Wednesday, August 27, 2014

Xerox Is Not Just a Photocopier but Much More for An Investor

August 24, 2014 | About:

The Company is an expanded business methodology outsourcing organization overseeing transaction-escalated methodologies. Mass-travel ticketing frameworks, digital printing equipment, bundling printers, wide-design scanners and digital document management system are all part of Xerox's present product portfolio. Xerox still makes printers and individual printers, as well, however those products are presently a minority part of its business blend. The vast majority of Xerox's top line is currently determined by administrations. Xerox Corporation caters to small businesses and large global business to focus on their core business.

Quarterly results barely missing the estimates
Xerox (XRX) as of late reported second quarter results. It posted a consolidated revenue of $5.292 billion, sequential growth as against $5.110 billion in last quarter, but dipped by 2% year-over-year. The company reported EPS of $0.27 beating consensus estimate just by $0.1, yet net income came in at $270 million scarcely missing estimate by $20 million.
The second quarter showed advancement in execution on the company’s business technique. In the services business, revenue gains and margins are inclining great in commercial services, document outsourcing and universally. The revenue for the service business (57% of total revenues) increased 2% year over year to $2,992 million in the quarter. Service sector margins gains were partially muted by sustained weight in the government health care business including unplanned injury charges.
The Document Technology business continued to perform solid benefit through a taught and compelling methodology to operations. Revenues in the Document Technology segment dipped 6% year over year to $2,125 million (40% of total revenues) due to a fall in equipment sales and annuity revenues.

The service business is the segment where investors ought to be centered, as this section will counterbalance the decrease in document technology. Xerox's extreme arrangement is to move far from being document based organization to one that is a high-margin outsourcing organization.
As the company steps into the second half of the fiscal, its stays focused around enhancing the advancement and exploiting new opening that will shape to achieve higher growth plan.
Xerox has altogether pre dominated the market since the start of 2013, with an increase of 92%, but, it still has a lot of room to climb. The company still has great assessment metrics and strong profit prospects; its cost price to free cash flow ration of 8.32 is the most minimal of all S&P 500 tech stocks. Furthermore, the organization is persistent on returning large chunk of money to its shareholder through repurchase programs and dividends.

Money for investors from strong cash flow
Xerox has been stringent on its share repurchase programs, this enables it to attain a higher confidence among its investors. The company has been paying regular dividends, forward annual dividend yield is at 1.91% and the payout ratio is only 25%. The annual rate of dividend growth over the past three years was at 8.1%, and over the past five years was at 4.8%. The dividend yield has now fallen below 2%, but I would not be surprised to see the company raise its dividend some point.
The organization produced $325 million in cash flow from operations amid the second quarter and $611 million for the first half of fiscal 2014. In the second quarter, Xerox repurchased $204 million in stock and $479 million in the first half of the year. Xerox bought $696 million of its shares in 2013, in the wake of repurchasing $1.05 billion of its stock in 2012.

Journey ahead
Moving ahead, Xerox hopes to realign its plan of action to better adjust to the evolving market scenarios by stretching out indirect distribution channel and streamlining its supply chain and rich product portfolio. Xerox additionally plans to center all the more on vertical markets like healthcare. Furthermore, it is consolidating its Managed Print Services (MPS) with business process and IT outsourcing capacities and proceeding with its pushed for authority in Document Technology.
For the next quarter, Xerox anticipates GAAP earnings to be in range of $0.21 to $0.23 per share, while adjusted earnings are expected to be within $0.25 to $0.27. It further has allocated budget of $500 million for new acquisitions with prime focus on services, this in turn will always leverage the top line in future.

Since Xerox produces heaps of money and the payout proportion is low, there is a decent possibility that it will keep on raising its dividend. The company continued to deliver large sums of cash back to shareholders, during the first half of 2014. Given current valuation and profitability, I won’t be wrong to anticipate a high rate of returns in the year to come which make me conclude that Xerox can be a high yield stocks in a longer run.

Thursday, August 21, 2014

New Multi-Function Devices from Xerox Simplify Office Productivity, Offer Cost Effective and Secure Printing

New Multi-Function Devices from Xerox Simplify Office Productivity, Offer Cost Effective and Secure Printing 

MENAFN Press - 20/08/2014

(MENAFN Press) New multi-function printers (MFPs) from Xerox (NYSE: XRX) offer increased productivity, flexibility, and reliability to simplify how work gets done for any workplace.

The new Xerox WorkCentre 5945/5955 is designed with true 1200 x 1200 dpi that delivers superior image quality and print speeds up to 45/55 pages per minute. With output as fast as seven seconds and a 4,700 sheet paper capacity “ the device helps businesses get more work done, faster.

The Xerox devices allow users to scan, share or print documents, with increased flexibility. The devices have single pass duplex scanning, at up to 200 images per minute, and the customizable single touch scan feature makes it easy to quickly send scans to email, PC or the cloud “ with just a touch of a button.

Equipped with Xerox ConnectKey technology, users can print from the device of their choice, making printing quicker and easier too. Xerox Mobile Print and Apple AirPrint allow users to print securely, from almost any mobile device, to any MFP, regardless of brand.

In addition, the WorkCentre's uses the latest Xerox Emulation Aggregation (EA) Toner, which can be replaced by any user, providing less user intervention and more uptime “ so businesses can focus on the work that really matters.

To help businesses stay ahead of data breaches and other security threats, the WorkCentre 5945/5955 is integrated with McAfee technology “ ensuring that only authorized users have access to the device.

