“Market Cap $13.56 B As of May 2014
At a Glance
- Industry: Business Products & Supplies
- Founded: 1906
- Country: United States
- CEO: Ursula Burns
- Website: www.xerox.com
- Employees: 143,100
- Sales: $21.59 B
- Headquarters: Norwalk, Connecticut
#456 Global 2000
- #437 in Sales
- #561 in Profit
- #775 in Assets
- #826 in Market value
#93 World’s Most Powerful Brands (2012)
Xerox Corp. provides business process and information technology outsourcing, and document management services. It provides document technology, services, software and supplies for graphic communication and office printing environments of any size. The company operates through three segments: Services, Technology and Other. The Services segment is comprised of business process outsourcing, informationtechnology outsourcing and document outsourcing. Its Business process outsourcing services include government healthcare solutions, healthcare payer and pharma, healthcare provider solutions, human resources services, financial services, customer care, retail, travel and insurance, transportation solutions and government solutions. The Information technology outsourcing specializes in designing, developing and delivering effective IT solutions. Its services include mainframe server outsourcing, network outsourcing, desktop outsourcing and cloud services. The Document outsourcing includes managed print services and communication and marketing services. The Technology segment is comprised of document technology and related supplies, technical service and equipment financing. Its strategic product groups within this segment include entry, mid-range and high-end products. This segment includes the sale of document systems and supplies, technical services and product financing. The Other segment includes revenue from paper sales, wide-format systems, network integration solutions and electronic presentation systems from global imaging systems. Xerox was founded in 1906 and is headquartered in Norwalk, CT.“
Xerox was founded in 1906 in Rochester as The Haloid Photographic Company, which originally manufactured photographic paper and equipment.
In 1938 Chester Carlson, a physicist working independently, invented a process for printing images using an electrically charged drum and dry powder “toner.”
Joseph C. Wilson, credited as the “founder of Xerox,” took over Haloid from his father. He saw the promise of Carlson’s invention and, in 1946, signed an agreement to develop it as a commercial product. Wilson remained as President/CEO of Xerox until 1967 and served as Chairman until his death in 1971.
Looking for a term to differentiate its new system, Haloid coined the term Xerography from two Greek roots meaning “dry writing”. Haloid subsequently changed its name to Haloid Xerox in 1958 and then Xerox Corporation in 1961.
Before releasing the 914, Xerox tested the market by introducing a developed version of the prototype hand-operated equipment known as the Flat-plate 1385. The 1385 was not actually a viable copier because of its speed of operation. As a consequence, it was sold as a platemaker to the offset lithography market, perhaps most notably as a platemaker for the Addressograph-Multigraph Multilith 1250 and related sheet-fed offset printing presses. It was little more than a high quality, commercially available plate camera mounted as a horizontal rostrum camera, complete with photo-flood lighting and timer. The glass film/plate had been replaced with a selenium-coated aluminum plate. Clever electrics turned this into a quick developing and reusable substitute for film. A skilled user could produce fast, paper and metal printing plates of a higher quality than almost any other method. Having started as a supplier to the offset lithography duplicating industry, Xerox now set its sights on capturing some of offset’s market share.
The 1385 was followed by the first automatic xerographic printer, the Copyflo, in 1955. The Copyflo was a large microfilm printer which could produce positive prints on roll paper from any type of microfilm negative. Following the Copyflo, the process was scaled down to produce the 1824 microfilm printer. At about half the size and weight, this still sizable machine printed onto hand-fed, cut-sheet paper which was pulled through the process by one of two gripper bars. A scaled-down version of this gripper feed system was to become the basis for the 813 desktop copier.
The Xerox 914
The company came to prominence in 1959 with the introduction of the Xerox 914, “the most successful single product of all time.” The 914, the first plain paper photocopier was developed by Carlson and John H. Dessauer; it was so popular that by the end of 1961 Xerox had almost $60 million in revenue. Revenues leaped to over $500 million by 1965.
The company expanded substantially throughout the 1960s, making millionaires of some long-suffering investors who had nursed the company through the slow research and development phase of the product. In 1960, a xerography research facility called the Wilson Center for Research and Technology was opened in Webster, New York. In 1961, the company changed its name to Xerox Corporation. Xerox common stock (XRX) was listed on the New York Stock Exchange in 1961 and on the Chicago Stock Exchange in 1990.
In 1963 Xerox introduced the Xerox 813, the first desktop plain-paper copier, realizing Carlson’s vision of a copier that could fit on anyone’s office desk. Ten years later in 1973, a basic, analogue, color copier, based on the 914, followed. The 914 itself was gradually sped up to become the 420 and 720. The 813 was similarly developed into the 330 and 660 products and, eventually, also the 740 desktop microfiche printer.
Xerox’s first foray into duplicating, as distinct from copying, was with the Xerox 2400, introduced in 1966. “2400” denoted the number of prints produced in an hour. Although still some way short of offset speeds, this machine introduced the industry’s first Automatic Document Feeder, Slitter/Perforator, and Collator (sorter). This product was soon sped up by fifty percent to become the Xerox 3600 Duplicator.
