Red ink flows in difficult first quarter for Unisys

Unisys Corp. would love to finish 2013 with flat revenue over 2012.

Well, that's going to be a tough slog after the Blue Bell information technology services company reported a 13 percent decline in revenues for the first quarter.

Revenue fell to $810 million from $928 million for the first three months of 2012.

Equally concerning for Unisys investors should be that the company lost $33.9 million, or 77 cents per share, after reporting a net income of $13.4 million, or 30 cents per share, for the same quarter in 2012.

"This was a difficult quarter for us as lower revenue impacted our bottom-line results," said Unisys chairman and chief executive Ed Coleman in a statement.

In after-market trading, Unisys shares were down 16 percent from Tuesday's closing price of $20.57.

Unisys said declines in revenue from systems integration, infrastructure services and core maintenance offset growth in revenue from information technology outsourcing.

"We expect continuing challenges as we work through softness in our services business and recognize the need to maintain a competitive cost structure in line with our revenue performance," Coleman said. "We are focused on reversing the decline in systems integration."

Unisys also said lower sales of its ClearPath enterprise software and servers led an 18 percent decrease in technology revenue in the quarter ended March 31.

The company said its first-quarter financial results included $22.3 million in pension expense and a $6.5 million loss as a result of the Feb. 3 devaluation of the Venezuelan currency.