April 25, 2023
The company published its financial results for the first quarter, recording increased revenue by 2.8% year-on-year.
Xerox said in its announcement that balanced execution drove growth in revenue and profits for the first quarter. Total revenue was $1.72 billion, up 2.8% year-on-year.
Equipment sales revenue of $391 million in the first quarter 2023 increased 24.5% compared to the prior year. Xerox said that growth was driven by better availability of product in both the Americas and EMEA, particularly for our higher margin A3 devices and production equipment.
Backlog declined for the third consecutive quarter as supply chain conditions further normalised, the company added. Post-sale revenue declined 2.2%. Xerox said this was driven by growth in consumables and contractual print and digital services, including the acquisition of Go Inspire, partially offset by lower sales of IT Hardware.
“Our team delivered another quarter of strong performance while remaining laser-focused on our three strategic priorities for 2023: client success, profitability, and shareholder returns,” said Steve Bandrowczak, Chief Executive Officer at Xerox.
“Despite a challenging macroeconomic climate, demand for our equipment and services remains resilient and is supported by service offerings that help our clients mitigate current macro headwinds like higher inflation, labour shortages, and tighter liquidity conditions. Further, the benefits of a more flexible cost base and ongoing operational efficiencies helped drive improvements in profitability in the first quarter.”
Xerox expects to deliver low-to-mid single digit gross operating cost efficiencies for the year, driven by continuous productivity improvement and specific cost reductions. Total Revenue is expected to be flat to down low-single-digits in constant currency in 2023.
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