Shares of Unisys (UIS) have been struggling lately and have lost 8.7% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of ...

Core Insights - Unisys has been recognized as a leader in the 2025 Cognitive & Self-Healing IT Infrastructure Management report by NelsonHall for the fifth consecutive year, highlighting its strengths in AI, server-centric services, and cognitive service desk capabilities [1][2] - The report emphasizes Unisys's commitment to investing in AI capabilities, intellectual property, talent, and reskilling to enhance its cognitive and self-healing IT infrastructure management services [1] Company Strengths - Unisys is focused on delivering tangible results for clients throughout their IT management journey, with an emphasis on innovative cloud offerings that support the transition to AI capabilities and intelligent operations [3][4] - The company provides AI-enabled consulting and advisory services to assist clients in becoming AI-ready enterprises, including a framework for developing and operating AI systems tailored to specific industries [4][7] - Unisys has extensive intellectual property and accelerators that facilitate automation in AI operations, IT operations, hybrid cloud, and self-healing automation [7] - The company has a strong focus on cybersecurity capabilities, including zero trust readiness assessments and threat analysis, to enhance the security of cloud operations [7]

Group 1 - Unisys reported Q1 2025 revenue of $432.1 million, reflecting an 11.4% year-over-year decline [1] - The revenue drop was primarily due to delays in software license renewals in the Enterprise Computing Solutions (ECS) segment [1] - Reduced project activity was noted within the Cloud, Applications & Infrastructure (CA&I) and Digital Workplace Solutions (DWS) segments [1]

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Scalable, advanced cloud AI solutions transform operational efficiency, integration and decision-making BLUE BELL, Pa., May 5, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) has released three new cloud AI solutions under its Cloud, Applications & Infrastructure (CA&I) business unit. These solutions – Cloud AI Foundation, Cloud AI Enablement, and Cloud AI Customer Experience – are engineered to drive operational efficiency, streamline decision-making processes and enable organizations to maximize resources while i ...

Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $29.5 million, or $0.42 per diluted share, compared to a loss of $149.5 million, or $2.18 per diluted share, for the same period in 2024[104][122]. - Revenue for the three months ended March 31, 2025 was $432.1 million, a decrease of 11.4% from $487.8 million in the same period of 2024, primarily due to the timing of software license renewals and lower client volume[105]. - License and Support (L&S) revenue decreased by 23.7% to $71.1 million for the three months ended March 31, 2025, down from $93.2 million in the prior year, mainly driven by the timing of software license renewals[106]. - Excluding License and Support (Ex-L&S) revenue was $361.0 million for the three months ended March 31, 2025, a decrease of 8.5% from $394.6 million in the same period of 2024, attributed to lower client volume[107]. - Gross profit for the three months ended March 31, 2025 was $107.5 million, with a gross profit margin of 24.9%, compared to $136.0 million and 27.9% for the same period in 2024[112]. - Operating profit for the three months ended March 31, 2025 was $5.1 million, down from $17.7 million in the same period of 2024, primarily due to the timing of software license renewals[115]. Revenue and Backlog - Total Contract Value (TCV) metrics are influenced by software license renewals, with fluctuations expected based on timing and terms of renewals[129]. - Backlog represents estimated future revenue under contracted work that has not yet been delivered, with timing of conversion to revenue affected by various factors including contract execution and foreign currency exchange rates[130]. - The company’s international revenue for the three months ended March 31, 2025 was $246.2 million, a decrease of 10.6% from $275.5 million in the same period of 2024, impacted by foreign currency fluctuations[108]. - Total TCV for the three months ended March 31, 2025, was $434 million, an increase of 17% from $370 million in the same period of 2024, primarily driven by new logo signings[132]. - Backlog increased to $2.89 billion as of March 31, 2025, compared to $2.78 billion as of March 31, 2024, reflecting a 4% growth driven by new logo contracts within DWS[133]. Cash Flow and Debt - Cash and cash equivalents at March 31, 2025, were $393.1 million, up from $376.5 million at December 31, 2024[136]. - Cash provided by operations for the three months ended March 31, 2025, was $33.3 million, compared to $23.8 million in the same period of 2024, primarily due to working capital improvement[138]. - Cash used for investing activities was $20.3 million for the three months ended March 31, 2025, compared to $18.8 million in the prior-year period[139]. - Total debt at March 31, 2025, was $494.8 million, slightly up from $493.2 million at December 31, 2024[143]. - The company had no borrowings under its $125 million revolving credit facility as of March 31, 2025, with $82.5 million available net of letters of credit issued[144]. - Cash used for financing activities was $4.0 million for the three months ended March 31, 2025, down from $7.7 million in the same period of 2024[140]. - The company expects to continue meeting all covenants and conditions under its various lending and funding agreements for at least the next 12 months[149]. Pension Contributions - The company estimates future cash contributions to its defined benefit pension plans of approximately $91 million in 2025 and $122 million in 2026[141].

