Xerox Corp (NYSE:XRX) reported increased second quarter profit, up to US$166mln from US$158mln in the same period of 2016.
Despite the profit growth, which was better than expected, the company had lower revenues at US$2.57bn down from US$2.79bn, with ‘post-sale’ accounting for just shy of 80% of total revenue.
“We are pleased with the strong operating margins and cash flow we delivered, as well as the continued progress on our strategic transformation initiatives,” said Jeff Jacobson, Xerox chief executive.
“This resulted in solid operating results despite revenue declines, which were driven by lower equipment sales as we transition to the recently launched ConnectKey portfolio.”
He added: “The new product line-up has been met with enthusiasm by customers, partners and industry experts, fueling our confidence in improving revenue trends later this year and into next.”