Xerox posts $5bn revenue in Q2
Norwalk, Connecticut, July 29, 2013
Xerox, a global leader in business process and document management, posted a revenue of $5.4 billion, up one per cent for the second quarter of this year.
The company said its second quarter adjusted earning per share (EPS) of 27 cents excludes 4 cents related to the amortisation of intangibles. Gaap EPS from continuing operations was 23 cents.
Its services business revenue was up 5 per cent, which includes 4 per cent growth from business process outsourcing, 6 per cent growth in document outsourcing and 13 per cent growth from IT outsourcing. Services revenue represents 55 per cent of Xerox’s total revenue.
“Through the breadth of our outsourcing services and innovative technology, today’s Xerox simplifies the way work gets done for organisations around the world,” said Ursula Burns, chairman and chief executive officer.
“Our clients are increasingly expanding their partnerships with us to improve the effectiveness of their operations. As a result, the total contract value of services signings was up 40 per cent in the second quarter, our pipeline grew 10 per cent and our BPO and ITO contract renewal rate was 95 per cent – strong indicators of a sound strategy that fuels the success of our business for the long term.”
Second-quarter operating margin of 9.4 per cent was up 2 points sequentially, down 0.5 points year over year. Gross margin was 31.4 per cent. Selling, administrative and general expenses were 19.3 per cent of revenue.
The company generated $533 million in operating cash flow, and remains on track to generate $2.1 billion to $2.4 billion in full-year operating cash flow.
For third quarter, Xerox expects Gaap earnings from continuing operations of 20 to 22 cents per share and adjusted EPS of 24 to 26 cents per share.
The company continues to expect full-year 2013 GAAP earnings per share from continuing operations in the range of 94 cents to $1.00, and adjusted EPS of $1.09 to $1.15. - TradeArabia News Service