Financial Data and Key Metrics Changes - The second quarter revenue was $478 million, an increase of 0.3% year-over-year and 25% in constant currency [20] - Year-to-date total company revenue is $966 million, down 2.7% year-over-year and down 3.5% in constant currency [20] - Second quarter gross profit was $130 million, representing a 27.2% gross margin compared to 24.3% in the prior year period [24] - Non-GAAP operating profit margin was 6.1%, up from 3.4% in the prior year period [27] - The company had a net loss in the second quarter of $12 million, or a diluted loss per share of $0.17, compared to a net loss of $20 million, or negative $0.59 in the second quarter of 2023 [28] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $132 million, a 2.2% decline compared to the prior year period [20] - Cloud Applications and Infrastructure (CA&I) revenue was $134 million, an increase of 1.3% compared to the prior year period [22] - Enterprise Computing Solutions (ECS) revenue was $138 million, an increase of 2.5%, including 3.3% constant currency growth in Specialized Services and Next Generation Compute Solutions [22] - Total company TCV (Total Contract Value) increased 25% sequentially and 19% year-over-year [5] Market Data and Key Metrics Changes - The company exited the quarter with a backlog of $2.8 billion, up 4% year-over-year [23] - New business pipeline with existing clients is up 7% sequentially [8] - The overall pipeline declined 7% quarter-over-quarter, driven by timing of renewals and strong conversion of new logo opportunities [8] Company Strategy and Development Direction - The company is focused on portfolio transformation and initiatives for sales and marketing, which are becoming evident in signings and delivery efficiency [4] - There is a strong emphasis on AI-related consulting and services, with growing demand for AI-enabled solutions [11][12] - The company aims to achieve a non-GAAP operating margin above the midpoint of its guidance range due to improvements in delivery efficiencies and margin expansion [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance ranges for revenue growth and profitability [4] - The company anticipates continued delivery efficiencies and lower legal and environmental payments, which will benefit cash generation [5] - Management highlighted the positive trajectory in new business signings and the quality of the pipeline, indicating strong demand for solutions [8] Other Important Information - The company published its 2023 sustainability report, outlining progress in sustainability commitments [17] - Free cash flow was negative $19 million in the second quarter, attributed to timing of collections [30] - Cash balances were $345 million as of June 30, compared to $388 million at year-end [31] Q&A Session All Questions and Answers Question: Can you discuss the margin improvement and the role of positive mix shift? - Management confirmed that positive mix shift is occurring and is a positive factor for margin improvement, with efficiency in traditional business also contributing [37][38] Question: What is the outlook on environmental and legal costs? - Management indicated that the outlook for a 50% or more drop in environmental and legal costs remains intact, with no significant changes [41][43] Question: Can you share the potential scale of the AI opportunity with the restaurant client? - Management confirmed that the AI project is moving towards production and represents a significant opportunity, although it is still early days [44][45] Question: What percentage of new business signings currently have a Gen AI component? - Management stated that AI is infused throughout the company's solutions, but it is challenging to quantify revenue generated specifically from generative AI [48][50] Question: Can you discuss the cadence of the renewal schedule for next year? - Management indicated that the exact timing of renewals has not been laid out yet, but they expect consistent revenue from license and support [52][54] Question: Can you talk about the gross margin and the proportion of fixed versus variable costs? - Management noted that there are no significant one-time items affecting gross margin in Q2, and improvements are expected to continue [54][56]

About Unisys RELEASE NO.: 0730/9953 UIS-C BLUE BELL, Pa., July 30, 2024 /PRNewswire/ -- Unisys (NYSE: UIS) will be participating in the Deutsche Bank Technology Conference on Wednesday, August 28, 2024, at the Waldorf Astoria Monarch Beach in Dana Point, Calif. Unisys management will be available throughout the day for one-on-one and small group meetings. Investors who would like to schedule a meeting with Unisys should contact their Deutsche Bank representative. Unisys is a global technology solutions comp ...

BLUE BELL, Pa., July 23, 2024 /PRNewswire/ -- Unisys (NYSE: UIS) announced it will release its secondquarter 2024 financial results on Monday, August 5, 2024, after the close of trading on the New York Stock Exchange. Unisys will host a conference call with the financial community on Tuesday, August 6, 2024, at 8 a.m. EDT to discuss the results. The company will offer a live, listen-only webcast of the conference call on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers c ...

BLUE BELL, Pa., June 24, 2024 /PRNewswire/ -- Unisys (NYSE: UIS) has been recognized by Dell Technologies as a 2024 Global Alliances Partner of the Year, receiving two awards for its commitment to delivering innovative solutions to clients worldwide, and for outstanding performance and expansion with new and existing clients. Unisys was recognized as: 2024 Global Alliances Trailblazer Partner of the Year, Global: This award acknowledges Unisys' pioneering efforts in driving technological advancements and pu ...

