Xerox Revenue, Profit Fall

Xerox Corp. said it saw revenue fall and profit plunge in the latest quarter, as currency fluctuations and the company's document-technology business dragged on results.

The Norwalk, Conn.-based company, synonymous with paper copiers and printers, has been transforming its business as sales of signature products fall in an increasingly digital workplace.

But expanding into information-technology services, cloud computing, document management and bill processing has come at a cost, with the company posting a recent run of quarters with dipping revenue. The company has also battled the same currency headwinds that have whipped through U.S. companies' income statements lately.

For the quarter, Xerox posted a profit of $12 million, or a penny a share, compared with $266 million, or 22 cents, during the same period last year. Excluding items such as a $145 million software impairment charge, adjusted earnings were 22 cents.

Revenue tumbled 7.1% to $4.59 billion from $4.94 billion a year ago. Revenue was down 3% when adjusted for currency volatility. The portion of revenue linked to the company's services business, which accounts for a little more than half of total revenue, was $2.6 billion, down 3% from a year ago. The document technology segment collected $1.9 billion in revenue, down 12%.

Xerox met its per-share earnings expectations, which were between an adjusted 21 cents and 23 cents. Revenue was just under the view of analysts polled by Thomson Reuters, who called for $4.64 billion.

For the current quarter, Xerox forecast earnings on an adjusted per-share basis between 22 cents and 24 cents. For the full year, Xerox expects adjusted earnings at the lower end of its range of 95 cents to $1.01.

The company repurchased $395 million in shares during the quarter ended in June and said Friday it is boosting its full-year buyback cap to $1.3 billion.

Earlier this month, Xerox said it would refocus its government health care business following a review that resulted in a $145 million software impairment charge in the recently-ended quarter.

Xerox said it would take on fewer Medicaid management jobs and discontinue its integrated eligibility system, which offered services like call centers and document imaging for the health-care industry.

Write to Ezequiel Minaya at [e-mail]

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