Print giant Xerox recorded revenue of $US1.75 billion in second quarter 2023, up 0.4 percent year over year, with profit up 205% to $US107 million. “In the second quarter 2023, resilient demand and balanced execution drove another quarter of growth in revenue, profits and cash flow,” Xerox said.
"Profitable growth": Xerox CEO Steve BandrowczakXerox CEO Steve Bandrowczak: “Over the last 12 months, Xerox has taken significant steps to strengthen its operating and financial discipline, leading to another quarter of profitable growth amid a dynamic macroeconomic backdrop.
“I’m proud of the part all Xerox employees and partners have played in our continued success. An improved operating system leaves us well positioned to pursue growth opportunities as we focus on meeting clients’ evolving needs in today’s hybrid workplace.”
Equipment sales revenue of $420 million in the second quarter 2023 increased 14.8% in actual currency as compared to the prior year period, “reflecting stable demand and improved product availability, particularly in the Americas, and for our higher margin A3 devices,” Xerox said.
“Consistent with recent quarters, revenue growth outpaced equipment installations due to favourable mix and pricing. Post-sale revenue of $1.3 billion in the second quarter 2023 declined 3.4% in actual currency as compared to the prior year period and 3.2% in constant currency. The decrease was driven primarily by non-contractual items, including lower IT hardware and paper sales, lower finance income and the cessation of Fuji royalties, partially offset by gains and commissions on sales of finance receivables.”
Second-Quarter Key Financial Results
- Revenue of $1.75 billion, up 0.4 percent, or 0.5 percent in constant currency.
- GAAP (loss) earnings per share (EPS) of $(0.41), down $0.36 year-over-year.
- Adjusted EPS of $0.44, up $0.31 year-over-year.
- Adjusted operating margin of 6.1 percent, up 410 basis points year-over-year.
- Operating cash flow of $95 million, up $180 million year-over-year.
- Free cash flow of $88 million, up $186 million year-over-year.
- Increasing guidance for adjusted operating margin to a range of 5.5% to 6.0%, and free cash flow to at least $600 million.
