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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Joe Smith who wrote (13455)	10/14/1999 12:48:00 PM
From: KevinThompson	Read Replies (1) \| Respond to of 57584

I'm Buying more. From Briefing: 11:55 ET ****** Unisys (UIS) 29 13/16 -12 7/16: A good news-bad news situation is unraveling at Unisys, and unfortunately, the bad news is taking precedence. As for the good news, the company reported that Q3 earnings per share rose 60% to $0.40 per common share which was four cents ahead of consensus estimates. That noticeable increase was driven by a better than expected performance in its technology business, margin improvement in its services business, and tight expense controls. Yet, the bottom-line is proving immaterial today as investors are focusing on the top-line which grew an anemic 4% (7% without the negative impact of currency) due primarily to weakness in its network services and NT services businesses which were impacted by competitive pricing, particularly in the Federal Government space, and unexpected delays in the startup of certain contracts. In addition, slower than expected development of its NT services business and a slowdown in information technology spending during the Y2K transition also hurt its performance. Consequently, Unisys is making organizational changes designed to help boost its top-line results and to position the company to take advantage of the growth opportunities in e-business. According to the company, however, those changes along with the impact of currency and the Y2K transition will limit revenue growth for the next two quarters. For 1999, Unisys expects EPS growth of 50%, and anticipates revenue growth to be about 4%, but that's not the formula that is going to get it done for a growth stock-- or at least it was a growth stock until today.-- PJO KT