Xerox to revamp healthcare business, records charge

Reuters News
Posted: Jul 17, 2015 8:59 AM

(Reuters) - Xerox Corp said it would revamp its healthcare IT business and record a related impairment charge of about $145 mln in the second quarter.

The company said it would discontinue sales of its integrated eligibility system, a software system which can support operations in call centers and document imaging.

The healthcare business provides administrative and care management solutions to state Medicaid programs and government healthcare programs.

"Going forward, Xerox will focus on managing and completing the current Health Enterprise implementations, and will be highly selective in responding to new Medicaid Management Information System opportunities," the company said in a statement.

Xerox, which has been shifting its focus to IT services from making printers and copiers, adjusted its earnings estimate for the quarter ended June to reflect the charge.

The company said it now expects earnings from continuing operations of 9-11 cents per share, below its prior guidance of 17-19 cents per share.

Leaving the Left
John Stossel

Shares of Xerox, which is expected to report second-quarter results on July 24, were little changed in early trading.

(The story was refiled to correct to say "a software system which can support" from "provides call centers and document imaging services" in paragraph 2)

(Reporting By Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty)