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WEEKEND MFP INDUSTRY NOTES
8-19-07

The following is a quick review of copier/MFP industry news from industry publications.


- Brother Corp. of Japan announced that it will invest $1.1 billion in research and development to create new color laser multifunctional products for the future. This upset its shareholders who were hoping instead for a larger dividend.

- A company in Japan, Unitka Ltd., has invented a way to make plastic parts by using 30% vegetable materials. Fuji of Japan, which makes Xerox printers and copiers, has already announced it will attempt to use this new product in future models.

- Even though 4 years have passed, the shooting and robbery that occurred in a Xerox credit union, in Webster, NY is still unsolved. The incident left one Xerox employee dead, and one wounded.

- Xerox set base MSRP pricing on the new b/w digital MFPs it has introduced:
o All actually made by Fuji
o All are WorkCentre models that offer b/w output only
o 5632, 32ppm, for $5499
o 5638, 38ppm, for $7499
o 5645, 45ppm for $9199
o 5655, 55ppm for $13,399
o 5665, 65ppm for $15,399
o 5675, 75ppm for $20,299
o 5687, 87ppm for $25,399
o 600x600dpi
o Optional generic print controller (most likely made by Marvell Technology)
o 1.4GHz processor
o 5665, 5675 & 5687 offer COLOR scanning

- Fuji of Japan, through its Dimatix subsidiary, announced it has developed a new inkjet printer that can apply decorations to food, using ink that does not alter the taste of the food, but has no health benefits. In a demonstration, it showed logos on chocolates.

- Xerox announced a partnership with Cloudmark Inc., which apparently will be an embedded data security solution for Xerox MFPs in the future.

- Xerox is now training Office Depot copy center employees to become “Xerox Certified Print Specialists”.

- Xerox has acquired Indianapolis-based Marbaugh Reprographics Supply Company, Inc, an Oce’ dealer. Former co-owner Brad Clough, will continue as vice president and general manager. This is proof that even though Xerox just spent $1.5 billion to purchase all Global locations, it continues to pursue buying more dealers in the U.S.

- A company in Russia launches a new, heavy-duty coin-operated copier, called the Kopirkin:
o made by Lisko, LLC of Moscow
o steel case that has a small Fuji-made Xerox b/w copier inside
o self-service with bill and coin acceptance
o reinforced platen glass that resists damage due to vandalism
o for high traffic areas where unit is not supervised
o pricing yet to be announced

- Alphagraphics, a print for pay chain, hired a Xerox exec to run a sales training program for its store employees. The program is “Marketing and Sales Academy” and will be run by Julie Higgins.


- Canon announced it will build a copier manufacturing plant in Ban Was Industrial Park, Ayutthaya, Thailand.

- Brand Keys, a research firm, announced that based on a survey of 24,000 end users in the U.S., Canon is “#1 in Customer Loyalty” for 2007 for office copiers.

- Matsu****a, parent company of Panasonic, announced it has developed a color inkjet printer that can be used to apply liquid makeup on humans.

- Epson announced the new Stylus Pro 11880 offering:
o 64” wide color inkjet printing (63.75” wide printing on 64” wide paper)
o Uses Epson UltraChrome K3 inks
o Cyan, magenta, yellow, photo black, matte black, light cyan, light magenta, and two other colors for a total of 9 colors on-line
o Each ink cartridge is 700 milliliters
o Uses Epson Micro Piezo crystal inkjet head technology
o 360dpi for each color
o 2880x1440 total dpi
o 366 ink nozzles per color (world’s highest)
o 40,000 ink droplets per second print speed
o 30 square meters per hour print speed
o Handles up to 1.5 millimeters thick media
o 10/100/1000BaseT & USB ports
o Color stability can be gained within half an hour (24 hours needs for HP products)
o Base MSRP around $15,000

- Epson launched a new color inkjet printer that boasts speeds of 20ppm for color. Details:
o 20ppm speed is only achieved in the “Draft Mode”, which is very low quality, and only if there is 5% coverage per page per color
o Actual print speed is dependent on the amount of coverage (as slow as minutes per page)
o Base MSRP of $89.99
o Optional extended warranties do NOT include the ink cartridges (cost per page as high as $1.00)
o Max paper width handling of only 8.5” (up to 44” long)

- Dell launched a desktop b/w laser MFP, the Dell 1125 offering:
o Base MSRP of $249
o 21ppm top print speed
o 11ipm top scan speed
o 600x600dpi
o 260 sheet paper tray
o 30 sheet document feeder
o No auto duplex
o No finishing
o Letter/legal size paper only
o Built-in print controller with 133MHz processor
§ Print job is processed by the end user’s computer, not by the MFP
§ 32MB RAM
§ USB port
§ Scan to e-mail/PDF/OCR
o Comes with fax board
o Black toner cartridge yield of 1,000 pages based on 5% page coverage for $50
o 9,000 page per month maximum duty cycle

- At the upcoming Graph Expo show in Chicago, Microsoft will conduct a “Land Showcase” to explain to print shop owners how the new Microsoft Vista operating system will work with digital printing systems. The feature of Vista that impacts digital printers is called “XPS”, and is not yet fully implemented by Microsoft.

