In the Mealy machine, the output symbol at a given time is a function of the present input as well as the present state of the machine.
Therefore the transition graph of the Mealy machine cannot be further simplified.
Mealy machine is defined as a 6 tuple (Q, Σ, ∆, δ, λ, q0)
Q is a finite set of states.
Σ is a set of input-symbols/alphabet.
∆ is the output alphabet.
δ is the transition function which maps Σ × Q onto Q.
λ is the output function mapping Σ × Q to ∆.
q0 is the initial state.
Mealy machine Transition table