Although the groups net income fell 1% on the same period last year to 53m ($86m), and total revenues also fell 1% to 2.3bn, its colour revenues rose 19% to 500m.
Production equipment sales rose 11% to 177m, due to strong colour equipment sales growth, particularly from the DocuColor 6060 and DocuColor iGen3.
Production colour unit installations grew 7% in the period, led by the DocuColor 6060.
Total equipment sales of 628m were up 8% on the second quarter of 2002, reflecting product launches and a 7% benefit from currency fluctuations.
Xerox said around 50% of its equipment sales revenue were generated from products launched in the last two years.
Despite economic uncertainty, chairman and chief executive Anne Mulcahy said Xerox was well positioned to compete aggressively and strengthen its business, largely through improved equipment sales.
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