Final Results
Unisys Corporation
Unisys Achieves High End of Financial Guidance for Fourth-Quarter
2005; Company Reports Strong Growth in Orders and Cash Flow Over Year-Ago
Period; Company Updates Progress on Repositioning Effort
Unisys Corporation (NYSE: UIS) today announced that it had achieved the high end
of its fourth-quarter 2005 financial target range for pre-tax income excluding
pension expense of $50 - $75 million. The company also announced strong growth
in orders and cash flow over the prior-year quarter, and good progress in
executing against the repositioning plan it outlined in October.
Unisys reported a fourth-quarter 2005 net loss of $31.1 million, or 9 cents per
share, compared with a fourth-quarter 2004 net loss of $34.9 million, or 10
cents per share. The fourth-quarter 2005 results include a tax provision of
$58.3 million as compared to a tax benefit of $55.0 million in the
fourth-quarter of 2004. The fourth-quarter 2005 results also include pre-tax
pension expense of $44.3 million, or 11 cents per share, compared with pre-tax
pension expense of $23.1 million, or 5 cents per share, in the year-ago quarter.
Excluding pension expense, fourth-quarter 2005 net income was $8.1 million, or 2
cents per share, compared with a net loss of $19.2 million, or a loss of 5 cents
per share, in the fourth-quarter of 2004.
The fourth-quarter 2004 net loss included the following significant items:
-- a pre-tax, non-cash asset impairment charge of $125.6 million, or 26
cents per share, to write off contract-related capitalized assets
associated with a challenging outsourcing operation; and
-- a tax benefit of $28.8 million, or 9 cents per share, principally due to
favorable tax settlements.
On a pre-tax basis excluding pension expense, fourth-quarter 2005 pre-tax income
was $71.5 million, which was at the high end of the company's targeted range of
$50 - $75 million. This compared to a pre-tax loss of $66.8 million in the
fourth-quarter of 2004.
Revenue for the fourth-quarter of 2005 increased 3% to $1.57 billion from $1.52
billion in the year-ago quarter. Currency had a 2 percentage-point negative
impact on the company's revenue in the fourth-quarter, reflecting a stronger
U.S. dollar against most major currencies worldwide.
For the full year of 2005, Unisys reported a net loss of $1.73 billion, or $5.09
per share, compared to full-year 2004 net income of $38.6 million, or 11 cents
per diluted share. The full-year 2005 results included pre-tax pension expense
of $181.1 million, or 47 cents per share, compared with pre-tax pension expense
of $93.6 million, or 19 cents per share, in 2004. Excluding the impact of
pension expense in both periods, 2005 net loss was $1.57 billion, or $4.62 per
share, compared with 2004 net income of $102.2 million, or 30 cents per share.
The 2005 net loss included the following items:
-- an increase in the valuation allowance of $1.57 billion, or $4.62 per
share, related to the company's net deferred tax assets;
-- a pre-tax charge of $10.7 million, or 2 cents per share, related to a
cash tender for the company's 8 1/8% notes due 2006.
Significant items included in the 2004 net income include:
-- the asset impairment pre-tax charge of $125.6 million, or 26 cents per
share;
-- a pre-tax cost reduction charge of $82.0 million, or 18 cents per share;
-- a tax benefit of $97.0 million, or 29 cents per share, related to
favorable tax settlements.
Revenue for the full-year of 2005 declined 1% to $5.76 billion from revenue of
$5.82 billion in 2004. Currency had a 1 percentage-point positive impact on the
company's revenue for the full year of 2005.
Comments from President and CEO Joseph W. McGrath
'Unisys employees turned in a solid performance this quarter,' said Joseph W.
McGrath, Unisys president and chief executive officer. 'We achieved our
financial objectives and showed strong improvement in operating profitability
and free cash flow over the year-ago quarter. Orders also showed double-digit
growth over the year-ago quarter, as we closed a number of significant services
and technology contracts during the quarter.'
