JJ Bender: Hot Fresh Copy

Oce VarioPrint series

Oce has thrown it's hat in the black and white digital copier ring, looking to high volume users to drive new growth in their business with a new family of multifunctional black and white systems known as the Oce VarioPrint.

The VarioPrint 1055/1065/1075 run at 55, 62, and 72 pages per minute while the Oce VarioPrint 2062 and 2075 run at 62 and 72 pages per minute respectively.

There's also a host of production and finishing options as Oce looks to compete with the Kodak Nexpress 9110, IBM InfoPrint 2000, and Digimaster 9150 .

The Oce SMART mailbox allows PDF printing from a USB memory card and the OCE INtuiGraph user interface features a wizard button to guide you through the document set up process. An Oce Genie or Genie Pro controller is available for scanning and a scan to e-mail function is available.

The only question now is how successful the new product line, the Oce VarioPrint series will be. If you're looking for high volume copiers, please consider JJ Bender.

HP Posts Strong 1st Quarter in 2006 thanks to the Indigo Press

Hewlett Packard announced it's first quarter 2006 numbers last week, and if you didn't think the HP Indigo Press 5000 was a big deal in the digital press market- think again.

A good quarter, which featured $22.5 billion in net revenue was driven in large part by the $6.5 billion from the imaging and printing group. While this includes consumer hardware, it also includes commercial hardware, digital presses like the HP 1050, and HP Indigo 3050.

HP cited an 8 percent year-over-year growth that was driven in large part by a whopping 36 percent jump in color laser printers.  HP is striving to turn the offset printing market into a completely digital workplace and it's working.

The Indigo line is a competitor for the Xerox iGen3 and Konica Minolta CPP500.  If you're looking for digital presses or need production equipment, please consider JJ Bender.

Purchasing a Copier at Auction

If you're considering purchasing a copier at auction, whether it's a DocuColor 12 or Xerox iGen3, you still need to do your homework to make sure you end up with the right machine at the right price.

Be Informed

Get as much information about the machine. Find out the meter count, or number of copies made on a copier (also known as a click count). Find out if it has any peripherals. Ask when it went off service or if it still is under a service contract.

Location, Location, Location

If you're nearby and there is a prescribed time, look at the machine before purchase. If it's a large purchase you can also set up a proxy or send over a local technician to inspect the copier. If you're too far away, find out the details of where the machine is being stored and what you'll need to do to ship the copier to your location.

Shipping

Find out what the shipping will cost prior to bidding. Many auction houses require you to use an approved method of shipping or move the copier within a prescribed amount of time (usually immediately or seven days from the close of the auction). A Xerox 2060 isn't light by any means and also has to be packed carefully and by someone who knows what they're doing in order for it to survive a cross-country trip.

Payment Terms

The payment terms should be clearly spelled out in every auction. Some auction houses require a refundable deposit to quality bidders while most require payment in full upon completion of the auction. So, make sure you have adequate funds to purchase a copier at auction.

If you're looking for a digital copier or considering a copier auction, please consider talking to JJ Bender.

Variable Information Printing and the Xerox iGen3

All direct mailing houses depend on finding innovative ways to improve the response rate. Every corporation needs to create a unique marketing piece in order to motivate customers to action.

In this weeks On Demand Journal, Tom Wetjen has a great article that discusses the ways in which variable information printing can change your response rates and profits margins whether you're running a Xerox 6060 or Xerox iGen3.

Wetjen discusses a printer who experimented with flipbooks on a Xerox DocuColor 8000, and had an eye popping 50 percent response rate. The key to getting in front of customers and staying in front of them is through unique and lasting marketing pieces.

If you want more information on variable data printing or digital production presses, please consider JJ Bender.

Quebecor World Announces Q4: Net loss of $205 million

Quebecor World Inc. announces that for the fourth quarter 2005 the Company reported a net loss of $205 million from continuing operations compared to net income of $46 million in the fourth quarter of last year. On the same basis, loss per share in the fourth quarter was $1.64 compared to diluted earnings per share of $0.27 in 2004. Quebecor World's fourth quarter and 2005 results were negatively impacted by a previously announced non-cash goodwill impairment charge of $243 million, ($232 million after tax, or $1.77 per share), related to the Company's European operations. Consolidated revenues for the quarter were $1.7 billion compared to $1.8 billion last year.

