Xerox Holding Corp. on Tuesday reported mixed results, including an 8 percent decline in first-quarter sales and a 21-cent improvement in earnings.
For the quarter ended March 31, the document company reported revenues of $1.71 billion, down from $1.86 billion in the year-ago quarter. Net income for the quarter was $39 million, compared with a net loss of $2 million in the first quarter of 2020. On a per-share basis, diluted earnings were 18 cents, compared with a loss of 3 cents in the first quarter last year.
Adjusted income for the quarter was $47 million, with non-GAAP earnings at 22 cents.
Analysts had expected non-GAAP earnings of 29 cents on revenue of $1.59 billion.
“In the first quarter, in an environment where many offices remained closed, we grew equipment sales and IT Services revenue year-over-year. I am proud of how our employees have continued to deliver for our customers during the pandemic. We made progress toward standing up XFS, Xerox Software and PARC Innovation as separate businesses, which we now expect to complete in calendar year 2021,” said Xerox Vice Chairman and CEO John Visentin. “With small and medium-sized business and enterprise clients planning to return more employees to the office, our differentiated offerings are well-positioned to serve their growing needs. The strength of our performance, portfolio and strategy give us confidence we will return Xerox to growth in 2021.”
Services, maintenance and rentals made up the bulk of Xerox’s revenues for the quarter at $1.05 billion. Sales were $602 million, while financing was $55 million.
The company reported cash on hand of $2.38 billion at the end of the first quarter, down from $2.63 billion at the end of the fourth quarter of 2020. Total assets for the quarter were down nearly $500 million to $14.27 billion.
Shares of company stock (NYSE: XRX) were down more than 3 percent to $24.51 in morning trading.
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