Revenue Down but Net Income up for Xerox’s Second Quarter
Xerox today announced results for its second quarter, reporting net revenue of $2.3 billion, down 8.8 percent year-over-year, while net income was $181 million, or 77 cents a share, versus $112 million, or 42 cents a share, for second-quarter 2018. Operating income was $290 million, up 5 percent year-over-year.
Xerox reported $313 million of operating cash flow, up $78 million year-over-year, and $297 million of free cash flow, up $94 million year-over-year.
Equipment revenue for the second quarter was $504 million, down 9.0 percent year-over-year, while post-sale revenue was $1,785 million, down 6.6 percent year-over-year.
Revenue generated by Xerox Services group was $853 million, down 4.1 percent year-over-year.
Year-over-year, revenue was down 6.5 percent in the Americas, 7.1 percent in EMEA (Europe, Middle-East, Africa), and 22.2 percent in Xerox’s Other region.
Second-quarter year-over-year installation rates were as follows:
- Entry-Level A4 Models: color installs down 12 percent; B/W installs up 1 percent.
- Mid-Range Models: color installs down 12 percent; B/W installs down 9 percent.
- High-End: color installs up 1 percent; B/W installs down 33 percent.
Project Own It Savings
Xerox stated that its Project Own It cost-cutting program contributed some $640 million of savings thus far in 2019. Savings were derived from cost-cutting involving: shared services centers; IT; supply chain; organizational design and benefits costs; procurement; delivery; and real estate.
Xerox reduced its revenue forecast by 6 percent, but is maintaining its full-year guidance for EPS, adjusted operating margin, and free cash flow. It’s forecasting EPS in the range of $2.90 to $3.05.
The company says it will continue to “increase revenue-generating investments” and continue its Project Own It campaign to “deliver large-scale transformation and sustainable growth.”
The company also reported that it had completed $300 million of share repurchases year-to-date, and expects at least $600 million in total for the year.
Visit Xerox here for a presentation of second-quarter 2019 results.
- July 2019: Xerox Receives Green Light for Holding-Company Reorganization
- June 2019: Xerox, HP Inc. Partner Together on PCs, Printers, DaaS Technology
- June 2019: Xerox Acquires Two Multi-Line Dealers
- May 2019: Xerox Reports First-Quarter Results
- May 2019: Fujifilm Posts Upbeat Financial Results; Will Pursue Xerox Take-Over in Court
- April 2019: Xerox Merging Some XBS Companies
- February 2019: Xerox to Close Almost Half of GIS Offices
- January 2019: Xerox Reports Latest Financial Results; Moving Accounts to Global Imaging (XBS)
- January 2019: Major Reorganization Underway at Xerox with Updates