Xerox Issues Warning Citing Weak Revenue

Citing weaker-than-expected revenue in North America and Europe, Xerox (XRX Quote) said on Monday that it will post a loss instead of the profit analysts had expected in the third quarter.

The Stamford, Conn., printer company said it expects a loss of between 15 cents and 20 cents a share, compared to a profit of 12 cents a share predicted by analysts polled by First Call/Thomson Financial.

Plagued by financial missteps in recent quarters, Xerox's stock has lost more than half its value in the past year. Its shares, which had closed up 31 cents, or 2.08%, at $15.31, fell to $12.63 after hours, according to Instinet.

The company scheduled a conference call for Tuesday morning to discuss the problems.

Xerox had already warned that its financial results for the second half of the year would be disappointing.

"These results are obviously disappointing and completely unacceptable," said Paul Allaire, chairman and chief executive, in a statement issued after the stock market closed. "Clearly, actions beyond resolving our operational issues are required, including major cost reductions, asset dispositions and a review of the dividend level."