Xerox Reports Second-Quarter 2011 Earnings

Second-quarter gross margin was 33.4 percent, and selling, administrative and general expenses were 19.9 percent of revenue. Operating margin of 10.4 percent was up 0.3 points from the second-quarter 2010.

Xerox generated $347 million in operating cash flow during the second quarter. For the full year, the company lowered guidance to $2 billion to $2.3 billion in operating cash flow. Xerox reiterated its plan to use $1 billion in available cash for modestly-sized acquisitions and share repurchase. The company expects to resume its stock buyback program in the third quarter and plans to repurchase approximately $700 million of stock through the second half of this year.

Xerox expects third-quarter 2011 GAAP earnings of 20 cents to 22 cents per share. Third-quarter adjusted EPS is expected to be 24 cents to 26 cents per share.

The company raised its full-year 2011 GAAP earnings expectations to 91 cents to 96 cents per share. Full-year adjusted earnings are expected to be $1.07 to $1.12 per share.

For more information, visit www.xerox.com.