Company: UIS
Filing Date: 2025-04-04
Form Type: CORRESP
Source: 0000746838-25-000013
Chunk: 1

Company: UNISYS CORP
Filing Date: 2025-04-04
Form: CORRESP
Chunk 1
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 into consideration revenue recognition standards or other factors such as early contract termination and it is not directly representative of the revenue generated during the applicable reporting period.

The Company’s key performance metrics include revenue, gross profit, gross profit margin and operating income (loss), which are reported within the Company’s Form 10-K for the fiscal year ended December 31, 2024 (“2024 Form 10-K”). The Company believes these metrics are the most meaningful measures to assess the Company’s performance and are the key metrics that management uses to manage the Company.

The Company considers revenue to be the primary metric to monitor its ability to retain and grow existing customers. The Company monitors revenue on a consolidated basis and through the performance of its reportable segments.

In future earnings releases and investor presentations, the Company will update its TCV definition to further highlight its inherent limitations as follows:

“Total Contract Value (“TCV”) represents the estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. The Company believes that actual revenue reflects the most relevant measure necessary to understand the Company’s results of operations, but TCV can be a useful leading indicator of the Company’s ability to generate future revenue over time subject to certain inherent limitations. For example, measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and contract modifications, including terminations, over the lifetime of a contract. Therefore, investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with Generally Accepted Accounting Principles.”

#### Comment
2. We note that you disclose and discuss extensively L&S and ex-L&S revenue and gross profit in your earnings releases, calls and investor presentations which would appear to indicate that management believes that this is useful information to an investor and that it provides insight into management’s perspective on the company’s business performance. Please tell us what consideration was given to disclosing this information in your results of operations section of your MD&A. Refer to Item 303(a) of Regulation S-K. As part of your response, please explain to us the products and types of revenues included in L&S.

Company Response:

The Company acknowledges the Staff’s Comment. Revenue from license and support (“L&S”) represents software license and related support services,