COVID-19 blamed for the financial hit Unisys Australia suffered during 2020
Unisys Australia has reported its financial results suffered another blow during the 2020 financial year, with the company blaming it on the COVID-19 pandemic.
For the period to 31 December 2020, the company reported a net loss after tax of AU$7.86 million, a further decline from the AU$3.27 million loss that was recorded during the 2019 financial year.
"The impact from the rapidly changing market and economic conditions due to the COVID-19 outbreak is uncertain, disrupting the business of our customers and partners, and has impacted our business and consolidated results of operations and could impact our financial condition in the future," the company said.
Total revenue declined by 7% from the prior year to AU$216 million. While services supplied to customers still made up a majority of total revenue coming in at AU$203.5 million, it was AU$22 million less than the previous period, which Unisys said was due to a decline in field services, travel, and aviation volume-based contracts.
On the flipside, revenue earned from hardware and software sales increased by nearly AU$5 million reaching AU$12 million for the full year.
The company added that it has taken steps to try minimising the impact the pandemic has had on the business, such as through temporary salary reductions for the senior leadership team, reduction of third-party spend such as contractors, redeploying its workforce based on shifting needs of the business, limiting travel and unnecessary expenses, and reducing discretionary capital expenditures where possible.
Spending on computer maintenance and support, however, increased by AU$3 million to AU$16.4 million.
According to the report, the company had 632 employees, 75 fewer than what was reported during FY19. Coupled with this, employee benefits decreased from AU$95.7 million to AU$85.4 million.
As a result of the bottom line, there was an income tax benefit of AU$1.96 million, versus AU$262,000 paid last year. Of that total tax benefit, AU$298,000 was current tax, AU$1.59 million was deferred tax, and it also accounted for AU$662,000 worth of adjustments for prior periods.
Looking ahead, the company said it will continue to monitor the nature of the pandemic.
"The company is unable to accurately predict the full extent of the impact that COVID-19 will have due to numerous uncertainties, including the availability and effectiveness of a vaccine, the duration of the outbreak, actions that may be taken by governmental authorities, the impact to the business of our customers and partners … [but] will continue to evaluate the nature and extent of the impact to its business, consolidated results of operations, and financial condition," it stated.
Unisys Australia is controlled by Unisys Global Holding, and the ultimate parent entity is Unisys Corporation based in the United States.