Xerox Corp. today reported a 52-percent drop in its third-quarter profit, but at the same time its numbers slightly bettered the expectations of financial analysts on Wall Street. Xerox CEO Ursula Burns said, “Our third-quarter performance reflects our continued disciplined approach to managing cash and reducing costs. As a result, we exceeded our expectations for earnings and operating cash flow.”
The company generated US$123 million in third-quarter profit, ending September 30, which was down from US$258-million in the same quarter a year ago. Total revenue for Xerox’s Q3 fell 16 percent to US$3.68-billion, compared to US$4.37 billion a year ago. Naturally, the company pointed to poor economic conditions for its drop in profits.
“Just as we are closely managing costs, our customers are doing the same and we have not seen a meaningful shift towards increased spending on technology,” said Burns. “For many of our business clients – small to large – there remains a hesitancy to invest until more economic factors show signs of steady improvement.”
Burns pointed to positive Xerox numbers in its growing services business, which was recently propped up by the move to acquire Affiliated Computer Services: “We’re winning new business from clients who want to reduce their cost base through our industry-leading managed-print services.”