Toshiba financial issues update
– Toshiba announced that it fired the chairman of its nuclear division, Danny Roderick, two days before the division filed for bankruptcy
o Replaced by Mamoru Hatazawa
o Company announced it is investigating whether executives sought to influence accounting practices in the division
– Claims that at least 10 companies are bidding to buy Toshiba’s flash memory chip manufacturing business to raise cash
o Sale of the division may not come in time for the next annual shareholder’s meeting in June, 2017
o The sale may be enough for Toshiba to resolve the negative net worth projected at the end of FY2016
o Japanese government has expressed concerns that China may be secretly funding the acquisition through a 3rd party
o “It would be a problem if technology and talent were to flow out of the country.”; warned Sadayuki Sakakibara, Chairman of Keidanren, a Japanese business lobby.
o “Toshiba’s chip business is highly competitive globally and it plays a key role for the nation’s employment. The seller needs to consider these issues before the buyer is decided if the business is going to be sold to foreigners.”; stated Hiroshige Seko, Japanese trade minister.
o “We have no leeway to even consider the national interest.”; a Toshiba board member admitted.
o Toshiba’s share are set to be delisted from the Tokyo Stock Exchange unless the company returns to a positive net worth by end of FY16 through March, 2017
– Toshiba has been forced to buy the 40% of the United Kingdom nuclear energy company NuGen that it does not already own
o Engie Corp. of France stated that it was exercising its “contractual rights” to sell its shares because NuGen was “facing some significant challenges”
o Toshiba will shell out $138.5 million for the stake
o Toshiba stated that it would “continue to look for investors interested in investing in NuGen, and seek to sell off its holding in company”
– Financial Times newspaper is reporting that Toshiba has requested a meeting with its current lenders, including Sumitomo Mitsui Banking, Mizuho and Sumitomo Mitsui Trust to ask for additional financial support.
o “assistance might take the form of increasing the company’s credit line”
o “We can’t consider Toshiba as an investment target when there is a possibility of delisting”; stated Fumio Matsumoto of Dalton Capital of Japan.
– 11 trust banks have filed suit in Tokyo District Court together against Toshiba, seeking roughly $126 million in compensation for losses they claim were inflicted on investors
o Toshiba now faces at least 16 different lawsuits
Growth to return to MFP placements?
– Research recently published by HTF Market Intelligence of Edison, New Jersey
– Entitled “Global Multi-Functional Printers Market 2017-2021”, the report predicts a CAGR (cumulative annual growth rate) of 3.35%
Ricoh to shed 1500 branch sales reps?
– According to several industry analysts, Ricoh’s corporate headquarters in Japan announced that it will implement a “bold restructuring” in the United States
– According to the Denver Business Journal, the company implemented a 5 percent reduction of its workforce nationally.
– Prior to layoff, Ricoh employed more than 26,000 people in the U.S. and more than 109,000 worldwide
– John Greco , a spokesman for the company, said in an email that the layoffs were a “difficult but necessary decision, made to more effectively address our customers’ evolving buying patterns.”
o “All of our employees are important to us, and when making organizational decisions we do so with serious consideration of our customers, our business and our employees,” Greco said.
o Greco said Ricoh is trying to more quickly anticipate its customer needs and that the changes will make it easier to do business.
– Layoff also included 77 people in its West Caldwell, New Jersey headquarters
o “included technical servicing and customer administration workers, as well as sales and sales management staff”; NJBiz reported.
– Apparently, the remaining direct branch sales force will be in one of the below 2 categories:
o “Enterprise Channel” – support of Ricoh’s largest enterprise and global customers (includes major accounts vertical markets)
o “Commercial and Industrial Printing” – includes graphic communications, including cutsheet, inkjet and wide format equipment, as well as related software for enterprise & public sector customers
– The “Small and Mid-size Business (SMB) Channel” apparently will no longer be handled by direct branch sales reps and instead; “will utilize Ricoh Family Group’s (RFG) h2 dealer network and U.S.-based inside sales channel (telemarketers)”
o Ricoh says that its “network of dealers is the h2est in the industry, and their proven results of providing superior customer service are paralleled”
o “As we further utilize our dealer network and transfer SMB customers to dealers”
o “a significant growth opportunity for all RFG dealers”
o Jim Corridi will continue to be in charge of Ricoh’s dealer division, but is not reporting to Peter Stuart (who is also in charge of the direct branch sales force)
o According to some sources, Ricoh will attempt to sell the SMB MIF to dealers for an average of $1200 per device under current service contract.
