Unisys Corporation (UIS) Bundle
A Brief History of Unisys Corporation
Company Overview
Unisys Corporation is a global information technology company that provides services in various sectors, including cloud computing, cybersecurity, and enterprise computing solutions. As of 2024, Unisys continues to adapt to the rapidly changing technology landscape.
Financial Performance
For the nine months ended September 30, 2024, Unisys reported total revenue of $1,463.0 million, a slight increase of 0.4% compared to $1,457.8 million for the same period in 2023. The revenue breakdown shows U.S. operations generating $627.0 million, down 0.6% from $630.6 million, while international revenue was $836.0 million, an increase of 1.1% from $827.2 million.
In terms of profitability, Unisys recorded a consolidated net loss of $223.4 million, or $3.23 per diluted share, for the nine months ended September 30, 2024, compared to a loss of $265.4 million, or $3.89 per diluted share, in the same period of the previous year. This loss included a goodwill impairment charge of $39.1 million.
Key Financial Metrics
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Revenue | $1,463.0 million | $1,457.8 million |
| Net Loss | $223.4 million | $265.4 million |
| Loss per Share | $3.23 | $3.89 |
| U.S. Revenue | $627.0 million | $630.6 million |
| International Revenue | $836.0 million | $827.2 million |
Cost Management and Operational Changes
Unisys has undertaken various cost-reduction initiatives, resulting in net charges for the nine months ended September 30, 2024, totaling $8.5 million, primarily due to workforce reductions. This included severance costs of $7.9 million, reflecting the company's focus on streamlining operations.
Segment Performance
In the third quarter of 2024, Unisys reported a revenue increase to $497.0 million from $464.6 million in the same quarter of 2023, marking a 7.0% growth. The segment breakdown shows services contributing $414.9 million and technology $82.1 million.
Balance Sheet Overview
As of September 30, 2024, Unisys had total assets of $1,861.6 million, with total liabilities amounting to $2,064.5 million, resulting in a stockholders' deficit of $202.2 million. Cash and cash equivalents stood at $373.7 million, slightly down from $387.7 million at the end of 2023.
Pension and Postretirement Obligations
Unisys reported pension and postretirement expenses of $171.1 million for the nine months ended September 30, 2024, compared to $214.1 million in the same period of 2023. The company also incurred significant pension settlement losses of $132.3 million in 2024.
Future Outlook
Unisys continues to focus on enhancing operational efficiency and adapting to market demands by investing in technology and services that align with current trends in digital transformation and cybersecurity.
A Who Owns Unisys Corporation (UIS)
Major Shareholders
As of 2024, Unisys Corporation (UIS) has a diverse ownership structure with institutional investors holding a significant portion of the shares. The following table details the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 11.5% | Institutional Investor |
| BlackRock, Inc. | 9.8% | Institutional Investor |
| State Street Corporation | 6.3% | Institutional Investor |
| Dimensional Fund Advisors LP | 5.5% | Institutional Investor |
| Wellington Management Group LLP | 4.2% | Institutional Investor |
| Other Institutional Holders | 15.5% | Various |
| Insider Ownership | 1.6% | Management and Board Members |
| Public Float | 45.6% | Retail Investors |
Stock Performance
Unisys Corporation's stock performance has shown volatility over the past year. As of September 30, 2024, the stock price was approximately $7.50 per share, reflecting a year-to-date decline of 15%. The market capitalization of the company stood at around $500 million.
Financial Metrics
The financial condition of Unisys Corporation as of September 30, 2024, is summarized in the following table:
| Metric | Value |
|---|---|
| Total Revenue (9 months ended September 30, 2024) | $1,463.0 million |
| Net Loss (9 months ended September 30, 2024) | $(223.4) million |
| Operating Income (9 months ended September 30, 2024) | $48.8 million |
| Cash and Cash Equivalents (as of September 30, 2024) | $373.7 million |
| Total Assets (as of September 30, 2024) | $1,861.6 million |
| Total Liabilities (as of September 30, 2024) | $2,049.8 million |
| Long-term Debt (as of September 30, 2024) | $496.2 million |
| Weighted Average Shares Outstanding (9 months ended September 30, 2024) | 69,112 thousand |
Debt and Financial Obligations
Unisys Corporation has a significant amount of long-term debt, which is detailed in the financial statements. The company has a 6.875% senior secured note due November 1, 2027, with a face value of $485 million, yielding a total long-term debt of $496.2 million as of September 30, 2024.
