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Unisys beats net estimates
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October 14, 1999: 8:14 a.m. ET
Systems integrator posts 60% rise in 3Q EPS; plans realignment
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NEW YORK (CNNfn) - Unisys Corp., the technology systems integrator, beat Wall Street's earnings expectations Thursday, but said it would be realigning its business services to bolster its revenue.
Excluding certain items, third-quarter earnings per share rose 60 percent to 40 cents per diluted share. Analysts polled by First Call Corp. had expected the Blue Bell, Pa.-based company to post a profit of 36 cents per share.
Unisys reported earnings of 25 cents per share in the year-earlier period.
Revenue increased 4 percent to $1.87 billion.
For the nine months ended Sept. 30, Unisys reported net income of $366.3 million, or $1.13 per share, compared with net income of $240.7 million, or 60 cents a share. Revenue rose 8% to $5.58 billion.
"While we are making excellent progress in reducing costs, improving margins, and transforming our balance sheet, we clearly have work to do in accelerating growth at the top line," said chairman and chief executive officer Lawrence Weinbach said in a statement.
Weinbach said revenue came in below plan primarily due to weakness in the company's network services and NT services businesses and the impact of negative foreign currency exchange.
"Our networking business, particularly in the Federal government marketplace, is being impacted by intense competitive pricing pressures and unexpected delays in the startup of certain contracts," he said.
Weinbach said changes being made to the services organization are designed to enhance client relationships by presenting an integrated view of Unisys capabilities to clients worldwide.
The company said it will be announcing more details of its go-to-market realignment within the next month.
Shares of Unisys (UIS) closed down 7/8 to 42-1/4 Wednesday. 
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Unisys
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