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TheStreet Open House

Unisys Management Discusses Q2 2012 Results - Earnings Call Transcript

Finally, I'd like to remind you that all forward-looking statements made during this conference call are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These factors are discussed more fully in the earnings release and in the company's SEC filings. Copies of these SEC reports are available from the SEC and from the Unisys investor website.

And now I'd like to turn the call over to Ed.

J. Edward Coleman

Thanks, Niels. Hello, everyone. Thank you for joining us today to discuss our second quarter 2012 financial results. This is a solid quarter for Unisys. We reported significantly higher profits, grew revenue on a constant currency basis and continued to make progress on our 3-year financial objectives. Please see Page 4 of the presentation materials for highlights of our results.

We reported net income of $46.6 million compared with an $11.6 million net loss a year ago. The year-ago net loss included a $45.7 million debt reduction charge. Excluding debt reduction charges and pension expense in both years, as well as the impact of a Brazilian tax matter in the year-ago quarter, our non-GAAP earnings per share rose to $1.41 from $1.07 in the year-ago quarter.

Revenue declined 2% but grew 3% in constant currency despite a 20% revenue decline in our U.S. Federal business where market conditions continue to be challenging. This was the third quarter out of the past 4 that we've grown our overall revenue on a constant currency basis.

Our technology business had a particularly strong quarter, growing revenue 12% on strong ClearPath sales. Year-to-date, our technology revenue was up 3%. We continue to believe the best way to measure this business is on an annual basis, and our goal is to maintain stable technology revenue for the full year, most importantly in our flagship ClearPath platform.

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