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Xerox

Company

Content

Revenue and Net Profit billions $

Number of employees
2008 year
57000
300px

Assets

+ Xerox

Xerox Corporation (zirox) is a corporation, one of the world leaders in the office equipment market, a pioneer in the mass production of copiers. Produces and sells color and monochrome printers, MFPs, photo copiers, printing equipment, as well as related consulting services. The company has become a household name, and as a result, a copier is called a "xerox" in general.

The company is headquartered in Noruac, Connecticut (USA), but most of the employees continue to be in Rochester (New York), where the company was founded.

Performance indicators

2023: 3.1% decline in revenue to $6.89 billion

At the end of 2023, the American corporation Xerox Holdings received revenue of $6.89 billion. The fall compared to the previous year, when the figure was $7.11 billion, is approximately 3.1%. Such data are given in the financial report published on January 25, 2024.

It is noted that the annual indicators were influenced by the measures that the company took to structurally simplify the business. Xerox is focused on stabilizing and strengthening its core focus - print products. In addition, the development of digital and IT services continues. The report says that in 2023, printed and other decisions provided $6.57 billion in total cash receipts. The company believes that the demand for printing devices in 2024 will remain stable, despite the current macroeconomic situation.

From the reporting it follows that formally Xerox at the end of 2023 received a small net profit - $1 million. However, taking into account the payment of dividends on preferred shares, the company has a net loss of $13 million. In addition, a loss of 9 cents was recorded per share. For comparison: in 2022, the company suffered net losses of $322 million, losses were estimated at $2.15 per share.

In 2023, Xerox's research, development and engineering costs fell to $229 million. A year earlier, approximately $304 million was allocated for these purposes. Thus, the fall was at around 25%. Approximately $167 million was spent on restructuring and related expenses against $65 million in 2022. Commercial, administrative and general expenses amounted to $1.7 billion against $1.76 billion a year earlier. Depreciation costs for intangible assets remained practically unchanged, reaching $43 million ($42 million in 2022). The cost of services, maintenance and rent is $1.78 billion against $2 billion in 2022.[1]

Business in Russia and CIS countries

Xerox CIS

The Xerox Eurasia division is represented by the legal entity Xerox CIS. For Xerox Eurasia business development see Xerox CIS.

Partner Network

History

2024:15% staff cut

In early January 2024, Xerox Holdings announced a significant reduction in headcount. High costs are pushing an American IT company to reorganize its business, which in turn leads to layoffs.

According to Xerox, more than 3 thousand employees will fall under the cuts, which corresponds to 15% of the company's staff. Layoffs will take place in the first quarter of 2024. The company promised to provide comprehensive dismissed workers, including helping to find a new place of work. How much Xerox will cost personnel cleaning is not specified.

As noted in Xerox, the reorganization, which includes a decrease in the number of personnel, is aimed at improving the efficiency of the business model and diversifying revenue sources in favor of IT services.

In early January 2024, Joanne Collins Smee, head of the American division, and Tracey Koziol, chief product officer, left the company. The composition of the top mengement has been dramatically updated. Thus, a new Director of Operations (John Bruno), Chief Financial Officer (Xavier Heiss), Director of Transformation and Administration (Louis Pastor), Director of Development (Dina Pikion), Director of Sales and Partner Relations (Jacques-Eduard Geden), Director of Human Resources (Susan Morneau-Wade), Director of Strategy (Chris Fisher) and Director of Legal Affairs (Flor Colon) were appointed[2]

On January 3, 2024, when Xerox announced the layoffs, the company's stock fell 12% in value. Over the past three months to this period, the vendor's market capitalization rose by 2.7%, to $2.22 billion, which, according to The New York Times, was the result of a large-scale cost reduction program. Thanks to this program, Xerox has been able to save billions of dollars since 2018 .

2021

Revenue - $7.04 billion, loss - $455 million

In 2021, Xerox raised $7.04 billion against $7.02 billion in 2020. Sales practically did not grow due to the negative consequences of the COVID-19 coronavirus pandemic and problems in the supply channels of equipment produced by the company. The difficult epidemiological situation in different countries leads to the fact that companies are increasingly practicing remote work of employees, and this negatively affects the sales of office equipment.

At the end of 2021, sales of Xerox products amounted to $2.58 billion, increasing from $2.45 billion in 2020. The direction of services, including support for equipment and its rental, showed a slight decrease in revenues - from $4.35 billion to $4.24 billion. The financial division registered a decrease in revenue from $226 million to $221 million.

Sales of new equipment in 2021 brought Xerox 22% of revenue in the printing equipment market against 26% a year earlier. Among such devices, the highest demand (56% in 2021) is used by devices of average performance.

The share of the Americas in the company's turnover for the year decreased from 63% to 62%. At the end of 2021, EMEA accounted for 36% of sales (in 2020 - 35%). The share of other regions combined remained at the level of 2%.

Speaking about the factors that have a positive impact on Xerox's financial performance, the company indicated the following:

  • establishing CareAR to develop software products;
  • Scale IT services and robotic process automation (RPA) in the SMB market
  • Development of XFS Financial Services as a global payment solutions business
  • growing distribution of digital solutions to existing Xerox customers.

Xerox ended 2021 with a loss of $455 million, while a year earlier the company's net profit was $192 million. [3]

Purchase of IT consulting company Competitive Computing

In early October 2021, Xerox announced the purchase of Competitive Computing (C2). C2 serves customers throughout New England and the United States. This acquisition continues Xerox's commitment to expanding its IT services business. Read more here.

Creating CareAR to develop AR technologies for business

On September 2, 2021, Xerox unveiled CareAR, a new subsidiary that is developing what the company itself calls a service experience management platform combining communications and augmented reality in its offering. Read more here.

