NORWALK, Conn. -Xerox Corp. said Monday that its first-quarter net income fell 4 percent as the company spent more on new products.
The copier and printer maker is trying to build its services business, which now makes up more than half the company's revenue. CEO Ursula Burns said the company is investing in new offerings and long-term contracts in order to increase growth. In the short term, that has hurt profitability, which Burns said the company will offset with cost cuts.
Xerox said it earned $269 million, or 19 cents per share, in the January-March quarter, down from $281 million, also 19 cents per share, in the same period a year earlier.
Adjusted earnings were 23 cents per share in the latest quarter, matching expectations of analysts polled by FactSet.
Total costs and expenses rose 1 percent to $5.19 billion.
Revenue rose 1 percent to $5.5 billion from $5.47 billion. Analysts expected $5.47 billion.
Revenue from the company's services business grew, while technology revenue, such as sales of document systems and supplies, declined.
The company expects profit for the current quarter, which ends in June, of 21 cents to 24 cents per share. Excluding costs for restructuring and other items, Xerox expects profit of 25 cents to 28 cents per share. Analysts predict profit of 26 cents per share.
For all of 2012, Xerox expects earnings of 97 cents to $1.03 per share and adjusted earnings of $1.12 to $1.18 per share. Analysts are expecting earnings of $1.08 per share.
The Norwalk, Conn., company's shares rose 18 cents, or 2.3 percent, to $8.05 in premarket trading.
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