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Xerox reports bleak Q3 results

October 24, 2012

Equipment sales revenue down 17 percent in downbeat conference call with OEM CEO.

Industry Analysts has reported on the Xerox Q3 2012 results, noting that “it was not one of their best earning periods to say the least”, as ten categories within the earnings release see significant losses.

Noting that CEO Ursula Burns “didn’t sound too up-beat on the call”, Industry Analysts highlights pertinent losses since by the OEM during the period:

  • Equipment (copiers/printers) Sales Revenue -17 percent
  • Q3 Profit -12 percent
  • Equipment Financial Interest -13 percent
  • Research and Development -12 percent
  • Supplies Sales -8 percent
  • Mid-range Colour Installs -7 percent
  • Mid-range B&W Installs -14 percent
  • High-end B/W Installs -31 percent
  • Digital pages -3 percent
  • Colour Revenue -6 percent

Xerox CEO Burns states that “[Xerox’s] third-quarter performance aligns with shifts in our business as services become a larger proportion of our revenue, and reflects the dynamics of a challenging economy that is creating cost pressures for large enterprises and governments”.

Burns goes on to state that constraints in government spending and a number of other elements have created short-term constraints on the company’s performance.

“The profitability of a few contracts has been hampered by constraints in government spending, delaying implementation on committed projects that required our upfront investments. We believe this is a short-term consequence of current macro and political conditions. But, we remain cautious, and we are focused on reducing costs to absorb the impact and improve margins while investing in key areas of growth and delivering strong cash flow.”

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