July 26, 2022
The company has announced its second quarter results, posting revenue of $1.75 billion (€1.72 billion), down year-on-year (YOY) 2.6%.
Xerox Holdings Corporation announced its 2022 second-quarter results. Beginning in the first quarter of 2022, the Company made a change to its reportable segments from one reportable segment to two reportable segments – Print and Other, and Financing (FITTLE). Revenue for the Print and Other segment was $1.63 billion (€1.6 billion), down 2.3% year-on-year.
“While we mourn the passing of our leader and friend, John Visentin, we continue to be guided by – and benefit from – the four strategic initiatives he articulated for returning Xerox to long-term, sustainable growth,” said Xerox interim CEO Steve Bandrowczak.
He added: “Our revenue grew in constant currency in the second quarter, driven by improving demand for our products and services and the realisation of pricing growth. Inflation and supply chain challenges affected margins this quarter, but we expect sequential margin improvement throughout the remainder of the year as we realise further price increases, Project Own It savings, and benefits from a more favourable supply chain environment. Strong demand and line of sight to margin improvement give us confidence to reiterate full-year guidance.”
Xerox said that supply constraints continued to inhibit its ability to fulfil demand, resulting in the growth of its backlog to $440 million (€434 million), a 4.3% sequential increase and more than double prior year period’s levels. Service revenue growth outpaced page volumes growth as contractual price increases began to materialise, the company added.
Xerox said it maintains its revenue and free cash flow guidance for 2022 and expects profitability to improve sequentially for the remaining two quarters of the year.
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