Recent Developments
In March 2024, Unisys purchased a group annuity contract for approximately $195 million to transfer projected benefit obligations related to approximately 3,800 retirees, resulting in a pre-tax settlement loss of $132.3 million for the nine months ended September 30, 2024.
The company also reached a settlement with the SEC on October 22, 2024, agreeing to pay a $4 million civil penalty related to prior investigations, which was accrued in earlier financial periods.
Conclusion
The ownership and financial structure of Unisys Corporation highlight a mix of institutional and retail investors, with a challenging financial landscape characterized by recent losses and significant debt obligations.
Unisys Corporation (UIS) Mission Statement
Current Mission Statement
Unisys Corporation aims to provide innovative technology solutions that enable organizations to transform their operations and deliver exceptional customer experiences. The company is committed to leveraging its expertise in cloud computing, digital workplace solutions, and enterprise computing to drive efficiency and enhance security for its clients globally.
Financial Overview
As of September 30, 2024, Unisys reported a net loss of $61.9 million, or $0.89 per diluted share, compared to a loss of $50.0 million, or $0.73 per diluted share, for the same period in 2023. For the nine months ended September 30, 2024, the net loss attributable to Unisys Corporation was $223.4 million, or $3.23 per diluted share.
Revenue and Profitability
For the nine months ended September 30, 2024, Unisys achieved revenue of $1,463.0 million, a slight increase of 0.4% compared to $1,457.8 million in the same period of 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (9 months ended Sept 30, 2024) | Revenue (9 months ended Sept 30, 2023) | Growth (%) |
|---|---|---|---|
| Digital Workplace Solutions (DWS) | $395.3 million | $406.9 million | -2.9% |
| Cloud, Applications & Infrastructure Solutions (CA&I) | $394.8 million | $392.1 million | 0.7% |
| Enterprise Computing Solutions (ECS) | $442.4 million | $445.0 million | -0.6% |
Cost Structure and Expenses
For the nine months ended September 30, 2024, Unisys reported gross profit of $410.9 million, yielding a gross profit margin of 28.1%, up from 25.4% in the prior year. Selling, general, and administrative (SG&A) expenses were $305.5 million, representing 20.9% of revenue. Research and development expenses totaled $17.5 million.
Cash Flow and Liquidity
As of September 30, 2024, Unisys had cash and cash equivalents amounting to $373.7 million, a decrease from $387.7 million at the end of 2023. Cash provided by operations for the nine months was $58.5 million, compared to $51.2 million for the same period in 2023.
Market Position and Strategic Initiatives
Unisys continues to focus on enhancing its service offerings through strategic partnerships and investments in technology. The company has emphasized its commitment to digital transformation and cybersecurity, reflecting the evolving needs of its clientele in an increasingly digital world.
Pension and Postretirement Plans
Unisys has made significant moves regarding its pension obligations, with a group annuity contract purchase in March 2024 costing approximately $195 million, resulting in a pre-tax settlement loss of $132.3 million. The total pension and postretirement liabilities stood at $771.0 million as of September 30, 2024.
Conclusion
The mission of Unisys Corporation reflects its dedication to delivering innovative solutions that empower client organizations. Despite facing challenges, the company continues to adapt and evolve in response to market demands.
How Unisys Corporation (UIS) Works
Business Segments
Unisys Corporation operates primarily through three reportable segments:
- Digital Workplace Solutions (DWS)
- Cloud, Applications & Infrastructure Solutions (CA&I)
- Enterprise Computing Solutions (ECS)
Financial Performance
For the nine months ended September 30, 2024, Unisys reported:
| Segment | Revenue (in millions) | Gross Profit Margin (%) |
|---|---|---|
| Total Segments | $1,232.5 | 31.3% |
| DWS | $395.3 | 15.6% |
| CA&I | $394.8 | 16.9% |
| ECS | $442.4 | 58.0% |
Revenue for the nine months ended September 30, 2024 was $1,463.0 million, an increase of 0.4% compared to $1,457.8 million in the prior year. The gross profit was $410.9 million, with a margin of 28.1%, up from $370.1 million and 25.4%, respectively, in the prior year.
Cash Flow and Liquidity
As of September 30, 2024, Unisys reported:
| Cash and Cash Equivalents (in millions) | Current Assets (in millions) | Total Assets (in millions) |
|---|---|---|
| $373.7 | $947.1 | $1,861.6 |
Cash provided by operations during the nine months ended September 30, 2024 was $58.5 million, compared to $51.2 million in the same period of the prior year. Cash used for investing activities was $54.0 million, up from $46.3 million.
