The OEM’s third quarter results saw it cut costs and meet analysts’ predictions.
The Gazette reported that Xerox’s third quarter profit was $181 million (€165 million), a figure that “met analysts’ expectations” as it has “trimmed costs”. Last year, it lost $34 million (€31 million) in the quarter, while total costs and expenses fell by 10 percent to $4.06 billion (€3.75 billion), though revenue conversely fell from $4.33 billion (€3.95 billion) to $4.21 billion (€3.84 billion), the only area where results fell short of the predictions.
The OEM noted that it’s “still on track” to complete the split into two companies “by year’s end”, with analysts having been “pessimistic” about its likely results ahead of the announcement. The OEM’s forthcoming split was revealed in January, and current CEO Ursula Burns will not remain as CEO after it splits.
Xerox will split into one business focused on services and the other focused on hardware, in a strategy similar to the recent split of HP into Hewlett Packard Enterprise and HP Inc. The two were named as Xerox Corporation (the document technology company) and Conduent (the business process outsourcing company), worth $11 billion (€10.1 billion) and $7 billion (€6.4 billion) respectively.