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 BLUE BELL, Pa., Jan. 23 /PRNewswire/ -- Unisys Corporation

(NYSE: UIS) today reported a return to profitability in the fourth quarter despite lower revenues in a weak economy.
 Substantial progress in asset management and debt reduction continued.
 Unisys Chairman and Chief Executive Officer James A. Unruh said, "Our commercial computer business returned to profitability in the quarter. All computer business units exceeded key targets for the quarter with orders in the U.S. showing the strongest gain in five years. And our Paramax Systems subsidiary continued to perform well in the quarter and had an excellent full year. On a corporate-wide basis, strong cash flow from operations of more than $475 million in the quarter raised the total for the year to nearly $900 million.
 "For 1992, the combination of further benefits from a new cost structure and a focused product and service offering have positioned Unisys for profitability in spite of uncertainty about the timing and extent of an economic recovery. Our program to reshape the company is on schedule in terms of both lowering our cost structure in line with market conditions and focusing our strategic product, technology, service and market initiatives," Unruh said.
 For the fourth quarter ended Dec. 31, 1991, Unisys reported net income of $80.5 million. The earnings per common share were 31 cents. In the fourth quarter a year ago, the company reported a net loss of $88.5 million or 74 cents per share. Operating income was $200 million compared to $88.3 million a year ago. Revenue was $2.46 billion compared to $2.93 billion in the year ago quarter. The fourth quarter revenue decline reflects continuing market weakness, lower shipments at the end of product cycles and the sale of Timeplex in June, 1991. In the fourth quarter of 1990, Timeplex revenue was $71 million.
 For the 12 months ended Dec. 31, 1991, the net loss was $1.4 billion, including a special charge of $1.2 billion recorded in the second quarter, on revenue of $8.7 billion. For full year 1990, the net loss was $436.7 million, including a special charge of $181 million, on revenue of $10.1 billion.
 Unisys said total commercial computer orders declined slightly in the quarter compared to a year ago with strong demand in Pacific Rim markets and good improvement in U.S. markets offset by continued weakness in Europe. The gain in U.S. orders was the strongest since the fourth quarter of 1986. Products experiencing the greatest increase in demand included large-scale mainframes and UNIX-based systems. Orders for Paramax Systems, which typically can vary sharply quarter to quarter, declined when compared to a strong quarter one year earlier.
 "While the failure of the economy to rebound is disappointing, we are encouraged by what may be the first signs of strengthening in our U.S. computer business based on fourth quarter orders," Unruh said. "Our strategy has been to create a cost structure that would sustain profitability even in the current weak economic and industry environments. When market conditions improve, we should be well positioned to benefit from the positive impact of revenue growth."
 Unruh said asset management progress continued in the fourth quarter. There were strong accounts receivable collections and inventories were reduced by more than $200 million. The inventory level of slightly more than $1 billion is the lowest level since 1986.
 Debt declined approximately $150 million in the quarter. For the year, Unruh said debt reduction of approximately $450 million and an increase in cash balances of more than $400 million produced a reduction in debt net of cash of more than $850 million against a target of $600 million.
 Unruh said 1991 was "a very good year" in terms of product introduction and progress in implementing the Unisys Integrated Information Environment (IIE). IIE is the Unisys architecture for open network computing involving information hubs, servers and workstations. He said the overall program to streamline the product line and conform it to the IIE requirements was on schedule. The strategic partnership with Intel announced in the quarter to standardize Unisys open systems microproduct lines on the Intel X86 processor architecture is a significant part of the program, Unruh said.
 In 1991, Unisys introduced major information hub products in both its 2200 and A Series mainframe lines which will begin volume shipments in 1992. It also upgraded both its UNIX systems offering for server applications and its workstation offerings in both its CTOS and PW2 lines. IIPS, a new industry-leading line of image-based, high-speed financial document management systems was installed in major financial institutions around the world.
 Unruh said in 1991 Unisys put in place programs to focus resources on helping the large Unisys customer base apply information technology to solve business problems and grow the Unisys share of the information systems budget of that base.
 Unruh said Unisys will continue to aggressively put resources into its specialty of providing mission critical solutions on open networks in high transaction environments. Examples include banking services, a variety of government services, airline reservation and cargo systems and telephone company applications. He said information systems will be increasingly critical to success in these sectors in the 1990s and "we expect our expertise will produce market share growth in the segments we pursue."
 "Our 1992 goals," Unruh said, "are to aggressively pursue improvement in all aspects of our financial performance and to build a solid foundation for revenue growth. We have specific initiatives to better serve our customer base and generate new accounts in selected markets. We will continue to build our solutions and services capabilities as we implement our Integrated Information Environment.
 "As we begin 1992, we do not expect early improvement in general economic conditions or a lessening of competitive pressures in our information systems business. However, we did start the year with a stronger base of business than a year ago and we remain committed to profitability for the year," Unruh said.
 (Millions, except per-share data)
 Periods ended Three Months Year
 Dec. 31 1991 1990 1991 1990
 Net sales $1,697.8 $2,055.6 $5,689.4 $6,819.1
 Service and rentals 764.3 878.3 3,006.7 3,292.2
 Total 2,462.1 2,933.9 8,696.1 10,111.3
 Costs and expenses:
 Cost of net sales 1,088.0 1,401.8 4,163.8 4,558.3
 Cost of service and rentals 474.7 557.3 1,952.9 2,042.1
 Selling, general and
 administrative 553.3 710.0 2,519.4 2,720.4
 Research and development 146.1 176.5 638.9 746.5
 Total 2,262.1 2,845.6 9,275.0 10,067.3
 Operating income (loss) 200.0 88.3 (578.9) 44.0
 Interest expense 92.5 113.7 407.6 446.7
 Other income, net 3.0 (29.7) (301.8) 65.4
 Income (loss) before
 income taxes 110.5 (55.1) (1,288.3) (337.3)
 Estimated income taxes 30.0 33.4 105.0 99.4
 Net income (loss) 80.5 (88.5) (1,393.3) (436.7)
 Dividends on preferred
 shares 30.5 30.5 121.2 114.3
 Income (loss) on common
 shares $50.0 ($119.0)($1,514.5) ($551.0)
 Income (loss) per common
 share (A):
 Primary $0.31 ($0.74) ($9.37) ($3.45)
 Fully diluted $0.31 ($0.74) ($9.37) ($3.45)
 Dividends declared per
 common share --- --- --- $0.50
 (A) Because of accounting rules governing the computation of earnings per share, both primary and fully diluted earnings per common share must be based on the weighted average number of outstanding common shares since the inclusion of additional shares assuming exercise of stock options and conversion of Series A Cumulative Convertible Preferred Stock would be antidilutive. The shares used in the per share computations are as follows (in thousands): for the three months ended Dec. 31, 1991 and 1990, 161,478 and 161,323, respectively; and for the years ended Dec. 31, 1991 and 1990, 161,552 and 159,683, respectively.
 In February 1991, the board of directors of the company suspended the quarterly dividend on the company's cumulative convertible preferred stock. At Dec. 31, 1991, preferred dividends of $94.3 million are in arrears. Accounting rules governing the computation of earnings per share require that dividends on cumulative preferred stock, whether declared or not, be deducted in the earnings per share computation.
 -0- 1/23/92
 /CONTACT: J.P. Hynes of Unisys, 215-986-6948/
 (UIS) CO: Unisys Corporation ST: Pennsylvania IN: CPR SU: ERN

MP -- PH003 -- 2615 01/23/92 08:34 EST
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Date:Jan 23, 1992

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