Norwalk-based Xerox recorded a year-over-year decline in both its fourth-quarter 2016 revenue and its year-to-date profits, according to its newly released earnings report.
Xerox generated $2.7 billion in revenue during the fourth quarter, down 7 percent from the $2.9 billion level of the fourth quarter of 2015. The company reported $10.7 billion in revenue for 2016, a 6 percent drop from the $11.4 billion reported in 2015.
Xerox also reported $462 million in cash flow from continuing operations during the fourth quarter, compared with $370 million one year earlier. The fourth-quarter adjusted operating margin of 14 percent was 0.7 percent higher than the same quarter a year ago.
Xerox ended 2016 with a smaller workforce: approximately 37,600 as of Dec. 31, a reduction of 2,400 from one year earlier. The company stated that the reduction was “primarily due to the impact of restructuring and productivity-related reductions” and did not include the transfer of employees to Conduent following that entity’s spin-off from Xerox.
Xerox CEO Jeff Jacobson viewed the latest earning data with satisfaction. “Our fourth quarter results demonstrate that we are realizing significant benefits from our strategic transformation program,” he said. “We delivered strong margins that countered expected pressure on revenue.”