3rd Quarter Results
Unisys Corporation
Unisys Meets Earnings Guidance for Third Quarter 2004; Company Reports
Strong Order Growth and Reaffirms Earnings Guidance for Full Year 2004
Unisys Corporation (NYSE:UIS) today reported third-quarter 2004 net income of
$25.2 million, or 7 cents per diluted share, compared with third-quarter 2003
net income of $56.2 million, or 17 cents per diluted share. Revenue for the
third quarter of 2004 was flat at $1.45 billion compared with the year-ago
quarter. Currency had a 3 percentage-point positive impact on the company's
revenue in the third quarter, reflecting a weak U.S. dollar against most major
currencies worldwide.
The third-quarter 2004 results included pre-tax pension expense of $23.5 million
compared with pre-tax pension income of $8.5 million in the prior-year quarter.
Excluding the effect of pension accounting in both periods, net income for the
third quarter of 2004 was $41.1 million, or 12 cents per diluted share, compared
with net income of $50.5 million, or 15 cents per diluted share, in the year-ago
period.
The third-quarter 2004 results also included a previously announced net benefit
of $8.2 million, or 2 cents per diluted share, from the items below:
-- During the quarter the U.S. Congressional Joint Committee on Taxation
approved an income tax refund to Unisys related to the settlement of tax
audit issues dating to the mid 1980s. The refund, including interest,
totals approximately $40 million. After payment of related state taxes,
Unisys expects a net cash refund of approximately $30 million by the end
of 2004 or in early 2005. As a result of the resolution of these audit
issues, the company recorded favorable adjustments to its existing tax
liability reserves, which resulted in a tax benefit of $68.2 million, or
20 cents per diluted share, to net income in the third quarter of 2004.
-- As part of its ongoing efforts to reduce its cost base and enhance its
administrative efficiency, on September 30, 2004 Unisys consolidated
facility space and committed to a reduction in global headcount of about
1,400 employees, primarily in general and administrative areas. These
actions resulted in a pre-tax charge to earnings of $82.0 million ($60.0
million after tax), or 18 cents per diluted share, in the third quarter
of 2004. The pre-tax charge impacted the following statement of income
classifications (in millions of dollars):
Cost of revenue $28.1
SG&A 50.2
R&D 8.4
-------
Operating income 86.7
Less other income (expense), net 4.7
-------
Pre-tax income 82.0
The income recorded in other income (expense), net, relates to
minority interests.
Comments from Chairman and CEO Larry Weinbach
'After a tough second quarter, we regained our momentum and achieved our
financial targets for the third quarter,' said Unisys Chairman and CEO Lawrence
A. Weinbach. 'I was particularly encouraged by our strong double-digit order
growth in the quarter, driven by a number of contract signings in outsourcing
and infrastructure services. We also saw strong growth in consulting and systems
integration revenue and in our ES7000 server sales. In fact, this was the
highest revenue quarter for our ES7000 servers in the history of the program.
'We took a number of actions in the third quarter to enhance our success in the
marketplace and drive profitable revenue growth. We have implemented integrated
sales and marketing programs to ensure clients and prospects are aware of the
full 'one Unisys' portfolio of services and solutions. We are focusing more
resources on key accounts, market segments and geographies where we have the
greatest opportunity to win market share. We also are being more aggressive in
bringing Unisys solutions to market. During the quarter, for instance, we
launched the Unisys Global Visible Commerce family of solutions to help
organizations build secure, flexible supply chains. In our technology business,
we introduced new Linux-based offerings for the ES7000 family - opening us to a
fast-growing market that complements our existing Windows-based ES7000 program.
'We also continue our ongoing efforts to reduce costs and enhance efficiency,'
Weinbach said. 'During the quarter we initiated actions to reduce expenses by
consolidating facility space and reducing global headcount by about 1,400
employees, primarily in general and administrative areas. The company expects
these actions will yield approximately $70 million of annualized cost savings on
a run-rate basis by the end of 2005. These cost actions, and our enhanced sales
and marketing efforts, will position us well for 2005.'
Third-Quarter Company Highlights
Overall orders showed strong double-digit growth in the quarter. Services orders
showed substantial growth, driven by outsourcing and infrastructure services,
while technology orders declined.
On a geographic basis, U.S. revenue declined 4% to $655 million. Revenue in
international markets increased 3% in the quarter to $791 million, driven by
growth in Europe, the South Pacific, and Japan.
