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News from Xerox Holdings Corporation xerox ™ Xerox Holdings Corporation 201 Merritt 7 Norwalk , CT 06851-1056 Xerox Releases First - Quarter Results , Affirms Guidance Increased demand drives equipment revenue and IT Services growth , company poised to capitalize on economic recovery Financial Summary • $ 1.71 billion of revenue , down 8.1 percent year - over - year or 10.4 percent in constant currency . • • • • GAAP earnings per share ( EPS ) of $ 0.18 , up $ 0.21 year - over - year , and adjusted EPS of $ 0.22 , up $ 0.01 year - over - year . Adjusted operating margin of 5.2 percent , up 50 basis points year - over - year . $ 117 million of operating cash flow , down $ 56 million year - over - year . $ 100 million of free cash flow , down $ 50 million year - over - year . _ NORWALK , Conn . , April 20 , 2021 — Xerox Holdings Corporation ( NYSE : XRX ) today announced 2021 first - quarter results . “ In the first quarter , in an environment where many offices remained closed , we grew equipment sales and IT Services revenue year - over - year . I am proud of how our employees have continued to deliver for our customers during the pandemic . We made progress toward standing up XFS , Xerox Software and PARC Innovation as separate businesses , which we now expect to complete in calendar year 2021 , " said Xerox Vice Chairman and CEO John Visentin . “ With small and medium - sized business and enterprise clients planning to return more employees to the office , our differentiated offerings are well - positioned to serve their growing needs . The strength of our performance , portfolio and strategy gives us confidence we will return Xerox to growth in 2021. " First - Quarter Key Financial Results : ( in millions , except per share data ) Q1 2021 Q1 2020 B / ( W ) YOY % Change Revenue $ 1,710 Gross Margin 35.7 % $ 1,860 38.3 % $ ( 150 ) ( 260 ) bps YOY ( 8.1 ) % AC ( 10.4 ) % CC1 RD & E % 4.3 % 4.5 % 20 bps SAG % 26.2 % 29.1 % 290 bps Pre - Tax Income ( Loss ) $ 53 $ ( 5 ) $ 58 NM Pre - Tax Income ( Loss ) Margin 3.1 % ( 0.3 ) % 340 bps Operating Income - Adjusted¹ $ 89 $ 87 $ 2 2.3 % Operating Margin - Adjusted¹ 5.2 % 4.7 % 50 bps GAAP Earnings ( Loss ) per Share $ 0.18 $ ( 0.03 ) $ 0.21 NM Earnings Per Share - Adjusted¹ $ 0.22 $ 0.21 $ 0.01 4.8 % ( 1 ) Refer to the " Non - GAAP Financial Measures " section of this release for a discussion of these non - GAAP measures and their reconciliation to the reported GAAP measures . 1