Weak Eurozone performance hits Xerox

A weak Europe and a mixed performance outside of the services business had an impact on Xerox.

The print and document vendor reported second quarter 2012 results with net income down 3%percent year on year at $316m and total revenue at $5.5 billion down a single per cent.

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However revenue from the company’s services business was up 5 percent (7 percent in constant currency).

“With more than half our total revenue coming from services, accelerating growth in this segment of our business is a priority,” said Ursula Burns, Xerox chairman and chief executive officer.

“Our second-quarter results reflect solid progress with 8% growth from business process outsourcing 9% growth from IT outsourcing and 6% in document outsourcing, all at constant currency.”

The continued weak macro environment in Europe, resulted in a 4% decline in the company’s technology revenue.

“Strong revenue from services - our growth driver today and in the future - gives us financial flexibility that helps minimize the impact from our slowing technology business,” added Burns. \

“While ramping services for long-term growth, we’re focused on maintaining market leadership in our technology segment and benefiting from its cash-generating business model.”

Considering the economic uncertainty, Xerox now expects that revenue from its technology business will continue to be weak, and, as a result, revised its full-year earnings expectations.