Xerox 2008 Annual Report Download - page 8

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The billions of pages printed on Xerox color systems grew
24 percent last year, and total significantly more than any of
our competitors. In fact, according to estimates by InfoTrends,
a leading independent research firm, Xerox’s DocuColor®
,
iGen3® and iGen4™ presses accounted for approximately
one-half of the total worldwide color pages printed by
high-speed digital systems.
With the broadest portfolio of color printing systems on the
market, we continue to create new business opportunities in
production printing through color technology and systems
such as the Xerox iGen4™ Press and Xerox 700, both of which
launched in 2008.
This year we’ll shake up the industry even more with the
introduction of a color multifunction system that breaks down
the cost barrier of color printing in the office through exclusive
solid ink technology, which not only lessens the impact on a
business’ bottom line but also on the environment.
By acquiring nine office technology dealers in the last two
years and launching 19 products in 2008 designed for small
and mid-size businesses (SMB), we have significantly increased
our penetration in the SMB marketplace. In fact, the number
of installs for our desktop printers and multifunction systems
grew 10 percent last year, largely due to more channels selling
the Xerox brand.
“ Our recurring revenue stream
represents more than 70 percent
of our total revenue. That gives us
some cushion in challenging economic
times and helps fuel the $1.7 billion
in cash that we expect to generate
this year from core operations.”
“ One of the things I’m proudest of is
the customer-centric culture we’ve
developed at Xerox. We have a proven
track record that demonstrates that
our customers increasingly see us not
as a vendor, but as a partner.”
We have more distribution channels to bring Xerox’s
technology and services to more businesses of any size,
anywhere around the world. For decades, we’ve had the
largest and best direct sales force in our industry. Currently
it’s over 7,500 strong – one of our crown jewels and an asset
that gives us a competitive advantage. That’s backed up by
Global Imaging Systems, our wholly-owned and growing
network of U.S. dealers, as well as an equally impressive
partnership with agents, concessionaires, resellers and more –
giving Xerox the largest, broadest and most professional
distribution network in our industry.
Bottom line: yes, we are feeling the impact of the recession;
yes, we are moving aggressively to reduce costs, generate
cash and weather the storm; but no, we are neither giving
up on 2009 nor mortgaging our future by compromising
on investments that will give us momentum as we come out
of the economic downturn.
The Case for Xerox as an Investment
We firmly believe that we will navigate through this set of
challenges and emerge stronger than ever. I say that for
several reasons.
We continue to enhance our leadership position in document
technology. Last year, Xerox inventors earned more than
600 U.S. utility patents. We currently hold more than 8,900
active patents in the U.S. and, together with our research
partner Fuji Xerox, we have received over 55,000 worldwide
patents in our history.
Our research leadership yields the best and broadest set of
offerings in our industry. Over the past three years, we have
launched more than 80 products – including 29 new products
last year with about the same number expected this year.