Xerox 2014 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2014 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 152

  • 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
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Installs 2014
Entry
We launched a total of twelve new Entry products in 2014, with a majority of them not available until late in the
third quarter and early in the fourth quarter. The benefits of these launches and other Entry go-to-market
investments are still ramping, and trends in color printers and multifunction devices are improving. Higher declines
in Eurasia due to economic instability are partially offsetting these improvements.
• 7% decrease in color multifunction devices
• Entry color printers flat
• 23% decrease in entry black-and-white multifunction devices driven by declines in all geographies.
Mid-Range
•1% increase in installs of mid-range color devices reflects benefits from the newly launched WorkCentre 7970
and entry production devices partially offset by timing of large account sales
•13% decrease in installs of mid-range black-and-white devices is consistent with overall market declines
High-End
•7% decrease in installs of high-end color systems. Excluding Fuji Xerox growth in digital front-end (DFE)
sales, high-end color installs increased 6% with growth in iGen and the new Versant product.
•13% 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 2013
Document Technology revenue of $8,908 million decreased 6%, with no impact from currency. Total revenues
include the following:
•5% decrease in equipment sales revenue, with a 1-percentage point positive impact from currency. Equipment
sales benefited from our 2013 mid-range product refresh, growth and acquisitions in the small and mid-size
business market and increased demand for color digital production presses. These benefits were more than
offset by the continued migration of customers to managed print services and our growing partner print
services offerings (included in our Services segment), weakness in developing markets and price declines,
which were in the historical 5% to 10% range.
•6% decrease in annuity revenue, with no impact from currency driven by a modest decline in total pages, the
reduction in channel supplies inventory levels, lower sales in developing markets and a decline in financing
revenue as a result of prior period sales of finance receivables and lower originations. Annuity revenue was
also impacted by the continued migration of customers to our partner print services offerings (included in our
Services segment). Total digital page volumes declined 2% despite a 3% increase in digital MIF.
•Document Technology revenue mix was 21% entry, 58% mid-range and 21% high-end.
Segment Margin 2013
Document Technology segment margin of 10.8% decreased 0.5-percentage points from prior year. The decline
was primarily driven by an increase in SAG as a percent of revenue due to the overall impact of lower revenue and
higher pension settlement losses which were only partially offset by restructuring savings, productivity
improvements and lower compensation-related 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.
45