30 Mar 2020

Xerox Reports Fourth-Quarter 09 Earnings

Xerox Logo

Xerox Corporation announced today fourth-quarter 2009 results that include GAAP earnings per share of 20 cents, adjusted earnings per share of 25 cents and $967 million in operating cash flow. The adjusted EPS excludes a previously disclosed charge for acquisition-related costs of 5 cents per share.

"We delivered a strong close to a difficult year, with solid operational results that reflect our disciplined approach to generating cash and reducing costs," said Ursula Burns, Xerox chief executive officer.

"During the fourth quarter, we saw signs of improvement in several areas including developing markets, and we remain quite confident in our strong global competitive position," she added. "However, we believe revenue will continue to be under pressure until there is a more sustainable economic recovery. To help offset this challenge, we remain focused on cost and expense management and sizing our business to better match current revenue levels."

The company reported fourth-quarter total revenue of $4.2 billion, down 3 percent from fourth-quarter 2008 including a 4 point benefit from currency. Equipment sale revenue declined 11 percent or 15 percent in constant currency. Post-sale and financing revenue was flat, or declined 4 percent in constant currency.

"We're encouraged by improving trends in our post-sale revenue and continued strong signings for Xerox's managed print services that help our clients reduce their document costs," said Burns. "The increasing demand for services supports the benefits of our acquisition of Affiliated Computer Services. We're on track to close the acquisition next month. Once completed, Xerox will be the world leader in business process and document management."

Gross margin was 39.9 percent in the fourth quarter, an increase of two points from the prior year. Selling, administrative and general expenses were up year over year by $23 million driven by currency, and SAG as a percent of revenue was 26.7 percent in the fourth quarter.

The company's full-year 2009 net income was $485 million, including after-tax acquisition-related costs of $49 million. Total revenue was $15.2 billion, down from $17.6 billion in 2008.

Xerox generated $2.2 billion of operating cash flow in 2009, exceeding its full-year expectations by $500 million. Total debt was reduced by $1.1 billion in 2009, excluding the $2 billion of ACS-related notes issued last month. The company ended the year with a cash balance of $3.8 billion.

During the first quarter of 2010, Xerox expects to take a pre-tax restructuring charge of approximately $250 million to continue implementing its cost-reduction activities on a global basis. Including ACS results, Xerox expects full-year 2010 GAAP earnings in the range of 36 to 46 cents per share. Adjusted EPS is expected to be 75 to 85 cents per share, which excludes restructuring, adjustments related to the ACS acquisition and other discrete items.

Graphic Arts Association educates members on selling in tough times


Sales expert Linda Bishop trains industry professionals to rethink their selling strategy in 2010.

Linda Bishop, President of Thought Transformation, Inc. today trained members of the Graphic Arts Association (GAA) in a session entitled "Selling in Tough Times."  As the association strives to be the leading resource for the printing and graphic communications industry in many areas including education, Bishop, a sales expert and consultant, focused today's presentation on why salespeople should rethink their selling strategy in 2010 so that it more clearly reflects the buyer's evolving mindset.

Assuming the payoff is high, this year will be an opportunity for buyers to spend on projects they put off last year.  Bishop's presentation focuses on the buyer's mindset and what salespeople can do this year to not only meet, but exceed their sales goals.  Her presentation points to the fact that buyer's will take extra care in evaluating tradeoffs and usually avoid top-of-the-line options if there is a reasonable substitute available at a lesser price.

"2009 was a tough year, but I believe 2010 will be better in terms of economic indicators," said Bishop.  "It's important for salespeople to realize that if they want to outsell the competition, they need to freshen their message and approach so it aligns with the buyer's mental outlook."

Bishop, a top-performer in printing sales for 17 years, founded Thought Transformation to train and consult companies and sales professionals on how to sell more and reach their full potential. She talks to marketers regularly, and draws upon first-hand knowledge when presenting and training executives and salespeople nationwide.