Meanwhile, a small lab team was borrowing 914 copiers and modifying them. The lab was working on a project called the “Long Distance Xerography” (LDX) project. The aim was to be able to connect two copiers together via the public telephone network, such that a document scanned on one machine would be copied out on the other. The LDX system was introduced in 1964. Many years later this work came to fruition in the Xerox Telecopiers, seminal to today’s fax machines. The fax operation in today’s multifunction copiers is true to Carlson’s original vision for these devices.
C. Peter McColough, a longtime executive of Haloid and Xerox took over as CEO from Joseph Wilson in 1968.
In 1968 the company consolidated its headquarters at Xerox Square in downtown Rochester with its iconic 30-story Xerox Tower. In 2007 the headquarters was moved to Stamford, Connecticut, but most of the office staff remained in Rochester. In 2009 Xerox decided to sell the property, and the sale was completed in 2013, with Xerox continuing to lease space for the remaining approximately 1400 employees.
Xerox embarked on a series of acquisitions. University Microfilms was purchased in 1962, and Electro-Optical Systems in 1963.In 1969, Xerox acquired Scientific Data Systems(SDS). It renamed the division Xerox Data Systems (XDS) and produced the Sigma line and its successor the XDS 5xx series of mainframe computers in the 1960s and 1970s. XDS was sold to Honeywell in 1975.
Archie McCardell was named president of the company in 1971. During his tenure, Xerox introduced the Xerox 6500, its first color copier. During McCardell’s reign at Xerox, the company announced record revenues, earnings and profits in 1973, 1974, and 1975. John Carrol became a backer, later spreading the company throughout North America.
In the mid-1970s Xerox introduced the “Xerox 9200 Duplicating System.” Originally designed to be sold to print shops, to increase their productivity, it was twice a fast as the 3600 duplicator at two impressions per second (7200 per hour). It was followed by the 9400 which did auto duplexing and then by the 9500 which offered zoom reduction.
In a 1975 Super Bowl commercial for the 9200, Xerox debuted an advertising campaign featuring “Brother Dominic,” a monk who used the 9200 system to save decades of manual copying. Dominic, portrayed by Jack Eagle, became the face of Xerox into the 1980s.
Following these years of record profits, in 1975 Xerox resolved an anti-trust suit with the United States Federal Trade Commission (FTC), which at the time was under the direction of Frederic M. Scherer. The Xerox consent decree resulted in the forced licensing of the company’s entire patent portfolio, mainly to Japanese competitors. Within four years of the consent decree, Xerox’s share of the U.S. copier market dropped from nearly 100% to less than 14%.
In 1979 Xerox purchased Western Union as the basis for its proposed Xerox Telecommunications Network (XTEN) for local-loop communications. However, after three years the company decided the idea was a mistake and sold its assets to MCI at a loss.
David T. Kearns, a Xerox executive since 1971, took over as CEO in 1982. The company was revived in the 1980s and 1990s, through improvement in quality design and realignment of its product line. Attempting to expand beyond copiers, in 1981 Xerox introduced a line of electronic memory typewriters, the Memorywriter, which gained 20% market share, mostly at the expense of IBM.
In 1983 Xerox bought Crum & Forster, an insurance company, and formed Xerox Financial Services (XFS) in 1984.
In 1990 Paul Allaire, a Xerox executive since 1966, succeeded David Kearns, who had reached mandatory retirement age. Allaire disentangled Xerox from the financial services industry.
Development of digital photocopiers in the 1990s and a revamp of the entire product range again gave Xerox a technical lead over its competitors. Digital photocopiers were essentially high-end laser printers with attached scanners, known as Multi Function Machines, or just MFMs, which were able to be attached to computer networks. Xerox worked to turn its product into a service, providing a complete document service to companies including supply, maintenance, configuration, and user support.
To reinforce this image, in 1994 the company introduced a corporate signature, “The Document Company”, above its main logo and introduced a red digital X. The digital X symbolized the transition of documents between the paper and digital worlds.
In the mid-1990s LA County Superior Court turned to Xerox for help in replacing nearly 500 aging copiers throughout LA County, but Xerox refused to consider leasing. The County instead went to Konica and introduced the concept of leasing of copiers for the first time in the industry. Xerox was shut out of the County for the next two years.
In April 1999 Allaire was succeeded by Richard Thoman, who had been brought in from IBM in 1997 as president. The first “outsider” to head Xerox Thoman became a victim of internal politics, and he was forced to resign in 2000.
After Thoman’s resignation Allaire again resumed the position of CEO and served until the appointment of Anne M. Mulcahy, another long-term Xerox executive. Xerox’s turnaround was largely led by Mulcahy, who was appointed president in May 2000, CEO in August 2001 and chairman in January 2002.She launched an aggressive turnaround plan that returned Xerox to full-year profitability by the end of 2002, along with decreasing debt, increasing cash, and continuing to invest in research and development.
In 2000, Xerox acquired Tektronix color printing and imaging division in Wilsonville, Oregon, for US$925 million. This led to the current Xerox Phaser line of products as well as Xerox solid ink printing technology.
