May 30, 2006
UXBRIDGE -- At the company's annual shareholder meeting, Anne M. Mulcahy, chairman and CEO of Xerox, described Xerox's strategies for success and said a relentless focus on excellence will fuel shareholder value and deliver revenue growth.
"Because of the progress we're making, we're back in the driver's seat, in control of our own destiny, and in a position to leverage our balance sheet to create shareholder value - and that's precisely what we're doing," Mulcahy said.
Xerox earned $978 million on $15.7 billion in revenue in 2005, while generating $1.4 billion in operating cash flow and reducing debt by $2.8 billion from year-end 2004. Reflecting continued confidence in Xerox's performance, the board of directors authorised a $1 billion share repurchase plan - the first in eight years. As of April 30, the company had repurchased $676 million in Xerox stock.
Mulcahy noted that the company routinely invests about 6 per cent of its revenues in research, development and engineering - all based on customer need and all focused on areas where Xerox can deliver profitable revenue growth. Last year alone, Xerox launched 49 new colour and black-and-white digital presses, printers, copiers and multifunction systems along with an array of document management services and software to help people anywhere they work, from the office to the commercial print enterprise. Nine additional Xerox systems have been launched so far this year, including last week's announcement of the DocuColor® 5000 Digital Press and three WorkCentre® colour multifunction devices that print, copy, fax and scan.
Colour printing is rapidly becoming a business-critical tool for customers - and the number of colour pages printed on Xerox devices has doubled in the past two years. "Colour now represents more than 30 per cent of our total revenue," Mulcahy noted. "The potential for colour technology is as enormous as it is profitable."
In a market estimated to be worth $112 billion, Xerox's