Investors fled Unisys ( UIS) shares on Wednesday after the company reported a wider loss for its second quarter and fell short of its revenue target. Shares of the IT services company plummeted 12.9% to $5.36 in recent trading. Its competitors in the sector, meanwhile, rode higher, buoyed by
decent quarterly numbers from IBM ( IBM). Unisys said it lost $194.6 million during the quarter, or 57 cents a share. The results include a $141.2 million charge before taxes for 1,900 planned job cuts, the company said. In the same quarter last year, Unisys lost $27.1 million, or 8 cents a share. The analyst average from Thomson First Call predicted the company would lose 7 cents a share, which likely excludes the pretax charge. On the top line, Unisys posted revenue of $1.41 billion, falling 2% from $1.44 billion in the comparable quarter. The Street expected $1.45 billion for the quarter. Unisys President and CEO Joseph McGrath called the quarter "mixed" and said that as the company cut its head count, "short-term disruptions in our operations ... impacted our financial results for the quarter." The company said that its previously announced job cuts plus the additional 1,900 will slice Unisys' staff by 5,500, saving the company $325 million by the second half of 2007. About 90% of the job cuts will be completed by the end of the year, the company said. "We continue to see 2006 as a transitional year as we work through our repositioning actions," he added. The company should "realize significant benefits" in profitability in 2007 and 2008.