Purchase of Document Systems Digital Document Solutions Developer

In early June 2021, Xerox acquired leading document solution provider Document Systems. The financial terms of the transaction were not disclosed. Read more here.

Appointment of Jacques-Edouard Guédin as EMEA Executive Vice President

On February 5, 2021, Xerox, a workspace technology vendor, announced the appointment of Jacques-Eduard Gedin as Executive Vice President and President of Xerox in EMEA (Europe, Middle East and Africa). Read more here.

Spin off the software business into a new company

At the end of January 2021, Xerox announced a large-scale restructuring, in which the company separates businesses in the field of software (Xerox Print Management Software & Services), finance and innovation. The American vendor is carrying out reform amid the problems it faced during the COVID-19 coronavirus pandemic, when many offices were closed, which led to a collapse in demand for office equipment. Read more here.

Creation of a $250 million venture capital fund to invest in IT startups

At the end of January 2021, Xerox announced the creation of a $250 million corporate venture capital fund. Funds from Xerox Venture Capital will be directed to startups in the initial and middle stages of development. Read more here.

2020

Revenue reduction by 22.5%, to $7.02 billion

At the end of 2020, Xerox registered revenue of $7.02 billion, which is 22.5% less than a year earlier. Sales of products in comparison with these segments of time decreased from $3.23 billion to $2.45 billion. Various services, as well as support and equipment rental services, added a little more than $1.1 billion to the turnover of the American vendor. In 2019, this figure was measured at $1.47 billion. In the financial direction of Xerox, revenues fell from $60 million to $56 million.

Approximately 63% of Xerox's revenue came from the countries of the Americas, the EMEA region - 35% of the turnover. In both regions, the company's sales declined.

Xerox ended 2020 with a net profit of $192 million, significantly less than a year ago profit of $1.36 billion. This decline was due to the payment of taxes from assets sold and closed.

On the day the financial statements were published, Xerox shares rose 1.54% to the close of the exchange and 0.14% in electronic trading. The value of the securities rose thanks to the fact that the company's sales exceeded Wall Street expectations.

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Despite the closure of offices around the world and the widespread impact of the [COVID-19] virus - approx. TAdviser] on the economy, Xerox regained the top spot in the overall market share of [printing] equipment sales revenue in our territory, took first place in both the middle and production segments, and also strengthened its position in the entry-level product category, "said Xerox CEO John Vicentin.
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He also noted that from 2018 to the end of 2020, Xerox managed to save $1.4 billion as part of the implementation of the plan for effective business. The company also returned 112% of its free cash flow in 2020, despite the reduction in revenue and the closure of offices in almost every country due to the pandemic.[4]

Hackers stole 100 GB of personal data from Xerox, blocked computers and demand a ransom

In early July 2020, it became known that members of the Maze hacker group hacked into Xerox IT systems, threaten to put personal data in the public domain and demand a ransom from the company.

Ransomware claims to have stolen more than 100GB of files from Xerox. Although the company refuses to comment on the situation, Maze hackers have published a series of 10 screenshots that confirm that the hosts on the "ex.xerox.net" run by Xerox have been hacked. The amount of the required ransom is not reported.

Xerox files stolen by Maze ransomware operators
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After payment, we will delete your data from our disks and provide you with a decryptor file that will allow you to restore the files, the ransom message sent to Xerox said.
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Hackers hacked into Xerox's Europe branch, possibly in London, gained access to the company's servers and stole a number of financial documents and information from a database of users, SecurityWeek said. Ransomware began encrypting files on Xerox computers on June 24 and threatened to publish information about the hack if Xerox did not contact them within three days.

The available messages provide practically no data on the consequences of a cyber attack, only evidence of hacking and encryption of the company's systems, BleepingComputer reports. However, Maze ransomware viruses have repeatedly hit companies in the IT industry, although this group of hackers itself appeared just a year ago. So, in April 2020, the Cognizant network was infected.

The company is expected to lose $50 million to $70 million in the second quarter of 2020 due to the Maze attack . It is also known that in early June, Maze hackers published two ZIP files containing Conduent work documents. The company said the attack took place on May 29, 2020 and lasted about nine hours, after which the servers returned to normal operation.

[5]

Xerox began mass production of ventilators

In early April 2020, Xerox and Vortran Medical Technology announced a collaboration in which the companies plan to launch the production of Vortran GO2Vent emergency breathing support devices and the corresponding APM-Plus airway pressure monitor. Read more here.

Xerox abandons hostile takeover of HP due to coronavirus situation

Xerox, a manufacturer of copiers, scanners and printers, has announced that it does not consider it appropriate to continue its takeover of Hewlett-Packard due to the difficult situation in the markets caused by the coronavirus pandemic. Information about this appeared on April 1, 2020. As the company said in its press release, it is withdrawing its offer to acquire HP.

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Although we are saddened by this step, the health, safety and well-being of our employees, customers, partners and other shareholders are in the first place for us, and our broader response in a pandemic is above all other considerations, Xerox said.
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Xerox announced its intention to buy HP in November 2019 and made an offer of $33.5 billion, but HP management immediately rejected it, noting that it "significantly underestimates" the value of their assets. In February 2020, Xerox raised the offer from $22 to $24 per HP share, which is why the transaction amount increased to $35 billion. On March 2, Xerox already intended to begin the hostile takeover procedure, that is, to start repurchasing shares directly from investors.[6]

HP Inc. refused to sell Xerox for $35 billion and explained why

On March 5, 2020, HP Inc. officially rejected Xerox's offer to buy a printer and computer manufacturer for $35 billion. HP Inc. believes that this amount is too small for a company of this size. Read more here.

