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American Reprographics Company's CEO Discusses Q2 2011 Results - Earnings Call Transcript

Stocks in this article: ARC

Our MPS FM revenue is up 13.1% year-over-year and these revenues make up more than 23% of our overall revenues now. Our color revenue grew 2.5% year-over-year. Our global solutions team continues to making rules into the top 50 AEC companies. In July, we opened our first location in Hong Kong.

In the first six months after launching plan will collaborate, we placed 100 seats a month on average, during the time we’ve added 907 projects, 335 project files, and expose the product to more than 10,000 construction team members.

And later this month we will be releasing version 2.0 of ishipdocs adding to our Cloud based printing and file sharing application. While these products have yet to make meaningful contribution to our revenues is clear that our products and services are increasingly integrated into our customers work flow.

None of these things could have been accomplished as we not being bold enough to restructure our organization, and investing some of our new initiatives, in fact our results would have been entirely different. The company we were would have been a company with an oversized infrastructure with weak sales, struggling to find a way to maintain its profitability and size.

The company, we are have sized itself appropriate to the demands of the market generates excellent margins, strong cash flow and its position for growth. The management team at ARC is as nimble now as it ever has been, while current market conditions remained difficult. We are stronger, faster and more decisive knowing well that is necessary for all well-being now and for our future.

During the past seven months, we are engaged in a significant and ongoing restructuring that optimizes our operational and management structure for changing market conditions. Including the continuing technology transition occurring in our industry.

The consolidation of our brand has given us excellent opportunities to eliminate redundancies in share markets and to pool resources across geographical boundaries in ways we never considered in the past. By rationalizing our footprint, we’ve been able to bring more efficiency and productivity to our production teams and streamline our middle management. Again something we had not done previously. The difficult market conditions also appear to be accelerating the use of technology in document management.

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