Colour installs, which were led by increases in the sales of its new DocuColor 240/250 multifunction printer and the firm's flagship iGen3, grew by 58%. Monochrome products, which include the Xerox 4110 light production system, increased by 19%.

"Equipment sales were impacted by a more significant shift in product mix with stronger sales of lower-priced systems," said Xerox chairman and chief executive Anne Mulcahy. "Demand and install activity accelerated for key products like entry-level colour production systems."

Mulcahy added that the firm's colour revenues rose by 5% to account for 32% of the total in 2005.

Fourth-quarter revenues fell 2% to 2.4bn ($4.3bn), while net income rose 18% to 159m. For the full year, revenues were flat at 8.9bn, while net income rose 14% to 553m.