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UNISYS REPORTS HIGHER THAN EXPECTED FIRST QUARTER RESULTS

 UNISYS REPORTS HIGHER THAN EXPECTED FIRST QUARTER RESULTS
 BLUE BELL, Pa., April 21 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) today reported a net income of $48.3 million for the first quarter ended March 31, 1992, compared with a net loss of $98.2 million in the comparable quarter a year ago.
 Earnings per common share in the quarter was 11 cents compared with a loss of 79 cents per share a year ago.
 Revenue was $2.01 billion compared to $2.06 billion in the year ago quarter. The company said revenue increased slightly over a year ago after eliminating $62 million in first quarter 1991 revenue from its Timeplex subsidiary which was sold effective June 30, 1991.
 Unisys Chairman and Chief Executive Officer James A. Unruh, said, "We are very pleased with a solid first quarter which exceeded plan in all key areas. The results are a clear indication that our turnaround actions and product and marketing programs are on track. Profitability and cash flow improved significantly and order, revenue and gross profit margin trends are improving. In a quarter when we historically use cash, we generated $121 million in cash flow from operations and reduced debt by about $100 million.
 "While we remain very cautious about the timing and scope of a global economic recovery, we may be experiencing some early signs of an improving U.S. market. Revenue and orders were stronger than expected, particularly at Paramax and in the U.S. information systems business," Unruh said.
 Unisys said total orders showed solid growth over a year ago. There was good growth in information systems orders in the United States but continued softness in Europe. U.S. information systems orders increased year over year for the second consecutive quarter. Information systems products registering the strongest gains worldwide for the quarter included large-scale mainframes which are now in the early stage of new product cycles, UNIX-based systems and software products. The new A-11 mainframe with expanded open systems capabilities, introduced in February, has been well received. Orders for Paramax Systems, which typically can vary sharply quarter to quarter, increased substantially.
 Unisys said that operating expenses were at their lowest quarterly level in six years and down 17 percent from a year ago. Interest expense dropped 24 percent on less borrowing and lower rates. Asset management progress continued with receivables down 12 percent from the fourth quarter and down 23 percent from a year ago. Inventories were slightly below the fourth quarter and 33 percent below a year ago. Total debt net of cash declined approximately $100 million to $2.4 billion and the company's cash balance remained at just over $800 million.
 "We continue to take a conservative view of the 1992 economic environment and we will maintain a program of tight cost controls," Unruh said. "Despite the environment, our turnaround momentum continued as the first quarter results were stronger than anticipated. Customer confidence has continued to build and we start the second quarter with a stronger base of business than a year ago. We are optimistic that the financial and operating targets we have set for 1992 will be achieved and that the company will be profitable for the year as previously announced. If the economy performs better than expected, we are positioned to benefit based on both an updated product and services offering and a lower cost structure."