The company posted an operating loss of $38.0 million in the third quarter of
2004, compared with operating income of $105.9 million in the year-ago quarter.
The principal reasons for the decline were:
-- The charge related to the cost reduction actions to reduce headcount and
consolidate facilities
-- Pension expense in the third quarter of 2004 compared to pension income
in the third quarter of 2003
-- Lower margins in the company's outsourcing business
Third-Quarter Business Segment Highlights
Unisys has a long-standing policy to evaluate business segment performance on
operating income exclusive of restructuring charges and unusual and nonrecurring
items. Therefore, the comparisons below exclude the cost reduction item
discussed above.
Customer revenue in the company's services segment grew 2% in the third quarter
of 2004 compared with the year-ago period, as growth in consulting and systems
integration and outsourcing offset revenue declines in infrastructure services
and core maintenance. Excluding the impact of pension accounting in both
periods, services gross profit margin declined to 17.6% from 19.7% a year ago,
while services operating margin declined to 1.6% compared with 3.5% a year ago.
The services margin declines in the quarter were driven by lower margins in the
outsourcing business principally due to modifications of two contracts. On a
reported basis, gross profit margin in the services business declined to 16.2%
from 19.8% a year ago, while the services operating margin was (0.2%) compared
with 3.9% a year ago.
Customer revenue in the company's technology segment declined 8% in the third
quarter, driven by double-digit declines in specialized technology sales.
Enterprise server sales were flat compared to the year-ago quarter as strong
double-digit growth in Intel-based ES7000 servers offset a slight revenue
decline in ClearPath sales. Excluding the impact of pension accounting in both
periods, technology gross margin declined to 51.1% in the third quarter of 2004
from 52.9% in the year-ago quarter. Technology operating margin excluding
pension accounting declined to 14.7%, compared with 15.3% in the year-ago
period. On a reported basis, technology gross margin declined to 51.0% from
53.1% a year ago, and technology operating margin declined to 13.9% from 16.5% a
year ago.
Cash Flow Highlights
Unisys used $1 million of cash from operations in the third quarter of 2004
compared with operational cash flow of $114 million in the year-ago quarter. The
change in operational cash flow year-over-year was primarily driven by lower
customer prepayments in the third quarter of 2004 compared with the prior-year
period. Capital expenditures in the third quarter of 2004 were $77 million,
including $58 million invested in revenue-generating projects. Unisys ended the
quarter with $574 million of cash on hand.
Year-to-Date Results
For the nine months ended September 30, 2004 Unisys reported net income of $73.5
million, or 22 cents per diluted share, compared with net income of $147.2
million, or 44 cents per diluted share, in the year-ago period. As mentioned
above, net income for the nine months ended September 30, 2004 includes income
of $8.2 million, or 2 cents per diluted share, related to the tax refund and
cost reduction items. Excluding the impact of pension accounting in both
periods, the company reported net income of $121.4 million, or 36 cents per
diluted share, for the first nine months of 2004 compared with $131.9 million,
or 40 cents per diluted share, in the year-ago period. Revenue for the first
nine months of 2004 was $4.30 billion compared with $4.27 billion in the first
nine months of 2003.
Business Outlook
'We expect to close out 2004 with strong earnings in our fourth quarter,'
Weinbach said. 'This would enable us to achieve our previously stated guidance
of full-year 2004 earnings per share, excluding the impact of pension
accounting, in the 68-72 cents range on flat to low single-digit revenue
growth.'
Conference Call
Unisys will hold a conference call today at 8:15 a.m. Eastern Time to discuss
its results. The listen-only Webcast, as well as the accompanying presentation
materials, can be accessed via a link on the Unisys Investor Web site at
www.unisys.com/investor. Following the call, an audio replay of the Webcast, and
accompanying presentation materials, can be accessed through the same link.
