This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Is It Safe? Unisys Struggles With Debt Load

"Is It Safe?" is a daily feature by TheStreet.com Ratings that looks at a company's risk-and-reward potential. Find out if your stocks are safe each morning at 4.

Unisys (UIS - Get Report) called a timeout on Friday in its struggle to get out from under $759 million in long-term debt. Until the firm cleans up its balance sheet and the information-technology market picks up, its fate is uncertain.

On Friday, the company said it was able to extend its deadline for refinancing a chunk of loans to June 12 from May 31. The company wants to exchange notes set to expire between 2010 and 2015 for new 12.625% notes due in 2014 to maintain an important source of credit.

TheStreet.com Ratings

Once a pioneering mainframe computer maker known as Sperry Univac, Unisys now sells data-processing and tech support services to corporate and government clients. The shift from mainframe computers to servers has damped revenue, causing four straight years of losses.

Profits aren't on the near-term horizon for the IT services company, which has cut staff, benefits and research costs. After losing $5.09 per share in 2005, Unisys suffered deficits as high as 81 cents each year from 2006 to 2008. It lost 7 cents in the first quarter.

With shareholder equity of negative $1.4 billion, meaning its debt exceeds its assets, and long-term debt of $759 million as of March 31, a balance sheet clean-up is a life-and-death matter for Unisys.

J. Edward Coleman, who took over as chairman and chief executive officer in October, has been leading the firm's survival efforts. Coleman was previously CEO of computer maker Gateway, which he successfully restructured and sold to Acer of Taiwan.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
CSC $65.23 0.00%
IBM $173.67 0.00%
HPQ $33.80 0.00%
UIS $21.86 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs