Xerox Corporation (ziroks) — corporation, one of world leaders in the market of the office equipment, the pioneer of mass release of photocopiers. Makes and sells color and monochrome printers, the MFP, photo copiers, the polygraphic equipment and also related services of consulting. The name of the company became nominal, and as a result "copier" call the copier in general.
The headquarters of the company is located in the city of Noruak, State of Connecticut (USA), but most of employees continues to be in the city of Rochester (New York) where the firm was founded.
2018: Decrease in revenue by 4.2% to $9.83 billion
In 2018 revenue of Xerox made $9.8 billion, having decreased by 4.2% of rather previous year. If not to do the amendment on change of currency rates, then 4.9 percent recession took place.
The company earned from sale of the printing equipment in a year about $2.2 billion or about 25% of revenue (the same indicator took place and the previous year), and the share of services of document management reached 35% against 33% in 2017. Sale of printers and other equipment year on year decreased by 4.1%.
In division on release of the equipment of Xerox devices of the average level best of all are on sale: their share in sales of the equipment reached 66% at the end of 2018 whereas the indicator was measured in the 2017th by 61%. Budget and most high-performance models brought the companies of 11% and 22% of revenue of sales of the equipment respectively.
Judging by financial statements, demand for the equipment of Xerox of all price categories falls. In an upper segment recession is caused by weak sales of the iGen and Versant systems and also devices of monochrome printing that as the producer notes, corresponds to market trends. At the same time Xerox noted high demand on digital Iridesse printing machines and the growing sales of the updated systems for industrial printing.
Explained recession in a segment of the equipment of the average level of Xerox with low results in the corporate channel in the USA.
The most part of revenues of Xerox are still the share of North America. Moreover, in 2018 the share of this region in the total turnover of the American vendor increased to 60% from 58% in the 2017th.
The net profit of Xerox in 2018 was $374 million against $204 million the previous year.
After the publication of financial results of a stock of Xerox rose in price for 11.4% as income and the forecast of the company appeared above market waiting.
Business in Russia and the CIS countries
Copier of the CIS
Hackers stole 100 Gbytes of personal data from Xerox, blocked computers and demand the redemption
At the beginning of July, 2020 it became known that participants of the hacker Maze grouping cracked IT systems of Xerox, threaten to upload personal data publicly and require the redemption from the company.
Racketeers claim that they stole more than 100 GB of files from Xerox. Though the company refuses to comment on a situation, hackers of Maze published a series from 10 screenshots which confirm - hosts on "ex.xerox.net" which are managed by Xerox, were cracked. The amount of the required redemption is not reported.
|After payment we will delete your data from the disks and we will provide you the file-rasshifrovshchik which will allow to recover files, says with the requirement of the redemption, the sent Xerox.|
According to SecurityWeek, hackers cracked Xerox branch in Europe, perhaps, in London, got access to servers of the company and stole a number of finance documents and information from the database on users. Racketeers began to cipher files on computers of Xerox on June 24 and threatened to publish information on cracking if Xerox does not contact them within three days.
In available messages it is practically not provided any data on cyber attack effects, only proofs of cracking and enciphering of the systems of the company, BleepingComputer reports. However the Maze viruses racketeers repeatedly affected the companies from the IT industry though this group of hackers appeared only a year ago. So, in April, 2020 the Cognizant network was infected.
It is expected that losses of the company in the second quarter because of the attack of Maze will be 2020 from 50 to 70 million dollars. It is known also that at the beginning of June hackers of Maze published two ZIP files which contain working documents of Conduent. The company reported that the attack happened on May 29, 2020 and proceeded about nine hours then servers returned to normal work.
Xerox began serial production of ventilators
At the beginning of April, 2020 Xerox and Vortran Medical Technology announced cooperation within which the companies are going to arrange production of devices for the emergency support of breath of Vortran GO2Vent and the corresponding monitor of pressure in APM-Plus airways. Read more here.
Xerox refused a hostile takeover of HP because of a situation with a coronavirus
The Xerox company, producer of copiers, scanners and printers, announced that it does not consider it expedient to continue merger of Hewlett-Packard because of the difficult situation in the markets caused by a coronavirus pandemic. Information on it appeared on April 1, 2020. As the company in the press release stated, it withdraws the offer on acquisition of HP.
|Though we are also upset by this step, but for us health, security and wellbeing of our employees, clients, partners and other shareholders, and our wider response measures in the conditions of a pandemic are on the first place stand above all other reasons — told Xerox.|
The Xerox company announced the intention to purchase HP in November, 2019 and made the proposal for $33.5 billion, but the management of HP at once rejected it, having noted that it "significantly underestimates" the cost of their assets. In February, 2020 Xerox raised the offer to $24 for one stock of HP because of what transaction amount increased up to $35 billion on March 2 Xerox already intended to begin the procedure of a hostile takeover with $22, i.e. to start redemption of stocks directly at investors.