'Equally important, we are making good progress in executing against the
repositioning plan that we announced in October,' McGrath said. 'The plan is
intended to tightly focus Unisys on large, high-growth areas of the market and
drive order and revenue growth through enhanced sales and marketing programs. As
part of the repositioning effort, we plan to divest non-core businesses, reduce
our cost base to reflect our more focused business model, and reduce our global
headcount by about 10% over the next year.'
'While we have much more work to do, we have already taken several positive
steps toward executing against our new, more focused business model,' McGrath
said. 'As we implement more actions going forward, we look for these efforts to
enhance our margins and profitability.'
During the fourth-quarter the company:
-- Began the process of pooling and training its global services delivery
workforce around the company's focused areas of growth - outsourcing,
open source/Linux, Microsoft solutions, security, and real-time
ClearPath and ES7000 infrastructure solutions; the new 'integrated
competency' organization was launched in January;
-- Identified potential non-core areas for divestiture and began
exploratory discussions with interested parties on some of the
divestiture candidates;
-- Identified areas where the company expects to make headcount reductions,
which are expected to begin as funding from the divestiture program
becomes available;
-- Continued to enhance its sales and marketing efforts by naming new
global industry sales leaders, in addition to the geographic and
technology sales leadership added in the third quarter; focusing sales
efforts on increasing business with the company's top 500 accounts and
top 10 countries worldwide; and announcing new compensation programs,
starting in 2006, designed to drive greater cross-business and
cross-portfolio sales to selected named accounts.
The company also announced earlier this week that it had reached agreement with
its equity partners to restructure its joint venture check processing operation,
iPSL, in the United Kingdom. Under the new agreement Unisys will continue to
process checks for its partner banks in the U.K. but at new tariff arrangements
that are expected to result in an increase in revenue to Unisys of approximately
$150 million over the 2006-2010 timeframe. The new agreement is expected to
significantly improve the financial results of the iPSL operation in 2006 versus
2005.
Fourth-Quarter Company Results
The company reported double-digit growth in overall orders in the
fourth-quarter. Services orders showed strong double-digit gains in the quarter,
reflecting substantial order gains in outsourcing, partially offset by order
declines in systems integration and consulting. Technology orders showed
single-digit gains in the quarter, driven by order gains for ClearPath and
ES7000 enterprise servers.
Significant contracts signed in the quarter included:
-- Transportation Security Administration. A bridge contract from the U.S.
Transportation Security Administration (TSA) to continue providing
managed services to TSA and the Department of Homeland Security; the
contract is for a one-year base period, with an estimated value of about
$308 million, and two additional one-year options, with the total
ceiling value of the entire three-year period estimated at $750 million;
-- Capgemini/Metropolitan Police Service. The U.K.'s Metropolitan Police
Service awarded Capgemini U.K. a seven-year, approximately 350 million
pound ($620 million) contract to provide a range of IT services; under
this contract, Unisys was awarded a significant subcontract to provide
applications management and support, some data center services, and
desktop support;
-- Major European Financial Institution. A contract valued at over $70
million from a major European financial institution for new ClearPath
software, hardware, and multi-year support services for running the
client's retail and mortgage operations;
-- Countrywide Financial. A significant three-year contract extension from
Countrywide Financial Corporation, a leading provider of diversified
financial services, for Unisys to continue providing outsourced
management and support services for more than 80,000 devices used by
more than 30,000 Countrywide employees throughout the United States; the
contract extension continues the company's three-year relationship with
Countrywide Financial;
-- Bavarian Ministry of Justice. A significant two-year contract extension
from the Ministry of Justice in Bavaria, the largest state in Germany,
under which Unisys will continue to provide a range of infrastructure
managed services to help the ministry modernize and manage its IT
infrastructure; Unisys has been providing services to the Ministry of
Justice since 2002;
-- Land Transport New Zealand. A significant seven-year outsourcing
contract with Land Transport New Zealand under which Unisys will provide
infrastructure and IT management services for the Landata and Drivers
License Register systems, which contain comprehensive vehicle and driver
information for the country of New Zealand; the contract continues
Unisys 13-year relationship with the client.
