Unisys Corp. (NYSE: UIS) reported a third-quarter 2012 net loss of $12.4 million, or a loss of 28 cents per diluted share, which included $23.1 million of debt reduction charges and $28.9 million of pension expense.
In the third quarter of 2011, the company reported net income of $78.6 million, or $1.63 per diluted share, which included $6.9 million of pension expense. Excluding debt reduction charges and pension expense, non-GAAP diluted earnings per share(1) in the third quarter of 2012 was 85 cents compared with $1.77 in the third quarter of 2011. On lower pre-tax income, the company reported a third-quarter 2012 income tax provision of $32.7 million compared with $33.4 million in the third quarter of 2011. The third-quarter 2012 tax provision included a charge of $9.2 million related to a change in applicable corporate tax rates in the U.K.
Revenue in the third quarter of 2012 declined 14 percent to $877 million compared with $1.02 billion in the year-ago quarter. Foreign currency fluctuations had a 4 percentage point negative impact on revenue comparisons in the current quarter.
Through the first nine months of 2012, Unisys reported net income of $47.6 million, which included $30.6 million of debt reduction charges and $75.0 million of pension expense. This compared to net income of $26.2 million for the first nine months of 2011, which included $77.6 million of debt reduction charges, $21.3 million of pension expense, and an $8.9 million charge related to the settlement of a non-income tax matter. Excluding these items, non-GAAP net income for the first nine months of 2012 was $165.3 million compared with $143.5 million for the comparable period of 2011. Revenue for the first nine months of 2012 declined 5 percent 2 percent on a constant currency basis(2) over the first nine months of 2011.
“After a strong first half of 2012, we saw softer services demand, particularly for short-term project work, in the third quarter,” said Unisys chairman and CEO Ed Coleman. “The lower services revenue, along with higher pension expense and debt reduction charges, impacted our results. However, we were pleased with margin improvement in our technology business, ongoing cost discipline across our company, continued improvements in service quality, and the early achievement of our 2013 debt reduction goal.
“Year to date, we have improved our profitability from 2011 levels. We are encouraged by reaction to recent product announcements, a growing reputation for service excellence, and a strong pipeline of opportunities,” Coleman said.
Unisys is a worldwide information technology company. For more information, visit www.unisys.com.