HP Inc. refused to be on sale Xerox for $35 billion and explained why
On March 5, 2020 HP Inc. officially rejected the offer of Xerox on purchase of the producer of printers and computers for $35 billion. In HP Inc. consider that this amount too small for the company of such size. Read more here.
Xavier Hayss's appointment to a position of the executive vice president and the president in EMEA region
On February 26, 2020 Xerox announced Xavier Hayss's appointment to a position of the executive vice president and the president of Xerox in EMEA region (Europe, the Middle East and Africa). Hayss entered a position on February 29, 2020. Read more here.
Xerox organized a dinner for shareholders of HP
On February 17, 2020 it became known that sent Xerox to shareholders of HP of the invitation to a dinner at restaurant as the last attempt to get support on the conclusion of the transaction on a company merger.
According to a source of Reuters, the dinner organized by Xerox will pass on February 18 in restaurant in the area Riverside in the city of Grinuich (the State of Connecticut, the USA). On an action presence of the CEO of Xerox John Vicentin is expected. Other informed interlocutor of news agency claims that after this meeting others can take place in the next few days.
In the publication it is said that if among shareholders HP is enough those who will support the CEO of HP Enrique Lores, then it can give the companies of bravery to try to remain independent or to try to obtain more profitable transaction.
The last by February 17, 2020 the offer of Xerox assumes purchase of HP for $35 billion ($24 for an action). The computer maker and printers does not intend to respond to this offer till February 24 when the company publishes the financial statement and will tell about alternative methods of increase in the shareholder value.
|After the period of silence HP will share the additional information about the plan of ensuring steady long-term benefit for the shareholders, including by means of accomplishment of the long-term strategic and financial plan and disclosure of strong balance — reported in HP.|
The analysts polled by Barron's are sure that on February 24 HP will announce the redemption of own actions at higher price, than offers Xerox. According to experts, it will allow both to observe the interests of shareholders, and to protect assets from a hostile takeover.
Offered Xerox $35 billion for purchase of HP
On February 10, 2020 Xerox Holdings raised the offer on HP Inc purchase . from $22 to $24 counting on one share of the manufacture of computers and printers. Thus, Xerox is ready to be spent for the transaction of $35 billion instead of former $33.5 billion taking into account debts of HP. Read more here.
Xerox agreed with banks about providing $24 billion for purchase of HP
At the beginning of January, 2020 announced Xerox that the company agreed with three banks about providing $24 billion for merger of HP. However the computer maker and the printing equipment still does not want to conclude the bargain.
Desire to finance merge of Xerox and HP was expressed by Citigroup, Mizuho Financial Group and Bank of America. It is said in the letter which the CEO and the vice-chairman of the board of directors of Xerox John Vicentin sent HP.
Within the expected transaction of Xerox attracted Simpson Thacher & Bartlett LLP as the legal advisor, and Citi — as the financial advisor. The Cravath company, Swaine & Moore LLP intends to advise banks concerning providing financing.
HP responded to the letter of Xerox with the message written by the CEO of HP Enrique Lores and the chairman of the board of directors Chip Berg.
|Your letter of January 6, 2020 concerning financing does not solve the main problem - the offer of Xerox significantly underestimates HP - and is not subject to discussion … We repeat that the Board of Directors of HP is concentrated on providing steady benefit for investors of the company in the long term — it is specified in the letter to Xerox.|
HP expresses "serious concerns" concerning financial performance of Xerox in the near future and also concerning viability of business of Xerox in the long term that in the future can significantly affect the cost of Xerox.
On December 25, HP Inc. gave to shareholders an opportunity within a month to nominate members in Board of Directors of the company. The analyst of Evercore Amit Daryanani sees "high probability" that Xerox or the activist investor Karl Icahn will offer a full range of candidates in attempt to conclude the bargain on merge of Xerox and HP.
Stocks of HP during additional biddings in New York fell on January 8, 2020 in price for 0.38%, and securities of Xerox rose in price for 0.03%.
Xerox threatens to purchase HP by force
On November 21, 2019 Xerox was put forward by HP Inc. the ultimatum within the offered transaction on merger of PC maker and the printer. Xerox threatens with transformation of the offer into "hostile" if HP does not agree to "friendly merger". Read more here.
HP refused to be on sale Xerox for $33.5 billion
On November 17, 2019 HP Inc. officially announced the refusal to conclude the bargain on merge to Xerox on terms offered to the last. The CEO of HP Enrique Lores and the chairman of the board of directors Chip Bergh directed the corresponding letter addressed to the head of Xerox John Visentin. Read more here.
Sold to Xerox a share in the joint venture with Fujifilm for $2.3 billion
On November 5, 2019 it was announced that Fujifilm redeems from Xerox a share in the Fuji Xerox joint venture (JV) which specializes in production of the copy equipment and provision of services of document flow. Read more here.
