Xerox Holdings Corporation announced its second-quarter 2020 financial results on 28 July 2020. Xerox reports Q2 revenue for is US$ 1.47 billion, a decrease of 35.3% year-over-year or 34.6% in constant currency or US$ 800 million. Operating cash flow from continuing operations US$ 34 million, down US$ 242 million year-over-year, and free cash flow is down to US$ 15 million from US$ 245 million year-over-year.
The adjusted operating margin of 4.2% is down 820 basis points year-over-year. The GAAP earnings per share (EPS) from continuing operations are US$ 0.11 per share, down US$ 0.49 year-over-year. And the adjusted EPS of US$ 0.15, are down from US$ 0.64 year-over-year.
“I am proud of our employees who did what was necessary during this unprecedented disruption to support our business and clients, especially those delivering essential services. While the bulk of our markets were fully or partially shut down during the quarter, our team’s financial discipline enabled us to deliver positive earnings per share and cash flow while continuing to invest in key areas of growth,” said Xerox vice chairman and CEO John Visentin. “No one can control or accurately predict what happens next. We have modeled numerous scenarios to ensure we have flexibility no matter how the pandemic continues to impact global business.”
Notably, Xerox added several Fortune 500 and public sector clients such as HM Land Registry; Ministry of Citizens’ Services, BC Mail Plus; Veterans Affairs of Montana & Wyoming; and Allianz.
The company expanded its software portfolio with the launch of the Xerox Team Availability App to support flexible workplace needs. It introduced the next-generation AltaLink C8100/B8100 Series with ConnectKey apps and automation that speeds digital transformation and supports workers in and out of the office.
Of interest to digital printers in India, Xerox has announced the Adaptive CMYK+ Kit for the Xerox Versant, an enhancement that allows print providers to offer higher value, embellishment solutions without a major investment. This adds seven special colours to the standard CMYK, claimed to make the press capable of producing ‘a million colour hues and shades,’ by adding gold, silver, white, clear and fluorescent colours.
Xerox has focused its development efforts around five ‘innovation pillars’ – 3D, sensors and the Internet of Things, clean tech, digital packaging, and Artificial Intelligence. The group said that the Covid-19 situation had accelerated trends and needs in some critical supply chain areas. “AccorXerox’s liquid metal 3D printing solution can help strengthen supply chains with locally manufactured parts, and we remain on track to deliver our first product by year end,” Xerox stated.