Revenue in the U.S. grew 4% in the quarter to $689 million. Revenue in
international markets increased 3% in the quarter to $881 million.
The company's gross profit margin and operating profit margin in the quarter
were 24.1% and 2.3%, respectively, compared with 17.2% and (5.2%) in the
fourth-quarter of 2004. The year-over-year margin improvement was driven by
higher technology revenue, partially offset by higher pension expense and
reflecting the year-ago asset impairment charge. Excluding pension expense in
both periods but including the fourth-quarter 2004 asset impairment charge,
overall gross profit margin and operating profit margin for the fourth-quarter
of 2005 were 26.0% and 5.2%, respectively, compared with 18.3% and (3.6%) in the
fourth-quarter of 2004.
Fourth-Quarter Business Segment Results
Customer revenue in the company's services segment increased 1% in the
fourth-quarter of 2005 compared with the year-ago period. The company saw mid
single-digit growth in outsourcing and infrastructure services, which was
partially offset by a double-digit revenue decline in core maintenance and a low
single-digit decline in systems integration and consulting revenue. On a
reported basis, gross profit margin in the services business improved to 13.6%
from 6.2% a year ago, while the services operating margin improved to (2.0%)
compared with (9.4%) a year ago. The year-ago services margins reflected the
asset impairment charge discussed above. Excluding the impact of pension expense
in both periods but including the fourth-quarter 2004 asset impairment charge,
services gross profit margin improved to 16.0% from 7.5% a year ago, while
services operating margin improved to 0.9% compared with (7.8%) a year ago.
Customer revenue in the company's technology segment increased 11% in the
fourth-quarter driven primarily by higher sales of enterprise servers. On a
reported basis, technology gross profit margin improved to 56.2% from 54.2% a
year ago, and technology operating margin improved to 16.7% from 12.0% a year
ago. Excluding the impact of pension expense in both periods, the technology
gross profit margin increased to 56.5% in the fourth-quarter of 2005 from 54.3%
in the year-ago quarter and the technology operating margin increased to 18.7%
compared with 12.8% in the year-ago period. The technology margin increases in
the quarter reflected higher sales and margin in enterprise servers and
specialized technology.
Cash Flow Results
Unisys generated $260 million of cash from operations in the quarter compared
with cash flow from operations of $227 million in the year-ago quarter. Capital
expenditures in the fourth-quarter of 2005 were $87 million, including $60
million invested in revenue-generating projects. This compared to capital
expenditures of $123 million in the year-ago quarter, including $83 million in
revenue-generating projects. After deducting for capital expenditures, Unisys
generated $172 million of free cash flow in the quarter compared with $104
million in the fourth-quarter of 2004. Unisys ended 2005 with $643 million of
cash on hand.
Conference Call
Unisys will hold a conference call today at 8:15 a.m. Eastern Time to discuss
its results. The listen-only Webcast, as well as the accompanying presentation
materials, can be accessed via a link on the Unisys Investor Web site at
www.unisys.com/investor. Following the call, an audio replay of the Webcast, and
accompanying presentation materials, can be accessed through the same link.
