“ Xerox's core business has been in decline for several years, and recent product refreshes were not successful at turning around mid-single-digit declines in its post-sale business, which represents more than three quarters of revenue. Fitch expects Xerox to continue to experience negative revenue growth over the ratings horizon with only diminished prospects for modest improvement, confirmed in part by recent results. Additionally, Xerox has continued its retreat from previously conservative financial policies through sizable share repurchases. Continued deterioration in Xerox's market position associated with lack of a turnaround in its core business bears risk to the company's operational position and prospective financial position as a result over the rating horizon.”
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duh ...... who is printing these days...
Finally it appears the realism of the state of Xerox is recognized.
From the inside, common sense should suggest the end to every employee.
Where’s the new products that are going to save the company and reverse the trend of decline that’s been years in the making?
What product or service is going to be the savior?
Firing more staff is the answer?
Does anyone actually need to know anymore than this to understand where this is going?
Seriously?
They pay off their old debt with new debt so they can continue to buy back shares and pay dividends. This screams financial irresponsibility.
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-xerox-at-bb-revises-outlook-to-negative-04-08-2020
Moreover, print is susceptible to a permanent change in worker habits that have adopted digital methods as a result of remote work, if and when workers fully return to offices. Xerox's own survey of 600 organizations said 80% of their workforces will have returned to the workplace in a year to a year-and-a-half on average, suggesting even if workplace habits don't change materially, Xerox's business could be pressured over at least the intermediate term.
Xerox's business has also been challenged for the better part of the last decade, experiencing a 27% decline in revenue over 2014 through the LTM period ending June 30, 2020. We see this worsening to 47% through year-end and do not believe Xerox's revenue will exceed $7 billion organically over the rating horizon.
Sounds like a great business model and outlook! Where do I sign up??!