PA - Unisys Says First-Quarter Sales to Miss Forecasts on Year 2000 Transitiongreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread |
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TECHNOLOGY NEWS
Tue, 04 Apr 2000, 8:48am EDT Title: Unisys Says First-Quarter Sales to Miss forecasts on Year 2000 Transition
By Ron Day
Blue Bell, Pennsylvania, April 4 (Bloomberg) -- Unisys Corp., a computer-services company competing with International Business Machines Corp., said first-quarter revenue will lag forecasts because business hasn't picked up after a Year 2000 slowdown.
Unisys shares fell 1 15/16 to 23 1/2 in Instinet trading.
Revenue will be $1.66 billion to $1.69 billion, less than the $1.81 billion reported in last year's first-quarter, the company said. Unisys didn't reduce earnings forecasts for the period and is expected to earn 34 cents, the average estimate of analysts surveyed by First Call/Thomson Corp.
The Blue Bell, Pennsylvania-based company said the revenue slowdown will continue in the second quarter. It forecast second- quarter earnings of about 38 cents a share, before a charge, which is what it earned in the year-earlier period. Analysts surveyed by First Call were looking for Unisys to post earnings of 43 cents in the second quarter.
Unisys said its federal government and financial-service businesses haven't picked up after companies and agencies delayed purchasing because of concerns about computer malfunctions related to the date changeover to 2000.
The company said it expects full-year per-share earnings of $1.75 to $1.80 before charges, which is less than the $1.82 analysts have forecast.
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-- (Dee360Degree@aol.com), April 04, 2000