Unisys ( UIS) returned to profitability in the fourth quarter, beating the Street's bottom-line forecast early Wednesday.

Unisys said it earned $21.3 million, or 6 cents a share, for the quarter, reversing its loss of $31.1 million, or 9 cents a share, in the same period last year.

Analysts polled by Thomson First Call had forecast a net income of 4 cents a share.

The Blue Bell, Pa.-based IT services firm reported $1.55 billion in revenue for the quarter, down slightly from $1.57 billion in the year-ago quarter. Analysts pegged the company for $1.56 billion.

The company is continuing to slash costs through reduction in staffing levels. It eliminated 4,900 positions in 2006 of 5,600 planned cuts, which should yield a cost savings of $280 million in 2007, Unisys said.

In the first quarter, Unisys said it would lop off another 450 positions, and 250 more in the second quarter. Overall, the total restructuring plan should save the company over $340 million by the second half of the year.

Unisys shares declined 14 cents to $7.99 in recent trading.

The company did not immediately provide an outlook for the current quarter or fiscal year 2007.

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