Revenue, Profit Slip at Xerox; Services Now Making up 54 Percent of Revenue
January 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.
“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.
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.
- January 25, 2015: XEROX TO MASS-PRODUCE THINFILM MEMORY LABELS AT WEBSTER, N.Y., FACILITY
- December 2014: XEROX TO SELL IT OUTSOURCING BUSINESS TO ATOS FOR $1.05 BILLION
- November 2014: XEROX’S IMPIKA FOCUSING ON PRODUCT-SALES EXPANSION IN ASIA
- October 2014: MIXED THIRD-QUARTER FOR XEROX; PRINTER/MFP REVENUE DOWN SIX PERCENT
- July 2014: XEROX’S EARNINGS DOWN FOR SECOND QUARTER DUE TO LOWER MFP AND PRINTER SALES
- June 2014: XEROX AIMS TO BUILD PRODUCTION INKJET PORTFOLIO COMPARABLE TO TONER PORTFOLIO
- May 2014: XEROX CEO BURNS: ‘SERVICES BUSINESS IS OUR ENGINE FOR REVENUE GROWTH’
- April 2014: REVENUE, EARNINGS DOWN AT XEROX, LOWERS FORECAST