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Company Profile of Xerox -
May 14th, 2011
Xerox Corporation (NYSE: XRX) is a Fortune 500 global document management company (founded in 1906) that manufactures and sells a range of color and black-and-white printers, multifunction systems, photo copiers, digital production printing presses, and related consulting services and supplies. Xerox is headquartered in Norwalk, Connecticut (moved from Stamford, Connecticut in October 2007), though its largest population of employees is based in and around Rochester, New York, the area in which the company was founded. On September 28, 2009, Xerox announced the intended acquisition of Affiliated Computer Services for $6.4 billion. The deal closed on February 8, 2010. Xerox holds a Royal Warrant from HM Queen Elizabeth II and the Prince of Wales.
Xerox was founded in 1906 in Rochester as "The Haloid Photographic Company", which originally manufactured photographic paper and equipment. The company subsequently changed its name to "Haloid Xerox" in 1958 and then simply "Xerox" in 1961. The company came to prominence in 1959 with the introduction of the Xerox 914, the first plain paper photocopier using the process of Electro-photography, (later changed to xerography) developed by Chester Carlson. The 914 was so popular that by the end of 1961, Xerox had almost $60 million in revenue. By 1965, revenues leaped to over $500 million. Before releasing the 914, Xerox had tested the market by introducing a developed version of the prototype 'Hand equipment', known as the 'Flat-plate' 1385. This was followed by the first automatic xerographic printer, the "Copyflo," in 1955. The Copyflo was a large microfilm printer, producing positive prints, on roll paper, from any type of microfilm negative. Following the Copyflo, the process was scaled down to produce the 1824 microfilm printer. At about half the size and weight this, still sizable, machine printed onto hand fed, cut sheet paper which was pulled through the process by one of two 'gripper bars'. This gripper feed system, when scaled down, was to become the basis for the 813 desktop copier.
In 1963, Xerox introduced the Xerox 813, the first desktop plain-paper copier, bringing Carlson's vision of a copier that could fit on anyone's office desk into a reality. Ten years later in 1973, a basic, analogue, color copier, based on the 914, followed. The 914 itself was gradually speeded up to become the 420 and 720. The 813 was similarly developed into the 330 and 660 products and, eventually, also the 740 desktop microfiche printer.
Xerox Corporation, virtually synonymous with photocopying, now touts itself as The Document Company. In addition to its flagship copiers, Xerox also makes production publishers, electronic printers, fax machines, scanners, networks, software, and supplies. The company is also a market leader in the area of document outsourcing services. Xerox markets its products in more than 130 countries. Its Xerox Limited subsidiary (formerly Rank Xerox, a joint venture with the Rank Organisation Plc of the United Kingdom) distributes Xerox products in Europe, Africa, the Middle East, and parts of Asia (including Hong Kong, India, and China). Xerox Co., Limited--a joint venture with Photo Film Company Limited--develops, manufactures, and distributes document processing products in Japan and the Pacific Rim (including Australia, New Zealand, Singapore, and Malaysia).
Xerox Corporation (Xerox) provides a portfolio of document technology, services and software, and the diverse array of business process and information technology (IT) outsourcing support. The Company has three segments: Technology, Services and Others. Technology includes the sale of products and supplies, as well as the associated technical service and financing of those products. the Company’s Services segment is consists of business process outsourcing, information technology outsourcing and document outsourcing services. The Company sells its products and services directly to customers through its world-wide sales force and through a network of independent agents, dealers, value-added resellers, systems integrators and the Web. In Europe, Africa, the Middle East and parts of Asia, the Company distribute its products through Xerox Limited
In February 2010, the Company acquired Affiliated Computer Services, Inc (ACS). ACS is a provider of diversified business process outsourcing and information technology services and solutions to commercial and government clients worldwide. In October 2010, the Company acquired TMS Health, LLC (TMS), the United States-based teleservices company that provides customer care services to the pharmaceutical, biotech and healthcare industries. In November 2010, the Company acquired Spur Information Solutions, Limited (Spur), the United Kingdom-based provider of parking enforcement computer software used. In January 2010, the Company acquired Irish Business Systems Limited (IBS). In September 2010, the Company acquired Georgia Duplicating Products, Inc., an office equipment supplier.
Entry consists of products sold principally to small and mid-size businesses through a worldwide network of independent resellers, and includes desktop monochrome and color printers and multifunction printers (MFPs) ranging from small personal devices to workgroup printers designed to serve the needs of demanding office users. The entry products include ColorQube 8570/8870, Phaser 7500 and WorkCentre 6400.
Mid-range comprises products sold to enterprises of all sizes, principally through Xerox-branded partners and its direct sales force. The Company offers a range of multifunction printers, copiers, digital printing presses and light production devices. The Company’s mid-range product portfolio includes Xerox WorkCentre 7120, WorkCentre 7545 and 7556 and Xerox Color 550/560 Digital Color Printer.
