Xerox is reporting sharply lower profits and sales in its 4th quarter; as with a lot of companies, Xerox is feeling the effects of the coronavirus pandemic.
The company is reporting $77 million in net profits in the quarter, down about $818 million from a year ago.
Earnings-per-share of .58 cents came in slightly less than Wall Street predicted, and that EPS was down about 56% compared to a year ago.
Revenues of $1.93 billion dollars came in slightly higher than the analysts’ estimates, and that sales figure was down 21% from a year ago.
Xerox Vice Chairman and CEO John Visentin said that he’s proud of the way his team worked together in a time of adversity, while delivering positive earnings per share and continuing to invest in the future.
Visentin said the company tightly controlled expenses while supporting clients, and he also said that while the impact of the pandemic continues in 2021, Xerox expects to return to growth this year as it increases the breadth of its offerings and works to reach new customers.
Xerox saw a reduction of 750 employees worldwide in the 4th quarter compared to the previous year, partly due to attrition. The worldwide workforce last December was down 2,300 employees for the year overall compared to the previous year.
The company’s 4th quarter earnings statement says that the pandemic significantly impacted sales due to business closures and capacity restrictions on office buildings.
Xerox says its strategy going forward includes focusing on growth areas such as IT services and software.
The company is structuring its software, financing and innovation organizations as separate and distinct businesses by 2022.