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Xerox will book a pre-tax charge of around $385 million in the third quarter, after the business services and copier company announced that it will not complete the implementation of new Medicaid payment systems for Montana and California.

The Norwalk, Connecticut, company said Tuesday that it will still process Medicaid claims in those states using existing systems to avoid interrupting any services.

Medicaid is a state- and federally funded program that provides health coverage for the poor and people over 65. Xerox is installing in several states new software platforms for processing Medicaid payments to providers like doctors and hospitals.

The company had experienced delays implementing its platform in both Montana and California. In Montana, a state legislative panel had given the company a vote of no confidence, and state officials and Xerox had negotiated a new deadline of May 2017 for completion of the project, more than two years past the original deadline of last February.

In July, the state received a report that predicted the project could take until 2023. A company spokeswoman said then that a Xerox review of that report suggested its methodology was flawed.

Xerox said Tuesday it remained committed to implementing its Health Enterprise platform for other states.

Montana officials released a statement from Ron Baldwin, the state's chief information officer.

"Montana is engaged in intense negotiations with Xerox to ensure that Montana taxpayers receive a state-of-the-art system, do not pay for any services not delivered, and are fairly compensated for any delays. We are still in negotiations and are not able to provide further information at this time," the statement said.

The company will report third-quarter results Oct. 26. It still expects adjusted earnings, which exclude the charge, to range between 22 and 24 cents per share for the quarter.

Analysts expect, on average, earnings of 23 cents per share, according to FactSet.

Xerox shares slipped 11 cents to $10.35 in morning trading Tuesday. Its shares are down 16 percent over the past year.