Unisys Delivers Fifth Consecutive Quarter of Year-Over-Year Improved Profitability in Q2 2010

Unisys recently reported second-quarter 2010 net income of $120.2 million, compared with net income of $38.1 million in the year-ago quarter.

"This was another solid quarter for the company as we continued to make progress in enhancing our profitability and reshaping our business model at Unisys. By staying focused on our business priorities we delivered our fifth consecutive quarter of year-over-year improved profitability," said Ed Coleman, Unisys chairman and CEO, during the company's Q2 earnings conference call late last month.

"Driven by a strong performance in our technology business, our second quarter operating profit grew 58% to $107 million and we reported a 10.1% operating margin in the quarter. Including the pretax gain of $65 million from the sale of our Health Information Management business we reported net income of $120 million, up from $38 million a year ago," said Coleman.

"Net income from continuing operations rose 77% to $59 million," he continued. "Our technology business had a great quarter, growing revenue 47% as sales in ClearPath servers more than doubled in the quarter."

In Unisys' technology business, Coleman added, Unisys has seen three consecutive quarters of year-over-year ClearPath revenue growth as the company continues to "reposition and revitalize ClearPath as an open, powerful, extremely reliable mainframe platform capable of supporting the state-of-the-art tools and technologies needed by today's enterprises."

Recently, he noted, Unisys introduced a development and test cloud for ClearPath. (See article below.) "This is one of a planned series of new cloud-based solutions coming for ClearPath which complement the production level software as a service cloud we've been running in support of our air cargo solution in several airlines for over 7 years."

Unisys' revenue in the second quarter of 2010 declined 4%(2% excluding divested businesses) to $1.06 billion compared with $1.10 billion in the year-ago quarter. Revenue declined 5% (3% excluding divested businesses) on a constant currency basis. Revenue in the United States was $450 million and declined 13% due to the impact of divestitures and lower U.S. federal government revenue. Revenue in international markets grew 3% (flat in constant currency) to $606 million.

For more details about Unisys' second quarter results, go to the Unisys website.