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Xerox CEO to Investors: Industry Leadership, Annuity Business, Strong Financial Position Deliver Shareholder Value - Tuesday, May 04, 2010
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Xerox Corporation (NYSE: XRX) is
addressing how its annuity-based business, strong operating cash flow and
industry-leading technology and services are differentiating Xerox
and creating more value for shareholders.
“Over the past few years, we have fundamentally changed our
company. We prioritized investments in innovation to create the
industry’s broadest portfolio of document technology. We
significantly scaled our services business to boost our annuity and expand our
market opportunities. We increased our distribution channels to bring the Xerox
brand to more businesses of all sizes. And, we maintained a disciplined and
diligent approach to driving efficiencies across the enterprise,” said Ursula Burns, Xerox chief
executive officer. “As a result, we are competitively advantaged to continue
winning in the marketplace. And, we are well positioned to continue delivering
solid revenue growth, earnings expansion and increased operating cash.”
During the conference, Xerox will outline its financial profile
for the next three years. For 2010, the company expects pro-forma revenue growth
of 1 to 3 percent. Full-year GAAP earnings are expected to be 37 to 47 cents per
share. Xerox expects to deliver full-year adjusted earnings per share at the
high end of the company’s guidance of 75 to 85 cents per share. Cash from
operations is expected to be $2.6 billion.
Xerox projects that, by 2011, full-year revenue will be
approximately $24 billion, and is expected to grow to $25 billion in 2012. The
company expects adjusted EPS to be 95 cents to $1.05 per share in 2011 and $1.10
to 1.20 per share in 2012.
Xerox is on track with revenue synergies from the ACS
acquisition and cost-reduction activities. The company expects to deliver at
least $100 million in profit synergies during year one, with upside potential to
$150 million. By year three, Xerox expects profit synergies will ramp to more
than $375 million.
Xerox will also update investors on strategic growth initiatives
including:
- Building Value Through Services – This month, Xerox will
add mobile print capabilities to its market-leading Enterprise Print Services
platform. Developed closely with customers such as Procter & Gamble Company,
mobile print allows workers to print directly from their SmartPhones without
downloading software, mapping to a printer or booting up a laptop.
In
the first quarter, revenue from business process outsourcing grew 8 percent on a
pro-forma basis. Now a Xerox company, ACS recently signed a ten-year, $1.6
billion contract to manage the state of California’s Medicaid Management Information
System (MMIS). ACS will use Web-based applications and data
analytics to improve healthcare provider administration for California’s
Medicaid program. The online portal will allow providers to submit and check
claims, determine beneficiary eligibility, enroll in pharmacy programs, prevent
fraud and generate referrals for patients. - Accelerating Color Transition – Xerox color devices print
the highest volume of pages in the industry. Color printing grew 11 percent in
the first quarter of 2010. Adding to the world’s strongest color printing
portfolio, Xerox introduced 17 new color products in 2009 including the ColorQube 9200™ Series solid ink
multifunction printer. CityCenter, an urban metropolis of hotels and
residences, dining and shopping on the Las Vegas Strip, recently installed 37
ColorQube 9200s to meet sustainability goals. ColorQubes generate 90 percent
less supplies waste and 10 percent fewer greenhouse gases, and use 9 percent
less lifecycle energy than comparable laser printers.
- Advancing Customized Digital Printing – Industry forecasts
show digital color page volume in North America accelerating. That growth is
illustrated through Cathedral Corporation’s use of Xerox’s 980 Color Continuous Feed
System to address increased demand for personalized direct mail
pieces. In addition, Xerox recently announced its Color 800/1000 Presses, an
advanced system for the production of full-color personalized sales collateral, direct-marketing pieces and photo products.
- Expanding Distribution – Since its 2007 acquisition of Global
Imaging Systems, a large U.S. reseller of document technology, Xerox
has continued to expand its distribution through multiple sales channels. Xerox
has acquired 10 additional U.S.-based dealers and two European distributors. By
broadening its technology to include more entry-level printers and multifunction
systems and expanding its channels of distribution, Xerox significantly
increased its presence in the small and mid-size business market, helping to
fuel a 17 percent increase in total equipment installs during the first quarter
of 2010.
About Xerox Xerox Corporation is a $22 billion leading
global enterprise for business process and document management. Through its
broad portfolio of technology and services, Xerox provides the
essential back-office support that clears the way for clients to focus on what
they do best: their real business. Headquartered in
Norwalk, Conn., Xerox provides leading-edge document technology, services,
software and genuine Xerox supplies for graphic communication and office printing environments of
any size. Through ACS, A Xerox Company, which Xerox acquired in February 2010,
Xerox also offers extensive business process outsourcing and
IT outsourcing services, including
data processing, HR benefits management, finance support, and customer
relationship management services for commercial and government organizations
worldwide. The 130,000 people of Xerox serve clients in more than 160 countries.
For more information, visit http://www.xerox.com, http://news.xerox.com or http://www.acs-inc.com. For
investor information, visit http://www.xerox.com/investor. |
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