The claim from Fujifilm for failure from the transaction on absorption
On June 18, 2018 the Fujifilm company sent the claim to federal court of the USA for failure to follow of terms of the contract by Xerox company to prevent failure of the last from the transaction of absorption worth $6.1 billion offered earlier. In the statement of claim on 36 pages of Fujifilm accused Xerox of lack of the reason for a rupture of the sales agreement of control over the American company of the Japanese Fuji. Read more here.
Termination of the transaction on merge to Fujifilm
On May 14, 2018 Xerox officially announced the refusal to conclude the bargain on merge to Fujifilm Holdings. Sale to the American company broke under pressure of the largest shareholders.
According to the statement of Xerox, within several weeks the company repeatedly addressed Fujifilm with the offer to discuss new join conditions, however the Japanese company did not confirm readiness to make it in reasonable time.
|Taking into account the arisen circumstances the bargain cannot be concluded, especially in connection with the injunction and lack of support from shareholders on the current conditions and also because of unresolved accounting problems in Fuji Xerox, said in the statement of Board of Directors of Xerox.|
Fujifilm expressed the intentions "dispute the one-sided solution of Xerox" and consider various options, including submission of the claim for compensation of damage.
Initial arrangements assumed that Xerox will become a part of the enterprise, joint with Fujifilm, in Asia – Fuji Xerox. For shareholders of Xerox 49.9% in joint venture had to remain. The cost of the transaction was estimated at $6.1 billion.
The largest shareholders of Xerox among whom the businessman Karl Icahn, criticized this transaction, having said that the company costs much more, and filed a lawsuit.
|We are very glad that Xerox at last closed the unreasonable scheme on transfer of Fujifilm of control over the company. Thanks to those which stand behind us to the new management focused on shareholders there came the new beginning for Xerox — Icahn said.|
Stocks of Xerox which cost in the late nineties, exceeded $150 in May of the 2018th are trading on a mark about $35 against the background of the continuing decrease in indicators of revenue and the profit of the American producer of the office equipment. The quotations of Fujifilm dropped by 7% after the declaration of purchase of Xerox as investors were afraid that Japanese diggings will be forced to satisfy conditions of activists investors.
John Vicentin is the new CEO of Xerox
At the beginning of May, 2018 the producer of systems for document flow of Xerox announced John Vicentin's appointment the new CEO of the company after resignation of several top managers. Dismissals are connected with pressure of the largest shareholders and foretell failure of the transaction on consolidation of Xerox with Fujifilm. Read more here.
Fujifilm receives control over Xerox
On January 31, 2018 the Japanese producer of photography equipment Fujifilm Holdings announced receiving control over Xerox and merge of the American company to the joint venture (JV) — Fuji Xerox. Difficult and large-scale restructuring is carried out for the purpose of cost reduction, the press release says.
Under the terms of the agreement, Fuji Xerox becomes formal 100 percent "subsidiary" of Xerox. At the same time the companies integrate in one in which Fujifilm receives 50.1% of shares.
Shareholders of Xerox need in total $2.5 billion in the form of special dividends. Also they will remain owners of 49.9% of the joint venture. According to Financial Times, the Japanese company will pay to the old American partner about $8 billion cash and actions.
Itself Xerox will replace the name with Fuji Xerox, the united company will remain at the New York Stock Exchange. The CEO of Xerox Jeff Jacobson will become the head of Fuji Xerox.
It is going to close the transaction in the second half of 2018. It was already approved by Boards of Directors of both companies.
Meanwhile, about 10 thousand jobs in Fujifilm joint venture and Xerox are announced reduction, i.e. the staff of Fuji Xerox will decrease approximately by 20%. For these purposes it is selected with 49 billion yens ($450.1 million) which will be considered in the report for the financial year completed on March 31 the 2018th calendar.
The companies expect to cut down due to restructuring annual expenses on $1.7 billion by 2022. To the 2020th economy should be measured by $1.2 billion.
It is supposed that the updated Fuji Xerox which will include Xerox will become the world's largest decision maker for document flow in terms of revenue. The Fuji Xerox and Xerox brands will remain in the market and will be used depending on regions.
By the end of January, 2018 market capitalization of Xerox makes about $8.35 billion, at the same time its net debt exceeds $4 billion. Capitalization of Fujifilm — $22 billion.
Fall of profit three times
Finished 2017 of Xerox with revenue in the amount of $10.3 billion that is 4.7% less in comparison with the 2016th and keeps within own forecast of the company. Profit decreased three times.
The net profit of Xerox from the continuing activity was reduced from $616 million to $195 million that is caused by the heavy expenses connected with the updated tax law in the USA. The producer of the printing equipment and other American companies having large international business after reduction of corporate tax in the USA began to return profit home that develops into large one-time costs (at Xerox they made $400 million). Further decrease in tax burden should affect positively revenues of the American companies, including Xerox.