In September 2004, Xerox celebrated the 45th anniversary of the Xerox 914. More than 200,000 units were made around the world between 1959 and 1976, the year production of the 914 was stopped. Today, the 914 is part of American history as an artifact in the Smithsonian Institution.
In November 2006, Xerox completed the Acquisition of XMPie. XMPie, the leading provider of software for cross-media, variable data one-to-one marketing, offers solutions to help businesses create and manage highly-effective direct marketing and cross-media campaigns.
In October 2008, Xerox Canada Ltd. was named one of Greater Toronto’s Top Employers by Mediacorp Canada Inc., which was announced by the Toronto Star newspaper.
On May 21, 2009, it was announced that Ursula Burns would succeed Anne Mulcahy as CEO of Xerox. On July 1, 2009, Burns became the first African American woman to head a company the size of Xerox.
On September 28, 2009, Xerox announced the intended acquisition of Affiliated Computer Services, a services and outsourcing company, for $6.4 Billion. The acquisition was completed in February 2010. Xerox said it paid 4.935 Xerox shares and $18.60 cash for each share of ACS, totaling $6.4 billion, or $63.11 a share for the company.
In May 2011, Xerox acquired NewField IT for an undisclosed sum. NewField IT developed the Asset DB toolset which is widely used across the managed print services (MPS) market along with MPS market-leading consulting and software services delivering a large impact for this relatively small acquisition.
In December 2013, Xerox sold their Wilsonville, Oregon solid ink product design, engineering and chemistry group and related assets previously acquired from Tektronix to 3D Systems for $32.5 million in cash.
The laser printer was invented in 1969 by Xerox researcher Gary Starkweather by modifying a Xerox 7000 copier. Xerox management was afraid the product version of Starkweather’s invention, which became the 9700, would negatively impact their copier business so the innovation sat in limbo until IBM launched the 3800 laser printer in 1976.
The first commercial non-impact printer was the Xerox 1200, introduced in 1973, based on the 3600 copier. It had an optical character generator designed by optical engineer Phil Chen.
In 1977, following IBM’s laser printer introduction, the Xerox 9700 was introduced. Laser printing eventually became a multi-billion-dollar business for Xerox.
In the late 1970s Xerox introduced the “Xerox 350 color slide system” This product allowed the customer to create digital word and graphic 35mm slides. Many of the concepts used in today’s “Photo Shop” programs were pioneered with this technology.
In 1980, Xerox announced the forward looking 5700 laser printing system, a much smaller version of their 9700, but with revolutionary touch screen capabilities and multiple media input (word processing disks, IBM magcards, etc.) and printer ‘finishing’ options. This product was allegedly never intended to make the commercial markets due to its development cost, but rather to show the innovation of Xerox. It did take off with many customers, but was soon replaced with its still smaller and lower cost 2700 Distributed Electronic Printer offering in 1982.
Palo Alto Research Center
In 1970, under company president C. Peter McColough, Xerox opened the Xerox Palo Alto Research Center, known as Xerox PARC. The facility developed many modern computing technologies such as the graphical user interface (GUI), laser printing, WYSIWYG text editors and Ethernet. From these inventions, Xerox PARC created the Xerox Alto in 1973, a small minicomputer similar to a modernworkstation or personal computer. This machine can be considered the first true Personal Computer, given its versatile combination of a cathode-ray-type screen, mouse-type pointing device, and a QWERTY-type alphanumeric keyboard. But the Alto was never commercially sold, as Xerox itself could not see the sales potential of it. It was, however, installed in Xerox’s own offices, worldwide and those of the US Government and military, who could see the potential. Within these sites the individual workstations were connected together by Xerox’s own unique LAN, The Ethernet. Data was sent around this system of heavy, yellow, low loss coaxial cable using the packet data system. In addition, PARC also developed one of the earliest internetworking protocol suites, the PARC Universal Packet (PUP).
In 1979, Steve Jobs made a deal with Xerox’s venture capital division: He would let them invest $1 million in exchange for a look at the technology they were working on. Jobs and the others saw the commercial potential of the WIMP (Window, Icon, Menu, and Pointing device) system and redirected development of the Apple Lisa to incorporate these technologies. Jobs is quoted as saying, “They just had no idea what they had.” In 1980, Jobs invited several key PARC researchers to join his company so that they could fully develop and implement their ideas.
In 1981, Xerox released a system similar to the Alto, the Xerox 8010 Star. It was the first commercial system to incorporate technologies that have subsequently become commonplace in personal computers, such as a bitmapped display, window-based GUI, mouse, Ethernet networking, file servers, print servers and e-mail. The Xerox 6085 Star, despite its technological breakthroughs, did not sell well due to its high price, costing $16,000 per unit. A typical Xerox Star-based office, complete with network and printers, would have cost $100,000.
In the mid-1980s, Apple considered buying Xerox; however, a deal was never reached. Apple instead bought rights to the Alto GUI and adapted it into to a more affordable personal computer, aimed towards the business and education markets. The Apple Macintosh was released in 1984, and was the first personal computer to popularize the GUI and mouse amongst the public.
In 2002 PARC was spun off into an independent wholly owned subsidiary of Xerox.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “Xerox“