Here’s what I know: revenue down in line with Q1. The equipment revenue blood bath has now expanded to post-sale, which is the beginning of the end. Margin up significantly year-over-year due to expense cuts (mostly on the employees’ back) but profit $ or cash only up modestly due to revenue decline which is mostly eliminating the good news on the cost side. Cash is helped by lower restructuring payout to employees. In summary, not a sustainable biz model. Will be interesting to see how the street reacts
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Stock looking Good ...29 and dropping
2nd qtr results = another ZeeDuD
they can only cost cut so much, there is barely any staff left to run the current business, 1 person off sick and everything collapses ,unable to for fill basic contractual agreements, xrx would rather pay the fine to the customer for failing SLA than actually employ/train more people..thats a pretty s—y company to work for.
My opinion: The market loves this kind of news and the smoke & mirror show will also help for a short time UNTIL revenue declines finally outpace cost cuts & there are YOY declines in profit. Once that happens the stocks will begin to tank very rapidly.