Xerox Operating Profit Beats Street

The Stamford, Conn.-based maker of copiers, printers and multifunction devices saw a profit of $86 million on sales of $3.9 billion, compared with a profit of $87 million on $4 billion in sales for the same period a year earlier.

"Clearly this quarter was a breakthrough," said Xerox CEO Anne Mulcahy in a conference call with analysts. "As we know, the economy and the competitive environment are challenging. We've been working hard to build a business model that sustains bottom-line results."

The results were the first since Xerox launched a new series of products and offerings in April, including multifunction devices it expects to ship through general distribution this fall.

"We are beginning to see the benefits of the new suite of products," Mulcahy said. She also said Xerox's two-tier channel rollout of its multifunction devices in Europe bodes well for the planned rollout in North America.

We're very pleased, particularly in the multifunction space ... in Europe," Mulcahy said. "That gives us an indication that's both a healthy growth and profit strategy. We're looking to reflect some of those learnings [in Europe] in North America through the indirect channels."

Xerox reported 64 percent year-over-year growth worldwide on a combined basis for its color copier and multifunction device units, the company said.