– Zacks Investment Research reacted to the news by downgrading shares of Ricoh from “Hold” to “Sell”
o The firm now has a market capitalization of $5.92 billion
Ricoh signs up new dealer
– Announced it has authorized Virginia Graphic Systems, dba Copy-Fax Digital Office Solutions
– Covers the Richmond to Virginia Beach markets of Virginia
– Dealership already carries Toshiba, Lexmark and KIP
Ricoh wins production print contract
– Award from Print Projects of Northampton, England
– Installed a Pro C9100 production color laser system
– Replaced a Xerox C75 color system
– Reasons given for choosing:
o Top speed of 130ppm
o Handles media up to 400gsm
Xerox details growth markets
– During recent press conference, Xerox detailed what its research considers growth markets in the MFP industry:
o Workflow Automation (MFPs with integrated solutions), CAGR of 13% to $3 billion market worldwide
o SMB (small to medium-sized business) MPS (managed print services) CAGR of 7% to $7 billion, and claims that 60% of SMB does not have MPS
o Production color (laser and inkjet) CAGR of 5% to $5 billion
o A4 MFPs, CAGR of 3% to $12 billion
o Large enterprise MPS and DO (document outsourcing) CAGR of 2% to $11 billion
Xerox launches new production engines
– Announced now shipping the Versant 180, Versant 180 Performance Package (180PP) and Versant 3100 production color laser systems
– Both 180 models offer speed of 80ppm, but the 180PP model offers top speed on all media types
– 3100 offers 100ppm on all media types.
– All made by Fujifilm of Japan
– 2400x2400dpi
– 10 bit VCEL (vertical cavity emitting laser) ROS (raster output scanner) imaging technology
– Built-in X-Rite spectrophotometer on 180PP and 3100 models
– Integrated registration alignment and production accurate registration
– Handles media up to 350gsm
o Supports envelope printing
o Support for coated, uncoated, labels, tabs, linen, poly, vinyl and magnetic stocks
o Bypass can hold banner sheets up to 26”
– Finishing options include; full bleed booklets with flat edge spine, and optional hole punch
– Optional EFI Fiery or FreeFlow print servers
Xerox wins production print contract
– Award from Concordia College of Mequon, Wisconsin for their CRD
– Installed a Xerox Color 1000i production color laser system
Xerox gives out details on Web Capture
– Actual maker of software is unknown
– Web-based application that can be integrated into its new ConnectKey enabled MFPs
– Runs in a web browser and enables users to drag and drop scanned documents into a desktop or web based application
– Has ability to detect networked as well as TWAIN driven scanning devices
– Users can log in from any Xerox ConnectKey enabled MFP
– Administration screen allows Xerox dealers to sell licenses and track usage, assign users and do billing
– Also has developed a “Workflow Mapping Tool” for Xerox sales reps:
o Hosted in the cloud and is free to sales reps
o Features a GUI (graphical user interface) that enables sales reps to map out their customer’s current processes
o Includes elements like how a document is processed and how much time each step takes
o Includes guided questions to help sales reps build initial maps
o Sales reps can submit the workflows to solutions specialist
o Can point customer to a database of case studies posted by Xerox
o Solutions specialist can then return with mapped out proposal showing ROIs (return on investment) based on time and labor savings
Samsung launches new A4 color MFP
– Launches the ProXpress C40 color laser MFP series
– C4062FX offers 42ppm top speed
– Document feeder scans both sides of original at same time
o Top scan speed of 40opm simplex, and 60ipm duplex
– 2250 sheet paper supply
– 7” color touchscreen LCD display control panel
o XOA equipped for optional integrated apps
– Fax board standard
– Built-in print controller
o 1.5GHz processor
o 3GB RAM
o 320GB hard drive
o WiFi option
o OCR board standard
Mega dealer makes another acquisition
– DEX Imaging, headquartered in Florida, announced it has acquired Enoch Office
– Enoch Office is a $4.6 million dealership headquartered in Baltimore, Maryland, and carries Konica Minolta, Xerox, Canon, Lexmark & HP
– “The addition of Enoch Office supports our strategy to strengthen and expand our services in Baltimore, providing even more product offerings and enhanced service manpower to the region.”; stated CEO Dan Doyle, Jr.