Appointment of Xavier Heiss as EMEA Executive Vice President and President

On February 26, 2020, Xerox announced the appointment of Xavier Heiss to the position of Executive Vice President and President of Xerox in the EMEA region (Europe, Middle East and Africa). Heiss took office on February 29, 2020. Read more here.

Xerox hosts HP shareholder dinner

On February 17, 2020, it became known that Xerox sent invitations to HP shareholders for dinner at a restaurant as a last-ditch attempt to enlist support for a merger deal.

According to a Reuters source, the Xerox dinner will take place on February 18 at a restaurant in the Riverside area of ​ ​ Greenwich (Connecticut, USA). Xerox CEO John Vicentin is expected to attend the event . Another knowledgeable interlocutor of the news agency claims that after this meeting others may take place in the coming days.

It became known that Xerox sent invitations to HP shareholders for dinner in a restaurant as a last-ditch attempt to enlist support for a merger deal

The publication says that if there are enough among HP shareholders who will support HP CEO Enrique Lores, then this can give the company the courage to try to remain independent or seek a better deal.

The last Xerox offer by February 17, 2020 involves the purchase of HP for $35 billion ($24 per share). The computer and printer maker has no intention of responding to the proposal until Feb. 24, when the company will release a financial statement and talk about alternative methods to raise its shareholder value.

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After a period of silence, HP will share more information about its plan to provide sustainable long-term benefits to its shareholders, including through the implementation of a multi-year strategic and financial plan and the disclosure of a strong balance sheet, HP said.
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Analysts polled by Barron's are confident that HP will announce a buyback of its own shares on February 24 at a higher price than Xerox offers. According to experts, this will allow both to comply with the interests of shareholders and to protect assets from a hostile takeover.

Wells Fargo believes that HP can agree to a merger with a deal worth at least $25 per share, and Morgan Stanley calls an even higher figure - $26 per share.[7]

Xerox offered $35 billion for the purchase of HP

On February 10, 2020, Xerox Holdings raised its offer to buy HP Inc. from $22 to $24 per share of the computer and printer manufacturer. Thus, Xerox is ready to spend $35 billion on the deal instead of the previous $33.5 billion, taking into account HP's debts. Read more here.

2019

Xerox agreed with banks to provide $24 billion to buy HP

In early January 2020, Xerox announced that the company had agreed with three banks to provide $24 billion to take over HP. However, the manufacturer of computers and printing equipment still does not want to make a deal.

The desire to finance the merger of Xerox and HP was expressed by Citigroup, Mizuho Financial Group and Bank of America. This is stated in a letter that Xerox CEO and Vice Chairman John Vicentin sent to HP.

As part of the proposed deal, Xerox brought in Simpson Thacher & Bartlett LLP as a legal adviser and Citi as a financial adviser. Cravath, Swaine & Moore LLP intends to advise banks on the provision of funding.[8]

Xerox managed to find funds to buy HP

HP responded to Xerox's letter with a message written by HP CEO Enrique Lores and Chairman Chip Berg.

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Your January 6, 2020 letter regarding funding does not address the main issue - Xerox's proposal substantially underestimates HP - and is non-negotiable... We reiterate that HP's board of directors is focused on providing sustainable benefits to the company's investors over the long term, the letter to Xerox states.
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HP expresses "serious concerns" about Xerox's financial performance in the near future, as well as the viability of Xerox's business in the long term, which could significantly affect Xerox's value in the future.

On December 25, HP Inc. provided shareholders with the opportunity to nominate members to the company's board of directors within a month. Evercore analyst Amit Daryanani sees a "high probability" that Xerox or activist investor Carl Aikan will offer a full set of candidates in an attempt to strike a deal to merge Xerox and HP.

HP shares fell 0.38% in additional trading in New York on January 8, 2020, and Xerox securities rose 0.03%.

Xerox threatens to buy HP by force

On November 21, 2019, Xerox issued an ultimatum to HP Inc. as part of a proposed takeover deal for the PC and printer manufacturer. Xerox is threatening to turn its proposal into "hostile" unless HP agrees to a "friendly merger." Read more here.

HP refused to sell Xerox for $33.5 billion

On November 17, 2019, HP Inc. officially announced its refusal to enter into a merger deal with Xerox on the latter's proposed terms. HP CEO Enrique Lores and Chairman of the Board of Directors Chip Bergh sent a letter to Xerox CEO John Visentin. Read more here.

Xerox sells stake in joint venture with Fujifilm for $2.3 billion

On November 5, 2019, it was announced that Fujifilm would buy out a stake in a joint venture (JV) Fuji Xerox from Xerox, which specializes in the production of copying equipment and the provision of document management services. Read more here.

2018

Revenue decline 4.2% to $9.83 billion

In 2018, Xerox's revenue amounted to $9.8 billion, down 4.2% from the previous year. If you do not make an adjustment for changes in exchange rates, then there was a 4.9 percent decline.

On the sale of printing equipment, the company earned about $2.2 billion or about 25% of revenue for the year (the same figure took place a year earlier), and the share of document management services reached 35% against 33% in 2017. Sales of printers and other equipment decreased by 4.1% on an annualized basis.

Xerox financials

In the Xerox equipment division, mid-range devices are best sold: their share in equipment sales reached 66% in 2018, while in 2017 the indicator was measured at 61%. Budget and highest performance models brought the company 11% and 22% of revenue from equipment sales, respectively.

Judging by the financial statements, the demand for Xerox equipment of all price categories is falling. In the upper segment, the decline is due to weak sales of iGen and Versant systems, as well as monochrome printing devices, which, as the manufacturer notes, is in line with market trends. At the same time, Xerox noted strong demand for Iridesse digital printing machines and growing sales of updated industrial printing systems.

