There was a mix of good and bad news for Xerox Inc. on Oct. 28, as it recorded its seventh consecutive quarter of decline but also reached a settlement in a lawsuit that threatened to stall its planned spinoff of its business process outsourcing (BPO) unit.
For the period ending Sept. 30, total revenue was down 3 percent to $4.2 billion. The Norwalk-based company reported net income for the period of $181 million or $0.17 per share, compared with a net loss of $31 million or $0.04 per share a year earlier.
Xerox said that its plan to spin off its BPO unit under the new name Conduent was still on track to be completed by year’s end. Xerox reported $39 million in separation costs for the quarter — compared with none in third-quarter 2015 — while overall costs and expenses decreased 10 percent from the prior-year period, with a 15 percent decline in outsourcing, maintenance and rentals costs.
“In an important period for Xerox when our separation-related activities ramped up significantly, we delivered solid financial results despite challenging market conditions,” said Xerox CEO Ursula Burns.
Meanwhile, the firm also reached a settlement with shareholder Darwin Deason, who earlier this month filed a lawsuit against Xerox maintaining that his preferred shares in the parent company entitled him to similar equity in Conduent, which could have held up the planned split. Under the settlement, Deason will receive 180,000 shares of preferred stock in Xerox and 120,000 preferred shares in Conduent.