[May 23, 2017] |
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Xerox CEO to Shareholders: Strategic Transformation, Growth Strategy Build Value for Customers, Investors
At its annual meeting of shareholders today, Jeff Jacobson, CEO of Xerox
Corporation (NYSE:XRX), discussed the company's financial
performance in 2016, and outlined the company's strategy to enhance
value for Xerox shareholders.
In his address to shareholders, Jacobson commented, "Our foundation is
strong, our product portfolio is as deep as it has ever been, and our
customers are responding to our renewed focus on the document technology
market." He added, "This is a new Xerox and we are bringing innovative
solutions to the market that will strengthen our business and enable
attractive returns to our shareholders."
As previously announced, Chairman of the Board Ursula M. Burns retired
from the Xerox Board of Directors, effective today, and Robert
Keegan has been named non-executive chairman. Keegan has been a
director since 2010 and formerly served as chief executive officer and
president of The Goodyear Tire & Rubber Company.
"Throughout Ursula's career, she has demonstrated a passion and love for
the company. We admire her personal and professional commitment to our
success," said Jacobson.
"I look forward to working more closely with Bob as he steps into the
chairman role. His experiences leading businesses through turnarounds
continues to be a great benefit to the Xerox team."
Also at the annual meeting, shareholders elected by a majority vote all
members of the Xerox
board of directors: Gregory Q. Brown, Jonathan Christodoro, Joseph
J. Echevarria, William Curt Hunter, Jeffrey Jacobson, Robert J. Keegan,
Cheryl Gordon Krongard, Charles Prince, Ann N. Reese, Stephen H.
Rusckowski and Sara Martinez Tucker.
In a separate vote, shareholders ratified the selection of
PricewaterhouseCoopers (News - Alert) LLP as the company's independent, registered
public accounting firm for 2017.
Dividend Declaration
Today, the company announced that its board of directors declared a
quarterly cash dividend of 6.25 cents per share on Xerox common stock.
The dividend is payable on July 31, 2017 to shareholders of record on
June 30, 2017. The dividend will be adjusted on a proportional basis to
reflect the one-for-four reverse stock split approved by Xerox
shareholders at today's annual shareholders meeting if, as anticipated,
the reverse stock split becomes effective prior to the dividend payment
date.
The board also declared a quarterly cash dividend of $20 per share on
Xerox Series B Convertible Perpetual Preferred Stock. The dividend is
payable on July 1, 2017 to shareholders of record on June 15, 2017.
About Xerox
Xerox Corporation is an $11 billion technology leader that innovates the
way the world communicates, connects and works. Our expertise is more
important than ever as customers of all sizes look to improve
productivity, maximize profitability and increase satisfaction. We do
this for small
and mid-size businesses, large
enterprises, governments, graphic communications providers, and for
our partners who serve them.
We understand what's at the heart of work - and all of the forms it can
take. We embrace the increasingly complex world of paper and digital. Office
and mobile. Personal and social. Every day across the globe - in more
than 160 countries - our technology,
software and people successfully navigate those intersections. We
automate, personalize, package, analyze and secure information to keep
our customers moving at an accelerated pace. For more information, visit www.xerox.com.
Forward-Looking Statements
This Report contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. The words
"anticipate", "believe", "estimate", "expect", "intend", "will",
"should" and similar expressions, as they relate to us, are intended to
identify forward-looking statements. These statements reflect
management's current beliefs, assumptions and expectations and are
subject to a number of factors that may cause actual results to differ
materially. Such factors include but are not limited to: our ability to
address our business challenges in order to reverse revenue declines,
reduce costs and increase productivity so that we can invest in and grow
our business; changes in economic conditions, political conditions,
trade protection measures, licensing requirements and tax laws in the
United States and in the foreign countries in which we do business;
changes in foreign currency exchange rates; our ability to successfully
develop new products, technologies and service offerings and to protect
our intellectual property rights; the risk that multi-year contracts
with governmental entities could be terminated prior to the end of the
contract term and that civil or criminal penalties and administrative
sanctions could be imposed on us if we fail to comply with the terms of
such contracts and applicable law; the risk that partners,
subcontractors and software vendors will not perform in a timely,
quality manner; actions of competitors and our ability to promptly and
effectively react to changing technologies and customer expectations;
our ability to obtain adequate pricing for our products and services and
to maintain and improve cost efficiency of operations, including savings
from restructuring actions; the risk that individually identifiable
information of customers, clients and employees could be inadvertently
disclosed or disclosed as a result of a breach of our security systems;
reliance on third parties, including subcontractors, for manufacturing
of products and provision of services; our ability to manage changes in
the printing environment and markets and expand equipment placements;
interest rates, cost of borrowing and access to credit markets; funding
requirements associated with our employee pension and retiree health
benefit plans; the risk that our operations and products may not comply
with applicable worldwide regulatory requirements, particularly
environmental regulations and directives and anti-corruption laws; the
outcome of litigation and regulatory proceedings to which we may be a
party; the risk that we do not realize all of the expected strategic and
financial benefits from the separation and spin-off of our Business
Process Outsourcing business; and other factors that are set forth in
the "Risk Factors" section, the "Legal Proceedings" section, the
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" section and other sections of our 2016 Annual Report on
Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K filed with the Securities and Exchange Commission
("SEC (News - Alert)"). Xerox assumes no obligation to update any forward-looking
statements as a result of new information or future events or
developments, except as required by law.
Fuji Xerox Co., Ltd. ("Fuji Xerox") is a joint venture between Xerox
Corporation and Fujifilm Holdings Corporation ("Fujifilm") in which
Xerox holds a 25% equity interest and Fujifilm holds the remaining
equity interest. On April 20, 2017, Fujifilm publicly announced it
formed an independent investigation committee to conduct a review of the
appropriateness of the accounting practices at Fuji Xerox's New Zealand
subsidiary related to the recovery of receivables associated with
certain sales leasing transactions that occurred in, or prior to, Fuji
Xerox's fiscal year ending March 31, 2016. In first quarter 2017, we
recognized a charge of approximately $30 million, which represents our
share of the current Fujifilm total adjustments from this review, as
publicly disclosed by Fujifilm. Fujifilm has publicly stated that it
expects the investigation will be completed in May 2017, and that it
intends to disclose the results shortly thereafter. Given our status as
a minority investor, we have limited contractual and other rights to
information and rely on Fuji Xerox and Fujifilm to provide information
to us and are not involved in the investigation, including its scope and
timing of completion. Although we have no reason not to rely on
Fujifilm's current adjustment and we are not aware of any additional
amounts related to this matter that would have a material effect on our
financial statements including the related Xerox disclosures, this
investigation is ongoing and our future results may include additional
adjustments that are materially different from the amount of the charge
that we have already recognized in connection with this matter and the
period(s) to which the charge relates, and we can provide no assurances
relative to the outcome of any governmental investigations or any
consequences thereof. In addition, the summarized financial data we have
reported for Fuji Xerox may change based on the results of the
investigation.
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http://www.facebook.com/XeroxCorp,
http://www.youtube.com/XeroxCorp.
Xerox® and Xerox and Design® are trademarks of
Xerox in the United States and/or other countries.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170523006436/en/
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