Unisys reported a third-quarter loss on Tuesday and revealed plans to cut 10 percent of its staff, or about 3,600 workers, in an effort to focus its business and reduce costs.
The net loss for the quarter was $54.3 million, or $0.16 per share, compared to net income of $25.2 million, or $0.07 per share, in the third quarter last year. The results are preliminary and the company said they may change after a review of a deferred tax asset.
Revenue in the quarter dropped 4 percent to $1.39 billion from $1.45 billion in the same quarter last year.
The company blamed low orders for the quarterly loss. Specifically, services orders were significantly down and sales were weak in its high-end server business.
To address those shortfalls, Unisys will begin to concentrate on areas with growth potential such as outsourcing, open source, and Linux, Microsoft-based systems and security, the company said. Unisys also plans to divest some areas of business and improve its sales and marketing efforts.
The layoffs will come as part of the focus on the growth areas. Unisys expects that the downsizing will result in $250 million in annualized cost savings by the end of 2007 and will cost about $250 million to $300 million through 2006.
Despite disappointing results for the quarter, Unisys President and Chief Executive Officer Joseph W. McGrath said in the statement that he expects the fourth quarter will be profitable, dependant on closing some big deals. Earnings for the final quarter will be between $0.10 and $0.15 cents per share, he said.
Get the independent advice and expertise you need to support a virtual workforce.
The increase in Linux popularity has increased the frequency and sophistication of malware attacks. Read this 2 page white paper now to learn how you can protect your Linux environment with real-time protection that is certified by all major Linux vendors.
Download now »Ensuring acceptable application delivery will become even more difficult over the next few years. As a result, IT organizations need to ensure that the approach that they take to resolving the current application delivery challenges can scale to support the emerging challenges. This handbook elaborates on the key tasks associated with planning, optimization, management and control and provides decision criteria to help IT organizations choose appropriate solutions.
Download now »A common misconception is that mid-range storage requirements are dramatically different than that of a larger enterprise. Mid-range storage users may require less capacity, but they have similar functionality and management requirements. This ESG paper examines mid-range storage needs and reviews a new solution that adjusts size while retaining value, performance and functionality.
Download now »
