Total revenue fell by three percent, but OEM maintains the quarter “demonstrates progress”.
The results for 2Q2014 saw total revenue of $5.3 billion (€3.9 billion), a three percent fall, though its services business, which makes up 57 percent of the total revenue, saw a growth of two percent to $3 billion (€2.2 billion), whilst in turn its document technology business, representing 40 percent of revenue, fell seven percent to $2.1 billion (€1.5 billion).
The OEM’s operating profit for the quarter came in at $514 million (€382 million), a growth of one percent, whilst $325 million (€241 million) of cash flow was generated from operations in the quarter, meaning $611 million (€454 million) was generated in the first half of the year. Xerox also repurchased $204 million (€151 million) in stock in the quarter, totalling $479 million (€356 million) purchased in the first half of the year.
Acquisitions cost the OEM $227 million (€168 million) for the quarter and $281 million (€209 million) for the half year, though Xerox noted that the expenditure “strengthen[ed] our services portfolio”.
Ursula Burns, Chairman and CEO of Xerox, commented: “The second quarter demonstrates progress in executing on our strategy. In our services business, revenue growth and margin are trending well in commercial services, document outsourcing and internationally. Services segment margin improvement was muted by continued pressure in our government healthcare business including unplanned impairment charges.
“Our document technology business continues to deliver strong profitability through a disciplined and effective approach to operations. As we enter the second half of the year, we are focused on improving on our progress and capitalising on opportunities that will shape the success of our business. Our business continues to deliver strong cash flow that gives us the flexibility to invest in growth, build shareholder value now and in the future, and positions us well to deliver on our expectations.”