July 26, 2018
The OEM plans to repurchase up to $500 million (€ 427 million) of shares in 2018, reports on Q2 2018 results and establishes business priorities.
Xerox’s Vice Chairman and CEO John Visentin today outlined his business imperatives to transform the company with an emphasis on commercialising innovation, optimising operations to better serve customers and partners, and a heightened commitment to shareholder returns.
Visentin summarised his direction as part of the company’s second-quarter results. “It’s clear after two months as CEO of this iconic brand that we can return Xerox to the forefront as a leading tech company,” said Visentin. “We currently have software, services and printing technologies, along with a pipeline of innovations, which can disrupt the marketplace and bring increased value to those we serve.”
“Our second-quarter results demonstrate the benefit of having a business model underpinned by annuity cash flow. However, it also highlights the challenge of improving revenue and flowing cost savings to the bottom line,” he noted. “Our success will depend on operating with a relentless focus on optimisation. Actions include improving the effectiveness and efficiency of our supply chain and go-to-market channels. Equally important is ensuring we provide a great experience for our customers and address their evolving business needs.”
Demonstrating its commitment to enhancing shareholder returns, the Xerox board of directors authorised a $1 billion (€ 0.85 billion) share repurchase program and the company will opportunistically repurchase up to $500 million (€ 427 million) in 2018.
“This positive step forward is a strong endorsement of the company and represents an immediate action to deliver value to our investors,” said Visentin.
The company confirmed that it is not conducting an auction process. Visentin stated, “While there has been much speculation about Xerox, I want to be clear. My mission is to do what is right for Xerox. Our focus is on leveraging the assets and capabilities we have today to create a sustainable company that provides a compelling value proposition for customers and partners.”
Total Revenue declared for Q2 2018 were $2,510 million (€ 2,143 million), down 2.2 percent year-on-year. Equipment sale revenue was posted as $561 million (€ 479 million), up 0.9 percent year-on-year.
The company’s management team plans to update investors on its strategy and longer-term financial expectations at an analyst day later this year or early 2019.
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