That's not entirely accurate. There were two components when the pension was frozen. The Retirement Accumulation Account could be taken in a lump sum or a monthly annuity or rolled as a lump sum to a IRA. The second component was a monthly payout, no lump sum option unless the amount was very small. If you were 62 and had 20 consecutive years of employment you and at least 55 when you left you could get unreduced monthly pension instead of waiting to 65. Up to $54,000 (an amount set by Congress) per year is guaranteed by PBGC which is run by the government. BNY Mellon disburses the money.
I just found a Gartner article. The average they charge per device is $43 per month. Not sure is refresh is calculated or not. In NA the revenue is $445M for 860,000 devices. They have 1 field technician for every 134 devices in NA. Gartner didn't discuss margin. Seems to me it would be hard to differentiate from others. I believe Merck was a new name client which is good.
I agree it's not much of an announcement. The LX laptop and FS and Commcercial MCP systems were all virtual MCP on plain vanilla Dell servers. That's been around over 10-15 years. I think Forward is just white boxes with Infiniband connections along with Unisys software.
I'm sticking with my original predictions which is 2017 will be a good Clearpath renewal year. Profits will be up because of this. The new team will take credit for the results of their turnaround efforts (as the previous regimes have). The stock will rise nicely in 2017 and when it gets past $16 - GET OUT. And then the cycle will repeat including a new regime. Everyone is talking about new products - name one that isn't just a new twist and maybe a new gown on a product that has been around for 6-7 years such as Stealth. SaaS Air Cargo has been deliver this way for over 20 years. Govt cloud is reworked government time sharing from the 70's. Let's name some real Unisys technology that has been developed internally and PATENTED in the last 5 years. Open Systems Forward is now dead along with the specialized sales force which recently went away. I'm betting on 2017 Clearpath.
It seems to me after reading today's release that no conversion can take place prior to 2021. Unisys can always just pay back the notes at par if the stock price is higher than 12.75. I'm no expert in this either but it seems like nothing will happen with these notes for a few years. Earnings are coming soon so we will see what they have to say.
These guys keep signing on after all their other opportunities go away. They stay a few years, collect their guarantees, and poof - they're gone. Sometime this year they will have a good Clearpath quarter which will confound the analysts as usual.