Unisys Announces Second-Quarter 2011 Financial Results

Unisys reported a second-quarter 2011 net loss of $11.6 million, or a loss of 27 cents per diluted share. The results include a previously announced charge of $45.7 million related to debt reduction and a pre-tax charge of $13.5 million related to the loss of an old non-income tax case concerning the company’s former Brazilian manufacturing operations. Excluding these charges, non-GAAP earnings per diluted share were 93 cents in the quarter. Revenue in the second quarter of 2011 declined 10 percent to $937 million compared with $1.04 billion in the year-ago quarter. Foreign currency fluctuations had a 5 percentage-point positive impact on revenue in the quarter.

"Our second-quarter results were impacted by continued softness in the U.S. Federal marketplace and lower sales of ClearPath systems," said Unisys chairman and CEO Ed Coleman in the announcement issued by Unisys. "In spite of this, we made important progress in the quarter against our three-year financial goals. Outside the U.S. Federal business, our overall services revenue was essentially flat year over year and we grew our IT outsourcing revenue for the sixth consecutive quarter. We improved our services operating profit margin, both sequentially and year-over-year, to 7.1% as we work toward a consistent 8 to 10% services operating margin target. We also continued to strengthen the balance sheet in the quarter, further reducing debt by $179 million. Cash net of debt has increased $518 million from a year ago.

"The decline in ClearPath sales in the quarter followed growth last quarter and in 2010," Coleman said. "As ClearPath sales can vary greatly from quarter to quarter, we believe the best way to measure this business is on an annual basis. We continue to focus on achieving our goal of maintaining flat ClearPath revenue compared with 2010."

Complete details on the second quarter results are available from Unisys