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CNBC TRANSCRIPT: CNBC'S MARIA BARTIROMO SPEAKS WITH XEROX CEO URSULA BURNS TODAY ON CNBC'S "CLOSING BELL WITH MARIA BARTIROMO"

Ursula Burns
Source: xerox.com
Ursula Burns

When: Today, Tuesday, Sept. 21st at 4:15pm ET

Where: CNBC's "Closing Bell with Maria Bartiromo"

Following is an unofficial transcript of a CNBC EXCLUSIVE interview with XEROX CEO Ursula Burns today on CNBC's "Closing Bell with Maria Bartiromo."

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BARTIROMO: MEANWHILE, XEROX CEO TELLS URSULA BURNS, TELL CNBC TODAY MORE ACQUISITIONS, A DIVIDEND INCREASE AND A STOCK BUYBACK ARE LIKELY IN THE COMPANY'S FUTURE. TAKING A BREAK FROM THE COMPANY'S ANALYST MEETING, MS. BURNS TOLD ME SHE'S FOCUSED ON PAYING DOWN THE DEBT. AND SHE'S AIMING TO GENERATE ENOUGH FREE CASH AFTERWARDS TO RETURN TO SHAREHOLDERS BY WAY OF A HIGHER DIVIDEND, LIKELY BY 2011. I CAUGHT UP WITH MS. BURNS AT CITI FIELD, HOME OF THE NEW YORK METS BASEBALL CLUB AND ALSO A XEROX CLIENT. TO HEAR HER BLUEPRINT FOR THE COMPANY'S FUTURE AND TO THE CURRENT APPETITE FOR ITS SERVICES.

BARTIROMO: HERE WE ARE AT CITI FIELD, MET STADIUM. WHY HERE?

BURNS: WELL, FIRST OF ALL, WE ARE A PARTNER WITH THE METS. WE SPONSOR THE METS. AND THEY HELP US. WE DO A LOT OF DOCUMENT SERVICES, BUSINESS PROCESS SERVICES FOR THEM AND HELP THEM TRANSFORM THEIR BUSINESS. AND WE FOUND THIS PARTNERSHIP. THE REASON WHY WE'RE HERE IS YOU WOULDN'T EXPECT US TO BE HERE. PEOPLE WOULD SAY, WELL WHAT THE HECK IS XEROX DOING AT CITIFIELD AND WHAT ARE THE METS DOING WITH XEROX. IT'S A GREAT PLACE TO KIND OF SHOW PEOPLE THE KIND OF WORK WE DO FOR CLIENTS LIKE THE METS ORGANIZATION.

BARTIROMO: SOMEONE RECENTLY SAID TO ME THERE'S NOTHING GROWING AS FAST AS DATA IN THE WORLD. YOU'VE GOT TO MANAGE THAT DATA. YOU'VE GOT TO PROTECT THAT DATA IN TERMS OF SECURITY. WAS THE $6.4 BILLION PURCHASE OF THE AFFILIATED COMPUTER SERVICES, ACS, WAS THAT PART OF THE BACKGROUND FOR THAT ACQUISITION?

BURNS: IT WAS, NOT IN THE WORDS THAT THEY WERE SAYING THOUGH, CAUSE YOUR RIGHT, THERE'S NOTHING GROWING FASTER THAN DATA IT'S INTERESTING, THOUGH, AS THAT DATA GROWS, THE CORRECTNESS AND USEFULNESS DECLINES EXPONENTIALLY. SO OUR APPROACH ABOUT DATA IS TO TRY TO MAKE THIS OVERFLOW OF STUFF. I MEAN, EVERYWHERE, EVERY SOURCE MORE USEFUL FOR BUSINESSES AROUND THE WORLD. AND OUR SPECIALTY IS IN THAT AREA, ALL THE DATA, ALL THE INFORMATION THAT'S OUT THERE MAKING IT USEFUL FOR YOU, MAKING IT APPLICABLE FOR YOU. MAKING IT AVAILABLE TO YOU.