Xerox explained the decline in the mid-range equipment segment with poor results in the corporate channel in the United States.

Most of Xerox's revenue still comes from North America. Moreover, in 2018, the share of this region in the total turnover of the American vendor increased to 60% from 58% in 2017.

Xerox's net profit in 2018 was $374 million against $204 million a year earlier.

After the release of financial results, Xerox shares rose 11.4%, as the company's revenues and forecast were above market expectations.[9]

Lawsuit from Fujifilm for abandoning takeover deal

On June 18, 2018, Fujifilm filed a lawsuit in US federal court for Xerox's failure to comply with the terms of the contract in order to prevent the latter from abandoning the previously proposed acquisition transaction worth $6.1 billion. In its 36-page statement of claim, Fujifilm accused Xerox of lacking reason to break an agreement to sell control of a US company to Japan's Fuji. Read more here.

Termination of the merger with Fujifilm

On May 14, 2018, Xerox officially announced its refusal to enter into a merger deal with Fujifilm Holdings. The sale of the American company fell under pressure from the largest shareholders.

Over the course of several weeks, the company repeatedly approached Fujifilm to discuss new terms of the merger, according to Xerox, but the Japanese company did not confirm its readiness to do so within a reasonable time.

Xerox refused to be sold to Fujifilm
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Given the circumstances that have arisen, the deal cannot be concluded, especially due to the injunction and lack of support from shareholders on current terms, as well as due to unresolved accounting problems at Fuji Xerox, Xerox's board of directors said in a statement.
File:Aquote2.png

Fujifilm announced its intentions to "challenge Xerox's unilateral decision" and consider all kinds of options, including filing a claim for damages.

The initial arrangements suggested that Xerox would become part of a joint venture with Fujifilm in Asia - Fuji Xerox. Xerox shareholders were to retain 49.9% in the joint venture. The value of the transaction was estimated at $6.1 billion.

Xerox's biggest shareholders, businessman Carl Icahn among them, slammed the deal, saying the company was worth much more and sued.

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We are very pleased that Xerox has finally closed the unreasonable scheme to transfer control of the company to Fujifilm. Thanks to those behind us, the new shareholder-oriented management has a new beginning for Xerox, "Icahn said.
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Xerox shares, whose value in the late 90s exceeded $150, traded at around $35 in May 2018 amid a continuing decline in revenue and profit for the American office equipment manufacturer. Fujifilm fell 7% after announcing its purchase of Xerox as investors feared the Japanese dig would be forced to meet the conditions of activist investors.[10]

John Vicentin is the new CEO of Xerox

In early May 2018, document management systems manufacturer Xerox announced the appointment of John Vicentin as the company's new CEO after the resignation of several top managers. The layoffs stem from pressure from the biggest shareholders and portend disruption to the deal to merge Xerox with Fujifilm. Read more here.

Fujifilm gains control of Xerox

On January 31, 2018, the Japanese manufacturer of photographic equipment Fujifilm Holdings announced the acquisition of control over Xerox and the merger of the American company with a joint venture (JV) - Fuji Xerox. The complex and large-scale restructuring is being carried out in order to reduce costs, the press release said.

Under the terms of the agreement, Fuji Xerox formally becomes a 100 percent Xerox subsidiary. At the same time, the companies are merged into one, in which Fujifilm receives a 50.1% stake.

Fujifilm gains control of Xerox and renames company

Xerox shareholders are entitled to a total of $2.5 billion in special dividends. They will also remain the owners of 49.9% of the joint venture. According to the Financial Times, the Japanese company will pay its longtime American partner approximately $8 billion in cash and shares.

Xerox itself will change its name to Fuji Xerox, the combined company will remain on the New York Stock Exchange. The head of Fuji Xerox will be Xerox CEO Jeff Jacobson.

The deal is scheduled to close in the second half of 2018. It has already been approved by the boards of directors of both companies.

Meanwhile, it announced the reduction of about 10 thousand jobs in the joint venture of Fujifilm and Xerox, that is, the staff of Fuji Xerox will decrease by about 20%. 49 billion yen ($450.1 million) is allocated for these purposes, which will be taken into account in the report for the fiscal year ended March 31, 2018 calendar.

Companies expect to reduce annual costs by $1.7 billion by 2022 due to restructuring. By 2020, savings should be measured at $1.2 billion.

It is assumed that the updated Fuji Xerox, which will include Xerox, will become the world's largest manufacturer of document management solutions in terms of revenue. The Fuji Xerox and Xerox brands will remain on the market and will be used depending on the regions.[11]

By the end of January 2018, Xerox's market capitalization is about $8.35 billion, with its net debt exceeding $4 billion. Fujifilm capitalization - $22 billion.

2017

Profit drop triples

Xerox ended 2017 with revenue of $10.3 billion, which is 4.7% less than in 2016 and fits into the company's own forecast. Profits have tripled.

Xerox's net income from continuing operations decreased from $616 million to $195 million, due to large expenses associated with the updated tax legislation in the United States. The manufacturer of printing equipment and other American companies with large international business, after a reduction in corporate tax in the United States, began to return profits to their homeland, which translates into large one-time costs (Xerox had $400 million). In the future, the reduction in the tax burden should have a positive effect on the income of American companies, including Xerox.

Xerox annual revenue falls 5%

In 2017, Xerox split into two companies: Xerox itself focused on the production of printers and copiers, and Conduent began outsourcing business processes (except for outsourcing document management). Thanks to this "strategic transformation," Xerox's expenses in 2017 decreased by $680 million, which is more than the expected $600 million.

