Unisys CEO Departure Highlights Bleak Outlook
Dylan Nertavich • 15 Comments
Dylan Nertavich • 15 Comments
Unisys: Acquisition Or Activism Likely To Appear And Re-Rate The Shares
Alpha Gen Capital • 13 Comments
Alpha Gen Capital • 13 Comments
Is Unisys A Valuable Dinosaur?
Thu, Apr. 21, 4:36 PM
Wed, Apr. 20, 5:35 PM
Fri, Jan. 29, 11:32 AM
- Unisys (UIS +23.1%) has soared after beating Q4 estimates in spite of a revenue miss, and using its earnings call (transcript) to guide for 2016 adjusted free cash flow of $160M-$200M, a marked improvement from 2015's -$6M. 2016 revenue guidance of $2.775B-$2.875B is below a 3-analyst $2.98B consensus and reported 2015 revenue of $3.015B (-10% Y/Y).
- Cost cuts are lifting EPS/cash flow: Unisys says it exited 2015 with $100M in annualized savings related to cost reduction efforts, and predicts it will double its run rate by the end of 2016. Non-GAAP op. margin is expected to rise to 7%-8% in 2016 from 2015's 5.8% and 2014's 6.8%.
Segment performance: Technology (hardware/software) revenue remains pressured: It fell 35% Y/Y in Q4 to $140.8M. Services revenue fell 6% to $649.1M. Technology op. margin nonetheless rose 290 bps Y/Y to 24.8%; services op. margin fell 110 bps to 2.3% (forex is blamed).
Services bookings fell 55% Y/Y to $550M, and the services backlog 10% to $4.31B. 42% of services backlog is expected to convert into revenue in 2016.
- Adjusted free cash flow nearly doubled Y/Y in Q4 to $117M. Unisys ended Q4 with $365.2M in cash and $311.3M in debt.
- Unisys' Q4 results, earnings release
Thu, Jan. 28, 4:35 PM
- Unisys (NYSE:UIS): Q4 EPS of $1.58 beats by $0.52.
- Revenue of $790M (-12.8% Y/Y) misses by $11.57M.
Wed, Jan. 27, 5:35 PM| Wed, Jan. 27, 5:35 PM | 9 Comments
Oct. 22, 2015, 1:40 PM
- Thanks in part to recent job cuts, Unisys' (NYSE:UIS) op. margin (excluding restructuring and pension expenses) nearly doubled Y/Y to 7.2%. That allowed EPS to beat estimates in spite of a revenue miss.
- Also: Q3 services bookings totaled $778M, +34% Q/Q and +42% Y/Y thanks to strong renewals. The services backlog rose 2% Y/Y to $4.4B (10% exc. forex).
- Services revenue fell 8% Y/Y to $656M, and technology (hardware/software) revenue 51% to $83.2M; the latter is blamed on software license renewal timing. A strong dollar had an 8% impact on total revenue growth (-16% vs. -8%). Job cuts and forex led SG&A spend to drop 16% Y/Y to $115.4M, and R&D spend to drop 18% to $16.6M.
- Q3 results, PR
Oct. 21, 2015, 4:42 PM
- Unisys (NYSE:UIS): Q3 EPS of $0.67 beats by $0.15.
- Revenue of $739M (-16.3% Y/Y) misses by $30.37M.
Oct. 20, 2015, 5:35 PM| Oct. 20, 2015, 5:35 PM | 7 Comments
Jul. 24, 2015, 12:09 PM
- Unisys (NYSE:UIS) has plunged to new 52-week lows post-earnings.
- While lower spending provided a lift to adjusted EPS, gross margin fell 420 bps Y/Y to 16.3%. 270 bps is attributed to restructuring charges - job cuts were announced 3 months ago - and higher pension expenses. 90 bps is attributed to forex, and 60 bps to lower services and technology (product) margins. Services GM fell 120 bps to 15.7%; tech GM fell 590 bps to 43.9%.