Income Statement Highlights
For the three months ended September 30, 2024, Unisys reported:
| Item | Amount (in millions) |
|---|---|
| Consolidated Net Loss | ($61.9) |
| Loss per Share (diluted) | ($0.89) |
| Provision for Income Taxes | $53.3 |
| Interest Expense | $7.9 |
The consolidated net loss for the nine months ended September 30, 2024 was $223.4 million, or $3.23 per diluted share.
Operating Expenses
For the nine months ended September 30, 2024:
| Expense Type | Amount (in millions) |
|---|---|
| Selling, General and Administrative | $305.5 |
| Research and Development | $17.5 |
| Goodwill Impairment Charge | $39.1 |
Research and development expenses increased to $17.5 million from $15.9 million in the previous year.
Debt and Liabilities
As of September 30, 2024, Unisys reported total liabilities and deficit of $1,861.6 million, with long-term debt totaling $488.5 million.
Stock Activity
During the nine months ended September 30, 2024, Unisys granted restricted stock and stock units with a total fair value of $19.3 million.
Market Position and Strategy
Unisys focuses on enhancing operational efficiency through labor cost savings and modernization initiatives. The company also aims to expand its service offerings and client base within its core segments.
How Unisys Corporation (UIS) Makes Money
Revenue Segments
Unisys Corporation operates primarily through three reportable segments: Digital Workplace Solutions (DWS), Cloud, Applications & Infrastructure Solutions (CA&I), and Enterprise Computing Solutions (ECS). The revenue generation from these segments is as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Revenue (9M 2024) | Revenue (9M 2023) |
|---|---|---|---|---|
| DWS | $130.9 million | $140.9 million | $395.3 million | $406.9 million |
| CA&I | $131.5 million | $133.5 million | $394.8 million | $392.1 million |
| ECS | $157.9 million | $122.2 million | $442.4 million | $445.0 million |
| Total Revenue | $420.3 million | $396.6 million | $1,232.5 million | $1,244.0 million |
Financial Performance Overview
For the nine months ended September 30, 2024, Unisys reported total revenue of $1,463.0 million, representing a slight increase of 0.4% compared to $1,457.8 million in the same period of 2023. The revenue from U.S. operations decreased to $627.0 million from $630.6 million, while international operations increased to $836.0 million from $827.2 million.
Gross Profit and Margins
In terms of profitability, Unisys recorded a gross profit of $410.9 million for the nine months ended September 30, 2024, with a gross profit margin of 28.1%, up from $370.1 million and 25.4% in the prior year. The increase in gross profit was largely due to delivery modernization and labor cost savings initiatives.
| Period | Gross Profit | Gross Profit Margin |
|---|---|---|
| 9M 2024 | $410.9 million | 28.1% |
| 9M 2023 | $370.1 million | 25.4% |
Operating Income and Expenses
Operating income for the nine months ended September 30, 2024, was $48.8 million, compared to $32.9 million in the previous year. Selling, general and administrative expenses decreased to $305.5 million (20.9% of revenue) from $321.3 million (22.0% of revenue).
Key Financial Metrics
| Metric | Value (9M 2024) | Value (9M 2023) |
|---|---|---|
| Operating Income | $48.8 million | $32.9 million |
| Net Loss | $223.4 million | $265.4 million |
| Loss per Share | $3.23 | $3.89 |
| Interest Expense | $23.7 million | $22.9 million |
Pension Obligations and Settlements
Unisys incurred significant pension-related expenses, reporting a pension settlement loss of $132.3 million for the nine months ended September 30, 2024. Total pension and postretirement expense was $171.1 million, compared to $214.1 million in the prior year.
Cash Flow Analysis
Unisys generated $58.5 million in cash from operations during the nine months ended September 30, 2024, an increase from $51.2 million in the same period in 2023. Cash used for investing activities totaled $54.0 million, up from $46.3 million the previous year.
| Cash Flow Component | Value (9M 2024) | Value (9M 2023) |
|---|---|---|
| Cash Provided by Operations | $58.5 million | $51.2 million |
| Cash Used for Investing Activities | $54.0 million | $46.3 million |
| Cash Used for Financing Activities | $13.7 million | $14.1 million |
Debt and Liquidity Position
As of September 30, 2024, Unisys reported total debt of $496.2 million, down from $504.2 million at December 31, 2023. The company had cash and cash equivalents of $373.7 million, compared to $387.7 million at the end of the previous year.
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Article updated on 8 Nov 2024
Resources:
- Unisys Corporation (UIS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Unisys Corporation (UIS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Unisys Corporation (UIS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.