About Unisys
Unisys is a worldwide information technology services and solutions company. Our
people combine expertise in consulting, systems integration, outsourcing,
infrastructure and server technology with precision thinking and relentless
execution to help clients, in more than 100 countries, quickly and efficiently
achieve competitive advantage. For more information, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not limited to,
any projections of earnings, revenues or other financial items; any statements
of the company's plans, strategies or objectives for future operations;
statements regarding future economic conditions or performance; and any
statements of belief or expectation. All forward-looking statements rely on
assumptions and are subject to various risks and uncertainties that could cause
actual results to differ materially from expectations. In particular, statements
in this release concerning the anticipated cost savings associated with
headcount reductions are subject to the risk that the company may not implement
the reductions as quickly or as fully as currently planned. In addition,
statements in this release regarding the company's financial outlook are based
in part on the company's assumptions for the economy. Risks and uncertainties
that could affect the company's future results include general economic and
business conditions, the effects of aggressive competition in the information
services and technology markets on the company's revenues, pricing and margins
and on the competitiveness of its product and services offerings, the level of
demand for the company's products and services and the company's ability to
anticipate and respond to changes in technology and customer preferences, the
company's ability to grow and execute outsourcing and infrastructure services,
the company's ability to drive profitable growth in consulting and systems
integration, the degree of market acceptance of the company's high-end
enterprise servers, the company's ability to maintain tight cost controls, the
risks of doing business internationally and the potential for infringement
claims to be asserted against the company or its clients. Additional discussion
of these and other factors that could affect Unisys future results is contained
in its periodic filings with the Securities and Exchange Commission. Unisys
assumes no obligation to update any forward-looking statements.
Presentation of Information in this Press Release
This release presents information that excludes pension income/expense. This
financial measure is considered non-GAAP. Generally, a non-GAAP financial
measure is a numerical measure of a company's performance, financial position,
or cash flows where amounts are either excluded or included not in accordance
with generally accepted accounting principles. A reconciliation of this non-GAAP
measure to the most directly comparable GAAP measure, as well as disclosure of
the reasons why the company uses this measure, is included in the financial
information accompanying this release.
RELEASE NO: 1014/8455 (See accompanying financial information)
http://www.unisys.com/about__unisys/news_a_events/10148455.htm
Unisys is a registered trademark of Unisys Corporation. All other brands and
products referenced herein are acknowledged to be trademarks or registered
trademarks of their respective holders.
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Three Months Nine Months
Ended September 30 Ended September 30
------------------ ------------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenue
Services $1,147.1 $1,124.3 $3,470.9 $3,394.7
Technology 298.6 325.4 825.8 878.9
-------- -------- -------- --------
1,445.7 1,449.7 4,296.7 4,273.6
Costs and expenses
Cost of revenue:
Services 965.7 886.1 2,821.6 2,675.4
Technology 139.0 138.5 375.5 393.9
-------- -------- -------- --------
1,104.7 1,024.6 3,197.1 3,069.3
Selling, general and
administrative 303.7 251.0 837.8 737.1
Research and development 75.3 68.2 218.1 198.7
-------- -------- -------- --------
1,483.7 1,343.8 4,253.0 4,005.1
-------- -------- -------- --------
Operating income (loss) (38.0) 105.9 43.7 268.5
Interest expense 16.2 17.2 51.4 51.3
Other income
(expense), net (3.0) (4.7) 21.6 2.5
-------- -------- -------- --------
Income (loss) before
income taxes (57.2) 84.0 13.9 219.7
Provision (benefit) for
income taxes (82.4) 27.8 (59.6) 72.5
-------- -------- -------- --------
Net income $25.2 $56.2 $73.5 $147.2
======== ======== ======== ========
Earnings per share
Basic $ .08 $ .17 $ .22 $ .45
======== ======== ======== ========
Diluted $ .07 $ .17 $ .22 $ .44
======== ======== ======== ========
Shares used in the per share
computations (thousands):
Basic 335,576 330,033 334,236 328,675
======== ======== ======== ========
Diluted 337,362 333,979 338,059 331,317
======== ======== ======== ========
UNISYS CORPORATION
SEGMENT RESULTS
(Millions)
Elimi-
Total nations Services# Technology#
-------- -------- -------- ----------
Three Months Ended
September 30, 2004
------------------
Customer revenue $1,445.7 $1,147.1 $298.6
Intersegment ($63.6) 5.2 58.4
-------- -------- -------- --------
Total revenue $1,445.7 ($63.6) $1,152.3 $357.0
======== ======== ======== ========
Gross profit percent 23.6% 16.2% 51.0%
======== ======== ========
Operating profit
(loss) percent (2.6%) (0.2%) 13.9%
