Unisys has reported revenue of $1.16 billion for the third quarter of 2009, a decrease of 12% compared to $1.31 billion for the same quarter last year. Foreign exchange rates had an approximately 5 percentage-point negative impact on revenue in the quarter. On a constant currency basis, revenue declined 7%.
The gross profit margin increased to 26.4% from 22.2% a year ago, as the company benefited from improved cost efficiencies in services delivery and a stronger mix of high-end enterprise servers. Reflecting these factors and reductions in selling, general, and administrative expenses, the company’s operating profit margin increased to 10.2% compared with 2.9% a year ago.
The company has posted a net income of $61.1m or $1.48 per diluted share for the third quarter of 2009, compared to a net loss of $34.7m, or a loss of $.96 per diluted share for the third quarter of 2008.
Geographically, revenue for the US amounted to $542m, a decrease of 3%, as growth in the company’s US federal government business was offset by declines in its commercial business. Revenue in international markets was $618m, a decrease of 18%. On a constant currency basis, international revenue decreased by 11% for the quarter.
Customer revenue in the company’s services segment decreased by 13% compared to the same period a year ago. Customer revenue in the technology segment decreased by 4%.
Ed Coleman, Chairman and CEO of Unisys, said: “For the second consecutive quarter, the company was solidly profitable at the bottom line. Driven by a more cost-efficient services business and a strong profit performance in our technology business, we tripled our operating income over the year-ago quarter and achieved an operating profit margin of 10.2% in the quarter. We also met a key goal of generating free cash flow in the quarter, and we are now free cash flow positive for the first nine months of 2009.”