From the Xerox report, it also follows that about a quarter of the company's revenue for 2017 (about $2.3 billion against $2.4 billion in 2016) accounted for the sale of equipment. Document management services provided a third of the turnover.

About 60% of the annual sales of Xerox printing devices took up mid-range equipment. Budget models and high-performance equipment brought the company 15% and 23% of revenue from equipment sales, respectively.

The largest market for Xerox remains North America, where annual revenues amounted to 58% of the total.[12]

The annual financial statements released will be Xerox's latest. At the beginning of 2018, the company agreed to merge with Fujifilm, as a result of which Xerox, which traces its history since 1906, will lose its independence.

Separation of Xerox and Conduent completed

In January 2017, it announced the separation of the group outsourcing business processes (BPO) Xerox (Xerox Global Services) - which was renamed Conduent - from the backbone business of document technology, which generates annual revenue of $11 billion, essentially canceled the purchase of Affiliated Computer Services (ACS) for $5.6 billion, made in February 2010. See more -. Conduent

2016

First Post-Split Financial Report

In late January 2017, Xerox released its first financial report since the split. The company, which has focused on printing equipment, has seen both revenue and profit fall.

At the beginning of 2017, Xerox officially divided into two public companies: one of them, under the name Xerox, went into the business of producing printers and copying equipment, and the other, Conduent, began outsourcing business processes (except for outsourcing document management).

Xerox copier

In 2016, the updated Xerox gained $10.8 billion, which is 6% less than a year earlier, which is to blame for the decline in sales of printing devices. Net profit decreased by 27%, amounting to $616 million. These results do not take into account Conduent's business, its indicators will be included in the Xerox annual report in the column "discontinued operations," notes MarketWatch.

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After the completed Conduent branch, we drew all our attention to the implementation of a strategy that includes growing areas of the market. As the strategy delivers results, revenue dynamics will improve over time. At the same time, we are increasing our margins and continuing to generate strong cash flows, "said Xerox CEO Jeff Jacobson.
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Xerox CFO Bill Osbourne said the company intends to make a number of acquisitions. In particular, Xerox is eyeing software developers and workload automation technologies.

According to Osborne, Xerox has a budget of $100 million for the purchase in 2017 of resellers working with various manufacturers to turn them into Xerox's exclusive partners. The value of such dealer companies, as a rule, corresponds to their annual revenue, and Xerox has always received good returns from such acquisitions, the financial director noted.[13]

Largest shareholder demands ban on split of Xerox

On October 13, 2016, it became known that the largest shareholder of Xerox went to court in an attempt to block the division of the company, which, according to the investor, incorrectly distributes his investments.

The lawsuit in the District Court in Dallas was filed by billionaire Darwin Deason, who founded the outsourcing company Affiliated Computer Services (ACS), which Xerox acquired in 2010 for $6.4 billion. As a result of that transaction, the businessman received about $300 million in the form of preferred convertible shares of Xerox. Read more here.

Jeff Jacobson is the new CEO of Xerox

On June 23, 2016, Xerox announced the names of the CEOs of two companies that would operate in the market instead of one American copier manufacturer.

It is planned that by the end of 2016 Xerox will be divided into two companies: one will retain the name of the parent vendor and will be engaged in the production of copiers and printers; the other will be named Conduent and focus on outsourcing services.

Xerox Technology Division President Jeff Jacobson to lead Xerox after split

According to The Wall Street Journal (WSJ), Ursula Burns' successor as head of Xerox will be 56-year-old Jeff Jacobson, who heads the Xerox Technology printing and software development division. Ursula Burns will remain at Xerox as chairman of the board.

Jeff Jacobson will head a company with a staff of 39 thousand employees and annual revenue of about $11 billion. He joined Xerox in 2012, becoming head of graphics communications.

Jacobson was a favorite among candidates to head Xerox's printing business, according to the WSJ. As the head of Xerox Technology, he provided the division with a strong cash flow, but it was not easy for the top manager to contain the long-term drop in income amid the global trend of paper abandonment in favor of digital technologies, the newspaper notes.

Conduent will be led by Ashok Vemuri, 48, the former head of iGate's IT outsourcer. Conduent will employ about 96 thousand people, its annual turnover is estimated at $7 billion.

Xerox has decided on the CEOs of the new companies that will be created on its basis, but has not yet formed teams of top managers. In particular, no CFOs were identified by 23 June 2016. In addition, it is not known where the headquarters of these companies will be located. The separation of Xerox is scheduled to be completed by the end of 2016.

Plan to split into two companies

On January 29, 2016, Xerox announced a restructuring, in which the vendor's business will be divided into two companies. One of them will be engaged in office equipment, the other - services.

As follows from the Xerox message, by the end of 2016, public companies will appear on the market, which are called the manufacturer Business Process Outsourcing and Document Technology. The first of them will be the Xerox business related to outsourcing business processes and other services. The company's revenue from this activity in 2015 amounted to $7 billion, about 104 thousand people were engaged in it.

Document Technology will specialize in the production and promotion of office equipment, including scanners, printers and copiers. In addition, this company will focus on providing document management services. The revenue of the Xerox business, which will be headed by Document Technology, at the end of 2015 reached $11 billion, and the number of personnel involved in it was measured at 40 thousand employees.

Xerox will be divided into two companies, one of which will deal with office equipment, the other with services

According to Bloomberg, referring to the statement of Xerox, the company's management decided that the businesses in the field of document management and services overlap slightly and require different capital structures and operating models. By separating Xerox, it is planned to simplify the decision-making process about which areas to focus on and where to invest.[14]

The crushing of Xerox was part of the company's plan to cut costs by $2.4 billion in three years. The restructuring does not involve any tax burden on Xerox shareholders.

