CNET también está disponible en español.

Ir a español

Don't show this again


Unisys to miss targets, but SAP is upbeat

The IT services company seems to be following the trend toward bleak second-quarter results, but SAP paints a rosy picture.

Unisys and SAP issued contrasting forecasts on their quarterly results Friday, with the IT consulting company projecting it will miss expectations and SAP forecasting higher revenue than expected.

Citing unexpected delays in closing service projects and server contracts late in the quarter, Unisys said its revenue and earnings would be lower than its earlier projections. The company is not alone, though; a number of software companies have warned recently that their quarterly results would come in below expectations.

SAP, however, bucked the trend by reporting its revenue is expected to grow to $2.2 billion for the quarter, which would represent a 9 percent increase compared with the same period last year. Wall Street was expecting SAP to generate $2.16 billion in revenue, according to First Call.

The German software giant, which will formally report its second-quarter results July 22, said its pro forma operating income is expected to be between $520.2 million and $532.6 million, excluding acquisition charges and stock-based compensation. The pro forma estimates include the revenue and profits earned by companies that SAP acquired during the quarter.

The software giant said it decided to release its preliminary results because it wanted to show a contrast with the industry warnings issued in the past week. Shares of SAP climbed 4.82 percent to $39.79 in morning trading.

Unisys, meanwhile, said it expects to report revenue of $1.38 billion to $1.39 billion for the period ending June 30, a decrease of approximately 3 percent compared with the same period last year. The company had previously forecast a revenue increase of roughly 4 percent to 7 percent.

Earnings for the quarter are anticipated to be between 10 cents and 11 cents per share, excluding the effect of the company's pension costs. Previously, the company had projected revenue of 14 cents to 17 cents a share.

"We are disappointed by these results, especially given the track record of financial consistency that Unisys has demonstrated over the past several years," Lawrence Weinbach, Unisys' chief executive, said in a statement.

The company noted its services revenue is expected to be flat, compared with the same period a year ago, while its technology revenue will likely decline to the low double digits. Most of the financial weakness occurred in the United States and Latin America.

Unisys expects to report its second quarter results July 15.

Shares of Unisys fell about 13.5 percent to $11.12 in morning trading.