Unisys Corporation - Unisys Announces 2Q24 Results
Unisys Continues Strong Momentum in New Business (6) Signings and Reiterates Full-Year Guidance
-- Revenue growth of 0.3% year over year (YoY), a 0.5% increase in constant
currency(1); Excluding License and Support (Ex-L&S)(15) revenue was flat
YoY, a 0.1% increase in constant currency
-- Gross profit margin of 27.2%, an improvement of 290 bps YoY; Ex-L&S
gross profit margin of 18.7%, an increase of 270 bps YoY
-- Operating profit margin of 4.9 %; non-GAAP operating profit(8) margin of
6.1 %
-- New Business Total Contract Value (TCV)(4) increased 64% YoY and 17%
quarter-over-quarter (QoQ) driven by more than doubling of new logo
signings in both YoY and QoQ
Logo - https://mma.prnewswire.com/media/2301438/Unisys_Logo.jpg
"Unisys had another strong quarter of new logo signings, which more than doubled sequentially for the third consecutive quarter," said Unisys Chair and CEO
Unisys Chief Financial Officer
Financial Highlights
Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented except for financial guidance since such a reconciliation is not practicable without unreasonable effort.
(In millions, except numbers presented as 2Q24 2Q23 YTD24 YTD23 percentages) Revenue$478.2 $476.8 $966.0 $993.2 YoY revenue growth 0.3% (2.7)% YoY revenue growth in constant currency 0.5% (3.5)% Ex-L&S revenue$396.1 $396.0 $790.7 $775.5 YoY revenue growth —% 2.0% YoY revenue growth in constant currency 0.1% 1.5% License and Support(14)revenue$82.1 $80.8 $175.3 $217.7 YoY revenue growth 1.6% (19.5)% YoY revenue growth in constant currency 2.1% (21.1)% Gross profit$129.9 $115.8 $265.9 $274.8 Gross profit percent 27.2% 24.3% 27.5% 27.7% Ex-L&S gross profit$74.2 $63.4 $145.4 $115.9 Ex-L&S gross profit percent 18.7% 16.0% 18.4% 14.9% Operating profit$23.6 $0.1 $41.3 $50.0 Operating profit percent 4.9% —% 4.3% 5.0% Non-GAAP operating profit$29.3 $16.3 $63.7 $76.4 Non-GAAP operating profit percent 6.1% 3.4% 6.6% 7.7% Net loss attributable to Unisys ($12.0 ) ($40.0 ) ($161.5 ) ($215.4 ) Corporation Non-GAAP net income (loss) attributable to$11.0 ($6.1 )$13.7 $28.6 Unisys Corporation (10) EBITDA$35.6 $9.2 ($68.6 ) ($108.6 ) Adjusted EBITDA(9)$58.4 $50.3 $123.7 $148.5 Adjusted EBITDA as a percentage of revenue 12.2% 10.5% 12.8% 15.0%
Second Quarter 2024 Results
Revenue growth of 0.3% YoY, a 0.5% increase in constant currency. Ex-L&S revenue was flat YoY, a 0.1% increase in constant currency.
Gross profit margin improved 290 bps YoY and Ex-L&S gross profit margin improved 270 bps YoY primarily driven by delivery improvements and an increase in higher-margin solutions in our New Business signings.
