* Q1 EPS 5 cts vs loss 27 cents
* year-ago quarter included big one-time charge
* Revenue fell 18 percent, equipment sales down 30 percent
* cuts 2009 EPS view to 50-55 cents from $1.00-$1.25
(Recasts, adds results details, outlook)
NEW YORK, April 24 Xerox Corp (XRX.N) flipped
to a profit in the first quarter, but the leading provider of
digital printers and document management services forecast a
second-quarter profit weaker than analysts' views and cut its
full year earnings outlook nearly in half.
The company said revenue fell 18 percent in the first
quarter as slumping customer demand took its toll on sales of
printing equipment and supplies.
"During the first quarter, we saw an accelerated rate of
decline in enterprise spending on technology, especially in
Europe and developing markets," Anne Mulcahy, Xerox chief
executive, said in a statement on Friday, adding that the
company plans to focus on managing costs and generating cash.
Xerox derives some 70 percent of its cash flow from the
sale of supplies, financing and services to repeat customers.
But the economic downturn means that some companies are slowing
or shelving their plans to buy new equipment or order service.
Net income in the first quarter was $42 million, 5 cents a
share, compared with a loss of $244 million, or 27 cents a
share. The year-earlier period included a $491 million charged
related to a securities settlement.
Revenue fell to $3.55 billion from $4.34 billion.
Wall Street analysts had expected a profit of 4 cents a
share, on revenue of $3.55 billion, but it was not immediately
clear if results were comparable. Before Xerox late in March
slashed its outlook, citing the effects of the weak economy,
analysts had expected a profit of 17 cents a share.
The Stamford, Connecticut, company, which has rebounded
from fiscal troubles earlier this decade, spurred by solid
profits and improved market share, said it now sees
second-quarter earnings per share in the range of 10-12 cents.
Analysts had expected a profit of 14 cents, according to
It also said it sees 2009 earnings of 50 cents to 55 cents
a share, down from its previous target of $1.00 to $1.25.
Xerox stock closed on Thursday at $5.74 on the New York
Stock Exchange. The shares have climbed about 32 percent since
March 20, the day that Xerox warned its results would fall
short of company targets.
(Reporting by Franklin Paul; Editing by Derek Caney, Dave