Fuji Xerox Australia's revenue falls 10 percent

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Fuji Xerox Australia's revenue falls 10 percent

Fuji Xerox Australia has continued to lose revenue following the fallout over the company's massive accounting scandal.

FXA posted revenue of $690.3 million for the 12 months to 31 March 2018, down $84 million (10.9 percent) from $774.7 million in 2017, according to its annual report recently provided to corporate regulator ASIC.

The biggest fall was product revenue, down $88.6 million (25.3 percent) to $261.4 million. The was offset slightly by a lift in services revenue, up $12.8 million (3.3 percent) to $404.8 million.

FXA's full-year revenue represents a huge drop from the near-$1 billion the company was claiming in 2016.

The company originally reported revenue of $964.3 million in 2016 before being forced to restate this down to $894.9 million after an internal investigation.

The audit, led by parent Fujifilm, found that Fuji Xerox's Australian and New Zealand subsidiaries had overstated revenue on managed service agreements, brought forward revenue to hit targets, repeatedly avoided recognising losses and fabricated monthly accounting numbers.

The investigation found major discrepancies in accounting and led to heads rolling in Australia and Japan, as well as the removal of auditors EY. The 2018 annual report was the second under auditors KPMG.

According to the 2018 annual report, nine directors resigned from Fuji Xerox Australia during the 12-month period, while six new directors were appointed.

FXA once again finished the financial year with a comprehensive loss, though its 2018 loss of $25.6 million was an improvement over a loss of $66 million the year prior.

The company declined to comment. 

According to FXA's annual reports for 2016 and 2017, the number of people employed by the Australian company and the entities it controls, which include print management business Upstream Print Solutions, fell from 2196 to 1506 in the course of a year, a cutback of 690 staff.

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