Xerox Reports Earnings per Share of 19 Cents, Revenue Increase to $5.47 Billion

Xerox today released an upbeat earnings report for first-quarter 2011, reporting earnings per share of 19 cents, net income of $281 million, and $5.47 billion in revenue, up from a net loss of $42 million, or 4 cents per share first-quarter 2010.  Total revenue was boosted by revenue from Xerox’s Affiliated Computer Services, which provides business-process outsourcing and which Xerox acquired last year.

Signings for Xerox services totaled $3 billion in the first quarter. Revenue from the printer side of business was flat; however color imaging systems did well, with Xerox reporting a 27-percent increase in installation of mid-range color systems and 19 percent increase in high-end color systems. Xerox’s current hardware-system revenue mix consists of 24-percent entry-level units, 56-percent mid-range units, and 20-percent high-end units. The company also reported improvement in its annuity revenue, which was up 1 percent.

“Our results in the quarter reflect solid progress in scaling our services business while maintaining our leadership in document technology,” noted Xerox Chairman and CEO Ursula Burns. “Steady revenue growth and our continued sharp focus on operational improvements resulted in a 28 percent increase in adjusted earnings. It’s a good start to the year.”

First-Quarter Signings

 Business Process Outsourcing $1.25 billion
 Information Technology Outsourcing  $0.85 billion
 Document Outsourcing $0.9 billion 

First-Quarter Hardware Installations

Entry-Level Installations Installation Growth 
 A4 monochrome MFPs Up 3 percent
 A4 color MFPs  Down 9 percent
 Color Printers   Down 12 percent
 Mid-Range Installations
 Monochrome MFPs Up 6 percent
 Color MFPs Up 27 percent
 High-End Installations
 Monochrome  Down 13 percent
 Color  Up 19 percent


 Above: Xerox’s current revenue stream, which is nearly equally split between services and technology.

Burns also reassured investors and analysts that Fuji Xerox, a joint Xerox partnership and headquartered in Japan, is working to minimize any supply-chain problems caused by the earthquake and tsunami that struck Japan last month, “We are focused intently on minimizing any disruption in providing products and supplies to our customers. Due to increasing costs and uncertainties in supply-chain issues along with the pressure on Fuji Xerox’s business in Japan, we’re taking the prudent approach to provide a broader range than usual for our second-quarter earnings expectations (editor’s note: Xerox projects second-quarter earning of 23 to 26 cents per share). We remain committed to delivering on our full-year guidance.”

While several Fuji Xerox suppliers were affected by the earthquake, alternate measures are said to be in place, and Xerox doesn’t see any slow-down in consumables or supplies production occurring.

The company is projecting full-year 2011 earnings to be $1.05 to $1.10 per share.

Xerox’s complete financial report can be accessed here.

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