Unisys reports growth, flat fed business

Unisys Corp. announced a 2 percent increase in revenues, with its services sales growing 3 percent in the first quarter of the year. Despite continued dampening in federal business, the company was pleased with the results.

The systems integrator's revenue in the first quarter of 2012 increased 2 percent to $928 million compared with $911 million in the first quarter of 2011. It also saw a rise in its first-quarter net income, which was $13.4 million, compared to a net loss of $40.8 million last year, according to a company financial report released April 24.

The gross profit margin improved to 24.3 percent from 22.8 percent in the first quarter of 2011. Operating profit increased to $64.4 million, or 6.9 percent of revenue, from $41.9 million, or 4.6 percent of revenue in 2011.

Services revenue increased 3 percent from the prior year. The company said it mostly reflects growth in systems integrations.

Its technology revenue in 2012 declined 5 percent from the first quarter of 2011. However, technology gross profit margin increased to 62.2 percent from 51.1 percent a year ago. In addition, the technology operating profit margin increased to 25.6 percent from 10.9 percent in 2011. Unisys had sales among a wider mix of enterprise software in the current quarter.

“We have grown revenue year over year for two of the last three quarters despite softness in our U.S. federal government business,” said Ed Coleman, Unisys’ chairman and CEO.

He said Unisys retired an additional $66 million of debt during the quarter, which totals $540 million since September 2010. It’s also cut annual interest expense by $69 million.

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