Additionally, the company’s Board of Directors authorized a review of its business portfolio and capital allocation options, to enhance shareholder value. The company completed the divestiture of its information-technology outsourcing operations this year and made purchases including medical-management service provider RSA Medical.
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Xerox, best known as a maker of printers and copiers, reported quarterly revenue below analysts’ average estimate and said it would undertake a “comprehensive review of structural options”.
Xerox has been hit hard by the reduction in corporate spend for printing in order to cut costs.
Xerox had announced an update regarding the strategic direction of its Government Healthcare Solutions (GHS) business, specifically addressing the implementation of its Health Enterprise (HE) Medicaid platform in California and Montana.
Net loss attributable to the company for the quarter was $34 million or $0.04 per share compared to net income of $266 million or $0.22 per share in the prior year.
Excluding the non-recurring items, adjusted earnings (from continuing operations) for the reported quarter were $258 million or 24 cents per share versus $306 million or 26 cents per share in the year-earlier quarter. But GAAP (Generally Accepted Accounting Principles) earnings per share amounted to a loss of 4 cents per share because of amortization and other transactions.
Cash flow from operations is expected to run $1.6 billion to $1.7 billion in 2015, while free cash flow from operations ranged from $1.3 billion to $1.4 billion.
The company forecasts the fourth quarter adjusted EPS to be within the range of $0.28-0.30 and GAAP EPS of $0.23-0.25.
Revenue slipped 10% to $4.33 billion.
The document technology business fell 12% to $1.8 billion in revenue.
Revenues from the Services segment, which include Document Outsourcing (DO) and Business Process Outsourcing (BPO) decreased 8% year over year to $2,416 million in the reported quarter.
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For full-year 2015, Xerox expects GAAP earnings at the low end of $0.46 to $0.52 per share and adjusted EPS at the low end of $0.95 to $1.01 per share. Analysts expect annual earnings of $0.95 per share. Finally, Piper Jaffray reissued a “buy” rating and set a $15.00 price target on shares of Xerox Corp in a research report on Friday, August 28th.
