Xerox Corp. said it saw revenue fall and profit plunge in the
latest quarter, as currency fluctuations and the company's
document-technology business dragged on results.
The Norwalk, Conn.-based company, synonymous with paper copiers
and printers, has been transforming its business as sales of
signature products fall in an increasingly digital workplace.
But expanding into information-technology services, cloud
computing, document management and bill processing has come at a
cost, with the company posting a recent run of quarters with
dipping revenue. The company has also battled the same currency
headwinds that have whipped through U.S. companies' income
statements lately.
For the quarter, Xerox posted a profit of $12 million, or a
penny a share, compared with $266 million, or 22 cents, during the
same period last year. Excluding items such as a $145 million
software impairment charge, adjusted earnings were 22 cents.
Revenue tumbled 7.1% to $4.59 billion from $4.94 billion a year
ago. Revenue was down 3% when adjusted for currency volatility. The
portion of revenue linked to the company's services business, which
accounts for a little more than half of total revenue, was $2.6
billion, down 3% from a year ago. The document technology segment
collected $1.9 billion in revenue, down 12%.
Xerox met its per-share earnings expectations, which were
between an adjusted 21 cents and 23 cents. Revenue was just under
the view of analysts polled by Thomson Reuters, who called for
$4.64 billion.
For the current quarter, Xerox forecast earnings on an adjusted
per-share basis between 22 cents and 24 cents. For the full year,
Xerox expects adjusted earnings at the lower end of its range of 95
cents to $1.01.
The company repurchased $395 million in shares during the
quarter ended in June and said Friday it is boosting its full-year
buyback cap to $1.3 billion.
Earlier this month, Xerox said it would refocus its government
health care business following a review that resulted in a $145
million software impairment charge in the recently-ended
quarter.
Xerox said it would take on fewer Medicaid management jobs and
discontinue its integrated eligibility system, which offered
services like call centers and document imaging for the health-care
industry.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
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