The 2016 financial results of Unisys Corporation (NYSE:UIS) Australian chapter are out but are underwhelming. The IT services firm has recorded an after-tax loss of AU$3.3 million. This is compared to the AU$709,000 after-tax profit reported in 2015.
Analyzing Unisys performance during the 12-month period, records have it that a total of AU$258 million were received in revenues. On the other hand, payments of close to AU$244 million were made to suppliers and employees. Nevertheless, the loss resulted in an AU$1.3 million income tax benefit, which was given to Unisys Australia by the Australian Taxation Office.
Unisys is providing a centralized IT support services
The primary role of Unisys is the provision of centralized IT support services and particularly to state government departments. This was occasioned by a contract signed earlier on between the New South Wales government and Unisys. The contract runs for six years.
Throughout 2016, Unisys Australia has been performing different activities the likes of the sale of IT solutions. It was also involved in third-party loan and payment processing services.
But the IT firm has obtained a new partnership
A lot will come into play within the six years of the contract. Unisys will be expected to outsource end-to-end IT support. However, this is not all because the Australian Department of Defense has extended its contract with the IT firm for another two years. The initial agreement was for five years. Unisys will now attend to an additional 450 defense locations across the country.
Apparently, Unisys will not just leave it at this. It has clinched on a new partnership with Data61. The collaboration will facilitate the development of a superior data analytics solution to be used in the evaluation of risks on travelers as well as cargo.
The Blue Bell, the Pennsylvania-based company hopes to grow in the provision of services. In the 12-month period, the technology revenue had a 1% increase year over year to $414 million.
In the meantime, Unisys’ stock closed at $11.65 witnessing an increase of $0.32 or 2.87%.