Xerox is reporting lower revenues and a drop in adjusted net profits for its most recent quarter.
The company on Thursday reported second-quarter numbers that showed $1.58 billion in revenues, which was down 10% from a year ago.
Net income of $18 million was better than the loss that Xerox saw a year ago at this time, but those 2023 numbers were also impacted by some one-time charges.
On an adjusted basis for the most recent quarter, Xerox saw net income of $41 million which was down $31 million compared to last year’s second quarter.
A statement from CEO Steve Bandrowczak said that the “comprehensive and strategic operating model changes” implemented in the first quarter caused “a short period of disruption” but he said they are delivering intended improvements in financial results.
Bandrowczak said that momentum in orders, enhanced sales operations and new product initiatives are expected to drive a return to revenue growth in the second half of the year.
But Xerox also lowered its revenue guidance for 2024, from the previous guidance of a decline of 3% to 5% to a decline in revenues now expected to be in the 5% to 6% range.
Bandrowczak told analysts on a conference call Thursday that the company is increasing the use of incorporating artificial intelligence in some of its printers.
“The devices come with adaptive learning modules which save clients time by suggesting new and optimized workflows using AI-based algorithms to analyze device use patterns and user preferences,” Bandrowczak said.
He also said that other AI technology the company is developing can help Xerox clients with tasks such as helping the user summarize a document, and convert handwritten notes as well as automatically redact language from scanned documents.
At Brighton Securities, Chairman George Conboy said it is a “tough quarter” when any company sees a 10% revenue decline. As Xerox has increasingly emphasized its focus on developing technology, Conboy said the company faces a lot of competition in that area against “some very big players.”
Xerox announced early this year it was implementing a ‘Reinvention and Operating Model’ and it worked to streamline its organizational structure in an effort to align with the evolving needs of its clients.
Xerox this year cut some manufacturing operations in Webster, ending its print engine manufacturing operations at that plant.
In June, Xerox announced the relaunch of its Global Learning Excellence Center at the Webster campus which company officials said underscores Xerox’s commitment to workforce skills development and professional growth.