Xerox 2009 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2009 Xerox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

2
Dear Fellow Shareholders,
It will come as no surprise to you that 2009 was a
challenging year for businesses around the world. Xerox
was no exception. As the recession took its toll, customers
pulled back from making new investments in technology,
used their current technology less and sought to reduce
spending wherever they could. As a consequence, total
revenue for the year was $15.2 billion, down 14 percent
from the previous year.
To help offset this recessionary impact on revenue,
we focused intently on reducing costs and generating
cash – taking tough actions to weather the storm
while prioritizing investments to accelerate growth.
Letter to Shareholders
Our operational improvements, along with our
substantial recurring revenue stream, enabled the
following results:
•
Net income of $485 million
•
Operating cash flow of $2.2 billion
•
Closed the year with $3.8 billion in cash1
•
Gross margin of 39.7 percent
•
Debt reduction of $1.1 billion2
•
Earnings per share of 55 cents; adjusted earnings
per share of 60 cents3 – better than the expectations
we set in the first quarter of 2009.
Ursula M. Burns
Chief Executive Officer
Anne M. Mulcahy
Chairman
1 Includes net proceeds from $2.0 billion Senior Notes issued in December 2009 to fund the
ACS acquisition.
2 Excludes increase in debt associated with $2.0 billion Senior Notes issued in December 2009
to fund the ACS acquisition.
3 See page 7 for the reconciliation of 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.