Xerox today posted in-line quarterly results driven by strong sales of digital copier supplies and services.
The company said it would buy back shares for the first time in nearly eight years, driving its stock up about 5 per cent.
Xerox said net income fell to $49 million, or five cents a share, including charges and other items, from $149 million, or 17 cents a share, a year earlier.
Excluding costs of litigation, losses from Hurricane Katrina and other one-time charges, Xerox earned 18 cents a share, meeting analysts' average expectation.
Total revenue rose 1 per cent to $3.76 billion, just shy of analysts' estimate of $3.80 billion.
Over the past two years, the company has unveiled new digital printers and office systems and taken market share from competitors, but it is still struggling to boost revenue growth in a slow sales market, where pricing pressures have cut into profit margins.
Xerox has said that over time, it expects digital sales to yield higher margin profits. Third-quarter total equipment revenue rose by 2 per cent amid demand for supplies and service for its newer digital and colour products, which offset declines from similar sales to customers who still have older models.
Xerox also set plans to buy back up to $500 million of its common stock over the next 12 months. Analysts said the repurchase plan was a sign of confidence by Xerox's board.
Xerox forecast a fourth-quarter profit based on generally accepted accounting principles in the range of 25-29 cents a share, including restructuring charges of 5 cents per share.