Xerox 2007 Annual Report Download - page 9

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Xerox Annual Report 2007 7
Leading with services
Perhaps the greatest transformation has been in our services business, which quietly
has become an engine of growth. A few facts make the point. In 2007, the value of
services signings was up 18 percent. Services generated $3.4 billion in annuity revenue –
up 8 percent over the previous year.
Some of the most prestigious enterprises in the world – brands as diverse as United
Technologies, HSBC, NASA, EUROPART, The University of California, Raytheon Corp., the
United States Navy, and many, many more – are turning to Xerox for help in simplifying
work processes, managing their office technology around the world, helping them bridge
the paper and digital divide and maximizing their investments in information technology.
We’re constantly expanding our service offerings, especially targeting what we call
“document-intensive” industries that generate lots of paperwork and digital files.
Think health care, where filling out forms for each doctor visit is still the norm. Or, the
legal industry, where documentation can make or break cases. All these documents,
in any form, need to be managed – scanned, searched, stored and more. And that’s
where Xerox’s expertise comes in.
Selling, administrative
and general costs
(Percent of revenue)
27.1 26.7 26.2 25.2 25.0
’03 ’04 ’05 ’06 ’07
Net cash from
operating activities
(Millions)
1,879
1,750
1,420
1,617
1,871
’03 ’04 ’05 ’06 ’07
Gross margins
(Percent)
’03 ’04 ’05 ’06 ’07
42.6 41.6 41.2 40.6 40.3