We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Name | Symbol | Market | Type |
|---|---|---|---|
| Co.st.gob. 29 | LSE:15PT | London | Medium Term Loan |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
RNS Number:1196C
Unisys Corp
16 April 2001
Media Contact: Jay Grossman, Unisys, (215) 986-6948
jay.grossman@unisys.com
Investor Contact: Jim Kerr, Unisys, (215) 986-5795
jim.kerr@unisys.com
Unisys First-Quarter 2001 Earnings Meet Expectations
BLUE BELL, PA, APRIL 16, 2001 -- Unisys Corporation (NYSE: UIS) today reported
first-quarter 2001 net income of $69.3 million, or 22 cents per diluted share,
compared to first-quarter 2000 pro forma net income of $107.4 million, or 34
cents per diluted share. First-quarter 2001 revenue of $1.62 billion increased
6% from pro forma first-quarter 2000 revenue of $1.53 billion. Pro forma
first-quarter 2000 results reflect the company's previously announced strategic
action to exit low-margin commodity hardware business. Unisys attributed about
4-5 percentage points of its revenue growth in the first quarter of 2001 to
residual commodity hardware sales during the wind-down process. On an
as-reported basis including commodity hardware business, the company's
first-quarter 2000 net income was $106.5 million, or 34 cents per diluted share,
on revenue of $1.67 billion. Foreign currency translation had a five
percentage-point negative impact on the company's revenue in the first quarter
of 2001.
Unisys also has completed its review of strategic alternatives for its Federal
business unit. Based on weak market conditions, the company said it had decided
not to divest this unit. Instead, the company is taking aggressive actions to
position the business for profitable growth by de-emphasizing the sale of
commodity hardware, streamlining infrastructure costs and expenses, and better
integrating the unit within the overall Unisys business structure.
As a result of this decision, Unisys revised its pro forma results for the year
2000 to include the continuing Federal business and exclude $793 million of
commodity hardware business. The new 2000 pro forma financial information is
available on the Unisys Investor Web site at www.unisys.com/investor.
Year-over-year comparisons in this news release are based on the revised 2000
pro forma information.
Comments from Chairman and CEO Larry Weinbach
"Economic uncertainties made this a challenging quarter," said Unisys Chairman
and CEO Lawrence A. Weinbach. "Customers continue to be cautious about
undertaking new large-scale capital projects. Still, we were able to manage our
business to achieve our earnings target for the quarter. Tight cost control
contributed to an 11% decline in SG&A expenses over the year-ago period.
"We are feeling the impact of the economic slowdown most heavily in our systems
integration and enterprise server businesses. As customers look for ways to
control costs and trim budgets, they are reducing their spending on leading-edge
e-business solutions that require systems integration and consulting expertise.
In technology, we are seeing weaker sales of enterprise servers across our
product lines as some customers defer expenditures on new equipment until
economic conditions improve. Weakness in these areas impacted our margins in the
quarter due to underutilization of services delivery personnel and lower
shipments of higher-margin ClearPath systems. However, we remain optimistic
about the longer-term growth potential of our portfolio of e-business solutions
and enterprise servers as economic conditions recover.
"Several of our businesses are showing resilience in this economic environment,"
Weinbach said. "Outsourcing and network services both delivered strong
double-digit revenue growth in the quarter. These businesses offer clients a
clear value proposition not just for reducing costs and improving efficiency,
but also for gaining access to leading-edge technology and talent without a
large upfront capital investment. After signing some of the largest outsourcing
contracts in Unisys history late last year, we continued to close significant
long-term services contracts in the first quarter. Driven by order gains in
outsourcing for business process management and managed network services, we
achieved double-digit gains in orders in the quarter."
Weinbach said major long-term services contracts signed in the first quarter
included:
* a five-year engagement with Merrill Lynch worth approximately $80 million to
provide managed network services and support for some 65,000 Merrill Lynch
professionals around the world;
* seven-year contracts estimated at a total of $80 million to handle the
payment processing operations of Australia's Westpac Bank and Australia Post;
* a five-year, approximately $60 million contract from California State
University, the largest four-year university system in the U.S., to handle
server hosting and PeopleSoft software support;
* a six-year agreement worth up to $45 million with Northwest Airlines to
manage selected information technology operations for the world's fourth-
largest airline;
* an approximately $25 million, multi-year contract to partner with SAP to
provide an enterprise resource planning and campus management system to the
Pennsylvania State System of Higher Education.
