IT services firm Unisys admitted yesterday that its profits have been slashed by over a third, and blamed customers who have been cancelling and delaying major project roll outs.
Including one-time charges, profits fell year on year from £26m ($36.5m) to £8.57m ($12.1m), or nine cents a share. Sales for the three months to the end of June were £1.04bn ($1.46bn), down from £1.14bn ($1.6bn) for the same period a year ago.
Lawrence Weinbach, chairman and chief executive at Unisys, said: "As customers delayed planned IT projects and reduced expenses during this period, we saw weak demand in our high-end enterprise server and systems integration businesses."
He added that the company reduced expenses for the second quarter by 12 per cent from the previous year as it contended with "a very challenging economic environment".
When the company reported its first-quarter earnings in April, Weinbach warned that profits in the second quarter were likely to be "approximately half" of last year's level.
Unisys also sharply reduced its forecast for the next two quarters. The firm expects earnings per share for the third quarter to be in the five to 10 cent range, improving to between 25 and 30 cents per share in the fourth quarter. Analysts had pegged earnings for those periods at 18 cents and 40 cents, respectively.
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