Lexmark International Signs David Reeder as New CFO - Analyst Blog

Renowned imaging and printing solutions provider Lexmark International Inc. (LXK) recently announced the appointment of David Reeder as its Chief Financial Officer (CFO) and Executive Vice President. Reeder will hold the new office from Jan 9, 2015 after stepping down from his position as the CFO of Electronics for Imaging, Inc. (EFII).

In the meantime, Gary Stromquist, will continue to work as the interim CEO at Lexmark and will carry on as Vice President (VP) of the company's Imaging Solutions and Services division.

Reeder brings to Lexmark extensive experience in financial management along with global business insight in both services and technology. The newly appointed CFO is expected to drive Lexmark to newer heights. With his leadership traits, expertise and experience, he is expected to unlock further value. We believe that Reeder's sector know-how will prove beneficial for Lexmark.

With past experience in companies like Broadcom Corp. where he played a major role in manufacturing and operations management, Reeder is expected to bring in transformative changes at Lexmark and augment its revenues going forward. Reeder previously served as CFO and vice president at Cisco's (CSCO) Enterprise Networking Division. Over the years, he has successfully steered the companies where he has worked toward growth through tactical initiatives and expects to emulate similar success at Lexmark.

Reeder holds a series of educational and professional degrees, including a Bachelor of chemical engineering degree and a Masters of Business Administration from Arkansas University and Southern Methodist University, respectively.

With such extensive experience in the world of technology, Reeder is likely to be an asset for the company and will likely contribute to the company's growth.

We are optimistic about the company after it posted third-quarter non-GAAP earnings per share of $1.05, which comfortably surpassed the Zacks Consensus Estimate of 93 cents as well as its own guidance range of 85–95 cents. Also, earnings per share increased 2.9% from the year-ago quarter due to higher revenues and a lower tax rate.

We see good growth prospects for the company in the software sector, although it is trying to expand its hardware solutions business as well. Lexmark's recent acquisition of ReadSoft also bodes well as it will strengthen its position in the European business process management market.

However, the company needs to be wary of its competitors, which include formidable names such as Xerox Corp. (XRX).

Currently, Lexmark has a Zacks Rank #3 (Hold).