Xerox has delivered a positive message at its latest annual investor
conference, bucking the trend of companies falling short of market expectations
by at least meeting analyst predictions.
"Our value proposition is supported by the strength of our financial position
and the resiliency of our recurring revenue stream," said Anne Mulcahy, chairman
and chief executive at Xerox.
"We are managing our operations with a close eye on the bottom line. The
restructuring actions we're taking this quarter are expected to deliver $200m
[£130m] in savings next year, giving us greater flexibility to operate even more
efficiently and effectively in an uncertain economic environment."
Xerox is expecting to generate an operating profit in 2009 of $1.4bn to
$1.7bn (£911m to £1.1bn), and cash from operations of $1.7bn to $1.9bn (£1.1bn
to £1.23bn). The company put the significant ranges placed on these figures down
to the current economic uncertainty.
"About 85 per cent of our cash flow is generated from our annuity business
model. This annuity is driven by install activity of our technology and
multi-year contracts for document services," explained Mulcahy.
"Despite the current economy, the backlog of orders for our products, and a
14 per cent increase this year in signings for document services along with our
disciplined approach to cost management, gives us confidence in the overall
health of our business and our ability to navigate through these challenging
times."
In the current economic climate, Xerox's services are resonating with customers
Peter Romaine Xerox Global Services UK
Highlighting its continued growth, Xerox has recently announced the opening
of a northern European delivery centre to expand the company's business process
services (BPS) which handle the outsourcing of document management services from
a wide range of companies.
Xerox has had to move the BPS centre to larger premises to cope with demand
and the ongoing trend toward document digitisation and management.
"In the current economic climate, Xerox's services are resonating with
customers as they continually need to drive productivity and cost efficiency,"
said Peter Romaine, director and general manager of Xerox Global Services UK.
"Our global BPS centres allow us to scale very quickly. We are processing and
managing millions of documents every day for some of the world's biggest
companies."
The centres act as a document processing hub for global customers, with
scanning and imaging services that convert a wide range of documents into
searchable electronic content and manageable records for greater efficiency and
security.
One of the more unusual requests has been the scanning of a 27-metre drawing
of a well-known football manager's yacht.
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