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March 11, 1997updated 05 Sep 2016 12:59pm

UNISYS CAN’T DELIVER ON CONTRACTS

By CBR Staff Writer

Unisys’ ISG (Information Services Group), one of the three autonomous businesses the humbled giant split itself into last year, is having a tough time making good on its promises. It is currently renegotiating – or completely bailing out of – a reported 37 systems integration contracts, according to a story in yesterday’s Information Week. Lawrence Russell, head of the ISG for the past 16 months, has admitted that some contracts simply could not be honored. A spokesman for Unisys said although it has made some mistakes in the past it is standing by its clients, and doing the best it can to help rectify any problems. Unisys would not comment on the exact number of deals in question or on the combined value of them. The ISG, which according to Unisys’ financial statements recorded revenue last year of $1.9bn, is believed to be unprofitable to the tune of several million dollars, contributing to a total 1995 loss of $698m. Bad systems integration contracts aside, Russell predicts a return to profitability, something which Unisys hasn’t seen since 1994, by the end of 1997. Analysts at First Call agree, looking for earnings of $0.37 for the year and almost double that for 1998.

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