Xerox announced second-quarter 2013 adjusted EPS of 27 cents, which excludes 4 cents related to the amortization of intangibles. GAAP EPS from continuing operations was 23 cents. Revenue was $5.4 billion, up 1%.
Revenue from the company's services business was up 5%, which includes 4% growth from business process outsourcing, 6% growth in document outsourcing and 13% growth from IT outsourcing. Services revenue represents 55% of Xerox's total revenue.
"Through the breadth of our outsourcing services and innovative technology, today's Xerox simplifies the way work gets done for organizations around the world," said Ursula Burns, Xerox chairman and chief executive officer. "Our clients are increasingly expanding their partnerships with us to improve the effectiveness of their operations. As a result, the total contract value of services signings was up 40% in the second quarter, our pipeline grew 10% and our BPO and ITO contract renewal rate was 95% - strong indicators of a sound strategy that fuels the success of our business for the long term."
Revenue from the company's document technology business was down 5% year over year and improved sequentially from the first quarter of this year. The company benefitted from the full rollout of its ConnectKey platform of printers and multifunction devices, expanded distribution through channel partners and increased demand for its digital production presses. During the quarter, Xerox signed and began installing its largest order ever for high-speed color presses, strengthening the company's market leadership. Document technology revenue represents 42% of total revenue.
Second-quarter operating margin of 9.4% was up 2.0 points sequentially, down 0.5 points year over year. The company generated $533 million in operating cash flow, and remains on track to generate $2.1 billion to $2.4 billion in full-year operating cash flow.
"Steady progress in growing revenue combined with a disciplined focus on operational improvements resulted in strong earnings and cash generation, positioning us well to deliver on our expectations for the full year," Burns added.