Xerox Now Expects Q3 Loss On Charges - Quick Facts

(RTTNews) - Xerox (XRX) announced the company now expects a third-quarter GAAP loss from continuing operations of 3 to 5 cents per share. The company's third-quarter 2015 results will reflect an after-tax charge of approximately $240 million related to Health Enterprise Medicaid platform implementations.

Xerox reported that third-quarter adjusted earnings per share, excluding charge, is expected to be in line with its guidance of 22 to 24 cents.

Xerox said, late in the third quarter, discussions took place with clients in California and Montana regarding the status and scope of current Health Enterprise platform projects, which evolved to include options to not fully complete the projects. Based on the discussions, Xerox believes it is probable that it will not fully complete the implementation of the platform in these states.

Xerox is recording a pre-tax charge of approximately $385 million (approximately $240 million after-tax or 22 cents per share) in its third-quarter 2015 results reflecting estimated settlement costs and other impacts from these changes.