This Week in Imaging: Konica Minolta, Ricoh IT Services May Be Silver Lining
This week we reported on Ricoh Company’s latest financial results – the period consisting of the last nine months of Ricoh’s fiscal year, with these last nine months ending on December 31, 2019, and its fiscal year ending on March 31, 2020.
As with most vendors lately, there were pockets of both good and bad news. The bad news: sales generated by the Office Printing group (printers and MFPs, and related solutions and supplies) declined by 6.0 percent year-over-year to ¥760.9 billion, and operating profit decreased by 12.5 percent to ¥78.9 billion.
However, there was some good news in other segment: sales generated by Ricoh’s Office Services group (primarily IT Services, white boards, collaboration tools, etc.) increased by 17.1 percent year-over-year to ¥408.6 billion, and operating profit increased by 101.percent year-over-year to ¥18.9 billion.
Meanwhile, Konica Minolta – which has made a number of IT service providers, most notably All Covered – also continues to pursue the IT Services market, and has made significant gains, particularly in Europe, where it has about 32,000 IT customers. As for its latest nine-month period, Konica Minolta reported lower revenue and earnings, but its IT Services group seems to have suffered the least. Its IT Services results are included within its Office Business group, which reported lower year-over-year revenues and operating profit. However, although the company didn’t report any numbers, it stated that although office hardware sales declined (partly due to at least to a roll-out of new models), IT Services sales only “plateaued temporarily” (due, it stated, to “optimization” of services).
Meanwhile, Xerox recently announced that it’s also expanding its Xerox IT Services – but how well it will fare remains to be seen.
This Week in Imaging: