PTNX » Topics » Competitive and Market Factors

This excerpt taken from the PTNX 10-K filed Jun 6, 2007.
Competitive and Market Factors
 
Printronix products compete in the overall market for medium- and high-speed computer printers, bar code label printers, and RFID printer/encoders. The overall market includes line matrix, thermal transfer, RFID printer/encoders, printer applicators, laser, inkjet, serial, and band printers. Printronix competes directly with several companies of varying sizes, including some of the largest businesses in the United States and Japan. Our primary competitors include: Datamax (a unit of Dover Corporation); Godex; Intermec; Paxar; Ricoh/Hitachi; Sato; Taiwan Semiconductor; TallyGenicom; Toshiba TEC Corporation; and Zebra Technologies Corporation.
 
Printronix is differentiated from its competitors in several key areas that include mission critical printing solutions, integration into enterprise networks and efficient printer management. The line matrix, thermal and fanfold laser printing technologies are unified by a common control architecture named Printronix System Architecture (“PSA”tm). In addition, the company has provided post-sales support in the form of supplies, spares,


9


Table of Contents

repairs and onsite maintenance services as well as professional services. PrintNet® Enterprise (“PrintNet”) is a Web-enabled remote printer-management tool that combines printer diagnostics, troubleshooting, an alert system and visibility to allow remote management control of Printronix printers anywhere in the world from a networked desktop. The printing solutions also offer direct connectivity to the enterprise software (i.e. SAP®, Oracle®), thus eliminating costly middleware. In addition, a unique Online Data Validation (“ODV”tm) feature provides a differentiated solution in thermal printing for compliance labeling by monitoring bar code labels as they print to ensure scanability. This capability, together with the ODV Data Manager for network management, provides the architecture for RFID printing that requires 100 percent readability. Printronix also designs, manufactures and markets hand-held and online bar code verifiers that incorporate traditional and American National Standards Institute (“ANSI”) verification.
 
We believe Printronix printers are highly competitive with regard to features, reliability, durability, price/performance, post-sales support and cost of ownership. The wide range of professional services enables our printing solutions to deliver their full potential in the customer’s enterprise system. Although Printronix continues to make significant investments in research and development, we can offer no assurance that products with similar or superior technology or price/performance will not be introduced by competitors. If introduced, those products could have a material adverse impact on the consolidated results of operations and financial position. Knowledge of a pending new product in the marketplace by us or by our competitors may have an adverse impact on revenue as customers may delay purchasing decisions until the new product is available.
 
Printronix’s strategy for the mature line matrix market consists of four key elements. First, increase turnover within the existing installed base. This is driven by the creation of the attractive P7000 product which has lower cost of maintenance and added performance features. Second, derive more revenue per printer footprint, primarily through increased consumable sales and an increased focus on securing service contracts. Third, increase market share through geographic expansion into growing markets such as India and China. Finally, extend the product line with complementary products, such as the P7000HD which opens doors to Windows printing opportunities or new paper handling options that increase usability and the value of each sale.
 
Our strategy in the RFID UHF printer/encoder market segment is to continue to grow with the market and maintain our leadership position in this space, a small but emerging growth area, by providing innovative products that meet worldwide RFID initiatives including Wal «Mart and DOD RFID requirements. Printronix will also continue to pursue channel expansion strategies to increase share in the market place.
 
The industrial fanfold laser market is a special niche market with few vendors. We believe we continue to have a significant market share in this segment.
 
Verification products offer a unique feature mix of fixed-position verification scanning, online verification, hand-held verifiers, communication and controls. There is little direct competition at this time for online verifier products.
 
Printronix is differentiated by the breadth of its product offerings, superior connectivity, a broader range of printer emulations, and a higher level of integrated solutions over and above the development of printers. We believe that our global presence, three application-compatible technologies, advanced network-printer management capabilities, unique ODV capability and RFID printing solution leadership provide a competitive advantage.
 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki