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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) January 15, 1998
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UNISYS CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-8729 38-0387840
- --------------- ------------------------ ---------------
(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
Township Line and Union Meeting Roads,
Blue Bell, Pennsylvania 19424
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(Address of Principal Executive Offices) (Zip Code)
(215) 986-4011
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(Registrant's telephone number, including area code)
Item 5. Other Events.
On January 15, 1998, the Company reported net income before one-time
charges of $199.0 million for the year ended December 31, 1997,
compared with net income before one-time charges of $61.8 million in
1996. Before one-time items, the Company earned $0.46 per share on a
diluted basis after payment of preferred dividends in 1997, compared
to a loss of $0.34 per share in 1996. Operating income before one-
time items was $613.8 million in 1997, compared to $327.4 million in
1996. Net income for the fourth quarter of 1997 before one-time
items was $86.9 million, or $0.25 per share on a diluted basis after
preferred dividends, compared to net income before one-time items of
$55.7 million, or $0.14 per share on a diluted basis after preferred
dividends, in the fourth quarter of 1996. Operating income before
one-time items was $217.5 million in the fourth quarter of 1997 and
$146.9 million in the fourth quarter of 1996.
In the fourth quarter of 1997, the Company took a one-time charge of
$1.1 billion against net income. After this charge, the Company
reported a fourth quarter 1997 net loss of $965.7 million, compared
to net income of $43.6 million after a one-time item in the fourth
quarter of 1996. Including one-time items, the net loss for the year
ended December 31, 1997 was $853.6 million, or $5.30 per share after
preferred dividends. Net income in 1996 was $49.7 million, or a loss
of $0.41 per share after preferred dividends.
The one-time charge against 1997 fourth quarter net income included
the writeoff of $883.6 million in goodwill principally related to the
1986 merger of Burroughs Corporation and Sperry Corporation, $127.0
million principally related to the Company's decision to discontinue
the manufacturing and assembly of personal computers and low-end
servers and to dispose of a small, non-strategic technology product
and $42.0 million related to the conversion, in December 1997, of
$271.2 million of the Company's 8-1/4% Convertible Subordinated Notes
due 2006. The writeoff of goodwill reflects the rapid changes that
continue to occur in the marketplace away from proprietary technology
and maintenance as well as the Company's decision to change the
method used for measuring the remaining value of goodwill.
Revenue for the year ended December 31, 1997 was $6.64 billion,
compared to $6.37 billion in 1996. Revenue for the fourth quarter of
1997 was $1.90 billion, compared to $1.81 billion in the fourth
quarter of 1996. During the year ended December 31, 1997, the
Company generated $383.5 million in cash flow from operating
activities, an increase of $473.2 million from 1996. During the
fourth quarter of 1997, the Company generated $393.7 million in cash
flow from operations, up from $263.0 million in the fourth quarter of
1996.
Item 7. Exhibits
99 Consolidated Statement of Income
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
UNISYS CORPORATION
Date: January 22, 1998 By: /s/Robert H. Brust
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Name: Robert H. Brust
Title: Senior Vice President
and Chief Financial
Officer
EXHIBIT INDEX
Exhibit No.
99 Consolidated Statement of Income
UNISYS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per share data)
Three Months Year
Ended December 31 Ended December 31
------------------ ------------------
1997 1996 1997 1996
-------- -------- -------- --------
Revenue $1,898.6 $1,811.5 $6,636.0 $6,370.5
-------- -------- -------- --------
Costs and expenses
Cost of revenue 1,294.1 1,153.9 4,402.4 4,252.1
Selling, general and
administrative 416.6 426.4 1,427.2 1,448.1
Research and development 80.1 84.3 302.3 342.9
Goodwill impairment 883.6 883.6
-------- -------- -------- --------
2,674.4 1,664.6 7,015.5 6,043.1
-------- -------- -------- --------
Operating income (loss) (775.8) 146.9 (379.5) 327.4
Interest expense 53.8 64.2 233.2 249.7
Other income(expense),net (107.1) 1.8 (146.1) 16.0
-------- -------- -------- --------
Income (loss) before
income taxes and
extraordinary item (936.7) 84.5 (758.8) 93.7
Estimated income taxes 29.0 28.8 94.8 31.9
-------- -------- -------- --------
Income (loss )before
extraordinary item (965.7) 55.7 (853.6) 61.8
Extraordinary item (12.1) (12.1)
--------- ------- -------- --------
Net income (loss) (965.7) 43.6 (853.6) 49.7
Dividends on preferred
shares 26.6 30.2 111.1 120.8
-------- -------- -------- --------
Earnings(loss)on
common shares $ (992.3) $ 13.4 $(964.7) $(71.1)
======== ======== ======== ========
Earnings(loss)per
common share
Basic
Before extraordinary item $(4.75) $ .15 $(5.30) $ (.34)
Extraordinary item (.07) (.07)
-------- -------- -------- --------
Total $(4.75) $ .08 $(5.30) $ (.41)
======== ======== ======== ========
Diluted
Before extraordinary item $(4.75) $ .14 $(5.30) $ (.34)
Extraordinary item (.06) (.07)
-------- -------- -------- --------
Total $(4.75) $ .08 $(5.30) $ (.41)
======== ======== ======== ========
Shares used in the per share
computations (thousands):
Basic 208,703 172,971 182,016 172,507
======== ======== ======== ========
Diluted 208,703 217,638 182,016 172,507
======== ======== ======== ========