Unisys Thrives On Government Sales - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Unisys Thrives On Government Sales

The hardware and services vendor posted second-quarter gains in revenue and net income, thanks to strong sales to the federal government.

Strong sales of IT products and services to the federal government helped Unisys Corp. achieve moderate sales growth and a jump in earnings for the second quarter.

For the three months ended June 30, revenue grew to $1.43 billion, up 5% from $1.36 billion a year ago, the hardware and services company said Thursday. Net income was $52.5 million, or 16 cents per share, compared with income of $42.2 million, or 13 cents per share, a year earlier--a 23% gain on a per-share basis.

Unisys' growth came during a period that company chairman and CEO Lawrence Wienbach described in a statement as continuing to feature a "tough IT spending environment."

Revenue in the United States increased 12% to $668 million, driven primarily by strong sales to the federal government, according to the company. Unisys isn't alone in enjoying a boost from the public sector. A number of major vendors recently have reported similarly strong growth in government sales as the Bush administration continues to privatize many federal IT operations. Unisys' international sales fell 1% to $757 million, mostly because of weakness in the European and Latin American markets.

Services revenue jumped 12% year over year as Unisys posted double-digit gains in its outsourcing and systems integration businesses. However, the company's technology sales fell 18%. On the hardware side, Unisys saw sales of its Intel-based ES7000 servers increase by double digits, while sales of its Clearpath mainframe systems fell by the same margin.

The company said it expects "modest" revenue growth in the third quarter and remains comfortable with its full-year earnings outlook of 77 to 82 cents per share.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll