Revenue Down at Xerox for Second Quarter, Restructuring Affects Net Income

xerox xFor its second quarter of 2015, Xerox announced earnings per share of 22 cents, and revenue of $4.6 billion, the latter of which was down 7 percent year-over year. Revenue from the company’s Services business was $2.6 billion, which was down 3 percent, with Services revenue making up 56 percent of total revenue. Document Technology revenue was down 12.1 percent.

Net income for the company fell to $12 million, or 1 cent per share, compared to $266 million, or 22 cents per share, compared to second-quarter 2014, with Xerox attributing much of the decline to restructuring costs. The company generated $349 million in cash flow from operations during the second quarter, ending the quarter with a cash balance of $1.6 billion. It repurchased $395 million in stock in the second quarter, bringing its total stock repurchases to $611 million in the first-half of 2015.

Within its office-imaging business, installations of color MFPs grew (up 9 percent), as did installations of mid-range color MFPs (up 4 percent), high-end production printers (up 4 percent), and high-end color production printers (up 16 percent).

“We delivered adjusted earnings in line with our guidance, met our Services and Document Technology margin expectations and delivered solid operating cash flow of $349 million in the quarter,” said Ursula Burns, Xerox chairman and chief executive officer. “We are intensely focused on improving our Services margin and are implementing restructuring actions and prioritizing investments to accelerate benefits from our new operating model.”

According to Rochester Home Page, Xerox will cut some 3,000 jobs worldwide.

Third-Quarter Forecast

Xerox expects third-quarter 2015 earnings of 17 to 19 cents per share For full-year 2015, Xerox expects earnings of 69 to 75 cents per share

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