Xerox CEO and Vice Chairman John Visentin has issued an outline of the Norwalk-headquartered company’s near-future objectives, which includes a new focus on cash generation, the launch of a $1 billion share repurchase program and a focus on financial self-sufficiency that does not appear to include plans for acquisition by another entity.
“It’s clear after two months as CEO of this iconic brand that we can return Xerox to the forefront as a leading tech company,” said Visentin in a statement issued by the company. “We currently have software, services and printing technologies, along with a pipeline of innovations, which can disrupt the marketplace and bring increased value to those we serve.”
Visentin stated that the Xerox board of directors authorized a $1 billion share repurchase program, adding that the company is seeking to repurchase up to $500 million by the end of this year. The company will place a renewed emphasis on strengthening its cash generation, with the goal of generating a full-year operating cash flow between $900 million and $1.1 billion and free cash flow of $750 million to $950 million. Xerox is also planning to return at least 50 percent of its free cash flow to shareholders through common dividends and share repurchases on an annual basis.
“Our success will depend on operating with a relentless focus on optimization,” Visentin continued. “Actions include improving the effectiveness and efficiency of our supply chain and go-to-market channels. Equally important is ensuring we provide a great experience for our customers and address their evolving business needs.”
While Visentin made no mention of Xerox’s problems with Fujifilm Holdings following its cancellation of a $6.1 billion acquisition deal, he stressed that the company is focused on self-improvement and did not raise the possibility of another entity coming in to take over its operations.
“While there has been much speculation about Xerox, I want to be clear: My mission is to do what is right for Xerox,” he said. “Our focus is on leveraging the assets and capabilities we have today to create a sustainable company that provides a compelling value proposition for customers and partners.”