Xerox Holdings Corporation announced its second-quarter 2020 financial results.
The company reported $1.47 billion of revenue, a decrease of 35.3% year-over-year or 34.6% in constant currency, with an adjusted operating margin of 4.2%, down 820 basis points year-over-year.
Xerox had $34 million of operating cash flow from continuing operations, down $242 million year-over-year, and $15 million of free cash flow, down $245 million year-over-year. GAAP earnings per share (EPS) from continuing operations were $0.11 per share, down $0.49 year-over-year, and adjusted EPS of $0.15, down $0.64 year-over-year.
Among its highlights, Xerox stood up manufacturing operations for Xerox’s COVID-19 healthcare initiatives, such as making disposable, low-cost FDA-cleared ventilators and hospital-grade hand sanitizer—an area where the company is doubling production in response to demand.
“I am proud of our employees, who did what was necessary during this unprecedented disruption to support our business and clients, especially those delivering essential services. While the bulk of our markets were fully or partially shut down during the quarter, our team’s financial discipline enabled us to deliver positive earnings per share and cash flow while continuing to invest in key areas of growth,” said John Visentin, Xerox vice chairman and CEO. “No one can control or accurately predict what happens next. We have modeled numerous scenarios to ensure we have the flexibility no matter how the pandemic continues to impact global business.”
