$UIS,...Unisys blasts off on Q3 beat, margin strength, mainframe growth
With shares having gone into earnings just a little above a 52-week low of $18.72, Unisys' (UIS +24.3%) big Q3 beat is being very well-received.
Strong demand for Unisys' ClearPath mainframes (aided by a migration to Intel Xeon CPUs and improved Windows/Linux support) fueled a 66% increase in Technology segment revenue (drives future services revenue) to $119.5M. Services segment revenue rose 6% to $763M.
Services gross margin fell 160 bps Y/Y to 19.5%, but Technology gross margin rose 2820 bps to 61.5%. Opex grew 7% to $158.3M.
Unisys is only 16 days removed from plunging on news chairman/CEO J. Edward Coleman will be leaving the company.
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