Kodak wins production print contract
– Award from University of Virginia’s Printing & Copying Services (CRD)
– Installed a NexPress SX 2700 production color LED system
– Included 5th toner option and banner sheet feeder
Canon wins university contract
– Award from George Mason University of Fairfax, Virginia
– “a dynamic and robust print program that helps reduce costs while simultaneously addressing technical and environmental burdens”
– Length of contract, and number of devices not published
Kodak announces changes
– Announced that it is no longer looking to sell off its Prosper production inkjet division
o “The is a pragmatic decision given the improvements in the business and the offers received. Prosper performed well in 2016 with a 40% increase in annuity sale for the full year”; stated Jeff Clarke, CEO.
– Has named Randy Vandagriff as new President of Enterprise Inkjet System Division
– Replacing Philip Cullimore who has left company
Canon shipping new A3 color laser MFPs
– Launched the imageRUNNER C3525i and C3530i models
– Offer top speeds of 25ppm and 30ppm respectively
– 4 tandem OPC drum design with pQ (polymerized quality) toner
– Replace the C3325i and C3330i
– White plastic exterior with dark grey plastic accent in middle
– 10.1” full color touchscreen LCD display
o My ADVANCE feature for customizing display
o Optional 101 key keyboard
– Universal Login Manager for serverless authentication
– “human sensor” that detects worker body heat to wake up
– 34 second warmup time
o 8.2 second first color copy out time
– Optional fax board
– Comes standard with 1200 sheet capacity
o Can be upgraded to 2300 sheets
– Finishing options include:
o Inner shift sorter
o Booklet finisher with 16 sheet capacity
o Staple finisher
o 2/3 hole punch kit
– Document feeder holds up to 150 originals
o Scans both sides of original at same time
o Top scan speed of 80opm or 160ipm
o Auto blank page detection
o Double feed detection
– Built-in print controller:
o Actual maker unknown
o
Canon refused to disclose processor speed
o 10/100/1000BaseT & USB ports standard
o PCL, PS and XPS drivers standard
o Scan to email, SMTP, SMB, FTP, WebDAV, folder
o 3GB RAM
o 250GB hard drive
§ Encryption with FIPS140-2 validation
§ Optional data erase scheduler
§ Optional kit needed for IEEE 2600.1/Common Criteria certification
Staples for sale?
– Due to government concerns, it was unable to merge with OfficeMax/Office Depot
– Now the Wall Street Journal is reporting that the company is in talks with a number of private equity firms involving a possible sale
Canon shipping new A4 color laser MFPs
– Launched the imageRUNNER C255iF and C355iF models
– Offer top speeds of 25ppm and 35ppm respectively
– 4 tandem OPC drum design with pQ (polymerized quality) toner
– White plastic exterior with dark grey plastic accent in middle
– 1200x600dpi
– full color touchscreen LCD display
– Universal Login Manager for serverless authentication
– 34 second warmup time
– Optional fax board
– Comes standard with 650 sheet capacity
o Can be upgraded to 2300 sheets
– Optional stapling finisher
– Document feeder holds up to 100 originals
o Scans both sides of original at same time
o Top color scan speed of 30opm or 50ipm
– Built-in print controller:
o Actual maker unknown
Canon refused to disclose processor speed
o 10/100/1000BaseT & USB ports standard
o PCL, PS drivers standard (XPS is option)
o Scan to email, SMTP, SMB, FTP, WebDAV, folder
o 3GB RAM
o 250GB hard drive
§ Encryption with FIPS140-2 validation
§ Optional data erase scheduler
§ Optional kit needed for IEEE 2600.1/Common Criteria certification
Canon gets into drone business
– Announced partnership with Prodone Co. of Japan
– Prodone is a maker of flying drones, and Canon will provide digital video cameras
– Projecting sales of $5 billion by 2020.
