Xerox 2008 Annual Report Download - page 29

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Summary Results
Revenue
Revenues for the three years ended December 31, 2008 were as
follows:
Year Ended December 31, Percent Change
(in millions) 2008 2007 2006 2008 2007
Equipment sales $ 4,679 $ 4,753 $ 4,457 (2)% 7%
Post sale revenue(1) 12,929 12,475 11,438 4% 9%
Total Revenue $17,608 $17,228 $15,895 2% 8%
Reconciliation to Consolidated Statements of Income
Sales $ 8,325 $ 8,192 $ 7,464
Less: Supplies, paper
and other sales (3,646) (3,439) (3,007)
Equipment sales $ 4,679 $ 4,753 $ 4,457
Service, outsourcing
and rentals $ 8,485 $ 8,214 $ 7,591
Finance income 798 822 840
Add: Supplies, paper
and other sales 3,646 3,439 3,007
Post sale revenue $12,929 $12,475 $11,438
Memo: Color(3) $ 6,669 $ 6,356 $ 5,578 5% 14%
Total 2008 revenue increased 2% compared to the prior year and
was flat when including GIS in our 2007 results.(2) Currency had a
1-percentage point positive impact on total revenues. Total
revenues included the following:
• 4% increase in post sale revenue, or 2% including GIS in our
2007 results.(2) This included a 1-percentage point benefit from
currency. Growth in GIS, color products and document
management services offset the declines in high-volume
black-and-white printing systems, black-and-white multifunction
devices and light lens product revenue. The components of post
sale revenue increased as follows:
– 3% increase in service, outsourcing, and rentals revenue to
$8,485 million reflected the full year inclusion of GIS, and
growth in document management services.
– Supplies, paper, and other sales of $3,646 million grew 6%
year-over-year due to the full year inclusion of GIS as well as
growth in color supplies and paper sales.
• 2% decrease in equipment sales revenue. There was no impact
from currency on equipment sales revenue. When including GIS
in our 2007 results,(2) equipment sales revenue decreased 5%,
with a 1-percentage point benefit from currency. Overall price
declines of between 5%- 10% as well as product mix more than
offset overall growth in install activity.
• 5% growth in color revenue.(3) Color revenue of $6,669 million in
2008 represented 41% of total revenue, excluding GIS,
compared to 39% in 2007 reflecting:
– 10% growth in color post sale revenue to $4,590 million.
Color post sale revenue represented 37% and 35% of post
sale revenue, in 2008 and 2007, respectively.(4)
– Color equipment sales revenue declined 4% to $2,079
million. Color equipment sales represented 50% of total
equipment sales, in 2008 and 2007,(4) respectively.
– 24%(5) growth in color pages. Color pages represented
18%(5) and 12% of total pages in 2008 and 2007,
respectively.
Total 2007 revenue increased 8% compared to the prior year and
includes the results of GIS since May 9, 2007, the effective date of
our acquisition. When including GIS in our 2006 results,(2) our 2007
total revenue increased 4%. Currency had a 3-percentage point
positive impact on total revenues. Total revenues included the
following:
• 9% increase in post sale revenue, or 6% including GIS in our
2006 results.(2) This included a 3-percentage point benefit from
currency. Growth in GIS, color products, developing markets and
document management services more than offset the decline in
black-and-white digital office revenue and light lens product
revenue. The components of post sale revenue increased as
follows:
– 8% increase in service, outsourcing and rentals revenue to
$8,214 million reflected the inclusion of GIS, growth in
document management services and technical service
revenue.
– Supplies, paper and other sales of $3,439 million grew 14%
year-over-year due to the inclusion of GIS as well as growth in
developing markets.
• 7% increase in equipment sales revenue, or a decrease of 1%
when including GIS in our 2006 results.(2) This included a
3-percentage point benefit from currency. Growth in office
multifunction color and production color install activity was
offset by overall price declines of between 5%-10%, declines in
production black-and-white products and color printers, as well
as an increased proportion of equipment installed under
operating lease contracts where revenue is recognized over-time
in post sale.
Xerox 2008 Annual Report 27