Unisys launches new business security ad campaign

Published 25 October 2006

Targeted at C-level executives, initiative includes a Fortune magazine cover featuring the recipient’s photograph; company hopes to sell IT security and continuity as competitive advantages, not as reactive responses to threats

Security unleashed,” the tag line of Unisys’s new marketing campaign, says it all. No longer should security be seen as a series of reactive moves against unknown threats, the company believes. Instead, companies should view security as an “active, enabling catalyst for competitive advantage and achievement” — a way to improve business practices and outshine the competition. Indeed, security has been good to Unisys (NYSE:UIS). The company is involved in a host of critical government projects, including SBINet, a DNA program with the FBI, and border protection initiatives with the Canadian and Australian governments. The new marketing campaign, however, is based on how the company can help other businesses succeed, and Unisys is bringing out all its guns.

This campaign is meant to be somewhat provocative and a little edgy to shake-off an old, stale image and help our customers think differently about Unisys,” said Ellyn Raftery, Unisys vice president and general manager of worldwide marketing and communications. One interesting approach is a direct mail piece featuring a Fortune magazine cover wrap showing the recipient’s picture and simulated editorial headlines that emphasize results his or her company can achieve through the benefits of secure business operations. (This recalls a recent Reason magazine cover that featured a satelite image of each subscriber’s house.) There is also a new Web site detailing cost-effective security strategies, value-added industry research and other third-party content. Commuters should also expect to see a ubiquitous advertising effort targeted at bus stops, airports, and elevators.

The campaign was developed by New York-based StrawberryFrog, with digital marketing support delivered by imc2.

-read more in this company news release; Security Unleashed Web site

Unisys reported improved financial results for the third quarter of 2006 as the company continues to reposition itself to focus its resources on large, growing markets and reduce its cost structure. Orders and margins improved in the quarter from the year-ago period and sequentially from the second quarter of 2006. The company also announced a number of strategic client awards in growth areas such as enterprise security and outsourcing.

Revenue for the third quarter of 2006 increased 2 percent to $1.41 billion from $1.39 billion in the year-ago quarter. Revenue was essentially flat on a constant currency basis. Unisys reported a third-quarter 2006 net loss of $77.5 million, or 23 cents per share. The results included:

* pretax charge of $36.4 million to cover additional selected headcount reductions, primarily in continental Europe; and

* pretax pension expense of $43.4 million

These results compared with a third-quarter 2005 net loss of $1.63 billion, or $4.78 per share, which included:

* $1.57 billion charge for an increase in the company’s deferred tax asset valuation allowance; and

* pre-tax pension expense of $44.2 million.

Among the company’s major victories in the third quarter:

* DHS awarded the rich SBInet contract to a Boeing-led team, which includes Unisys; the first phase of the project will use surveillance and information systems to enable agents and officers to detect, identify, classify, respond to, and resolve illegal entry attempts beginning at a twenty-eight-mile stretch of the Tucson, Arizona border; Unisys is Boeing’s co-integrator on the program and is responsible for information systems integration, IT infrastructure, and certain surveillance, targeting systems, and law enforcement systems

* The FBI awarded Unisys a contract to develop and implement a next-generation DNA indexing system that will allow federal, state, and local laboratories to share and compare DNA profiles in linking convicted offenders to violent crimes; the contract has a two-year base period, with an estimated value of $11 million, and a two-year option and two one-year options; if the FBI exercises all option years, the contract has an estimated total value of approximately $50 million

* Australia’s Department of Immigration and Multicultural Affairs awarded Unisys a contract for an identity authentication solution, using facial recognition, fingerprint scanning, and biometrics technology

* The European Commission awarded frame contracts to a consortium led by Unisys; the contracts, which have a potential combined value of approximately $200 million to the consortium, cover a range of IT services including systems integration and application management and support

* In the United Kingdom, Unisys continues to strengthen its partnership with BT and signed a five-year, approximately $23 million data center outsourcing contract in the quarter

* The U.S. Centers for Disease Control (CDC) awarded Unisys an outsourcing contract to continue managing and expanding the CDC’s data center; the contract has one base year, with an estimated value of approximately $11 million, and four additional one-year options; if the CDC exercises all options, the contract has an estimated total value of approximately $50 million

-read more in company news release