Xerox has reported total revenue of $4.2bn for fourth quarter of 2009, down 3% from the same quarter prior year, including a 4 point positive impact from currency.
Post-sale and financing revenue was flat and equipment sale revenue declined 11%, compared to the same period last year. Gross margin was 39.9% in the fourth quarter, an increase of two points from the the prior year.
The company generated $2.2bn of operating cash flow in 2009 and reduced the total debt by $1.1bn, excluding the $2bn of ACS-related notes issued last month. The company ended the year with a cash balance of $3.8bn.
For full-year 2009, revenue was down to $15.2bn from $17.6bn in 2008. The company posted net income of $485m that includes after-tax acquisition-related costs of $49m.
Ursula Burns, chief executive officer of Xerox, said: “We delivered a strong close to a difficult year, with solid operational results that reflect our disciplined approach to generating cash and reducing costs. During the fourth quarter, we saw signs of improvement in several areas including developing markets, and we remain quite confident in our strong global competitive position.
“We’re encouraged by improving trends in our post-sale revenue and continued strong signings for Xerox’s managed print services that help our clients reduce their document costs. The increasing demand for services supports the benefits of our acquisition of Affiliated Computer Services. We’re on track to close the acquisition next month.”
