Equipment sales declined 14.7%, while Post sale revenue improved 1.2%.
Sales in the Americas rose 1.5% Y/Y, and EMEA fell 10.7%.
The gross margin contracted 370 basis points Y/Y to 31.9%.
The company reported an adjusted operating income of $35 million, a 72.2% decline Y/Y, and the margin contracted 500 basis points to 2%.
Xerox held $1.2 billion in cash and equivalents as of June 30, 2022.
Adjusted EPS of $0.13 beat the analyst consensus of $0.12.
“Inflation and supply chain challenges affected margins this quarter, but we expect sequential margin improvement throughout the remainder of the year as we realize further price increases, Project Own It savings, and benefits from a more favorable supply chain environment,” said interim CEO Steve Bandrowczak.
Outlook, reiterated: Xerox sees FY22 revenue of at least $7.1 billion in actual currency and a free cash flow of at least $400 million.
Price Action: XRX shares are trading higher by 4.65% at $16.32 on the last check Tuesday.