Financial Highlights by Segment
(In millions, except numbers presented as 2Q24 2Q23 YTD24 YTD23 percentages) Digital Workplace Solutions (DWS): Revenue$132.1 $135.0 $264.4 $266.0 YoY revenue growth (2.1)% (0.6)% YoY revenue growth in constant currency (2.2)% (1.1)% Gross profit$21.4 $18.4 $40.4 $34.0 Gross profit percent 16.2% 13.6% 15.3% 12.8% Cloud, Applications & Infrastructure Solutions (CA&I): Revenue$134.3 $132.6 $263.3 $258.6 YoY revenue growth 1.3% 1.8% YoY revenue growth in constant currency 1.3% 1.8% Gross profit$23.9 $22.4 $45.3 $38.8 Gross profit percent 17.8% 16.9% 17.2% 15.0%Enterprise Computing Solutions (ECS): Revenue$137.5 $134.6 $284.5 $322.8 YoY revenue growth 2.2% (11.9)% YoY revenue growth in constant currency 2.5% (13.3)% Gross profit$76.9 $72.8 $161.9 $198.3 Gross profit percent 55.9% 54.1% 56.9% 61.4%
Second Quarter 2024 Segment Results
DWS revenue declined 2.1% YoY, a decline of 2.2% in constant currency, but was better than expected at the beginning of the second quarter, as the decline in discretionary volume was more modest than anticipated. DWS gross profit margin was 16.2%, an increase of 260 bps YoY, reflecting results from delivery modernization and efficiency initiatives as well as higher-margin solutions in our New Business signings.
CA&I revenue increased 1.3% in both YoY and constant currency. CA&I gross profit margin was 17.8%, an increase of 90 bps YoY, primarily driven by labor cost savings initiatives.
ECS revenue increased 2.2% YoY, an increase of 2.5% in constant currency. ECS gross profit margin was 55.9%, an increase of 180 bps YoY. The increase in revenue and gross profit margin was primarily driven by the timing of software license renewals and managed services growth.
Balance Sheet and Cash Flows
(In millions) June 30, 2024 December 31,
2023
Cash and cash equivalents $ $ 387.7
344.9
(In millions) 2Q24 2Q23 YTD24 YTD23
Cash provided by operations $2.7 $42.5 $26.5 $55.3
Free cash flow(11) ($18.5 ) $24.7 ($14.6 ) $17.2
Pre-pension and postretirement free cash ($13.8 ) $39.4 ($2.2 ) $48.3
flow(12)
Adjusted free cash flow(13) ($8.0 ) $68.1 $9.3 $88.2
Free cash flow declined by
Other Key Performance Metrics
YoY QoQ
Change Change*
TCV
Total company 19 % 25 %
Ex-L&S TCV 10 % 35 %
Pipeline(3)
Total company (25) % (7) %
Ex-L&S pipeline (25) % (8) %
* QoQ - quarter over quarter
TCV improvements reported above were primarily impacted by increased New Business TCV of 64% YoY and 17% QoQ, primarily driven by new logo signings more than doubling YoY and QoQ.
Total company and Ex-L&S pipeline declines YoY resulted from strong New Business conversion and timing of the renewal schedule.
Backlog
(2)
was
2024 Financial Guidance
The company reiterates full-year 2024 revenue growth and profitability guidance:
Guidance
Revenue growth in constant currency (1.5)% to 1.5%
Non-GAAP operating profit margin 5.5% to 7.5%
Constant currency revenue guidance implies
(1.7)% to 1.3% revenue growth as reported, based on recent exchange rates, and assumes Ex-L&S full-year revenue growth of 1.5% to 5.0% and L&S revenue of approximately
Conference Call
Unisys will hold a conference call with the financial community on
The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.
A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-877-344-7529 for domestic callers or 1-412-317-0088 for international callers and entering access code 6869066 from two hours after the end of the call until
(1)
Constant currency
– A significant amount of the company's revenue is derived from international operations. As a result, the company's revenue has been and will continue to be affected by changes in the
(2) Backlog – Represents future revenue associated with contracted work, which has not yet been delivered or performed. Although the company believes this revenue will be recognized, it may, for commercial reasons, allow the orders to be canceled, with or without penalty.
(3) Pipeline – Represents qualified prospective sale opportunities for which bids have been submitted or vetted prospective sales opportunities which are being actively pursued. There is no assurance that pipeline will translate into recorded revenue.
(4) Total Contract Value (TCV) – Represents the estimated revenue related to contracts signed in the period without regard for cancellation terms. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts.
