Lexmark International has posted a 12 per cent jump in quarterly profit, fueled by strong sales of laser printers and replacement toner.
The company said hardware revenue growth for inkjet printers rose despite an overall weak consumer market. Business demand strengthened for low-end laser devices, while high-end laser demand softened.
Shares of Lexmark rose 0.3 per cent in early trading.
Lexmark said fourth-quarter net income rose to $155.0 million, or $1.18 per share, from $138.8 million, or $1.05 a share, a year earlier.
Revenue rose 13 percent to $1.54 billion, from $1.37 billion last year. Laser and inkjet printer revenue increased 16 percent, and supplies - ink and toner, which are far more profitable than printers - rose 13 percent.
Lexmark said gross profit margin rose to 32 percent for the quarter versus 31.9 percent a year ago.
Chief Executive Paul Curlander said the company does "expect to have a good first quarter" but reiterated Lexmark's plan to sacrifice near-term profit to boost advertising and research spending this year.
Analyst Shannon Cross of Cross Research said while the fourth-quarter results were solid, that extra future spending will likely dampen earnings as Lexmark tries to fend off competition from Asian manufacturers such as Canon.
"In the past they have run the company lean and mean but now they need to come out with with better products in order to be competitive," she said.