– Product aimed at the search and rescue market due to low light capture capability
– Suggest MSRP of $38,000
– Capable of payload of 10 kilograms
Cartridge recycler makes acquisition
– Clover, headquartered in Hoffman Estates, Illinois, is a provider of remanufactured print cartridges used by dealers in managed print services programs, announced it has acquired the ColorLabs Ink Innovations division from DC Imaging.
– ColorLabs provides a line of aftermarket supplies for mailing and packaging systems
– “Afermarket suppliers are already providing aftermarket supplies for bar code, ID card and wide format printers as MPS providers have expressed interest in including these kinds of devices in their MPS programs”
Printing News study of printshops
– Annual franchise printshop review
– Alliance (aka Allegra, American Speedy, Insty Prints, KKP, Speedy Printing and Zippy Print) had 2016 US sales of $256 million, up from $232 million
o Average sales per location of $1.1 million, up from $877,600
– Alphagraphics had 2016 US sales of $277 million, up from $268 million
o Average sales per location of $1.1 million
– Franchise Services (aka PIP, Sir Speedy, Multicopy, Signal Graphics, EastNet Print) had 2016 US sales of $289 million, down from $295 million
o Average sales per location of $851,000
– ICED (aka Kwik Kopy, Ink Well, Franklin’s Printing, American Wholesale Thermography) had 2016 US sales of $29 million, down from $60 million
o Average sales per location of $409,000
– Minuteman Press had 2016 US sales of $386 million, up from $380 million
o Average sales per location of $591,000
– Percent of revenue by job type:
o 25% = digital color
o 21% = brokered services
o 12% = wide format
o 11% = digital b/w
o 11% = offset press
o 10% = finishing and mailing
o 8% = prepress
o .8% = label printing
o .7% = web based services
Landa announces beta installs
– Graphica Bezalel, a printshop in Israel, will take delivery of a Landa S10 Nanographic Printing Press (production color system)
o Will be used to produce folding cartons, packaging
– Imagine!, a printshop in Shakopee, Minnesota, also will take delivery of an S10
o Will be used to produce point of purchase solutions
Kyocera appoints new president
– Kyocera (aka Kyoto Ceramic Company of Japan) announced that Norihiko Ina is the new president of Kyocera Document Solutions Inc. (worldwide)
– He was previously in charge of the division in the Americas, which is not led by Yukio Ikeda.
Solution dealers marketing methods
– Business Solutions magazine released results of survey of VARs (valued added resellers of business solutions) in the U.S.
– What marketing methods were the most successful with best ROI (return on investment)
o 18.3% = Direct mail
o 14.1% = Lunch/learn events
o 14.1% = Trade show booth
o 9.9% = Lead generation service
o 8.5% = blog
o 7% = Google ad words
o 7% = Hosting webinar
o 4.2% = whitepapers, case studies on website
o 4.2% = Facebook ads
o 2.8% = web banner ads
o 2.8% = YouTube videos
o 1.4% = magazine ads
Hyland reports last year’s numbers
– Hyland Software, headquartered in Cleveland, OH, is maker of OnBase ECM solutions
– Reported that its total revenue increased 17% in 2016
– Increased is SaaS (software as a service) revenue up 72%
– Professional services revenue up 33%
– Added 742 net new customers
– 97% maintenance renewal rate
Hyland partners with Iron Mountain
– Hyland Software, maker of OnBase ECM solutions, announced it has entered into partnership with Iron Mountain, provider of document storage and information management services.
– Apparently Iron Mountain will market Hyland software solutions under name of Iron Mountain Workflow Automation
Police arrest man for stealing cartridges
– Police in Detroit, Michigan reported that they have arrested a 19 year old many on 4/1/17
– Allegedly walked into a Target store, and filled his jacket with print cartridges, and attempted to leave store, but was stopped by security
HPE completes separation of division
– Hewlett Packard Enterprise (which separated itself from HP, which makes MFPs, printers, PC, laptops, etc.) announced that it has completed the divesture of its “Enterprise Services” business unit and merged it with Computer Sciences Corp. to create “DXC Technology”
– HPE will now focus on:
o “making IT simple through secure, software-defined offerings that enable customers to move data seamlessly across their traditional data centers, private and public cloud environments”
o “redefining IT outside of the data center by powering the emerging intelligent edge that will run campus, branch and industrial IoT applications”
o “providing the world-class expertise and flexible consumption models to help customers transform their IT environments”
o Employs 25,000 specialists across 80 countries
o (HPE is a partner of Konica Minolta in the Workplace Hub series)
IDC reports on data creation explosion
– New report “Data Age 2025” published
– 20% of data in global data sphere will be critical to our daily lives by 2025
– 10% will be hypercritical
– Average connected person will interact with connected devices nearly 4800 times per day
– Amount of data sphere subject to data analysis will grow to 5.2 zetabytes
– More than 25% of data created will be real-time
o IoT real time data will constitute over 95%
Samsung has to pay for patent violations
– The Quanzhou Intermediary Court of China ruled that Samsung violated smartphone patents that belong to competitor, Huawei Technologies
– It must pay Huawei a total of $11.6 million
Teacher arrested for smashing MFP
– New Town, North Dakota police announced that they have arrested Lukas Jeremy Kostelecky, 27.