In the fourth quarter 2005, the Company recorded impairment of assets, restructuring and other charges (IAROC) of $12 million or $0.08 per share compared to $48 million or $0.32 per share in the fourth quarter last year. Operating income before IAROC and goodwill impairment in the fourth quarter was $87 million compared to $161 million during the same period last year.

Earnings per share from continuing operations before IAROC and goodwill impairment were $0.21 compared to $0.59 in the fourth quarter of 2004.

Quebecor World's fourth quarter results were hampered by a lower pricing environment compared to last year, higher energy costs, under performing operations in France and the United Kingdom, the absence of an additional week in the quarter compared to 2004 which negatively impacted revenues in North America by approximately 7%, additional freight costs and inefficiencies related to press start-ups.

"We continue to face a very challenging environment on several fronts which is reflected in our results. Our retooling plan is underway and despite some inefficiencies in the fourth quarter, we expect this equipment to deliver as promised in the medium and long-term as it reaches full-capacity and as we replace previously lost volume," said Pierre Karl Peladeau, President and CEO, Quebecor World Inc. "In the short-term we are taking additional measures to reduce our costs by being more efficient in our energy consumption and through additional restructuring initiatives. The Company is also utilizing its distinct competitive advantages to focus on securing higher margin volume from leading publishers and retailers."

Quebecor World's three-year retooling plan is based on strategically installing state-of-the-art technology across its global platform and decommissioning older less productive equipment to enhance service, reduce costs and improve efficiencies. The previously announced plan calls for an investment of $330 million in North America and $250 million in Europe. The Company's retooling program on two continents is one of the largest ever undertaken in the printing industry and the full effect of these efforts will be realized over time.

Due to the retooling program in North America and Europe, Quebecor World recorded capital expenditures of $394 million in 2005 compared to $133 million in 2004 and generated free cash flow of $119 million in 2005 compared to $319 million in 2004.

As announced in January 2006, the European retooling program includes installing two new gravure presses in Belgium and wide-web offset presses in Austria and Spain as well as additional potential investments in the United Kingdom and France. In February 2006, the Company successfully concluded negotiations with its employees' representatives in the United Kingdom that will quickly bring the cost structure in line with the market. Similar negotiations are progressing more slowly in France. This could be a lengthy process which might negatively impact our performance.

Full-Year 2005

In 2005, net loss was $149 million or $1.43 per share compared to net income of $140 million or $0.77 per share last year. Before IAROC and goodwill impairment, diluted earnings per share in 2005 were $0.98 compared to $1.45 last year. Operating income before IAROC and goodwill impairment was $358 million in 2005 compared to $471 million last year. Consolidated revenue for 2005 were essentially flat at $6.3 billion compared to 2004.

Impairment of assets, restructuring and other charges for 2005 were $94 million compared to $116 million in 2004. Selling General and Administrative expenses were $397 million compared to $432 million last year. Excluding the unfavourable impact of currency translation, SG&A expenses were lower by $42 million compared to the previous year.

Outlook 2006

In 2006, Quebecor World anticipates its operations will continue to be affected by negative pricing pressures and previously announced volume reductions. While the Company has made significant progress in replacing this volume, many of these new agreements only come into force in the later half of 2006 and in 2007. The Company intends to address these challenges by continuing to implement cost containment measures. These measures include retooling plans for North America and Europe, additional restructuring initiatives and decommissioning of older presses resulting in a more efficient manufacturing platform. The Company will also develop projects to help reduce energy consumption. Furthermore, Quebecor World will use its distinct competitive advantages to seek higher margin business. However, as this is a long-term process and as the Company anticipates additional start-up related inefficiencies in upcoming quarters, the full effect of these efforts will be realized over time.

Discontinued Operations

Quebecor World's core printing activities involve the printing of magazines, catalogs, retail inserts, books, directories and direct mail for the world's largest publishers and retailers. As the Company has grown by acquisition certain facilities were included in those transactions that did not relate to these core businesses. Approximately a dozen facilities in North America were involved in the printing of short-run contractual work such as marketing materials, annual reports, travel and fashion brochures. These activities were different from Quebecor World's core businesses and did not benefit from the advantages and synergies of the Company's global platform. The Company completed the sale of these assets in the fourth quarter 2005. Consequently the operating results related to these activities have been presented separately in the Company's consolidated financial results as discontinued operations and comparative figures have been restated to conform to the presentation adopted for the year-ended December 31, 2005.

