Xerox Reports First-Quarter Results

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This iconic Xerox sign that signifies their presence in Rochester NY is probably not long for this world.

Xerox reported results for its first quarter, reporting net revenue of $2,435 million, down 0.8 percent year-over-year. Operating profit, excluding equity income, grew 5 percent year-over-year.

Earnings Per Share (EPS) was 8 cents, down 8 cents compared to the same period in 2017, primarily due to lower equity income (including the Xerox share of a Fuji Xerox restructuring charge).

Equipment sale revenue was $499 million, down 2.7 percent. Post sale revenue was $1,936 million. Post sale revenue was 80 percent of total revenue.

Fuji Xerox Charge

Xerox owns a non-controlling 2-percent equity interest in Fuji Xerox, the company’s joint venture with Fujifilm. During the first quarter, Xerox’s income was a loss of $68 million, down $108 million from the prior year. This included a $28 million charge associated with its share of a Fuji Xerox charge related to the correction of adjustments and misstatements identified in audits of Fuji Xerox’s fiscal year-end financial statements for the years ended March 31, 2016 and 2017. (See “Massive Salaries, Made-Up Sales, Detailed at Fuji Xerox Australia and New Zealand” for more on the Fuji Xerox accounting scandal.)

Forecast

Because of Xerox’s announcement this week that its CEO and six Xerox board members will be stepping down under its pending Director Appointment, Nomination and Settlement Agreement with Carl Icahn and Darwin Deason, Xerox is not releasing a financial forecast. It will also not be hosting a live conference call.

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