Despite the turnaround in profit, sales fell 8% to 2.5m, with almost 30% of the decline due to the companys exit from the SoHo equipment business.

Xeroxs director of corporate public relations, Christa Carone, said there was no cloud over the latest results despite the companys recent admission that it overstated its pre-tax income by 918m between 1997 and 2001 (PrintWeek, 5 July).

"To suggest that there is still a cloud over us in the light of recent events would be a mistake," she said. "The issues of the past are now behind us, and we feel we are moving forward."

Xerox will launch the DocuColor iGen3 digital press in the second half of the year, and Carone said the company expected to sell over 200 units by early 2003.

The new Phaser colour printers had attributed to an increased market share, added Carone, and while the high-end DocuTech range had suffered from a declining market, its market share had actually increased too.

Although Xerox does not expect its revenue to grow during the rest of 2002, it does expect to be profitable.

The company also took action to reduce costs across its operations by 112m during the first half of this year, a process that it said would continue.

Xerox will also continue to cut staff levels, having seen a fall of 2,200 in the second quarter to 72,400.

Xerox has won a 1m-plus contract from Service Point UK to supply DocuColor 2060 digital colour presses and DocuColor 12 printer/copiers.

The new deal will extend the Xerox offering at Service Point for its architectural, engineering and construction clients.

Service Points 24-hour sites in Glasgow, Manchester and London now run four 2060s in total. They can print up to 3,600 impressions an hour on each one.

Story by Andy Scott