Document Imaging Report Business Trends on Converting Paper Processes to Electronic Format. September 25, 2015 Issue.
Ralph Gammon has served as editor of the Document Imaging Report since 1998. In 2002, he purchased the publication and helped launch the publishing company RMG Enterprises.
RMG Enterprises, Inc. is a global marketing, consulting, and publishing company. RMG offers a wide array of services to both profit and not-for-profit organizations. RMG’s principals have many years of experience working with companies and individuals in our extensive network of experts. Using our collective knowledge, RMG can provide assistance in virtually all areas of operating, marketing, and growing businesses.
RMG focuses on three specific industries. The identification and data capture industry and the document imaging industry.
Ralph also works as a freelance consultant and editor for industry vendors and serves as a conference speaker.
He has been a contributing editor for trade publications such as Business Solutions, Integrated Solutions and Transform magazines.
Ralph is a former newspaper reporter who holds a Bachelor of Arts in professional writing from Gannon University in Erie. Reach Ralph at +1.814.866.2247,
<p>September 25, 2015
4003 Wood Street ● Erie, PA 16509 ● PH (814) 866-2247 ● http://www.documentimagingreport.com
Document Imaging Report
Business Trends on Converting Paper Processes to Electronic Format
How Lexmark ES will Reach 25%
In DIR, we’ve made a pretty big deal about Lexmark
CEO Paul Rooke’s stated goal to investors of reaching
25% operating margins in Lexmark’s Enterprise Software
(ES) business by the end of 2016. I can’t recall when this
goal was first made public, but it was sometime prior to
Lexmark’s acquisition of Kofax. At the time, what was
then known as Perceptive Software, was operating at
close to break even.
When Lexmark’s intent to acquire Kofax was
announced in March [see DIR 3/27/15], Rooke reiterated
his margin goals for what was soon to be renamed
Lexmark ES and offered some detail on how Lexmark
would reach these margins. Rooke showed a slide,
which listed the combined Kofax and Perceptive
operating margin as approximately 10% for the second
half of calendar 2014. Rooke projected that the
difference of 15% would be made up through a
combination of “revenue growth and scale
improvement” and “Kofax + ReadSoft combined
Here is an image of the slide:
The big question to me was how Lexmark planned to
generate the “revenue growth” piece of this equation.
After all, for 2014, Perceptive had actually reported
slightly negative organic growth, while through its first
THIS JUST IN!
DIR MANAGING EDITOR PASSES
It is with a bit of a heavy heart that we are
publishing this edition of the Document Imaging
Report. Rick Morgan, my long-time business
partner in RMG Enterprises, our newsletter
publishing company, passed away last week. He
was 62 years old.
Rick is listed as DIR’s managing editor on the
masthead on page 2. Rick and I were friends
and colleagues for more than 20 years. When
we first met, I was a young reporter coming off
a newspaper sports writing gig and just breaking
into business journalism. Rick was on his second
go-round in the trade p