About Unisys
Unisys is a worldwide technology services and solutions company. Our consultants
apply Unisys expertise in consulting, systems integration, outsourcing,
infrastructure, and server technology to help our clients achieve secure
business operations. We build more secure organizations by creating visibility
into clients' business operations. Leveraging Unisys 3D Visible Enterprise, we
make visible the impact of their decisions--ahead of investments, opportunities
and risks. For more information, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not limited to,
any projections of earnings, revenues, contract values or other financial items;
any statements of the company's plans, strategies or objectives for future
operations; statements regarding future economic conditions or performance; and
any statements of belief or expectation. All forward-looking statements rely on
assumptions and are subject to various risks and uncertainties that could cause
actual results to differ materially from expectations. In particular, the
company's ability to divest non-core businesses and to use the proceeds as
planned is dependent upon the market for these businesses and on the company's
ability to sell them for an acceptable price. As a result, the company may not
implement the planned headcount reductions as quickly or as fully as currently
planned. Statements in this release regarding the expected effects of the
company's focused investment and sales and marketing strategies are based on
various assumptions, including assumptions regarding market segment growth,
client demand and the proper skill set of and training for sales and marketing
management and personnel, all of which are subject to change. Statements in this
release regarding the revenue increase anticipated from the new iPSL tariff
arrangements are based on assumptions regarding iPSL processing volumes and
costs over the 2006-2010 timeframe. Because these volumes and costs could
change, the amount of anticipated revenue is not guaranteed. In addition,
because iPSL is paid by its customers in British pounds, the U.S. dollar amount
of revenue recognized by Unisys is subject to currency exchange rate
fluctuations. Statements in this release regarding contract values are based
upon various assumptions, which are subject to change, including the projected
volume of products and services to be provided by Unisys, the contracts
continuing for their full term, and for contracts with governmental entities,
the availability of appropriated funds. Accordingly, the contract values are not
guaranteed. Other risks and uncertainties that could affect the company's future
results include general economic and business conditions; the effects of
aggressive competition in the information services and technology markets on the
company's revenues, pricing and margins and on the competitiveness of its
product and services offerings; the level of demand for the company's products
and services and the company's ability to anticipate and respond to changes in
technology and customer preferences; the company's ability to grow outsourcing
and infrastructure services and its ability to effectively and timely complete
the related solutions implementations, client transitions to the new environment
and work force and facilities rationalizations; the company's ability to
effectively address its challenging outsourcing operations through negotiations
or operationally and to fully recover the associated outsourcing assets; the
company's ability to drive profitable growth in consulting and systems
integration; the level of demand for the company's high-end enterprise servers;
the company's ability to effectively rightsize its cost structure; the risks of
doing business internationally and the potential for infringement claims to be
asserted against the company or its clients. Additional discussion of these and
other factors that could affect Unisys future results is contained in its
periodic filings with the Securities and Exchange Commission. Unisys assumes no
obligation to update any forward-looking statements.
Presentation of Information in this Press Release
This release presents information that excludes pension expense. This financial
measure is considered non-GAAP. Generally, a non-GAAP financial measure is a
numerical measure of a company's performance, financial position, or cash flows
where amounts are either excluded or included not in accordance with generally
accepted accounting principles. A reconciliation of this non-GAAP measure to the
most directly comparable GAAP measure, as well as disclosure of the reasons why
the company uses this measure, is included in the financial information
accompanying this release.
RELEASE NO.: 0126/8614
http://www.unisys.com/about__unisys/news_a_events/01268614.htm
Unisys is a registered trademark of Unisys Corporation. All other brands and
products referenced herein are acknowledged to be trademarks or registered
trademarks of their respective holders.