======== ======== ========
Three Months Ended
September 30, 2003
------------------
Customer revenue $1,449.7 $1,124.3 $325.4
Intersegment ($66.4) 7.3 59.1
-------- -------- -------- --------
Total revenue $1,449.7 ($66.4) $1,131.6 $384.5
======== ======== ======== ========
Gross profit percent 29.3% 19.8% 53.1%
======== ======== ========
Operating profit
percent 7.3% 3.9% 16.5%
======== ======== ========
Nine Months Ended
September 30, 2004
------------------
Customer revenue $4,296.7 $3,470.9 $825.8
Intersegment ($166.6) 14.5 152.1
-------- -------- -------- --------
Total revenue $4,296.7 ($166.6) $3,485.4 $977.9
======== ======== ======== ========
Gross profit percent 25.6% 17.9% 50.7%
======== ======== ========
Operating profit
percent 1.0% 1.0% 9.6%
======== ======== ========
Nine Months Ended
September 30, 2003
------------------
Customer revenue $4,273.6 $3,394.7 $878.9
Intersegment ($225.6) 19.2 206.4
-------- -------- -------- --------
Total revenue $4,273.6 ($225.6) $3,413.9 $1,085.3
======== ======== ======== ========
Gross profit percent 28.2% 19.5% 50.0%
======== ======== ========
Operating profit
percent 6.3% 4.2% 12.0%
======== ======== ========
# 2004 results exclude charges for cost reductions and related
actions as announced on October 6, 2004
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Millions)
September 30, December 31,
2004 2003
------------ -----------
Assets
Current assets
Cash and cash equivalents $573.7 $635.9
Accounts and notes receivable, net 962.0 1,027.8
Inventories
Parts and finished equipment 102.2 121.7
Work in process and materials 117.7 116.9
Deferred income taxes 295.0 270.0
Other current assets 104.9 85.7
---------- ----------
Total 2,155.5 2,258.0
---------- ----------
Properties 1,364.9 1,352.7
Less accumulated depreciation
and amortization 952.5 928.5
---------- ----------
Properties, net 412.4 424.2
---------- ----------
Outsourcing assets, net 510.9 477.5
Marketable software, net 341.3 332.2
Investments at equity 166.4 153.3
Prepaid pension cost 49.2 55.5
Deferred income taxes 1,385.7 1,384.6
Goodwill 185.3 177.5
Other long-term assets 203.5 211.8
---------- ----------
Total $5,410.2 $5,474.6
========== ==========
Liabilities and stockholders' equity
Current liabilities
Notes payable $20.0 $17.7
Current maturities of long-term debt 150.8 2.2
Accounts payable 392.6 513.8
Other accrued liabilities 1,233.5 1,305.7
Income taxes payable 153.5 214.1
---------- ----------
Total 1,950.4 2,053.5
---------- ----------
Long-term debt 899.5 1,048.3
Accrued pension liabilities 471.6 433.6
Other long-term liabilities 551.1 544.0
Stockholders' equity
Common stock 3.4 3.3
Accumulated deficit (341.3) (414.8)
Other capital 3,869.4 3,818.6
Accumulated other comprehensive loss (1,993.9) (2,011.9)
---------- ----------
Stockholders' equity 1,537.6 1,395.2
---------- ----------
Total $5,410.2 $5,474.6
========== ==========
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Nine Months Ended
September 30
------------------
2004 2003
------- -------
Cash flows from operating activities
Net income $73.5 $147.2
Add (deduct) items to reconcile
net income to net cash provided
by operating activities:
Depreciation and amortization
of properties and outsourcing assets 181.7 154.9
Amortization of marketable software 96.6 92.2
(Increase) in deferred income
taxes, net (25.3) (2.5)
Decrease (increase) in receivables, net 97.2 (32.3)
Decrease in inventories 19.1 43.0
(Decrease) in accounts payable and
other accrued liabilities (207.5) (192.8)
(Decrease) increase in income
taxes payable (52.6) 19.8
Increase (decrease) in other liabilities 19.8 (44.0)
(Increase) in other assets (34.0) (29.9)
Other 44.7 6.5
------- -------
Net cash provided by operating activities 213.2 162.1
------- -------
Cash flows from investing activities
Proceeds from investments 4,423.4 3,626.1
Purchases of investments (4,427.4) (3,663.2)
Investment in marketable software (88.8) (109.4)
Capital additions of properties
and outsourcing assets (192.4) (177.9)
Purchases of businesses (18.6) (2.0)
------- -------
Net cash used for investing activities (303.8) (326.4)
------- -------
Cash flows from financing activities
Net reduction in short-term borrowings (1.0) (57.0)
Proceeds from employee stock plans 30.9 21.0
Payments of long-term debt (2.3) (3.8)
Proceeds from issuance of long-term debt 293.3
------- -------
Net cash provided by financing activities 27.6 253.5
------- -------
Effect of exchange rate changes on cash
and cash equivalents .8 11.7
------- -------
Increase (decrease) in cash and
cash equivalents (62.2) 100.9
Cash and cash equivalents, beginning of
period 635.9 301.8
------- -------
Cash and cash equivalents, end of period $573.7 $402.7
======= =======
Reconciliation of GAAP to Non-GAAP
Financial Information
The preceding release presents information with and without pension
expense or income. Unisys believes that this information will enhance
an overall understanding of its financial performance due to the
significant change in pension expense or income from period to period
and the non-operational nature of pension expense or income. The
presentation of non-GAAP information is not meant to be considered in
isolation or as a substitute for results prepared in accordance with
accounting principles generally accepted in the United States.
