Xerox Corp says its new line of digital multi-function copiers (CI No 3145) should boost 1997 revenues, but a continuing strong dollar will hurt its final full year figures. The company, which is hoping to regain the kind of market dominance it lost in the 1970’s to the Japanese, saw first quarter profits up 14% at $270m on revenues up just 2.4% at $4.02bn. Apart from the effects of a stronger dollar, the company also blamed rising paper costs for a reduction of one percentage point in its revenues. The company said equipment sales had actually grown 10% in the quarter, and its biggest revenue increase came from its document outsourcing business, which grew by 41%. Overall US revenues grew by 6%, the company said, and international revenue was up 3%, before the impact of currency. However, it is to the new line of digital office machines that Xerox will look for its future. They offer modular photocopiers that can have printing, faxing and scanning capabilities added on. The company says its existing digital products accounted for 31% of turnover, and grew 18%, in spite of customer anticipation of the new products. These new machines, which hook into a company’s network and can be controlled from a personal computer, should take the company into new markets with cheaper cost of entry, and set it head to head with the likes of Hewlett-Packard Co (CI No 3,145). As part of the company’s on- going stock repurchase plan announced in February 1996,it had repurchased 8.2 million shares for $406m as of March 31.
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