Unisys 2Q Earnings Rise

 
 
By Paula Musich  |  Posted 2003-07-17 Print this article Print
 
 
 
 
 
 
 

Unisys hit its second-quarter growth target at 16 cents a share and a net income of $52.5 million, representing a 23 percent growth spurt over the same quarter in 2002.

Unisys Corp. hit its second-quarter growth target at 16 cents a share and a net income of $52.5 million, representing a 23 percent growth spurt over the same quarter in 2002. The Blue Bell, Pa., firm reported mixed results in generating $1.43 billion in revenue, with outsourcing and professional services generating double digit growth at 12 percent, while its technology business saw an 18 percent decline. Revenue overall increased five percent. "We continue to see a mixed environment for IT spending. Clients continue to be cautious, especially for high end technology purchases," said Larry Weinbach, chairman and CEO at Unisys. "The United States remained stable, and perhaps is picking up again. International markets remained weak," added Weinbach in the earnings call earlier today. US revenue increased 12 percent to $668 million, while international revenue declined nine percent on a constant currency basis to $757 million.
The double digit growth in services revenue at $1.16 billion applied to outsourcing as well as systems integration and consulting, Weinbach said. Unisys contract with the Transportation Security Administration was a "strong contributor" to its service revenue increases, although that is not expected to be the case later this year.
Although Unisys saw a slide in its ClearPath server revenue, it "continued to build momentum" in its Intel-based ES7000 server line, with revenue in that line growing by over 50 percent compared to the year earlier quarter, Weinbach added. Overall technology revenue was $261.6 million. Unisys during the quarter added several new product and service offerings to its portfolio, including the Business Blueprinting service, intended to develop digital roadmaps for clients to reduce system development time, increase flexibility and reduce costs. Unisys also added a new identity management suite for Microsoft Windows-based systems and the new ES7000/400 server line based on Intel Itanium processors. Unisys expects to generate earnings of between 15 to 20 cents a share in the third quarter and 77 to 82 cents a share for the full year.
 
 
 
 
 
 
 
 
 
 
 

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