Xerox reports last quarter’s earnings
Total revenue down 10.4% YoY to $1.71 billion
Equipment sales revenue up 14.2% to $381 million
A4 revenue up 41.7% to $68 million
A3 revenue up 15.5% to $238 million
PPS revenue up 4.5% to $70 million
o Post sales revenue down 15.6% to $1.329 billion
Print volumes remain below 2019 levels, but saw “modest sequential
increase in page volume as quarter progressed’
- Operating margin up to 5.2%
- Gross margin = 35.7%, down 260 basis points
- Net income = $39 million, down from $41 million
- Operating income of $89 million
- R&D expense now 4.3% of revenue
- SAG expense down $93 million to $448 million YoY
- Total units installed up
o B/w A4 units up 97%
o Color A4 units up 9%
o B/w A3 units up 13%
o Color A3 units up 11%
o B/w PPS units up 18%
o Color PPS units up 46%
- Announced it has signed partnership agreements with ServiceNow, Deloitte and HCL
- Xerox Financial Services currently managed over 700,000 equipment leases
o $3.4 billion of finance assets
o $60 million of bad debt expense
- $4.4 billion of debt outstanding
- Repurchased $452 million of shares during quarter
- Announced that it recently signed its first competitive OEM customer for technical service
Unnamed OEM will outsource parts of their field service operations to Xerox