Xerox reports first quarter profit rise

Colour remains a key focus for the copier and printer vendor

Xerox profits increased 17 per cent in the first quarter of the year to $233m, on sales that rose four per cent to $3.8bn.

“Xerox’s growth strategy focuses on increasing our install base of digital technology through new products and broader distribution, strengthening our leadership in color, and expanding our services business. Success in these areas builds a healthy annuity stream that serves our company well for the long term,” said Anne Mulcahy, Xerox chairman and chief executive.

“Our results in the first quarter show that the strategy is working. We delivered solid activity gains, grew color revenue, and signed big deals for Xerox’s document management services – all of which contribute to steady annuity growth."

Sales from color grew 17 per cent in Q1 and now represents 37 per cent of Xerox’s total revenue, up four points from the first quarter of 2006, while Xerox's office business saw total sales increase two per cent.

The copier and office equipment manufacturer said it planned to more than double its number of product launches this year and had already introduced 19 new products since the start 2007, half of which were color products, surpassing the total 14 product launches it made in 2006.