The market looks to be poised for a positive opening this morning, and so does Xerox Corp. (NYSE: XRX). The company's shares have been trading higher despite posting a first-quarter loss as its adjusted earnings matched analysts' estimates.

Xerox, the leading provider of digital printers and document management services, reported this morning that it swung to a loss of $244 million, or 27 cents per share, hurt by a litigation charge that overshadowed strong sales growth. Included in the office equipment maker's earnings figures were 54 cents related to that lawsuit settlement. Excluding that, Xerox would have posted quarterly earnings of 27 cents, in line with analysts' predictions.

Xerox also announced a 13% growth in its quarterly sales, which climbed up to $4.34 billion from $3.84 billion a year earlier. Analysts had expected revenue of $4.24 billion, according to Thomson Financial.

Shares of printer maker Lexmark (NYSE: LXK) have been taking a hit today after the company reported its third quarter earnings this morning. The stock has traded down 7.8 percent in early morning trading.

The company blamed the weak quarter on poor printer sales, which contributed to a 47% decline in quarterly profit for the quarter. Lexmark sold fewer printers in the quarter than it had anticipated, with laser printer shipments dropping 7 percent.

Net income was reported to be $45.2 million, or 48 cents for the quarter. This is well below the $85.6 million, or 85 cents that the company reported during the same period last year. Revenue was down 3 percent to $1.195 billion.

Lexmark also discussed a restructuring plan that it estimates will cost around $90 million between now and the end of 2008.

Looking ahead to the fourth quarter, the company expects to see revenue in the low-single-digit range, with earnings of 42 cents per share.

[Photo: cpchannel]

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer

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It's amazing how cheap printers are these days. I have a Hewlett-Packard (NYSE: HPQ) printer that prints in color and also scans and copies like a champ. And it cost less than $100 at Target. The only problem with cheap machines like this is that they start getting expensive when it's time to refill the ink. Of course, this is how companies like HP make their money: cheap hardware, expensive maintenance.

This strategy has invited competitors to take a different approach. Earlier this year, Eastman Kodak Co. (NYSE: EK) unveiled new printers that cost a bit more upfront but use much cheaper ink. Today, Xerox Corporation (NYSE: XRX) announced that it will sell a new printer that costs more than a laser printer but produces color copies for the same cost as black and white. If you've ever had to buy new color ink cartridges, you know that this is a big improvement.

The new machine uses Xerox's solid-ink technology that reduces per page costs by as much as 80%, according to today's New York Times. Kodak has found that people print more when they know that pages, especially color pages, are cheaper. Some analysts are skeptical that companies are willing to abandon HP for cheaper color copies, and that HP's 40% market share is safe. But a test program for the new Xerox machine at a real estate company that prints lots of color brochures found that annual copying and printing costs were reduced from $1 million to $200,000. I think a lot of companies will have trouble saying no to savings like that.

Tyco International Ltd. (NYSE:TYC) -- Tyco, which is being split into three companies, reported better-than-expected quarterly results. Net income rose 43 percent to $793 million, or 39 cents per share, compared with $556 million, or 27 cents. Revenue rose 8 percent to $10.3 billion. Profit from continuing operations was 45 cents, 1 cent better than Wall Street expectations, according to Reuters. Revenue was seen at $10.27 billion, the wire service said.

Ford Motor Co. (NYSE:F) -- Ford is bringing back the Taurus brand, according to Dow Jones Newswires. The struggling automaker will announce Wednesday at the Chicago auto show that its Ford Five Hundred mid-size sedan will be renamed after the once best-selling model, the wire service said. Chief Executive Alan Mulally has been a fan of the Taurus brand and there's been speculation in the press about its return, Dow Jones said. In other news, U.S. investors Nelson Peltz is reportedly the front runner to buy Ford's Aston Martin unit.

Wal-Mart Stores Inc. (NYSE:WMT) -- Wal-Mart became the latest company to offer downloads of movies and television shows. New movies will be available on the day of the DVD release for $12.88 to $19.88 with catalog titles starting at $7.50. TV shows will be $1.96 per episode. Kevin Swint, Wal-Mart's merchandise manager for digital media, called the new service "an unprecedented offering of video content, features and capabilities currently unmatched in the market." It has the support of major Hollywood studios.

Eastman Kodak Co. (NYSE:EK) -- Eastman Kodak Co. (NYSE:EK) is taking on Hewlett-Packard Co. (Nasdaq:HPQ) in the printer market. The film company today introduced a line of desktop printers and low-cost replacements inks.