Xerox has released its second quarter 2008 earnings and reported its total revenue of $4.5bn grew eight per cent since the first quarter. Post sale revenue, which represents more than 70 per cent of the company’s total revenue, increased 10 per cent.
Anne Mulcahy, CEO of Xerox says, “Our annuity-based global business led to steady revenue growth this quarter along with earnings and cash in line with our expectations.”
Mulcahy adds, “While the US economy creates challenges for our business with large enterprises, we’re seeing consistent positive performance in the small and mid-size business market, with strong results from our developing markets and Global Imaging operations.”
Xerox says its technology is accelerating the adoption of digital colour printing in businesses and commercial print enterprises. Revenue from colour grew 11 percent in the second quarter and represents 40 percent of Xerox’s total revenue.
The company’s also claims that its colour devices print the highest volume of pages in the industry – producing more than 25 billion pages in the first half of this year and more than 40 billion pages last year. In the second quarter the number of pages grew 28 per cent and now represents 16 per cent of total pages.
Total production revenue increased four per cent in the second quarter; however colour installs declined 12 per cent largely due to the timing of new product introduction at drupa, according to the company.
At the show, Xerox launched six production colour systems, with installs primarily beginning in the second half this year.
Meanwhile the company reported production of black and white systems declined eight per cent. Demand for the Xerox Nuvera EA and Xerox Nuvera 288 digital presses only partially offset declines from other high volume and light production systems.
Xerox concludes accelerated growth in its developing markets continued in the second quarter with revenue up 19 per cent, reflecting positive performance in all regions.