(Reuters) - Xerox Corp (NYSE:XRX) beat fourth-quarter profit estimates on Tuesday as it reined in costs, but its revenue dropped more than expected as businesses continue to cut spending on printers and photocopiers.
The company is streamlining its business and scaling operations under a new management backed by activist investors Carl Icahn and Darwin Deason while cutting costs to compete with smartphones which have reduced the need for printing.
Xerox had agreed to merge with its long-standing joint-venture with Japan's Fujifilm Holdings Corp last year, but that deal was scrapped under pressure from investors Icahn and Deason, and control was handed over to a new management under Icahn-aide Visentin.
Net income attributable to Xerox was $137 million, or 56 cents per share, in the three months ended Dec. 31, compared to a loss of $190 million, or 76 cents per share, a year earlier.
Total revenue fell 7.8 percent to $2.53 billion, missing estimates of $2.56 billion, according to IBES data from Refinitiv.
Excluding items, the company earned $1.14 per share beating estimates of $1.04, helped by 5 percent drop in total costs.