In its technology business, Unisys said that during the first quarter it
continued to make progress in building OEM sales channels for its new line of
servers based on the Unisys Cellular Multi-Processing (CMP) architecture. By
using standard Intel microprocessors and Microsoft Windows 2000 DataCenter
software, Unisys CMP-based servers offer dramatic price-performance benefits
over proprietary Unix-based server offerings currently on the market. During the
quarter Unisys finalized agreements with Dell and Hitachi to resell CMP-based
servers. They join Compaq and ICL as CMP partners. Hewlett-Packard has decided
to end its program to market CMP-based servers.
"While our first-quarter ES7000/CMP server sales were impacted by the current
economic uncertainties, the technology is receiving strong endorsements from
leading industry analysts and increasing marketing support from our partners
such as Microsoft and Intel," Weinbach said. "Initial benchmarking results
released during the quarter show that high-end Unisys CMP servers using Intel
processors and Microsoft Windows DataCenter software are setting new standards
for price/performance compared to Unix-based systems. As we continue to
demonstrate the unique advantages of this new technology, we look for sales of
our CMP-based servers to grow over the course of 2001. Of course, economic
conditions could have an impact."
Overall Company Highlights
Unisys reported that U.S. revenue showed good gains in the first quarter
compared to the year-ago period. Revenue in international markets was flat in
the quarter as gains in Japan and Europe were offset by declines in Pacific/Asia
and Brazil. On a constant currency basis, international revenue showed very good
gains over the prior-year quarter.
Total worldwide orders posted double-digit gains in the quarter over year-ago
levels, driven by substantial gains in long-term outsourcing contracts. Services
orders showed strong double-digit gains, led by outsourcing, while technology
orders declined. On a geographic basis, U.S. orders posted strong gains while
international orders posted modest gains. On a constant currency basis,
international orders showed strong double-digit gains, led by Pacific/Asia and
Europe.
Unisys said its margins in the quarter were impacted by lower sales of ClearPath
servers, underutilization of services personnel, primarily in systems
integration, and the startup of large outsourcing contracts. The company
reported an overall first-quarter 2001 gross profit margin of 26.3%, down from
34.8% in the year-ago period, and an operating profit margin of 6.5%, down from
11.7% a year ago. Unisys cited strong control over expenses in the quarter.
Selling, general, and administrative expenses declined to 15.1% of revenue
compared to 17.9% of revenue in the year-ago quarter.
Business Segment Highlights
Customer revenue in the company's services business increased 13% in the first
quarter over the year-ago period. Strong revenue gains in outsourcing and
network services more than offset continued double-digit revenue declines in
systems integration and proprietary maintenance. Reflecting the underutilization
of services personnel and the startup of large outsourcing contracts, gross
profit margins in the services business declined 4 percentage points from
year-ago levels to 18.2% while operating margins increased slightly from
year-ago levels to 2.3%.
Customer revenue in the company's technology business declined 9% from
prior-year levels, driven by lower shipments of ClearPath servers. Reflecting
the lower mix of higher-margin ClearPath server sales in the quarter, gross
margins in the technology business decreased 8 percentage points over the
year-ago period to 43.0% while operating margins decreased 8 percentage points
from the year-ago period to 17.1%.
Cash Flow and Balance Sheet Highlights
Unisys generated $24 million of cash flow from operations in the first quarter
compared to operational cash usage of $43 million in the year-ago period. The
cash flow improvement over the prior year primarily reflected working capital
management and a higher level of advance payments under long-term contracts. The
company ended the first quarter with $326 million of cash on hand.
During the first quarter, Unisys finalized a new three-year unsecured credit
agreement replacing its $400 million three-year facility that was to expire in
June 2001. The new facility is supported by 14 banks and provides an increased
commitment to $450 million.
Business Outlook
"The economic environment remains uncertain," Weinbach said. "This uncertainty
has impacted the IT industry more than most, and like other companies in our
industry, we are feeling the impact. We are seeing particular pressure in our
high-margin ClearPath server line, which is severely impacting our margins over
the near term. Due to this, we are taking a cautious view of the second quarter
and look for our earnings per share to be approximately half of second-quarter
2000 pro forma operating earnings per share, with modest revenue growth.
However, as our new long-term outsourcing and managed network services contracts
begin to ramp up, as we begin shipments of new high-end ClearPath servers, and
as shipments build of our CMP-based servers, we look for our earnings to
increase substantially in the second half over first-half 2001 levels. We will
continue to aggressively control expenses in this environment and believe that
with our enhanced portfolio of value-added services, solutions, and enterprise
technology, we will be well positioned to benefit as economic conditions
recover."
