Pitney Bowes Inc. posted flat revenue for the third quarter, something that President and CEO Marc B. Lautenbach said “was largely in line with our expectations” as the Stamford tech firm continues to realign itself.
Revenues were $843 million, compared with about $839 million in the same period last year, while profits fell 12 percent from the previous third quarter to $57 million.
Digital commerce solutions revenue grew 19 percent, while enterprise business solutions revenue increased 1 percent. Small and medium business solutions revenue declined 7 percent.
“During the third quarter, we validated that the next chapter of revenue growth will come from shipping, parcels and address verification, all of which transcends our entire business,” Lautenbach said. “And while I was disappointed in our financial results in the third quarter, I am encouraged about our path forward as we continue to transform our company.”
Lautenbach said that the company remains committed to improving margins and driving efficiencies throughout the business by deploying a $200 million spend-reduction program. The recent $475 million acquisition of Newgistics, which closed on Oct. 2, “repositions the portfolio towards growth,” Lautenbach said.
“With the board of directors and management team continuing to focus on enhancing shareholder value, we believe now is the time to explore a broad range of strategic alternatives that may have the potential to further unlock shareholder value,” he said.