Unisys Third quarter results show that revenue and 12-month revenue controls have been lowered again and an internal investigation has been launched that will determine material weaknesses in its internal control over monetary reporting.
Revenue for the three months ended September 30, 2022 decreased 5.5% year-on-year to 1.2 million (Q3 2021: 8.0 million), but flat at constant exchange rates (up 0.3%). Gross margin decreased 17.8% year-over-year to 4.3 million (Q3 2021: 6.9 million), with gross profit margin declining 340 basis points to 22.6% (Q3 2021 26.0%). Adjusted EBITDA decreased by 29.6% to .5 million (Q3 2021: .6 million).
Despite the constructive comments, the company now expects 12-month earnings to be between -5.5% and -3.5% year-on-year. This compares to an expectation of between a 1% decline and a 1% advance in August 2022, and is well below the 5% to 7% advance predicted in the Q1 earnings call (see Unisys' second-quarter earnings decline). Non-GAAP operating margin guidance for the full year is now between 6.0% and 8.0% compared to the 9.5% to 10.5% range reported in the first quarter. Management says its certified pipeline remains robust (up 25% year-over-year to billion). ) and attributes governance changes directly to macroeconomic issues.
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