About Unisys
Unisys is an e-business solutions company whose 37,000 employees help customers
in 100 countries apply information technology to seize opportunities and
overcome challenges of the Internet economy. Unisys people integrate and deliver
the solutions, services, platforms and network infrastructure required by
business and government to transform their organizations for success in this new
era. The company offers a rich portfolio of Unisys e-@ction Solutions for
e-business based on its expertise in vertical industry solutions, network
services, outsourcing, systems integration and multivendor support, coupled with
enterprise-class server and related technologies. The primary vertical markets
Unisys serves worldwide include financial services, transportation,
communications, publishing and commercial sectors, as well as the public sector,
including federal government customers. Unisys is headquartered in Blue Bell,
Pennsylvania, in the Greater Philadelphia area. For more information on the
company, access the Unisys home page on the World Wide Web at www.unisys.com.
Investor information can be found at www.unisys.com/investor.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. All forward-looking statements rely on assumptions and are
subject to various risks and uncertainties that could cause actual results to
differ materially from expectations. Statements in this release regarding
anticipated values of contracts are based upon assumptions regarding future
volumes of business, which are subject to change. The factors that could affect
the company's future financial results are discussed more fully in the company's
latest Form 10-K as filed with the Securities and Exchange Commission.
http://www.unisys.com/news/releases/2001/apr/04167086.asp
Unisys is a registered trademark and e-@ction is a trademark of Unisys
Corporation. All other brands and products referenced herein are acknowledged to
be trademarks or registered trademarks of their respective holders.
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF INCOME - PROFORMA
(Millions, except per share data)
Three Months
Ended March 31
------------------
2001 2000
-------- --------
Revenue $1,623.8 $1,529.8
-------- --------
Costs and expenses
Cost of revenue 1,196.2 997.0
Selling, general and
administrative 245.3 274.4
Research and development 76.0 80.1
-------- --------
1,517.5 1,351.5
-------- --------
Operating income 106.3 178.3
Interest expense 15.9 20.5
Other income
(expense), net 13.0 6.2
-------- --------
Income before income taxes 103.4 164.0
Provision for income taxes 34.1 56.6
-------- --------
Net income $69.3 $107.4
======== ========
Diluted earnings per share $ .22 $ .34
======== ========
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per share data)
Three Months
Ended March 31
------------------
2001 2000
-------- --------
Revenue $1,623.8 $1,668.7
-------- --------
Costs and expenses
Cost of revenue 1,196.2 1,129.4
Selling, general and
administrative 245.3 281.5
Research and development 76.0 82.1
-------- --------
1,517.5 1,493.0
------- --------
Operating income 106.3 175.7
Interest expense 15.9 20.5
Other income
(expense), net 13.0 6.2
-------- --------
Income before income taxes 103.4 161.4
Provision for income taxes 34.1 54.9
-------- --------
Net income $69.3 $106.5
======== ========
Earnings per share
Basic $ .22 $ .34
======== ========
Diluted $ .22 $ .34
======== ========
Shares used in the per share
computations (thousands):
Basic 316,309 311,161
======== ========
Diluted 319,029 317,080
======== ========
UNISYS CORPORATION
SUPPLEMENTAL SUMMARY - PROFORMA
(Millions)
Elimi-
Total nations Services Technology
-------- -------- -------- ----------
Three Months Ended
March 31, 2001
------------------
Customer revenue $1,623.8 $1,175.7 $448.1
Intersegment ($82.1) 13.3 68.8
-------- -------- -------- --------
Total revenue $1,623.8 ($82.1) $1,189.0 $516.9
======== ======== ======== ========
Gross profit percent 26.3% 18.2% 43.0%
======== ======== ========
Operating income
percent 6.5% 2.3% 17.1%
======== ======== ========
Three Months Ended
March 31, 2000
------------------
Customer revenue $1,529.8 $1,036.3 $493.5
Intersegment ($116.0) 16.5 99.5
-------- -------- -------- --------
Total revenue $1,529.8 ($116.0) $1,052.8 $593.0
======== ======== ======== ========
Gross profit percent 34.8% 22.4% 51.1%
