Unisys Q3 revenue off slightly; net income up almost 300%

IT hardware and services vendor Unisys Corp. today reported lower revenue for its third quarter compared with a year ago but said its net income increased almost 300%.

Revenue for the quarter, which ended Sept. 30, totaled $1.33 billion. That was about 3% lower than the $1.38 billion the company reported for the same quarter one year ago. Revenue for the first nine months of 2002 totaled $4.05 billion, compared with $4.46 billion one year earlier.

The Blue Bell, Pa.-based company's third-quarter net income soared, however, to $59 million, or 18 cents per share, from $20.9 million, or 7 cents per share, a year ago.

Chairman and CEO Lawrence Weinbach said in a statement that the company's figures are pleasing in light of continuing sluggishness in the economy.

"Our third-quarter results, delivered in a very difficult economic environment, demonstrate the strength of our business strategy," he said. "By staying highly focused and disciplined in the marketplace and in controlling costs, we nearly tripled our net income over the year-ago period -- our second consecutive quarter of significant year-over-year earnings growth."

Weinbach said the company is on track to achieve its goal of full-year 2002 earnings per share that are about 50% higher than the 48 cents per share earned in 2001, excluding special items. The company expects to reach its targets of full-year 2002 earnings per share of between 67 and 70 cents on revenue of $5.5 billion to $5.6 billion, he said.

Unisys reported that U.S. revenue increased 3% in the third quarter to $619 million, compared with $599 million a year ago. Revenue in international markets decreased 8% to $713 million from $777 million a year ago, as revenue declines in Latin America and Europe more than offset gains in the Asia/Pacific market.

In a separate announcement today, Unisys said it has signed a three-year, $252 million contract extension with the Commonwealth of Pennsylvania to continue to manage a unified data center for several state agencies.

The state's Data Powerhouse system is used to process data for driver's license renewals, property tax and rent rebates for senior citizens, criminal files, unemployment compensation claims and other state government services.

The original seven-year contract, currently valued at $621 million, was finalized in August 1999 and included provisions for a three-year extension. The extension, which runs through 2009, is valued at $252 million.

The project is managed by a consortium of 10 companies led by Unisys. New to the contract extension are rapid disaster recovery capabilities, added because of lessons learned from the Sept. 11 terrorist attacks last year.

Copyright © 2002 IDG Communications, Inc.

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