Kit sales dipped 30% in the quarter, although earnings were in line with expectations and the company recorded an operating cash flow of $22m.
Xerox pointed to businesses delaying purchasing decisions, particularly in Europe and the developing markets, and distributors reducing inventory levels as key reasons behind the drop in revenues.
Anne Mulcahy, Xerox chairman and chief executive, said the company was focused on cost and expense management, cash generation and strengthening its "number-one revenue share position".
"We’re making progress in all three of these areas and expect the flow-through from our actions to mitigate further economic challenges," she added.
The company said it would deliver $250m in savings this year thanks to previous restructuring initiatives, which included 3,000 job cuts announced in the latter part of 2008.
In addition, Xerox decreased its total debt by $485m in the first quarter of 2009 and plans to cut the total by more than $1bn across the year as a whole.
"As disciplined as we are in cost management, we’re equally determined to invest in growth, ensuring that Xerox is in an advantaged position as the economy improves," added Mulcahy.
The company is expecting full-year operating cash flow of $1.3bn, with full-year 2009 earnings to come in between 50-55 cents per share.
Xerox shares closed up 3.66% at $5.95 on Friday 24 April.
Xerox blames decline in kit sales for 18% revenue drop
Xerox has cited an "accelerated rate of decline" in enterprise spending on equipment as a major factor in its 18% drop in first-quarter revenues, which have fallen to $3.6bn (2.5bn).
