You are giving to much credit to those guys, believing they have a strategy. Lexmark was not profitable at all and Xerox was drowning in debts. They added costs to have short term cash and, considering the declining market, there is no way they can start making profit. What you've seen in recent results was due to extraordinary events and, most of all, channel stuffing. They are giving strong rebates to partners asking them to early purchase toners. It is clearly visible in the balance sheet. Once t'cost of stock will not be sustainable (dealers/distributors already have many months of stock) it will be to expensive for Xerox to sell more and the reality will suddenly explodes.
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@ak Well, it is normal. They aren't able to plan mid/long term (nobody can anyway, the toy is simply broken). What is achievable, leveraging such 'creative solutions', is to survive some more months but it is clear that, pulling the rope this way is a dangerous game...There ks no chance in actual printing market to be competitive in HW placement while generating enough profit to return the outstanding debt. Who ever sell this, and we ever trust this, is just an id--t....
They were owed 105 million in a few months, sold it for 80 million - a 25 million dollar haircut, to book the money now and spend it on debt in a way that will make future borrowing impossible and speed up the end of XRX.
Yawwnnnnnn….