The Printer Store.o Both are located in Lincoln, Nebraska area
– Allied Business Solutions, Inc. of Boise, Idaho announced it has acquired Idaho Business Systems Inc., a Toshiba/Lexmark/Samsung dealer, which has locations in Idaho Falls and Pocatelloo Allied is a dealer for Toshiba, Lexmark, Sharp, Kyocera and also has satellite location in Ontario, Oregon
HP details plans to increase 3D print sales
– Launching new global reseller program to recruit dealers for its new Jet Fusion 3D Printing System
– It has authorized Synnex to be its official distributor of its 3D printing systems for dealers in the U.S.
– Announced it has already authorized Novacopy, headquartered in Nashville, TN, as a selling and servicing dealer for the new models, including Jet Fusion 3200 and 4200.
– Announced it will open demonstration showrooms, called “3D Printing Reference and Experience Centers”, in following cities:o Allentown, PA
o Alpharetta, GA
o Corvallis, OR
o Livonia, MI
o Louisville, KY
o Manchester, CT
o Carlsbad, Milpitas, Palo Alto & San Diego, CA
o Vancouver, WA
o Raon0I’Etape, France
o Leonberg, Germany
o Eindoever, Netherlands
o Barcelona, Spain
o Birmingham, England
Canon to participate in education event
– Will have presence at the Annual Shared Services in Higher Education conference in Dallas, TX
– Besides showing its latest MFPs, solutions and services, will also highlight its managed print services contract with George Mason University
Ricoh launches garment inkjet printers
– Now shipping the Ricoh Ri 3000 and Ri 6000 color inkjet printers that are designed to print on fabric
– Top speed of 27 seconds per T-shirt on 6000 models and 57 seconds on 3000 model
– 600x600dpi
– Able to print on shirts, socks and canvas grocery bags
– Options to produce metallic foil applications
– Aqueous ink (water based) technology
– Adjustable 2.3” laser-assisted table height to accommodate hoodies or zippers
Ricoh program to give its techs more work
– Launched new “Ricoh Service Advantage”, advertised as way to offer businesses access to Ricoh’s global network of technicians
– Examples of recent contracts signed:o Starship Technologies, headquartered in Estonia, is using Ricoh technicians as subcontractors to grow its installs of robotics and last-mile delivery solutions
o Apex Supply Chain Technologies, headquartered in Mason, Ohio, using the service force to grow its sales of intelligent locker solutions
o AMETEK Inc., headquartered in Berwyn, PA, is maker of electronic instruments
Ricoh wins production print contract
– Award from Thomson Print & Packaging of Edinburgh, England
– Acquired the Heidelberg Versafire CV, which is a relabeled Ricoh Pro C7100X production color laser system
– Reasons given for choosing:o Ability to handle 400gsm and the 5th toner option
Ricoh to lose it biggest dealer in the U.S.?
– MT Business Technologies, headquartered in Mansfield, Ohio, announced it sold out to Xerox, via Global Imaging Systems
– Founded originally as Mansfield Typewriter in 1918
– Estimated annual revenue of $75 million, as was Ricoh only dealer
– Locations in Columbus, Mansfield, Cleveland and Toledo, Ohio
– Management team of Carl Fernyak and Chuck Rounds
– Purchase price not announced
EFI makes another acquisition
– Announced it has acquired CRC Information Systems division from Reynolds and Reynolds, headquartered in Dayton, Ohio
– CRC is based in Scottsdale, AZ and is a provider of business management information systems (MIS) for commercial print industry
Xerox gets bad press in Pennsylvania
– Local media in Harrisburg, Pennsylvania ran headline of “Xerox copiers have been pushed out of offices in Capitol”
– The House of Representatives for the State of Pennsylvania announced it is opting out early from its MFP contract with Xerox.
– Xerox, upset at losing the business, reportedly took the rare step of sending letters to all 203 members of the House alerting them to the $5 million penalty buyout it will cost taxpayers to prematurely end the contract
– “There are not happy campers because we are asking them to exit the building after 20 years.”; stated House Chief Clerk Dave Reddecliff, who signed off on new contract.
