Financial
Highlights

A comparison of IKON equipment sales from 2001 to the present reveals a dramatic shift. Three years ago, color systems and black and white production machines accounted for roughly 24 percent of IKON equipment revenues; today that share has increased to 44 percent. This shift reflects IKON’s successful drive to target its product mix directly to areas of growth within the industry. While overall demand for equipment in the U.S. over the coming three years is expected to be flat, color and black and white production continue to provide growth opportunities for IKON.

IKON is focusing on gaining share in these growth segments, and has lined up a complete portfolio of best-in-class products to do so. This color portfolio includes color-capable black and white machines designed to offer occasional color in the office environment, and is perfectly positioned as a point of entry for businesses just making the transition from monochrome. The lineup continues with dedicated color machines, designed for mid-range speed and quality. Our black and white production portfolio includes the Canon imageRUNNER 110, 125, and 150 for the dedicated high volume production environment, as well as a robust range of light production models from both Canon and Ricoh ranging in speeds from 70 to 105 pages per minute.

Over the course of Fiscal 2004, IKON’s biggest product-related news was the introduction of several strong new color offerings: the Ricoh Aficio 2232C and 2238C black-and-white-to-color systems; the Canon CLC 4000 and 5100 production machines; and the IKON CPPTM 8050, a system combining production-level quality and speed with a highly attractive per-page cost. Co-branded with Konica Minolta, the IKON CPP 8050 has met strong success in the market; in fact, IKON is now Konica Minolta’s largest independent channel for sales of this technology.

A Color Solution for Every Need

IKON’s best-in-class product lineup means an attractive point of entry for every customer, from the small workgroup breaking new ground with occasional color, to the graphics firm requiring high speed and professional quality.


A Shifting Mix Meets
Shifting Demand

Over the past three years, color and high volume sales have grown markedly as a share of total revenues, as IKON has targeted its product mix directly at these areas of demand.

 


A Great Debut

The IKON CPP 8050, IKON’s first product co-branded with Konica Minolta, was named Editor’s Choice by Better Buys for Business and received an equally warm welcome in the marketplace. It has since been joined by the IKON CPPTM 8050e, which adds an embedded print controller from EFI to the power of the original IKON CPP 8050.



Introduction
Letter from
the Chairman
and CEO
Areas of Focus
Financial
Flexibility
An Efficient
Infrastructure
National
Accounts
Color and
High Volume
Enterprise
Services
Expanding in
Europe