Xerox has had lackluster performance during the first quarter, according to the OEM’s first financial report after its separation into two companies in January.
According to the financial report on the first quarter, Xerox’s entry-level printing hardware sales have seen a huge dip. The sales revenue of equipment, entry products, including A4 devices and desktop printers, was US$88 million, dropping around 5.5% in comparison with the same period last year.
Not only hardware, its sales input of managed document services has also reported a YOY decline of 1.7% to US$714 million in Q1 of 2017.
In addition, sales revenue of office supplies, paper and other products have also dropped. Revenue from these prodcuts has decreased 5.9% to around US$434 million. The equipment sales was US$502 million, witnessing a 5.7% YOY fall across the entire product range of Xerox.
Overall, the company has earned a total of US$2.45 billion in the first quarter of 2017, seeing a year-over-year (YOY) drop of 4.3% in constant currency. The income of services, maintenance and rentals was US$1,442 million, recording a 5.7%. YOY decline.
On the other hand, the total costs and expenses of Xerox in the first quarter of 2017 was US$2,470 million, reducing around US$113 million in comparison with the same period in 2016. Xerox’s net income from continuing operations in Q1 of 2017 was US$22 million, decreasing US$47 million in comparison with the same period of 2016.
Despite the unflattering results, Jeff Jacobson, the chief executive officer of Xerox, is still hopeful, “I am pleased with our operational results in the first quarter. Revenue and cash flow were in-line with our expectations and, despite currency headwinds, operating margin expanded driven by productivity savings from our Strategic Transformation initiatives.”