Unisys Announces First-Quarter 2010 Financial Results

Unisys Corporation reported first-quarter 2010 results recently. Operating profit increased substantially over the year-ago period; though a net loss was driven by foreign exchange losses.

"We made continued progress in the quarter in enhancing the profitability of the business," said Unisys chairman and CEO Ed Coleman, in a statement announcing the results. "Operating margins improved significantly year-over-year in both our services and technology segments as we continue to streamline and simplify our operations, reduce costs, and focus on profitable businesses that build on our core areas of strength. We also made further progress in reducing debt and de-leveraging our balance sheet.

"While we continue efforts to enhance our margins and profitability, we recognize the importance of stabilizing our revenue and were encouraged by double-digit growth in services orders in the quarter as well as a second straight quarter of year-over-year ClearPath sales growth," Coleman said. "These are positive signs that clients see value in the portfolio of services and technology that we have rolled out over the past year."

Unisys' operating profit nearly quadrupled to $58.9 million in the first quarter of 2010, compared with operating profit of $15.0 million in the first quarter of 2009.
The company reported a net loss for the quarter of $11.6 million. The results included approximately $35 million of pre-tax foreign exchange losses in Other Income/Expense, including $20 million relating to the January 2010 currency devaluation in Venezuela. In the first quarter of 2009, the company reported a net loss of $24.4 million, which included approximately $7 million of foreign exchange losses in Other Income/Expense.

Revenue in the first quarter of 2010 declined 7% to $998 million compared with $1.07 billion in the year-ago quarter. Approximately 2 percentage points of the decline was due to divested businesses. Foreign exchange rates had an approximately 5 percentage-point positive impact on revenue in the quarter.
For more details, visit the Unisys website.