Unisys 2Q Earnings Rise
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.