(5) Book-to-bill – Represents total contract value booked divided by revenue in a given period.
(6) New Business – Represents expansion and new scope for existing clients and new logo contracts.
(7) Next-Gen Solutions – Includes our Modern Workplace solutions within DWS, Digital Platforms and Applications (DP&A) solutions within CA&I, Specialized Services and Next-Gen Compute (SS&C) solutions within ECS, as well as Micro-Market solutions. The company uses estimated Next-Gen Solutions metrics to provide insight into the company's progress in shifting the revenue mix towards solutions that are generally higher-growth and higher-margin.
(8) Non-GAAP operating profit – This measure excludes pretax pension and postretirement expense and pretax charges in connection with certain legal matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses.
(9)
EBITDA & adjusted EBITDA
–
Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to
(10) Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share – These measures excluded pension and postretirement expense and charges or (credits) in connection with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost-reduction activities and other expenses. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) per share include the current and deferred tax expense and benefits recognized under GAAP for these items.
(11) Free cash flow – Represents cash flow from operations less capital expenditures.
(12) Pre-pension and postretirement free cash flow – Represents free cash flow before pension and postretirement contributions.
(13) Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; certain legal matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other payments.
(14) License and Support (L&S) – Represents software license and related support revenue within the company's ECS segment.
(15) Excluding License and Support (Ex-L&S) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support revenue within the company's ECS segment. The company provides these measures to allow investors to isolate the impact of software license renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company's business outside of these areas.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this release and the accompanying presentation include, but are not limited to, statements made in
Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the
Non-GAAP Information
This release includes certain non-GAAP financial measures that exclude certain items such as postretirement expense; certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company's profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company's ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company's financial performance and liquidity, as well as greater transparency into management's view and assessment of the company's ongoing operating performance.
Non-GAAP financial measures are often provided and utilized by the company's management, analysts, and investors to enhance comparability of year-over-year results and to isolate in some instances the impact of software license renewals, which tend to be lumpy, and related support services in order to evaluate the company's business outside of these areas. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, data and AI, digital workplace, logistics and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for more than 150 years, visit unisys.com and follow us on LinkedIn.
###
RELEASE NO.: 0805/9954
Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of
UIS-Q
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Revenue
Services $ 416.1 $ 417.0 $ 832.9 $ 820.9
Technology 62.1 59.8 133.1 172.3
478.2 476.8 966.0 993.2
Costs and
expenses
Cost of revenue
Services 312.1 323.5 627.0 639.6
Technology 36.2 37.5 73.1 78.8
348.3 361.0 700.1 718.4
Selling, general
and 101.4 110.3 213.6 213.2
administrative
Research and 4.9 5.4 11.0 11.6
development
454.6 476.7 924.7 943.2
Operating income 23.6 0.1 41.3 50.0
Interest expense 7.9 7.5 15.8 15.1
Other (expense), (9.4) (16.7) (151.5) (213.6)
net
Earnings (loss)
before income 6.3 (24.1) (126.0) (178.7)
taxes
Provision for 18.8 15.4 35.8 35.3
income taxes
Consolidated net (12.5) (39.5) (161.8) (214.0)
loss
Net (loss)
income
attributable to (0.5) 0.5 (0.3) 1.4
noncontrolling
interests
Net loss
attributable to $(12.0) $(40.0) $(161.5) $(215.4)
Unisys
Corporation
Loss per share
attributable to
Unisys
Corporation
Basic $(0.17) $(0.59) $(2.34) $(3.16)
Diluted $(0.17) $(0.59) $(2.34) $(3.16)
UNISYS CORPORATION
SEGMENT RESULTS
(Unaudited)
(Millions)
Total DWS CA&I ECS Other
Three Months
Ended June
30, 2024
Revenue $ $ 132.1 $ 134.3 $ 137.5 $
478.2 74.3
Gross profit 27.2 % 16.2 % 17.8 % 55.9 %
percent
Three Months
Ended June
30, 2023
Revenue $ $ 135.0 $ 132.6 $ 134.6 $
476.8 74.6
Gross profit 24.3 % 13.6 % 16.9 % 54.1 %
percent
Total DWS CA&I ECS Other
Six Months
Ended June
30, 2024
Revenue $ $ 264.4 $ 263.3 $ 284.5 $
966.0 153.8
Gross profit 27.5 % 15.3 % 17.2 % 56.9 %
percent
Six Months
Ended June
30, 2023
Revenue $ $ 266.0 $ 258.6 $ 322.8 $
993.2 145.8
Gross profit 27.7 % 12.8 % 15.0 % 61.4 %
percent
UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
June 30, 2024 December31,
2023
Assets
Current assets:
Cash and cash equivalents $ 344.9 $ 387.7
Accounts receivable, net 432.6 454.5
Contract assets 17.4 11.7
Inventories 16.5 15.3
Prepaid expenses and other 96.5 101.8
current assets
Total current assets 907.9 971.0
Properties 395.1 396.4
Less-accumulated depreciation 334.9 332.1
and amortization
Properties, net 60.2 64.3
Outsourcing assets, net 26.1 31.6
Marketable software, net 169.6 166.2
Operating lease right-of-use 38.3 35.4
assets
Prepaid postretirement assets 41.6 38.0
Deferred income taxes 108.9 114.0
Goodwill 287.2 287.4
Intangible assets, net 38.1 42.7
Restricted cash 7.8 9.0
Assets held-for-sale 4.9 4.9
Other long-term assets 177.2 200.9
Total assets $1,867.8 $1,965.4
Total liabilities and deficit
Current liabilities:
Current maturities of $ 7.2 $ 13.0
long-term debt
Accounts payable 150.2 130.9
Deferred revenue 190.4 198.6
Other accrued liabilities 244.4 308.4
Total current liabilities 592.2 650.9
Long-term debt 489.2 491.2
Long-term postretirement 772.3 787.7
liabilities
Long-term deferred revenue 103.7 104.4
Long-term operating lease 29.7 25.6
liabilities
Other long-term liabilities 41.3 44.0
Commitments and contingencies
Total Unisys Corporation (174.1) (151.8)
stockholders' deficit
Noncontrolling interests 13.5 13.4
Total deficit (160.6) (138.4)
Total liabilities and deficit $1,867.8 $1,965.4
UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions)
Six Months Ended
June 30,
2024 2023
Cash flows from operating activities
Consolidated net loss $ (161.8) $ (214.0)
Adjustments to reconcile consolidated net loss
to net cash provided by operating activities:
Foreign currency losses (gains) 12.6 (0.5)
Non-cash interest expense 0.6 0.6
Employee stock compensation 11.4 8.9
Depreciation and amortization of properties 12.1 13.7