Margaret Baumhauer, President of the GAA said, "We want our members to thrive and that requires new selling skills. One of the many membership benefits we offer is training. We encouraged all our members to take advantage of Linda Bishop's expertise and learn new ways to grow sales."

Second FESPA Economy Survey shows 70% of printers innovating out of recession

Fespa 2010

FESPA’s second Economy Survey shows that the wide format printing community is moving on from the defensive survival tactics of 2009, using innovative and proactive sales and operational strategies to improve its business fortunes moving into 2010. 70.2% of respondents had used new products or processes in their operations to help them through the economic downturn, with 61.5% adding products to their portfolio, and 60.6% entering new markets.

The second Economy Survey was conducted by FESPA in the fourth quarter of 2009, in partnership with global research experts InfoTrends. It shows that the community’s outlook entering 2010 is broadly optimistic. More than a fifth of the respondents questioned at the end of 2009 thought the market was already recovering, and more than half expect recovery to previous levels by the end of 2010. Conversely, the Survey clearly summarizes the impact of the downturn in the wide format market. 93.1% of the 217 respondents agree that there has been an economic downturn in the industry, with 56.4% viewing 2009 as the worst year they have ever seen.

The mean level of business decline reported is 15%; however, the community is polarised, with 21.1% experiencing no loss in business activity and another 20.7% showing a decline of 25% or more. Manufacturers and resellers report the same average decline as print service providers (PSPs), underscoring the industry’s tightly connected supply chain.

The competitive landscape is in a state of flux, with 65.6% of those surveyed reporting that competitors had consolidated or gone out of business, 43.1% indicating that competitors are moving into other markets or offering new services, 33% experiencing new competition from other segments of the printing industry, and 22% seeing customers take some wide format work in house. Price pressure is also unrelenting, with 60.6% being price compared more frequently by new and existing customers. This may be reflected in the fact that 33% have themselves been aggressive with financing and payment terms, and 23% have more aggressively used rebates and price promotions. Strain on the supply chain is not restricted to price, with three quarters of respondents citing intensified pressure on production speeds or turnaround times.

FESPA’s Marcus Timson comments: “The FESPA Economy Survey, first undertaken in Spring 2009, sets out to measure the impact of the economic downturn on the wide format community, and to understand how PSPs are responding to the challenging trading conditions. These latest findings stress the need for printers to offer services that stand apart from commoditized print offerings. As our FESPA 2010 ‘Catch the Wave of Innovation’ campaign highlights, in tough economic times innovation can be a key competitive advantage and survival skill. Cutting prices to match the shop across town is not the answer. Printers will thrive when they offer services and solutions that help customers execute their marketing and retail campaigns more effectively.”

Along with service and market expansion and new sales strategies, the survey points to a gradual refocus on developing and retaining ‘human capital’. 22.9% of respondents have expanded their sales force, and talent retention would seem to be a priority in anticipation of an eventual upturn, with respondents preferring to cut staff hours or reduce pay rather than resorting to losing valued individuals.

While survival mode has diluted the industry’s environmental focus, with 59.6% stating that environmentally sustainable production was less important as a result of the economic downturn, a remarkable 40.4% of respondents reported that the economic backdrop has not made ‘planet-friendly’ printing any less important. A fifth of respondents use sustainability as a point of competitive differentiation, suggesting that there are opportunities to innovate in this area, which more PSPs may seize as the economic outlook continues to improve.

Tim Greene, Director, Wide Format & Jetting Technologies at InfoTrends comments: “The economic downturn has accelerated demand for higher service levels, so it’s important for PSPs to be flexible in responding to profitable opportunities. While the requirement for faster and more capable equipment has become a given in the wide format market, the research tells us that new markets and new application areas are what most respondents are looking for during this economic downturn.”

“This industry is essentially symbiotic,” concludes Greene. “Innovation from suppliers can help PSPs to develop proactive growth strategies and achieve success, which in turn leads to improved business for those suppliers. In this way, innovation can create a virtuous circle, making focused events such as FESPA 2010 a vital catalyst to future growth.”

