Posts tagged: DMO

The Impact of the Economy on Digital Print Volume

Jim Hamilton
 Apr 28, 2009

One of the major questions for our industry in the wake of the economic downturn is: “What impact does this have on the digital print volume?” A partial answer to that question came at Xerox’s financial analyst briefing on Friday (April 24, 2009). In discussing its first quarter 2009 numbers Xerox provided information on its post-sale revenues. This revenue is driven largely by supplies and service for digital print products, which, of course, would be impacted by a drop in print volume.

Three months ago when discussing its fourth quarter 2008 results, Xerox was not ready to admit the extent of print volume declines. The issue, Xerox said, was masked to some degree by the channel’s inventory of supplies. Maybe in these tough economic times users were choosing to stockpile fewer consumables and waiting longer to reorder. If a shift in inventory levels was happening, then print volumes might not be dropping. With another quarter under its belt Xerox acknowledges that print volumes indeed are down.

The main headline in regard to Xerox’s first quarter financial results is that there was an 18% drop in revenue from Q1 2008 to Q1 2009. Some of the impact of the drop was from currency exchange, but even accounting for that the drop was 12%. Post-sale revenue was down 14% (only 8% under constant currency). Xerox attributed this to lower supplies and paper revenue. Equipment revenue was down 30% (26% under constant currency). Read more »

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