Earnings Call Excerpt
Xerox Corporation (XRX)
Q4 2007 Earnings Call
January 24, 2008 10:00 am ET
Executives
Anne M. Mulcahy – Chairman and Chief Executive Officer
Lawrence A. Zimmerman – Executive Vice President and Chief Financial Officer
Analysts
Shannon Cross - Cross Research
Ananda Baruah - Bank of America Securities
Ben Reitzes - UBS
Carol Sabbagha - Lehman Brothers
Bill Shope – JP Morgan
Matthew Troy - Citi Investment Research
Jay Vleeschhouwer - Merrill Lynch
Presentation
Operator
Good morning and welcome to the Xerox Corporation fourth quarter 2007 earnings release conference call hosted by Anne Mulcahy, Chairman and Chief Executive Officer. She is joined by Ursula Burns, President; and Larry Zimmerman, Executive Vice President, and Chief Financial Officer.
During this call Xerox executives will refer to slides that are available on the web at www.xerox.com/investor. At the request of Xerox Corporation today’s conference call will be tape recorded. Other taping and/or rebroadcasting of this call are prohibited without express permission of Xerox. After the presentation, there will be a question and answer session. (Operator Instructions)
During this conference call Xerox executives will make comments that contain forward-looking statements which by their nature address matters that are in the future and are uncertain. Actual future financial results may be materially different than those expressed herein.
At this time I would like to turn the meeting over to Mrs. Mulcahy. Mrs. Mulcahy, you may begin.
Anne M. Mulcahy
Thank you Lauren, and thanks to all of you for joining us today. If you will turn to slide four, we will provide you with summary of our fourth quarter performance. We delivered Q4 EPS of $0.41 at the high end of our guidance resulting in full year earnings growth of 13%. It is consistent, steady momentum that reflects the effectiveness of our annuity based business.
Total revenue including the benefit of acquisitions was up 11% this quarter to $4.9 billion. Post sale revenue, which accounts for about 70% of our total revenue, grew by 12% lead by a steady pace of install activity, color, and document services. And currency gave us a 4 point benefit.
New color products and high take volume from Xerox color systems continued to generate positive results. Color revenue grew 14% in the quarter and it now represents 40% of total revenue.
Our gross margins were 40.5% in the fourth quarter, down about half a point from Q4 ’06 and in our range of expectations for the year. Selling, administrative, and general expenses were 24.3% of revenue, up about a point.
- To read the full transcript on Seeking Alpha, click here »