First Quarter Financial Results APRIL 30, 2025 U unisys Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer Disclaimer Forward-Looking Statements This presentation contains for ward-looking statements within the meaning of Section 274 of the Sepurities Adt of 1933, as amended, Section 21E of the Securities Exchange and the Private Securities Litication Reform A-ct of 1995. Unisvs cautions readers that the assumptions forming the base for forward-looking statements include man ...

Financial Data and Key Metrics Changes - First quarter revenue was $432 million, down 11.4% year over year as reported and 8.5% in constant currency, primarily due to license and support renewal timing [24] - First quarter adjusted EBITDA was $40 million, with a margin of 9.3% [32] - First quarter net income was negative $30 million, translating to a diluted loss of $0.42 per share [33] - First quarter pre-pension free cash flow was $23 million, up $11 million year over year [33] Business Line Data and Key Metrics Changes - Digital Workplace Solutions segment revenue declined 7.5% year over year to $119 million, primarily driven by lower field service volumes [26] - Cloud Applications and Infrastructure Solutions revenue declined 3.3% year over year to $177 million, affected by lower volumes with existing clients [27] - Enterprise Computing Solutions revenue was down 11.2% year over year to $119 million, due to license and support renewal timing [28] Market Data and Key Metrics Changes - First quarter new business total contract value (TCV) was $434 million, including $337 million from new business signings, up more than 50% sequentially and more than 80% year over year [9] - Backlog at the end of the first quarter was $2.9 billion, up 2% sequentially and 4% year over year [29] Company Strategy and Development Direction - The company is focused on enhancing free cash flow by optimizing delivery and improving cash conversion efficiency [6] - The ClearPath Forward 02/1950 strategy aims to expand and enhance the ecosystem of software and industry solutions [16] - The company is investing in technology, talent, and innovation to solidify its operating systems at the core of clients' IT operations [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year revenue growth guidance and profitability guidance, despite macroeconomic uncertainties [18][78] - The company expects delayed client decision-making to have a marginal impact on revenue trajectory, but believes its diverse solution portfolio provides stability [19][21] - Management noted that clients are focused on modernizing applications and enhancing security, which supports growth in the security segment [12][13] Other Important Information - The company achieved titanium partner status at Dell, enhancing growth incentives and access to resources [17] - The first quarter gross profit was $108 million, with a gross margin of 24.9% [30] - The company is actively monitoring market conditions to opportunistically expand its debt structure and advance its pension mitigation strategy [39] Q&A Session Summary Question: What is enabling the L and S upside in revenues? - Management indicated that increased consumption and longer contract extensions are driving the upside in license and support revenues [44][46] Question: What types of sequential growth assumptions are needed in ex L and S and L and S? - Management expects increasing growth assumptions every quarter, with significant contracts expected in Q3 and Q4 [50][52] Question: How confident are you in your 2026 targets? - Management remains confident in meeting cash flow expectations and has not seen a decline in pipeline quality despite macro uncertainties [59][60] Question: How is the quality of the backlog assessed? - Management stated that the pipeline is growing and the quality is better aligned to solutions that the company can win, with no need for natural pairing [68][75]