– He is charged with using a hammer to destroy a $6695 MFP at the New Town High School.
– He could face 5 years in prison if convicted.
Winners of MPS Leaders awards
– Annual recognition given by Photizo Group to independent dealers who demonstrate leadership in offering managed print services
o Auxilio Inc. of Mission Viejo, CA
o EO Johnson of Wausau, WI
o OneDOC of Oklahoma City, OK
o Qualpath Inc. of Pompano Beach, FL
o Word Processing Services Inc. of Hagerstown, MD
InfoTrends study of transpromo printing
– Transaction page volumes (i.e. invoices, bills, etc.) will decline by 7.8% per year
– However, transpromo print (incorporating color ads) will experience CAGR of 10.5% and surpass 34 billion impressions by 2020
– Business executives predict that 55% of their annual customer communication will be transactional as opposed to promotional
– 80% believe it is important to print in color
– 47% of consumers prefer to receive legal notices, letters and other business communications via physical mail
Canon not allowed to change name of TMS
– Canon announced it will have to wait until at least 2018 to change the name of Toshiba Medical Systems to Canon Medical Systems
– “We have already made provisional registration of Toshiba Medical Systems to prevent others from using the name.”; stated Charles Ju, president of the division.
– In January, China reportedly slapped a $43,000 antitrust fine on Canon for “allegedly violating antitrust regulations with its acquisition of Toshiba Medical Systems”; according to China News newspaper
– Fujifilm was displeased with the FTC decision to let the Canon-Toshiba deal go through, despite the illegal methods used. “We demand an explanation for why the scheme was allowed this time when it is not going to be accepted in the future. It was an unfair fight for us.”
– The acquisition of Toshiba Medical Systems is part of Phase V of Canon’s Excellent Global Corporation Plan, a five-year initiative launched in 2016.
– “Canon aims to embrace the challenge of new growth through a grand strategic transformation,” it said in a statement in February concerning its Toshiba acquisition.
– One of the most important parts of its strategy, it stressed, was “to cultivate its health care business.”
HP now shipping new LaserJet products
– All offer optional stapling or booklet making finishers with optional hole punch
– HP Color LaserJet E77822dn, E77825dn, E77830dn, E87640dn, E87650dn, E87660dn
o All are A3 color laser MFPs
o 4 tandem OPC drum design
o Speeds are last two digits of model number; 22, 25, 30, 40, 50 & 60ppm
o Optional fax board
o 10.1” color LCD touchscreen
o Document feeder holds up to 100 originals
§ Scans both sides of original at same time
§ Top scan speeds of 80opm or 160ipm
– HP Color LaserJet E77822z, E77825z, E77830z, E87640z, E87650z, E87660z
o All are A3 color laser MFPs
o 4 tandem OPC drum design
o Speeds are last two digits of model number; 22, 25, 30, 40, 50 & 60ppm
o Optional fax board
o 10.1” color LCD touchscreen with pullout keyboard
o Auto page crop
o Built-in OCR
o Document feeder holds up to 250 originals
§ Scans both sides of original at same time
§ Top scan speeds of 120opm or 240ipm
HP recognizes mega dealer
– HP announced it has given its “MPS Best In Class Partner” award to Marco, which is headquartered in St. Cloud, Minnesota
– Claims to have 3,700 Managed Print Services customers across the country
– Has 1100 employees in 46 locations across the Midwest with 31,000 customers