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July 28, 2008
Services Prove Resilient
Xerox reaffirmed its commitment to service contracts, consumables sales, and leasing arrangements during a recent conference call with financial analysts that coincided with the release of its second-quarter earnings.
Although the company took a hit in the quarter from restructuring charges, it continues to hold to its positive outlook for 2008 profits. This comes despite lingering concerns about the overall U.S. economy and weak domestic sales for printing and imaging hardware.
That’s because Xerox is continuing to see strong revenue performance for services and consumables. For example, while total revenues rose 8 percent in the quarter, post-sale revenues climbed 10 percent.
Chief executive Anne Mulcahy highlighted the benefits of long-term contracts in a prepared statement. “Our annuity-based global business led to steady revenue growth this quarter. While the U.S. economy creates challenges for our business with large enterprises, we’re seeing consistent positive performance in the small and mid-size business market,” Mulcahy added.
In addition, the company said it’s seeing strong demand for document-management services, as well as for color revenues, which rose 11 percent.
Posted by ajoch at July 28, 2008 09:16 AM
