Xerox to revamp health care businessReprints
(Reuters) — Xerox Corp. said it would revamp its health care information technology business and record a related impairment charge of about $145 million in the second quarter.
The company said it would discontinue sales of its integrated eligibility system, a software system that can support call center and document imaging services.
The health care business provides administrative and care management solutions to state Medicaid programs and government health care 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 to 11 cents per share, below its prior guidance of 17 to 19 cents per share.