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Three Months Year
Ended December 31 Ended December 31
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue
Services $1,270.8 $1,253.8 $4,788.5 $4,724.7
Technology 298.7 270.2 970.2 1,096.0
--------- --------- --------- ---------
1,569.5 1,524.0 5,758.7 5,820.7
Costs and expenses
Cost of revenue:
Services 1,081.0 1,119.2 4,161.8 3,940.8
Technology 110.8 142.0 435.5 517.5
--------- --------- --------- ---------
1,191.8 1,261.2 4,597.3 4,458.3
Selling, general and
administrative 269.9 265.1 1,059.9 1,102.9
Research and development 71.2 76.2 263.9 294.3
--------- --------- --------- ---------
1,532.9 1,602.5 5,921.1 5,855.5
--------- --------- --------- ---------
Operating income (loss) 36.6 (78.5) (162.4) (34.8)
Interest expense 19.8 17.6 64.7 69.0
Other income
(expense), net 10.4 6.2 56.2 27.8
--------- --------- --------- ---------
Income (loss) before
income taxes 27.2 (89.9) (170.9) (76.0)
Provision (benefit) for
income taxes 58.3 (55.0) 1,561.0 (114.6)
--------- --------- --------- ---------
Net income (loss) ($31.1) ($34.9) ($1,731.9) $38.6
========= ========= ========= =========
Earnings (loss) per share
Basic ($ .09) ($ .10) ($ 5.09) $.12
========= ========= ========= =========
Diluted ($ .09) ($ .10) ($ 5.09) $.11
========= ========= ========= =========
Shares used in the per share
computations (thousands):
Basic 341,656 336,873 340,216 334,896
========= ========= ========= =========
Diluted 341,656 336,873 340,216 338,217
========= ========= ========= =========
UNISYS CORPORATION
SEGMENT RESULTS
(Millions)
Elimi-
Total nations Services* Technology*
----------- ---------- ----------- -----------
Three Months Ended
December 31, 2005
------------------
Customer revenue $ 1,569.5 $ 1,270.8 $ 298.7
Intersegment ($66.9) 4.5 62.4
----------- ---------- ----------- -----------
Total revenue $ 1,569.5 ($66.9) $ 1,275.3 $ 361.1
=========== ========== =========== ===========
Gross profit percent 24.1% 13.6% 56.2%
=========== =========== ===========
Operating profit
(loss) percent 2.3% (2.0%) 16.7%
=========== =========== ===========
Three Months Ended
December 31, 2004
------------------
Customer revenue $ 1,524.0 $ 1,253.8 $ 270.2
Intersegment ($85.2) 3.6 81.6
----------- ---------- ----------- -----------
Total revenue $ 1,524.0 ($85.2) $ 1,257.4 $ 351.8
=========== ========== =========== ===========
Gross profit percent 17.2% 6.2% 54.2%
=========== =========== ===========
Operating profit
(loss) percent (5.2%) (9.4%) 12.0%
=========== =========== ===========
Year Ended
December 31, 2005
------------------
Customer revenue $ 5,758.7 $ 4,788.5 $ 970.2
Intersegment ($259.6) 18.7 240.9
----------- ---------- ----------- -----------
Total revenue $ 5,758.7 ($259.6) $ 4,807.2 $ 1,211.1
=========== ========== =========== ===========
Gross profit percent 20.2% 12.1% 48.4%
=========== =========== ===========
Operating profit
(loss) percent (2.8%) (4.3%) 4.2%
=========== =========== ===========
Year Ended
December 31, 2004
------------------
Customer revenue $ 5,820.7 $ 4,724.7 $ 1,096.0
Intersegment ($251.8) 18.1 233.7
----------- ---------- ----------- -----------
Total revenue $ 5,820.7 ($251.8) $ 4,742.8 $ 1,329.7
=========== ========== =========== ===========
Gross profit percent 23.4% 14.8% 51.7%
=========== =========== ===========
Operating profit
(loss) percent (0.6%) (1.7%) 10.2%
=========== =========== ===========
* 2004 results exclude charges for cost reductions and related actions
as announced on October 6, 2004
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Millions)
December December
31, 2004 31, 2005
--------- ---------
Assets
Current assets
Cash and cash equivalents $642.5 $660.5
Accounts and notes receivable, net 1,111.5 1,136.8
Inventories
Parts and finished equipment 103.4 93.7
Work in process and materials 90.7 122.4
Deferred income taxes 68.2 291.8
