QUOTE AND NEWS
Benzinga  Apr 26  Comment 
Xerox Corp (NYSE: XRX) reported its March Q revenue and EPS in-line with expectations. Brean Capital’s Ananda Baruah downgraded the rating for the company from Buy to Hold, ahead of Xerox’s split into two independent, publicly- traded...
The Hindu Business Line  Apr 26  Comment 
Energy shares dragged Wall Street slightly lower on Monday, tracking a decline in oil prices, while earnings and guidance from companies, including Perrigo and Xerox, also weighed on US stocks. Wit...
SeekingAlpha  Apr 25  Comment 
Benzinga  Apr 25  Comment 
Xerox Corp (NYSE: XRX) shares are trading lower by $1.44 (13 percent) in Monday's session. The catalyst for the sharp decline is a Q1 EPS miss of a penny with a slight beat for revenue. The affirmation of FY 2016 guidance has been no comfort to...
SeekingAlpha  Apr 25  Comment 
Forbes  Apr 25  Comment 
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a...
Forbes  Apr 25  Comment 
In early trading on Monday, shares of Laboratory Corporation of America Holdings (LH) topped the list of the day's best performing components of the S&P 500 index, trading up 2.0%. Year to date, Laboratory Corporation of America Holdings registers...
Benzinga  Apr 25  Comment 
Following the market opening Monday, the Dow traded down 0.48 percent to 17,916.84 while the NASDAQ declined 0.22 percent to 4,895.43. The S&P also fell, dropping 0.40 percent to 2,083.14. Leading and Lagging Sectors On Monday, the healthcare...
Clusterstock  Apr 25  Comment 
Stocks opened lower on Monday morning, following a positive week that pushed stocks to the best levels of 2016.  Near 10:25 a.m. ET, the Dow was down 130 points, the S&P 500 was down 11 points, and the Nasdaq was down 21 points.  It wasn't 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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