Revenue, Profit Slip at Xerox; Services Now Making up 54 Percent of Revenue

new xeroxJanuary 30, 2015 – Xerox today reported results for its fourth-quarter 2014 and full-year 2014. In the fourth quarter, total revenue of $5.0 billion was down 3 percent. Revenue from the company’s Services business, which represented 54 percent of total revenue, was $2.7 billion, up 1 percent. Xerox reported a profit of $156 million, or 13 cents a share, compared with a profit of $306 million, or 24 cents a share, for fourth-quarter 2013.

Xerox Chairman and CEO Ursula Burns

Xerox Chairman and CEO Ursula Burns

“We delivered strong profit and cash in the fourth quarter,” commented Xerox Chairman and CEO Ursula Burns. “Services revenue growth improved and margin expanded both sequentially and year-over-year. This is an indication that our plan is delivering positive results. Total contract signings increased 20 percent, driven by renewals. We continue to lead in Document Technology, where we are executing well and where we expanded profit year-over-year.”

Fourth-Quarter Document Technology Results

Within Xerox’s Document Technology business, which includes printers, MFPs, supplies, etc.:

  • Fourth-quarter revenue was $2.2 billion; down 8 percent year-over-year.
  • Fourth-quarter equipment revenue was down 12 percent year-over-year
  • Fourth-quarter document-technology revenue was made up of 19 percent entry-level units, 56-percent mid-range units, and 25-percent high-end units.

Forecast

For first-quarter 2015, Xerox expects earnings per share (EPS) of 16 to 18 cents. Its 2015 adjusted earnings per share guidance is $1.00 to $1.06, reflecting a 5-cent per share impact of recent shifts in currency rates, specifically the weakening of the Euro.

Xerox expects full-year earnings per share from continuing operations of $0.83 to $0.89.

Full-Year 2014 Results

Xerox is forecasting full-year EPS of 90 cents, and total revenue of $19.5 billion, with $10.6 billion of that derived from Services, and $8.4 billion derived from its Document Technology business.

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