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Unisys announces fourth-quarter and full-year 2009 financial results
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Unisys Corporation reported its fourth-quarter 2009 net income as $114.5 million, or $2.64 per diluted share as compared with a fourth-quarter 2008, when it made a net loss of $58.0 million, or a loss of $1.59 per diluted share, which included a $99.0 million pretax cost-reduction charge. Revenue during the quarter declined 5 percent to $1.21 billion compared with $1.28 billion in the year-ago quarter. The company said foreign exchange rates had an approximately 5 percentage-point positive impact on revenue in the quarter.
For the full year 2009, Unisys reported net income of $189.3 million, or $4.75 per diluted share as against a full-year 2008 net loss of $130.1 million, or a loss of $3.62 per diluted share, which included $103.1 million of pretax cost-reduction charges. Revenue in 2009 declined 12 percent to $4.6 billion as compared with $5.23 billion in 2008. Foreign currency fluctuations had an approximately 4 percentage-point negative impact on revenue for the full year.
Unisys said revenue in the United States declined 14 percent to $495 million, while it increased one percent in international markets to $715 million. It reported a fourth-quarter gross profit margin of 28 percent, up from 18.6 percent a year ago. Operating profit margin increased to 10.8 percent compared with an operating loss of 3.7 percent a year ago.
Unisys Chairman and CEO Ed Coleman said,“This was a year of significant progress for Unisys. I am pleased by the way our team rose to the challenge and executed against the priorities of our turnaround program in 2009. We did this work in a difficult economic environment, and we saw the fruits of our efforts in our results over the past three quarters. Our fourth-quarter profitability and cash flow were particularly strong, driven by a more cost-efficient services business and strong sales of ClearPath systems.”
He clarified that the “Unisys turnaround is not complete by any measure”. “In 2010 we will focus on continuing to execute against our priorities of concentrating our resources more effectively, sharpening the value propositions for our offerings, improving the cost efficiency of our labor model, and simplifying our operations to reduce overhead.”
Unisys generated $215 million of cash from operations in the quarter compared with $138 million in the year-ago quarter. Capital expenditures in the fourth quarter of 2009 were $52 million compared with $80 million in the year-ago quarter. After capital expenditures, the company generated $163 million of free cash flow in the quarter compared with free cash flow of $58 million in the fourth quarter of 2008.
For the full year of 2009, Unisys generated $397 million of cash from operations compared with $255 million in the full year of 2008. Capital expenditures for full-year 2009 were $201 million compared with $295 million in 2008. After capital expenditures, Unisys generated $196 million of free cash flow for full-year 2009 compared with $40 million of free cash usage in 2008. At December 31, 2009, Unisys reported $648 million of cash on hand, up from $544 million at year-end 2008.
In a separate statement, Unisys said it had sold its check and cash automation equipment and related US maintenance, printer and direct supply business to a new company formed by Marlin Equity Partners, a California-based private investment firm. The new company has been named Burroughs Payment Systems, Inc. Terms were not disclosed. |
