Xerox Extends SMB Reach In Q4
Equipment sales were up 10 percent, due to the acquisition of Tampa, Fla.-based Global Imaging Systems last year, which gives the vendor a greater reach into the SMB market, the company said. Xerox launched 39 products in 2007.
Revenue from color, which represents 40 percent of the company's revenue, was up 14 percent for the quarter. "As businesses shift to more color in the office and begin to see the cost benefits of simplifying their work processes, they're turning to Xerox for our innovation and expertise. Our focus on color and document services is fueling our annuity stream and creating long-term value in our company," said Xerox CEO Anne Mulcahy, in a statement.
Norwalk, Conn.-based Xerox posted profits of $382 million, or 41 cents per share for the quarter, up from 22 cents per share, or $214 million, in 2006. Last year's profits included a 16 cent per share restructuring charge. Revenues for the quarter were $4.9 billion, up 11 percent from $4.38 billion last year.
Shares of Xerox were trading at $14.28, up 7.8 percent in afternoon trading.
Its board also authorized another $1 billion stock buyback, adding to the 137 million shares it has repurchased since launching a buyback program in October 2005.
Xerox's earnings were in line with Wall Street expectations. On average, analysts polled by Thomson Financial expected earnings of 41 cents per share on $4.83 billion in revenue.
For the year, Xerox posted revenue of $1.72 billion, beating out the previous year's $15.9 billion by more than 8 percent.
Xerox expects its first quarter 2008 earnings to be between 25 to 28 cents per share. Analysts are predicting earnings will come in at 28 cents per share.