Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Q2 2004 Earnings Presentation
15 slides from Unisys Corporation New's earnings presentation, Jul 15, 2004
Slide 1: 2Q 2004 Financial Release
2Q 2004 Financial Release July 15, 2004 Larry Weinbach Janet Haugen Jack McHale Chairman & CEO CFO IRO & VP, Investor Relations
Slide 2: Disclaimer
Disclaimer Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions
Slide 3: 2Q04 Forecast & Actual
Slide 1 2Q04 Forecast & Actual 2Q03 April 15 July 9 July 15 Actual 2Q04 Estimate 2Q04 Estimate 2Q04 Actual Revenue $1.43B $1.48 - $1.51B $1.38 – $1.39B $1.39B EPS Excluding $.14 $.14 - $.17 $.10 – $.11 $.11 Pension EPS Including $.16 $.09 - $.12 $.05 – $.06 $.06 Pension Please refer to reconciliatio
Slide 4: 2Q04 Financial Highlights
Slide 2 2Q04 Financial Highlights 2Q04 2Q03 % Change Revenue $1,388M $1,425M -3% Operating Margin – Excluding Pension 3.4% 5.5% -210 bp Net Income – Excluding Pension $36M $47M -23% EPS – Excluding Pension 11 cents 14 cents -21% Operating Margin – As Reported 1.6% 6.0% -440 bp Net Income – As Report
Slide 5: 2Q04 Revenue by Business Segment
Slide 3 2Q04 Revenue by Business Segment Revenue: $1,388 Million 2Q04 % Change Customer Services Revenue vs. 2Q03 83% Services $1,159M --- Technology $229M -12% Overall $1,388M -3% Technology 17%
Slide 6: 2Q04 Services Revenue Breakdown
Slide 4 2Q04 Services Revenue Breakdown Customer Revenue: $1,159 Million 2Q04 Core Customer % Change Maint. vs. 2Q03 Revenue 13% Consulting/ Consulting/SI $414M +7% Infrastr. Systems Int. Services 36% Outsourcing $419M -1% 15% Infrastructure $180M -15% Services Core $146M +1% Outsourcing Maintenance
Slide 7: 2Q04 Technology Revenue Breakdown
Slide 5 2Q04 Technology Revenue Breakdown Customer Revenue: $229M Million 2Q04 % Change Customer vs. 2Q03 Specialized Revenue Technology Enterprise $185M -5% Servers 19% Enterprise Specialized $44M -34% Technology Servers 81% Overall $229M -12%
Slide 8: 2Q04 Revenue by Geography
Slide 6 2Q04 Revenue by Geography Revenue: $1,388 Million Americas Pacific 7% 2Q04 % Change Customer Asia vs. 2Q03 Revenue 11% United States United States $634M -5% Europe/ 46% Africa International $754M --- 36%
Slide 9: 2Q04 Expense Trends
Slide 7 2Q04 Expense Trends 2Q04 2Q03 % Change SG&A Expense – As Reported $273M $242M +13% SG&A as % Revenue – As Reported 19.7% 17.0% +2.7 pts SG&A Expense – Excl. Pension $268M $245M +10% SG&A as % Revenue – Excl. Pension 19.3% 17.2% +2.1 pts R&D – As Reported $71M $64M +12% R&D – Excl. Pension $6
Slide 10: 2Q04 Operating Margins
Slide 8 2Q04 Operating Margins Pension Accounting Impact Reported (GAAP) Excluding Pension Accounting 8% 8% 7% 7% 6% 6% 6.0% 5% 5% 5.5% 4% 4% 3% 3% 3.4% 2% 2% 1% 1.6% 1% 0% 0% 2Q03 2Q04 2Q03 2Q04 Please refer to reconciliation of GAAP to non-GAAP financial information available on the Unisys Investo
Slide 11: 2Q04 Services Operating Margins
Slide 9 2Q04 Services Operating Margins Pension Accounting Impact Reported (GAAP) Excluding Pension Accounting 8% 8% 7% 7% 6% 6% 5% 5.5% 5% 5.2% 4% 4% 3% 3% 2% 2% 2.5% 1% 1% 0% 0.7% 0% 2Q03 2Q04 2Q03 2Q04 Please refer to reconciliation of GAAP to non-GAAP financial information available on the Unisy
Slide 12: 2Q04 Technology Operating Margins
Slide 10 2Q04 Technology Operating Margins Pension Accounting Impact Reported (GAAP) Excluding Pension Accounting 8% 8% 7.8% 7% 7% 6% 6% 6.4% 6.7% 5% 5% 5.4% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% 2Q03 2Q04 2Q03 2Q04 Please refer to reconciliation of GAAP to non-GAAP financial information available on the Un
Slide 13: 2Q04 Cash Flow Highlights
Slide 11 2Q04 Cash Flow Highlights 2Q04 2Q03 Cash Flow From Operations $98M $113M Capital Expenditures $104M $100M % Revenue-Generating Cap Ex 64% 77% Free Cash Flow / (Usage) ($6M) $14M Depreciation & Amortization $97M $86M Please refer to reconciliation of GAAP to non-GAAP financial information av
Slide 14: Financial Outlook
Slide 12 Financial Outlook Full Year 2004: • Low single-digit revenue growth from prior-year levels • EPS excluding pension accounting in the 68 to 72 cents range Breakout of third/fourth quarters harder to call due to different technology mix in 2004 vs. 2003 Third Quarter 2004: • Revenue flat from
Slide 15: Questions & Answers
ion Answer Consulting. Systems Integration Outsourcing. infrastructure. Vvviviviv UNISYS ee Imagine ite Done