Computermaker Unisys Corp. on Tuesday reported a better-than-expected profit of $48 million in the first quarter, as it continues to rebound following a major restructuring.
It was the second consecutive quarterly gain for the nation's third-largest maker of computers, which last year closed plants and cut 10,000 employees to end losses.Unisys Chairman James A. Unruh said the results showed that "our turnaround actions and product and marketing programs are on track."
Per-share earnings amounted to 11 cents in the first three months of the year. In the 1991 period, Unisys lost $98.2 million, or 79 cents per share.
Revenue fell slightly to $2.01 billion from $2.06 billion. But last year's figure included $62 million from its Timeplex subsidiary, which Unisys sold effective June 30, 1991.
The company said it reduced debt by about $100 million and generated $121 million in cash flow from operations.
Operating expenses were at their lowest quarterly level in six years and down 17 percent from the first quarter last year. Interest expense dropped 24 percent because of less borrowing and lower rates.
The company reported growth in orders, especially in U.S. orders for computers. The strongest gains were for large mainframe computers recently introduced, Unix-based computers and software.
"While we remain very cautious about the timing and scope of a global economic recovery, we may be experiencing some early signs of an improving U.S. market," Unruh said.