Xerox 2007 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2007 Xerox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Xerox Annual Report 2007 9
They’re eager to embrace the promise of a “greener” world, but don’t know how to
harness technology to make their infrastructure more sustainable. They are awed by the
complexity and potential of technology, but yearn for someone to make it all simpler
and more effective.
Here’s what excites me. In each of these areas – top-line growth and bottom-line
productivity… bridging the digital and paper domains… making document management
secure and sustainable… making IT decisions that provide good returns… and making
a complex world simple – in all these areas Xerox has answers.
Our innovation community is aligned with our strategy and is the best in our industry.
Last year, Xerox was awarded 584 U.S. utility patents. Together with our research partner
Fuji Xerox, we hold about 8,600 active U.S. patents and continue to invest $1.4 billion
a year in research and development. In 2007, we were awarded the National Medal
of Technology, America’s highest such honor. It’s a singular accomplishment for Xerox
innovators past and present.
Our product development community is bringing a steady stream of worldclass
technology to market. In the past three years, we have brought more than 100 new
products to market. Together with our intelligent software, targeted solutions and tailored
services, they bring value to our customers today and assure us continued industry
leadership tomorrow.
Our distribution channels, already the broadest in our industry, are getting stronger.
We have a powerful blend of direct sales people and indirect agents, concessionaires,
resellers, dealers and Web-based channels. They have at their disposal a wide array of
experts in color, production printing, solutions, software, services and more.
Our reach is worldwide, providing a competitive advantage that is unique in our industry.
We are on the ground in some 160 countries in every corner of the globe. That becomes
increasingly important as our larger customers want help in designing, implementing and
maintaining document networks and processes that span the world.
Our annuity business model provides a consistent and profitable revenue stream that
drives strong cash flow. As I mentioned earlier, more than 70 percent of our revenue
comes from post-sale. In 2007, we grew post-sale revenue by 9 percent (6 percent
excluding the benefit of Global Imaging*) and added more than $1 billion to our post-sale
revenue stream.
* See Page 11 for the reconciliation of the difference between this financial measure that is not in compliance with Generally Accepted
Accounting Principles (GAAP) and the most directly comparable financial measure calculated in accordance with GAAP.