Pitney Bowes Reports Slightly Lower 2010 Revenue but Remains Positive on Future
Commenting on the quarter and the year, Chairman, President and CEO Murray D. Martin noted, “Our quarterly and full year’s results reflect progress against several key milestones toward growth. Equipment sales improved for the second consecutive quarter on a consolidated basis and in our global mailing operations. Growth was enhanced by placement of new products, in particular, our Connect+ web-based communications system. We again had solid growth in software revenue even as we build more recurring streams through multi-year licensing agreements. Importantly, as we anticipated, relative comparisons in our recurring revenue streams of supplies, rentals and financing are improving. We continue to execute on our Strategic Transformation program and we reaped even greater benefits than expected. In addition to the cost savings, we have enhanced the way we interact with our customers and streamlined our processes to develop new products more quickly and efficiently. The program is reducing our fixed cost structure so we will be more profitable and flexible as we grow the business.”
Strategic Transformation allows the company to continue investing in new capabilities and solutions, which are generating value for Pitney Bowe's customers and shareholders, even in the current global business climate.
“As a result of the actions that we took during the year, we exited the year in an excellent position to leverage profitable growth in 2011 and beyond. Therefore, for the 29th consecutive year our board of directors approved an increase in our quarterly dividend. The dividend for the first quarter 2011 will be $0.37 per common share. At the same time, the Board approved an increase of $100 million in the company’s share repurchase authorization from $50 million to a total of $150 million.
“As we enter 2011, we are introducing game-changing innovations that will support our growth well into the future. We are enabling businesses to bridge the physical and digital channels to enhance communications with their customers. In January we introduced Volly, which is our new secure digital mail delivery system. Volly is a cloud-based platform that empowers consumers to receive, view, organize and manage bills, statements, direct marketing catalogs, coupons and other content from multiple providers using a single application.”