The split of Xerox was insisted on by billionaire Karl Icahn, who is known for acquiring shares in large companies and then making demands for their reorganization, and thus increasing his influence in corporations. As of the end of January 2016, Ikan owns more than 8% of Xerox's securities.

Under the terms of the agreement, Karl Icahn will be able to independently select three members of the board of directors of Business Process Outsourcing. Six more directors will be appointed by Xerox's decision. Two of the Xerox board members will be able to move to the board of directors of the newly minted service firm.

The leadership of future companies based on Xerox divisions will be determined later in 2016. Carl Icahn will select a person to oversee and advise the search committee for the CEO of Business Process Outsourcing.

The first rumors about the division of the company

Xerox Corporation will be divided into two independent public companies: one will be engaged in office equipment, the other in the provision of business services. This was reported by the Wall Street Journal with reference to an informed source. The source informed that Xerox plans to officially announce the division along with the publication of financial results for 2015, January 29, 2016. The company is expected to report its fourth consecutive year with a decline in[15] revenue and earnings[16].

The separation will be carried out after assessing other prospects for the further existence of the Xerox business, which was announced in October 2015 by executive director Ursula Burns. The company seriously thought about the changes after it ended the quarter with a loss for the first time since 2010. The problem also lies in the undervaluation of Xerox, whose market share is only half of its annual revenue.

2015

Profit drop by half

In late January 2016, Xerox submitted a financial statement. It reports a twofold drop in the profit of an American company due to unfavorable fluctuations in exchange rates and a decline in revenue in the market for document technology.

At the end of 2015, Xerox's net profit amounted to $488 million against $1 billion a year earlier. Revenue decreased by 8%, to $18 billion. The company receives more than half of its revenues from the service business.

Xerox year-end: 50% profit drop
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In a challenging environment, our service segment increased margins and revenue at double-digit rates. At the same time, Document Technology remains the leader in equipment sales for the 24th quarter in a row and maintains high profitability thanks to our attention to financial performance and productivity, "said Ursula Burns, Chairman of the Board of Directors and CEO of Xerox.
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In 2016, Xerox predicts earnings in the range of $1.1 to $1.2 per share, while analysts polled by Thomson Reuters expect revenue at 99 cents per share.

Along with the publication of the financial statements, Xerox announced a strategic reform program that aims to save a total of $2.4 billion over three years. The program involves splitting Xerox into two companies.

In addition, the vendor announced an 11% increase in quarterly dividend payments to 7.75 cents per ordinary share. Dividends will be paid at the end of April 2016. Xerox intends to continue returning capital to shareholders. More than half of the company's free cash flow is expected to go toward share buybacks and dividends.[17]

Carl Icahn buys 7.13% stake in Xerox to reorganize it

In November 2015, it became known about the purchase of a large stake in Xerox securities by activist-investor Carl Icahn. Having become one of the company's shareholders, the businessman intends to get on its board of directors and stimulate the reorganization of the manufacturer of printing and copying equipment with more than 100 years of history.

According to The Wall Street Journal, citing documents sent by Karl Icahn to the American financial regulator on November 23, 2015, the entrepreneur acquired a 7.13 percent stake in Xerox and became the second largest shareholder in the company after the Vanguard Group, which owns 8.4% of the securities. In the first 11 months of 2015, Xerox fell 22%, but Icahn is confident that they are undervalued.

Carl Icahn is known for buying shares in large IT companies and then actively encouraging their executives to return capital to investors and carry out restructuring in order to increase the shareholder value of the business

The billionaire intends to talk with Xerox management and the board about "improving operational results and applying strategic alternatives, as well as the possibility of representation on the board of directors."

Carl Icahn describes himself as an activist investor and shareholder advocate. He is known for buying shares in large IT companies, and then actively encouraging their leaders to return capital to investors and carry out restructuring in order to increase the shareholder value of the business. In particular, Icahn bought stakes in Apple, eBay, Netflix and HP. The latter, not without the help of an American businessman, split into two companies in November 2015.

In October 2015, Xerox announced the beginning of a study of structural options for its products and services, as well as for capital allocation. The general director Ursula Burns immediately said there were no plans to sell the company, but merger and acquisition opportunities would be considered. Whether Carl Icahn influenced the management's decision on a possible reorganization is difficult to say, since there is no exact information when the billionaire bought Xerox shares.[18]

Development of a self-destructing chip

On September 14, 2015, the Xerox research laboratory presented an innovative computer chip that can be independently destroyed on command. Such a development may be in demand in products that store confidential data, writes ComputerWorld.

The new chip, developed at the Xerox PARC research center, is based on the Gorilla Glass used in many smartphones. This hardened panel serves as a substrate with a small resistor that quickly heats up when electricity is supplied. Heat is transferred to the processor glass, and it quickly (in about 10 seconds) breaks down into thousands of small fragments without the possibility of recovery.

Xerox Research Laboratory unveils innovative computer chip that can be independently destroyed on command

During the demonstration of the prototype at the Wait, What exhibition, organized by the Defense Advanced Projects Agency under the Department of Defense USA (DARPA) in St. Louis, the team to self-destruct the chip was carried out using a photocell to which laser lighting was supplied. The developers say that other ways of transmitting the command are possible, including through a radio signal or some kind of mechanical switch.

Such a chip should find application in tasks related to working with top-secret or very important corporate information that should not fall into the wrong hands. In particular, self-isolating chips can be used in security and encryption systems.

Xerox PARC did not even name the estimated timing of this development on the commercial market. Senior researcher at the laboratory Gregory Whiting assured that this chip can be used with already released electronic devices.

