The OEM’s revenue has increased by one percent overall, with its services arm showing the most growth.
The OEM’s release on the results stated that the revenue for 2Q13 was $5.4 billion (€4.08 billion), an increase of one percent, with discontinued operations worth $5.5 billion (€4.16 billion) included in the large total.
Revenue also increased across its services business by five percent, including four percent growth in process outsourcing, six percent growth in document outsourcing and 13 percent growth in IT outsourcing, with services revenue representing 55 percent of the OEM’s total revenue for the quarter. Operating cash flow was $533 million (€403.1 million), and Xerox “remains on track” to create $2.1 billion to $2.4 billion (€1.58 billion to €1.81 billion) in operating cash flow for the year.
On the other hand, revenue from its document technology business was down five percent, though the OEM noted that this had “improved sequentially from the first quarter of this year”. With the introduction and sale of its ConnectKey platform, which included printers and MFPs, the OEM has “benefitted” and “expanded distribution through channel partners and increased demand” for digital production presses.
In fact, Xerox signed and began to install its “largest order ever for high-speed colour presses”, which it notes “strengthen[s]” its market leadership, with document technology revenue in total representing 42 percent of the overall revenue figures. Operating margin for 2Q2013 was up to 9.4 percent, whilst gross margin was 31.4 percent, with selling and general expenses making 19.3 percent up of the revenue.
Ursula Burns, Xerox Chairman and CEO, stated: “Through the breadth of our outsourcing services and innovative technology, today’s Xerox simplifies the way work gets done for organizations around the world. Our clients are increasingly expanding their partnerships with us to improve the effectiveness of their operations.
“As a result, the total contract value of services signings was up 40 percent in the second quarter, our pipeline grew 10 percent and our BPO and ITO contract renewal rate was 95 percent – strong indicators of a sound strategy that fuels the success of our business for the long term. Steady progress in growing revenue combined with a disciplined focus on operational improvements resulted in strong earnings and cash generation, positioning us well to deliver on our expectations for the full year.”
In terms of competitor OEM results, Canon and Lexmark reported net profit for 2Q2013 yesterday.