Unisys Corporation (NYSE: UIS) today provided a preliminary view of
selected second-quarter 2009 financial results. The company currently
expects:
-
Revenue in the $1.09 to $1.14 billion range, which is a decline from
second-quarter 2008 revenue of $1.34 billion. Foreign exchange rates
had an approximately 8 percentage-point negative impact on the
year-over-year revenue comparison;
-
Profit before tax in the $30 to $55 million range compared to a
pre-tax loss of $5.0 million in the year-ago quarter;
-
Approximately $475 million of cash on hand at the end of the quarter,
which includes a benefit of approximately $25 million from favorable
foreign currency translation in the current quarter;
-
A substantial decline in services orders versus a year ago, reflecting
the continued weak demand environment.
As previously announced, Unisys will release its second-quarter 2009
results on Tuesday, July 28 before the opening of trading on the New
York Stock Exchange.
Unisys also announced today that in connection with the exchange offers
and consent solicitations it announced on June 30, 2009, the per share
price at which its common stock will be issued in the exchange offers is
$1.5554. As previously disclosed, this price was calculated based on the
volume-weighted average price of the common stock, as displayed under
the heading "Bloomberg VWAP” on Bloomberg page "UIS US <equity> VWAP”,
in respect of the ten trading day period ending on and including July 8,
2009. In the exchange offers, Unisys is offering to exchange new secured
notes, cash and shares of the company’s common stock for existing senior
notes.
As previously disclosed, tendered notes may not be withdrawn after 5:00
p.m., New York City time, on July 14, 2009, and the exchange offers
expire at midnight, New York City time, on July 28, 2009, in each case,
unless extended.
The terms and conditions of the exchange offers and consent
solicitations are set forth solely in the confidential offering circular
and consent solicitation statement dated June 30, 2009 (the "Offering
Circular”) relating to the exchange offers and the consent solicitations
and the accompanying letter of transmittal and consent (together with
the Offering Circular, the "Offering Documents”). Offering Documents are
being distributed only to holders of senior notes who complete a form
confirming that they are within the category of eligible holders for
these private offers. The exchange offers and consent solicitations are
made only by, and pursuant to, the terms set forth in the Offering
Circular, and the information in this press release is qualified by
reference to the Offering Documents. Subject to applicable law, Unisys
may amend, extend or terminate any of the exchange offers and any of the
consent solicitations.
The exchange offers are being made, and the new secured notes and common
stock are being offered and issued within the United States only to
"qualified institutional buyers” as defined in Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act”), and outside
the United States to non-U.S. investors. The new secured notes and the
common stock being offered have not been registered under the Securities
Act and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
The Company plans to enter into a registration rights agreement pursuant
to which certain holders of the common stock will be granted certain
registration rights. This press release does not constitute a
solicitation of an offer to buy or an offer to sell senior notes, new
secured notes or common stock subject to the exchange offers in any
jurisdiction.
About Unisys
Unisys is a worldwide information technology company. We provide a
portfolio of IT services, software, and technology that solves critical
problems for clients. We specialize in helping clients secure their
operations, increase the efficiency and utilization of their data
centers, enhance support to their end users and constituents, and
modernize their enterprise applications. To provide these services and
solutions, we bring together offerings and capabilities in outsourcing
services, systems integration and consulting services, infrastructure
services, maintenance services, and high-end server technology. With
more than 26,000 employees, Unisys serves commercial organizations and
government agencies throughout the world. For more information, visit www.unisys.com.
Forward-Looking Statements
Any statements contained in this press release that are not historical
facts are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
include, but are not limited to, any statements of the Company’s plans,
strategies or objectives for future operations; statements regarding
future economic conditions or performance; and any statements of belief
or expectation. All forward-looking statements rely on assumptions and
are subject to various risks and uncertainties that could cause actual
results to differ materially from expectations. The company’s
preliminary results announced in this press release are based on
preliminary information about the second quarter of 2009 and are subject
to revision. Although the quarter is now completed, the company is still
in the early stages of its standard financial reporting closing
procedures. Accordingly, as the company completes its normal quarter-end
closing and review processes, actual results could differ materially
from the company’s preliminary view. In addition, there can be no
assurance that the exchange offers and the consent solicitations will be
completed, either because the minimum tender conditions to complete the
transaction may not be satisfied, or otherwise. Factors that could
affect the Company’s future results include: the Company’s ability to
refinance its debt; the economic and business environment; the Company’s
ability to access external credit markets; the Company’s significant
pension obligations; the success of the Company’s turnaround program;
aggressive competition in the information services and technology
marketplace; volatility and rapid technological change in the Company’s
industry; the Company’s ability to retain significant clients; the
Company’s ability to grow outsourcing; the Company’s ability to drive
profitable growth in consulting and systems integration; market demand
for the Company’s high-end enterprise servers and maintenance on these
servers; the risk that the Company’s contracts may not be as profitable
as expected or provide the expected level of revenues and that contracts
with U.S. governmental agencies may be subject to audits, criminal
penalties, sanctions and other expenses and fines; the risk that the
Company may face damage to its reputation or legal liability if its
clients are not satisfied with its services or products; the performance
and capabilities of third parties with whom the Company has commercial
relationships; the risks of doing business internationally; the business
and financial risk in implementing future dispositions or acquisitions;
the potential for infringement claims to be asserted against the Company
or its clients and the possibility that pending litigation could affect
the Company’s results of operations or cash flow. Additional discussion
of these and other factors that could affect Unisys’ future results is
contained in its periodic filings with the Securities and Exchange
Commission. Unisys assumes no obligation to update any forward-looking
statements.
RELEASE NO.: 0713/9004
Unisys is a registered trademark of Unisys Corporation. All other brands
and products referenced herein are acknowledged to be trademarks or
registered trademarks of their respective holders.