 UNISYS CORPORATION
 Consolidated Statement of Income
 (Unaudited; in millions, except per-share data)
 Three months ended March 31 1992 1991
 Revenue:
 Net sales $1,311.5 $1,293.0
 Service and rentals 698.0 765.9
 Total 2,009.5 2,058.9
 Costs and expenses:
 Cost of net sales 853.2 854.0
 Cost of service and rentals 426.0 477.1
 Selling, general and administrative 472.9 575.9
 Research and development 133.3 151.5
 Total 1,885.4 2,058.5
 Operating income 124.1 0.4
 Interest expense 83.6 109.9
 Other income (expense), net 26.6 28.3
 Income (loss) before income taxes 67.1 (81.2)
 Estimated income taxes 18.8 17.0
 Net income (loss) 48.3 (98.2)
 Dividends on preferred shares 30.4 30.1
 Earnings (loss) on common shares $17.9 ($128.3)
 Earnings (loss) per common share:
 Primary $0.11 ($0.79)
 Fully diluted $0.11 ($0.79)
 UNISYS CORPORATION
 Consolidated Balance Sheet
 (Millions)
 March 31, December 31,
 1992 1991
 (Unaudited) (Audited)
 Assets:
 Current assets:
 Cash and cash equivalents $809.5 $813.6
 Accounts and notes receivable, net 1,568.2 1,777.2
 Inventories
 Finished equipment and supplies 436.6 470.9
 Work in process and raw materials 578.4 553.9
 Other current assets 702.6 680.3
 Total 4,095.3 4,295.9
 Long-term receivables, net 366.5 404.8
 Rental equipment 552.2 601.8
 Less accumulated depreciation 433.9 458.1
 Rental equipment, net 118.3 143.7
 Properties 2,861.2 2,931.3
 Less accumulated depreciation 1,663.3 1,657.6
 Properties, net 1,197.9 1,273.7
 Cost in excess of net assets acquired 1,256.3 1,266.6
 Investments at equity 275.3 272.1
 Other assets 768.1 775.2
 Total $8,077.7 $8,432.0
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable and current maturities of
 long-term debt $1,632.3 $590.8
 Accounts payable and accruals 2,421.9 2,692.6
 Estimated income taxes 358.0 379.6
 Total 4,412.2 3,663.0
 Long-term debt 1,552.1 2,694.6
 Deferred income taxes 60.0 60.0
 Stockholders' equity
 Preferred stock 1,578.0 1,578.0
 Common stock 1.6 1.6
 Accumulated deficit (448.7) (497.0)
 Other capital 922.5 931.8
 Stockholders' equity 2,053.4 2,014.4
 Total $8,077.7 $8,432.0
 UNISYS CORPORATION
 Consolidated Statement of Cash Flows
 (Unaudited; In millions)
 Three months ended March 31 1992 1991
 Cash flows from operating activities:
 Net income (loss) $48.3 ($98.2)
 Add (deduct) items to reconcile net income
 (loss) to net cash provided by (used for)
 operating activities:
 Depreciation 96.8 140.0
 Amortization:
 Marketable software 31.9 38.2
 Cost in excess of net assets acquired 10.3 15.5
 Decrease in long-term receivables, net 37.7 42.1
 Decrease in accounts and notes
 receivables, net 193.5 314.7
 Decrease (increase) in inventories 9.8 (48.7)
 (Increase) in other current assets (22.3) (13.0)
 (Decrease) in accounts payable and other
 accrued liabilities (308.2) (345.2)
 (Decrease) in estimated income taxes (21.6) (22.4)
 Decrease (increase) in other assets 13.2 (24.0)
 Other 31.5 (3.9)
 Net cash provided by (used for)
 operating activities 120.9 (4.9)
 Cash flows from investing activities
 Proceeds from investments 543.2 1,157.9
 Purchase of investments (524.5) (1,158.5)
 Proceeds from sales of properties 16.3 15.0
 Investment in marketable software (19.2) (40.9)
 Capital additions:
 Properties (30.8) (38.5)
 Rental equipment (10.6) (16.0)
 Other 0.4
 Net cash used for investing activities (25.6) (80.6)
 Cash flows from financing activities
 Principal payments of debt (48.5) (25.5)
 Net (payments of) proceeds from
 short-term borrowings (45.6) 168.1
 Dividends paid on preferred shares (26.5)
 Net cash (used for) provided by
 financing activities (94.1) 116.1
 Effect of exchange rate changes on
 cash and cash equivalents (5.3) 0.9
 (Decrease) increase in cash and
 cash equivalents (4.1) 31.5
 Cash and cash equivalents, beginning of period 813.6 403.4
 Cash and cash equivalents, end of period $809.5 $434.9
 /delval/
 -0- 4/21/92 R
 /CONTACT: J. Peter Hynes of Unisys, 215-986-6948/
 (UIS) CO: Unisys Corporation ST: Pennsylvania IN: CPR SU: ERN


MP -- PH005 -- 0576 04/21/92 11:22 EDT
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