Xerox to review its business portfolio, strategy

Xerox said that it is "undertaking a comprehensive review of structural options for the company's portfolio."

Xerox said Monday that it is reviewing its portfolio of businesses and strategy to boost shareholder value.

The company reported third quarter earnings and said its board will review its businesses and capital allocation options.

In a statement, Xerox CEO Ursula Burns said the company is "undertaking a comprehensive review of structural options for the company's portfolio."

Lexmark said last week that it will review strategic options. Hewlett-Packard will split into a consumer business focused on PCs and printers and another targeting the enterprise.

For Xerox, one move could be to separate its printing and document management businesses from its services unit. Xerox earlier this month said it would take a charge due to problems installing Medicaid healthcare systems in Montana and California.

The company reported a third quarter loss of 4 cents a share on revenue of $4.33 billion, down 10 percent from a year ago. Adjusted earnings were 24 cents a share, a penny better than expectations.

Xerox's services business delivered revenue of $2.4 billion, down 8 percent from a year ago. Document technology revenue was $1.8 billion, down 12 percent from a year ago. Xerox recently sold its outsourcing business to Atos.

As for the outlook, Xerox projected fourth quarter non-GAAP earnings of 28 cents a share to 30 cents a share. For 2015, Xerox said non-GAAP earnings are likely to be at the low end of a 95 cents to $1.01 a share range.

Xerox revenue has been declining for multiple quarters with services delivering flat sales at best.

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