At its annual investor conference held at the New York Stock Exchange, Xerox Corporation detailed its long-term goals for the company, including an persistent acquisition schedule and increasing business with small and mid-sized companies.
Outlining her strategy for the year, Xerox Chairman and CEO Ursula Burns said the $22 billion company will focus on improving investor share through growth of its technology business, but also plans to its shift resources to its services business,
Burns said investing in acquisitions gives Xerox more scale in services and more “feet on the street” selling the company’s products in global markets. The company expects to invest about $300 million in acquisitions this year; the added capabilities and channel expansion are expected to deliver 1 to 2 points of revenue growth.
“Today, we provide the most diverse set of services in the industry, offer the broadest portfolio of document technology, have a growing global customer base, and continue to invest in world-class innovation that brings differentiated value to customers,” Burns said in a prepared statement. “The disciplined execution of our strategy is creating shareholder value through the strength of our solid annuity-based business, expanding earnings and strong cash generation.”
Company officials said revenue in the Xerox’s technology business is expected to grow 1 percent to 3 percent in 2012 with growth driven both from increased distribution and an increase in its document services.
The company expects finish 2011 with revenue growth of 6 percent to 8 percent (or 3 percent to 5 percent on a pro-forma basis) and GAAP earnings per share of 89 to 94 cents or $1.05 to $1.10 on an adjusted basis.
In 2012, Xerox forecasts revenue will grow in the range of 4 percent to 6 percent and to generate $2.6 to $2.9 billion in cash from operations.
On April 21, 2011, Xerox released its first quarter 2011 earnings. First-quarter revenue of nearly $5.5 billion was up 2 percent on a pro-forma basis; revenue from technology, representing the sale of document systems, supplies, technical service and financing of products, was flat.
Revenue from services was up 5 percent on a pro-forma basis, and represents the company’s business process, IT and document outsourcing offerings.
Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.Edited by
Jennifer Russell
