Xerox 2002 Annual Report Download - page 3

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Doing What We Say We Will Do
1
Fellow Shareholders:
On behalf of the 68 thousand Xerox people around the world,
I am pleased – no, thrilled – to report that we have gone a long
way to restoring Xerox to good financial health and positioned
our company for a period of growth and opportunity. If I sound
bullish on Xerox, it’s because I am. We have weathered the
most serious crisis in our history and emerged a company that
is stronger, different and better – a company prepared and
resolved to take Xerox to new levels of greatness.
Doing What We Say We Will Do
Perhaps most importantly, we believe we have
begun to earn your trust. A year ago we made
a series of commitments to you. And we have
already made good on most of them.
We said we would improve liquidity and we
did. Last year we generated operating cash
flow of $1.9 billion. Since the end of 2000 we
have reduced total debt by $4.4 billion. And we
ended the year with $2.9 billion cash on hand.
We said we would begin to drive equipment
sales and we have – by making 2002 our
biggest new product year ever. Equipment
sales declines have moderated substantially
in each of the last five quarters. That’s a very
encouraging trend and a key part of our strategy. Equipment
sales not only add revenue today, they add to our profitable
post sales revenue stream tomorrow.
We said we would improve our gross margins to the high ‘30s
and we exceeded our commitment. Our gross margins in 2002
were 42.4 percent. Some of that improvement was reinvested
as price decreases for our customers.
Anne M. Mulcahy,
Chairman and
Chief Executive
Officer
On behalf of the 68 thousand Xerox people around the world,
I am pleased – no, thrilled – to report that we have gone a long
way to restoring Xerox to good financial health and positioned
our company for a period of growth and opportunity. If I sound
bullish on Xerox, it’s because I am. We have weathered the
most serious crisis in our history and emerged a company that
is stronger, different and better – a company prepared and
resolved to take Xerox to new levels of greatness.