Norwalk-based Xerox Corp. posted a profit in the first quarter that met its revised guidance, which the company slashed last month due to restructuring costs and declining technology spending.
Xerox also predicted its profit in the second quarter would be short of Wall Street estimates.
At 11 a.m., Xerox traded at $6.04, up 30 cents, or 5.2 percent.Â
The printer and copier maker said today that for the first quarter it earned $42 million, or 5 cents per share. This compares with a loss of $244 million, or 27 cents per share, a year ago. In that quarter, a hefty litigation charge led to the large loss.
The profit is a penny higher than what analysts polled by Thomson Reuters expected.
Revenue fell 18 percent to $3.55 billion from $4.34 billion. Analysts expected $3.54 billion, on average.
Xerox said that the economy has resulted in businesses delaying their purchasing decisions, and its distributors are keeping lower levels of inventory.
The company reported equipment sales fell 30 percent to $770 million. So-called “post sale revenue,” which includes the sale of ink and other supplies to companies that already own or lease Xerox machines, fell 14 percent to $2.78 billion.
Xerox Chief Executive Anne Mulcahy said in a statement that the rate at which enterprise technology spending fell sped up during the quarter, especially in developing markets and in Europe.
Xerox repeated previously announced intentions to save $550 million this year through a combination of cost and job cuts.
At the end of the quarter, the company had 55,600 employees. This is a drop of 1,500 from the end of 2008.
Xerox predicted second-quarter earnings of 10 cents to 12 cents per share; analysts expect 14 cents per share. For the full year, the company expects a profit of 50 cents to 55 cents per share, compared with analysts’ expectation for 58 cents per share. (AP)
