Federal business drags down Unisys' growth rate

Unisys Corp.’s revenue grew 6 percent to $1.02 billion in the third quarter of 2011, largely based on its operations outside the federal sector, the company said Oct. 24.

Excluding federal business, overall revenue grew 14 percent when compared to the third quarter of 2010.

Ed Coleman, chairman and CEO of Unisys, said the company increased its total revenue and its services revenue. Unisys had strong ClearPath mainframe sales, higher sales of industry solutions within its system integration business, and its non-federal IT outsourcing business.

Growth in these areas “more than offset a decline in our U.S. federal business where market conditions remain challenging,” Coleman said.

Unisys reported a third quarter gross profit margin of 27.9 percent, up from 24.7 percent in the same period last year. The improvement is primarily because of higher sales of ClearPath software and servers and a more profitable mix of services revenue, the company said.

Revenues from some of Unisys’ specific sectors had double-digit increases when excluding federal business. Services revenue grew 12 percent from the year-ago quarter. The increase was driven by both the seventh consecutive quarter of growth in IT outsourcing revenue and the growth in systems integration revenue in the quarter.

Third-quarter 2011 technology revenue grew 36 percent year-over-year as well.

The company’s services backlog as of Sept. 30 was $5.3 billion, a decrease of 8 percent from a year ago.

Third-quarter services orders showed a low double-digit, year-over-year decline in the quarter though. Unisys said it reflects lower outsourcing and fewer federal orders. Services orders increased slightly from the second quarter of 2011.

Unisys, of Blue Bell, Pa., ranks No. 40 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
 Top 100 Slideshow
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts