Unisys Corporation (UIS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1.20 million, or $ 0.02 a share in the quarter, against a net profit of $1.10 million, or $0.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $38.50 million, or $0.60 a share compared with $79.30 million or $1.58 a share, a year ago. Revenue during the quarter dropped 8.63 percent to $721.70 million from $789.90 million in the previous year period. Gross margin for the quarter expanded 207 basis points over the previous year period to 22.20 percent. Total expenses were 95.08 percent of quarterly revenues, down from 98 percent for the same period last year. This has led to an improvement of 292 basis points in operating margin to 4.92 percent.
Operating income for the quarter was $35.50 million, compared with $15.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $69.90 million compared to $95.50 million in the prior year period. At the same time, adjusted operating margin contracted 240 basis points in the quarter to 9.69 percent from 12.09 percent in the last year period.
"Our 2016 results deliver on our full-year revenue and non-GAAP operating profit margin guidance and exceed our full-year guidance on adjusted free cash flow. They demonstrate a commitment to execution against the goals we set out at the beginning of the year, including improving our cost structure and cash flow," said Unisys President and chief executive officer Peter Altabef. "As we look to the year ahead, we intend to continue our disciplined financial focus, executing on our vertical go-to-market strategy and differentiating our offerings by building leading security into our full solution set."
Operating cash flow improves significantly
Unisys Corp has generated cash of $218.20 million from operating activities during the year, up 18,083.33 percent or $217 million, when compared with the last year. The company has spent $182.20 million cash to meet investing activities during the year as against cash outgo of $177.90 million in the last year.
The company has spent $16.70 million cash to carry out financing activities during the year as against cash inflow of $90.60 million in the last year period.
Cash and cash equivalents stood at $370.60 million as on Dec. 31, 2016, up 1.48 percent or $5.40 million from $365.20 million on Dec. 31, 2015.
Debt comes down marginally
Unisys Corp has recorded a decline in total debt over the last one year. It stood at $300 million as on Dec. 31, 2016, down 3.38 percent or $10.50 million from $310.50 million on Dec. 31, 2015. Total debt was 14.84 percent of total assets as on Dec. 31, 2016, compared with 14.49 percent on Dec. 31, 2015. Interest coverage ratio improved to 4.73 for the quarter from 4.39 for the same period last year.
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