– “We are eating $5 million dollars”
– He called the Xerox contract “confusing and a morass”, as House apparently was paying $262,000 per month to lease 430 MFPs
– The original 5 year contract was worth $15.7 million to Xerox
– The House enlisted a consultant, Matthew Smith, a former Xerox employee, to award a new contract to Canon for $189,000 per month.o Mr. Smith receives 30% of any savings found, or $1.1 million
– Xerox countered with an even lower offer, but Reddecliff says that “at that point the trust was gone”
– He stated he believed that House was overcharged and given more equipment than it needed.
– “They should have come back to us a long time ago and said, ‘folks, based on the data, you don’t need certain machines, you don’t need these larger machines, heck, you do not need this machine at all over here’. They never did that”
– The new Canon contract includes $5 million to pay off the buyout for severing the Xerox contract.
Kyocera reports its earnings
– Reported its financials for 4th quarter of its fiscal yearo 5.6% increase in sales YoY to $3.6 billion
o Revenue down 11.8% in the U.S.
o Operating profit up 40.6% to $333.6 million
o Net income down 33.4% to $293.9 million
o Profit from operations margin was 9.2%
– Reported results for full fiscal yearo Net sales down 3.8% to $12.7 billion
o Operating profit up 12.8% to $931.5 million
o Information Equipment Group (MFPs and printers) sales down 3.7% to $2.8 billion Operating profit up 3.6% to $250.2 million
Kyocera to sell 3D printers in Europe
– Announced it will resell MakerBot 3D printers to its dealers in England and Ireland
– Unknown if this plan will include dealers in the U.S. in the future
Kodak wins production print award
– Award from the European Digital Press Association (EDP)
– The Kodak Nexpress ZX3900 color LED toner system won the “Best Product” in the “Cutsheet printer color up to B3” category
Hyland appoints new members to group
– Hyland Software of Ohio, maker of OnBase ECM solutions, added new members to its OnBase Solutions Expert Group, its user advisory panel
– New members include:o Joy Ciplolloni of Emmerson Commercial and Residential Solutions
o Robert Angus of Winsupply Inc.
o Mitzie O’Rourke of Baptist Health
Lexmark partners with Nuance
– Lexmark announced it will now offer Nuance solutions as options for its MFPs
– Includes AutoStore, Equitrac and SafeCom solutions
FASB changes to leases
– Forbes magazine published article about impending changes to leases from FASB (Financial Accounting Standard Board)
– On 12/15/18, public companies will have to list leases on their balance sheet if they are longer than 12 months, and list as both as asset and a liability
– On 12/15/19, privately held companies will have to follow new rule as well
– Will have to report the lease, even if the customer’s intent is to return the asset
– Rent obligations on these leases will be recognized as debt
– Will impact company’s credit, loans, and capital requirements
Color laser printer with no toner?
– Researchers at the Technical University of Denmark have developed a new type of printing technology
– Claiming they were inspired by how butterflies and peacocks are able to create bright, iridescent colors on their wings and feathers by scattering light at the molecular level
– The printing method, called structural color technology, starts with sheets of plastic covered in thousands of microscopic pillars spaced 200 nanometers apart
– Pillars are covered with a thin layer of germanium, which is a shiny, grayish-white metalloid material
– The laser blasts the germanium until it melts onto each pillar, changing shape and thickness
– Another protective coating is applied to preserve the pillars
– When light hits the surface, light waves bounce amongst the pillars producing different colors
– Possible resolution of 127,000 dpi
– The plastic sheets can recycled by the same printer that prints on them
InfoTrends report on decline of print
– Predicts 3.6% less pages printed over next 3 years in U.S.
– 67% of companies have taken steps to simplify, remove or automate their document-related business operations or processes
– Top 5 reasons for reduction:o 40% = electronic workflows
o 30% = electronic forms
o 30% = decrease in hard copies for record keeping
o 25% = install of electronic document management
o 25% = clients requesting electronic deliveries
– Workers spend 36 minutes on average retrieving digital documentso Spend only 20 minutes on average finding paper documents
– 40% say less than 25% of their business content remains on paper
3 yr prison sentence for false copier billing
– U.S. District Court Judge Donald E. Walter sentenced Leonard Espree to 37 months in prison
– Was charge with over charging for copies installed at Calcasieu School District of Louisiana
– Was also ordered to pay $197,387.78 in restitution
– He intentionally misidentified some of the copier, leading to some of the copiers being leased twice
