HP Inc. (NYSE: HPQ) and Xerox Corporation (NYSE: XRX) today
announced an expansion of the companies’ business relationship.
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the full release here:
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Xerox will source from HP certain A4 and entry-level A3 products
with the majority running on Xerox’s award-winning ConnectKey®
controller software, and Xerox will supply toner to HP for these
and other products. The printers will be based primarily on the
laser printing technology HP acquired from Samsung in 2017.
In addition, the companies have agreed to partner in the Device
as a Service (DaaS) market. Xerox will become a DaaS specialist in
HP’s Partner First program in the U.S. Xerox’s services
capabilities and customer reach in the small to midsize business
market, combined with HP’s award-winning DaaS PC offerings, will
allow both companies to meet a wider range of customer needs. Xerox
will be authorized to sell HP PCs, displays and accessories to its
commercial customers through DaaS. HP will also make Xerox’s
cloud-based content management platform DocuShare® Flex
available on its commercial PCs distributed in the U.S.
“This announcement broadens our portfolio of products, software
and services, expands the reach of DocuShare Flex, increases
productivity in our toner facilities, strengthens ConnectKey’s
position in our printer family, and makes us a formidable player in
the IT Solutions business especially with the small to midsize
business we know so well,” said Steve Bandrowczak, President and
Chief Operations Officer, Xerox.
“This arrangement is an extension of our existing relationship
and creates incremental opportunities for HP in several important
areas,” said Enrique Lores, President, Imaging and Printing, HP
Inc. “It further demonstrates the strength of HP’s differentiated
IP and portfolio and positions the business for growth over time in
both office printing and DaaS.”
The companies will announce release dates for the relevant A4
and entry-level A3 printers closer to product launches. Xerox
expects to begin offering HP DaaS to U.S. customers in the second
half of 2019.
About HP Inc.
HP Inc. creates technology that makes life better for everyone,
everywhere. Through our product and service portfolio of personal
systems, printers and 3D printing solutions, we engineer
experiences that amaze. More information about HP Inc. is available
at hp.com.
About Xerox
In the era of intelligent work, we’re not just thinking about
the future, we’re making it. Xerox Corporation is a technology
leader focused on the intersection of digital and physical. We use
automation and next-generation personalization to redefine
productivity, drive growth and make the world more secure. Every
day, our innovative technologies and intelligent work
solutions—Powered by Xerox®—help people communicate and work
better. Discover more at www.xerox.com and follow us on Twitter at
@Xerox.
HP Forward-looking statements
This news release contains forward-looking statements that
involve risks, uncertainties and assumptions. If the risks or
uncertainties ever materialize or the assumptions prove incorrect,
the results of HP Inc. and its consolidated subsidiaries (“HP”) may
differ materially from those expressed or implied by such
forward-looking statements and assumptions.
All statements other than statements of historical fact are
statements that could be deemed forward-looking statements,
including but not limited to any projections of net revenue,
margins, expenses, effective tax rates, net earnings, net earnings
per share, cash flows, benefit plan funding, deferred taxes, share
repurchases, foreign currency exchange rates or other financial
items; any projections of the amount, timing or impact of cost
savings or restructuring and other charges; any statements of the
plans, strategies and objectives of management for future
operations, including, but not limited to, our sustainability
goals, the execution of restructuring plans and any resulting cost
savings, net revenue or profitability improvements; any statements
concerning the expected development, performance, market share or
competitive performance relating to products or services; any
statements regarding current or future macroeconomic trends or
events and the impact of those trends and events on HP and its
financial performance; any statements regarding pending
investigations, claims or disputes; any statements of expectation
or belief, including with respect to the timing and expected
benefits of acquisitions and other business combination and
investment transactions; and any statements of assumptions
underlying any of the foregoing.
Risks, uncertainties and assumptions include the need to address
the many challenges facing HP’s businesses; the competitive
pressures faced by HP’s businesses; risks associated with executing
HP’s strategy; the impact of macroeconomic and geopolitical trends
and events; the need to manage third-party suppliers and the
distribution of HP’s products and the delivery of HP’s services
effectively; the protection of HP’s intellectual property assets,
including intellectual property licensed from third parties; risks
associated with HP’s international operations; the development and
transition of new products and services and the enhancement of
existing products and services to meet customer needs and respond
to emerging technological trends; the execution and performance of
contracts by HP and its suppliers, customers, clients and partners;
the hiring and retention of key employees; integration and other
risks associated with business combination and investment
transactions; the results of the restructuring plans, including
estimates and assumptions related to the cost (including any
possible disruption of HP’s business) and the anticipated benefits
of the restructuring plans; the impact of changes in tax laws,
including uncertainties related to the interpretation and
application of the Tax Cuts and Jobs Act of 2017 on HP's tax
obligations and effective tax rate; the resolution of pending
investigations, claims and disputes; and other risks that are
described or updated from time to time in HP’s filings with the
Securities and Exchange Commission. HP assumes no obligation and
does not intend to update these forward-looking statements.
