Xerox 2008 Annual Report Download - page 5

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3Xerox 2008 Annual Report
Given our cash flow, healthy cash balance – $1.2 billion at the
end of 2008 – and a $2 billion credit facility, we remain quite
confident in our financial position and have no need to access
the capital markets in the foreseeable future. It’s certainly an
advantaged position in this economy.
Although we are keenly aware that there is much we cannot
control, the wonderful people I am privileged to lead at Xerox
are focused with passion and grit on those things we can
control. This attitude and focus helped us turn in credible
performance in a very difficult year:
• Total revenue for 2008 was $17.6 billion – that’s an increase
of $380 million, or 2 percent, over 2007.
• Full-year net income was $230 million including a litigation
charge. Excluding this and certain other charges, adjusted
net income was $985 million.*
• We generated $939 million of operating cash flow. Adjusted
cash from core operations for the year was $1.7 billion.*
• Through the 5 percent of our revenue invested in innovation,
we continued to expand our portfolio of document
management technology and services – already the
broadest in the industry and in our history.
• And we continued to expand distribution, bringing the Xerox
brand to more businesses of any size all around the world.
The proof points are everywhere. The highly respected Gartner
organization lists us as a “Magic Quadrant” market leader in
managed print services, as well as for printers and multi function
systems that print, copy, fax and scan all in one device. Our new
offerings last year garnered some 230 awards from industry
groups and media around the world. I could go on, but you get
the point. Third parties are validating our progress and our
leadership in virtually every aspect of our business.
That’s all looking in the rear-view mirror. I don’t have to be
a psychic to know that you have little patience for that –
especially in these turbulent times. Neither do I. I’ve met with
many investors in recent months and I keep hearing three
questions asked over and over:
• What are you doing to confront the recession right now?
• What are you doing to make sure you come out of this crisis
with a full head of steam?
• Why should I continue to invest in Xerox?
Fair enough. Let me answer each of those questions as
candidly and succinctly as I can.
“ The highly respected Gartner
organization lists us as a “Magic
Quadrant” market leader in managed
print services, as well as for printers
and multi function systems.”
Actions to Minimize Impact of the Recession
We are doing everything possible to reduce cost – everything
that doesn’t mortgage our future. We took a $349 million
restructuring charge in the fourth quarter of 2008 that has
resulted in the elimination of about 3,400 jobs. We expect that
the restructuring will deliver $200 million in savings this year.