), a worldwide information technology company, received the
Enterprise Storage Acquisition task order from the Internal Revenue
Service (IRS). As per the order, Unisys will provide private
cloud-based storage for the agency's information records.
The task order, with a one year base period and nine one-year
options, have the potential worth $139 million over 10 years if
options are exercised. The worth was estimated by including pricing
for each year based on the IRS's estimate of its storage
Initially, Unisys intends to acquire storage assets, which is
now owned and managed by IRS. Further, the company will
manage more than 7.5 petabytes of storage space, which is currently
in multiple IRS data centers and facilities.
Consequently, Unisys will plan, build, deploy and maintain a new
IRS storage environment. Unisys will also transition those assets
to a private cloud-based storage-as-a-service model, wherein the
agency will be required to pay for storage capacity as needed.
The IRS will pay only for the amount of storage it needs, and
shall not purchase storage equipment, which would be necessary to
meet its peak demands.
Last week, Unisys reported second-quarter results, ahead of the
Zacks Consensus Estimate. Unisys generated revenues of $921 million
in the second quarter of 2012, down 2% from the year-ago quarter
and 0.8% sequentially.
Unisys posted a net income (including pension expenses) of $46.6
million or 99 cents per diluted share in the second quarter of 2012
compared with a net loss (including debt reduction charge, post-tax
charge and pension charge) of $11.6 million or 27 cents per diluted
share in the year-ago quarter, and a net income (including a charge
related to debt reduction and pension expense) of $13.4 million or
30 cents per diluted share in the first quarter of 2012.
Excluding these charges and expenses, net income for the quarter
came in at $1.41 per diluted share versus $1.07 per diluted share
in the year-earlier quarter and 97 cents per diluted share in the
The macro-economic conditions continue to be challenging for
Unisys. We have a Neutral recommendation on the stock. The stock
currently carries a Zacks #1 Rank, which translates into a
short-term rating of Strong Buy.
UNISYS (UIS): Free Stock Analysis Report
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