Financial Crisis of the Old Enterprises New Achievements
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Production copier giant, Xerox began to get involved illegal traffic monitoring system is its future business direction of the new logo. Installed at the crossroads, and the Xerox system, surveillance cameras, with vehicle management and exchange of information on offenders to deal with fines and recommendations to improve safety features.
Xerox copier has a long history of production, development of new business into the data also show that it risked much in the risk of service. With IBM and Hewlett-Packard and other big tech giants like Xerox has been working to reshape the image of their own service company. 1 year ago served as CEO of Burns led the company's business into the high speed of adjustment. Her most radical decision was 6.4 billion acquisition last year of data services to corporate powerhouses, Affiliated Computer Services Inc.
Xerox now nearly 50% of revenues from data services business, rather than hardware. The proportion of 23% over the previous year increased significantly. Part of the profits due to data services because of high profits, the company announced earnings increased steadily, continuously for more than Wall Street forecasts. Despite the recession, but the company's operating cash flow excluding capital expenses (freecash flow), from 1.2 billion in 2008 to 1.5 billion last year.
However, Burns is not so and narcissism. She said in an interview that he wanted to Shiyue Cheng in a few years ago the best in the industry for the global enterprise. If to achieve this goal, not only for consumers like, but also because of the company shareholders can bring profit growth in the foreseeable love it.
Wall Street clearly underestimated the Xerox contains a broad range of the value of new business. The value of these innovations are reflected in next year only 8 times the profit per share, the latest price of 9.14 U.S. dollars.
Professional investment in the financial industry compared to the Xerox collection of treasures. But they also acknowledged that because investors are not optimistic about Xerox's view, so the share price at the low level of the absurd. They expect business to re-adjusted Xerox, ACS can before operating margins from the acquisition of 10% to low double-digit. If the company stock up to 12 times price-earnings ratio, slightly lower than the average of its five years of 13 times next year, its stock price can easily reach 14-15 U.S. dollars per share. This is nearly 50% increase.
There are investment professionals say financial and investment sector, many people still think 30 years ago to Xerox's position, then a lot of hype of the "beautiful 50 (NiftyFifty) companies" one. But there are also professionals who carefully noted the change of Xerox, and started in the second quarter of their additional investment holdings to 1,350 shares.
Some even say that Xerox's stock price doubled in the next 3 years can. They pointed out that a substantial portion of revenue will come from ACS's business management and information processing outsourcing (information-processing outsourcing) business. They allow Xerox's revenue is stable, reliable and predictable (recurring revenue). This means that the company has identified the next few years, contracts, investors will enjoy the company of a good opportunity for profit potential. After the acquisition of ACS will help improve Xerox's stable, reliable and predictable income share of the company's earnings per share excluding the operating cash flow after capital expenditure and market value per share ratio (freecash flow yield), 8% from the previous -9% to 14%.
Burns said the business after the reorganization of Xerox as ATM, and the company expects cash from operations this year could reach 2.6 billion U.S. dollars, higher than last year's 2.2 billion. At the same time in the middle of next year before the company still pay for the acquisition of ACS 20 billion dollars in loans. Burns said the Board will consider raising the annual dividend per share early dividend of 17 cents. The Board has examined the value of one billion U.S. dollars next year buy back shares in order to support the idea of price.
Burns's remarks were not just words. Xerox each year to invest 1.5 billion U.S. dollars on the hope that new areas of research and development in a breakthrough. To date, Xerox has been in two areas of office management will help save time and expenses, service-known products into the market. Its decades of history of innovation, so that the name of Xerox as a verb to use than the Google experience morning for decades.
Burns on the recent restructuring confidence. The original, from the traditional printers, copiers, multifunction printers and copiers, scanners and fax machines, printing equipment, graphic communication and document outsourcing business, coupled with new services business will help the company achieve profitability in recent years, 10% -15% growth. Stock earnings per share have increased by 50% to 24 cents per share, exceeding Wall Street forecast of 21 cents.
Further, it is always a conservative known for Burns in an interview this year's profit to increase the level of ACS in the post-acquisition adjustments and minus the carrying special items, the earnings per share up to 88-92 cents beyond the disclosure of 75-85 cents several months ago. The company's new business growth in this quarter, up 23%.
Expects to have the middle of next year for the repurchase shares, raise dividends and the acquisition of one billion U.S. dollars. Company can easily reduce the debt burden is expected from the beginning of the second quarter to 96 billion U.S. dollars, down at the end of the 87 billion dollars.
From the geographical point of view, Xerox also continued to expand the existing customers new business opportunities in information processing. ACS in the market for most of the United States, the company intends to begin selling to European markets ACS-related service products. Xerox currently receive revenues from the U.S. market accounted for 54%, from Europe and other markets accounted for 46%. Company is expected to increase at least this issue 575,000,000 U.S. dollars of annual pre-tax profit, and after five years is expected to acquire ACS, the combined annual pre-tax profit of up to 8 million.
The most optimistic view, Xerox has used its own data analysis of high-quality potential. It helps to improve sales and better manage customer service records. In addition to helping customers improve efficiency, the company can use its collection of data to help their practice of marketing and other purposes.
With such outstanding ability for any competitor, you want to copy in the short term Xerox's business model is impossible. |
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By :
Jessie Stone
Submitted
2010-09-29 21:32:33 |
Article From Article Mayhem
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