Mixed Third-Quarter for Xerox; Printer/MFP Revenue Down Six Percent
Xerox reported today results for its third-quarter 2014, with earnings per share of 22 cents, and total revenue of $5.1 billion, down 2 percent. Revenue from the company’s Services business, which represented 57 percent of total revenue, was $2.9 billion, up 1 percent and flat year-over-year. Revenue from the company’s Document Technology business, which represented 40 percent of total revenue, was $2 billion, down 6 percent. Third-quarter profit fell 7 percent to $266 million from $286 million in the same period last year.
“This quarter we delivered earnings at the high-end of our range. Profits from our Document Technology business came in above expectations while Services results were lower than planned,” commented Ursula Burns, Xerox chairman and CEO. “Our Document Technology business continues to provide strong profitability, and we are continuing to invest in our Services business for revenue and profit improvement by strengthening leadership and evolving our operating model to better leverage our scale and drive efficiency and customer value. These activities will position us well for the future.”
Within Xerox’s Document Technology business, installation growth of A4 MFPs and printers, as well as sales of mid-range MFPs, was either down or flat. Sales of high-volume production-printing systems, however, were up 3 percent.
Third-quarter operating margin of 9.5 percent improved 0.1 points year-over-year, resulting in an operating profit of $486 million.
For its fourth-quarter 2014, Xerox expects 2014 earnings per share to be 26 to 28 cents per share. The company expects full-year 2014 earnings per share of 93 to 95 cents.