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Three Months Ended
September 30, 2004
----------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
-------- -------- --------
Revenue $1,445.7 $1,445.7
Costs and expenses
Cost of revenue 1,104.7 ($17.1) 1,087.6
Selling, general and
administrative 303.7 (4.4) 299.3
Research and development 75.3 (2.0) 73.3
-------- -------- --------
1,483.7 (23.5) 1,460.2
-------- -------- --------
Operating income (loss) (38.0) 23.5 (14.5)
Interest expense 16.2 16.2
Other income
(expense), net (3.0) (3.0)
-------- -------- --------
Income (loss) before
income taxes (57.2) 23.5 (33.7)
Provision (benefit) for
income taxes (82.4) 7.6 (74.8)
-------- -------- --------
Net income $25.2 $15.9 $41.1
======== ======== ========
Diluted earnings per share $ .07 $ .05 $ .12
======== ======== ========
Three Months Ended
September 30, 2003
----------------------------
US GAAP Less Without
as Pension Pension
Reported Income Income
-------- -------- --------
Revenue $1,449.7 $1,449.7
Costs and expenses
Cost of revenue 1,024.6 $1.7 1,026.3
Selling, general and
administrative 251.0 3.2 254.2
Research and development 68.2 3.6 71.8
-------- -------- --------
1,343.8 8.5 1,352.3
-------- -------- --------
Operating income 105.9 (8.5) 97.4
Interest expense 17.2 17.2
Other income
(expense), net (4.7) (4.7)
-------- -------- --------
Income before income taxes 84.0 (8.5) 75.5
Provision for income taxes 27.8 (2.8) 25.0
-------- -------- --------
Net income $56.2 ($5.7) $50.5
======== ======== ========
Diluted earnings per share $ .17 ($ .02) $ .15
======== ======== ========
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Nine Months Ended
September 30, 2004
----------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
-------- -------- --------
Revenue $4,296.7 $4,296.7
Costs and expenses
Cost of revenue 3,197.1 ($50.4) 3,146.7
Selling, general and
administrative 837.8 (14.1) 823.7
Research and development 218.1 (6.0) 212.1
-------- -------- --------
4,253.0 (70.5) 4,182.5
-------- -------- --------
Operating income 43.7 70.5 114.2
Interest expense 51.4 51.4
Other income
(expense), net 21.6 21.6
-------- -------- --------
Income before income taxes 13.9 70.5 84.4
Provision (benefit) for
income taxes (59.6) 22.6 (37.0)
-------- -------- --------
Net income $73.5 $47.9 $121.4
======== ======== ========
Diluted earnings per share $ .22 $ .14 $ .36
======== ======== ========
Nine Months Ended
September 30, 2003
----------------------------
US GAAP Less Without
as Pension Pension
Reported Income Income
-------- -------- --------
Revenue $4,273.6 $4,273.6
Costs and expenses
Cost of revenue 3,069.3 $4.4 3,073.7
Selling, general and
administrative 737.1 7.6 744.7
Research and development 198.7 10.8 209.5
-------- -------- --------
4,005.1 22.8 4,027.9
-------- -------- --------
Operating income 268.5 (22.8) 245.7
Interest expense 51.3 51.3
Other income
(expense), net 2.5 2.5
-------- -------- --------
Income before income taxes 219.7 (22.8) 196.9
Provision for income taxes 72.5 (7.5) 65.0
-------- -------- --------
Net income $147.2 ($15.3) $131.9
======== ======== ========
Diluted earnings per share $ .44 ($ .04) $ .40
======== ======== ========
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS OF OPERATIONS
(Millions)
Three Months Ended
September 30, 2004
---------------------------
Less Without
As Pension Pension
Reported Expense Expense
-------- -------- --------
Services Segment #
Total revenue $1,152.3 $1,152.3
Gross profit 186.2 ($16.7) 202.9
