Xerox Profits Drop, Partly Due To Healthcare Changes
Xerox is reporting first quarter earnings which show a decline in profits, partly due to changes in health care.
The company earned $281 million for the quarter, five percent less than last year. Earnings per share of 27 cents beat expectations, but after special charges, they were essentially flat with last year.
Xerox spokesman Karen Arena says profits were impacted by changes in the healthcare system which affected the company's government healthcare business.
“We’re working very closely with our customers, but as our CEO said we can’t do it fast, we have to do it right, especially when you’re talking about people and their health care.”
Sales were down overall about two percent, which Xerox facing continuing declines in the sale of document technology as it shifts to more of a services business. Document technology sales were down about 4 percent.
At Brighton Securities, George Conboy calls this a lackluster quarter for Xerox. He says for the stock price to really move, investors are going to have to see more revenue growth.
Xerox has done a good job in growing the services side while their technology side has shrunk , but on a net basis, the company has been treading water, and until they can get ahead of that, investors are not really going to sit up and take notice.
Xerox now employs around 6600 people in the Rochester area, which is up about 200 from the previous quarter.