- Rochester Software Associates (ROCS) announced the new “Printer Management Module” featuring:
o Option for WebCRD package
o allows CSR at customer’s location to monitor a given digital print job in real time
o eliminates need for CSR to run out to the printer every time an end user asks for status on a print job

- Kodak announced new tools to teach end users how to sell digital color output from its NexPress production color systems:
o The program is called; “MarketMover”
o To new modules are; Retail Vertical Markets & Advertising Agencies
§ Segmented databases of prospects
§ Detailed information about specific sales and marketing challenges
§ Customizable direct mail templates, ads, press releases, media contacts, open house materials, telemarketing scripts and presentations
§ Included DVD video
o Its optional Darwin VDP software now works with Adobe InDesign

- PSI Engineering announced a new color laser envelope printing system that is based on an Okidata-made LED engine.
o Color Laser Mail 3600
o 36 envelopes per minute top speed
o Up to 1000 envelopes at a time
o Okidata engine modified to properly heat and melt toner on envelope (but modifications prevent the engine from being used to print on paper)
o Sold and serviced in the U.S. by PSI of Canada

- Staples announced it now offers in store a “Business Cards in Minutes” kiosk:
o Uses HP software
o Prints 100 cards in 30 minutes in full color with photos
o Allows for creation of business cards, and/or “Social” cards for dating purposes
o $29.99 for 100 cards

- Staples also offers an Internet site for customers to submit print jobs on-line, and then pick up at nearest Staples location. This site is powered using EFI Digital StoreFront. Visit http://www.staples.com/sbd/cre/programs/copyandprint

- Hewlett Packard provided details on its last quarter financials on the division that sells printers/MFPs:
o revenue up 8% to $6.8 billion
o supply revenue grew 9%
o commercial hardware revenue grew 6% (includes Indigo)
o consumer hardware revenue grew 10%
o printer unit shipments up 8%
o commercial units up 17%
o MFP sales up 76% (includes Canon laser engines and the new Edgeline inkjet MFP)
o Profit of $981 million, up to $884 million
o It is purchasing NeoWare, maker of notebook computers, for $335.8 million

- JVC released a new high end, high-definition camcorder, the HD Everio GZ-HD3 that uses lenses made by Konica Minolta.

- According to an article on PC World magazine’s website, apparently if an end user is on the phone with Hewlett Packard’s inkjet printer support hotline for more than 30 minutes, due to the cost of the support in contrast to the selling price of the unit, the caller is pushed off the line.

- A used copier dealer in Florida announced that they will post videos for anyone to learn how to fix copiers. Eco Business Systems of Winter Park, FL, owned by Doug Whitmer explained; “I wanted to create a convenient resource to help people make the best decision for their needs. In tighter economic times, refurbished machines present a viable opportunity”

- EFI announced that it will host another “Connect” show next year at The Wynn Resort in Las Vegas, based on this year’s successful turnout.



- The Nasdaq stock market warned printing technology company Electronics For Imaging Inc. (EFI) that it could be delisted because it hasn't filed its most recent quarterly report.
o Investigated its own stock option grants and is restating its financial results. It hopes to catch up on required filings by the end of the third quarter, though it said that date could change.
o EFI didn't file its 10-Q report for the quarter ended June 30 because of the investigation and restatement.
o John Ritchie is the company's chief financial officer. In June, the company moved its then CFO, Joseph Cutts, to the non-executive position of vice president. Cutts was CFO from 2000 to 2006.
o EFI also said it will reprice any unexercised options held by current employees to reflect accurate stock prices when they were hired. Employees who benefited from backdated options who no longer work at the company will be asked to repay the difference.
o EFI said it would also separate the jobs of CEO and chairman of the board of directors.
o CEO Guy Gecht was kept at the helm of the company, while board member Gill Cogan was named interim chairman.