In 2017 by Xerox it was separated into two companies: actually Xerox concentrated on release of printers and copiers, and Conduent was engaged in business process outsourcing (except document flow outsourcing). Thanks to this "strategic transformation" costs of Xerox in 2017 were reduced by $680 million that expected $600 million there are more.
Also follows from the report of Xerox that about a quarter of revenue of the company for 2017 (about $2.3 billion against $2.4 billion in 2016) was the share of sale of the equipment. Services of document management provided a third of turnover.
About 60% of annual sale of list devices of Xerox were occupied by the equipment of the average level. Budget models and the high-performance equipment brought the companies of 15% and 23% of revenue of sales of the equipment respectively.
North America where annual incomes were 58% of total remains the largest market for Xerox.
The published annual financial statements will become the last for Xerox. At the beginning of the 2018th the company agreed about merge to Fujifilm therefore Xerox, conducting the history since 1906, will lose independence.
Separation of Xerox and Conduent is complete
In January, 2017 it was announced department of group outsourcing business processes (BPO) Xerox (Xerox Global Services) — which was renamed into Conduent — from the trunk business of technologies of work with documents bringing an annual income of 11 bln. dollars in fact cancelled the purchase of Affiliated Computer Services (ACS) for 5.6 bln. dollars made in February, 2010. You look in more detail- Conduent.
The first financial report after separation
At the end of January, 2017 Xerox published the first financial statement after separation. At the company which focused on release of the printing equipment both revenue, and profit fell.
At the beginning of 2017 officially shared Xerox on two public companies: one of them under the name of Xerox business on release of printers and the copy equipment departed, and another — Conduent — was engaged in business process outsourcing (except document flow outsourcing).
In 2016 updated Xerox gained $10.8 billion that is 6% less, than the previous year of what sales reduction of list devices is guilty. Net profit decreased by 27%, having been $616 million. In these results Conduent business is not considered, its indicators will be included into the annual report of Xerox in the column "the stopped transactions", notes the MarketWatch edition.
|After ended department of Conduent we paid all our attention to strategy implementation which includes the growing fields of the market. As strategy brings results, revenue development will improve over time. At the same time we increase a margin and we continue to generate strong cash flows — the CEO of Xerox Jeff Jacobson said.|
The chief financial officer of Xerox Bill Osbourn reported that the company intends to make a number of acquisitions. In particular, Xerox looks narrowly at software developers and technologies of automation of workloads.
According to Osborne, in Xerox the budget in $100 million for purchase in 2017 of the resellers working with different producers to turn them into exclusive partners of Xerox is selected. The cost of such companies dealers, as a rule, corresponds to their annual revenues, and Xerox always received good return from such acquisitions, the financial director noted.
The largest shareholder requires to prohibit separation of Xerox
On October 13, 2016 it became known that the largest shareholder of Xerox took legal action, trying to block separation of the company which, according to the investor, incorrectly distributes his investments.
A claim to District court in Dallas was submitted by the billionaire Darwin Deason who founded outsourcing company Affiliated Computer Services (ACS) which Xerox purchased in 2010 for $6.4 billion. According to the results 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 names of the CEOs of two companies which will work at the market instead of one American producer of the copy equipment.
It is planned that until the end of 2016 by Xerox it will be divided into two companies: one will save a name of parent vendor and will be engaged in release of copiers and printers; another will receive the name Conduent and will focus on outsourcing services.
According to the The Wall Street Journal (WSJ) edition, Ursula Burns successor on a post of the head of Xerox will become 56-year-old Jeff Jacobson heading division on development of the printing equipment and software of Xerox Technology. Ursula Burns will remain in Xerox on a post of the chairman of the board of directors.
Jeff Jacobson will head the company with the state in 39 thousand employees and annual revenues about $11 billion. He joined Xerox in 2012, having become the head of department of graphic communications.
According to WSJ, Jacobson was a favourite among candidates for a post of the head of printer business of Xerox. Being the head of Xerox Technology, he provided to division strong cash flow, however to the top manager was difficult to constrain long-term fall of income in the conditions of a global trend in failure from paper for benefit of digital technologies, notes the edition.
48-year-old Ashok Vemuri, the former head of the IT outsourcer of iGate will become the head of Conduent. In Conduent about 96 thousand people will work, its annual turnover is estimated at $7 billion.
Decided by Xerox on the CEO of the new companies which will be created on its basis, but did not create a team of top managers yet. In particular, by June 23, 2016 chief financial officers are not defined. Besides, it is unknown where the headquarters of these companies will be located. Separation of Xerox is going to be completed by the end of 2016.
Plan of separation into two companies
On January 29, 2016 Xerox announced restructuring within which business of vendor will be divided into two companies. One of them will be engaged in office equipment, another — services.
