WEEKEND MFP INDUSTRY NOTES
2-1-08
The following is a quick review of copier/MFP industry news from various trade publications.
Canon gave a tour to journalists of its camcorder plant in Oita, Japan. Details:
- Manufacturing is done by teams or cells, rather than an assembly line
- Each cell has 20 members
- Each cell adopts a name like “Emperors of the Night” or “King of the Ninja”
- Camcorder is assembled every 20 minutes
- Total plant production is 500 camcorders every 8 hours
- Workers get 10 minute break every 2 hours, and dinner (no lunch break)
- Work day is 12 hours
- Parts are supplied to the cells by self-guided supply carts
- Total of 70 cells work different shifts
- Each cell is 20 meters apart
- Total plant is 77,000 square meters
- Total production is 200 million units per year
- Only automation used is for lenses, where glass is heated to 700 degrees Farenheit to form lens
In response to declining birth rate in the country of Japan, Canon’s spokesperson, Hiroshi Yoshinaga, announced that it will allow its Japanese workers to leave early twice per week to encourage them to have more babies. “Canon has a very strong birth planning program. Sending workers home early to be with their families is a part of it.”
Canon announced it will close its office in Amstelveen in the Netherlands in a cost cutting move.
More details on the last quarter’s financials for Canon:
- profit fell 81% to 35.8 billion yen
- predicts further drop to a 14 year low
- net income falls 91% to $130.4 million
The final court action in the Xerox financial fraud case was settled on 1/14/2009:
- Xerox agreed to pay $750 million settlement
- Company was charged with overstating earnings from 1997 to 2001
- Judge Alvin W. Thompson of the U.S. District Court in Hartford, CT decided that Xerox should pay $120 million in attorneys’ fees plus $3.3 million in costs
More details on last quarter’s financials from Xerox:
- Stock down to $7 per share
- Total revenue down 10% to $4.4 billion
- Profit of only $1 million
- Paid legal costs (see above)
- Spent $296 million on severance packages for 3,400 laid off workers
- Now employs a total of 51,700 worldwide
- Projecting it will end its year with $800 million in cash
- Projects $7.6 billion in debt
- Service revenue down 8%
- Supply revenue down 11%
- FM revenue up 3%
Xerox sent out an e-mail ad campaign to boost sales of its MFPs. Details:
- $128/month for a Xerox 7232C color MFP
- $102/month for a Xerox 5632 b/w MFP
- Chance to win a 40” Sony HDTV flat screen
Xerox, through its Global division, announced it has acquired the largest Ricoh dealer in the U.S., named COMDOC:
- has locations across Ohio, West Virginia, Pennsylvania & New York
- was founded in 1955
- has 14,000 customers
- 640 employees
- Was employee owned
- CEO was Riley Lochridge
- $125 million in sales last year
A Ricoh dealer, The Woodburn Company, of Seattle, Washington, won a $1.8 million bid renewal from Nordstroms department store.
- Covered 180 locations in 27 states
- Over 360 copiers
- Owners of Woodburn are Frank and Penny Fukui who bought company from Jack Woodburn
- Dealership has a total of only 4 service technicians
Ricoh announced it will offer optional embedded solutions from Pharos Systems. Pharos makes account tracking software, named “Pharos Blueprint” and “Pharos Uniprint”.
IKON, a division of Ricoh, announced it will have a large booth at the upcoming LegalTech Show in New York to increase its sales to law firms.
BLI recently issued a review of some of the copier manufacturers’ customer satisfaction guarantees:
- Kyocera = 3 years
- Oce’ = 5 years or length of lease
- Sharp = 3 years
- Toshiba = 3 years or length of lease
- Xerox = 3 years or length of lease
Toshiba claims that it has signed up 60 of its dealers for its Encompass managed print services program, based on FM Audit software.
Toshiba, in a cost cutting move, announced it will close several computer chip plants in Japan due to declining sales. During last quarter, its net profit declined 45%. It will record a loss of 280 billion yen.
NEC reported that it will lay off 20,000 workers worldwide to cut costs. Some reporters are claiming that it may merge with Toshiba.
A Kyocera dealer, Eicholtz Company, won a bid from Adams County, Pennsylvania. Details:
- county has 45 copiers
- included DocStar document management
- KM-2560 b/w copiers for $109/month with clicks @ $0.005 each
- KM-C3225 color copiers for $118/month with b/w clicks @ $0.0089 and color clicks @ $0.05.
Sharp & Samsung are still battling in court over patents regarding LCD high definition TV sets. In the latest ruling, Samsung seeks to prevent Sharp from selling LCD products in the U.S.
DocuWare won a bid to supply its document management software to the Roanoke Valley Detention Center in Roanoke, Virginia. In addition, it also won award for Sigma Financial of Ann Arbor, Michigan.
A European company named “Visivo” was founded to help end user companies determine if they are being overcharged by copier companies.
- Run by Henrik Lundsholm, the company claims to have helped large companies like DHL and Sanofi Aventis Group.
- Visivo uses PrinterRx meter collection software to provide an advisory service to customers who feel that they are paying too much for service and supplies for their printers and copiers.
- Visivo claims that in some cases, it assists its customers in suing their copier/printer vendors in order to break or renegotiate contracts.
- Also is hired to assist in creating RFPs and conducting bids.
Destiny Arnold, Dontez Yeager, Earnest Moore, Marcus Id-Deen and Tommy Robinson were all arrested in Akron, Ohio, after they were caught making counterfeit $50 bills on a color copier.
The U.S. Postal Service reported a loss of $3 billion in 2008. Postmaster General John Potter is requesting that Saturday delivery of mail be stopped in order to cut costs.
Sandy Alexander Inc., a print shop in New Jersey, announced it has purchased 2 seven color Hewlett Packard Indigo 7000 production color systems. Top speed of 120ppm.
A Canadian newspaper reports that Hewlett Packard is downsizing its Vancouver, Canada operation, which is the headquarters for its Edgeline color inkjet MFPs. The Edgeline project will now apparently move to Singapore. (will it disappear entirely?) Comments made about the Edgeline at the recent Lyra Research convention:
- “The Edgeline has had no success at all”
- “objective failure”
Panasonic announced that it will close factories in the Philippines and Malaysia due to declining sales.
Computer printer maker, TallyGenicom, announced that it is filing bankruptcy, and its assets will be acquired by printer maker Printronix.
Lexmark announced that during last quarter, its profits dropped from 82% to $18.1 million. Printer sales were down 29%.
Kodak announced it will layoff an addition 1,300 in a cost cutting move. It will report a loss of $137 million.
EFI, maker of Fiery print servers, reported a loss of $100 million during last quarter.
A company named PlanOn, launched the world’s smallest page printer. The FS910 PrintStick offers:
- is only 1” H x 10.75” W x 1.9” D
- sells for $299
- uses thermal technology where a print head applies heat to specially treated paper to create image
- USB port
- Weighs 1.5 pounds
- Support BlueTooth wireless technology
- Built-in lithium-ion battery
- Top speed of 3ppm letter size pages
- Self-contained cartridge holds roll of thermal paper for 20 pages
- Paper rolls sell for $24.99 for pack of three
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