Unisys Corp. Q3 2009 Earnings Call Transcript

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2009-10-28 08:05:15.0

Tags: Unisys Corp., Call Transcript, Citadel Security Software, Earnings, Sundar, Servers, Hardware, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from [Sundar] - Citadel Securities.

Sundar - Citadel Securities

A few questions; first, Janet, a housekeeping question for you; you talked about the $100 million to $105 million of cash contribution this year. How much have been made to-date and what do you expect for the fourth quarter there?

Janet Haugen

Roughly half of it has been made through September 30 and the $50 million roughly expected in the fourth quarter.

Sundar - Citadel Securities

Seems like this was the best quarter in a long time in the technology business in terms of year-over-year declines, probably in the low single digit levels, do you think you reached an inflection point as far as year-over-year comps are concerned? You did talk about some particular strength in the enterprise server business, especially with the high mix product. How should we look at this going forward? Is this kind of the like the base to build our revenue going forward?

Ed Coleman

I wouldn’t characterize it as an inflection point. I think it was a strong quarter. ClearPath in particular continues to be an important part of our portfolio, an important part of our customer relationships and the value that we bring to the marketplace. So we’ll continue to develop new versions of ClearPath and market that product as we have in the past. Some quarters will be better than others. This happened to be a very good one.

Sundar - Citadel Securities

In terms of margins, clearly that’s kind of bumped up with the mix of fall, but given all the costs that you’ve taken out and assuming a more normalized mix, what should be the kind of right margins to think about in the technology segment?

Ed Coleman

As you know, we don’t give guidance, so we’ll kind of play it quarter-by-quarter, but I think you’re seeing a commitment on the part of the company to continue to be more cost effective and efficient organization, coupled with strong technology capabilities, but also coupled with an improved and better differentiated services portfolio that I think you’re beginning to see the results of all that come together, not only on the technology side, but equally important, if not more important, on the services side and the margin improvement that you’re seeing there.

Sundar - Citadel Securities

Just moving on to the IPSL contract of the 8% sequential growth in backlog, what percent was kind of from the IPSL contract? How much of it was due to that, the order coming being renewed this quarter?

 

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