Unisys Corporation (UIS) saw its loss narrow to $32.70 million, or $0.65 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $39.90 million, or $0.80 a share. On the other hand, adjusted net income for the quarter stood at $16.90 million, or $0.30 a share compared with $5.40 million or $0.11 a share, a year ago. Revenue during the quarter went down marginally by 0.34 percent to $664.50 million from $666.80 million in the previous year period. Gross margin for the quarter expanded 332 basis points over the previous year period to 18.09 percent. Operating margin for the quarter stood at negative 0.41 percent as compared to a negative 4.14 percent for the previous year period.
Operating loss for the quarter was $2.70 million, compared with an operating loss of $27.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $41.90 million compared to $19.60 million in the prior year period. At the same time, adjusted operating margin improved 337 basis points in the quarter to 6.31 percent from 2.94 percent in the last year period.
"Our first-quarter results indicate continued progress executing against our strategic and financial goals, including margin expansion and improvement of revenue trends via our vertical go-to-market strategy,” said Unisys president and chief executive officer Peter Altabef. “We intend to continue our disciplined financial focus over the remainder of the year but are pleased with our strong start in the first quarter. We are also pleased to have enhanced our liquidity position by recently raising $440 million in a senior secured notes offering."
Operating cash flow turns negativeUnisys Corporation has spent $41 million cash to meet operating activities during the quarter as against cash inflow of $25.90 million in the last year period. The company has spent $28.10 million cash to meet investing activities during the quarter as against cash outgo of $39 million in the last year period.
The company has spent $2.80 million cash to carry out financing activities during the quarter as against cash inflow of $158.40 million in the last year period.
Cash and cash equivalents stood at $335.50 million as on Mar. 31, 2017, down 38.73 percent or $212.10 million from $547.60 million on Mar. 31, 2016.
Working capital drops significantly
Unisys Corporation has witnessed a decline in the working capital over the last year. It stood at $19.30 million as at Mar. 31, 2017, down 92.62 percent or $242.20 million from $261.50 million on Mar. 31, 2016. Current ratio was at 1.02 as on Mar. 31, 2017, down from 1.28 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 48 days for the last year period. Days sales outstanding went down to 74 days for the quarter compared with 75 days for the same period last year.
Days inventory outstanding has decreased to 2 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding was almost stable at 35 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Unisys Corporation has recorded a decline in total debt over the last one year. It stood at $301.40 million as on Mar. 31, 2017, down 35.18 percent or $163.60 million from $465 million on Mar. 31, 2016. Total debt was 15.36 percent of total assets as on Mar. 31, 2017, compared with 20.53 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
