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Unisys Announces 5% Growth in ClearPath Sales for 2010


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Unisys reported fourth quarter 2010 and full-year results for 2010. The company reported increased operating profit margin to 12.9% in 4Q10 and 9.3% for the full year.

Other highlights included 5% growth in ClearPath sales for the full year, as well as technology revenue flat at $562 million for the full year compared to declines in prior years. The company also achieved 4Q10 services operating profit margin of 8%, the second consecutive quarter within targeted range of 8 - 10%.

"We made continued progress against our priorities in 2010 and entered 2011 in what we believe is a strong competitive position," said Ed Coleman, Unisys chairman and CEO, in his comments on the financial results during the company's earnings call.

"First, having divested a number of non-core businesses, we have a sharpened focus, with outstanding solutions for our clients in the areas of security, data center transformation and outsourcing, end user outsourcing, and application modernization," said Coleman. "These solutions are enabling us to win exciting new engagements that help our clients deal with the disruptive trends associated with cloud computing, cybersecurity, global computing, social computing, smart computing and IT appliance offerings."

Additionally, he noted, "In our technology business, we've significantly enhanced our flagship ClearPath platform to expand the market for what we believe is the most reliable and secure open enterprise server on the market. Recent innovations include secure partitioning for the Intel Xeon platform and integrated support for Apple iPhones."

Coleman pointed out that Unisys grew its 2010 operating profit by 14% and improved our operating margin to 9.3%. "And for the second consecutive quarter, we achieved a services operating margin within our targeted 8% to 10% range. We also increased pretax income from continuing operations to $223 million for the full year on lower revenue."

Unisys reported fourth-quarter 2010 net income of $99.2 million compared with net income of $114.5 million, in the fourth quarter of 2009. Unisys reported fourth-quarter 2010 income from continuing operations before income taxes of $103.2 million compared with $98.0 million in the fourth quarter of 2009. After taxes, Unisys reported fourth-quarter 2010 net income from continuing operations of $95.2 million, or $2.20 per diluted share, compared with $113.7 million, or $2.62 per diluted share in the fourth quarter of 2009. Revenue declined 10% to $1.04 billion compared with $1.16 billion in the year-ago quarter, with about two percentage points of the revenue decline attributable to divested businesses. Foreign currency fluctuations had a two percentage-point negative impact on revenue in the quarter.

For the full year of 2010, Unisys reported net income of $236.1 million, or $5.45 per diluted share, compared with full-year 2009 net income of $189.3 million, or $4.75 per diluted share. The company reported full-year 2010 income from continuing operations before income taxes of $222.9 million compared with $218.2 million for full-year 2009. After taxes, Unisys reported full-year 2010 net income from continuing operations of $158.9 million, or $3.67 per diluted share, compared with $172.2 million, or $4.32 per diluted share, for full-year 2009. Revenue in 2010 declined 8 percent to $4.02 billion compared with revenue of $4.39 billion in 2009, with about two percentage points of the decline attributable to divested operations. Foreign currency fluctuations had an approximately one percentage-point positive impact on revenue for the full year.

Full details are available on the Unisys website.


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