% of revenue 16.2% 17.6%
Operating income (loss) (2.2) (20.6) 18.4
% of revenue -0.2% 1.6%
Technology Segment #
Total revenue 357.0 357.0
Gross profit 182.0 (0.4) 182.4
% of revenue 51.0% 51.1%
Operating income 49.7 (2.9) 52.6
% of revenue 13.9% 14.7%
Total Company
Total revenue 1,445.7 1,445.7
Gross profit 341.0 (17.1) 358.1
% of revenue 23.6% 24.8%
Operating income (loss) (38.0) (23.5) (14.5)
% of revenue -2.6% -1.0%
Three Months Ended
September 30, 2003
---------------------------
Less Without
As Pension Pension
Reported Income Income
-------- -------- --------
Services Segment
Total revenue $1,131.6 $1,131.6
Gross profit 224.0 $1.0 223.0
% of revenue 19.8% 19.7%
Operating income 43.8 3.9 39.9
% of revenue 3.9% 3.5%
Technology Segment
Total revenue 384.5 384.5
Gross profit 204.0 0.7 203.3
% of revenue 53.1% 52.9%
Operating income 63.4 4.6 58.8
% of revenue 16.5% 15.3%
Total Company
Total revenue 1,449.7 1,449.7
Gross profit 425.1 1.7 423.4
% of revenue 29.3% 29.2%
Operating income 105.9 8.5 97.4
% of revenue 7.3% 6.7%
# 2004 results exclude charges for cost reductions
and related actions as announced on October 6, 2004
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS OF OPERATIONS
(Millions)
Nine Months Ended
September 30, 2004
---------------------------
Less Without
As Pension Pension
Reported Expense Expense
-------- -------- --------
Services Segment #
Total revenue $3,485.4 $3,485.4
Gross profit 624.0 ($49.3) 673.3
% of revenue 17.9% 19.3%
Operating income 35.2 (61.0) 96.2
% of revenue 1.0% 2.8%
Technology Segment #
Total revenue 977.9 977.9
Gross profit 496.2 (1.1) 497.3
% of revenue 50.7% 50.9%
Operating income 94.0 (9.5) 103.5
% of revenue 9.6% 10.6%
Total Company
Total revenue 4,296.7 4,296.7
Gross profit 1,099.6 (50.4) 1,150.0
% of revenue 25.6% 26.8%
Operating income 43.7 (70.5) 114.2
% of revenue 1.0% 2.7%
Nine Months Ended
September 30, 2003
---------------------------
Less Without
As Pension Pension
Reported Income Income
-------- -------- --------
Services Segment
Total revenue $3,413.9 $3,413.9
Gross profit 666.9 $1.7 665.2
% of revenue 19.5% 19.5%
Operating income 142.3 9.0 133.3
% of revenue 4.2% 3.9%
Technology Segment
Total revenue 1,085.3 1,085.3
Gross profit 542.6 2.7 539.9
% of revenue 50.0% 49.7%
Operating income 129.8 13.8 116.0
% of revenue 12.0% 10.7%
Total Company
Total revenue 4,273.6 4,273.6
Gross profit 1,204.3 4.4 1,199.9
% of revenue 28.2% 28.1%
Operating income 268.5 22.8 245.7
% of revenue 6.3% 5.7%
# 2004 results exclude charges for cost reductions
and related actions as announced on October 6, 2004
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
FORWARD-LOOKING ESTIMATED DILUTED EARNINGS PER SHARE
Three
Months Year
Ending Ending
12/31/2004 12/31/2004
---------- ----------
Diluted earnings per share-
on a GAAP basis .27-.31 .49-.53
Add back estimated pension expense,
net of tax .05 .19
--------- ---------
Diluted earnings per share-
on a NON-GAAP basis
(excluding pension expense) .32-.36 .68-.72
========= =========
NOTE: See section in press release entitled 'Forward-Looking
Statements'.
CONTACT: Unisys Corporation
Media Contacts:
Elizabeth Douglass, 215-986-6583
elizabeth.douglass@unisys.com
or
Jacqueline Lewis, 215-986-5204
jacqueline.lewis@unisys.com
or
Investor Contact:
Jim Kerr, 215-986-5795
jim.kerr@unisys.com
Latest directors dealings
- 2 days ago Judges Scientific
- 2 days ago Mitie Group
- 2 days ago NCC Group
- 2 days ago Worldwide Healthcare Trust
- 2 days ago JpMorgan China Growth & Income