Xerox has improved cash flow from operations, increased earnings per share and operating margins, but continues to face headwinds which have squeezed revenue.
The company’s Q3 results are about internal measures that have saved the business many, positioning it for long term growth according to vice chairman and CEO John Visentin.
Product sales in the quarter dropped from $856 million to $804 million with total revenues falling to $2.2 billion ($2.4 billion). Total costs and expenses also showed a similar decline, from $2.16 billion to £1.97 billion, though r&d expenses showed little change. The result was a net increase in income to $222 million ($93 million).
Continuing strong demand for Iridesse combined with string demand in the US for the iGen portfolio meant a small increase in sales of high end equipment. A 12% increase in high end colour more than balanced a 22% decline in high end mono machines. There is no impact from inkjet that Xerox considers worth mentioning, nor any mention of the digital offset project that was highlighted at the investors conference earlier this year.
However, Visentin in a call with analysts, referenced the recently announced Baltoro HF inkjet press. “Compared to the competition, this first of a kind smaller press offers increased productivity and better image quality at a lower total cost of ownership,” he said. “These differentiators have enabled us to build us to build a strong pipeline within a few months, and the team has started to deliver product.” It anticipates hitting targets that it had previously set for installations this year.
The future products include artificial intelligence and 3D metal printing, both due to begin generating revenue in 2020. There was no mention of its relationship with Fujifilm either in the announcement of conference call.
Investors took well to the figures, boosting the share price by more than 14% to reach $35.30.