Unisys Announces Preliminary 1997 Results and Restructuring

Unisys (Blue Bell, PA) has released preliminary 1997 financial results. A net income of $0.43 to $0.45 per share before one-time charges is expected, a 300% increase from 1996 figures. In continuing efforts to refocus its strategies, the company will discontinue its $500 million PC and server manufacturing operations, though it will maintain a presence in the market through partnership agreements. Unisys will also write off approximately $900 million in goodwill related to the 1986 merger of Burroughs and Sperry. Unisys will also redeem all of its $198 million of 9 1/2 senior notes on February 5. All told, the one-time charges amount to $1.1 billion. These actions are "major steps" towards profitability, according to Unisys chairman, president and CEO Lawrence Weinbach. "We were not generating the volume needed to compete effectively and profitably in the PC business." Unisys sees its future growth in services and enterprise-class Windows NT servers, as evidenced by an October agreement with Microsoft

(Redmond, WA). "These actions," said Weinbach, "will help us accelerate our financial improvement and focus our business on areas of highest potential return." Unisys' stock jumped nearly 7% on Tuesday, to $14 5/8.