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Technology Stocks : Unisys: Computer Solutions and Services Worldwide -- Ignore unavailable to you. Want to Upgrade?


To: TechMkt who wrote (2237)1/14/1999 7:38:00 PM
From: BigLouie  Respond to of 2818
 
You are a bit misinformed as far as margins are concerned at least as it applies to UIS. IMO - The system margins being enjoyed are better than twice the service margins - and it is difficult to see that changing. That means that as the system revenue decreases service revenue has to increase at a rate of 2X to just MAINTAIN the net. So you can see the hurdle that LW has to overcome to increase profits. Any reason why the expense/interest line continues to get the attention?

PC companies may be a different story.

M



To: TechMkt who wrote (2237)1/14/1999 8:45:00 PM
From: Ramesh Manne  Read Replies (1) | Respond to of 2818
 
No way, a service company will have higher margins than mainframe hardware companies. I think Unisys information services gross margin is about 24% versus 48% for hardware. You might have meant the growth rates are higher in service than the hardware which I agree with you.