Xerox forecast second-quarter profit that beat analysts’ estimates as customers renew spending on printing and office services. Details:
o Per-share profit this quarter, excluding some costs, will be at least 20 cents
o Customers are spending more on services to help them manage documents, after curbing budgets amid the recession.
o The rebound, plus a sales boost from the purchase of Affiliated Computer Services Inc., helped Xerox increase sales 33 percent last quarter.
o “People want to hear tangible evidence of decent integration coming out of the chute,” said the San Francisco- based analyst, who rates the shares “hold” and doesn’t own them. “They need to give people confidence.”
o Sales of copier and printer supplies also picked up as corporate spending rebounded from the depths of the recession last year, climbing 15 percent on a pro-forma basis.
o Announced 2,500 job cuts last quarter, leading to an additional $140 million in savings.
o Spent $796 million on research & development in 2009
o Equipment sales decreased 24% from 2008
22% decrease in color MFP sales
Paid $1.6 billion to buy equipment, parts and supplies from Fuji of Japan
• Lead time is 90 days
o Paid a total of $145 million to acquire ComDoc (Ricoh dealer with HQ in Ohio)
o Total debt of $9.264 billion
o The first-quarter loss was $42 million, or 4 cents a share, compared with a profit of $42 million, or 5 cents, a year earlier.
- Xerox launched DocuShare eForms, which converts customer forms into digital PDFs.
- Xerox launched a new promo to boost sales of its ColorQube MFPs (aka the “crayon copiers”), that is directed at religious and education verticals. Details:
o National Religious Organization contract
o Catholic Purchasing Services contract
o Educational & Institutional (E&I) contract
o If customer purchases or leases a new ColorQube, and pays an additional $250 base monthly service/supply fee, there is no click charge for any b/w output or “useful” color output
“useful” color means that less than 1.2% of 8.5”x11” document has some color toner on it
o Full color pages are $0.028 each from click one
o Uses chunks of wax that are heated in cast iron tubs into a liquid, which is then sprayed onto the paper
- Xerox now offering a “Scan to Searchable PDF” option for the following models:
o WorkCentre 7232, 7242, 7328, 7335, 7345, 7346
o WorkCentre 7655, 7665, 7675
o WorkCentre 5632, 5638, 5645, 5655, 5665, 5675, 568
- Xerox announced it sold five production print units to APS Group, a printshop in Uxbridge, England. Sold were:
o Xerox Nuvera 144MX
o Xerox 4112
o Xerox DocuColor 5000
o Two Xerox iGen3 systems
-=Good Selling=-
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