Unisys details U.S. Army biometrics contract in quarterly earnings report
Unisys has announced its revenue grew by 3.3 percent, or 5.8 percent on a constant currency basis, to $688.3 million in the fiscal third quarter of 2018. Q3 2018 marked the fourth consecutive quarter of revenue growth for the company, which also signed a key contract for biometric services with the U.S. Army during the quarter.
Operating profit margin for Unisys improved by 8.5 percent from a year earlier to 8.1 percent and non-GAAP operating profit margin increased by 0.2 percent year over year to 7.7 percent. The improved revenue and margins drove diluted earnings per share to $0.12, compared to a diluted loss per share of $0.81 a year ago, and non-GAAP diluted earnings per share increased from $0.31 to $0.39. The Total Contract Value (TCV) held by Unisys was buoyed by 46 percent year over year for the quarter 93 percent for the year to date.
The contract with the U.S. Army is for the first phase of its Next Generation Biometric Collection Capability, for which Unisys will integrate its Stealth(Identity) software to support multiple operational missions with end-to-end data flow for efficient, near real-time identity matches to soldiers in the field, according to the announcement. An Army Doctrine Publication in September described an increasing role for Biometrics Enabled Intelligence (BEI) in Army intelligence activities.
“Our go-to-market momentum continues, with our fourth consecutive quarter of revenue growth, which was supported by improvements to profitability year over year,” says Unisys Chairman, President and CEO Peter A. Altabef. “Additionally, we made further progress with our focus on digital transformation for state governments, as we signed a contract with the Virginia Information Technology Agency following contracts we have signed over the last twelve months with the states of Hawaii, Georgia and Kansas.”
Unisys reaffirmed its previous guidance for full-year 2018 for non-GAAP adjusted revenue of $2.7 to $2.825 billion.
Australia’s Department of Home Affairs was reported in September to be considering using Unisys facial recognition technology to screen travelers at the country’s airports.