Despite facing declines in revenue Xerox has reported increases in its operating margins and cash flow in the 2nd quarter, compared with the same period in 2016.
Xerox’s financial results, which were shared on August 1, 2017, reveal total revenue was $2.57 billion, down 8.1 percent or 6.4 percent in constant currency year-over-year. Meanwhile its adjusted operating margin was 13.3 percent, up 0.4 points year-over-year. Likewise, the operating cash flow was $343 million from continuing operations, up $84 million from the same period in 2016.
Financial statements for prior periods have been revised to reflect the equity income impact from the Fujifilm investigation of Fuji Xerox accounting practices.
“We are pleased with the strong operating margins and cash flow we delivered, as well as the continued progress on our Strategic Transformation initiatives,” said Jeff Jacobson, Xerox chief executive officer.
“This resulted in solid operating results despite revenue declines, which were driven by lower equipment sales as we transition to the recently launched ConnectKey portfolio.” Jacobson added, “The new product line-up has been met with enthusiasm by customers, partners and industry experts, fueling our confidence in improving revenue trends later this year and into next.”