The Company provides high-end digital monochrome and color systems designed for customers in the graphic communications industry and for enterprises. These high-end devices enable digital on-demand printing, digital full-color printing and enterprise printing. The Company’s high-end product portfolio includes Xerox Color Press 800 and 1000 and Xerox iGen4 EXP.
The Company’s Services segment consists of three service offerings: Business Process Outsourcing (BPO), Document Outsourcing (DO) and Information Technology Outsourcing. The Company is a diversified business process outsourcing company, with focused offerings in education, transportation, communication, healthcare, government, finance and accounting services, manufacturing, consumer goods and retail. Its BPO service offerings are focused, transaction-intensive, back-office functions. Its BPO services include Human Resources Services, which provide a portfolio of human resources solutions ; Customer Care; Finance and Accounting Outsourcing, Healthcare Payer and Insurance, Healthcare Provider, Government Services and Solutions, Government Healthcare and Transportation Solutions.
The Company specialize in designing, developing and delivering effective IT solutions. The Company’s information technology outsourcing (ITO) services include Data Center Outsourcing, Mid-range Server Outsourcing, Network Outsourcing, Remote Infrastructure Management (RIM), Help Desk/Service Desk Management, Desktop Outsourcing, Managed Storage, Utility Computing, Utility Computing, Security Services, IT commercial services.
The Company specialize in the planning and delivery of the services, such as managed print services for workplace, production environments and virtual worker printing sites, consolidating in-house production and commercial printing under a single point of control, designing, authoring and translating technical and user documentation and creating personalized, multi-channel marketing communications.
The Other segment primarily includes revenue from paper sales, wide-format systems and geographic information system (GIS) network integration solutions and electronic presentation systems. Paper comprised approximately 58% of the revenues in the Other segment.
The Company competes with Canon, Ricoh, Hewlett-Packard, Kodak, Oce, Konica Minolta, Lexmark, Genpact, Teletech, Accenture, Aon Hewitt, Computer Services, IBM and Dell.
With its core office products businesses on the upswing, Xerox announced in January 1993 that it intended to exit from insurance and its other financial services businesses. Later that year Crum and Forster was renamed Talegen Holdings Inc. and was restructured into seven stand-alone operating groups in order to facilitate their piecemeal sale. This exit took several years, however, and was delayed when a 1996 deal to sell several units to Kohlberg Kravis Roberts & Company for $2.36 billion collapsed. During 1995 two of the groups were sold for a total of $524 million in cash. In 1997 three more were sold for a total of $890 million in cash and the assumption of $154 million in debt. Then in January 1998 Xerox completed the sale of Westchester Specialty Group, Inc. to Bermuda-based ACE Limited for $338 million, less $70 million in transaction-related costs. Finally, Xerox in August 1998 sold its last remaining insurance unit, Crum & Forster Holdings, Inc., to Fairfax Financial Holdings Limited of Toronto for $680 million.
As it was exiting from financial services, Xerox was also beginning to shed its image as a copier company. In 1994 Xerox began calling itself The Document Company to emphasize the wide range of document processing products it produced. A new logo included a red "X" that was partially digitized, representing the company's shift from analog technologies to digital ones. A number of new digital products were developed over the next several years, including digital copiers that also served as printers, fax machines, and scanners (so-called multifunction devices). From 1995 to 1997 revenue from analog copiers was virtually stagnant, even falling slightly, whereas revenue from digital products enjoyed double-digit growth, increasing to $6.7 billion by 1997.
Xerox also shifted focus from black-and-white to highly sought-after color machines, with revenues from color copying and printing increasing 46 percent to $1.5 billion in 1997. The most notable introduction here was the DocuColor 40, launched in 1996, which captured more than 50 percent of the high-speed color copier market based on its ability to print 40 full-color pages per minute. Revitalized new product development at Xerox resulted in the introduction of 80 new products in 1997 alone, the most in company history and twice the number of the previous year. More Xerox products were being developed for the small office/home office market, with prices low enough that the company increasingly marketed its products via such retailers as CompUSA, Office Depot, OfficeMax, and Staples.
However, the new Xerox was about more than just office products. The company introduced DocuShare document-management software in 1997, providing a system for users to post, manage, and share information on company intranets. Xerox also gained the leading market share position in the burgeoning document outsourcing services sector through the 1997-created Document Services Group. This group offered such services as the creation of digital libraries, the design of electronic-commerce systems for Internet-based transactions, as well as professional document consulting services. In May 1998 Xerox bolstered its Document Services Group through the $413 million acquisition of XLConnect Solutions Inc. (renamed Xerox Connect) and its parent Intelligent Electronics, Inc. XLConnect specialized in the design, building, and support of networks for companywide document solutions.