BARTIROMO: HOW DO YOU PLAN TO COMBAT THE EXTRA SPENDING THAT WILL LIKELY BE REQUIRED TO MAINTAIN A DIRECT SALES FORCE TO EDUCATE THE CUSTOMER BASE AND TO ENSURE THAT EVERYBODY IS ON THE SAME PAGE IN TERMS OF PRODUCT OFFERINGS, NEW PRODUCT OFFERINGS.

BURNS: RIGHT, RIGHT. WELL WE INVEST A LOT AND TEND TO INVEST A LOT MORE IN EDUCATING OUR SALES FORCE AND IN SELLING, THE SELLING PART AS WE FOCUS ON GETTING INEFFICIENCIES OUT OF OTHER PLACES. WE'RE DRIVING OUR BUSINESSES TO GROW BY INVESTING IN INNOVATION, BY INVESTING IN SELLING. AND WE'RE FUNDING THAT BY BECOMING SIGNIFICANTLY MORE EFFICIENT IN OUR OPERATIONS. THAT'S THE WAY YOU HAVE TO RUN A BUSINESS.

BARTIROMO: WHAT CAN YOU TELL US ABOUT BUSINESSES SPENDING MONEY ON YOUR SERVICES AND SERVICES IN THE INDUSTRY?

BURNS: THIS IS THE SECOND QUARTER DATA, THE MOST RECENT DATA THAT WE HAVE. WHAT WE SAW IN SECOND QUARTER THAT'S PROMISING WE SAW ACTIVITY, SO THE NUMBER OF DEVICES THAT WE SOLD OR THAT WE'RE SELLING GROW SIGNIFICANTLY, ESPECIALLY FOR SMALLER SIZE DEVICES AND FOR COLOR. SO SMALLER SIZE DEVICES AND HIGH-END COLOR REALLY HAD A STEP OUT QUARTER IN QUARTER TWO. THE OTHER THING THAT WE SAW THAT WAS COMFORTING WAS FOR THE FIRST TIME IN A WHILE WE SAW USAGE ON OUR MACHINES THAT ARE ALREADY OUT THERE.

BARTIROMO: WHAT ARE THE MORE IMPORTANT AREAS FOR XEROX IN THE WORLD IN THE COMING THREE YEARS GIVEN THE ANTICIPATION THAT WE'RE GOING TO SEE A FRAGILE RECOVERY IN THE UNITED STATES AND WE MAY VERY WELL BUMP ALONG THE BOTTOM FOR A LITTLE WHILE.

BURNS: THE ONE PLACE WE ARE GOING TO FOCUS OUR EXPANSSION ON OUR OPPORTUNITIES FOR GROWTH IS IN EXPANDING BPO ACS's BUSINESS LINES OUTSIDE THE UNITED STATES AND IN DEVELOPING ECONOMIES AND IN THE WESTERN EUROPEAN ECONOMIES AND ANY PLACE THAT THEY ARE NOT. THIS IS LOW HANGING FRUIT. IT'S NOT EASY TO DO, BUT YOU DON'T HAVE TO KIND OF BREAK DOWN A HUGE BARRIER. IT'S A SET OF SERVICES THAT JUST HAVEN'T YET BEEN PRODUCED TO THOSE ECONOMIES.

BARTIROMO: THIS IS AN OBVIOUS OPPORTUNITY?

BURNS: VERY OBVIOUS OPPORTUNITY. THE SECOND ONE, IF YOU LOOK AT PAGES IN THE WORLD, THEY'RE STILL IN BLACK AND WHITE. 22% OF THE PAGES ARE IN COLOR.78% ARE IN BLACK AND WHITE. THE WORLD THE LAST TIME I LOOKED AROUND IS IN COLOR. THE ONLY REASONS WHY PEOPLE ARE DOING THINGS IN BLACK AND WHITE WAS BECAUSE IT WAS MORE COST EFFECTIVE TO DO IT. IT WAS EASIER TO DO IT, WE HADN'T PRESENTED THEM WITH A WAY TO SOLVE THE COLORIZATION PROBLEM AT A GOOD COST. WHAT WE'RE SPENDING OUR INNOVATION DOLLARS AND A LOT OF SELLING DOLLARS IN IS EDUCATING PEOPLE THAT WE DO HAVE SOLUTIONS THAT ALLOW THEM TO COLORIZE THEIR WORLD, THEIR PRINTED WORLD AT VERY, VERY GOOD COST.

