QUOTE AND NEWS
DailyFinance  8 hrs ago  Comment 
When it comes to a mess at home or in the office, paper clutter can be the most unsettling. It represents lingering decisions and remaining to-dos. It consists of documents that you might need in the future and others you fear...
Benzinga  Apr 8  Comment 
The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday April 7, 2014: Xerox Acquires Smart Data The Deal: Xerox (NYSE: XRX) announced Tuesday the acquisition of Smart Data Consulting, a provider of...
DailyFinance  Apr 8  Comment 
Xerox (NYSE: XRX) today announced the acquisition of Smart Data Consulting to expand its e-discovery services and technology consulting capabilities designed for law firms and corporations. Smart Data provides...
StreetInsider.com  Apr 8  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Xerox+%28XRX%29+Bolsters+e-Delivery+Services%2C+Technology+Consulting+with+Latest+Acquisition/9362404.html for the full story.
DailyFinance  Apr 4  Comment 
WDS, A Xerox Company (NYSE:XRX), a leader in customer care automation, analysis and knowledge management, has launched Self-Care Express, a knowledge service package to help regional mobile operators and MVNOs...
Benzinga  Apr 3  Comment 
High occupancy carpooling lanes are critical to combating roadway congestion. However, their benefits are severely limited when motorists do not abide by the rules. Xerox (NYSE: XRX) today announced the launch of its Vehicle Passenger Detection...
TheStreet.com  Mar 24  Comment 
NEW YORK (TheStreet) -- Xerox  fell Monday amid the company's announcement that Lynn Blodgett would step down as president at the end of 2014. Robert Zapfel, a 35-year veteran of IBM , will succeed Blodgett and will report to chairman and CEO...
newratings.com  Mar 24  Comment 
NORWALK (dpa-AFX) - Xerox Corp. (XRX) Monday said it appointed Robert Zapfel as president of Xerox Services reporting to Chief Executive Ursula Burns, effective April 1. Zapfel succeeds Lynn Blodgett, who will retire at the end of 2014. Blodgett...
Forbes  Mar 20  Comment 
Robert Kleinschmidt of Tocqueville Asset Management has a number of technology stocks that are winners for his firm. The portfolio manager speaks with Steve Forbes about biotech stocks, the economy, and lessons from the collapse of 2008.
Benzinga  Mar 6  Comment 
Before the dawn of the information age and its characteristic explosion of personal computing, Xerox (NYSE: XRX) was a global power. Every company needed to make copies, and Xerox copiers were the best on the market, even if they did cost an...




 

Xerox (NYSE: XRX) provides document systems and services for businesses. The company makes printers, multi-function devices production publishing systems, managed print services, and related software. Xerox also provides support and supplies such as toner, paper, and ink. The company is the industry leader in managed print services. The company is best known for its copy machines, which in turn has lead the business world to use company's name as a verb (meaning to copy). In order to keep the positive branding it has obtained since its founding in 1906, the company has made efforts to keep up with technological advances by restructuring itself into more of a serviced based company. The company even changed its logo in the late 2000s as an indicator of the re-branding. The company earned $15 billion in revenue and $485 million in net income in 2009.[1]

Company Overview

As the document industry has changed over the past few years, Xerox has focused more on the sale and maintenance of high-end color image and managing systems. Xerox continually tries to make new technological advances to maintain their equipment sales. Simultaneously, Xerox has taken a larger role as a service-based company. This transition will allow the company to reduce risk and maintain a consistent revenue stream as clients sign long-term agreements with the company.

Business Segments[2]

  • Office - Xerox develops and manufactures a range of color and black-and-white multifunction, printer, copier fax products and document related software solutions. The company's Office segment serves global, national and small to mid-size commercial customers, as well as government, education and other public sector customers. Office systems and services, which include monochrome devices at speeds up to 95 ppm and color devices up to 85 ppm, include our family of ColorQube, WorkCentre® multifunction printers (“MFP’s”) and Phaser® desktop printers and MFP’s.
  • Production - the segment provides high-end digital monochrome and color systems designed for customers in the graphic communications industry and for large enterprises. The company offers a complete family of cut-sheet monochrome production systems from 65 to 288 ppm, color production systems from 40 to 110 ppm and a complete line of continuous feed printers from 250 to 1,300 ppm.
  • Other - The Other segment primarily includes revenue from paper sales, value-added services, wide-format systems and GIS network integration solutions and electronic presentation systems.

Acquisitions[3]

In February 2010, the company acquired Affiliated Computer Services, Inc. ACS is a premier provider of diversified business process outsourcing and information technology services and solutions to commercial and government clients worldwide in areas that include finance and accounting services, communications, transportation, human resources, healthcare, transaction processing, and customer care.

Business Growth

FY 2009 (ended December 31, 2009)[1]

  • Net revenue fell 14% to $15 billion. The company attributes the decline to lower sales volume due to the sluggish economy.
  • Net income more than doubled to $485 million.

Key Trends and Forces

  • Digitization of information: Computers and the internet have become indispensable parts of business operations. As emails and digital documents replace traditional means of sending and storing information, Xerox and other document industry firms will face the challenge of decreased demand for paper-related systems and products. The company has begun to offer services such as the Office Document Assessment that allow the company to analyze client’s workflow and document needs, and then identify the most effective mix of office equipment and software for that business. Xerox works to reduce their customer’s document-related costs while increasing their own profits as they offer these and similar high-margin services. Despite the transition to digital systems, paper-related products will remain a vital element of Xerox's business so the company is still vulnerable to fluctuations in Timber Prices.
  • Transition to Color: A transformation continues to take place in the document industry, as the demand for monochrome systems diminishes and more customers want color products. Xerox and its competitors are continuously developing advances in color printing and copying and the firm that is able to take advantage of this new market will see significant growth in profits. Since color products require more supplies, they also have profit margins five times as great as monochrome printers.[4]

Competition

Below are the five largest companies in the office equipment industry (excluding computers):

References

  1. 1.0 1.1 XRX 2009 10-K Exhibit 13 "Consolidated Statements of Income" pg. 28
  2. XRX 2009 10-K "Segment Information" pg. 6-11
  3. XRX 2009 10-K "Acquisitions" pg. 4
  4. XRX 2009 10-K "Accelerating the transition to color" pg. 3
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