Unisys Corporation (UIS) recently announced that its present contract with California State University (CSU) has of late been extended to provide cloud-based IT solution services.
California State University (CSU) happens to be the largest public university in the United States, besides having a long -term relationship with Unisys as a client.
According to the contract, a disaster recovery system shall be installed by Unisys at the university’s Eagan service center at Minnesota in order to get more securely and efficiently manage the transmission and accessibility of information database across CSU.
The contract has a term period of four years through April 2016 with a one-year renewal option.
Prior to this, Unisys had been catering to the applications and databases of CSU’s Oracle/PeopleSoft Higher Education suite for CSU at its Salt Lake City services center in Utah.
The current contract extension will strengthen the company’s existing relationship with the university not to mention the upgraded cloud-based solutions. These upgraded versions will be available at 23 campuses and the university’s Chancellor’s Office for imperative and efficient task management.
Unisys recently announced its third quarter financial results of 2011, whereby revenues were declared to rise at 6% year over year to $1.02 billion. The company’s slowing demands from the U.S. Federal businesses diminished its service revenues to grow at just 2% year over year. However, the company has been currently implementing a number of cost reduction and aggressive marketing strategies to focus on higher-growth areas.
Hopefully, the awarding of such contracts and active management advances would ameliorate Unisys’ revenues considerably by next quarter. Besides, thus fortified, the company will also be able to battle stiff competition from ominous rivals such as Accenture plc (ACN), Hewlett-Packard Co. (HPQ) and International Business Machines Corp. (IBM) in the IT services industry.
We currently have a Zacks Consensus Estimate of $2.29 per share and $3.24 per share for fiscal years, 2011 and 2012, respectively.
Headquartered in Blue Bell, Pennsylvania and established in 1886, Unisys Corp. provides IT solutions to the public sector including the U.S. federal government and also several private sector firms. It operates through two primary segments – Services and Technology. Currently it has an employee database of approximately 22,900 people.
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