======== ======== ========
Operating income
percent 11.7% 2.1% 25.0%
======== ======== ========
UNISYS CORPORATION
SUPPLEMENTAL SUMMARY
(Millions)
Elimi-
Total nations Services Technology
-------- -------- -------- ----------
Three Months Ended
March 31, 2001
------------------
Customer revenue $1,623.8 $1,175.7 $448.1
Intersegment ($82.1) 13.3 68.8
-------- -------- -------- --------
Total revenue $1,623.8 ($82.1) $1,189.0 $516.9
======== ======== ======== ========
Gross profit percent 26.3% 18.2% 43.0%
======== ======== ========
Operating income
percent 6.5% 2.3% 17.1%
======== ======== ========
Three Months Ended
March 31, 2000
------------------
Customer revenue $1,668.7 $1,125.0 $543.7
Intersegment ($124.1) 11.0 113.1
-------- -------- -------- --------
Total revenue $1,668.7 ($124.1) $1,136.0 $656.8
======== ======== ======== ========
Gross profit percent 32.3% 21.1% 46.3%
======== ======== ========
Operating income
percent 10.5% 1.7% 21.8%
======== ======== ========
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEET
(Millions)
March 31, December 31,
2001 2000
---------- ----------
Assets
Current assets
Cash and cash equivalents $326.0 $378.0
Accounts and notes receivable, net 1,140.6 1,247.4
Inventories
Parts and finished equipment 242.5 249.4
Work in process and materials 197.7 176.1
Deferred income taxes 462.7 460.6
Other current assets 102.6 75.5
---------- ----------
Total 2,472.1 2,587.0
---------- ----------
Properties 1,576.1 1,584.1
Less accumulated depreciation 958.6 963.9
---------- ----------
Properties, net 617.5 620.2
---------- ----------
Investments at equity 225.8 225.8
Software, net of accumulated amortization 301.1 296.7
Prepaid pension cost 1,112.5 1,063.0
Deferred income taxes 583.6 583.6
Other assets 436.6 341.4
---------- ----------
Total $5,749.2 $5,717.7
========== ==========
Liabilities and stockholders' equity
Current liabilities
Notes payable $180.1 $209.5
Current maturities of long-term debt 15.7 16.8
Accounts payable 655.5 847.7
Other accrued liabilities 1,287.5 1,323.5
Income taxes payable 299.4 288.3
---------- ----------
Total 2,438.2 2,685.8
---------- ----------
Long-term debt 535.8 536.3
Other liabilities 498.7 309.5
Stockholders' equity
Common stock 3.2 3.2
Accumulated deficit (760.1) (829.4)
Other capital 3,671.0 3,656.0
Accumulated other comprehensive loss (637.6) (643.7)
---------- ----------
Stockholders' equity 2,276.5 2,186.1
---------- ----------
Total $5,749.2 $5,717.7
========== ==========
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Three Months Ended
March 31
-----------------
2001 2000
------- -------
Cash flows from operating activities
Net income $69.3 $106.5
Add (deduct) items to reconcile
net income to net cash provided by
(used for) operating activities:
Depreciation 35.1 37.8
Amortization:
Marketable software 30.4 29.2
Goodwill 1.9 2.4
(Increase) in deferred income
taxes, net (2.0) (2.9)
Decrease in receivables, net 20.9 72.7
(Increase) in inventories (14.8) (4.4)
(Decrease) in accounts payable
and other accrued liabilities (234.2) (246.1)
Increase in income taxes payable 11.1 6.4
Increase (decrease) in other liabilities 190.4 (.2)
(Increase) in other assets (89.3) (46.5)
Other 5.0 2.2
------- -------
Net cash provided by (used for)
operating activities 23.8 (42.9)
------- -------
Cash flows from investing activities
Proceeds from investments 420.0 135.7
Purchases of investments (415.3) (128.5)
Investment in marketable software (34.8) (34.3)
Capital additions of properties (31.6) (38.2)
Proceeds from sales of properties 7.8
Purchases of businesses (3.8)
------- -------
Net cash used for investing activities (61.7) (61.3)
------- -------
Cash flows from financing activities
Net (reduction in) proceeds from
short-term borrowings (29.5) 25.2
Proceeds from employee stock plans 9.2 17.0
Payments of long-term debt (.3) (2.9)
------- -------
Net cash (used for) provided by
financing activities (20.6) 39.3
------- -------
Effect of exchange rate changes on cash
and cash equivalents 6.5 (1.7)
------- -------
Decrease in cash and cash equivalents (52.0) (66.6)
Cash and cash equivalents, beginning of
period 378.0 464.0
------- -------
Cash and cash equivalents, end of period $326.0 $397.4
======= =======
1 Year Co.st.gob. 29 Chart |
1 Month Co.st.gob. 29 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
