Unisys reports $65 m loss

BANGALORE, INDIA: Unisys Corporation has reported improved financial results for the second quarter of 2007.

The company posted a second-quarter 2007 net loss of $65.5 million, or 19 cents per share. These results compared with a second-quarter 2006 net loss of $194.6 million, or 57 cents per share, which included a net pre-tax restructuring charge of $141 million and a tax benefit of $8.9 million. Pre-tax retirement-related expense in the second quarter of 2007 was $24.5 million compared with $45.2 million a year ago. The company reported an operating profit of $2.5 million in the current quarter compared with a $183.7 million operating loss in the year-ago quarter.

Revenue for the second quarter of 2007 declined two per cent to $1.38 billion from $1.41 billion in the year-ago quarter, principally driven by a decline in the company’s systems integration and consulting business. Foreign currency exchange rates had an approximately 3 percentage-point positive impact on revenue in the quarter.

The company took a net $24 million pre-tax restructuring charge in the quarter related to facility consolidations and workforce reductions. Including this charge and a $40.6 million tax expense,

Commenting on the results, Joseph W. McGrath, president and CEO, said “Our second-quarter results demonstrate continued steady progress toward our financial goals,” said Joseph W. McGrath, Unisys president and chief executive officer. “Our operating profit improved significantly in the quarter. We saw particularly strong margin improvement in our services business. We continue to take actions to streamline our operations and drive toward our financial goal of an 8-10 percent operating profit margin, excluding retirement-related expense, in 2008.

“As we focus on transforming our profitability, we also continue to build our sales pipeline and lay the foundation for future revenue growth,” McGrath said.