Unisys Meets Analysts' Estimates
Apr. 16, 2001
PHILADELPHIA (AP) _ First-quarter net earnings at Unisys Corp. dropped 35 percent, matching the estimates of Wall Street analysts, but cautioned that second-quarter results will fall well short of expectations.
For the three months ended March 31, Unisys earned $69.3 million, or 22 cents a share, compared with $107.4 million, or 34 cents a share.
The results marked the fifth consecutive quarter in which the computer software and equipment company's earnings had declined, a streak likely to remain intact for the second quarter.
In a statement, the company said it was taking ``a cautious view'' of the three months ended June 30 and that its comparable earnings per share would be half that of 2000, when it made 18 cents per share.
The resulting 9 cents per share would be well short of the 25 cents per share analysts were expecting.
Investors responded by pushing shares down 6 percent in after-hours trading after it closed down 5 cents to $14.25 in trading on the New York Stock Exchange.
``As customers look for ways to control costs and trim budgets, they are reducing their spending on leading-edge e-business solutions that require systems integration and consulting expertise,'' said Lawrence A. Weinbach, chairman and chief executive officer. ``In technology, we are seeing weaker sales of enterprise servers across our product lines as some customers defer expenditures on new equipment until economic conditions improve.''
Unisys said revenues for the period were $1.62 billion, up 6 percent from the first quarter of 2000.
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