For more information or a copy of the FESPA Economy Survey, please contact Marcus Timson at This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.fespa2010.com

Agfa announces successful closing of recent Gandi Innovations and Insight Agents acquisitions


Agfa Logo

Agfa has successfully finalised the recent acquisitions, announced in November 2009.

The Agfa Graphics business group acquired most of the assets of Gandi Innovations Holdings LLC's North American operations and the shares of its principal foreign subsidiaries. Gandi Innovations is a global leader in large format inkjet systems.

The Agfa HealthCare business group acquired Insight Agents GmbH., a European developer and producer of contrast media.


Xerox acquires Irish Business Systems

Xerox Logo

Deal with Ireland's largest digital imaging and printing solutions company increases Xerox's European distribution

Norwalk, Conn. - Xerox Corporation today announced the acquisition of Irish Business Systems (IBS), for approximately $31 million, expanding its reach into the small and mid-sized business (SMB) market in Ireland. IBS, with eight offices located throughout Ireland, is a managed print services provider and the largest independent supplier of digital imaging and printing solutions in Ireland.

By acquiring Irish Business Systems, Xerox will increase its sales force and gain access to more than 11,000 new customers in Ireland. Over the last two years, Xerox has expanded its distribution to the SMB market and managed print services delivery capability through acquisitions and broadened relationships with resellers and concessionaires in Europe.

IBS will sell the full range of Xerox office and light production products and supplies, including all Phaser, WorkCentre and the ColorQube 9200 Series of multifunction printers that print, copy, fax and scan.

"With this acquisition, Xerox will increase its presence in all parts of Ireland," said Douraid Zaghouani, senior vice president, European Channels Group, Xerox Europe. "IBS is a strong office technology and managed print services provider in Ireland. Their extensive distribution and customer support complement the benefits of Xerox's technology and solutions."

IBS will operate as a wholly owned subsidiary of Xerox, will maintain its name and keep its headquarters in Cork, Republic of Ireland. Its management team and employees will continue to operate as part of IBS. The acquisition, Xerox's 8th in the past two years, is an all-cash transaction.

Xerox currently employs over 700 people in the Republic of Ireland and Northern Ireland, in Dublin, Belfast and Dundalk, who are engaged in manufacturing, technical support, finance and treasury and sales and marketing activities.

FUJIFILM Europe GmbH appoints Ryuta Masui as senior vice-president, Graphic Systems Business Domain

Ryuta Masui

FUJIFILM Europe GmbH would today like to announce the following personnel changes to the management structure of the Graphic Systems Business Domain in Europe:

Ryuta Masui has been appointed as senior vice-president, Graphic Systems Business Domain, FUJIFILM Europe from 1st January 2010. He replaces the previous senior vice-president of the Graphic Systems Business Domain, Naohiro Fujitani, who has a new assignment as successor of Mr. Hiroaki Tada, who is the president of FUJIFILM Medical Systems USA at Stamford, CT.

This is the second assignment for Ryuta Masui within FUJIFILM Europe, having spent the last two years at FUJIFILM Sericol Ltd in Broadstairs, Kent. He has over 15 years experience within the Graphic Systems Business Domain, including a period spent at Fujifilm’s Headquarters in Tokyo as manager of international marketing.

Shigehiro Nakajima, president of FUJIFILM Europe GmbH, said: “I have very much appreciated Mr.Fujitani’s strong leadership, which has contributed to the enhancement of the Graphics Systems Business Domain and its current shape and organisation. I would therefore like to thank Mr. Fujitani for all his efforts and his kind cooperation, and wish him all the best for his new position in the USA. I believe that Mr.Masui and his staff will build on this platform and succeed in further reinforcing the European marketing organisation to meet the needs of a rapidly changing market place in spite of extremely difficult business conditions”.