Xerox managed to increase its profit margins during the first quarter of 2011, information released by the company states. The Xerox Corporation's revenue for the quarter soared, and costs relating to the acquisition of Affiliated Computer Services were cut. The company's net income was $281,000,000, which works out at around nineteen cents per share. In the same period a year before, the company lost $42,000,000; around four cents per share. As the New York Times reports, sales of Xerox-made products increased 16%, reaching an overall of $5.47 billion dollars.
Sales of equipment and supplies, surprisingly, did not change vastly during the time period, despite the large increase in revenue. Analyst Keith Bachman of BMO Capital Markets described the changes as the following:
“It’s uninspiring,” Mr. Bachman said. “It’s a reasonable report, but it doesn’t give anybody a reason to go out and buy the stock.”
Xerox has been downsizing its business, including the loss of 5,000 jobs during 2010, in order to integrate the business more readily with Affiliated Computer Services. The takeover could eventually prove massively advantageous, however, as the company could save up to $375 million. Xerox has said that their rising revenue does not reflect their sales quite accurately, as the company experienced issues due to the earthquake in Japan. A joint venture between Fuji and Xerox allows Fuji to distribute Xerox-manufactured goods in Asian countries, including Japan and China. While the Fuji Xerox factory was not damaged by the incident, the earthquake disrupted supply lines and caused other issues for the factory.