Thu, Aug 1, 8:45 PM (88 days ago)
For the quarter ending June 30, 2024, Xerox Holdings Corporation reported a revenue decline of 10.0% year-over-year to $1.58 billion, with a 0.4-percentage point currency impact. Equipment sales dropped 15.2%, primarily due to backlog fluctuations and non-strategic reductions. Post-sale revenue, which includes services, maintenance, rentals, and financing, fell 8.4%, driven by lower outsourcing and service revenue, IT endpoint device placements, and paper sales. Gross margin decreased by 1.0 percentage points to 33.0%, impacted by higher transportation and product costs. Selling, administrative, and general expenses (SAG) improved, dropping by $40 million due to cost-cutting measures. However, the bad debt provision increased by $18 million for the six-month period. Restructuring and related costs were $12 million, down from $23 million in the prior year. The company’s pre-tax income was $25 million, a significant improvement from a $89 million loss in Q2 2023, primarily due to the absence of a substantial one-time charge from the previous year. Adjusted operating income margin fell to 5.4% from 6.1% in Q2 2023. Cash flow from operations was $44 million, down $129 million year-over-year, mainly due to lower net income and higher restructuring payments. The company updated its full-year guidance, lowering revenue expectations to a decline of 5-6% in constant currency and adjusted operating income margin to at least 6.5%. Operating cash flow is now projected to be at least $600 million.