STAMFORD, Conn.- Xerox is well positioned to attack a $117 billion market opportunity thanks to the way it is executing its growth strategy, company chair and CEO Ann Mulcahy told shareholders Thursday.
“By just about any standard, we are making very good progress,” Mulcahy said. “The strategic bets we placed several years ago are paying off.”
During her message at the company’s annual meeting, Mulcahy noted that Xerox met its 2006 full-year expectations on earnings growth and cash generation, increased post-sale revenue – which represents more than 70 percent of Xerox’s total revenue – and strengthened its industry-leading portfolio of products and services.
Xerox earned $1.2 billion or $1.22 per share in 2006 (all figures in U.S. dollars). With $15.9 billion in revenue, the company generated $1.6 billion in operating cash flow and ended the year with cash and short term investments of $1.5 billion. The company bought back $1.1 billion of Xerox stock and saw its debt rating return to investment grade.
“It was a good year and we have every reason to believe we are on our way to a better one,” Mulcahy said.
Since the beginning of this year, Xerox has introduced 19 new products, half of which are color products, surpassing the 14 total product launches in 2006. The company plans to more than double its number of product launches this year. More than two-thirds of Xerox’s equipment sales come from products launched in the past two years.
Meanwhile through multiyear, multimillion dollar contracts, Xerox’s document management services generated nearly $800 million in annuity revenue in the first quarter of this year.
In the past 12 months Xerox bought XMPie, a developer of software for personalized multimedia campaigns; Amici LLC, a developer of e-discovery technology now offered as part of Xerox Litigation Services; and Global Imaging Systems, Inc., an office technology dealer that is a market leader in the U.S. SMB market.