Xerox sees a loss in the 3rd quarter but says demand for products remains strong
Xerox is reporting a loss in the 3rd quarter numbers released on Tuesday, and revenues that are relatively flat.
The company reported a loss of $383 million compared to a profit at this time last year. The loss includes a ‘goodwill impairment charge’ related to current financial pressures. The ‘adjusted’ earnings, without that impairment charge, saw Xerox record a $65 million dollar profit, down about 12% from the same quarter in 2021.
Xerox saw revenues of $1.75 billion, down slightly from last year, but up nearly 5% when currency fluctuations are taken into account.
Steve Bandrowczak, who took over as CEO this past summer after the death of John Visentin, said that profitability for Xerox “remains challenged by persistently high inflation and continued supply chain constraints.”
The quarterly report does say that revenue growth in the 3rd quarter reflected the benefit from recent acquisitions as well as demand for Xerox’s products and services in what is “an increasingly challenging macroeconomic environment.”
Even with concerns about the worldwide economy, Xerox said in its financial statement that it is not seeing “a material pullback” in demand for its products and services, but it beginning to see longer timelines for companies that are planning projects.