Xerox Reports First-Quarter Results
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.)
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.
- May 2018: In Stunning Reversal, Xerox Yields to Deason and Icahn in Far-Reaching Settlement
- April 2018: Xerox Revenue Down, Cites Charge for Fuji Xerox New Zealand Operations
- April 2018: Other Copier Company Said to Have Been Considering Merger with Xerox
- April 2018: Xerox Continuing to Add New Dealers
- January 2018: Xerox Reports Strong Fourth-Quarter 2017 Results, 65 Dealers Signed
- October 2017: Xerox Revenue Down for Third Quarter, but Earnings per Share Up
- August 2017: Revenues Slow in Xerox’s Second Quarter, but Net Income Up
- April 2017: Xerox Revenue Down, Cites Charge for Fuji Xerox New Zealand Operations
- Fuji Xerox New Zealand’s Parent Company Estimates $285m Losses Caused by Accounting Irregularities
- March 2017: Xerox Reveals its Biggest Product Blitz Ever with New VersaLink, AltaLink ‘Workplace Assistants’
- February 2017: Xerox to Spend $100 Million Acquiring Independent Copier Dealers, Converting them to the Xerox-Only Brand
- January 2017: Revenues Slide for Xerox’s Fourth Quarter, Full Year