Poor Government Sales Hurt Unisys' Profits, Stock

Poor Government Sales Hurt Unisys' Profits, Stock

By Steve LeSueur, Editor


JULY 18 ? Unisys Corp.'s second quarter profits declined more than 50 percent, due in part to a poorer-than-expected showing in its federal government business, the Blue Bell, Pa.-based company reported July 18.


Company profits fell to $56.3 million, excluding an extraordinary charge for the repayment of debt, from net income of $118.0 million in the second quarter of 1999. Second quarter revenue declined 16 percent to $1.6 billion from $1.9 billion a year-ago.


Two areas the company said contributed to its problems were financial services and government sales, said Tom Meagher, vice president of equity research with BB&T Capital Markets, a division of Scott & Stringfellow Inc. of Richmond, Va.


"What it came down to with the government was they just didn't close the hardware sales," Meagher said.


Unisys shares took a beating following the report, falling more than 20 percent to $11 per share from $14.12 at the market's July 18 close.


Unisys, which in June warned of slower-than-expected growth, said the third quarter would witness a further slide in revenue and profits.


"Based on the continued slow recovery in our business and the movement of some technology contracts into the fourth quarter, we expect our third-quarter revenue to be down from a year ago and our earnings per share to be below the second quarter 2000 level," said Lawrence Weinbach, Unisys chairman and chief executive officer. "We look for a pickup in revenue in the fourth quarter, particularly in our technology business, with earnings per share relatively flat from year-ago levels."

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

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. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.