Unisys Corp expects to see 8% to 10% revenue growth this year and 13% to 14% growth by 2002, taking the company from the $7.2bn it posted last year to about $11bn. Chief executive Larry Weinbach, speaking to analysts at the company’s annual meeting in New York, also reiterated that the revitalized company is comfortable with an earnings projection of $1.35 to $1.40 per share for fiscal 1999. It expects to see EPS rise at twice the top line level, making for 26% to 28% growth per year by 2002.
Weinbach said he felt more confident about the current fiscal year than he was just a few weeks ago when the company reported its first-quarter results, with earnings of $0.32 per share on revenue of $1.81bn. The company soundly beat estimates of $0.24. Analyst Steven Milunovich at Merrill Lynch says that, given better visibility into third-quarter sales, he believes that further upside surprises are likely as the year progresses. The company had earlier expressed the belief that it would see a higher proportion of its sales in the first half of the year than it has historically due to Y2K issues.
First-quarter results were driven by growth in services and Milunovich cites repeatable services and outsourcing will be strong contributors going forward. Weinbach said services could contribute 75% of revenue and 60%-65% of operating profit by 2002. The company also announced a new $300m five-year contract with British Telecommunications Plc’s Concert venture. Another US government contract could bring in about $445m and $450m over five years, the company added.