As it appears from the message of Xerox, by the end of 2016 in the market there will be public companies which hereinafter are referred to as Business Process Outsourcing and Document Technology producer. In the first of them the business of Xerox connected with business process outsourcing and other services will depart. Revenue of the company from this activity in 2015 made $7 billion, about 104 thousand people were engaged in it.
Document Technology will specialize in production and promotion of the office equipment, including scanners, printers and photocopiers. Besides, this company will focus on document management provision of services. Revenue of business of Xerox which will be managed by Document Technology at the end of 2015 reached $11 billion, and number of staff, involved in it, was measured by 40 thousand employees.
As notes the Bloomberg agency, referring to the statement of Xerox, the company management decided that businesses in the field of document flow and services are a little crossed and require different capital structures and operational models. Having separated Xerox, it is going to simplify decision making process about on what areas to focus and where to invest.
Crushing of Xerox became a part of the plan of the company for cost reduction for $2.4 billion in three years. Restructuring does not assume any tax burden of shareholders of Xerox.
The billionaire Karl Icahn who is known that he acquires shares of the large companies insisted on separation of Xerox, and then makes demands for their reorganization, and thus increases the influence in corporation. As of the end of January, 2016 Icahn possesses more than 8% of securities of Xerox.
Under the terms of the agreement, Karl Icahn will be able independently to select three board members of Business Process Outsourcing. Six more directors will be appointed according to the solution of Xerox. Two of board of Xerox will be able to pass into Board of Directors of newly made service firm.
The leadership team of future companies created based on divisions of Xerox will be defined later in 2016. Karl Icahn will select the person who will monitor and advise committee on search of the CEO of Business Process Outsourcing.
The first rumors about separation of the company
The Xerox corporation will be separated into two independent public companies: one will be engaged in the office equipment, another — rendering business services. With reference to the informed source Wall Street Journal reports about it. The source informed that it officially is going to announce separation of Xerox together with the publication of financial results for 2015, on January 29, 2016. It is expected that the company will report the fourth in a row year with lowering of revenue and the profit.
Separation will be made after assessment of other perspectives of further existence business of Xerox, intention to carry out which in October, 2015 was announced by the chief executive Ursula Burns. The company seriously thought of changes after for the first time since 2010 ended quarter at a loss. The problem consists also in undervaluation of Xerox which market share is equal only to a half of its annual income.
Fall of profit twice
At the end of January, 2016 Xerox submitted the financial statement. In it it is announced double fall of profit of the American company because of adverse rate fluctuation of currencies and recession of revenue in the market of technologies of work with documents.
At the end of 2015 the net profit of Xerox was $488 million against $1 billion the previous year. Revenue was reduced by 8%, to $18 billion. The company gains more than a half of income from service business.
|In a difficult situation our service segment increased a margin and revenue two-digit rates. At the same time the division of Document Technology remains the leader in sales of the equipment 24 quarters in succession and saves high profitability thanks to our attention to financial performance and productivity — the chairman of the board of directors and the CEO of Xerox Ursula Burns said.|
In 2016 Xerox predicts profit in the range from $1.1 up to $1.2 on an action whereas the analysts polled by Thomson Reuters expect income at the level of 99 cents on an action.
Along with the publication of financial statements of Xerox announced the program of strategic reforms which is designed to save in total $2.4 billion in three years. The program assumes separation of Xerox into two companies.
Besides, the vendor announced increase in payments of quarter dividends for 11% up to 7.75 cents for one ordinary share. Dividend payout will begin to be made at the end of April, 2016. By Xerox she intends to continue return of the capital to shareholders. It is expected that more than a half of a free cash flow of the company will go for share repurchase of stocks and dividends.
Karl Icahn takes 7.13% of shares of Xerox for the purpose of its reorganization
In November, 2015 it became known of purchase of a large packet of securities of Xerox by the activist investor Carl Icahn. Having been among shareholders of the company, the businessman intends to get to its Board of Directors and to stimulate reorganization of the producer of the printing and copy equipment more than with 100-year history.
According to the The Wall Street Journal newspaper with reference to the documents sent by Karl Icahn to the American finance regulator on November 23, 2015 the entrepreneur purchased a 7.13 percent share in Xerox and became the second in value shareholder of the company after Vanguard Group which possesses 8.4% of papers. For the first 11 months 2015 of a stock of Xerox fell in price by 22%, but Icahn is sure that they are underestimated.
The billionaire intends to talk over with the management of Xerox and board concerning "improvement of operational results and application of strategic alternatives and also a possibility of board representation".
Karl Icahn calls himself the activist investor and the defender of shareholders. He is known that he takes shares of the large IT companies, and then actively lines their heads to capital repayment to investors and carrying out restructuring for the purpose of increase in shareholder value of business. In particular, Icahn bought shares in Apple, eBay, Netflix and HP. The last not without the assistance of the American businessman was separated into two companies in November, 2015.