Prepaid expense and other
current assets 137.0 112.4
--------- ---------
Total 2,153.3 2,417.6
--------- ---------
Properties 1,320.8 1,305.5
Less accumulated depreciation
and amortization 934.4 881.4
--------- ---------
Properties, net 386.4 424.1
--------- ---------
Outsourcing assets, net 416.0 431.9
Marketable software, net 327.6 336.8
Investments at equity 207.8 197.1
Prepaid pension cost 66.1 52.5
Deferred income taxes 138.4 1,394.6
Goodwill 192.0 189.9
Other long-term assets 141.3 176.4
--------- ---------
Total $4,028.9 $5,620.9
========= =========
Liabilities and stockholders' equity
Current liabilities
Notes payable $18.1 $1.0
Current maturities of long-term debt 58.8 151.7
Accounts payable 444.6 487.4
Other accrued liabilities 1,293.3 1,382.7
--------- ---------
Total 1,814.8 2,022.8
--------- ---------
Long-term debt 1,049.0 898.4
Accrued pension liabilities 506.9 537.9
Other long-term liabilities 690.8 655.3
Stockholders' equity (deficit)
Common stock 3.4 3.4
Accumulated deficit (2,108.1) (376.2)
Other capital 3,917.0 3,883.8
Accumulated other comprehensive loss (1,844.9) (2,004.5)
--------- ---------
Stockholders' equity (deficit) (32.6) 1,506.5
--------- ---------
Total $4,028.9 $5,620.9
========= =========
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions)
Year Ended
December 31
--------------------
2005 2004
------- -------
Cash flows from operating activities
Net income (loss) ($1,731.9) $38.6
Add (deduct) items to reconcile
net income (loss) to net cash
provided by operating activities:
Equity income (9.2) (16.1)
Depreciation and amortization of properties 120.7 136.5
Depreciation and amortization of
outsourcing assets 128.8 123.3
Amortization of marketable software 124.7 134.2
Impairment charge related to
outsourcing assets 125.6
Gain on sale of facility (15.8)
Loss on the tender of debt 10.7
Decrease (increase) in deferred
income taxes, net 1,491.2 (41.2)
Decrease (increase) in receivables, net 34.8 (61.8)
Decrease in inventories 20.9 23.0
Decrease in accounts payable and
other accrued liabilities (61.4) (122.1)
Increase in other liabilities 149.4 111.3
Increase in other assets (34.3) (16.2)
Other 53.4 34.7
------- -------
Net cash provided by operating activities 282.0 469.8
------- -------
Cash flows from investing activities
Proceeds from investments 7,726.2 6,026.5
Purchases of investments (7,709.6) (6,054.3)
Investment in marketable software (125.7) (119.6)
Capital additions of properties (112.0) (137.0)
Capital additions of outsourcing assets (143.8) (177.5)
Purchases of businesses (1.5) (19.4)
Proceeds from sales of properties
and businesses 23.4 1.7
------- -------
Net cash used for investing activities (343.0) (479.6)
------- -------
Cash flows from financing activities
Net proceeds from (reduction in)
short-term borrowings 17.2 (20.0)
Proceeds from employee stock plans 12.8 38.8
Payments of long-term debt (509.1) (3.5)
Proceeds from issuance of long-term debt 541.5
------- -------
Net cash provided by financing activities 62.4 15.3
------- -------
Effect of exchange rate changes on cash
and cash equivalents (19.4) 19.1
------- -------
(Decrease) increase in cash
and cash equivalents (18.0) 24.6
Cash and cash equivalents, beginning of
period 660.5 635.9
------- -------
Cash and cash equivalents, end of period $642.5 $660.5
======= =======
Reconciliation of GAAP to Non-GAAP
Financial Information
The preceding release presents information with and without
pension expense. Unisys believes that this information will enhance an
overall understanding of its financial performance due to the
significant change in pension expense from period to period and the
non- operational nature of pension expense. The presentation of
non-GAAP information is not meant to be considered in isolation or as
a substitute for results prepared in accordance with accounting
principles generally accepted in the United States.
