Xerox delivers disappointing sales figures

Xerox delivered the financial results for its fourth quarter and therefore the full year results for 2015. This makes for grim reading and it’s immediately obvious why Xerox has opted to split itself into two halves.

Revenues overall for the fourth quarter were $4.7 billion, down 8 percent or 5 percent in constant currency year-over-year. Annuity revenue was 83 percent of total revenue. The operating margin fell 1.2 percent from the same quarter a year ago to 9.2 percent. Gross margin was 31.3 percent, and selling, administrative and general expenses were 19.0 percent of revenue.

Revenue for the Document Technology half of the company fell a whopping 13 percent, or 10 percent in constant currency terms, to $1.9 billion. The services segment fared better at $2.6 billion, down 3 percent or flat in constant currency over last year. This represented 57 percent of total revenue,

However, Xerox generated $878 million in cash flow from operations during the fourth quarter and ended 2015 with a cash balance of $1.4 billion.

The full year figures show overall sales down 10 percent from 2014, from $5,288m to $4,748m. Total revenues have fallen eight percent, from $19,540 to $18.045. Net income fell 52 percent from $1,013m to $488m, while income before taxes fell 66 percent from $1,206m to $412m.

In terms of print engines, Xerox suffered an eight percent drop in sales of high-end colour systems, and a 10 percent drop in high-end monochrome systems. The mid-range installs were flat for colour devices, with a 16 percent fall in monochrome printers. The entry-level market saw a 49 percent drop in colour printers, which was offset by a 63 percent rise in the number of colour multifunction devices, and a three percent drop in monochrome devices.

Clearly, Xerox is hoping to improve on these results by freeing each half of the company to pursue its own goals. But it’s equally clear that the future growth is likely to come from the services side, though Xerox is promising to unveil new printers at this year’s Drupa show.


Posted

in

by

Syndicate content

You can license the articles from Printing and Manufacturing Journal to reproduce in other publications. I generally charge around £150 per article but I’m open to discussing this for each title, particularly for publishers that want to use multiple stories. I can provide high res versions of images for print publications.

I’m used to working with overseas publishers and am registered for VAT with the UK’s HMRC tax authority but obviously won’t charge VAT to companies outside the UK. You can find further details and a licensing form from this page, or just contact me directly here.

Support this site

If you find the stories here useful then please consider making a donation to help fund Printing and Manufacturing Journal, either as a one-off or a repeat payment. Journalism is only really useful if it’s truly independent and this is the only such news source serving the print/ manufacturing sectors.

However, there are costs involved in travelling to cover events, as well as maintaining this site, not to mention the time that it takes to carry out research, check facts and interview people. So if you value this work, then please help to maintain it and keep it free to read.

Subscribe

Never miss a story – subscribe to Printing and Manufacturing Journal to receive an email notification every time an article is published here. It’s completely free of charge and you can cancel the subscription at any point without any hassle. There’s no need to provide any information other than an email address and subscribers details are not for sale so there’s no risk of any further marketing spam.

Related stories

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *