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

August 24, 2014 | About: XRX +0%

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.

CONCLUSION
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.

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 www.xerox.com.

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.

3D Systems Reports Second Quarter Financial Results

by Brian Krassenstein · July 31, 2014

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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 slightly 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.

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 3DPB.com.

How Linkedin Can Find You The Perfect Prospect

How Linkedin Can Find You The Perfect Prospect

By mparker|Jul 1, 2014|

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Did you ever use telephone directories to help you sell print?

I remember when I joined my first publishing company as a production assistant. The sales team had an office area that was filled with shelves. On the shelves were huge amounts of directories. In those days, that was the easiest way to find contact details for people
Every few months a complete set of the Yellow Pages would be delivered (that was, and still is, the primary telephone directory in the UK.) Some poor person would be asked to lug parcel upon parcel of directories up to the sales office. The directories would easily take up the whole length of the office.

The odd thing was, I very rarely saw these directories being used. Sales people used to prefer to ring up prospects that were already on a list. Picking up the telephone directories to find new ones required too much hard work!

These days finding the right prospect is easy with LinkedIn
LinkedIn allows incredibly precise targeting of prospects.  Its search abilities are very powerful, even when using just the basic free version.
However, it is easy to be overwhelmed by the sheer number of prospects that LinkedIn can find for you.  That’s why it’s important to use the search feature as effectively as possible.
Here are three tips to help you find the right prospects on LinkedIn easily.  The first one actually has nothing to do with LinkedIn.

Know whom you want to connect with.
One issue that I come across is that many sales people try to sell to anyone who might want print.  If that’s your main criteria, then LinkedIn will probably find you millions of prospects!
In order to create a worthwhile search it is worth drilling down to define the right prospect for you.  Think about company size, market sector and geography.
A little time spent on this before you start can make the search process much easier.  It will get easier still if you remember the second tip.

Use the advanced search tool
On the LinkedIn homepage you will see the search bar.  It is at the top of the page In the centre.  To the right of the search bar is a little “advanced” button. If you click on this you will find a whole host of options to make your search more targeted.
To make the most effective searches, it is best to use keywords.  I also like to make sure that prospects are reasonably geographically close to me – or at least in the same country!
Here’s a screenshot of how I set up a recent search in the charity sector:






If you pay for the premium version of LinkedIn, you have the opportunity to filter much more selectively. Before contacting a prospect from your list, there’s one more action I recommend you take.

Check out the prospect’s profile
Do they have plenty of connections?  Do they have up-to-date recommendations?  Are they well endorsed?  What groups do they belong to?
You will get a good sense of whether they are actually active on LinkedIn.
There’s one more thing I would like you to do before you invite a prospect to connect.

CIT acquires technology specialist Direct Capital

CIT acquires technology specialist Direct Capital

CIT Bank has signalled its intention to expand its small business and middle market lending and equipment leasing capabilities, with the acquisition of  New Hampshire-based financial technology specialist Direct Capital Corporation which operates  an online lending platform serving this market.

The deal will see Direct Capital offer CIT’s broad range of products and services to its customers. Christopher J. Broom, co-founder and chairman of Direct Capital, and James P. Broom, chief executive officer will continue to lead the business. Terms of the agreement, which is due to close in the third quarter, have not been disclosed.

"Through its customer-centric approach and unique value-added technology platform, Direct Capital has established itself as a leader in providing small and mid-sized businesses fast, flexible and affordable financing," said Nelson J. Chai, president of CIT Group Inc., chairman and CEO of CIT Bank. "Direct Capital's proprietary online lending platform, LendEdge, will complement our existing small business and mid-market customer offerings as we continue to provide financing to these important sectors of the US economy.”

Since its formation in 1993, Direct Capital has provided more than 80,000 small and mid-sized businesses over $2.25 billion in equipment, franchise and vendor financing and lending solutions to grow their businesses. Direct Capital has assets of approximately $500 million and 250 employees.

Clover and MSE Announce Strategic Merger

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CHICAGO, IL – June 26, 2014 – Today, Clover, the global leader in the recovery, refurbishment, remanufacturing and redeployment of business and electronic assets and Micro Solutions Enterprises (MSE), the global leader in patented technologies for high quality remanufactured toner cartridges, announced their strategic merger. The meshing of these two world-class operations creates an impressive alliance that will greatly benefit both companies’ customers. The transaction is expected to close in late summer pending regulatory approval.

For 20 years, MSE has supported the global dealer community with OEM alternative products that are lauded in the industry for their quality, reliability and value. Since its inception in 1996, Clover has evolved from a remanufacturer of ink and toner cartridges to one of the largest global providers of world-class products and services including asset valuation, collections, reverse logistics, repair, remanufacturing, and resale for the imaging, wireless and telecommunications equipment markets.
Yoel Wazana, President and founder of MSE, had this to say about the MSE and Clover merger, “We have always approached this business with a spirit of innovation driven by engineering and a zeal to always strive for improvement. This new partnership will only enhance these core principles by providing more access to resources, engineering, technology, and world-class production facilities. Together with Clover, we will leverage the technology, R&D and QC global teams utilizing MSE’S intelligent re-engineering platform to bring better products and solutions to the marketplace.”
Avi Wazana, MSE’s CEO, echoed Yoel’s statement, saying “Clover’s leadership position in the recovery, remanufacturing and remarketing of technology assets will enable MSE to expand into new markets and products much quicker than we could have on our own. By capitalizing on our complementary strengths and utilizing Clover’s core collection programs, global footprint, logistics, and distribution capabilities to enhance availability and product line diversification, we will deliver unparalleled quality, value and service to our collective customers. This partnership will provide us the opportunity to make the MSE brand stronger than ever.”

CEO of Clover, Jim Cerkleski, concluded by saying, “We are excited about supporting our USA manufacturing base at MSE’s California facility with this merger. Our combined experience, skill sets and capabilities will create never-before-seen value for all of our customers. For a long time, MSE’s brand has been synonymous with quality and innovation. This strategic partnership allows us to work together to leverage MSE’S patented technologies and proprietary processes, as well as their unparalleled product development capabilities for the benefit of all of our global customer base. On a personal note, I am looking forward to working with the MSE executive and management team to maximize the benefit to our combined customers of MSE’s established expertise in quality and product development.”
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About Clover
Clover is the global leader in the recovery, refurbishment, remanufacturing and repurposing of business and electronic assets, including toner and ink cartridges, wireless devices, personal electronic devices and telecommunications equipment. Founded in 1996, Clover is one of the fastest growing, privately held companies in the United States with over 50 locations worldwide. Clover is also the world’s largest collector and recycler of empty ink and toner cartridges in the aftermarket imaging supplies industry and provides comprehensive recycling services for small electronics including wireless devices as well as electronic asset lifecycle management. The complete line of Clover’s quality toner and ink is available through leading office products distributors and resellers and marketed under a variety of private label brands. Additionally, Clover offers a comprehensive portfolio of products and reverse logistics solutions for wireless devices including private label programs. To learn more, visit www.clovertech.com.

About MSE
Founded in 1994 by Yoel Wazana, MSE is the largest toner cartridge remanufacturer with all of its production facilities based in the U.S., and a leading-edge innovator in the marketplace. MSE pioneered the process of Intelligent Re-EngineeringTM, which employs patented technologies, proprietary processes, and stringent testing methodologies that result in the market’s best alternative to high-cost OEM print consumables. MSE has sales and distribution in Canada, Europe (UK, Spain and the Netherlands), United Arab Emirates, South Africa, California, and Pennsylvania.