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Three Months Ended
December 31, 2005
--------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
--------------------------
Revenue $1,569.5 $1,569.5
Costs and expenses
Cost of revenue 1,191.8 ($30.8) 1,161.0
Selling, general and administrative 269.9 (8.7) 261.2
Research and development 71.2 (4.8) 66.4
--------------------------
1,532.9 (44.3) 1,488.6
--------------------------
Operating income 36.6 44.3 80.9
Interest expense 19.8 19.8
Other income (expense), net 10.4 10.4
--------------------------
Income before income taxes 27.2 44.3 71.5
Provision for income taxes 58.3 5.1 63.4
--------------------------
Net income (loss) ($31.1) $39.2 $8.1
==========================
Earnings (loss) per share ($ .09) $.11 $.02
==========================
Three Months Ended
December 31, 2004
--------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
--------------------------
Revenue $1,524.0 $1,524.0
Costs and expenses
Cost of revenue 1,261.2 ($16.8) 1,244.4
Selling, general and administrative 265.1 (4.2) 260.9
Research and development 76.2 (2.1) 74.1
--------------------------
1,602.5 (23.1) 1,579.4
--------------------------
Operating income (loss) (78.5) 23.1 (55.4)
Interest expense 17.6 17.6
Other income (expense), net 6.2 6.2
--------------------------
Income (loss) before income taxes (89.9) 23.1 (66.8)
Provision (benefit) for income taxes (55.0) 7.4 (47.6)
--------------------------
Net income (loss) ($34.9) $15.7 ($19.2)
==========================
Earnings (loss) per share ($ .10) $.05 ($ .05)
==========================
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
CONSOLIDATED STATEMENTS OF INCOME
(Millions, except per share data)
Year Ended
December 31, 2005
----------------------------
US GAAP Less Without
as Pension Pension
Reported Expense Expense
----------------- ---------
Revenue $5,758.7 $5,758.7
Costs and expenses
Cost of revenue 4,597.3 ($125.8) 4,471.5
Selling, general and administrative 1,059.9 (35.8) 1,024.1
Research and development 263.9 (19.5) 244.4
--------- ------- ---------
5,921.1 (181.1) 5,740.0
--------- ------- ---------
Operating income (loss) (162.4) 181.1 18.7
Interest expense 64.7 64.7
Other income (expense), net 56.2 56.2
--------- ------- ---------
Income (loss) before income taxes (170.9) 181.1 10.2
Provision (benefit) for income taxes 1,561.0 21.7 1,582.7
--------- ------- ---------
Net income (loss) ($1,731.9) $159.4 ($1,572.5)
========= ======= =========
Earnings (loss) per share ($ 5.09) $.47 ($ 4.62)
========= ======= =========
Year Ended
December 31, 2004
----------------------------
US GAAP Less Without
as Pension Pension
Reported Income Income
-------- -------- ---------
Revenue $5,820.7 $5,820.7
Costs and expenses
Cost of revenue 4,458.3 ($67.2) 4,391.1
Selling, general and administrative 1,102.9 (18.3) 1,084.6
Research and development 294.3 (8.1) 286.2
-------- -------- ---------
5,855.5 (93.6) 5,761.9
-------- -------- ---------
Operating income (loss) (34.8) 93.6 58.8
Interest expense 69.0 69.0
Other income (expense), net 27.8 27.8
-------- -------- ---------
Income (loss) before income taxes (76.0) 93.6 17.6
Provision (benefit) for income taxes (114.6) 30.0 (84.6)
-------- -------- ---------
Net income $38.6 $63.6 $102.2
======== ======== =========
Earnings per share $.11 $.19 $.30
======== ======== =========
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS OF OPERATIONS
