The OEM reported a two percent decline in revenue overall and six percent decline in its document technology segment.
The results saw total revenue reach $5.1 billion (€4 billion), a fall of two percent over the last year’s results, with 57 percent of this total coming from the services segment, which saw a one percent increase in revenue to $2.9 billion (€2.2 billion). In turn, the document technology business, representing 40 percent of the total, saw revenue of $2 billion (€1.5 billion), a fall of six percent.
Operating margin meanwhile increased 0.1 percent year-over-year to 9.5 percent, leaving an operating profit of $486 million (€383 million), whilst $595 million (€469 million) in cash flow was generated in the quarter, and Xerox also repurchased $251 million (€198 million) in stock during the quarter, with an expectation that, having repurchased $730 million (€575 million) in the year already, it will have bought back around $1 billion (€788 million) by the end of the financial year.
Ursula Burns, Chairman and CEO of Xerox, stated: “This quarter we delivered earnings at the high end of our range. Profits from our document technology business came in above expectations while Services results were lower than planned. Our document technology business continues to provide strong profitability, and we are continuing to invest in our services business for revenue and profit improvement by strengthening leadership and evolving our operating model to better leverage our scale and drive efficiency and customer value.
“These activities will position us well for the future. Our business continues to deliver strong cash flow that enables us to invest for growth while returning capital to shareholders through share repurchases and dividends.”