) received a contract from The National Institutes of Health (NIH)
to compete with another 53 companies for task orders. This contract
was awarded by The NIH under the Chief Information
Officers-Solutions and Partners 3 (CIO-SP3) contract vehicle.
This indefinite delivery/indefinite quantity (IDIQ) contract
awarded to the 54 companies including Unisys is expected to be
worth $20 billion over a period of 10 years. The ten categories of
task orders Unisys can compete for include federal health mission
IT support services, federal CIO office IT support services,
services for supporting collection etc.
The CIO-SP3 deal was not the first award offered by The NIH to
Unisys. Its previous CIO-SP3 agreement expired recently. Hence, the
present superseding CIO-SP3 contract avers that The NIH affirms a
lot of faith and confidence in Unisys' solutions through such
Such continual contract wins have become a major growth driver for
boosting sales incipiently for the company. On April 24, 2012,
Unisys declared financial results of its first quarter in 2012,
whereby total revenue surged almost 2% annually to reach $928.4
million. We believe that the company needs these major panegyrics
in the form of contract wins and extensions in order to post even
stronger results in its upcoming quarters.
Unisys should also keep a wary eye out for competitor advances in
the industry. Big players in this regard include
EPAM Systems, Inc.
CoStar Group Inc.
Fair Issac Corp.
The company currently retains a Zacks #3 Rank, which translates
into a short-term 'Hold' rating. However, we presently maintain our
'Neutral' recommendation on the stock.
COSTAR GRP INC (CSGP): Free Stock Analysis
EPAM SYSTEMS (EPAM): Free Stock Analysis Report
FAIR ISAAC INC (FICO): Free Stock Analysis
UNISYS (UIS): Free Stock Analysis Report
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