About Newsweek Newsweek is the modern global digital news organization built around the iconic, over 85-year-old American magazine. Newsweek reaches 100 million people each month with its thought-provoking news, opinion, images, graphics, and video delivered across a dozen print and digital platforms. Headquartered in New York City, Newsweek also publishes international editions in EMEA and Asia. About Unisys Unisys is a global technology solutions company that powers breakthroughs for the world's leading o ...

Monty Rakusen Investment Thesis With the investing world extremely excited about AI-driven stocks, I believe I've found Unisys Corporation (NYSE:UIS) to be a beneficiary of the AI-driven growth story as the company offers what look to me very innovative AI solutions to help customers do business more efficiently. With stable recurring revenues of around $2 billion, I believe eventually the company can be profitable on a GAAP basis due to efficiency gains and lower SGA expenses going forward. Cash flows cont ...

BLUE BELL, Pa., May 28, 2024 /PRNewswire/ -- Unisys (NYSE: UIS) has received two HDI Global Service and Support Awards: "Best Customer Experience" and "Best Service and Support Manager." These awards recognize the company's Digital Workplace Solutions (DWS) team and their strategic approach to optimizing clients' customer experience, as well as Unisys Service Desk Service Manager Gilberto Sanchez for exceeding client expectations and exemplary performance. In 2023, the Help Desk Institute (HDI) recognized U ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 1-8729 UNISYS CORPORATION (Exact name of registrant as specified in its charter) Delaware 38-0387840 (State or other jurisdiction of incorporation or organization) 801 Lakeview Dr ...

Financial Data and Key Metrics Changes - The company reported a total revenue of $488 million, down 5.5% year-over-year and 7.1% in constant currency, primarily due to the expected cadence of license and support (L&S) renewals [81] - Adjusted EBITDA for the first quarter was $65 million, representing an adjusted EBITDA margin of 13.4%, compared to 19% in the prior year period [5] - First quarter adjusted net income was $3 million or $0.04 per share, compared to $35 million or $0.51 per share in the prior year [8] - The company ended the quarter with a backlog of $2.8 billion, roughly flat year-over-year, but down approximately $200 million sequentially [1] Business Line Data and Key Metrics Changes - Ex-L&S revenue grew 4% year-over-year to $395 million, with expectations for acceleration in the second half of the year [108][95] - ECS gross margin was 57.8% in the first quarter, down from 66.7% in the prior year, attributed to lower L&S revenue [3] - CA&I revenue was $129 million, an increase of 2.3%, driven by higher-margin solutions [109] - DWS revenue was $132 million, flat compared to the prior period, with expectations for growth in the second half of the year [82] Market Data and Key Metrics Changes - Total company TCV declined 1% year-over-year, with a 20% decline in Ex-L&S solutions, largely due to renewal timing [84] - The pipeline for Digital Workplace Solutions grew 10% from the fourth quarter, indicating strong client interest [61] - The company signed significant new logo contracts in EMEA and the U.S., indicating a positive market reception [97][86] Company Strategy and Development Direction - The company is focused on improving performance in Ex-L&S solutions and enhancing profitability through operational efficiency [57] - There is an emphasis on expanding market share in a consolidating market by maintaining excellence in field services [62] - The company aims to enhance free cash flow generation by reducing legal and environmental costs, with expectations for declines beginning next year [107][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for revenue growth in the second half of the year, driven by new business signings and project work [95][34] - The company anticipates improving free cash flow conversion as legal and environmental payments decline [96][38] - Management highlighted the importance of new logo signings as a key component for sustaining faster growth [69] Other Important Information - The company has a capital-light strategy, with capital expenditures totaling approximately $20 million in the first quarter [20] - The net leverage ratio was 0.5 times, slightly up from 0.4 times at year-end, indicating strong liquidity [23] - The company expects total company revenue growth of negative 1.5% to positive 1.5% in constant currency for the full year [26] Q&A Session Summary Question: Can you elaborate on the potential magnitude of your plans to reduce environmental and legal costs? - Management indicated that significant legal expenses are expected to tail off after 2024, which will increase remaining cash allowance going forward [12][13] Question: Are you seeing follow-through on heightened L&S volumes? - Management noted a slight increase in L&S revenue this quarter, primarily due to timing, and expressed encouragement regarding consumption trends [14][15] Question: Can you quantify the expected decline in legal and environmental payments? - Management expects a decline of more than half in these expenses over the next couple of years, but did not provide specific quantification [93][122] Question: What are the expectations for gross margins in new businesses? - Management stated that overall Ex-L&S gross margin is expected to improve by 150 to 200 basis points this year, with specific targets for next-gen solutions around 25% gross margin [150][151]

News Release Unisys Announces 1Q24 Results Unisys Reiterates Full-Year Guidance and Builds Momentum in New Logo Signings BLUE BELL, Pa., May 7, 2024 – Unisys Corporation (NYSE: UIS) reported financial results for the first quarter of 2024. "Unisys' first quarter results signal a growing market recognition of the transformation we have achieved within our portfolio of solutions and services, which can be seen in the momentum of our New Logo signings that more than doubled year over year," said Unisys Chair a ...