New York, April 24 (Reuters): Xerox Corp, whose printers and services help companies manage office documents, on Monday said its quarterly profit fell, hurt by increased costs and a decline in equipment sales.

For the first quarter, net income before payment of preferred dividends was $200 million.

After those payments, Xerox’s profit was $186 million, or 20 cents a share, versus $196 million, or 20 cents a share.

Total revenue fell 2 per cent to $3.70 billion, down from $3.78 billion.

Analysts on average were expecting a profit of 21 cents a share on a revenue of $3.8 billion.

Equipment sale revenue declined 4 per cent.

While the Stamford, Connecticut, company has rebounded from a perception that it was struggling to overcome sustained losses and an accounting scandal, analysts have voiced concern that it is taking too long to turn new products and services into revenue growth.

Xerox has said over time, it expects digital and colour copier sales to yield higher profit margins.

Xerox stock closed on Friday at $14.80, and has languished for the past six months between $13.50 and $15.50.

The stock trades at 13 times estimated 2006 earnings, compared with a multiple of 22.92 for the Merrill Lynch Technology 100 index.