In This Article:
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Revenue: $432 million, down 11.4% year over year as reported, and 8.5% in constant currency.
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Excluding License and Support Revenue: $361 million, down 8.5% year over year and 5.5% in constant currency.
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Non-GAAP Operating Margin: 2.8% for the first quarter.
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Gross Profit: $108 million, with a gross margin of 24.9%.
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Adjusted EBITDA: $40 million, with a margin of 9.3%.
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Net Income: Negative $30 million, translating to a diluted loss of $0.42 per share.
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Adjusted Net Loss: $3 million, a diluted loss per share of $0.05.
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Pre-Pension Free Cash Flow: $23 million, up $11 million year over year.
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Cash Balances: $393 million as of March 31st.
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First Quarter New Business TCV: $337 million, up more than 50% sequentially and more than 80% year over year.
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Backlog: $2.9 billion, up 2% sequentially and 4% year over year.
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Digital Workplace Solutions Revenue: $119 million, down 7.5% year over year.
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Cloud Applications and Infrastructure Solutions Revenue: $177 million, down 3.3% year over year.
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Enterprise Computing Solutions Revenue: $119 million, down 11.2% year over year.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Unisys Corp (NYSE:UIS) achieved strong growth in new business total contract value (TCV), driven by sustained momentum in new logos.
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The company expects enhanced delivery and operational efficiencies to provide a path above the midpoint for profitability guidance.
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Unisys Corp (NYSE:UIS) has a significant pipeline of device subscription services (DSS) opportunities, with new contracts signed in the quarter.
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The company launched its first post-quantum cryptography solution, expanding its security portfolio.
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Unisys Corp (NYSE:UIS) was recognized as a leader in attack surface management and achieved titanium partner status with Dell, enhancing its market presence.
Negative Points
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First quarter revenue was down 11.4% year over year, primarily due to Ex-L&S renewal timing.
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The company's non-GAAP operating profit margin decreased to 2.8% from 7.1% in the prior period.
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There is ongoing macroeconomic and geopolitical uncertainty, including tariffs and trade restrictions, affecting client decision-making.
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The company experienced lower discretionary volumes in the Digital Workplace Solutions (DWS) and Cloud Applications & Infrastructure (CA&I) segments.
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Unisys Corp (NYSE:UIS) reported a net income loss of $30 million for the first quarter.
Q & A Highlights
Q: Can you elaborate on the factors driving the Ex-L&S revenue upside, and how much of it is due to improved volumes versus earlier than expected renewals? A: Mike Thomson, CEO and President, explained that the Ex-L&S volume has been consistently increasing due to data usage, repatriation in the market, and AI efforts requiring more data. This platform is a significant data source, leading to increased consumption. Additionally, there have been longer contract extensions, indicating a strong client commitment. The company is confident in the Ex-L&S ramp for the rest of the year, with growth and margin improvements expected as most revenue is embedded in the backlog.