Encad, Inc. - ENCD- Profile

ENCAD, Inc. designs, develops, manufactures and markets low-cost, wide-format, color inkjet printers/plotters which increase the quality of printed output. The NovaJet Pro 50 and CADJET 2 colour printers which were recently introduced has improved their operating characteristics. The company also sells inkjet cartidges and high quality print media. The company has entered into strategic partnership with Lexmark International, Inc., Xerox ColorgrafX Systems Inc., Xerox Engineering Systems and IBM to provide quick-response and onsite customer service. The company operates in two segments: The digital imaging solutions business unit, which includes graphic arts, CAD, GIS and the other segment is The textile business unit. But because of similarity of production processing, distribution methods, customers and products, company is aggregating these two segments into one for financial reporting purpose. In 1999 one customer, Tekgraf, Inc., accounted for 13% of net sales. The export sales is accounted for 65% of 1999 revenues. Printers and accessories accounted for 63% of 1999 revenues; ink and media, 32% and service, royalties and contracts, 5%.