... based on a 5 minute calculation that represents assumptions as follows: Service Revenue grows 6% per year; Technology Revenue declines 8% per year; and Other Revenue declines 10% per year.
At that rate, I project total revenue for XRX to be only $22.1bil in F2017 or more or less flat compared to total revenue I forecast for F2012.
Declines in Technology and Other Revenue gets them closer to 2/3rd of revenues coming from Service Revenue by 2017, 5 years later.
The only difference will be the mix of revenue and what margin improvements hits the bottom line.
Recent margin declines across all categories blamed on new service contracts and pressure from government contracts.
I do not have confidence that their cash flow will improve with transition to higher Service Revenue.