February 1, 2018
The OEM has reported a strong fourth quarter (2017) with financial results that “reflect meaningful improvements”.
Xerox has announced its fourth-quarter 2017 financial results, which “reflect meaningful improvements in revenue, operating margin and earnings.”
“One year ago, I told the market that to position Xerox for long-term success and deliver shareholder value, we would focus on the growth areas in our industry to improve our revenue trajectory while continuing with our Strategic Transformation initiatives to increase our profitability and margins,” said Xerox CEO Jeff Jacobson. “With positive results across all metrics, our fourth-quarter performance clearly demonstrates the progress we have made and enabled us to deliver on our commitments for the full-year.”
Jacobson added, “Building on the positive momentum from 2017, today we announced an agreement to combine with Fuji Xerox to create a world leader in innovative print technologies and intelligent work solutions. The new company expands the long-standing relationship between Xerox and Fujifilm, and will be better positioned to meet customer expectations and deliver incremental value to our shareholders.”
The company saw a total revenue of $2.7 billion (€2.17 billion), an increase of 0.5 percent or down 2.0 percent in constant currency year-over-year. The successful launch of new products earlier in the year helped drive equipment sale revenue growth of 4.3 percent or 1.5 percent in constant currency. Post-sale revenue was 75 percent of total revenue. Fourth-quarter adjusted operating margin was 14.4 percent, up 0.2 points year-over-year.
For the full year 2017, Xerox recorded the following:
- Total revenue of $10.3 billion (€8.28 billion), down 4.7 percent and in line with the company’s guidance of down mid-single digits
- Adjusted operating margin of 12.8 percent, up 0.3 points and within the expected range of 12.5 to 13.5 percent
Looking ahead to the full year 2018, the company expects “continued progress […] as projected in its financial guidance. The company expects its revenue trajectory to improve, declining 2 to 4 percent at constant currency. 2018 adjusted operating margin is expected to expand and be in the range of 13 to 14 percent. Xerox expects to generate operating cash flow from continuing operations of $900 to $1,100 million (€724 million to €884.7 million) and free cash flow from continuing operations of $750 to $950 million (€603.2 million to €764 million.)
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