(Millions)
Three Months Ended
December 31, 2005
---------------------------------
Less Without
As Pension Pension
Reported Expense Expense
--------- --------- ---------
Services Segment
Total revenue $1,275.3 $1,275.3
Gross profit 173.9 ($29.8) 203.7
% of revenue 13.6% 16.0%
Operating income (loss) (25.3) (37.0) 11.7
% of revenue -2.0% 0.9%
Technology Segment
Total revenue 361.1 361.1
Gross profit 202.9 (1.0) 203.9
% of revenue 56.2% 56.5%
Operating income 60.2 (7.3) 67.5
% of revenue 16.7% 18.7%
Total Company
Total revenue 1,569.5 1,569.5
Gross profit 377.7 (30.8) 408.5
% of revenue 24.1% 26.0%
Operating income 36.6 (44.3) 80.9
% of revenue 2.3% 5.2%
Three Months Ended
December 31, 2004
---------------------------------
Less Without
As Pension Pension
Reported Expense Expense
--------- --------- ---------
Services Segment *
Total revenue $1,257.4 $1,257.4
Gross profit 78.2 ($16.4) 94.6
% of revenue 6.2% 7.5%
Operating income (loss) (118.0) (20.1) (97.9)
% of revenue -9.4% -7.8%
Technology Segment *
Total revenue 351.8 351.8
Gross profit 190.6 (0.4) 191.0
% of revenue 54.2% 54.3%
Operating income 42.0 (3.0) 45.0
% of revenue 12.0% 12.8%
Total Company
Total revenue 1,524.0 1,524.0
Gross profit 262.8 (16.8) 279.6
% of revenue 17.2% 18.3%
Operating income (loss) (78.5) (23.1) (55.4)
% of revenue -5.2% -3.6%
* 2004 results exclude charges for cost reductions
and related actions as announced on October 6, 2004
UNISYS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS OF OPERATIONS
(Millions)
Year Ended
December 31, 2005
-----------------------------------
Less Without
As Pension Pension
Reported Expense Expense
--------- --------- ---------
Services Segment
Total revenue $4,807.2 $4,807.2
Gross profit 580.5 ($121.9) 702.4
% of revenue 12.1% 14.6%
Operating income (loss) (207.0) (151.6) (55.4)
% of revenue -4.3% -1.2%
Technology Segment
Total revenue 1,211.1 1,211.1
Gross profit 585.7 (3.9) 589.6
% of revenue 48.4% 48.7%
Operating income 51.0 (29.5) 80.5
% of revenue 4.2% 6.6%
Total Company
Total revenue 5,758.7 5,758.7
Gross profit 1,161.4 (125.8) 1,287.2
% of revenue 20.2% 22.4%
Operating income (loss) (162.4) (181.1) 18.7
% of revenue -2.8% 0.3%
Year Ended
December 31, 2004
-----------------------------------
Less Without
As Pension Pension
Reported Income Income
--------- --------- ---------
Services Segment *
Total revenue $4,742.8 $4,742.8
Gross profit 702.2 ($65.7) 767.9
% of revenue 14.8% 16.2%
Operating income (loss) (82.8) (81.1) (1.7)
% of revenue -1.7% 0.0%
Technology Segment *
Total revenue 1,329.7 1,329.7
Gross profit 686.8 (1.5) 688.3
% of revenue 51.7% 51.8%
Operating income 136.0 (12.5) 148.5
% of revenue 10.2% 11.2%
Total Company
Total revenue 5,820.7 5,820.7
Gross profit 1,362.4 (67.2) 1,429.6
% of revenue 23.4% 24.6%
Operating income (loss) (34.8) (93.6) 58.8
% of revenue -0.6% 1.0%
* 2004 results exclude charges for cost reductions
and related actions as announced on October 6, 2004
CONTACT: Unisys Corporation
Investor Contact:
Jim Kerr, 215-986-5795
Jim.Kerr@unisys.com
or
Media Contacts:
John Schneidawind, 215-986-2472
John.Schneidawind@unisys.com
or
Jacqueline Lewis, 215-986-5204
Jacqueline.Lewis@unisys.com
Wednesday, 15th May 2024
COMPANIES COVERED:
Latest directors dealings
- 13 minutes ago Cranswick
- 18 minutes ago Kenmare Resources (CDI)
- 51 minutes ago ITM Power
- 1 hour ago Wheaton Precious Metals Corp.NPV (CDI)
- 1 hour ago Rathbones Group