Xerox to Review Operations As Revenue Falls 9.6%


Xerox, best known as a maker of printers and copiers, reported quarterly revenue below analysts' average estimate and said it would undertake a "comprehensive review of structural options".

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Xerox's shares were up nearly 1 percent at $10.43 in premarket trading on Monday.

Xerox and its rival printer makers Lexmark International and Hewlett-Packard have been hit hard as corporate customers reduce printing to cut costs and consumers shift to mobile devices.

Lexmark announced last week that it was exploring strategic alternatives and had hired Goldman Sachs to advise it on the process.

"Although we already have taken steps to accelerate cost reductions and prioritize investments to drive improved productivity and higher margins, our board determined that undertaking a comprehensive review of structural options for the company's portfolio is the right decision at this time," Xerox Chief Executive Ursula Burns said in a statement.

The company reported a net loss attributable to shareholders of $34 million, or 4 cents per share, in the third quarter ended Sept. 30, compared with a profit of $266 million, or 22 cents per share, a year earlier.

Excluding items, the company earned 24 cents per share.

Revenue fell 9.6 percent to $4.33 billion.

Analysts on average had expected a profit of 23 cents per share and revenue of $4.54 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Abhirup Roy in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)

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