In 2014, DARPA announced a similar concept project created in partnership with IBM. Then it was reported that the American IT giant received almost $3.5 million to develop this technology.[19]

2014

Selling an IT outsourcing business for $1 billion

On December 18, 2014, Xerox announced the sale of a business related to the provision of IT outsourcing services. For this asset, the American company will earn more than $1 billion.[20]

Xerox Information Technology Outsourcing (ITO) is buying French system integrator Atos. The transaction value is $1.05 billion. In addition, Xerox will be able to receive an additional bonus of up to $50 million, depending on the state of the business at the time of its official transfer to Atos ownership. It is planned to close the deal after the decisions of the regulators - approximately in the first half of 2015.

As of the end of 2014, Xerox ITO employs approximately 9,800 employees in 45 countries. Approximately half of the employees of this number live in the United States.

IT outsourcing is Xerox's second largest business with revenue of $376 million in the third quarter of 2014. According to the results of 2014, the company predicts income from this activity in the amount of $1.5 billion.

Xerox and Atos are longtime partners. The American company provides the opponent with services in the field of printing, financial management and personnel, while the French vendor helps Xerox with IT work in the European market. After the completion of the transaction to transfer the IT outsourcing business, Atos may become the main IT contractor Xerox, the newspaper The Wall Street Journal notes.[21]

The sale of ITO in Xerox is called an important strategic step that will allow the company to focus on the most growing and profitable markets.

"We made great strides in the IT outsourcing market, but we were too small a player against the background of big competitors," says Xerox Services President Robert Zapfel. - This division will be better off as part of Atos. IT outsourcing is the dominant component of their business. "

Xerox is going to spend the funds received from the sale of ITO on acquisitions of third-party assets and return capital to investors. For 2015, the American manufacturer planned purchases of various firms in the amount of $900 million, and also intends to redeem its own shares for $1 billion.

16% profit drop

At the end of January 2015, Xerox announced the financial performance of its activities in 2014. The company's profit decreased by 16%, revenue - by 2%.[22]

According to published reports, in 2014 Xerox raised $19.5 billion against $20 billion a year earlier. Net income fell from $1.16 billion, or 91 cents per share, in 2013 to $969 million, or 81 cents per security, a year later.

Xerox ends 2014 with 16% profit drop

Operating profit margin was 9.6%. The operating cash flow turned out to be $2.06 billion.

Xerox's service revenue, accounting for 57% of the company's total sales, reached $10.5 billion in 2014. The vendor's business in the field of document management technologies, which provides 43% of Xerox's total revenue, brought the company $8.4 billion.

In 2015, Xerox predicts earnings in the range of $1 to $1.06 per share, down from its previous forecast of $1.11 to 1.17 per share. The company explains the decrease in the volume of expected profit by the depreciation of the euro.

Xerox is considered one of the pioneers of the copying equipment market, but in recent years the company has been more focused on document management services, account processing and IT outsourcing. This reorganization leads to a significant reduction in sales of printing equipment and an increase in costs due to the expansion of the service business. True, in 2014, Xerox's total costs decreased by 2% to $18.3 billion.

At the end of 2014, Xerox sold the Information Technology Outsourcing division, which is dedicated to autonomous support and maintenance of information systems in organizations. This asset for $1.05 billion was bought by the French system integrator Atos. Xerox also acquired Consequence Software, which develops software for maintaining patient records in government medical institutions.

2009

Announcement of $6.4 billion acquisition of Affiliated Computer Services for growth in IT services market

In September 2009, Xerox announced that it would buy Affiliated Computer Services, a provider of IT business process management solutions, for $6.4 billion. The deal will allow Xerox to triple the turnover of the direction of IT services, the company hopes. Affiliated Computer Services was founded in 1988. For more than 20 years of its existence, its staff has increased to 74 thousand people. ACS provides its clients with various solutions for outsourcing service of business processes, as well as consulting. Affiliated Computer Services' competitors in providing software solutions for business are Accenture and Computer Sciences.

The company is rebuilding its product line in a rapidly changing peripheral market. Replaced by multifunctional devices (MFPs), monofunctional analog copiers, scanners and printers quickly lost ground in the leading (most profitable) markets, and their sales were pushed to the outskirts - to countries lagging behind in the use of information technology. Of the highly profitable innovative products, such solutions have become a commodity of everyday demand, and making noticeable money from their production is no longer possible. Maintaining its presence in the traditional segments of office technology, Xerox focuses on two whales of the new policy: document management services and color printing.

Ursula Burns succeeds Ann Mulcahy as head of the company

  • Since July 1, 2009 - Ursula Burns is the chief manager of the company.
  • August 2001 - July 1, 2009 - Ann Mulcahy - Chairman of the Board of Directors and Chief Executive Officer of the company.

2008:940 patents for the year

In 2008, specialists from the Xerox Research Center in Palo Alto and XMPie received 609 patents in the United States. If we add here the patents received by the Xerox joint venture in Japan - Fuji Xerox Co. Ltd. - the total result of Xerox Group in 2008 will be more than 940 patents. Together, Xerox and Fuji Xerox invest more than $1.5 billion annually in research, development and design.

2006: Course on electronic document management services

The movement of computer equipment suppliers from hardware towards services is a long-established trend. "Big guys" like IBM or HP have been earning a significant part of their income from providing services for many years. The segment, which Xerox identified as targeted for itself, was called the "Document Industry." To show investors and partners the scale of opportunities in the company, they determined the capacity of this specific market. It turned out that there is where to turn around - $112 billion a year, of which services account for 20 billion.

