Xerox delivered adjusted earnings per share of 22 cents in the first quarter of 2016.
“We delivered adjusted EPS in line with our guidance, revenue growth in both the Document Outsourcing and BPO businesses of our Services segment, and a strong renewal rate in Services,” said Ursula Burns, Xerox chairman and CEO. “Document Technology revenue declines remained in line with last quarter and continue to be pressured by weak developing markets economies. We have accelerated our cost reduction efforts across the company and expect to begin realizing the benefits in the second quarter.”
“I’m pleased with our progress on our strategic transformation and separation,” Burns added. “We put in place a robust program management structure, mapped our path to the separation, initiated leadership searches and began building the strategic, operational and financial foundation of each company.”
First quarter total revenue of $4.3 billion was down 4% or 3% in constant currency. The Services business, which represented 58% of total revenue, delivered $2.5 billion in revenue, representing an increase of 1% or 2% in constant currency. Services margin was 7.7%, up 0.1 percentage point. Revenue from the company’s Document Technology business was $1.6 billion, down 10% or 9% in constant currency. Document Technology margin was 10.2%, down 2.5 percentage points.
First-quarter operating margin of 7.2% was down 1.3% percentage points from the same quarter a year ago.