ROUNDUPS
In the papers 12 February
12-02-2003
by John Cradden
Report says O2 Ireland has a higher cost base than Vodafone | Dell terminates purchasing agreement with IBM
The Irish Independent reports that O2 Ireland has a significantly higher cost base than that of its competitor, Vodafone Ireland, according to figures filed recently at the Companies Office. O2 Ireland has reported an operating profit of EUR87 million for the year ending March 2002, compared with EUR28 million the previous year. The results give O2 an operating margin of just 13 percent compared with 19 percent at Vodafone.
The paper also reports that Iona chairman and member of the e-city working group of the Dublin Chamber of Commerce, Chris Horn, has urged greater co-ordination to reverse the declining position of Dublin's e-infrastructure relative to its international counterparts. Speaking to the Leinster Society of Accountants, Horn said that "increased collaboration between the government and the stakeholders involved" was vital to Ireland's economic competitiveness.
The Irish Times reports that Ireland's Takeover Panel is due to meet later this week to discuss the circumstances surrounding the takeover bid for Alphyra. The panel, which polices merger and acquisition activity in Irish companies, is understood to have received several representations from parties connected with the company and the deal.
The paper also reports that Eblana Photonics, the Irish broadband technology provider, expects to recruit further staff after securing a EUR4.2 million investment in a "series b" fund-raising. See the full story as reported on ElectricNews.Net on Tuesday.
The Financial Times reports that long-awaited proposals to regulate the European Union's telecoms market will be unveiled on Wednesday after a last-minute battle between Mario Monti, EU competition commissioner, and Erkki Liikanen, his colleague responsible for telecoms. Although the two men will make a show of unity, last minute changes put forward by Monti's staff to a list of "market recommendations" have toned down references to regulation of the cable industry, despite Liikanen's earlier wishes.
The paper also reports that Applied Materials, the world's largest maker of chip production equipment, reported disappointing first-quarter sales and said it would seek further cost cuts. There were no signs of an upturn in business and it expected order activity in the near term to be volatile and weak. Revenues in the second quarter would be slightly higher with earnings of USD0.01 to USD0.02 per share. The company had warned in late January that new orders had dropped significantly further than it had expected.
The Wall Street Journal reports that Dell has terminated a USD16 billion purchasing contract with IBM and greatly pared back a USD6 billion services partnership with the technology heavyweight. A Dell spokesman said the relationship with IBM ended in January, partly because several of the businesses Dell was working with at IBM had been sold.
The paper also reports that US telco Qwest is to wipe out an additional USD357 million in revenue reported during 2000 and 2001, pushing the total amount restated during that period to USD2.21 billion. The latest restatement is the fourth such move in eight months to come out of the company, which has been under investigation by the Securities and Exchange Commission and Justice Department for almost a year. Settlement talks with the government are said to have stalled.
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