Actually, every fourth employee (about 15 thousand specialists in 160 countries of the world) is engaged in business related to services at Xerox today. Perhaps the main task today for this small army is to form a market. When it comes to IT communication and document management in Russia, in the overwhelming majority of cases they mean software systems for managing electronic documents. Xerox has collected a lot of evidence that no organization is complete without paper documents and inefficient work with them very often brings great losses. Increase productivity and reduce the cost of producing, processing and storing paper documents with the most dense integration of this system with the world of digital documents - this is how they form their mission in the company.

It is understood that optimizing such processes only makes sense in the event of perceived substantial savings. Most often, benefits (a reduction of 10-30% of expenses) can be expected in large organizations burdened by large-scale use of paper: banks, insurance companies, legal offices, telecom operators. Some of the largest target groups for Xerox Global Services are government departments and educational institutions.

Like most consulting projects, document management modernization (in its extended understanding) begins with a pre-audit. Xerox determines the level of current customer costs for the purchase of equipment and consumables, as well as for its maintenance. "Employees per device," "average cost of printing a page" are phrases that are often used in this case. Separately, the compliance of the technical capabilities of the installed fleet of devices with business objectives is assessed. Many other metrics for the efficiency of using the document creation and processing infrastructure are removed. All these measures are systematized within the framework of a methodology called Xerox Lean Six Sigma.

Summarizing their experience in examining the printing, copying and scanning infrastructure at customer offices, Xerox provides frightening statistics. According to the data presented, in the average company, one device falls on 2.2 employees, and it has been used for 5.6 years. They are not used very intensively - only 2% of the working day. At the same time, printing costs per employee can reach $1,000 per year. It is more than likely that in Russia such estimates will be different, but does this cancel the problem?

The actual added value of consulting in this case is not only the optimization of the cost of using technical means, but also the improvement of business processes for working with documents. It is said that noticeable savings can be obtained even from the correct location of devices in the office. Maps depicting MFPs and the workplaces of employees who use them are a mandatory element of a separate procedure, which in the English equivalent even has a solid name - Floor Mapping. It is important that in this case, it is much easier than in the case of software to determine the optimization effect in money: the cost of purchasing consumables, maintaining motley printers, the time spent by employees on creating or processing documents - all this can be easily scalked. Accordingly, savings or lack thereof should be obvious.

It is much more difficult to calculate in money the losses from unauthorized use of printing devices. The problem is that most often Chief information officer cannot know for sure who copied or printed what documents on numerous office MFPs. Setting organizational restrictions for employees, for example, on color, two-way printing or other actions, is not always effective. The situation fundamentally changes when, before using the device, you need to enter your own password or log in with your fingerprint: the system monitors each step of the user and the likelihood of unauthorized actions by him is sharply reduced. At the end of the month, you see clear statistics on the use of devices by all employees. Naturally, depending on the status of the user in the system, he may receive access rights to a narrow or wide range of functionality.

Among the innovations investigated in Xerox laboratories and directly related to security, special interest is the technology of applying special tags to paper documents that, when printed or copied, hide confidential information contained on this page. This looks like this: at the bottom of the sheet, the printer prints a special visible field containing an invisible code to the eye. A secretary or other authorized employee who does not have access to some data fields will see only "crosses" when printing or copying in their place. An employee whose authorization allows you to decrypt the document, it is enough to enter his password in the MFP and then dig out the encrypted page on any device connected to the corporate network - all fields will be declassified. Since this development is not yet used in the company's commercial products, it is difficult to say how much massive demand it can find among consumers. Meanwhile, technologically, the solution has already been worked out.

Xerox calls the risk of using them by attackers for external attacks on the enterprise's IT infrastructure a killer argument for the need to be careful about peripherals. MFPs and monofunctionals have their own operating systems, information storage disks, software support subsystems. By being connected to the network, they can become an open gateway for scammers.

The "smart control" in Xerox also includes the ability to remotely monitor the health of devices. Reducing downtime reduces costs. The company is confident that time, and therefore money, can be saved on optimizing the distribution of paper documents translated into digital form. So, by copying or scanning a paper document on a modern MFP and intending to send it to the list of recipients, the user can do this without the help of a computer - the distribution is carried out directly from the same MFP. Modern document management systems can include other features that save users from routine operations.

Following the general managerial fashion, Xerox also acts as an outsourcer. The company takes on all the concerns of document processing: scanning, indexing, archiving of electronic and paper documents. Works are carried out both in the premises of the customer (for this the equipment and software of the vendor are installed), and in the so-called Service Imaging Centers. In addition to the United States and Europe, such centers have already been established in Japan, Brazil, Australia, Mexico and Singapore. The largest site in American Arkansas processes 1.2 million documents per day. In September 2006, it was announced that all centers were merged into a network based on a single software platform. The Xerox infrastructure can thus be used more efficiently by global corporations.

1973: First Xerox Alto GUI PC

The first PC with Xerox Alto GUI. United States, 1973.

1961: Renamed Xerox Corporation

  • 1961 - The company is renamed Xerox Corporation. The company's profit amounted to about $60 million.

  • 1965 - profit exceeded $500 million.

1947: Purchase of copier patent

1947 - Haloid Company acquired a patent for a copier invented by Chester Carlson. Copying documents was called "xerography" (from the Greek. "Dry" and "spelling"), and Carlson suggested calling the device itself "xerox."

  • 1949 - the first copier was released - Model A.

  • 1958 - The popularity of the Xerox 914 copy device led to the company's renaming Haloid Xerox

1906: Founding of the Haloid Company to produce photographic paper

1906 - founded in the city of Rochester (New York, USA) Haloid Company. The company was engaged in the production of photo paper.

Notes


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