QUOTE AND NEWS
DailyFinance  Jul 18  Comment 
Xerox (NYSE:XRX) will host a live audio webcast with online presentation slides on July 25 to review its second-quarter results, which will be announced that day at 7 a.m. ET, and discuss guidance for upcoming ...
DailyFinance  Jul 17  Comment 
Xerox's (NYSE:XRX) board of directors today declared a quarterly cash dividend of 6.25 cents per share on Xerox common stock. The dividend is payable on October 31, 2014 to shareholders of record on September 30, 2014. ...
Forbes  Jul 11  Comment 
Looking at the sectors faring best as of midday Friday, shares of Technology & Communications companies are outperforming other sectors, up 0.3%. Within the sector, Western Digital (NASD: WDC) and Xerox (NYSE: XRX) are two of the day's stand-outs,...
Forbes  Jul 9  Comment 
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Industrials/Producer Durables AlphaDEX Fund (AMEX: FXR) where we have detected an approximate $63.4...
TheStreet.com  Jul 7  Comment 
NEW YORK (TheStreet) -- TheStreet Ratings team reiterated its "buy" rating for Xerox with a ratings score of B+. Shares of Xerox fell -1.9% to close at $12.21. About 12 million shares of the company were traded Monday, compared to the average...
Motley Fool  Jul 1  Comment 
Does this analyst make a good case? Or is it just more noise from Wall Street?
Benzinga  Jul 1  Comment 
In a report published Tuesday, Citi analyst Jim Suva downgraded Xerox (NYSE: XRX) from Buy to Neutral given the run-up in share price over the past year. Over the past 12 months, shares of Xerox have gained 35 percent versus the 20 percent...
TheStreet.com  Jul 1  Comment 
NEW YORK (TheStreet) -- Shares of Xerox Corp.  are lower by -1.29% to $12.28 in pre-market trading today following a ratings downgrade to "neutral" from "buy" at Citigroup . The firm said it dropped its rating on the diversified business...
DailyFinance  Jun 30  Comment 
Industry research firm Gartner, Inc. placed Xerox (NYSE:XRX) in the Leaders Quadrant of its 2014 Magic Quadrant for Finance and Accounting (F&A) Business Process Outsourcing (BPO).1 Quadrant leaders have...
TheStreet.com  Jun 26  Comment 
NEW YORK (TheStreet) -- Shares of Xerox Corp.  are down -2.7% to $12.31 after Argus downgraded its rating to 'hold' from 'buy' on valuation. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a...




 

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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