Xerox ( XRX), the world's leading provider of digital printers and document management services, turned a profit in the first quarter -- but the company forecast a weaker-than-expected second quarter and slashed its full-year outlook.

Earnings for the quarter reached $42 million, or 5 cents a share, compared with a loss of $244 million, or 27 cents a share, last year. The company met revised guidance, which it cut by 80% last month due to restructuring costs and declining technology spending.

Analysts polled by Thomson Reuters expected a profit of 4 cents a share.

Revenue declined 18% to $3.55 billion from $4.34 billion, hurt by weak demand for printing equipment and supplies.

"During the first quarter, we saw an accelerated rate of decline in enterprise spending on technology, especially in Europe and developing markets," Chief Executive Anne Mulcahy said in a statement.

Earlier in the month Xerox said Mulcahy denied her salary raise and chopped her bonus, as the company copes with the downturn.

Xerox now forecasts second-quarter earnings in the range of 10 to 12 cents a share. It also cut its full-year earnings outlook to a range of 50 to 55 cents a share, down from previous expectations of $1.00 to $1.25.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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