Xerox Aims To Fix Services Problems

The operating margin of Xerox Corporation has been sliding as of late and, according to Xerox CEO Ursula Burns, reversing that backslide is the number one priority of the company. In a recent statement at the company's annual shareholders meeting, Burns said, "The focus of my management team is to buck and change that trend."

The meeting, which was held at the Norwalk, Connecticut corporate headquarters of Xerox, had Burns answering multiple questions from the shareholders on topics that ranged from Burns 2013 paycheck to how the closing of stores like Staples and Office Depot are affecting the company.

According to Burns Xerox's services-related businesses, which handles everything from insurance claim to bill payment processing to staffing call centers, is expected to be the driving force behind increasing growth at the company. In total, services account for $0.57 of every $1 that the company takes in. By 2017, that number is expected to increase to $0.66.

Unfortunately for Xerox, that services business has faltered in recent months. It did grow by 3% in 2013 but was still a few percentage points shy of Xerox's projected expectations. In addition to that, the company also decided to decrease its projections for profits in 2014. The excuse for this, according to Xerox, is said to be more-than-expected spending on new Medicaid and health insurance exchange platforms.

The weaker operating margin is also due, in part, to services according to Burns. The operating margin of Xerox, which is a common measure of profitability and operating efficiency, was 8.9% in 2013, a continual decrease from 9.5% in 2012 and 10% in 2011. To fix the problems Xerox is looking into options like acquisitions and "sharing infrastructure and talent over to services to make sure we can run services better," Burns added.

In addition to these woes, services has also seen a the management ranks go through some changes over the past couple of months. The reason for this, according to Burns, is to tackle operational problems. This meeting for Xerox came as shareholders have seen success in 2014. Xerox's stock has averaged around $11.30 per share for the past three months, which is up from the 2013 average of $9.46 and the 2012 average of $7.50. Xerox also managed to increase its quarterly dividend by 8.7% in January to 6.25 cents per share.

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New Fast and Efficient Light Production Series of Copiers and Printers Released by Xerox

Xerox recently launched its newest light production series of devices at the Africa Print Expo in Sandton. The new devices include the Xerox D95/D110/D125 Copier/Printer and the D110/D125 Printer, both of which are capable of delivering sharp black-and-white image quality with speed and efficiency.

In addition to that, these devices were designed to meet the demands of print-intensive environments and make it easy for people like educators to create things like curriculum materials, student directories, course packs and bound materials. Productivity can also be increased with archiving and stamping software, allowing legal, insurance and healthcare users to store documents electronically and guarantee their authenticity with numerical markings.

Commercial, quick and franchise printers are capable of meeting tight turnaround times in the print-for-pay market and can also offer more applications and services, like newsletters, on-demand book publishing and customized catalogues. These new copier/printer models are available in speeds of 95, 110 and 125pp, while the D110/D125 Printers are available in speeds of 110 and 125ppm, which is perfect for the transactional print environment.

There are also a lot of key customer benefits with these new models, including things like fast and easy operation, advanced workflow tools and multipurpose finishing options, making them perfect for a variety of settings and operations.

According to Marketing and Product Manager for Bytes Document Solutions PSG Paul Haglich, "The faster scanner, expanded robust inline finishing options and simplified graphical user interface should make these new products popular in light production environments where ease of use and affordable productivity are key. This range of highly productive digital printers are ideally suited to quick/franchise or enterprise in-plant printers, legal, insurance and healthcare companies and the educational market."

Source: Graphic Repro - Xerox SA launches fast, efficient light production series

Sharp Considering Selling Copier Business

Sharp Corporation is mulling over a decision to sell its copier and air-conditioner businesses according to Japanese media, which includes the Nikkei business daily. The reason for the decision could be shrinking finances, causing the company to consider restructuring any and all non-core assets.

Sharp, which also makes screens for Apple's iPad and iPhone, is in desperate need of a refinancing, as much as ¥360 billion, which translates into approximately $4.45 billion USD, of short-term commercial paper and will also need an additional ¥200 billion in September of next year to cover a maturing convertible bond.

Sharp, which is desperate for funds to refinance looming debt rollovers, is seeking more than ¥100 billion for its key solar panel plant, which is located in Sakai, Western Japan, as part of an asset sale, local media reported. In addition to that, Sharp may sell its buildings in Tokyo as well as television assembly plants in Poland, Malaysia and Mexico, according to a company source.

