Xerox Corp (NYSE:XRX) announced disappointing earnings and revenue for the second quarter, as its document-technology segment didn’t performed well and currency fluctuations also hurt the results. The company has been engaged in transforming its business, as revenue generated from its key products has been declining.
Expanding into bill processing, cloud computing and document management has come at a price, with the company posting declining sales in the recent quarters. Xerox is also fighting the currency impact that has affected a number of other U.S companies as well.
The company announced that it earned $12 million, or a penny per share for the quarter, as compared to $266 million, or 22 cents per share in the same period one year ago. Adjusted profit was 22 cents per share.
Revenue for the quarter plummeted 7.1 percent to $4.59 billion, as compared to $4.94 billion one year ago. After excluding currency fluctuations, revenue slipped 3 percent. The part of revenue linked to Xerox’s services segment was $2.6 billion, representing a drop of 3 percent from last year. The document-technology business posted revenue of $1.9 billion, down 12 percent versus last year.
Xerox adjusted earnings came in line with its estimates, which were in the range of 21 cents to 23 cents. However, revenue for the quarter fell short of $4.64 billion estimated by analysts surveyed by Thomson Reuters.
Looking forward, the company is anticipating adjusted profit in the range of 22 cents per share to 24 cents per share for the third quarter, while for the full-year Xerox is expecting adjusted profit at the lower end of its forecast in between 95 cents per share to $1.01 per share.
Xerox repurchased $395 million in shares in the second quarter and reported on Friday that it is increasing its buyback cap for the full year to $1.3 billion.