BARTIROMO: WHAT KIND OF REVENUE GROWTH SHOULD SHAREHOLDERS XEROX EXPECT FROM XEROX IN THE COMING YEARS?

BURNS: COMBINED COMPANY, XEROX AND ACS, 6% TO 8%. WE'RE GROWING TO THAT POINT. IN THE SHORT TERM, 3% TO 5% HEADING UP TO 6-8. SERVICES LINES ARE GROWING FASTER THAN OUR TECHNOLOGY LINE. TECHNOLOGY LINE GROWING 3%-PLUS. OUR SERVICES LINE, 6% TO 10% RANGE. AND MIXED TOGETHER, 6% TO 8%.

BARTIROMO: SERVICES CAN REALLY OFFSET ANY SORT OF STAGNATION IN ONE ARE, RIGHT?

BURNS: REVENUE GROWTH IN TECH COMPANIES, ESPECIALLY RELATIVELY MATURE TECH COMPANIES LIKE XEROX IS DEFINITELY MORE DAMPENED THAN REVENUE GROWTH IN SERVICES COMPANIES. SERVICE COMPANIES, ESPECIALLY BPO LINES IS NOT A FULLY DEVELOPED MARKET AT ALL. MOST BPO IS DONE INTERNALLY BY THE CLIENT SO THERE IS A LOT OF MARKET OUT THERE. PEOPLE SAY HOW ABOUT COMPETITION, THE BIGGEST COMPETITION IS YOURSELF, DOING IT YOURSELF. SO THINK ABOUT THE WORLD THEREFORE THAT YOU CAN GO AFTER. THE REASON WHY CLIENTS ARE THINKING ABOUT IT AS A WAY TO, AS A VALUABLE THING TO DO IS BECAUSE THEY WOULD LIKE TO SPEND MORE TIME ON THEIR REAL BUSINESS

BARTIROMO: SO YOU THINK OF YOURSELF AS A TECHNOLOGY COMPANY?

BURNS: WE ARE ABSOLUTELY A TECHNOLOGY COMPANY. WE DELIVER OUR TECHNOLOGY IN MANY DIFFERENT WAYS AND MANY DIFFERENT LINES FROM COLOR TO BLACK AND WHITE PRINTED TO DOCUMENT OUTSOURCING SERVICES TO TRANSPORTATION SERVICES, ET CETERA, ET CETERA.BUT WE AT THE CORE, WE CREATE WAYS FOR PEOPLE TO THINK ABOUT THINGS DIFFERENTLY. MORE IMPACT FULLY FOR THEM, MORE EFFICIENT FOR THEM, MORE EFFECTIVE FOR THEM. WE USE PROCESS BRAINS AND RESEARCH BRAINS AND ENGINEERING BRAINS TO ALLOW OUR CUSTOMERS TO HAVE ACCESS TO THE NEXT STEP. AND SO WE'RE A HUGE TECH COMPANY.

BARTIROMO: BARRON'S MAGAZINE FEATURED YOU ON THE COVER LAST WEEK AND YOU SAID IN THE INTERVIEW THERE'S A CHANCE YOU'LL CONSIDER RAISING YOUR DIVIDEND AND POSSIBLY A SHARE BUY BACK. WHEN MIGHT SHAREHOLDERS EXPECT THOSE MOVES?

