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
Wed, Jul. 27, 3:00 PM
Wed, Jul. 27, 12:44 PM
Tue, Jul. 26, 5:36 PM
Wed, Jun. 22, 3:00 PM
Wed, Mar. 9, 12:47 PM
Wed, Mar. 9, 10:36 AM
- Unisys (UIS -22%) plans to sell $150M worth of convertible senior notes due 2021, and grant the initial purchaser a $22.5M overatllotment option. For reference, Unisys closed yesterday with a $554M market cap.
- Net proceeds will be used for general corporate purposes, which (per Unisys) could include cost-reduction efforts, pension obligations, investments in new services/technologies, and paying down existing debt.
- The mainframe/IT services provider had $365M in cash and $312M in debt at the end of 2015.
Fri, Jan. 29, 12:44 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
Wed, Jan. 13, 2:59 PM
- It's another ugly day for stocks, with the S&P down 2.1% and the Nasdaq 2.9%. Many high-beta tech names are naturally seeing even steeper declines.
- Major decliners include driver-assistance hardware/software provider Mobileye (MBLY -6.4%), travel reviews/bookings search site TripAdvisor (TRIP -5.8%), mobile payments provider/recent IPO Square (SQ -7%), online furniture leader Wayfair (W -6.2%), craft/vintage goods marketplace Etsy (ETSY -7.2%), SMB Web services provider Wix.com (WIX -7.9%), and CAD/CAM software leader Autodesk (ADSK -7.7%).
- Others include gaming headset vendor local reviews leader Yelp (YELP -6%), Turtle Beach (HEAR -19.5%), wireless charging tech developer Energous (WATT -14.2%), cloud HR software firm Paylocity (PCTY -7.3%), e-commerce software/services firm Shopify (SHOP -8.9%), e-commerce services firm ChannelAdvisor (ECOM -8.5%), mainframe/IT services provider Unisys (UIS -7%), and car-buying site TrueCar (TRUE -6.7%).
- Previously covered: Qorvo, Cimpress, Tableau, Multi-Fineline, LendingTree, Twitter
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. 22, 2015, 12:47 PM
Jul. 24, 2015, 12:45 PM
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
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. 10, 2015, 3:05 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +6%), custom parts maker Proto Labs (PRLB +4.6%), printing plate/commercial film maker Eastman Kodak (KODK +3.9%), cloud HR software vendor Paylocity (PCTY +3.7%), cloud telecom expense software vendor Tangoe (TNGO +4.2%), and cloud tech support software vendor Support.com (SPRT +6.7%). The Nasdaq is up 0.4%.
- Only a few tech companies are posting major declines. The group includes Chinese online video platform Youku (YOKU -5.7%) and mainframe/high-end server maker Unisys (UIS -3.4%).
- Following a rough 2014, VirnetX is up 34% in 2015; 15.9M shares were shorted as of March 13. Proto Labs has broken out of the narrow range shares have traded in since mid-February. Support.com's gains come a day after the company disclosed a new contract with Comcast. Paylocity is erasing the losses seen yesterday following a BofA downgrade. Kodak is up 13% since posting Q4 results on March 16.
- Youku, quite volatile lately, is giving back a chunk of Wednesday's big gains. Unisys' decline comes ahead of its April 23 Q1 report. On Wednesday, the company announced it's supplying high-end servers and cybersecurity software to NASA through the agency's SEWP V contract (covers multiple suppliers, worth up to $20B over 10 years).
- Previously covered: 3D Systems, Alcatel-Lucent, Nokia, LinkedIn, GoDaddy, FireEye, Turtle Beach, Mavenir/Mitel, Gigamon, Synacor
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
Unisys Corp. is a worldwide information technology company, which engages in providing integrated solutions to clients in the government, financial services and commercial markets. It offers cloud and infrastructure services, application services, security solutions and server technology. The... More
Industry: Information Technology Services
Country: United States