Financial Data and Key Metrics Changes - First quarter revenue was $432 million, down 11.4% year over year as reported and 8.5% in constant currency, primarily due to license and support renewal timing [24][25] - First quarter non-GAAP operating profit margin was 2.8%, compared to 7.1% in the prior period, in line with low single-digit expectations [32] - First quarter net income was negative $30 million, translating to a diluted loss of $0.42 per share [33] Business Line Data and Key Metrics Changes - Digital Workplace Solutions segment revenue declined 7.5% year over year to $119 million, driven by lower field service volumes and discretionary project work [26] - Cloud Applications and Infrastructure Solutions revenue declined 3.3% year over year to $177 million, impacted by lower volumes with existing clients [27] - Enterprise Computing Solutions revenue was down 11.2% year over year to $119 million, primarily due to license and support renewal timing [28] Market Data and Key Metrics Changes - First quarter total contract value was $434 million, including $337 million from new business signings, up more than 50% sequentially and more than 80% year over year [9][29] - Backlog was $2.9 billion, up 2% sequentially and 4% year over year, with double-digit year-over-year backlog growth in Digital Workplace Solutions [29] Company Strategy and Development Direction - The company continues to execute its ClearPath Forward 02/1950 strategy, focusing on expanding its ecosystem and enhancing client relationships [16][77] - Investments in technology, talent, and innovation are aimed at solidifying the company's operating systems at the core of clients' IT operations [16] - The company is actively monitoring market conditions to opportunistically expand its debt structure and advance its pension mitigation strategy [77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue growth guidance and profitability guidance, citing resilience in diverse revenue streams [77] - The company anticipates a sequential ramp in revenue growth throughout the year, particularly in the second half due to renewal timing [48][39] - Management noted that macroeconomic factors are causing some delays in client decision-making but do not significantly impact the overall pipeline and backlog [60][62] Other Important Information - First quarter capital expenditures totaled approximately $20 million, relatively flat year over year [33] - Pre-pension free cash flow was $23 million, up $11 million year over year, while free cash flow was $13 million, more than doubling compared to the previous year [33][34] - The company achieved titanium partner status at Dell, enhancing growth incentives and access to resources [17] Q&A Session Summary Question: What is enabling the L and S upside in revenues? - Management indicated that increased consumption and longer contract extensions are driving the upside in license and support revenues [44][46] Question: What types of sequential growth assumptions are needed in ex L and S and L and S? - Management expects increasing growth assumptions every quarter, with significant contracts expected in Q3 and Q4 [49][51] Question: How confident are you in your 2026 targets? - Management remains confident in meeting cash flow expectations and has not changed its trajectory for 2026 [58] Question: Have you seen any hesitation among customers based on macro uncertainties? - Management acknowledged some delays in contract signing but noted that the pipeline and backlog continue to grow [60][62] Question: Any broader strategic changes since leadership transition? - Management confirmed that the strategic focus remains consistent, emphasizing market awareness, solution distinction, and associate development [68][70]

Financial Data and Key Metrics Changes - First quarter revenue was $432 million, down 11.4% year over year as reported and 8.5% in constant currency, primarily due to license and support (LNS) renewal timing [25][26] - First quarter net income was negative $30 million, translating to a diluted loss of $0.42 per share, while adjusted net loss was $3 million for the quarter, a diluted loss per share of $0.05 [35] - First quarter non-GAAP operating profit margin was 2.8%, compared to 7.1% in the prior period, in line with low single-digit expectations [34] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue declined 7.5% year over year to $119 million, primarily driven by lower field service volumes and discretionary project work [27] - Cloud Applications and Infrastructure Solutions revenue declined 3.3% year over year to $177 million, affected by lower volumes with existing clients [28] - Enterprise Computing Solutions revenue was down 11.2% year over year to $119 million, due to LNS renewal timing [29] Market Data and Key Metrics Changes - First quarter total contract value was $434 million, including $337 million from new business signings, up more than 50% sequentially and more than 80% year over year [9][30] - Backlog at the end of the first quarter was $2.9 billion, up 2% sequentially and 4% year over year [30] - The company expects a growing PC refresh cycle to support field service volumes as clients begin upgrades related to AI and Windows 11 [7] Company Strategy and Development Direction - The company is focused on enhancing free cash flow by optimizing delivery and improving cash conversion efficiency [6] - The ClearPath Forward 02/1950 strategy aims to expand and enhance the ecosystem of Unisys software and industry solutions [17][78] - The company is actively monitoring market conditions to opportunistically expand its debt structure and advance its pension mitigation strategy [21][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year revenue growth guidance and profitability guidance, citing resilience in diverse revenue streams [78] - The company anticipates delayed client decision-making due to macroeconomic uncertainties but believes this will have a marginal impact on overall revenue [21][62] - Management noted that security remains an area of outsized growth within the market, with ongoing enhancements to the security portfolio [13] Other Important Information - First quarter capital expenditures totaled approximately $20 million, relatively flat year over year [35] - The company achieved a strong liquidity position with cash balances increasing to $393 million as of March 31 [36] - The company was elevated to disruptor status in AI services and named a leader in attack surface management by industry analysts [18] Q&A Session Summary Question: What is enabling the L and S upside in revenues? - Management indicated that increased consumption and longer contract extensions are driving the L and S revenue upside, with clients extending contracts from three to five years to seven years [46][48] Question: What types of sequential growth assumptions are needed in ex L and S and L and S? - Management expects increasing growth assumptions every quarter, with Q2 showing a slight uptick and more significant growth anticipated in Q3 and Q4 [51][52] Question: How confident is the company in its 2026 targets? - Management remains confident in meeting cash flow expectations and sees no change in the trajectory for 2026 targets [60] Question: How is the quality of the pipeline and backlog assessed amid macro uncertainties? - Management reported that the pipeline is growing, with no need for natural pairing, and the quality of the pipeline is better aligned to solutions that can be won [72][75]