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Unisys Corp. Reports Operating Results (10-Q)

November 01, 2012 | About:
10qk

10qk

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Unisys Corp. (UIS) filed Quarterly Report for the period ended 2012-09-30.

Unisys Corporation has a market cap of $730.6 million; its shares were traded at around $16.97 with a P/E ratio of 3.8 and P/S ratio of 0.2. Unisys Corporation had an annual average earning growth of 33.4% over the past 5 years.

Highlight of Business Operations:

For the nine months ended September 30, 2012, the company reported net income of $47.6 million, or $1.08 per diluted share, compared with prior period net income of $26.2 million, or $.60 per diluted share. Revenue for the nine months ended September 30, 2012 was $2,727.1 million compared with $2,868.5 million for the nine months ended September 30, 2011. Foreign currency fluctuations had a 3-percentage point negative impact on revenue in the current period compared with the year-ago period. Also impacting the companys nine month 2012 revenue was a $114 million, or 23%, decline in the companys U.S. Federal government business, reflecting continued softness in this business. For the nine months ended September 30, 2012 and September 30, 2011, the company reported income before income taxes of $144.7 million and $94.7 million, respectively. The companys pretax results for the nine months ended September 30, 2012 and 2011 included debt-reduction charges of approximately $30.6 million and $77.6 million, respectively; pension expense of $76.7 million and $26.2 million, respectively; foreign exchange losses of $7.3 million and foreign exchange gains of $21.1 million, respectively; a gain of $10.6 million related to the sale of a subsidiary in the nine months ended September 30, 2012 discussed below; and a charge of $13.5 million in the nine months ended September 30, 2011 related to a Brazil matter discussed below.

For the three months ended September 30, 2012, the company reported a net loss of $12.4 million, or a $.28 loss per diluted share, compared with prior period net income of $78.6 million, or $1.63 per diluted share. Revenue for the three months ended September 30, 2012 was $877.4 million compared with $1,020.1 million for the three months ended September 30, 2011. The companys results for the third quarter of 2012 were impacted by weak demand for systems integration services and lower revenue in its U.S. Federal Systems business. Also impacting the third-quarter 2012 results were $23.1 million of debt reduction charges and higher pension expense of $28.9 million.

Revenue for the nine months ended September 30, 2012 was $2,727.1 million compared with $2,868.5 million for the nine months ended September 30, 2011, a decrease of 5% from the prior year. Approximately 4 percentage points of the decline were due to a $114.4 million, or 23%, decline in revenue from the companys U.S. Federal business. Foreign currency fluctuations had a 3-percentage point negative impact on revenue in the current period compared with the year-ago period.

Selling, general and administrative expense in the nine months ended September 30, 2012 was $422.0 million (15.5% of revenue) compared with $446.5 million (15.6% of revenue) in the year-ago period. The current period includes a gain of $10.6 million related to the sale of a subsidiary which has been recorded as a reduction of selling, general and administrative expense (see note (l) of the Notes to Consolidated Financial Statements).

investment in marketable software was $42.9 million compared with $36.9 million in the year-ago period, capital additions of properties were $26.0 million in 2012 compared with $32.9 million in 2011 and capital additions of outsourcing assets were $27.8 million in 2012 compared with $31.3 million in 2011. During the nine months ended September 30, 2012, net proceeds from the sales of businesses and assets was $5.2 million compared with a net usage of $15.0 million in the year-ago period.

Read the The complete Report

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