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As a reminder, Lexmark presents its financial results on both a GAAP and non-GAAP basis. Adjustments to GAAP results in determining non-GAAP results fall into two broad general categories; restructuring-related charges and acquisition-related adjustments.Restructuring and related charges that are excluded from non-GAAP earnings consist of accelerated depreciation, employee termination benefits, and contract termination and lease charges. They also include project costs that relate to the execution of the restructuring plans. Acquisition-related adjustments include adjustments to revenue, amortization of intangible assets, and acquisition and integration costs. For additional information on this topic, I encourage you to refer to Slide # 27 in the 10-Q supplemental information slide deck that has been posted to our Investor Relations Web site this morning. Also as a reminder any of today’s remarks that are not statements of historical fact are forward-looking statements and involve certain risks and uncertainties that are disclosed in the Safe Harbor Section of our earnings releases and our SEC filings. Actual results may differ materially from such statements and Lexmark undertakes no obligation to update any forward-looking statements. With that I’ll turn it over to Paul. Paul Curlander Thank you, John. Our second quarter financial results were significantly better than expected reflecting strong revenue and earnings growth with double-digit year-to-year growth in both hardware and supplies revenue and good growth in all geographies. Revenue for the second quarter was $1.033 billion, up 14% year-to-year. For the quarter hardware revenue was up 26% year-to-year and supplies revenue was up 10% year-to-year. Revenue from Perceptive Software was about $6 million in the quarter. Second quarter 2010 earnings per share were $1.07. Excluding restructuring and acquisition-related adjustments, earnings per share in the second quarter were $1.23, an increase of 123% year-to-year. In our Printing Solutions and Services Division, or PSSD, second quarter revenue was $752 million, up 20% year-to-year and better than expected with strong year-to-year growth in both PSSD hardware and supplies revenue.
PSSD operating income excluding restructuring was $168 million, up 92% year-to-year. PSSD laser units for the quarter grew 7% year-to-year with over 30% year-to-year growth in workgroup lasers and laser MFPs benefitting from our recent product line expansions. This improvement in laser mix towards workgroup product and MFPs resulted in PSSD hardware revenue growth of 36% year-to-year.In the second quarter of 2010, our laser hardware sales continued to be supply constrained primarily due to the stronger than expected demand in component shortages in the market. During the quarter, we continued to have strong growth year-to-year in our enterprise Managed Print Services business. According to our internal analysis, for the first half of 2010 Lexmark has continued to be number one in the U.S. printer market in laser product awards received. Also according to IDC data for the first quarter of 2010 we’ve continued to gain branded market share in our focused segment of A4 workgroup lasers with the gain of about 240 basis points year-to-year to a share of about 13.5%. Let’s talk about our Imaging Solutions Division or ISD. In ISD, we continue to make progress in the transition of our inkjet focused business customers. In the second quarter, ISD revenue was $275 million, down only 2% year-to-year which is an improvement in year-to-year revenue performance from the first quarter of 2010. ISD operating income, excluding restructuring was $34 million up 7% year-to-year. ISD units for the quarter were down 7% year-to-year. During the quarter, we continued to improve our mix of high end inkjet devices resulting in an ISD hardware revenue decline of only 3% year-to-year. We also continued to have strong year-to-year in inkjet sellout revenue in U.S. office superstores help our product line improvements over the past year. According to our internal analysis for the first half of 2010, Lexmark was number one in U.S. printer market and inkjet product awards received. Also according to NPD data for the first half of 2010 Lexmark has continued to gain inkjet
Also according to MPD data for the first half of 2010, Lexmark has continued to gain inkjet market share in U.S. office super stores, almost doubling our share of OSS inkjet units in the above $100 segment to about 11% making us number two in this important OSS segment.On June 7, we completed the acquisition of Perceptive Software, a privately held company and a leading provider of Enterprise Content Management or ECM software. Perceptive Software enables a broad range of industry-specific and across industry workflow solutions including solutions in higher education, healthcare and government segments. A key strength and differentiator of their software is its fast, easy and low cost configuration and the integration with number of ERP, CRM and other line-of-business applications. Read the rest of this transcript for free on seekingalpha.com