Xerox Corp. (XRX) revealed a 52% drop in profits to $123 million or 14 cents per share for the third quarter of the year, from $258 million or 29 cents per share in the same quarter a year ago. However, the company did manage to outperform the Zacks Consensus Estimate profit of 12 cents per share. Total revenue declined 16% to $3.7 billion, including a 2 percentage point negative impact from currency. Post-sale and financing revenue went down 11%, or 9% in constant currency. Equipment sale revenue shrank 29% or 28% in constant currency. Operating cash flow was $610 million during the quarter. Xerox has generated $1.2 billion in operating cash flow throughout the third quarter. Consequently, the company has increased its operating cash flow expectation for the full year to $1.7 billion. Gross margin increased of over half a percentage point to 39.8% from ...

U.S. stocks broke a three-day slide and rose more than 1% Monday as a fresh round of strategic corporate deal-making spurred hopes that normalcy is returning to the financial system.  The multi-billion dollar merger announcements signaled a resurrection in merger activity and investors picked up stocks. 

The Dow Jones industrial average jumped 124 points, or 1.3% and the broader S&P 500 index rallied 19 points, or 1.8% and the Nasdaq composite index advanced 40 points, or 1.9%.  The share gains were broad based with 28 of the 30 Dow components advancing.  On the New York Stock Exchange, four stocks rose for each one that declined in price.  Only 978 million shares exchanged hands on the NYSE.  Trading was light due to the Jewish holiday of Yom Kippur.     

In a spate of big corporate merger announcements, Abbott Labs (NYSE:ABT) said it will pay $6.5 billion for Solvay's pharmaceutical business, and

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Another Monday… Another “Game-Changing” Deal

by Martin Denholm, Senior Editor

Monday is Merge Day.

A few weeks ago, the market saw the busiest day of deal-making in three months, as the news-wires lit up with news of several big takeover announcements, including Walt Disney (NYSE: DIS) buying Marvel (NYSE: MVL).

It happened again the following week. In fact, over a 10-day period, more than $40 billion worth of deals were announced.

And even as the third quarter winds down, the pace is still frenetic in the M&A market.

Today saw technology equipment firm Xerox (NYSE: XRX) announce a $6.4 billion deal to buy Affiliated Computer Services (NYSE: ACS) – its biggest acquisition on record.

Xerox investors greeted the news with a collective “ugh,” as shares of the photocopying and business supplies giant spiraled down by 17%. While perhaps

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• Xerox (NYSE:XRX) is buying Affiliated Computer Services (NYSE:ACS) for $6.4 billion or $63.11 per share, equaling $18.60 in cash plus 4.935 Xerox shares for each ACS share owned.

• Johnson & Johnson (NYSE:JNJ) said they have purchased 18.1% of Crucell (NASDAQ:CRXL) for $440 million, a 30% premium to Friday's close.

• Kraft Foods (NYSE:KFT) is likely to launch a hostile bid for Cadbury (NYSE:CBY), in a deal worth $17.6 billion, as the London Observer noted.

• Toyota Motor (NYSE:TM) increased its global sales projection for 2009 by 3% to 6.7 million cars.

Zacks Investment Research

DAVIS, CA — (Marketwire) — 07/09/09 — Octus Energy (OTCBB: OCTI) today announced the addition of two energy industry executives to its management team, strengthening the company’s commercialization of the Octus Smart Energy Platform (OctusSEP). Joining the company are Tobin J.M. Richardson as Senior Advisor, Energy Markets, and Siva Gunda as Senior Engineer, Smart Energy Solutions.

“Smart energy is a dynamic space, and Tobin and Siva are dynamic energy industry executives,” said Chris Soderquist, Octus CEO. “They bring a wealth of relevant, seasoned and contemporary experience and relationships to Octus that we believe will catalyze commercialization of OctusSEP and spring innovation within the company.”

Richardson has 15 years’ experience in strategy and business development with energy and technology companies. He is Director of the ZigBee Smart Energy Initiative, where he drives adoption of energy efficiency technology in key smart energy markets. In 2008, Richardson directed Pacific Gas and Electric Company’s

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