Xerox reports its last quarter’s earnings
- Total revenue down 5.7% to $1.65 billion down $70 million YoY
- Down in the Americas by 3.6%
- Operating margin up 40 basis points to 4.1%
- Gross margin of 32.4%
- Research and development now 3.1% of revenue
- Operating cash flow of $124 million
- Net income of $49 million
- Total core debt of $1.12 billion
- Hardware sales revenue down 2% to $386 million
- A4 color units down 52%, A4 b/w units down 28%
- A3 color units down 18%, A3 b/w units down 10%
- Color PPS units up 15%, B/w PPS units down 16%
- A4 device revenue down 24.3% to $56 million
- A3 MFP revenue up 5.7% to $260 million
- Production print revenue up 3.1% to $67 million
- Post sales (service/supply) revenue down 9% to $1.3 billion
October 29th 2023 •- Services/maintenance/rental revenue down 4.85 to $962 million
- Supplies revenue down 14% to $258 million
- Financing activity consumed $94 million of cash
- Stock share value is down 7.7% this year
- CNN Money reports; “market analysts and shareholders questioning the future trajectory”
- “remains to be seen how Xerox will navigate the challenges ahead and regain investor confidence”
- Current market capitalization = $2.2 billion
- Will also launch new “Reinvention” program to reduce costs
- “taking more selective approach to our direct operations in certain markets, shifting to a partner-led (dealers) distribution model”
- “streamline our product offerings”
- “simplify our pricing models”
- With new program “expect to deliver an improvement to 2023 adjusted operating income of at least $300 million”
- “return to double digit adjusted operating margins”
- Program to conclude in 2026