Unisys hits other targets while earnings fall

Information technology giant Unisys issued its full-year numbers on Friday, reporting that it generated fourth-quarter total revenue of $747m, representing growth of 3.5% year-on-year.

The New York and London-listed company said it exceeded, or at least achieved, its guidance for all guidance metrics.

It also reported accelerated contract signings for the year, with annual contract value up 22% year-on-year and total contract value up 8%.

Services backlog was up 10.3%.

The company also achieved revenue growth in the fourth quarter of 3.5%.

In addition, Unisys said it saw “strong” contract signings during the quarter, supported by significant new business signings - which included a new logo and new scope.

New business annual and total contract values were up 168% and 165% respectively in the quarter, and total annual and total contract values were up 115% and 148% respectively.

For the full year, Unisys said its services backlog was up 10.3% year-over-year to $4.3bn - the highest level since year-end 2015.

Its pension deficit also declined $390m to end 2017 at $1.78bn.

Looking at the fourth quarter specifically, operating cash flow was $203m - up $88m relative to $115m in the prior-year quarter.

Adjusted free cash flow reached $204m, up $89m relative to the $115m reported in the previous year.

Earnings were a disappointment, however, with the full-year net loss attributable to common shareholders widening to $64.6m from $47.7m.

Losses per share were also larger, at $1.28 compared to 95 cents in the prior year.

“Our 2017 results are strong and indicate that Unisys is on track with its strategic plan,” said Unisys president and CEO Peter A. Altabef.

“We delivered on our goals for the year, exceeding or achieving guidance on all guidance metrics.”

Altabef said the results represented the second consecutive year of achieving or exceeding full-year guidance since it re-established the process of issuing it two years ago.

“We had a solid fourth quarter, and signings and backlog entering 2018 are strong.

“We have begun the new year focused on ongoing execution of our go-to-market strategy and continued financial discipline.”