In October, 2015 announced Xerox the beginning of studying of structural options for the products and services and also for capital allocation. The CEO Ursula Burns said at once that it is not going to sell the company, but the possibilities of merges and absorption will be considered. Whether Karl Icahn influenced the decision of the management on possible reorganization, it is difficult to tell as there is no exact information when the billionaire took shares of Xerox.
Development of the self-destroyed chip
On September 14, 2015 the research laboratory of Xerox company provided the innovation computer chip capable to be destroyed independently on command. Such development can be demanded writes the ComputerWorld edition in the products storing confidential data.
The new chip developed in Xerox PARC research center is manufactured on the basis of the Gorilla Glass glass used in many smartphones. This tempered panel serves as a substrate with the small resistor which at electricity feed-in quickly heats up. Heat is transferred to processor glass, and that quickly (approximately in 10 seconds) collapses on thousands of small fragments without a possibility of recovery.
During demonstration of a prototype at the Wait, What exhibition organized by the agency of perspective defense projects at the U.S. Department of Defense (DARPA) in St. Louis, the command for self-destruction of the chip was executed by means of a photo cell on which laser lighting moved. Developers say that also other methods of transfer of a command, including through a radio signal or any mechanical switch are possible.
The similar chip should find application in the tasks work-related with top secret or very important corporate information which should not get into strange hands. In particular, the self-destructing chips can be used in security systems and enciphering.
The Xerox PARC did not call even approximate terms of an entry of this development into the commercial market. The senior research associate of laboratory Gregory Whiting assured that this chip can be used with already released electronic devices.
In 2014 DARPA announced the similar conceptual project created in partnership with IBM. Then it was reported that the American IT giant received nearly $3.5 million for development of this technology.
Sale of business of IT outsourcing for $1 billion
The division of Xerox Information Technology Outsourcing (ITO) buys the French system integrator Atos. The cost of the transaction is $1.05 billion Besides, Xerox will be able to receive an additional bonus at the rate to $50 million depending on a business status at the time of its official translation in the property of Atos. It is going to close the transaction after pronouncement of solutions of regulators — approximately in the first half of 2015.
As of the end of 2014 the staff in division of Xerox of ITO totals about 9800 people working in 45 countries of the world. About a half of employees from this quantity live in the USA.
IT outsourcing is the second in value business of Xerox with total revenue in $376 million in the third quarter 2014. According to the results of all 2014 the company predicts income from this activity in the amount of $1.5 billion.
Xerox and Atos are old partners. The American company renders to the opponent of service in print area, managements of finance and personnel while the French vendor helps Xerox with IT work in the European market. After completion of the transaction on transfer of business of IT outsourcing Atos can become the main IT contractor of Xerox, the The Wall Street Journal newspaper notes.
Sale of ITO in Xerox is called an important strategic step which will allow the company to be focused in the most growing and profitable markets.
"We achieved great success in the IT outsourcing market, but we were too small player against the background of big competitors — the president of Xerox Services Robert Zapfel says. – It will be better for this division as a part of Atos. IT outsourcing is the dominating component of their business".
Is going to spend ITO of means of Xerox received from sale for acquisitions of third-party assets and return of the capital to investors. For 2015 the American producer planned purchases of different firms for the amount of $900 million and also intends to redeem own shares for $1 billion.
Fall of profit by 16%
At the end of January, 2015 Xerox published financial performance of the activity in 2014. The profit of the company was reduced by 16%, revenue — for 2%.
According to the published reporting, in 2014 Xerox gained $19.5 billion against $20 billion the previous year. Net profit fell with $1.16 billion, or 91 cents to an action, in 2013 to $969 million, or 81 cents counting on one security of the company, a year later.
Graduated from Xerox 2014 with fall of profit by 16%
The operating profit margin made 9.6%. The operating cash flow appeared to equal $2.06 billion.
Service revenue of Xerox, component of 57% of total sales of the company, reached $10.5 billion in 2014. The business of vendor in the field of technologies of document flow providing 43% of consolidated revenues of Xerox brought the companies of $8.4 billion.
In 2015 Xerox foretells profit in the range from $1 up to $1.06 on an action that it is less in comparison with the previous forecast in $1.11-1.17 for an action. The company explains lowering of volume of an expected profit with falling of euro exchange rate.
Xerox is considered one of pioneers of the market of the copy equipment, however in recent years the company more is guided by services in the field of document flow, processings of accounts and IT outsourcing. This reorganization leads to considerable reduction of sales of the printing equipment and growth of expenses in connection with expansion of service business. However, in 2014 the total costs of Xerox decreased by 2% to $18.3 billion.
At the end of 2014 sold to Xerox the division of Information Technology Outsourcing which is engaged in autonomous support and service of information systems in the organizations. This asset for $1.05 billion purchased the French system integrator Atos. Also Xerox purchased Consilience Software company developing software for maintaining documentation of patients in the public medical institutions.