- Also: Services backlog fell $100M Q/Q and $300M Y/Y to $4.4B. Unisys states lower North American orders for cloud and infrastructure services led orders to drop Y/Y.
- Key numbers: Services revenue -6% Y/Y to $661.5M. Tech revenue flat at $103M. U.S./Canada revenue +23%; other markets -24% (-10% exc. forex). Excluding charges, SG&A/R&D spend fell 10%. Unisys ended Q2 with $365M in cash and $256M in debt.
- Q2 results, PR
Jul. 23, 2015, 4:37 PM
- Unisys (NYSE:UIS): Q2 EPS of $0.33 may not be comparable to consensus of -$0.38.
- Revenue of $765M (-5.1% Y/Y) beats by $15.83M.
Apr. 24, 2015, 2:46 PM
- Unisys (NYSE:UIS) is down sharply after missing Q1 revenue estimates (while beating on EPS) thanks to a 16% Y/Y drop in non-U.S./Canada revenue. A strong dollar exacted a heavy toll: Non-U.S./Canada sales were down only 5% in constant currency.
- Along with its results, the mainframe/IT services provider (4 months removed from getting a new CEO) has announced it's launching a restructuring expected to cut headcount by 8%, and yield $200M/year in savings by the end of 2016. $300M in restructuring charges are expected over the next several quarters.
- The services backlog was $4.5B at the end Q1, -$300M Q/Q (seasonality) but flat Y/Y. Services revenue fell 6% Y/Y to $639M, while Technology (mainframe/server) revenue rose 3% to $82M. U.S. federal revenue +13%,, other public sector -10%, financial industry -10%, commercial industry -7%.
- Gross margin fell 130 bps Y/Y to 16.2%, and operating expenses fell 4% to $147M. $128.8M was spent on SG&A, and $18.2M on R&D.
- Q1 results, PR
Apr. 23, 2015, 4:37 PM
- Unisys (NYSE:UIS): Q1 EPS of -$0.32 beats by $0.60.
- Revenue of $721.2M (-5.3% Y/Y) misses by $14.85M.
Jan. 30, 2015, 11:18 AM
- When asked on Unisys' (NYSE:UIS) Q4 CC (transcript) if the company is aiming for "somewhere around flat" 2015 growth for its Technology (hardware) segment, CFO Janet Haugen responded with cautious remarks. "We've got a 6 percentage point negative impact on currency in the quarter ... we've got two headwinds in that technology revenues, one is the currency impact on year-over-year basis and second a lower renewal opportunity than we would have had previously."
- Unisys' 2015 total revenue growth consensus is at 3%. In Q4, the company's Technology revenue rose 1% Y/Y to $184.9M, and its services revenue (driven in part by past hardware sales) fell 11% to $720.9M.
- Services margins also received attention from analysts: Unisys' services gross margin fell to 17.5% in Q4 from 21.9% a year ago, and services op. margin to 3.9% from 9.8%. When asked if Unisys can expand services margins in the event of declining revenue, new CEO Peter Altabef said he doesn't "want to have to face that choice."
- Services backlog was flat Y/Y in Q4 at $4.8B. Unisys expects $635M and $2B of its services backlog to respectively convert into Q1 and 2015 revenue. Total revenue consensus estimates for Q1 and 2015 are respectively at $767.1M and $3.46B.
- Q4 results, PR
Jan. 29, 2015, 4:32 PM
- Unisys (NYSE:UIS): Q4 EPS of $1.60 beats by $0.33.
- Revenue of $905.8M (-9.0% Y/Y) beats by $15.9M.
- Shares -0.27%.
Jan. 28, 2015, 5:35 PM
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Unisys Corp. is a worldwide information technology company, which provides a portfolio of information technology services, software, and technology that solves mission-critical problems for clients. It specializes in helping clients to secure their operations, increase the efficiency and... More
Industry: Information Technology Services
Country: United States
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