IN THE PAPERS
In The Papers 24 April
24-04-2009
by Sylvia Leatham
Smart seeks buyer | Topfer threatens to withdraw BCM bid
The Irish Times reports that Environment Minister John Gormley's decision to abandon electronic voting has been criticised by the Opposition, who say he took too long to scrap the EUR51 million system. The minister announced his decision at University College Cork on Thursday, saying the cost of adapting the machines to make election results verifiable would come to EUR28 million, a sum which could not be justified in the current economic climate. He also said the issue of public confidence in the system remained a problem, but he refused to accept that his predecessors as ministers for the environment, Noel Dempsey and Martin Cullen, were guilty of a huge waste of taxpayers' money.
The paper also says that businessman Brendan Murtagh has engaged advisers to find a buyer or strategic partner for Smart Telecom. Murtagh is prepared to sell all or part of the business and will also consider possible merger or joint venture opportunities for some or all of the business, in an attempt to generate some value from the company. Sources say the company could have a value of EUR25 to EUR30 million as an infrastructure player but the credit crunch and recession will make it difficult to secure a deal. A number of telecoms and media groups have been contacted in relation to the process, including Magnet Networks, Digiweb, UPC Ireland, Sky and some of the mobile operators.
The paper also notes that UCC has become the first designated iPhone Developer University campus in Ireland. The programme, which supports third-level institutions that want to incorporate developing for the iPhone and iPod Touch into course work, has been running for over a year in the United States, but only opened up for international applicants in January. "Within an hour of the announcement, I had an application in for UCC straight away. By February, we had developer status," said UCC computer science lecturer David Murphy.
The same paper says that University of Limerick (UL) claims to have found a formula to help it beat international benchmarks for commercialising research ideas. Since 2003 the university made 91 invention disclosures, filed 50 patent applications and licensed seven times intellectual property it had created. UL anticipates that by 2014 this will have increased to 130 invention disclosures, 65 patent applications and 33 licence agreements. It also expects to treble the amount of spinout companies created through research at UL. Prof Brian Fitzgerald, vice-president of research at UL, said the university's relatively small structure means it can be flexible in responding to changing market needs, and that UL fosters innovation by having researchers from different backgrounds working together.
The same paper notes that travel review site Boo.com has signed a deal with US-based Eventful.com to provide its users with access to a global database of events. Eventful.com's database has information on over 5 million events throughout the world including music and concerts, sporting events, theatre, festivals and parades. Under the deal, Boo.com users will be able to view information relating to any event, including venue information, event descriptions and details, information about the performers and photos.
The paper also says that Dell has lost its grip on the top spot for Irish PC sales. Provisional first-quarter data from market research firm IDC shows that HP is now the biggest-selling PC brand in Ireland, with Dell in the number two position. The data show that PC sales in the Irish market collapsed in the first three months of this year, with just 124,835 units being shipped, a drop of 37.9 percent compared to a year ago.
The paper also reports that Australian financier Rob Topfer has threatened to withdraw his unsolicited takeover bid for Eircom parent Babcock & Brown Capital (BCM) if the company's shareholders approve a proposed remuneration and termination package for its new chief executive. At a meeting next Monday, BCM shareholders will vote on a remuneration package for BCM chief Andrew Day, and on a plan to sever the company's link with Babcock & Brown. Day's employment agreement includes a basic salary of AUD900,000. He will also receive a short-term incentive payment worth up to 65 percent of his base salary if he achieves certain performance-related targets, and he stands to receive 1.5 million 'share performance rights' in BCM, which will vest if there is a change of control of BCM.
In related news, the Irish Independent reports that Rob Topfer has said his consortium's proposals for BCM would not directly affect Eircom. "The management and employees of Eircom are not affected by the proposal for BCM," he said. However, he said that while mobile arm Meteor was well run, the telecoms firm needed to be supplemented by a new focus on mobile by a "team experienced in that space". Topfer added that although his proposal would not affect Eircom, "as management of BCM we recognise that we would need to take steps to prevent Eircom from breaching its covenants". Eircom has close to EUR4 billion in debt.
According to the Wall Street Journal, Microsoft has recorded a 32 percent drop in profit and the first decline in quarterly revenue in its 23-year history as a public company. Four of Microsoft's five business units posted lower sales, including a 16 percent decline in its Windows business. Microsoft executives blamed the drop on a general pullback in spending on PCs by both consumers and businesses. Total revenue fell 5.6 percent to USD13.65 billion in the quarter, down from USD14.45 billion a year earlier. Net income came in at USD2.98 billion, or USD0.33 a share, down from USD4.39 billion, or USD0.47, in the year-earlier period. The latest results included a USD420 million charge stemming from impairments to investments and a USD290 million charge from severance payments related to layoffs.
The paper also says that Amazon has bucked the economic downturn by reporting a 24 percent increase in first-quarter profit. The online retailer said net income grew to USD177 million, or USD0.41 a share, from USD143 million, or USD0.34 a share, in the year-earlier quarter. Sales surged 18 percent to USD4.89 billion. Looking ahead, however, the company said its operating income for the current quarter could decline between 12 percent and 49 percent from a year ago.
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