The mid-1990s also saw Xerox launch a restructuring in 1994, leading to 10,000 job cuts over a three-year period. In February 1995 the company paid The Rank Organisation about $972 million to increase its stake in Rank Xerox to 80 percent. Then in June 1997 Xerox spent an additional $1.5 billion to buy Rank out entirely. With full control of the unit, Xerox renamed it Xerox Limited. That same month G. Richard Thoman, who had been senior vice-president and chief financial officer at IBM, was named president and chief operating officer of Xerox, with Allaire remaining chairman and CEO.
In April 1998 Xerox announced yet another major restructuring, as its shift to the digital world led it to spend more on overhead than its competitors. The company planned to eliminate 9,000 jobs over two years, taking a $1.11 billion after-tax charge in 1998's second quarter in the process. The cuts came at a time when Xerox was enjoying record sales and earnings as well as a surging stock price, so the company was clearly proactive in maintaining the momentum it had gained through its impressive 1990s resurgence.
Principal Subsidiaries: Xerox Financial Services, Inc.; Xerox Credit Corporation; Xerox Realty Corporation; Xerox (UK) Limited; Fuji Xerox Co., Ltd. (Japan; 50%); Xerox Canada Inc. The company also lists some 275 additional subsidiaries in the United States, United Kingdom, Canada, Japan, Peru, Venezuela, Colombia, Netherlands Antilles, Panama, Brazil, Barbados, Chile, Mexico, Dominican Republic, Hong Kong, China, Egypt, Singapore, Australia, New Zealand, Taiwan, Belgium, Russia, Germany, Sweden, Switzerland, Denmark, Norway, Austria, Spain, Poland, Finland, Portugal, Italy, France, and elsewhere.
Market Cap (Mil.): $14,306.11
Shares Outstanding (Mil.): 1,401.19
Annual Dividend: 0.17
Yield (%): 1.67
XRX Industry Sector
P/E (TTM): 16.08 20.72 27.48
EPS (TTM): 36.71 -- --
ROI: 3.44 6.32 16.09
ROE: 7.63 7.04 17.67
Incorporated: 1906 as The Haloid Company
Sales: $18.17 billion (1997)
Stock Exchanges: New York Midwest Boston Cincinnati Pacific Philadelphia London Basel Berne Geneva Lausanne Zürich
Ticker Symbol: XRX
SICs: 3577 Computer Peripheral Equipment, Not Elsewhere Classified; 3579 Office Machines, Not Elsewhere Classified; 5044 Office Equipment; 7374 Computer Processing & Processing & Data Preparation Services; 7375 Information Retrieval Services; 7379 Computer Related Services, Not Elsewhere Classified
Name Age Since Current Position
Ursula Burns 52 2010 Chairman of the Board, Chief Executive Officer
Luca Maestri 47 2011 Chief Financial Officer, Executive Vice President
James Firestone 56 2008 Executive Vice President, President - Corporate Operations
Armando de Lima 52 2010 Executive Vice President, President - Xerox Global Customer Operations
Lynn Blodgett 56 2010 Executive Vice President; President and Chief Executive Officer of Affiliated Computer Services, Inc
Don Liu 49 2007 Senior Vice President, General Counsel, Secretary
Michael Cronin 57 2008 Senior Vice President, President - Global Document Outsourcing
Willem Appelo 46 2008 Senior Vice President, President - Xerox Global Business and Services Group
Russell Peacock 52 2010 Senior Vice President, President, Xerox North America
Leslie Varon 54 2010 Vice President, Vice President - Finance, Corporate Controller
Gary Kabureck 57 2003 Vice President, Chief Accounting Officer
Rhonda Seegal 60 2003 Vice President, Treasurer
James Lesko 59 2004 Vice President, Vice President - Investor Relations
Richard Dastin 51 2010 Vice President, President - Enterprise Business Group
Eric Armour 52 2010 Vice President, President - Graphic Communications Business Group
Jacques Guers 55 2010 Vice President, President, Xerox Europe
Kevin Warren 48 2010 Vice President; President - United States Customer Operations
Herve Tessler 47 2010 Vice President, President - Developing Markets Operations
Ann Reese 58 2010 Lead Independent Director
William Hunter 63 2004 Director
N. Nicholas 71 1987 Independent Director
Glenn Britt 62 2004 Independent Director
Richard Harrington 64 2004 Independent Director
Robert McDonald 57 2005 Independent Director
Mary Wilderotter 56 2006 Independent Director
Charles Prince 61 2008 Independent Director
Robert Keegan 63 2010 Independent Director
800 Long Ridge Road
Stamford, Connecticut 06904