HP’s Investor Relations website at
http://www.hp.com/investor/home contains a significant amount of
information about HP, including financial and other information for
investors. HP encourages investors to visit our website from time
to time, as information is updated, and new information is
posted.
Xerox Forward-Looking Statements
This release contains “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995. The words
“anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”,
“should”, "targeting", "projecting", "driving" and similar
expressions, as they relate to us, our performance and/or our
technology, are intended to identify forward-looking statements.
These statements reflect management’s current beliefs, assumptions
and expectations and are subject to a number of factors that may
cause actual results to differ materially. Such factors include but
are not limited to: our ability to address our business challenges
in order to reverse revenue declines, reduce costs and increase
productivity so that we can invest in and grow our business; our
ability to attract and retain key personnel; changes in economic
and political conditions, trade protection measures, licensing
requirements and tax laws in the United States and in the foreign
countries in which we do business; the imposition of new or
incremental trade protection measures such as tariffs and import or
export restrictions; changes in foreign currency exchange rates;
our ability to successfully develop new products, technologies and
service offerings and to protect our intellectual property rights;
the risk that multi-year contracts with governmental entities could
be terminated prior to the end of the contract term and that civil
or criminal penalties and administrative sanctions could be imposed
on us if we fail to comply with the terms of such contracts and
applicable law; the risk that partners, subcontractors and software
vendors will not perform in a timely, quality manner; actions of
competitors and our ability to promptly and effectively react to
changing technologies and customer expectations; our ability to
obtain adequate pricing for our products and services and to
maintain and improve cost efficiency of operations, including
savings from restructuring actions; the risk that confidential
and/or individually identifiable information of ours, our
customers, clients and employees could be inadvertently disclosed
or disclosed as a result of a breach of our security systems due to
cyber-attacks or other intentional acts; reliance on third parties,
including subcontractors, for manufacturing of products and
provision of services; the exit of the United Kingdom from the
European Union; our ability to manage changes in the printing
environment and expand equipment placements; interest rates, cost
of borrowing and access to credit markets; funding requirements
associated with our employee pension and retiree health benefit
plans; the risk that our operations and products may not comply
with applicable worldwide regulatory requirements, particularly
environmental regulations and directives and anti-corruption laws;
the outcome of litigation and regulatory proceedings to which we
may be a party; any potential termination or restructuring of our
relationship with Fujifilm Holdings Corporation; the proposed
holding company reorganization; the occurrence and timing of any
closing of the proposed holding company reorganization; the shared
services arrangements entered into by the Company as part of
Project Own It; any potential strategic transaction involving our
customer financing business and/or related assets; and other
factors that are set forth in the “Risk Factors” section, the
“Legal Proceedings” section, the “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” section
and other sections of our Quarterly Reports on Form 10-Q and our
2018 Annual Report on Form 10-K, as well as our Current
Reports on Form 8-K filed with the Securities and
Exchange Commission (SEC). Our forward-looking statements are also
subject to the risks that we may not obtain the expected benefits
of the holding company reorganization, the holding company
reorganization may result in substantial direct and indirect costs
whether completed or not, the holding company will be dependent on
the operations and funds of its subsidiaries, and our business
relationships may be subject to disruption due to uncertainty
resulting from the holding company reorganization and subsequent
investments or strategic transactions undertaken by the holding
company outside of the legacy Xerox business. These forward-looking
statements speak only as of the date of this report or as of the
date to which they refer, and Xerox assumes no obligation to update
any forward-looking statements as a result of new information or
future events or developments, except as required by law.
Xerox®, ConnectKey®, DocuShare® and Powered by Xerox® are
trademarks of Xerox in the United States and/or other
countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20190604005348/en/
HP Inc. Media RelationsMediaRelations@hp.com
HP Inc. Investor RelationsInvestorRelations@hp.com
Xerox Media RelationsCaroline
Gransee-LinseyCaroline.Gransee-Linsey@xerox.com
Xerox Investor Relations:Ann
PettroneAnn.Pettrone@xerox.com
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