Xerox, despite steady growth in its services business, reported a three percent decline in revenues, hitting US$5.4 billion, for its 2012 third quarter when compared to the year ago quarter.
The company reported services revenue, which includes printing for corporate and government clients, increased by five percent in the quarter, partially offsetting a seven percent constant currency decline in technology revenue, representing the sale of document systems, supplies, technical service and financing of products. Specifically, equipment sales revenue declined 14 percent as compared to the third quarter of 2011.
“Our third-quarter performance aligns with shifts in our business as services become a larger proportion of our revenue," stated Ursula Burns, Xerox CEO. “Steady growth in services is consistent with our strategy. Scaling our offerings in business process, IT and document outsourcing gives us a diversified portfolio that helps mitigate declines in equipment sales and supplies.”
In the company's services business, constant currency revenue from business process outsourcing grew nine percent, IT outsourcing grew six percent and document outsourcing, which includes Xerox print services offerings, was up four percent.
During the fourth quarter, Xerox is planning to take a restructuring charge in the range of US$50 million to US$100 million.