- Beware of a new color laser MFP from Lexmark that is meant to compete against traditional floor-standing color laser MFP/copiers. The new Lexmark X945 is being marketed by some computer dealers, on-line resellers, and some copier dealers:
o When fully loaded, looks very similar to Xerox color MFP
o Scan/fax/print/copy all come standard
o Base MSRP of $12,499 (street price as low as $8K)
o the print engine is actually made by Fuji of Japan (and is same as that used in the Xerox WorkCentre C3545)
o The scanner and color LCD control panel are most likely made by another vendor (Avision?)
o 4 tandem OPC drum design
o Polymerized toner, no fuser oil
o 600x600 dpi actual (advertised as offering 2400dpi with interpolation)
o 2/4 bit selectable (not 8 bit)
o 40ppm color speed
o 45ppm b/w speed
o 9 second first print out time, over 10 seconds for a copy
o 200K/month max duty cycle (based on b/w output)(color would most likely only by 50K)
o 70 sheet automatic document feeder
§ scan speed of 45ipm, color scan is only 300x600dpi
o 100 sheet stack bypass
o 520 sheet paper drawer
o Designed to handle only 80gsm in the drawers, and up to 110lb index (220gsm) in bypass
o Maximum paper supply with options of 3,140 sheets
§ 3500 sheet deck $1549
§ Three 520 sheet drawers for $1249
o Weighs 201lbs.(383 lbs. fully loaded)(mostly plastic)
o Auto duplex standard
o Built-in generic print controller
§ 1.35 GHz processor
§ 512MB RAM (can upgrade to 1024GB)(required for 4 bit)
§ 80GB hard drive for job spooling
§ HP PCL & PostScript emulations
§ 10/100/1000BaseT & USB ports
o Optional staple/hole-punch finisher $1999
o Optional booklet finisher for $3499
o Optional extended Lexmark warranties offer next day service, but do NOT include consumables
§ 1 year approx $919
§ 2 year $1549
§ 3 year $2312
o Consumables that customers must buy separately:
§ Cyan, yellow or magenta toner, yield of 22,000 based on 5% for $379 each
§ Black toner, yield of 36,000 based on 5% for $163
§ Waste toner kit, yield of 30,000 for $33
§ Maintenance Kit#1, yield of 100,000, based on b/w pages, for $996.00
§ Maintenance Kit#2, yield of 600,000, based on b/w pages, for $996.00
§ Black drum kit, yield of 53,000, for $314
§ Color drum kit (CMY), yield of 47,000, for $942
- A group of monks in Wisconsin, who sell generic toner and ink cartridges under the website; “LaserMonks”, reported that it sales have increased to $7 million per year. All the profits go to the monastery and other charities. It is located on the Cistercian Abbey, in Spring Lake, Wisconsin, and run by Father Bernard McCoy.

- Two women were arrested in Beatrice, Nebraska for attempting to use fake $20 bills at a general store that were made on a color copier.

- Sharp announced pricing details on the new MX-6201 and 7001 color MFPs:
o 50cpm color and 62cpm b/w and 70cpm b/w
o Base MSRPs of $32,850 and $38,850
o 3500 sheet letter size deck for $1495
o 3000 sheet ledger size deck for $2895
o Stapling finisher $2895
o Booklet finisher $4495
o Hole punch kit $810
o Post process cover inserter $2095
o Optional PostScript for generic controller $745
o Optional EFI Fiery embedded controller $4775
§ EFI Impose $3125
§ Color Profiler $3200
§ Pageflex Persona VDP software $6990
§ PrintShop Mail VDP software $1500

- Industry analysts are reporting that IKON plans on becoming a reseller for the Hewlett Packard Indigo production color system to start their new fiscal year, 10/1/07.

- Pacific Office Automation (POA), a dealer headquartered in Portland, Oregon, is expanding.
o Bought a Toshiba dealer in Albuquerque, New Mexico
o Bought a dealer in Salt Lake City, Utah.
o Bought a Ricoh/Sharp dealer, named Documation, with locations in Albuquerque, Santa Fe, New Mexico, with headquarters in San Antonio, Texas. Former owner is Lou Scantland. Mr. Scantland was a partner in the original Sharp dealer named Unicopy, which had locations across the southwestern U.S., which sold out to DANKA. He started Documation after his departure from DANKA.
o POA has locations throughout the states of Oregon and Washington, including Seattle, Portland, etc. In addition, the company also has a location in Phoenix & Tucson.
o Carries Konica Minolta, Sharp, Ricoh, Toshiba, Hewlett Packard, and Xerox printers.
o Owned by Terry Newsom
o Founded in 1976
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