Expects fourth quarter 2011 GAAP earnings per share of 28 cents to 31 cents
Xerox has reported revenue of $5.6b for the third-quarter 2011, an increase of 3% over the same quarter previous year.
The company’s third-quarter 2011 earnings per share was 26 cents, up 18% from third-quarter 2010, while adjusted EPS excludes 4 cents related to the amortisation of intangibles, resulting in GAAP EPS of 22 cents.
Third-quarter gross margin was 32.7%, while operating margin was 9.6%, which was up 0.4 points from third-quarter 2010.
Xerox generated $366m in operating cash flow during the third quarter.
Revenue from technology, representing the sale of document systems, supplies, technical service and financing of products, was up 1%.
Xerox chairman and chief executive officer Ursula Burns said they delivered steady revenue growth this quarter along with earnings and cash in line with their expectations.
"Our consistent performance positions us well to grow full-year adjusted EPS by 15% to 18%, reflecting our global strengths in business process and document management and the efficiencies we’re driving across our enterprise," Burns said.
"Supply constraints due to the natural disaster in Japan have eased considerably. As we continue to meet new demand, all while reducing our backlog, we’re confident these challenges are entirely behind us."
The company said revenue from services was up 6%, reflecting growth in business process and document outsourcing, while revenue from IT outsourcing was flat.
"Our services-led, technology-driven approach gives us a competitive advantage in the many markets we serve, especially as businesses and governments seek more efficient ways to run their operations and turn to Xerox for the long term benefits of our outsourcing expertise," said Burns.
"Notable in the quarter was 12% revenue growth in our document outsourcing business as we continue to lead the industry with our broad-based managed print services, and 6% growth in business process outsourcing."
Xerox expects fourth-quarter 2011 GAAP earnings per share of 28 cents to 31cents, resulting in full-year GAAP earnings per share of 92 cents to 95 cents.
The fourth quarter adjusted EPS is expected to be 32 cents to 35 cents per share, delivering full-year adjusted EPS of $1.08 to $1.11, the company said.