Kyocera Corporation, Daiwa House Industry Company and Daikin Industries Limited are just a few of the companies that have reportedly shown an interest in buying the copier and air-conditioner businesses according to reports from the Nikkei. Sharp also signed contracts with two overseas consulting firms to help it determine which assets to sell.

Sharp, which also makes Aquos televisions, will also sell its 0.6% stake in Japanese camera maker Olympus Corporation and is also leaning towards disposing of its 9.8% interest in lithium ion battery joint venture Eliiy Power Company, the Nikkei reported. Sharp said in a recent statement that it is considering a plethora of options to improve operations, though refused to comment further on the reports.

Source: Reuters - Sharp may sell copier, air conditioner businesses

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Xerox Seeks to Increase Business with Digital Services Model

Xerox isn't having much luck in terms of share worth these days as the company's shares have failed to break $8 per share since falling below that point in the beginning of May. The company's stock fell dramatically last August from $10.45 per share to $7.70.

Digital commerce and communication have been identified as threats to Xerox's traditional core business of photocopiers and printing. As a result, diversification spread into other services. Xerox acquired Affiliated Computer Services back in 2009, which also slightly turned the business model away from printing and more towards things like add-on services, though the branching out has proved to be fruitful for Xerox.

According to a statement from Morningstar's Michael Holt, "These services aren't tied to printing, but instead stem from IT outsourcing and processing Medicaid claims, which account for half of Xerox's revenue." Holt also stated that printing is cyclical, which exposes Xerox to headwinds. However, as our economy transitions its business model to services, Holt expects greater stability of operating results.

Tablets and smartphones have not been kind to consumer printing, though Xerox has had less exposure to this than some of its competitors like HP and Lexmark. According to Keith Bachman, analyst for BMO Capital Markets, "Xerox is in better shape, since Lexmark has a residual inkjet business and HP has a very meaningful inkjet business - this is positive for Xerox given the trends over the next five years."

The remnants of Xerox's printing business focuses on business and commercial printing, which is also dying at a slower rate than consumer printing. According to Bachman, "There are trends at the corporate level where companies are consolidating four or five laser jets into one in an attempt to lower the cost of printing." In addition to that, Bachman mentioned how Xerox, Cannon and other business printing manufacturers are managing companies' print services by putting printers on office floors that are located away from offices in an attempt to deter employees from printing, though they are still close enough to keep employees from complaining.

However, Xerox's shift to a services business model is one of the clearest signs that the days of a thriving printing industry are well in the past. The consensus analyst estimate for Xerox is $0.26 per share on sales of $5.6 billion. Xerox shares were recently trading at $7.25 and have dropped 12% year-to-date. Lexmark and HP, two of Xerox's biggest rivals, were also trading negative.

Source: Forbes - Xerox Works To Duplicate Copier Glory In Digital Services Model

Questions to Ensure You're Outsourcing to a Green Company

Lots of people and businesses are doing their best to make our world cleaner and more environmentally friendly by "going green". People are buying energy-efficient cars and companies are buying and producing more energy-efficient products in order to clean up the environment. Copiers are one of the biggest developments in "green technology" with many manufacturers trying to make extremely energy-efficient copiers. But how do you pick the right one?

In addition to going green in the office and getting an energy-efficient printer, a lot of companies will outsource printing jobs and look to do so with a company that is also being energy-efficient. The bad news is that a lot of places will claim to be "green" but it's the green from your wallet that they are really after.

So in order to pick the right print shop, you need to know a few key things to ask them before you jump right in. If you ask these questions, you should have no problem finding a company that is perfect for both you and the environment.

First off, you should inquire about what types of papers and inks the company uses. There is a plethora of green printing papers and inks available and if this company isn't taking advantage of them, you might want to look somewhere else. Next, you should ask if they recycle. Nowadays it is easier than ever to recycle and if your print shop doesn't, then they aren't being honest with you or the environment.

After that, ask how they handle their printing equipment. Are they using electronically efficient printing solutions? Do they leave their devices on 24 hours a day? These are clear indicators as to whether or not a company really does take green printing seriously.

These are just a few of the questions you can ask and, if you are truly green yourself, I'm sure you can think of a lot more. If you are truly looking for a real "green" printing solution to outsource jobs to, you should never hesitate to inquire as to whether or not the company you are entrusting your printing to is looking to help the environment or just says they are to make some more cash.

Source: Office Product News - Picking the Perfect Green Printer

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How a Personal Photocopier Works

A photocopier is without a doubt one of the most important pieces of office equipment for any business big or small. Unfortunately, the upkeep and cost of a fully sized multifunctional copier can put them out of reach for many smaller businesses. Luckily, the office-supply market has recently seen the introduction of affordable, personal-sized copiers. One of the best features of these personal copiers is their compact and lightweight frames which gives them the ability to be easily moved from one location to the next. Most personal copiers come equipped with an easy to grab handle so that a business owner or employee can easily move the copier from the office to a meeting or even back to their home. The beauty of these machines is that you can literally take them anywhere you would need to make a copy.

Drum and Toner

The personal copier condenses many of the features of a full-sized copier into a smaller more portable package. Within all copiers are two very important components: the drum and the ink toner. The drum is responsible for creating the image that is being copied while the ink toner is the medium via which the image is transferred to paper. When the copier's intense bright white light hits the paper that is being copied, the light is reflected off the white areas of the page while the rest strikes the drum below the paper. The areas where light hits the drum have their positively charged atoms neutralized while the areas that are blocked by the image on the drum keep their positive atoms. The toner is then attracted to the areas where positive charges are still intact while the areas where the neutralized atoms are present do not attract any toner.

The Printing Process

After the image has been embedded into the drum and the copy is ready to be made, the paper is heated very quickly. The heat applied causes the paper to have a stronger more positive charge than that which exists on the drum. This causes the toner to be attracted to the paper in the exact same pattern that has already been "etched" on the drum thus making a replica of the original image onto the paper. The heat basically causes the toner to fuse and stick to the paper much in the same way your hair is attracted towards a static balloon.

Although personal copiers work in much the same way as a traditional copiers, they are often limited in their printing capabilities. Most personal copiers can only copy about four pages per minute and are limited to only copying documents letter-sized or smaller. Other features like automatic stapling, collating, and dual-sided copies are also common features usually not found in personal copiers.

The Security Risk of Copier Machines

As if individuals and businesses didn't already have their plates full concerning security and safety, they must now add digital copiers to the list of potential security risks which could leak sensitive and personal data. While it’s common knowledge that leaving sensitive information in trash bins or on computers raises the risk of identity theft, many consumers and even IT professionals may not be aware that copy machines themselves also put them at risk. If you didn't know, most modern copiers, or multifunction printers, use hard drives just like the one found in your computer to store every single document copied, scanned, or emailed by the machine. A single machine could have years worth of data and thousands of documents which could give away client records, birth certificates, tax forms, financial records, or even employee social security numbers making these copiers a proverbial pot of gold for criminals.

Even if the copier deletes the image, once it has been printed, the file remains on the hard drive until fully overwritten. Off lease and out of service copiers that are no longer needed will often depart without the previous owner even giving a second thought to the nature of the documents the machine previously handled. Businesses that don’t scrub this data before disposing of the machines are handing over vast amounts of potentially sensitive data to the next owner and possibly a criminal. Copier hard drives should be completely overwritten and reformatted with the original copier software reinstalled. However, the best method to absolutely ensure your data never falls into the wrong hands would be to purchase and install a brand new copier hard drive and then physically destroy the previous hard drive.

A recent investigation conducted by the CBS News proved just how dangerous of a problem this is. CBS purchased four used copiers from a warehouse in New Jersey and quickly went about gleaning all the data from the hard drives. The results were worse than anticipated. Two were once leased to the Buffalo police and the copiers were found to have very sensitive information including reports of domestic violence, a list of wanted sex offenders and even information about suspects from a drug investigation. The third machine contained copies of pay stubs that revealed names, addresses, and social security numbers while the fourth machine came from a New York insurance company with over 300 pages of medical records.

As a result, the Federal Trade Commission is tackling the problem and "now reaching out to copier manufacturers, resellers and retail copy and office supply stores to ensure that they are aware of the privacy risks associated with digital copiers and to determine whether they are warning their customers about the risks." Currently there are no known crimes involving information being stolen from copier machines. But now that the potential security flaw has been brought to the public's attention, there will no doubt be criminals who will try this method of identity theft.

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