Unisys disappoints in 3Q; shares tumble

Unisys says drop in technology revenue hurts 3Q performance

Associated Press

NEWS: Unisys Corp. shares tumbled in extended trading Tuesday after the information technology company reported a larger-than-expected fiscal third-quarter loss due to weaker revenue.

DETAILS: The Blue Bell, Pa.-based company said that a 44 percent drop in its technology revenue was its weak spot for the quarter. Unisys' revenue for its much larger services segment fell nearly 4 percent year-over year. The company said technology revenue can vary significantly from quarter to quarter.

NUMBERS: Unisys posted a loss of $11.6 million, or 26 cents per share, for the quarter that ended Sept. 30. That is compared with a loss of $12.4 million, or 28 cents per share, in the same quarter last year. After adjusting for pension expenses and other unusual items, it earned 25 cents per share versus 85 cents per share last year.

Its total revenue fell to $792.1 million from $877.4 million.

Analysts polled by FactSet were anticipating earnings of 42 cents per share on revenue of $854.1 million.

FUTURE: Unisys did not issue a formal forecast but said that it aims to close out the year with a strong fourth quarter. It said it aims to have flat revenue for its technology segment for the year.

STOCK: Shares fell $2.85, nearly 11 percent, to $23.25 after hours following the release of the earnings report. Its stock added 45 cents to close regular trading at $26.10.

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