About Xerox
Since the invention of Xerography more than 75 years ago, the people of Xerox (NYSE: XRX) have helped businesses simplify the way work gets done. Today, we are the global leader in business process and document management, helping organizations of any size be more efficient so they can focus on their real business. Headquartered in Norwalk, Connecticut, we have more than 140,000 Xerox employees and do business in more than 180 countries, providing business services, printing equipment and software for commercial and government organizations. Learn more at

Wednesday, August 6, 2014

Michael V. Ring resigns from his position as president of Xeikon North America
Itasca, IL, August 5, 2014 - Xeikon NV, an innovator in digital color printing technology, has announced the appointment of Patrick McCarthy and Todd Blumsack to lead its North American business operations effective immediately.According to Wim Maes, CEO of Xeikon, “Both Patrick and Todd are long-time industry veterans and have been with our company for the last several years. We are confident they will bolster Xeikon’s market position in North America and strengthen the group with their able leadership. We wish Patrick and Todd the very best for their new challenge.”

In his role as Vice President of Operations, Patrick McCarthy will lead the service and operations group in North America. In addition, he will also oversee accounting/finance, HR, IT and shipping/logistics functions of the business. Mr. McCarthy has been with Xeikon since the early 2000′s and has handled a broad array of executive roles and responsibilities during this time.

Todd Blumsack will now be the Vice President of Sales and Marketing for Xeikon North America. In this role, Mr. Blumsack has been assigned the responsibility to further expand Xeikon’s brand awareness and market share of high-end digital color presses in the label & packaging segment as well as the document & commercial printing segment. A 25-year veteran of the printing industry, Mr. Blumsack has been with Xeikon since 2008. Previously, he spearheaded the marketing efforts for the retail and bulk business units as Director of Marketing for Weyerhaeuser Company and built sales and marketing programs as Director of Marketing-Commercial Printing for Eastman Kodak Company. He has extensive experience in sales management processes, marketing, lead generation campaigns, hiring/training sales organizations and building sales promotions.

Michael V. Ring, the current president of Xeikon’s North American operations, joined the company in 2007 and was instrumental in realigning and growing the operations. Mr. Ring’s next logical step was a leadership position at the company headquarters in Europe. However, after much consideration, he decided not to accept this position due to the obvious impact it will have on his personal life.
“We would like to thank Michael for his significant contributions to Xeikon and wish him the very best in his future endeavors,” Mr. Maes added.
While Mr. Ring will no longer be involved in the day-to-day operations of the company, he will continue to support Xeikon for the remainder of 2014 regarding some of his industry association responsibilities.

About Xeikon
Xeikon is an innovator in digital printing technology. The company designs, develops and delivers web-fed digital color presses for labels and packaging applications, document printing, as well as commercial printing. These presses utilize LED-array-based dry toner electrophotography, open workflow software and application-specific toners.
As an OEM supplier, Xeikon designs and produces platemakers for newspaper offset printing applications.
Xeikon also manufactures basysPrint computer-to-plate (CtP) solutions for the commercial printing market. These proven CtP systems combine the latest exposure techniques with cost-efficient UV plate technology, high imaging quality and flexibility.

Friday, August 1, 2014

3D Systems Reports Second Quarter Financial Results

3D Systems Reports Second Quarter Financial Results

It’s that time of year again. Another quarter, another financial report by one of the world’s largest 3D printing company, 3D Systems. Just moments ago, they released their key numbers for the quarter, which have come in 3dsslightly below analyst estimates, both on the top and bottom lines.
Analysts were expecting to see revenue for the quarter at about $161 million, while the report indicates revenue of $151.5 million. Additionally, analysts had expected non-GAAP earnings of around 18 cents per share, whereas 3D systems reported just 16 cents per share.
“We are pleased that unit sales of our design and manufacturing printers increased 126% and helped fuel a 30% increase in materials revenue,” said Avi Reichental, 3D Systems’ President and Chief Executive Officer. “We believe that the record order book that we exited the quarter with reflects the vibrancy of our business and our organic growth trajectory.”
A few of the highlights from the second quarter financial results which are evidence of the growth that 3D Systems is experiencing are as follows:
  • Gross profit margin came in at 47.8%, quite a bit below last year’s second quarter numbers.
  • There was an increase of 38% in service revenues, compared to last year’s second quarter.
  • Revenue for the Design and Manufacturing areas of their business increased 28% over this quarter last year.
  • Revenue within the healthcare space increased 46% from last year’s second quarter.
  • Operating expenses were flat year over year, in spite of continued investments in R&D.
“As we advance our market leadership and scale in key verticals through our increased investments, our progress is ahead of schedule and our enterprise-wide synergies are already generating substantial cash from operations,” stated Reichental.
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As for their guidance over the remainder of the year, 3D Systems estimates are in line with what analysts had expected. They estimate non-GAAP earnings per share coming in for the year at $0.73 to $0.85, with revenue of $700 million to $740 million. Traditionally a larger portion of the company’s revenues are realized in the second half of the year, a trend which should continue this year as well.
There is no doubt that the company is seeing tremendous growth, and realizes that acquisitions and continued R&D are important factors to maintaining their lead on the competition as the 3D printing space continues to expand rapidly.
3D System’s stock (DDD) is taking a hit this morning, down $7.11, or 12.6% in pre-market trading. Complete financial results, including their updated balance sheet can be found here. Let us know what you think about this quarter’s financial results in the 3D Systems Results forum thread on