Unisys Corp (UIS) swung to a net profit for the quarter ended Sep. 30, 2014. The company has made a net profit of $47.80 million, or $ 0.95 a share in the quarter, against a net loss of $7.60 million, or $.26 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $65.70 million, or $1.30 a share compared with $15 million or $0.25 a share, a year ago.
Revenue during the quarter grew 11.41 percent to $882.50 million from $792.10 million in the previous year period. Gross margin for the quarter expanded 497 basis points over the previous year period to 26.62 percent. Total expenses were 91.32 percent of quarterly revenues, down from 96.97 percent for the same period last year. This has led to an improvement of 565 basis points in operating margin to 8.68 percent.
Operating income for the quarter was $76.60 million, compared with $24 million in the previous year period.
"This was a strong quarter for Unisys," said Unisys Chairman and CEO Ed Coleman. "We grew our revenue double digits, with growth in both our services and technology businesses, and more than tripled pretax profit. In our services business, we grew both our systems integration and IT outsourcing revenue. Our technology results benefited from significantly higher sales of our flagship ClearPath enterprise servers. Year to date through the first nine months of 2014, our technology revenue is up 2 percent year over year."
Cash Flow
Unisys Corp has generated cash of $15.90 million from operating activities during the nine month period, down 65.58 percent or $30.30 million, when compared with the last year period.
The company has spent $129.10 million cash to meet investing activities during the nine month period as against cash outgo of $109.50 million in the last year period. It has incurred net capital expenditure of $143.90 million on net basis during the nine month period, up 39.71 percent or $40.90 million from year ago period.
The company has spent $30.60 million cash to carry out financing activities during the nine month period as against cash outgo of $19.10 million in the last year period. It has raised net of $32.60 million by selling common stocks.
Cash and cash equivalents stood at $476.50 million as on Sep. 30, 2014, down 14.28 percent or $79.40 million from $555.90 million on Sep. 30, 2013.
Working Capital
Unisys Corp has witnessed a decline in the working capital over the last year. It stood at $343.90 million as at Sep. 30, 2014, down 16.45 percent or $67.70 million from $411.60 million on Sep. 30, 2013. Current ratio was at 1.38 as on Sep. 30, 2014, down from 1.45 on Sep. 30, 2013.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding was almost stable at 8 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 33 days for the quarter, when compared with the previous year period.
Debt Level
Unisys Corp has witnessed an increase in total debt over the last one year. It stood at $215.10 million as on Sep. 30, 2014, up 2.38 percent or $5 million from $210.10 million on Sep. 30, 2013.
Total debt was 9.44 percent of total assets as on Sep. 30, 2014, compared with 9.39 percent on Sep. 30, 2013. Debt to equity ratio was at .14 as on Sep. 30, 2013. Interest coverage ratio improved to 33.30 for the quarter from 10 for the same period last year.
