Xerox 2011 Annual Report Download - page 6

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4
Accelerating
our services business.
Maintaining
our leadership in document technology.
Managing
our business with a disciplined focus on
operational excellence.
Expanding
earnings and returning value to all of you.
Second: Maintaining our leadership in document technology.
We not only continue to hold our number-one equipment revenue
market share position, but we also grew share in 2011. We did this by
offering a more extensive and affordable portfolio of color products
and by expanding our distribution to serve more small and midsize
businesses around the world.
Third: Managing our business with a disciplined focus on
operational excellence. This gives us the financial flexibility to help
offset certain pressures on the business – whether it’s economic
uncertainty or necessary investments that drive growth. Either way
– and despite challenges thrown our way – our focus is on delivering
strong bottom-line results. We’re justifiably proud that we do this
very well.
Fourth: The bottom line for Xerox shareholders – expanding
earnings and returning value to all of you. By executing well on
the first three priorities, we delivered on the fourth. Full-year 2011
adjusted earnings per share grew 15 percent1. We generated $2
billion in operating cash flow and repurchased a significant number
of Xerox shares during the year.
* See non-GAAP measures on page 9 for the reconciliation
of the difference between 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.
The Services segment now represents the largest
portion of our business.
’07 ’08 ’09 ’10 ’11
1,158*
1,047*
613*
1,296*
1,563*
1,135
230
485
606
1,295
17,228 17,608
15,179
21,633 22,626
’07 ’08 ’09 ’10 ’11
3,749 3,828 3,476
9,637
10,837
22%
22%
23%
45%
48%
’07 ’08 ’09 ’10 ’11
Total Services Segment Revenue
(millions – percent of total revenue)
Total Revenue
(millions)
Net Income – Xerox
(millions)
“Full-year 2011 adjusted earnings per share
grew 15 percent.”
So, good results. And, they’re evidence of a company that is
financially sound, delivering consistent double-digit earnings growth
and applying operational excellence to navigate that unpredictability
most companies face. But, as I mentioned previously, I’m not
satisfied – and I won’t be until we grow revenue faster. In 2011,
revenue was hampered by macro conditions. But, we didn’t let the
headwinds that pressured our top-line performance disrupt our ability
to deliver strong bottom-line results. That said, ratcheting revenue is
a necessity for the sustainable strength of our business. I have great
confidence in our growth potential, and, I can assure you, the Xerox
team is taking a targeted approach to capture the rich opportunity in
front of us.