Printing company Xerox Corp's quarterly profit was halved, underscoring the slowdown in office equipment spending, although results beat Wall Street expectations on cost cuts.

Xerox, which boosted its 2009 outlook, said on Thursday third quarter net income was $123 million, or 14 cents a share, compared with $258 million, or 29 cents a share, one year earlier.

Analysts had expected a profit of 12 cents a share, according to according to Thomson Reuters I/B/E/S.

Total revenue declined 16 percent to $$3.68 billion.

The results were the first for Xerox since it offered last month to buy Affiliated Computer Services in a surprise deal aimed at moving Xerox into the business of managing back office systems and providing technology services.

(Reporting by Franklin Paul; Editing by Derek Caney)