Depreciation and amortization of outsourcing 12.6 25.1
assets
Amortization of marketable software 24.2 24.5
Amortization of intangible assets 4.6 4.9
Other non-cash operating activities (1.0) 0.4
Loss on disposal of capital assets — 0.1
Pension and postretirement contributions (12.4) (31.1)
Pension and postretirement expense 159.0 203.8
Deferred income taxes, net 0.1 9.3
Changes in operating assets and liabilities,
excluding the effect of acquisitions:
Receivables, net and contract assets 31.9 71.0
Inventories (1.7) (5.7)
Other assets (13.4) (16.1)
Accounts payable and current liabilities (59.4) (37.6)
Other liabilities 7.1 (2.0)
Net cash provided by operating activities 26.5 55.3
Cash flows from investing activities
Proceeds from foreign exchange forward 1,519.2 1,485.4
contracts
Purchases of foreign exchange forward (1,524.8) (1,470.4)
contracts
Investment in marketable software (25.7) (21.3)
Capital additions of properties (7.3) (11.9)
Capital additions of outsourcing assets (8.1) (4.9)
Other (0.1) (0.4)
Net cash used for investing activities (46.8) (23.5)
Cash flows from financing activities
Payments of long-term debt (10.1) (10.6)
Other (1.8) (0.4)
Net cash used for financing activities (11.9) (11.0)
Effect of exchange rate changes on cash, cash (11.8) 8.7
equivalents and restricted cash
(Decrease) increase in cash, cash equivalents (44.0) 29.5
and restricted cash
Cash, cash equivalents and restricted cash, 396.7 402.7
beginning of period
Cash, cash equivalents and restricted cash, $352.7 $432.2
end of period
UNISYS CORPORATION
RECONCILIATIONSOF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(Millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net loss attributable to $(12.0) $(40.0) $(161.5) $(215.4)
Unisys Corporation
Pension and
postretirement pretax 12.4 10.6 159.0 203.8
expense
tax 0.1 (0.2) 0.2 (0.4)
net of tax 12.3 10.8 158.8 204.2
Certain legal pretax 6.5 8.7 (1.7) 14.4
matters
tax — — (2.8) —
net of tax 6.5 8.7 1.1 14.4
Environmental pretax 0.7 7.5 1.0 17.8
matters
tax — — — —
net of tax 0.7 7.5 1.0 17.8
Cost reduction
and other pretax 3.5 7.2 14.6 7.9
expenses
tax — 0.3 0.3 0.3
net of tax 3.5 6.9 14.3 7.6
Non-GAAP net income (loss)
attributable to Unisys $11.0 $(6.1) $13.7 $28.6
Corporation
Weighted average shares 69,275 68,289 68,990 68,116
(thousands)
Plus incremental shares from
assumed vesting:
Employee 1,636 — 1,952 646
stock plans
Non-GAAP adjusted weighted 70,911 68,289 70,942 68,762
average shares
Diluted loss per share
Net loss attributable to $ $ $ (161.5) $ (215.4)
Unisys Corporation (12.0) (40.0)
Divided by weighted average 69,275 68,289 68,990 68,116
shares
Diluted loss per share $(0.17) $(0.59) $(2.34) $(3.16)
Non-GAAP basis
Non-GAAP net income (loss)
attributable to Unisys $ $ $ $
Corporation for 11.0 (6.1) 13.7 28.6
diluted earnings (loss) per
share
Divided by Non-GAAP adjusted 70,911 68,289 70,942 68,762
weighted average shares
Non-GAAP diluted earnings $0.16 $(0.09) $0.19 $0.42
(loss) per share
UNISYS CORPORATION
RECONCILIATIONSOF GAAP TO NON-GAAP
(Unaudited)
(Millions)
FREE CASH FLOW
Three Months Six Months
Ended Ended
June 30, June 30,
2024 2023 2024 2023
Cash provided by operations $2.7 $42.5 $26.5 $55.3
Additions to marketable software (12.5) (11.0) (25.7) (21.3)
Additions to properties (5.1) (4.6) (7.3) (11.9)
Additions to outsourcing assets (3.6) (2.2) (8.1) (4.9)
Free cash flow (18.5) 24.7 (14.6) 17.2
Pension and postretirement funding 4.7 14.7 12.4 31.1
Pre-pension and postretirement free cash flow (13.8) 39.4 (2.2) 48.3
