Xerox CEO to Investors: Annuity Business, Industry Leadership, Solid

Today businesses call upon Xerox to help reduce their infrastructure costs by outsourcing the management of office technology and in-house print shops.  According to Gartner, Xerox holds the number-one market share for managed print services with 50 percent of the total U.S. market. 

Also core to Xerox’s document services offerings is its industry expertise in converting paper to digital and helping customers seamlessly track, edit, share and save documents in any form. Last week, Xerox was named the preferred global imaging partner for IBM Managed Business Process Services, a unit of IBM Global Technology Services. Under the worldwide agreement, Xerox will scan and image millions of documents for IBM and its customers. 

In addition, Xerox has announced strategic partnerships with IT services companies CSC and HCL Technologies, which will help drive revenue growth as clients seek more integration with their IT support and document management.

“In a world where 15.2 trillion pages are printed each year and $650 billion in productivity is lost each year due to the overload of information, Xerox’s expertise in simplifying the way work gets done helps customers save up to 30 percent on their document management costs,” said Ursula Burns, president of Xerox.  “During the first three quarters of 2008, our annuity revenue from document services has increased 6 percent.”

Affordable color printing systems that cut through the clutter with high-impact communications.

Xerox continues to benefit from making color printing affordable for businesses of any size.  Today, Xerox leads the industry in the number of color pages printed and holds the number-one revenue share position. Revenue from color represents more than 37 percent of Xerox’s total revenue through the third quarter of this year, and 16 percent of the total pages printed on Xerox technology are color pages.

With the broadest portfolio of color printings systems on the market, Xerox continues to create new business opportunities in production printing through color technology and systems such as the Xerox iGen4(TM) Press and Xerox 700 launched earlier this year.

More distribution channels bring Xerox’s technology and services to more businesses of any size, anywhere around the world.

Xerox sells to businesses small to large through the industry’s most extensive sales channels including approximately 14,000 dedicated sales representatives and a wide global network of resellers. 

By acquiring nine office technology dealers in the last two years and launching 18 products this year designed for small and mid-size businesses, Xerox has significantly increased install activity for its desktop printers and multifunction systems that print, copy, fax and scan. Through the third quarter of this year, installs of desktop devices are up 32 percent worldwide with 38 percent growth alone from the company’s developing markets.

“We’re not immune to economic issues and the unpredictability of these coming months will likely make for a challenging environment,” said Mulcahy.  “But we’re better positioned than most – and believe we have the flexibility to manage our business successfully through today’s challenges and for the long-term value of our shareholders.”

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