NEW YORK (S&P Global Ratings) Jan. 26, 2022--U.S.-based printer and information technology services provider Xerox Holdings Corp.'s (BB/Stable/--) revenues and free cash flow were in line with management's revised expectations, though the revenue decline from historical norms and lower profits highlight the continued challenging operating environment. Revenue declined 7.4% year over year in the fourth quarter of 2021. Xerox's midrange equipment revenue declined about 31% because of ongoing supply chain challenges and a slower return to offices. The company noted good demand as indicated by a rising backlog of nearly $350 million (one quarter of equipment sales) that it expects to lead to some improvement in the coming quarters. While Xerox is reducing costs, its adjusted profit margin fell to