Certain legal payments 1.2 10.9 2.6 13.0
Environmental matters payments 2.0 5.0 4.4 10.8
Cost reduction and other payments, net 2.6 12.8 4.5 16.1
Adjusted free cash flow $(8.0) $68.1 $9.3 $88.2
UNISYS CORPORATION
RECONCILIATIONSOF GAAP TO NON-GAAP
(Unaudited)
(Millions)
EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net loss
attributable $(12.0) $(40.0) $(161.5) $(215.4)
to Unisys
Corporation
Net (loss)
income
attributable (0.5) 0.5 (0.3) 1.4
to
noncontrolling
interests
Interest
expense, net
of interest
income of
$5.3 , $6.5 , 2.6 1.0 3.9 1.9
$11.9 and
$13.2 ,
respectively
(1)
Provision for 18.8 15.4 35.8 35.3
income taxes
Depreciation 12.3 17.4 24.7 38.8
Amortization 14.4 14.9 28.8 29.4
EBITDA $35.6 $9.2 $(68.6) $(108.6)
Pension and
postretirement $ 12.4 $ 10.6 $ 159.0 $ 203.8
expense
Certain legal 6.5 8.7 (1.7) 14.4
matters(2)
Environmental 0.7 7.5 1.0 17.8
matters(1)
Cost reduction
and other 1.3 4.8 10.0 3.1
expenses(3)
Non-cash share 4.6 4.1 11.1 8.7
based expense
Other (income)
expense, net (2.7) 5.4 12.9 9.3
adjustment(4)
Adjusted $58.4 $50.3 $123.7 $148.5
EBITDA
(1) Included in other (expense), net on the consolidated statements of income (loss). (2) Included in selling, general and administrative expenses and other (expense), net within the consolidated statements of income (loss). For the six months endedJune 30, 2024 , certain legal matters includes a net gain of$14.9 million related to a favorable judgement received in a Brazilian services tax matter. (3) Reduced for depreciation and amortization included above. (4) Other expense, net as reported on the consolidated statements of income (loss) less pension and postretirement expense, interest income and items included in certain legal and environmental matters, cost reduction and other expenses.
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Revenue $ 478.2 $ 476.8 $ 966.0 $ 993.2
Net loss attributable to Unisys
Corporation as a percentage of (2.5) % (8.4) % (16.7) % (21.7) %
revenue
Non-GAAP net income (loss)
attributable to Unisys Corporation 2.3 % (1.3) % 1.4 % 2.9 %
as a
percentage of revenue
Adjusted EBITDA as a percentage of 12.2 % 10.5 % 12.8 % 15.0 %
revenue
UNISYS CORPORATION
RECONCILIATIONSOF GAAP TO NON-GAAP
(Unaudited)
(Millions)
OPERATING PROFIT
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Operating profit $23.6 $0.1 $41.3 $50.0
Certain legal matters(1) 3.1 8.7 10.4 14.4
Cost reduction and other expenses(2) 2.3 7.1 11.3 11.3
Pension and postretirement expense 0.3 0.4 0.7 0.7
(1)
Non-GAAP operating profit $29.3 $16.3 $63.7 $76.4
Revenue $ 478.2 $ 476.8 $ 966.0 $ 993.2
Operating profit percent 4.9 % — % 4.3 % 5.0 %
Non-GAAP operating profit percent 6.1 % 3.4 % 6.6 % 7.7 %
(1) Included in selling, general and administrative on the consolidated statements of income (loss). (2) Included in cost of revenue, selling, general and administrative and research and development on the consolidated statements of income (loss).
EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT
Three Months Six Months
Ended Ended
June 30, June 30,
2024 2023 2024 2023
Revenue $478.2 $476.8 $966.0 $993.2
L&S revenue 82.1 80.8 175.3 217.7
Ex-L&S Non-GAAP revenue $396.1 $396.0 $790.7 $775.5
Gross profit $129.9 $115.8 $265.9 $274.8
L&S gross profit 55.7 52.4 120.5 158.9
Ex-L&S Non-GAAP gross profit $74.2 $63.4 $145.4 $115.9
Gross profit percent 27.2 % 24.3 % 27.5 % 27.7 %
Ex-L&S Non-GAAP gross profit percent 18.7 % 16.0 % 18.4 % 14.9 %
SOURCE
CONTACT: For Investors:
