4.7% revenue reduction Y-O-Y and suspension of dividend says it all.
35 replies (most recent on top)
@yw TA and RA
@f6 TA and who?
Nice stock price 🤣
I know right? It could have been much worse. You're welcome. 😊
Nice stock price 🤣
@d2 He was smart in padding his own wallet even though he did bad for the company. Not a whole lot different than the 2 main managers in bldg. 111. They have a real crime ring going to keep their families enriched while destroying the company.
They have realized more vacation perks and bonuses beyond belief, and we keep them for some reason.
@cz He did plenty of damage. He did not value customer admin, but did value having his own jet…
@OP Does anyone else think it's crazy that JB is still on the board, drawing a huge salary, supposedly advising the board with his stellar intellect and his high school only diploma, when he was one of the architects of this mess?
GG here: a duh, money. A doi, finance stuff. A duh, I smart. Listen to me, I know stuff. DUUUHHHHHH.
@b0 confused by your post. RT was not CEO long enough to do damage and was obviously brought in with a golden parachute deal to cover for PA and BR dirty SEC violations. I continue to be upset that Xerox money was used to defend PA and BR in the SEC lawsuits that Xerox lost.
Operating cash flow a year ago was $116M and this latest quarter $30M (not $30, I made a type error).
@bb When a company has poor balance sheet, vendors will reconsider their pay term arrangement as part of the due diligence when offering credits. With Xerox performance sliding at this rate, it is no surprise that you will see suppliers starting to acknowledge their financial standing and accordingly make adjustments. The effect is felt when you see cash being paid to supplier before the machine is sold. For example, if the pay term is 60 days and the machine is sold within 60 days, then it works well. If the pay term is 30 days and the machine is sold after 30 days, then this will chew up their operating cash flow.
If you compare the operating cash flow a year ago at $116M, with what was reported in the latest quarter at $30, you understand how important it is they need good pay terms.
I think it is disastrous by the time all suppliers complete their review with their latest performance.
@b0 RT, genius, 29 yrs and still going strong getting 800K a year.
This is more than that. XITS got shut off at at least one direct vendor I know of, and possibly more.
Not extra points, shut down.
@aq I’m not sure their withholding terms, but most partners pay net-30, XITS negotiated net-60, which costs more on the front end (Ingram will ask a few more pts in lieu of their additional risk), the interest rate environment made it more painful, and in the event you have limited supply on higher margin servers, distribution is within their rights to prioritize “pay-fast” partners, hence the backlog.
The beginning of the end was 29 years ago when they went outside the company to hire RT as CEO.
@an they were d-mb enough to invest in a company that is obviously done and they will have to pay for that id--tic decision.
@an GG here:
They don't have any good options and I have zero sympathy for them.
Their best option is to keep making noise and hope the company makes them whole on a share buyback.
The board and Deason family approved ki-ling the common and preferred dividends, so there is money there to possibly buy them out, but I doubt it.
The fact that LP admitted that vendors are withholding Net terms to XRX on an earnings call is wild. I saw the Goodwill write down coming, but I would have never dreamed that LP would admit such a thing on a call with analysts. Things are actually worse that I thought they were.
@af Severance is optional for a company to pay exiting employees you know. Staying till the end may not have been the best planning. If you are 65 or older, then yes, it is. If you are around 50, you should have been long gone.
@ag - GG - if you were Starteepo what option you have? If the idea is shot down and you own 8% or whatever - surely they can’t keep investing - especially since dividends have been suspended. Do they cut their losses and sell to minimize the loss?
@ab what? With that clown 🤡 MG in charge. Completely clueless.
Revenue quiz:
2025 Q2 down 0.1%, Q3 up 28.3%, Q4 up 25.7%
2026 Q1 up 26.7%, Q2 up 22.0%, Q3 down 4.7%
What do the up quarters have in common?
Winner gets Dunkin Donuts with Steve B. (not really)
@ah the beginning of the end was 15 years ago.
@OP This is the beginning of the end I think.
LP will be exercising his exit option I think. It would be the smart move for him, and all will follow.
We will see what CH 11 looks like for them.
I feel bad for the investors, but they knew they were gambling.
GG here:
Chuck shot down Starteepo's spinoff scheme, saying they hired a consultant to look at that years ago, and they advised against it.
I wonder what activist shareholder nonsense we'll get out of them next? XFS sale is a no-go, all dividends are gone now (that is wild that the Deason family let that happen), so there is nothing they can really bank on about.
I hope I get severance. Haha
GG here.
The JP Morgan guy on the Q&A section called LP out on the vendor thing and he just admitted pretty much they are having credit issues on the call. Wild!
@aa an analyst is asking LP about the tighter supplier terms and what he means - seems LP avoided the question
@ab they were until MG took over and starting changing the world. Teams all over the world are struggling to sell as no defined model
IT sales were down 17% YoY?! I thought they were the profitable part of the company?
GG here:
LP just said something like "tightening supplier terms" for the ITsavvy part of the business being part of the problems.
It sure sounded like the vendors are tightening credit on XRX, or possibly REFUSING it, and he had to address it on the call.
HOLY F&*$ I cannot believe he said that on a call. I need to listen to this again when the transcript comes out.
@a6 I always said 'short' is the right choice on XRX. Cashflow is declining, revenue is not growing and dept renegotiation is just a an alternative way to define a default....
Wow what an email to wake up to here. Here are my 2 cents worth
PRINT - all the buzz is floating around but I have a simple fix, get support either localized or with people who can speak English correctly and aren't reading from scripts with no knowledge of printers
IT - My manager in Canada was recently 'removed' for speaking out against ITAAS as it's made up to keep the investors happy. Behind the scenes its a total washout and it's like they are trying to create something that's existed for many years. ITAAS doesn't even make sense. The reason we can't close IT deals is because no one has faith in the systems and people behind it. The US need to start looking at Canada/UK and other areas where support is delivered effectively and stop trying to force broken products up our a. AI isn't going to save you money. It's poorly managed internally and you still need monkeys to manage it
@a6 need goodwill guy to help break it down
@OP pre market trading is down 70 cents it seems. Also not understanding- revenue is up - but why the damaging pre trading levels? I read it’s something to do with miss guidance, cash flow etc? Also I’m not understanding the debt issue - seems they pushed out their obligations until 2030? Are there just delay tactics ?
$959 million Goodwill charge. I guess Goodwill Guy was right. As of now, the Enterprise Value is lower than the debt.