(UIS) Unisys Secures Royal DSM Contract

Recently, Unisys Corporation (UIS) declared that its Dutch subsidiary has been selected by Royal DSM N.V. for various types of IT support solutions. Royal DSM chose Unisys given its highly developed technology and its advanced and integrated systems.

Royal DSM is mainly engaged in offering various types of science-based solutions in the field of health, nutrition and materials. In addition, Royal DSM has 22,000 employees operating globally.

Per the latest contract, the company will offer Royal DSM a complete suite of single-point-of-contact (SPOC) service desk solutions to resolve any queries related to IT matters. Moreover, the company will be rendering its services across 37 countries in Europe and America in seven different languages including Dutch, English, German, French, Italian, Spanish and Portuguese.

Management is highly encouraged by its association with Royal DSM. The company through integrating its technologically advanced services with Royal DSM will work diligently to improve the efficiency and productivity of its clients.

Contract wins have always been the niche strength for Unisys. Recently, the company received a $504 million contract from the U.S. Department of Homeland Security (DHS) Targeting and Analysis Systems Program Office (TASPO). As per the latest contract, the company will develop, operate and manage systems for risk assessments of people and cargo entering the U.S. The task order forms a part of the U.S. General Services Administration’s Alliant government-wide acquisition contract.

The company, however, should not become complacent with its contract win spree as it faces stiff competition largely from proactive companies including Accenture plc (ACN), Hewlett-Packard Company (HPQ) and International Business Machines Corporation (IBM).

The current Zacks Consensus Estimates for Unisys are 64 cents and $3.20 per share for the third quarter of 2012 and full year of 2012, respectively. The estimates represent a year-over-year growth of (60.74%) for the third quarter and (27.84%) for 2012. At present, we have a ‘Neutral’ recommendation on Unisys. The stock currently carries a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.

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