Xerox is reporting earnings and sales that are lower than last year.
The report generally wasn't a big surprise. Profits that fell 20 percent to $225 million dollars in the quarter, and sales that were down about 6 percent, were pretty much in line with Wall Street estimates., as were earnings per share of 21-cents.
But what analysts may not be as encouraged about is the fact that Xerox is lowering its guidance for what it expects for the rest of the year.
Xerox spokeswoman Karen Arena says the services business continues to be the growing part of the company's business as opposed to equipment sales.
"Our growth in services was offset by declines in the document technology business. Many of the services business, they performed well in the quarter, including document outsourcing, and several other commercial industry groups."
At Brighton Securities, George Conboy says a main reason that sales were down was due to currency fluctuations overseas, but some of these numbers were still a disappointment.
"We certainly expected softness from the U.S. dollar being higher, most large corporations are being affected by that, but Xerox's sales were actually down above and beyond currency, that wasn't expected and profits are coming in softer than expected as well."
Worldwide, Xerox says it reduced employment by about 1200 people. But the company says there was not a big change in Rochester area employment which is now about 6575.
