Unisys Corp. (UIS) Misses Q2 EPS by 8c, Revenues Miss

Unisys Corp. (NYSE: UIS) reported Q2 EPS of ($0.15), $0.08 worse than the analyst estimate of ($0.07). Revenue for the quarter came in at $438.8 million versus the consensus estimate of $460.27 million.

• Full-year revenue expectations unchanged relative to end of Q1 at (10)% YoY
• Current expectations for full-year non-GAAP operating profit margin between 5.2% and 6.7%
• Services gross profit margin of 15.5%, up 260 basis points sequentially
• Strong cash balance of $782 million, relative to $790 million at the end of the first quarter
• Total company revenue of $439 million, relative to $569 million in prior-year period
• Total company operating profit margin of (1.9)%, relative to 9.3% in prior-year period, largely due to timing of ClearPath Forward® renewals within Technology
• Non-GAAP operating profit(5) margin of 0.2%, relative to 9.8% in prior-year period
• Total company pipeline(2) up 10.1% sequentially versus the first quarter
• Services Total Contract Value(3) ("TCV") up 1.4% year over year

Unisys Corporation (NYSE: UIS) today reported second-quarter 2020 financial results. "Our revenue expectations are unchanged for the full year 2020 and we now have enough visibility to provide profitability expectations for the year. Our client satisfaction is high, represented by an industry-leading Net Promoter Score, and our liquidity is strong coming out of the most challenging COVID-19 quarter." said Unisys Chairman and CEO Peter A. Altabef. "Approximately half of the year-over-year revenue decline in the quarter was due to COVID-related impacts within Services. The rest was driven by intra-year shifts in ClearPath Forward® renewal timing, currency movement and expected declines in our check-processing JV. While non-GAAP operating profit was down year over year, over 90 percent of this was due to lighter ClearPath Forward renewals in the quarter, which we view as a timing issue only."

Full-Year Expectations:Full-year revenue expectations are unchanged relative to the end of the first quarter at (10)% YoY. Profitability expectations were not provided in the first quarter; however, the company's current expectations for full-year non-GAAP operating profit margin are between 5.2% and 6.7%.

For earnings history and earnings-related data on Unisys Corp. (UIS) click here.

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