Unisys federal business drags down revenue
Company reports revenue decline, but net income rose sharply
Unisys Corp. today reported $120.2 million in net income in the second quarter of 2010, an increase from last year, but its revenue fell to $1.06 billion, due to a slowdown in federal business.
The net income increased from the second quarter of last year, which had a net income of $38.1 million. However, the company included in the latest earnings $65 million from the sale of its health information management businesses, according to its report.
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Revenue in the second quarter of 2010 declined 4 percent to $1.06 billion compared with $1.10 billion in the second quarter of 2009, the company reported. Unisys had $450 million in U.S. revenue, a 13 percent decline due to its federal business.
Since 2009, federal sales have fallen 13 percent in the second quarter and 14 percent in the first six months of 2010, the report states.
Janet Haugen, Unisys' chief financial officer, said half of the 13 percent decrease from lower revenue in its federal sales, including revenue from its contract with the Transportation Security Administration and its Federal Acquisition Service Application, Maintenance and Enhancements (FAME) contract, she said.
Despite the declines, Edward Coleman, the corporation’s chairman and chief executive officer, said the company is continuing expand its work into new programs and agencies. Unisys was recently awarded new contracts with the U.S. Agriculture Department and an indefinite-delivery, indefinite-quantity contract with the National Geospatial Intelligence Agency.
Executives are pleased with the second quarter’s results.
“The second quarter was another solid quarter for Unisys,” Coleman said.
In the last half of the year, Unisys executives plan to continue in reshaping the company. They want to look for costs-cutting measures and will turn their attention to integral areas of business, including security, data center transformation and application modernization solutions, Coleman said.