Xerox 3rd-quarter profit doubles
Xerox said Thursday it doubled its profit in the third quarter, helped by surging demand for its copying equipment and double-digit growth in service contracts.
The company also continued to benefit from its $6 billion acquisition of outsourcer Affiliated Computer Services, which was completed in February.
The company reported net income of $250 million, or 17 cents a share, for the quarter, compared with $123 million, or 14 cents a share, a year ago. Excluding one-time items, adjusted income was 22 cents per share.
Revenue rose 48 percent to $5.43 billion, helped in large part by the acquisition of ACS. On a pro-forma basis, with ACS in the company's year-ago results, total revenue grew 2 percent.
On average, analysts expected earnings per share of 21 cents and revenue of $5.45 billion.
Signings for service contracts jumped 26 percent.
Xerox has been transforming itself through its ACS acquisition, taking advantage of the trend by companies to spend more on technology as the economy slowly recovers. Other tech companies, such as IBM Corp., have been similarly shifting their focus toward services.
The Norwalk, Conn., company says that based on its momentum, it's raising its outlook for both this year and 2011. It also says it expects 2010 restructuring charges to come in $120 million above its prior estimates.