Although sales were down 18.9% year on year at $1.77bn (£1.35bn), the figure was up $302m on the previous quarter. Adjusted operating margin slipped from 12% to 7.4%, but again improved on the previous quarter.
Chief executive John Visentin said that “flexibility and financial discipline” had helped the business increase earning and cashflow.
“While we can’t reliably predict the ongoing economic impact of the pandemic, we are prepared to respond however events unfold and are committed to delivering positive cash flow and earnings in the fourth quarter,” he stated.
“Investments in digital solutions and services are paying off as companies prepare for a more hybrid work experience that shifts seamlessly between the office and home.”
Xerox also stated that it grew its market share in production printing in the Americas and EMEA.
However, sales of high-end equipment were down, primarily because of “lower installs of our Versant entry-production colour, Iridesse and iGen production presses” Xerox said.
The reduction was partially offset by higher installs of the cut-sheet Baltoro inkjet presses.
High-end production device sales were down 28% at $69m in the three months to 30 September.
Xerox said that the rate of decline of equipment installations during Q3 had improved, as had printed-page volumes.
It said it had modelled various recovery scenarios and expected to deliver “positive earnings and free cash flow in the fourth quarter”.
“However, the ongoing resurgence of the virus around the globe, and the impact it is having in forcing new restrictions and lockdowns, leads us to anticipate that our revenues will continue to decline significantly as compared to the prior year, as businesses hold off or delay purchases until there is a more certain path to controlling the pandemic and to economic recovery,” the company stated.
Xerox is planning a virtual product launch event later this month, billed as ‘Dreams In. Prints Out’, with five production print product innovations set to be showcased.
Topics will include printing beyond standard CMYK and the latest updates to the Xerox FreeFlow workflow system.