BURNS: SO ONE OF THE THINGS WE'RE FOCUSED ON IN THE NEAR TERM IS RUNNING THE BUSINESS MODEL WELL SO WE CAN GROW REVENUE GET PROFITS, GROW EARNINGS, GREAT PROFITS, GET CASH.WHEN WE GET CASH, THE NUMBER ONE REQUIREMENT, THE NUMBER ONE THING THAT I WILL DO IS MAKE SURE THAT WE ACTUALLY PAY DOWN OUR DEBT, GET OUR DEBT MORE IN LINE WITH THE DEBT THAT WE HAD BEFORE WE ACQUIRED ACS. AND SO WE HAVE TO PAY DOWN THE ACS PORTION OF THE DEBT. WE EXPECT TO DO THAT BY THE MIDDLE OF 2011 AND THEN WE'LL GO INTO THE NORMAL SHAREHOLDER RETURN TYPE OF ACTIVITIES. WHICH WE ARE IN SOME OF THEM KNOW SO WE'LL CONTINUE TO PAY OUR DIVIDEND AND LOOK AT INCREASING IT. WE WILL START TO LOOK AT BUYING BACK SHARES BECAUSE WE ACTUALLY ISSUED A LOT OF SHARES TO BUY ACS. AND THEN WE'LL CONTINUE TO LOOK AT INVESTING, BUYING TO GROW THE COMPANY. WE DO THAT NOW AND WE'LL JUST CONTINUE THAT ACQUISITION ROLE AS WE GO FORWARD.

BARTIROMO: BARRON'S SAID THE STOCK IS A DOUBLE. CAN YOU DO IT?

BURNS: UM, I HOPE TO HECK I CAN. THE BARRON'S ARTICLE WAS A POSITIVE ARTICLE, NOT BECAUSE IT WAS ABOUT ME, I MEAN I WAS PLEASED WITH THAT BUT BECAUSE XEROX IS A DIFFERENT COMPANY TODAY. NOT A DIFFERENT COMPANY OH, MY GOD, WE WERE A HORRIBLE COMPANY BEFORE.WE WERE A DAMN GOOD COMPANY BEFORE. AND WHAT BARRON'S DID AND ALL THE WORK WE'RE DOING NOW AND THE NEW BRAND CAMPAIGN THAT WE ARE DOING IT POSITIONED US AS WE REALLY ARE. I MEAN, WE HAVE BEEN A SERVICES COMPANY FOR A WHILE. PEOPLE KNEW US SO MUCH AS A COPIER COMPANY OR A PRINTER COMPANY OR PRINTING COMPANY, THAT THEY DIDN'T FOCUS ON WHAT WE DO FOR THE METS. WHAT THE HECK ARE WE HERE FOR? NOT BECAUSE WE SELL THEM A LOT OF PRINTING EQUIPMENT.THAT'S A LITTLE PART OF IT. WE HELP THEM MANAGE THEIR INFRASTRUCTURE SIGNIFICANTLY MORE EFFECTIVELY. BARRON'S, WELL RESPECTED, WELL READ, BEING ON YOUR SHOW, WELL RESPECTED, WELL VIEWED, ALLOWS ME AS A LEADER TO SAY, PAY ATTENTION TO WHAT WE ARE TODAY.PAY ATTENTION TO THE NOT ONLY BECAUSE IT'S COOL AND NEAT AND I'M PROUD OF IT. BUT BECAUSE WE ARE LITERALLY HELPING CLIENTS AROUND THE WORLD. THE BEST CLIENTS, PNG, BICCARDI, THE METS, TARGET, WE'RE HELPING THESE CLIENTS CHANGE THEIR BUSINESS AND BE MORE EFFECTIVE AND SERVE THEIR CLIENTS BETTER. IF YOU DIDN'T KNOW THAT, IT MAKE ME SAD BUT IT'S ALSO IS NOT A GOOD THING FOR YOUR BUSINESS. YOU SHOULD KNOW ABOUT WHAT WE DO BECAUSE YOU COULD ACTUALLY USE IT.

BARTIROMO: XEROX STOCK TODAY CLOSED AT $10.27 A SHARE. DOWN ABOUT A PERCENT. MY THANKS TO URSULA BURNS.

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