This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Unisys' CEO Discusses Q3 2011 Results - Earnings Call Transcript

J. Edward Coleman

Thanks, Niels. Hello, everyone. Thank you for joining us today to discuss our third quarter 2011 financial results. This was a strong quarter for Unisys. We grew our revenue and tripled EPS from continuing operations as we benefited from the foundational work we've been doing to strengthening our competitive and financial profile. Page 4 of the slides summarizes our results in the quarter. Our revenue grew 6% despite lower revenue in our U.S. Federal business, where we continue to be impacted by the ending of the TSA contract last November and budget uncertainties in that market. Excluding the U.S. Federal business, our overall revenue grew 14%. Services revenue grew 2%, 12% excluding U.S. Federal business. Within services, we grew revenue in both of our strategic growth areas of IT outsourcing and systems integration. Excluding U.S. Federal, IT outsourcing revenue grew 12%, marking the seventh consecutive quarter of growth in this business. And excluding U.S. Federal, systems integration revenue grew 21%, reflecting higher sales of industry solutions.

In technology, we grew revenue 36%, driven by significantly higher ClearPath sales. As I mentioned in our last call, our ClearPath sales can vary significantly from quarter-to-quarter, which is why we believe the best way to measure this business is on a full year basis. With a strong third quarter, year-to-date ClearPath revenue is approximately flat, and we continue to focus on our goal of maintaining 2011 ClearPath revenue roughly flat with 2010 levels. Along with continued focus on cost discipline, we were able to leverage the revenue growth in the quarter into higher margins and profitability. We reported an operating profit of $113 million, up 48%, and achieved an overall operating margin of 11.1%. In our services business, we achieved an operating profit margin of 8.7%, which was within our targeted 8% to 10% range. At the bottom line, we delivered net income from continuing operations of $79 million and diluted EPS of $1.63, up from $0.50 a year ago. We're pleased with these results, which speak to the progress we've made in enhancing our portfolio, creating a more competitive cost structure and strengthening our selling efforts. At the same time, we recognize we have more work to do to drive continued profitable revenue growth and achieve our goal of consistent, predictable financial results. Global economic conditions are challenging, and we must continue to sharpen our differentiation in an extremely competitive marketplace. To do that, we'll build on the foundation we put in place over the past 3 years.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs