The following appears on democratandchronicle.com
Print isn’t dead, by any means. But at Xerox Corp., it’s not all hale and hearty, either.
The Connecticut-based printing and business process outsourcing giant announced its latest quarterly earnings Friday. And the three months ending June 30 marked the ninth straight quarter of year-over-year declines in revenues, with the same pattern again and again — Xerox’s services business growing, but not enough to offset the declines in its printing-related work.
Xerox CEO Ursula Burns said the business services business’ profit margins were hurt somewhat by costs in the work it is doing in government health care, particularly related to the state of Nevada deciding in May to fire Xerox as the operator of its state health insurance exchange.
“There are bright spots and positive trends, but we still have work — more work to do,” Burns told Wall Street analysts in a conference call Friday.
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Chief Financial Officer Kathryn Mikells told analysts that the company expects to see government health-care-related bookings up in the second half of the year. That could include a particularly large, $500 million contract to run New York’s Medicaid system — that contract still is receiving state approvals.
For the quarter, Xerox had revenues of $5.3 billion, 2 percent less than the same three months a year earlier. While the company’s business process outsourcing arm was up 2 percent, and today accounts for 57 cents of every dollar the company takes in, its Document Technology arm was down 6 percent.
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