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Shares of Xerox Corp. were down slightly Tuesday afternoon after the company reported its first-quarter financial results before the market opened.
Xerox shares (NYSE: XRX) were trading midday at $8.50, down roughly 1 percent from Monday’s close of $8.60.
Xerox reported an increase in its first-quarter profit, despite a drop in revenue.
The company reported net income attributable to Xerox of $296 million, or 23 cents a diluted share, compared with net income of $269 million, or 19 cents a diluted share, a year ago. Excluding 4 cents a share related to the amortization of intangibles, earnings per share were 27 cents.
Sales were nearly $5.4 billion, down 3 percent from sales of $5.5 billion.
Revenue from the company’s services business was up 4 percent to $2.9 billion and represented 55 percent of total revenue.
Revenue from the company’s document technology business was $2.1billion, down nine percent from last year. The document technology business represented 40 percent of total revenue.
For the first quarter, Xerox expected earnings of 19 to 21 cents a share and adjusted earnings per share of 23 to 25 cents.
Analysts polled by Thomson Reuters expected Xerox to report earnings per share of 24 cents on sales of roughly $5.5 billion.
“We delivered solid revenue growth in our services business along with a stable segment margin and a 64-percent increase in the total contract value of signings to $3.7 billion,” said Ursula Burns, Xerox chairman and CEO, in a statement.
The company used $87 million in operating cash during the first quarter, in line with cash flow seasonality and reflecting an increase in inventory related to new product launches.
For the second quarter, Xerox expects earnings of 19 to 21 cents a share and adjusted earnings per share of 23 to 25 cents a share. The company plans a higher level of restructuring activities in the second quarter, and has included 2 cents a share of restructuring in its guidance.
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