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The loss per share was USD0.40, including net restructuring charges, gains from the early retirement of debt and a USD0.28 per share charge from its exiting from the small office/home office (SOHO) area.
These results have come following the company's announcement in June that it would be cutting 450 jobs at its Irish operations in Dundalk.
Losses before these one off items were USD201 million or USD0.10 a share, in line analyst's estimates of losses between USD0.08 and USD0.12 a share. This compares to a profit of USD201 million or USD0.27 a share for the second quarter of 2000.
Revenues in Q2 2001 fell 13 percent to USD4.14 billion from USD4.78 billion for the same period last year.
"Our challenge for the second half of 2001 is driving growth in weakened economic markets," said Anne M. Mulcahy, president and chief operating officer. "We continue to expect a return to profitability in the second half of 2001, but the economic environment and normal third-quarter seasonality will likely delay this to the fourth quarter," said Mulcahy.
The company said pre-currency revenue declines of four percent in North America and seven percent in Europe represented, in part, a weakened economic environment that impacted equipment sales.
Xerox said a 33 percent revenue decline in developing markets was driven by the company's reconfiguration of its Latin American operations.
"Over the past year, we've taken the necessary actions to streamline our business and build on core growth opportunities in the production, printing and networked office markets with a focus on colour, services and solutions," said Mulcahy.
While year on year revenues decreased, Xerox said its net debt was down USD700 million from the first quarter of 2001 and it had USD2.2 billion in cash.
The company also reported continued progress in the reduction of inventory by approximately USD200 million, reduced capital spending and improved receivables performance.
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