Xerox releases Q2 2020 results

Xerox financials – pandemic havoc

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John Visentin, vice chairman and chief executive officer, Xerox
John Visentin, vice chairman and chief executive officer, Xerox

Xerox Holdings Corporation announced its second-quarter 2020 financial results on 28 July 2020. Xerox reports Q2 revenue for is US$ 1.47 billion, a decrease of 35.3% year-over-year or 34.6% in constant currency or US$ 800 million. Operating cash flow from continuing operations US$ 34 million, down US$ 242 million year-over-year, and free cash flow is down to US$ 15 million from US$ 245 million year-over-year.

The adjusted operating margin of 4.2% is down 820 basis points year-over-year. The GAAP earnings per share (EPS) from continuing operations are US$ 0.11 per share, down US$ 0.49 year-over-year. And the adjusted EPS of US$ 0.15, are down from US$ 0.64 year-over-year.

“I am proud of our employees who did what was necessary during this unprecedented disruption to support our business and clients, especially those delivering essential services. While the bulk of our markets were fully or partially shut down during the quarter, our team’s financial discipline enabled us to deliver positive earnings per share and cash flow while continuing to invest in key areas of growth,” said Xerox vice chairman and CEO John Visentin. “No one can control or accurately predict what happens next. We have modeled numerous scenarios to ensure we have flexibility no matter how the pandemic continues to impact global business.”

Notably, Xerox added several Fortune 500 and public sector clients such as HM Land Registry; Ministry of Citizens’ Services, BC Mail Plus; Veterans Affairs of Montana & Wyoming; and Allianz.

The company expanded its software portfolio with the launch of the Xerox Team Availability App to support flexible workplace needs. It introduced the next-generation AltaLink C8100/B8100 Series with ConnectKey apps and automation that speeds digital transformation and supports workers in and out of the office.

Of interest to digital printers in India, Xerox has announced the Adaptive CMYK+ Kit for the Xerox Versant, an enhancement that allows print providers to offer higher value, embellishment solutions without a major investment. This adds seven special colours to the standard CMYK, claimed to make the press capable of producing ‘a million colour hues and shades,’ by adding gold, silver, white, clear and fluorescent colours.

Xerox has focused its development efforts around five ‘innovation pillars’ – 3D, sensors and the Internet of Things, clean tech, digital packaging, and Artificial Intelligence. The group said that the Covid-19 situation had accelerated trends and needs in some critical supply chain areas. “AccorXerox’s liquid metal 3D printing solution can help strengthen supply chains with locally manufactured parts, and we remain on track to deliver our first product by year end,” Xerox stated.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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