Xerox 2013 Annual Report Download - page 63

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relative flattening of revenues in future years. We expect to manage the impact of any revenue declines through
measures to improve productivity and reduce costs and expenses.
Installs 2013
Entry
• 24% increase in color multifunction devices driven by demand for the recently introduced WorkCentre® 6605,
WorkCentre® 6015 and ColorQube® 8700/8900.
• 5% increase in color printers driven by demand for the Phaser® 6600 family of products as well as an increase
in sales to OEM partners.
• 20% decrease in entry black-and-white multifunction devices driven by declines in all geographies.
Mid-Range
• 8% increase in installs of mid-range color devices driven by demand for the ConnectKey® enabled products.
• 3% decrease in installs of mid-range black-and-white devices.
High-End
• 43% increase in installs of high-end color systems driven by growth in the sale of digital front-ends (DFE's) to
Fuji Xerox, as well as strong customer demand for the Color J75 Press and iGen® as we continue to strengthen
our market leadership in the Production Color segment. High-end color installs increased 7%, excluding the
DFE sales to Fuji Xerox.
• 8% decrease in installs of high-end black-and-white systems, reflecting continued declines in the overall
market.
Install activity percentages include installations for Document Outsourcing and the Xerox-branded product
shipments to GIS. Descriptions of “Entry”, “Mid-Range” and “High-End” are defined in Note 2 - Segment Reporting,
in the Consolidated Financial Statements.
Revenue 2012
Document Technology revenue of $9,462 million decreased 8%, including 2-percentage points negative impact from
currency. Total revenues include the following:
• 12% decrease in equipment sales revenue, with a 1-percentage point negative impact from currency. This
decline, primarily in mid-range and high-end equipment, was driven by delayed customer decision-making
reflecting the continued weak macro-environment. In addition, the impact of lower product mix and price
declines in the range of 5% to 10% more than offset growth in installs. Document Technology revenue excludes
increasing revenues in our DO offerings.
• 6% decrease in annuity revenue, including a 2-percentage point negative impact from currency driven by lower
supplies and a decline in total digital pages of 2% as well as the continued migration of customers to our
partner print services offerings, which is included in our Services segment.
• Document Technology revenue mix was 22% entry, 57% mid-range and 21% high-end.
Segment Margin 2012
Document Technology segment margin of 11.3% increased 0.2-percentage points from prior year. Productivity
improvements, restructuring savings and gains recognized on the sale of finance receivables (see Note 5 - Finance
Receivables, Net in the consolidated Financial Statements for additional information) more than offset the impact of
price declines and overall lower revenues.
Installs 2012
Entry
• 39% increase in color multifunction devices driven by demand for the WorkCentre® 6015, WorkCentre® 6605
and ColorQube® 8700/8900.
• 23% increase in entry black-and-white multifunction devices driven by demand for the WorkCentre® 3045.
• 7% decrease in color printers driven by a decrease in sales to OEM partners.
Xerox 2013 Annual Report 46