The declaration of purchase of Affiliated Computer Services for $6.4 billion for growth in the market of IT services
In September, 2009 announced Xerox that will purchase for $6.4 billion the supplier of IT solutions for business process management of Affiliated Computer Services. The transaction will allow Xerox to treble turnovers of the direction of IT services, hope in the company. The Affiliated Computer Services company is founded in 1988. For more than 20 years of existence its staff was increased up to 74 thousand people. ACS provides to the clients different solutions for outsourcing service business processes and also is engaged in consulting. Competitors of Affiliated Computer Services in the field of providing software solutions for business are the companies Accenture and Computer Sciences.
The company rebuilds the product line in quickly changing market of peripheral devices. Forced out by multi-function printers (MFPs), monofunctional analog copiers, scanners and printers quickly handed over positions on leaders (most profitable) markets, and their sale was forced out on the outskirts – to the countries which are lagging behind in use of information technologies. From highly profitable innovation products similar solutions became convenience goods, and it is impossible to earn on their production noticeable money already. Saving the presence at traditional segments of the office equipment, Xerox places emphasis on two whales of new policy: services in the field of document flow and color print.
Ursula Burns releases Ann Mulcahy from a post of the head of the company
- Since July 1, 2009 - Ursula Burns - the general manager of the company.
- August, 2001 - on July 1, 2009 - Ann Mulcahy is a chairman of the board of directors and the general manager of the company.
2008: 940 patents in a year
In 2008 specialists of Xerox research center in Palo Alto and XMPie company took out 609 patents in the USA. If to add here the patents which are taken out by Xerox joint venture in Japan - Fuji Xerox Co. Ltd. - that the general result of Xerox Group in 2008 will be more than 940 patents. Together Xerox and Fuji Xerox annually invest more than 1.5 billion dollars in researches, developments and designing.
2006: Course towards services of electronic document management
The movement of suppliers of a computer hardware from "iron" towards services long ago the defined trend. Big children it seems IBM or HP earn many years an essential part of income from providing services. The Segment which in Xerox was defined for themselves as target was called "The industry of documents" (Document Industry). To show to investors and partners the scale of opportunities in the company, determined the capacity of this specific market. It turned out that is where to be unrolled – 112 bln. dollars a year from which 20 billion are the share of services.
Actually in Xerox every fourth employee is engaged in the business connected with services today (about 15 thousand specialists in 160 countries of the world). Perhaps, the main objective today for this small army is market grouping. When in Russia it comes about communication of IT and document flow, in overwhelming number of cases mean program systems of management of electronic documents. In Xerox the set of proofs that no organization does without paper documents and inefficient work with them very often collected brings big losses. Increase performance and cut down expenses on production, processing and storage of paper documents at the most dense integration of this system with the world of documents digital – so create the mission in the company.
It is clear, that optimization of similar processes makes sense only in case of expected significant economy. Most often, the benefit (reduction for 10-30% of expenses) can be expected in the large organizations burdened by large-scale use of paper: banks, insurance companies, legal offices, telecom operators. One of the largest target groups for Xerox Global Services are the state departments and educational institutions.
As well as the majority of the projects connected with consulting, document management upgrade (in his expanded understanding) begins with preliminary audit. Specialists of Xerox determine the level of current costs of the customer on acquisition of the equipment and supplies and also on its service. "Employees on the device", "the average cost of printing of the page" - here phrases which are often used in this case. Compliance of technical capabilities of the set park of devices to business tasks is separately estimated. Many other metrics of efficiency of use of infrastructure of creation and document handling are removed. All these measures are systematized within the methodology which received the name Xerox Lean Six Sigma.
Summarizing the experience in inspection of infrastructure of printing, copyings and scannings at offices of customers, specialists of Xerox provide frightening statistics. According to the provided data, in medium-sized company one device is the share of 2.2 employees, and 5.6 years use it. Use not too intensively – only 2% of time of the working day. At the same time costs for printing for one employee can reach 1 thousand dollars a year. More than possibly what in Russia similar estimates will be others, but whether it cancels a problem?
Actually added value of consulting in this case is not only cost optimization on use of technical means, but also improvement of business processes of work with documents. They say that noticeable economy can be received even from the correct arrangement of devices at office. Cards with the image of the MFP and jobs of employees who use them are an obligatory element of the separate procedure which in the English equivalent even has the solid name – Floor Mapping (mapping of the premises). It is important that in this case, it is much easier, than in a case with software, to define effect of optimization in money: purchase costs of supplies, the service of ill-matched printers, time spent by employees for creation or document handling – all this can be calculated easily. Respectively, economy or its absence should be obvious.
