Xerox logoXerox Corporation announced its third-quarter 2011 results on October 25th which include adjusted earnings per share of 26 cents, up 18% from the third-quarter of 2010.
Ursula Burns, Xerox Chairman and CEO said:
"We delivered steady revenue growth this quarter along with earnings and cash in line with our expectations. Our consistent performance positions us well to grow full-year adjusted EPS by 15 to 18%, reflecting our global strengths in business process and document management and the efficiencies we're driving across our enterprise."
Breakdown
Third-quarter revenue came in at $5.6 billion, an increase of 3% or 1 % in constant currency. Earnings from technology, which includes the sale of document systems, supplies, technical service and financing of products, was up 1% down 1% in constant currency.
Commenting on these figures Burns added:
"Supply constraints due to the natural disaster in Japan have eased considerably," she said. "As we continue to meet new demand, while reducing our backlog, we're confident these challenges are entirely behind us."
With regard to Revenue from services, this sector increased by 6% 5% in constant currency, a reflection of growth in business process and document outsourcing, while revenue from IT outsourcing showed no growth. However signings for Xerox's services were quite strong, totaling $3.9 billion in the third quarter -- an increase of 33% from the third quarter of 2010.
"Our services-led, technology-driven approach gives us a competitive advantage in the many markets we serve, especially as businesses and governments seek more efficient ways to run their operations and turn to Xerox for the long term benefits of our outsourcing expertise," continued Burns. "Notable in the quarter was 12% revenue growth in our document outsourcing business as we continue to lead the industry with our broad-based managed print services and 6% growth in business process outsourcing. As demand increased for services, we did see an impact on gross margin, which we continued to offset with cost reductions and operational improvements that helped deliver solid bottom-line results.”
Third-quarter gross margin was 32.7%, with selling, administrative and general expenses 19.9% of revenue. The company’s overall operating margin came in at 9.6%, up 0.4 points from the third-quarter of 2010.
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