Xerox 2007 Annual Report Download - page 4

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2
Fellow shareholders:
Our results included:
Net income of $1.1 billion.
Earnings per share of $1.19, which compares to 2006 earnings per share of
$1.22. On an adjusted basis, our earnings per share grew 13 percent in 2007*.
Operating cash flow of $1.9 billion.
Total revenue of $17.2 billion, an increase of $1.3 billion or 8 percent. Excluding
the benefit of our acquisition of Global Imaging Systems, which we purchased in
May last year, revenue was up 4 percent in 2007*.
Investments in strategic acquisitions totaling $1.6 billion.
And disciplined cost management that kept our gross margins and selling,
administrative and general costs right in line with our business model.
At the same time, we continued to take steps to build shareholder value. All the
credit rating agencies rank us as investment grade. We reinstated a dividend. We
repurchased $631 million in Xerox stock, bringing the total repurchased since 2005
to $2.1 billion. And, as we entered 2008, our Board of Directors authorized the
repurchase of an additional $1 billion of Xerox stock.
We feel good about the state of our business. And, we know that consistently delivering
double-digit earnings per share growth and strong operating cash flow make for the
best long-term investment. It’s a value proposition we’re strengthening every day.
* 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.
I am pleased to report that 2007 was
another year of steady and solid progress –
a year in which we continued to strengthen
the company financially, invest in growth,
and win in the marketplace.