Xerox’s revenue sinks on lower printer sales
Xerox Corp reported a 4.2 percent fall in quarterly revenue, hurt by lower sales of printers and copiers, and said it expects to incur about $100 million in restructuring costs in the second quarter.
The company’s shares closed down about 13 percent at $9.68, their worst day since November 2009.
Xerox said in February it would split into two companies, one holding its legacy printer operations, and the other its business process outsourcing unit, which offers business process outsourcing and document outsourcing.
The company said it expected to incur restructuring costs of about $100 million in the second quarter and about $300 million for the full year, due to the split.
“We are targeting to fill the top roles by midyear,” Chief Executive Ursula Burns said on Monday on a conference call, referring to the new divisions following the restructuring.
The company said it does not plan to repurchase any shares this year as it aims to complete the separation process by the end of 2016.
Rival printer maker Lexmark International Inc said last week it agreed to be taken private by a group of investors led by China-based Apex Technology Co Ltd and PAG Asia Capital in a deal valued at $3.6 billion net of cash.
Xerox said revenue from its document technology business, which includes sales of printers and copiers, fell 10 percent to $1.6 billion in the quarter.
Sales of printers and copiers, its mainstay for over half a century, have fallen for more than four years.
The company said on Monday it expected an adjusted profit of 24 cents to 26 cents per share for the second quarter.
Net income attributable to the company fell to $34 million, or 3 cents per share, in the first quarter ended March 31, from $225 million, or 19 cents per share, a year earlier.
Revenue fell to $4.28 billion from $4.47 billion, compared to analysts’ estimate of $4.24 billion, according to Thomson Reuters I/B/E/S.
Shares of the company had fallen about 15 percent in the past 12 months through Friday.
Source: Reuters
