2Q 2011 Y-O-Y Change Revenue $176 million 13% EBIT $ 27 million 56% ------- ------------ ------------ International Mailing revenue grew on a reported basis and was slightly positive excluding the benefit from currency. There was positive growth in equipment sales during the quarter, driven largely by increasing equipment sales in France and also sales of Connect+ in the UK. As in the U.S., stream revenue declined at a moderating rate. Financing revenue was flat with the prior year, reflecting an improvement in equipment sales growth and a higher percentage of equipment being leased. Rental and supplies revenue declined only slightly.
EBIT margin improved by 420 basis points versus the prior year in part as productivity initiatives are driving positive leverage from revenue growth.
Enterprise Business Solutions
2Q 2011 Y-O-Y Change Revenue $645 million 4% EBIT $ 55 million 12% ------- ------------ ------------
Within the Enterprise Business Solutions Group:
2Q 2011 Y-O-Y Change Revenue $134 million 10% EBIT $ 9 million 2% ------- ------------ ------------ Production Mail revenue grew 10 percent including a 5 percent benefit from currency. Revenue growth was driven by strong sales of the company's high-speed, high-integrity inserting systems in North America and Asia. The company also had a good quarter of written business in Europe and Asia for both inserting and high-speed Intellijet(TM) color printing systems, while the U.S. experienced lower relative written business. EBIT margin for the quarter increased substantially for the Production Mail business when compared with the prior year, however, this improvement was offset by start-up costs related to Volly.
2Q 2011 Y-O-Y Change Revenue $ 100 million 19% EBIT $ 10 million 67% ------- ------------- ------------ During the quarter, Software revenue grew 19 percent, including a 7 percent benefit from currency. Revenue growth was driven primarily by strong demand worldwide for the company's customer communication and data management software solutions, especially in the financial services sector. The company had particularly good growth in high margin licensing revenue and continued to write multi-year licensing arrangements for some of its larger deals. These multi-year arrangements will increase the proportion of recurring revenue in future periods.
EBIT increased 67 percent year-over-year and EBIT margin improved by 280 basis points driven by margin leverage on revenue expansion and the mix of software sales.
2Q 2011 Y-O-Y Change Revenue $240 million (3%) EBIT $ 20 million (10%) ------- ------------ ------------ Management Services revenue declined 3 percent compared to the prior year, including a 3 percent benefit from currency. The expected decline was a result of account contractions and terminations in the U.S. last year. However, net new written business improved significantly both in the U.S. and Europe during the quarter. This should benefit revenue in coming quarters. EBIT margin in the U.S. again improved as the company continues to move towards a more variable cost structure for its labor. However, the EBIT margin in Europe declined due to lower volume-driven revenue and investments to position the business for growth in customer communications management.