Unisys has warned that it will record lower-than-expected first-quarter results because of weak US federal government sales and the slow recovery from the year 2000 lockdown of its financial services arm.
The company, which services Dell's hardware, said turnover will be between $1.66bn (£1.04bn) and $1.69bn for the first quarter ended 31 March. It will release its results tomorrow (13 April).Unisys said the implementation of a new integrated go-to-market model for its 1,000 largest clients during the quarter meant it had devoted less time to its sales efforts.
This resulted in its technology business rebounding faster from the year 2000 lockdown than its services business, leading to better-than-expected first quarter product sales.
But while services turnover was down compared to a year ago, Unisys said it has experienced a significant pick-up in services during the quarter and expects the division to yield strengthening orders and revenue during the year.
It said it still expected double-digit revenue growth in the second half of 2000 thanks to a rise in customer demand, improved sales force productivity and increased sales of its new e-business and technology offerings.
Turnover is also expected to be slightly down in the second quarter.
Unisys expects revenue growth of between four and six per cent for the full year.
Lawrence Weinbach, Unisys chief executive, said: "I wish we could have got off to a faster start to the year, but I am encouraged by the underlying activity we are seeing in our business."
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