The report released yesterday (26 July) for the three months to 30 June also showed that the manufacturer’s adjusted operating profit dropped to $35m from $126m a year ago while it made a Q2 pre-tax loss of $5m, compared to a pre-tax profit of $99m at the same stage last year.

“While we mourn the passing of our leader and friend, John Visentin, we continue to be guided by – and benefit from – the four strategic initiatives he articulated for returning Xerox to long-term, sustainable growth,” said Xerox interim CEO Steve Bandrowczak.

“Our revenue grew in constant currency in the second quarter, driven by improving demand for our products and services and the realisation of pricing growth.

“Inflation and supply chain challenges affected margins this quarter, but we expect sequential margin improvement throughout the remainder of the year as we realise further price increases, Project Own It savings, and benefits from a more favourable supply chain environment.

“Strong demand and line of sight to margin improvement give us confidence to reiterate full-year guidance.”

Xerox is maintaining its revenue and free cash flow guidance for 2022. Its guidance, which assumes supply chain disruption will begin to subside and return-to-office trends will continue to improve throughout the second half of the year, is for revenue of at least $7.1bn in actual currency, free cash flow of at least $400m, and the return of at least 50% of free cash flow to shareholders.

Its free cash flow guidance excludes a one-time payment associated with a product supply contract termination charge.

Xerox’s share price closed at $16.38 yesterday following the release of the results, up 5.07% on Monday’s close of $15.59.