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Results – revenue $683.3M (-7.6% Y/Y, $9.7M above estimates), EPS $0.41 ($0.12 above estimates), operating cash flow $87M ($43M higher Y/Y), free cash flow $6M ($106M higher Y/Y), operating profit margin 6.7% (vs. 7.2% Y/Y), Total Contract Value increased 22% Y/Y, Services backlog up 6.7% to $4.1B
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Segments – Services revenue, representing 88% of total revenue, decreased 8.4% to $601M while gross margin in the segment declined 60 bps Y/Y and operating profit declined 220 bps to 2.6%. Services operating profit margin increased sequentially by 50 bps. Technology business revenue, representing 12% of total, remained unchanged on the year ($82M this quarter vs. $83M Q3 2015) while operating profit increased from 20.7% to 32.3%.
- Unisys president and CEO Peter Altabef: "Our year-to-date results show progress toward achieving our goals for 2016 with respect to improving operating profit margin and cash flow generation. Revenues also continue to track in line with our full-year guidance for 2016. We continue to execute on the strategy we began in 2015, and we are beginning to see traction with our vertical go-to-market approach, in addition to bringing a pervasive security focus to all of our offerings."
- Unisys (NYSE:UIS), closing today 6.7% lower, is presently up over 11% after hours.
- Conference call
- Earnings slides
- Press release