It is much more difficult to count in money of loss from unauthorized use of list devices. The problem is that most often Chief information officers cannot know for certain who and what documents copied or printed on numerous office MFPs. Establishment of organizational restrictions for employees, for example, on color, two-sided printing or other actions not always effectively. The situation in a root changes when before use of the device you need to enter own password or to become authorized a fingerprint: a system traces each step of the user and the probability of commission of unauthorized actions by it sharply decreases. On monthly results you see accurate statistics of use of devices all employees. It is natural that depending on the status of the user in a system he can acquire access rights to a narrow or broad spectrum of functionality.
Among the innovations investigated in Xerox laboratories and directly connected with security, the technology of drawing on paper documents of special tags which at printing or copying hide the confidential information which is contained on this page is of special interest. It looks as follows: in the bottom of the sheet the printer prints the special visible field containing the code invisible to an eye. The secretary or other authorized employee who does not have access rights to some data fields at printing or copying on their place will see only "crosses". The employee whose authorization allows to decrypt the document has enough to enter the password into the MFP and after that to copy the ciphered page on any device connected to corporate network – all fields will be declassified. As still this development is not used in commercial products of the company, it is hard to say how mass demand it can find at consumers. Meanwhile the technological solution is worked already out.
Terrible argument for benefit of need of the attentive relation to peripheral devices for Xerox call risk of use them malefactors for external attacks on IT infrastructure of the enterprise. The MFP and monofunctionalities have own operating systems, information storage disks, program subsystems of support. Being connected to network, they can become open gate for swindlers.
In Xerox carry to "smart control" also possibilities of remote monitoring of operability of devices. Reduction of time of their idle time leads to cost reduction. The company is sure that time and consequently, and money can be saved also on optimization of distribution of the paper documents transferred to a digital form. So, copying or scanning the paper document on the modern MFP and intending to send it according to the list of addressees, the user can make it without the computer – mailing is performed directly from the same MFP. Modern management systems for document flow can include also other opportunities saving users from routine transactions.
Being in the general managerial fashion, Xerox acts also as the outsourcer. The company undertakes all cares on document handling: scanning, indexing, archiving of electronic and paper documents. Works are carried out as in premises of the customer (the equipment and software of vendor is for this purpose installed), and in the so-called service centers of images (Service Imaging Centers). In addition to the USA and Europe such centers are already created in Japan, Brazil, Australia, Mexico and Singapore. The largest platform in the American Arkansas processes 1.2 million documents a day. In September, 2006 it was announced consolidation of all centers in network based on a single software platform. Infrastructure of Xerox, thus, can be used with bigger efficiency global corporations.
1961: Renaming into Xerox Corporation
- 1961 — the company is renamed into Xerox Corporation. The profit of the company was about $60 million.
- 1965 — profit exceeded $500 million.
1947: Purchase of the patent for the copier
1947 - Haloid Company purchased the patent of the copier invented by Chester Carlson. Copying of documents received the name "xerography" (from Greek Sukhoi and "writing"), and Carlson suggested to call the device "copier".
- 1949 - the first copier — Model A is released.
- 1958 - the popularity of the device for copying of Xerox 914 led to renaming of the company into Haloid Xerox
1906: Foundation of Haloid Company on production of photographic paper
1906 - the basis in the city of Rochester (the State of New York, the USA) of Haloid Company. The enterprise was engaged in production of photographic paper.
- ↑ Xerox Exceeds Cash Flow Guidance, Grows EPS and Announces 2019 Guidance that Includes Further EPS Expansion
- ↑ Xerox Files Allegedly Stolen By Maze Ransomware Group: Reports
- ↑ Xerox refused a hostile takeover of HP because of a situation with a coronavirus
- ↑ Xerox courts HP shareholders as takeover battle heats up
- ↑ Xerox Secures of $24 Billion in Binding Financing Commitments for HP Acquisition
- ↑ Xerox calls off of $6.1 bn sale to Fujifilm
- ↑ Fuji Xerox and Xerox to combine to become a new Fuji Xerox
- ↑ Xerox Reports Strong Fourth-Quarter 2017 Results; Delivers on Full-Year Commitments
- ↑ Xerox To Spend of $100 M In 2017 To Acquire More Multi-Branded Resellers, Get Into Emerging Markets
- ↑ Xerox, With Icahn, to Split Into Two in Push Toward Services
- ↑ of CNews: Era of great splits: The Xerox corporation will collapse in two
- ↑ Xerox Reports Fourth-Quarter 2015 Earnings
- ↑ Icahn May Seek Xerox Board Seats
- ↑ Xerox PARC's new chip will self destruct in 10 seconds
- ↑ [http://dealbook.nytimes.com/2014/12/18/xerox-sells-outsourcing-business-to-atos-for-1-billion/ Xerox Sells Outsourcing Business to Atos for of $1 Billion
- ↑ French Computer-Services Company Atos to Buy Xerox’s IT Outsourcing Unit
- ↑ Xerox Reports Fourth-Quarter 2014 Earnings
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