Radius Inc, Sunnyvale warns that it expects to report a substantial loss for its fourth quarter to September 30 – and it is not likely to be any coincidence that the company just appointed a new finance chief: the company blames the expected loss on lower-than-expected gross margin on its graphics, video and systems products; […]
Radius Inc, Sunnyvale warns that it expects to report a substantial loss for its fourth quarter to September 30 – and it is not likely to be any coincidence that the company just appointed a new finance chief: the company blames the expected loss on lower-than-expected gross margin on its graphics, video and systems products; the company named Dennis Dunnigan chief financial officer and vice-president of finance to replace Robert Saltmarsh, who left the company to pursue other career opportunities.
Japanese trading giants Mitsubishi Corp and Itochu Corp have each taken a 1.5% equity stake RPG Cellular Services Ltd, which has the franchise to provide cellular phone services in Madras, India from September: the firm, capitalised at $322,000, is owned by the RPG Group Pvt Ltd, Vodafone Group Plc, Airtouch Communications Inc and the two traders; the company is Itochu’s second Indian telecommunications investment this year – it already backed RPG Paging Services.
Japanese trading company Mitsui & Co and Nynex Corp are planning a major investment in Indonesian telecommunications company, PT Excelcom, and will form a joint venture with the Rajawari Group’s Telekomindo subsidiary to lay a nationwide fibre optic cable network and develop a nationwide mobile telephone service: Mitsui will take a 4.2% stake and the Nippon Keizai Shimbun reckons Nynex would take 23.1%, with the remainder shared by Telekomindo and other local concerns; Mitsui said that total investment of up to $1,028m is a possibility.
Geotek Communications Inc has completed the sale of its Communications Products segment, consisting of its 99% interest in Bogen Corp and 67% of Speech Design GmbH, to European Gateway Acquisition Corp, a company formed for the purpose, which has now renamed itself Bogen Communications International Inc: Geotek gets about 64% interest in Bogen International, $7m in cash and convertible promissory notes for the principal amount of $3m; it os also in line for a performance payment of up to $11m cash or Bogen International common based on future earnings of Bogen and Speech Design between now and July 1997.
The Time Warner Communications unit of Time Warner Inc has received approval from the Public Utilities Commission of Ohio to offer local phone service in 37 of the state’s 88 counties: the company said it still had to reach interconnection agreements with existing phone companies, and also to overcome the rules on competitive issues soon to be opened by the utilities commission; it aims to start the new service in the middle of 1996, but needs the agreements in place and competitive issues resolved first.
Israeli silicon foundry Tower Semiconductor Ltd has won a three-year contract from Hewlett-Packard Co under which it will increase its current commitment for wafer fabrication to Hewlett, which will be obliged to buy a pre-set amount of wafer fabrication capacity; the contract also includes transfer of a production process to Tower from Hewlett-Packard, to produce wafers for customers of both companies.
Phoenix Network Inc has bought Bright Telecom Inc, a specialist in international callback service, initially increasing Phoenix’s annual revenue by about $750,000: Bright Telecom will change its name to Phoenix Network International and be operated as an independent business unit by Phoenix Network Inc; financial details were undisclosed, but in addition, the company said it has completed a bridging loan of $6.5m, while it negotiates to roll the bridge loan into a larger private equity financing.
Ameritech Corp said it plans to add more than 500 employees in Ohio over the next three months in service and repair positions, and will invest an additional $41m in 1995 and 1996 in its infrastructure: Ameritech said it is taking the steps to address service issues res ulting from adverse weather, record levels of rainfall, and growth in orders for new services.
Northern Telecom Ltd has won a $3.7m contract to extend digital cellular coverage to the five top ci
ties of the Uzbekistan republic in the Commonwealth of Independent States: it was awarded the contract by Uzdunrobita, a joint venture between ICG Inc of Perry, Georgia and the Uzbekistan Ministry of Communications; the contract will double and more system capacity in Tashkent and see service cover extended to Bukhara and Urgench cities.
Shares in Dacom Corp, the South Korean telecommunication service provider, were up on gossip that LG Group affiliates and Tong Yang Group affiliates had been quietly buying shares in preparation for a bid, brokers said: the two groups have apparently been slowly and steadily buying stock in Dacom according to a Daewoo Securities broker, and an analyst with HG Asia said Dacom was a juicy target for the large groups because the government plans to liberalise the telecommunications industry to allow firms such as Dacom to enter into the mobile telecommunications market; the government also intends to remove the 10% ceiling on individual holdings in listed companies in 1997, which would pave the way for hostile takeovers, but the company denied that one was imminent.
Ceridian Corp’s $900m acquisition of Comdata Holdings Corp (CI No 2,736) has not sated the company’s quest for takeover targets, and it said it might be able to announce one or two more modest ones this year: the Minneapolis-based information services and defence electronics company has made about a dozen acquisitions since it was formed from the old Control Data Corp in 1992 and told Reuter it will continue seeking companies in 1996, in a bid to expand its revenues from information services; defence electronics accounted for more than 50% of revenues in 1994, but with the Comdata acquisition, that will fall to only about 38% in 1995 and should shrink further in 1996; analysts are predicting an eventual spin-off of the defence operations.
Palmer Wireless Inc has signed adefinitive agreement to buy Georgia Metronet Inc and August Metronet Inc from the GTE Mobile Communications Inc unit of GTE Corp for $160m: Georgia Metronet has almost 98% of Savannah Cellular Ltd Partnership, which holds the Federal Communications Commission licence for the Savannah, Georgia area, and August Metronet owns 100% of the licence for the Augusta area; the two markets have about 720,000 potential subscribers and operate under the Celluar One brand name.
Mannesmann Mobilfunk GmbH plans to invest a further $450m on the expansion of its D2 cellular network: the company, which is majority owned by Mannesmann AG said it has seen a 66.6% increase in subscriptions to the phone network since introducing new tariffs in April, bringing the total number of customers now connected up to 1.2m.
DeTeMobil, the mobile phone arm of Deutsche Telekom AG, said that its mobile phone business turned over $1,400m in the first half of 1995 and that it now has around 1.2m subscibers to its D1 mobile telephone network: the company said new tariffs has boosted connections to 50,000 per month and at that if the subscriber growth continued at the present rate it would have over 2m customers using its digital cellular and analogue C-Network in the next few weeks; DeTeMobile reckons that it has 50% of the German mobile communications market compared with E-Plus, which claims it has just under 100,000 subscribers.
L M Ericsson Telefon AB has agreed a $200m contract with Telecom Italia SpA to build a broadband network: the network will enable Telecom Italia to offer its customers both interactive services and Internet access; the contract went to its Italian subsidiary Ericsson Telecomunicazioni SpA and is estimated to be worth three-quarters of the total contract value; work on the network will start in the next couple of weeks, the company said.
You all know where the borders of Kashmir are incorrectly drawn – at least in the eagle eyes of the Indian government, but where do you find Cincinatti and the Carribean? One way and another, Microsoft Corp is not going to win an A in geography: the lethally misdrawn map
is in Windows95, and the Caribbean masquerades as the Carribbean, Cincinatti as Cincinnati on the weather maps on the Microsoft Network.