Xerox revenues flat in 3rd quarter; results impacted by the pandemic
Xerox is reporting 3rd quarter results, numbers that saw an impact from the COVID-19 pandemic.
Xerox saw revenues of $1.76 billion, essentially flat compared to last year, but they came in slightly below analysts’ expectations.
Net profits were down compared to last year at this time, but earnings per share of $.48 came in above Wall Street estimates. Net income of $90 million was lower than the $220 million in profits Xerox posted last year at this time.
Xerox is certainly not alone among businesses affected by the COVID-19 pandemic, and for this company, which still has substantial operations in Rochester, the impact is due in part to so many Americans who have been working from home.
Xerox CEO John Visentin said that the pandemic and the Delta variant caused delays in many of the company’s clients’ plans to return employees to the office.
That means Xerox wasn’t selling some of the printer supplies it would have expected its customers to be purchasing. Visentin said that problems with the global supply chain also caused issues, such as shortages and transportation delays involving Xerox products and third-party IT hardware.
Xerox expects the ongoing effects of the pandemic to continue to affect revenues and profit margins into 2022, so the company is lowering its revenue expectations for the current fiscal year.
But Xerox officials said the company does have a strong balance sheet and has built a leaner and more flexible cost structure.