Dividend

The Board of Directors declared a dividend of $0.10 per share on Multiple Voting Shares and Subordinate Voting Shares. The Board also declared a dividend of CDN$0.3845 per share on Series 3 Preferred Shares, CDN$0.421875 per share on Series 4 Preferred Shares and CDN$0.43125 on Series 5 Preferred Shares.

The dividends are payable on March 1st, 2006 to shareholders of record at the close of business February 27, 2006.

Copier Lease Calculator

If you're looking for a ballpark estimate of what your copier lease might cost, a great place to start is a lease calculator.

The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.

You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs. 

If you're considering a copier lease, please consider JJ Bender.

The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.

You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs. 

If you're considering a copier lease, please consider JJ Bender.

Canon begins to consolidate digital market

Canon continues to make a play for consolidation in the U.S. market, looking to bolster its nationwide network of digital copier sales teams. Last week Canon U.S.A., Inc. announced that it would acquire Uinta Business Systms Inc. retaining President Joe Weis. (The full press release is here courtesy of Output Links)

Canon is in the midst of  a dramatic reorganization that is designed to push sales and increase the aftermarket value for its digital color and black-and-white business. The imageRUNNER series continues to be successful for Canon with the latest model, the Canon IR 150, establishing a niche in the marketplace.

If you're looking for a Canon digital copier, please consider talking to us at JJ Bender.

Copier Paper Trends

You don't often think about the copier paper that you run through your Xerox iGen3 or Nexpress 9110. As long as the weight is correct and the ink doesn't run, a commercial printer will often just opt for the cheapiest or most reliable source source of paper.

A recent white paper released by InfoTrends and announced at What They Think discusses the impact of paper merchants on the paper distribution chain. The ultimate conclusion is that paper purchases are still based on relationships. Quick printers and other buyers still look to paper merchants and brokers for information on new products and innovations.

If you're looking into a digital copier to use with all that copier paper, please consider JJ Bender.

JJ Bender Helps Customers Navigate the Redefined Digital Color After Market

Contact: Jonathan Bender, 203.336.4034

Fairfield, CT-February 8, 2005

With the rapid changes in the digital color market in both the price and capabilities of equipment, JJ Bender has decided to institute a short-term rental program.

“The rapid turnover of equipment and technology is astounding. With our short-term rental approach, you can figure out what you need, make the right decision, and not be penalized for it,” said Jeffrey Bender, President of JJ Bender.

With the short-term rental program, companies can match their costs to their expected revenue. Moreover, a three or six-month copier rental is designed with seasonal businesses in mind, allowing them to continually offer the latest technology and products to their customer base. 

As the production cycle for new digital equipment has been shortened, the resale market for previously owned machines has drastically changed. The profits at major manufacturers is being driven by digital color equipment encouraging a faster replacement cycle. Consider Konica Minolta, which recently announced that it would stop producing cameras and film in March of 2007 to focus on digital copiers, medical equipment, and liquid crystal displays.

The challenge for the average printer is how to make an investment of potentially hundreds of thousands of dollars profitable while staying ahead of the technology curve. For many the cost of acquisition can be a barrier to entry into producing higher margin, larger print runs.

Therefore the need for flexibility at commercial printers and quick printers has never been greater. Companies are getting locked into technology that is becoming outdated before a lease term expires at the same time that the residual value of equipment is decreasing with newer models becoming widely available.

“We know that companies who are looking at digital equipment are also examining how they will pay for that equipment. We’re here to help them discover the actual value of gear and make sure they can establish a profitable business model,” said Bender.

JJ Bender

JJ Bender specializes in Xerox DocuTech Systems and other High Volume Copiers and Laser Printers including the Xerox DocuTech 135, 6100, 6135, 6115, 6155, 6180, DocuPrint DP 180, 4135, 4635 and 92C, DocuColor 6060, 2060, 2045, 12, iGen 3, and other high volume copiers including the Heidelberg Digimaster 9110 and Canon Image Runner 110. With over 25 years of experience in the office automation equipment industry, JJ Bender is a market leader in developing creative ways to complete transactions. For more information visit www.jjbender.com or contact JJ Bender via email at mail@jjbender.com or at 203.336.4034.