Xerox Corporation (XRX – Free Report) reported relatively modest fourth-quarter 2016 results with adjusted earnings of $260 million or 25 cents per share compared with $285 million or 27 cents per share in the year-ago quarter. The year-over-year decrease in adjusted earnings was primarily due to lower revenues. The adjusted earnings were in line with the Zacks Consensus Estimate.

GAAP income (from continuing operations) for the reported quarter was $181 million or 17 cents per share compared with $256 million or 24 cents per share in the year-ago quarter.

Total revenue for the fourth quarter was $2,734 million compared with $2,946 million in the year-earlier quarter. The year-over-year decrease was attributable to decline in both its operating segments.

For full-year 2016, the company reported revenues of $10,771 million compared with $11,465 million in 2015. GAAP net income from continuing operations were $616 million or 58 cents per share compared with $848 million or 77 cents per share in 2015.                     

Segmental Performance

Revenues from the Services segment, which include Document Outsourcing and certain other services businesses that were transferred from the BPO business to Xerox prior to the separation, were down 3.9% year over year to $894 million (33% of total revenues) in the reported quarter.

Revenues in the Document Technology segment declined 9.9% year over year to $1,693 million due to weak sales and an adverse currency impact. Segment margin remained strong at 14.6%.

Restructuring Update

Xerox completed the separation of its business process services company, now an independent company named Conduent Incorporated (CNDT – Free Report) .

Net restructuring and asset impairment charges of $76 million for the quarter included $57 million of severance costs related to headcount reduction of roughly 800 employees worldwide and lease cancellation charges of $26 million, primarily related to early termination of the lease for the company’s corporate airplane as a result of the elimination of its corporate aviation department. These expenses were partly offset by $7 million of net reversals for changes in estimated reserves from prior period initiatives.