Xerox Reports Decreased Q2 Revenue Apr 24, 2006

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Business appliance maker Xerox Corporation announced total revenue for the first quarter of 2006 totaled U.S. $3.7 billion, or $0.20 earnings per share.

Equipment sale revenue declined 4 percent, offset by continued improvement from the company's post-sale revenue stream. Post-sale and financing revenue, which represents about 75 percent of Xerox's total revenue, declined 1 percent in the first quarter and grew 1 percent in constant currency.

"Our steady improvement in post-sale revenue shows that Xerox's business model is working. We also delivered solid product install growth, a more than 25-percent increase in signings for document management services, and 11 percent growth in revenue from Xerox digital color systems," said Anne M. Mulcahy, Xerox chairman and CEO. "For the past 5 years, we've been focused on building the install base of our digital document technology, especially color, and increasing demand for Xerox services. The post-sale revenue from this business generates a healthy annuity stream that fuels profitable growth."

Xerox expects second-quarter 2006 earnings in the range of $0.22 to $0.24 cents per share, which includes a $0.01 charge related to the company's recent termination of its 2003 credit facility.

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