A Giant Is Born: Fujifilm Deal Allows Xerox To Make Inroads Into Asia-Pacific Print Market, Bolster Next-Gen R&D Efforts

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Xerox's stock was trading up more than 4 percent Wednesday morning, while Fujifilm's stock price tumbled roughly 8 percent on the Tokyo Stock Exchange.

The print giant reported an equipment sales increase of 4.3 percent to $682 million, which Jacobson said was Xerox's first instance of growth in that category since the second quarter of 2013. He cited strong customer reception to the vendor's new line of ConnectKey software-enabled devices and the addition of 65 dealers to the Xerox channel footprint.

CRN spoke with one partner who cheered the chance to sell more of the company's apps into the Asia-Pacific market.

Josh Justice, president of La Plata, Md.-based Just·Tech, said he was excited by the prospect of working with Fuji Xerox in Asia. Just·Tech is a two-time Xerox App Developer of the Year award winner with more than 26,000 apps installed on devices in the U.S, Canada and Europe.

"[We're] now partnered with an $18 billion company that has committed to future growth investments and the elimination of costs, which will make Xerox products even more competitive in this marketplace," Justice said. "Xerox and Xerox channel partners had a great 2017, and it's clear that Fujifilm sees an opportunity to grow even more together with Xerox and their partners."

Jacobson said he expects Xerox's multi-brand reseller expansion strategy to continue as part of Fuji Xerox, which itself hasn't traditionally focused on the multi-brand dealer space.

"That's an area they're going to explore, too. Which is part of the beauty or bringing these two companies together, comparing best practices," Jacobson said.

Xerox reported revenue of $2.75 billion for the fourth fiscal quarter ended Dec. 31, 2017, up 0.5 percent from last year's fourth-quarter mark of $2.73 billion. That beat Seeking Alpha's projections by $100 million. North American revenue declined 1.6 percent to $1.6 billion, while international revenue increased 4.8 percent to $1 billion.

Xerox saw a loss of $190 million for the quarter, or a diluted loss of 76 cents per share, compared with the year-ago quarter's $843 million loss performance, or a diluted loss of $3.30 per share. On a non-GAAP basis, Xerox reported net income of $274 million, or $1.04 per diluted share, which beat Seeking Alpha's projections by 8 cents.

For full-year fiscal 2017, Xerox saw revenue of $10.3 billion, down 4.7 percent year over year but in line with the company's guidance. Announced adjusted earnings per share of $3.48 beat Xerox's guidance range of $3.28 to $3.44.

Looking ahead to 2018, Xerox projects a revenue decline of 2 percent to 4 percent on a constant-currency basis, with anticipated margin expansion in the range of 13 percent to 14 percent.

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