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Unisys beats 2Q forecasts
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July 15, 1999: 8:20 a.m. ET
Systems integrator cites cost cuts, rising demand for 58% net increase
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NEW YORK (CNNfn) - Unisys Corp. posted a 58-percent gain in second-quarter net income Thursday, beating analysts' forecasts as the systems integrator trimmed expenses and debt amid rising demand for its services.
The Blue Bell, Pa.-based company earned $119.7 million, or 38 cents per diluted share, in the quarter ended June 30, compared with $90.1 million, or 24 cents a share, a year earlier.
The latest quarter topped the consensus estimate of 33 cents a share, according to the earnings tracking firm First Call Corp.
Revenue rose 9 percent to $1.9 billion, led by Unisys' services business, which includes hardware and software integration for large corporate clients.
Unisys' top executive cited rising demand for its services as companies try to be more competitive.
"As they approach the new millennium, organizations are striving to realize new levels of competitiveness, productivity and customer service through the use of leading-edge information technologies," said chairman and chief executive officer Lawrence Weinbach.
"We move into the second half of 1999 confident that we can meet our earnings goals for the year," Weinbach said. He said the company has reduced its debt by $1.2 billion and eliminated $1.4 billion of preferred stock in the past two years.
Meanwhile, Unisys (UIS) said it would restate its 1996 and 1997 earnings to account for warranty costs it faced in connection with personal computer-making operations that were discontinued last year. But the restatements don't affect income in 1998 or beyond.
The company raised its 1997 loss per share by 10 cents to $5.20, and its 1996 loss per share to 44 cents from 41 cents.
Unisys shares closed Wednesday at 44-1/16, up 3/8.
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Unisys
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