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ARC revenue dropped 4.6 percent last year, according to the company's fourth quarter and full year financials, which they reported on February 25.
"While 2019 challenged us to reconfigure our product and service portfolios to adapt to a transforming market, our cash flows from operations remained a steady source of strength and stability," said Suri Suriyakumar, ARC's chairman and CEO, in a press release. "While sales declined moderately here in the U.S., our Chinese equipment and supplies division accounted for more than a third of the decline in overall sales for the year."
Even though the company earned less money on the top line, cost-cutting allowed the firm to meet its targets, Suriyakumar says.
"Despite the drop in sales, we met our adjusted EBITDA and EPS forecast, and exceeded our target for cash flow from operations," said Mr. Suriyakumar. "We kept our gross margins well above 30 percent, reduced annualized costs by $10 million in the second half of the year, and opened up new markets in color, archiving and MPS."