Unisys today reported a first-quarter 2008 operating profit of $28m (£14.1m) compared with an operating loss of $29.6m in the same quarter of 2007.

Profits were not as high as shareholders hoped after contract delays and the credit crunch took their toll on the company.

“We continued to improve our operating profit in the first quarter despite some weakness in our US business,” said Unisys chief executive Joseph McGrath.

The quarter saw strong growth in the firm's outsourcing arm, coupled with a weak performance in infrastructure services and maintenance.

"Outsourcing firms, such as Unisys, should actually be positioning themselves for a robust period as CIOs look to outsource to take the pressure off their budgets," said Ovum analyst Kate Hanaghan.

Revenue in the US declined 11 per cent in the quarter to $537m, reflecting declines in the company's technology and federal businesses. Revenue in international markets increased three per cent to $764m.