Unisys corporation has reported a global Q3 2006 net loss of more than $US77 million, despite increasing revenue from the quarter by two percent when compared to the same period last year.
Revenue from Q3 2006 increased to $US1.41 billion from $US1.39 billion. In the US revenue declined five percent to $US637 million in the quarter and international market revenues increased eight percent in the quarter to $US773 million.
Revenue for the first nine months of 2006 was $US4.21 billion. For the same period last year revenue was $US4.19 billion.
Unisys president and chief executive officer Joseph McGrath said the company still has much more work to do but is encouraged by the progress the company is making in both operations and financial results.
McGrath added the company is working towards the goal of significantly improved operating margins in 2007 and 2008.
"While we have much more work yet to do, I am encouraged by the progress we are making in our operations and our results," McGrath said.
"During the quarter we continued to move aggressively to implement headcount reductions as part of our cost reduction program, and we increased our target for annualized cost savings to more than $US340 million by the second half of 2007.
"We also expanded our use of offshore resources and announced the planned opening of two additional global sourcing centres in India. We made solid progress in the third quarter in repositioning Unisys for profitability and our services orders showed double-digit growth in the quarter as clients respond favourably to our more focused portfolio of services and solutions."
According to a Unisys press release, customer revenue in the services segment increased four percent in Q3 2006 compared with the same period last year. Gross profit in the Unisys services business climbed to 13.9 percent from 11.3 percent one year ago.
The company has stated they will shed some 1400 staff in Q4 2006, with the remaining 600 reductions slated for the first half of 2007. This reduction is expected to yield "annualized cost savings" of $US280 million, by year-end 2006 and more than $US340 million be the second half of 2007.