Second Quarter 2020

Business Highlights

  • Full-year revenue expectations unchanged relative to end of Q1 at (10)% YoY
  • Detailed profitability expectations provided for the first time post-COVID for full-year non-GAAP operating profit margin between 5.2% and 6.7%
  • Services gross profit margin of 15.5%, up 260 basis points sequentially
  • Strong cash balance of $782 million, relative to $790 million at the end of the first quarter
  • Total company revenue of $439 million, relative to $$569 million in prior-year period
  • Total company operating profit margin of (1.9)%, relative to 9.3% in prior-year period, largely due to timing of ClearPath Forward® renewals within Technology
  • Non-GAAP operating profit margin of 0.2%, relative to 9.8% in prior-year period
  • Total company pipeline up 10.1% sequentially versus the first quarter
  • Services Total Contract Value (“TCV”) up 1.4% year over year