Xerox Unveils Future Plans

Xerox Corporation (XRX - Analyst Report) recently offered an overview of its long-term strategic plans to increase shareholder value through an optimum mix of margin expansion and growth in services, focus on vertical markets and innovative technology and services. The news boosted investor sentiment as the shares gained 4% to close at $10.69 on Nov 12.

The Key Initiatives

In order to better adapt to the evolving market trends, Xerox has continually realigned its business model by expanding indirect distribution channel and streamlining its supply chain and product portfolio. Going forward, the company expects to increase revenues from the Services segment to 66% of total revenue by 2017 from 56% at present.

To achieve this objective, Xerox is focusing more on vertical markets like healthcare. The company has already begun to reap huge benefits from Medicaid Management Information System (MMIS) through the successful implementation and CMS (Centers for Medicare and Medicaid Services) Certification in 31 state Medicaid programs.
In addition, proprietary software developed by its subsidiary PARC has gained wide acceptance in the industry to combat fraud, waste and abuse in healthcare applications. Xerox has also launched health insurance exchanges in Nevada, Kentucky and other states to further strengthen its position in the healthcare services market.

In tune with the increased demand for connectivity and mobility, Xerox is integrating its market-leading Managed Print Services (MPS) with its business process and IT outsourcing capabilities. MPS enables clients to gain visibility and control of printing to save money, improve productivity, boost environmental sustainability and document security. The integration will automate workflow with technology and consulting services to help clients meet the requirements of mobile workforce. 

At the same time, Xerox is continuing its thrust for leadership in Document Technology with innovative products in order to meet the demands of customized communications in digital printing. These include waterless and inkjet-based solutions that enable print providers to deliver tailor-made services.

Fiscal Outlook

Xerox also provided its initial guidance for 2014 and reiterated its guidance for full year 2013. GAAP earnings for 2014 are expected to be in the range of 93 cents to 99 cents and adjusted earnings are expected between $1.10 and $1.16. The company expects operating cash flow to range from $1.8 billion to $2.0 billion in 2014.

Xerox increased its authorization for share repurchases by $500 million to bring the tally to approximately $1.5 billion. The company anticipates spending up to $500 million on acquisitions and $300 million on dividends in 2014.

Headquartered in Norwalk, CT, Xerox is a leader in the development, manufacture, marketing, servicing and financing of document equipment across the world. The company also provides extensive leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size.

Business Imaging Expo Less than Four Weeks Out

The Business Imaging Expo, being put on by 1105 Media, is set for Dec. 10-12 at the Mandalay Bay Convention Center in Vegas. The event is aimed at Office Imaging vendors, dealers, and channel and is expected to draw around 1,500 total attendees, including 75-100 vendor exhibitors.

A pair of executive summits kick things off on Tuesday, Dec. 10: one on MPS, and the other on workflow, which has a focus on ECM and document imaging technologies. Featured speakers include Pam Doyle of Fujitsu, Bruce Orcutt of Kofax, and Ron Glaz of IDC.

“This is a brand new event that is a mix of everything we cover,” said Amy Weiss, editorial director for 1105 Media’s Office Technology Group. Weiss oversees three publications: Recharger Magazine, The Imaging Channel, and Workflow. “We see this event as really representing the future of the office imaging market. The tagline features ‘service, supplies, and solutions’ and we see opportunity where those three areas converge. We hope to provide some cutting edge content and information for attendees looking to address the future of the market."

Early-bird rates are in effect until Nov. 15. You can register online at businessimagingexpo.com/events/bix2013

Rule No.1 for Medium to Large business – Continue to build your MPS capability

Posted on November 4, 2013

MPS is growing both in size and scope, moving down market from traditional enterprise accounts where it began into large and midsize businesses. But with growth comes competition, and differentiating in a services business is always a difficult task. Meanwhile, the market has seen some commoditization of MPS – particularly in basic fleet-management services, where opportunities for differentiation are limited.

For the most part, MPS today is promoted as a means to reduce print costs, drive print reduction and, to some extent, improve overall sustainability. Most MPS providers take this narrow view on the MPS value proposition because it tugs at the heart of businesses focused on reducing costs. It is an effective message for capturing competitive devices, thereby increasing the number of pages under contract.

Most market research firms continue to position MPS as a growth opportunity, although the aggressive growth rates that were projected just a couple of years ago are no longer the norm. Of course, the future of MPS is tied directly to the future of office printing. If office printing is declining, what are the prospects for MPS?

There is no question that office print volumes are declining. The challenging economy has put pressure on businesses to reduce costs, and printing is one area that has seen a substantial impact. Hardware placements have declined steadily, and it is unlikely that we will see unit shipments reach prerecession levels ever again. Most market research firms are predicting slight declines in page volumes over the next few years, but market indicators suggest that we might see even more aggressive declines.

In short, today’s office printing market is saturated, with overcapacity and underutilization of current products to boot. This is one of the reasons why MPS resonates so well with customers looking to gain control of their printing fleet. Yet the overall market remains challenging for providers looking to grow their business. The installed base is declining slightly, with fewer pages printed per device. The result is a market with fewer pages, lower CPC rates and shrinking supplies profits.
http://theimagingchannel.com/articles/2013/10/01/palmer-mps-strategy.aspx