Earnings for the April-June period were down due to restructuring charges amounting to $63m during the second quarter as the group tried to improve its gross margin.

This involved a cut in selling, administrative and general expense, which resulted in a 1,000 staff being cut, mainly in North America.

Xerox chairwoman and chief executive Anne Mulcahy said: "Our annuity-based global business led to steady revenue growth this quarter along with earnings and cash in line with our expectations."

Total revenue of $4.5bn grew 8% during the quarter but revenue on equipment sales only increased 2% to $1.16bn from $1.141bn in 2007.

The figures equate to second-quarter earnings of 24c per share, including the company's previously announced restructuring charge of 5c on each share.

Xerox claimed the results fall in line with its full-year earnings expectations of between $1.26 and $1.30 on each share.

Post-sale revenue, which represents more than 70% of the company's total revenue and encompasses products such as ink, increased 10% to $3.37bn in the period from April to June.

The company has also reaped the benefit of its £757m acquisition of Global Imaging Systems, which was completed in May 2007.

During the second quarter, Xerox generated $442m in operating cash flow while also repurchasing $377m in Xerox shares ahead of an additional $1bn share repurchase, which was authorised at the end of last week.

Mulcahy added that the company is "seeing consistent positive performance in the small and mid-size business market, with strong results from our developing markets and Global Imaging operations".

Xerox expects its third-quarter earnings to be in the range of 28c to 30c per share, which will help maintain its full-year earnings expectations of $1.26 to $1.30 per share.

Xerox second quarter results in brief

Profit down 19% to $215m from $266m in 2007
Total revenue up 8% to $4,533m
Equipment sales grow 2%
Operating cash flow at $442m
Full-year expectations of $1.26-$1.30 per share