Fri, Apr. 24, 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
Thu, Apr. 23, 4:37 PM
Fri, Jan. 30, 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
Thu, Jan. 29, 4:32 PM
Wed, Jan. 28, 5:35 PM
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Oct. 22, 2014, 1:52 PM
- With shares having gone into earnings just a little above a 52-week low of $18.72, Unisys' (UIS +24.3%) big Q3 beat is being very well-received.
- Strong demand for Unisys' ClearPath mainframes (aided by a migration to Intel Xeon CPUs and improved Windows/Linux support) fueled a 66% increase in Technology segment revenue (drives future services revenue) to $119.5M. Services segment revenue rose 6% to $763M.
- Services gross margin fell 160 bps Y/Y to 19.5%, but Technology gross margin rose 2820 bps to 61.5%. Opex grew 7% to $158.3M.
- Unisys is only 16 days removed from plunging on news chairman/CEO J. Edward Coleman will be leaving the company.
- Q3 results, PR
Oct. 21, 2014, 4:35 PM
Oct. 20, 2014, 5:35 PM
Jul. 23, 2014, 12:49 PM
- "Our second-quarter 2014 results were impacted by lower sales of our flagship ClearPath family of enterprise software and servers, which can vary significantly from quarter to quarter based on the timing of client transactions," says Unisys (UIS -17.8%) CEO Ed Coleman.
- The weakness led Unisys' technology revenue to fall 21% Y/Y to $93.5M. Services revenue fell 4% to $712.9M.
- The company promises technology sales will improve in 2H14, aided by new Intel-based ClearPath mainframes launched in June. Nonetheless, Coleman guided on the CC (transcript) for 2014 technology revenue of $470M-$500M vs. a prior outlook of $500M.
- He added Unisys continues to "make adjustments to our portfolio, our go-to-market approach and our cost structure" for its services ops. An industry shift away from multi-year systems integration projects to short-term deals is impacting sales. Full-year services revenue is expected to fall by a low-single digit percentage.
- The company's Edge cloud-based IT service management platform is a bright spot: Total clients have passed 160, and Chinese demand has picked up thanks to a partnership with 21Vianet.
- Q2 results, PR
Jul. 22, 2014, 4:44 PM
Jul. 21, 2014, 5:35 PM
Apr. 22, 2014, 4:37 PM| Comment!
Apr. 22, 2014, 12:10 AM
Apr. 21, 2014, 5:35 PM
Jan. 31, 2014, 5:22 PM
- Unisys (UIS +10%) shot higher and temporarily made new 52-week highs after trouncing Q4 estimates on the back of strong European (+7% Y/Y) and Asia-Pac (+20%) sales.
- Unisys' Asian performance contrasts sharply with that of many tech firms (including rival IBM) struggling to deal with emerging markets weakness and NSA-related troubles. Sales fell 4% in North America, and 15% in Latin America.
- Also boosting Unisys' EPS: gross margin rose 250 bps Y/Y to 31.7%, and opex fell 7% even as revenue rose 2%. At the same time, the company did mention on its CC (transcript) it expects opex to grow 1-2% in 2014 due to higher sales/marketing spend.
- Services revenue (82% of total) rose 1% Y/Y. Technology revenue (inc. mainframes/servers) rose 5%.
- In tandem with its Q4 report, Unisys has announced the hiring of former Dell sales/service management exec Jeff Renzi to be the company's new sales chief.
Jan. 30, 2014, 4:32 PM| Comment!
UIS vs. ETF Alternatives
Unisys Corp is an information technology company. It offers outsourcing & managed services, systems integration & consulting services, high-end server technology, cybersecurity & cloud management software, & maintenance & infrastructure support services.
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