Tom Sweeney

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Posts Tagged ‘Kanata’

Zarlink turnaround continues as revenue targets exceeded

Posted by sweens on July 29, 2010

Kanata-based Zarlink Semiconductor beat its revenue targets by 18 per cent year-over-year in first-quarter results announced on Thursday.

The firm’s revenues reached $58.7 million, which exceeded their earlier revenue guidance of between $57 million and $58.7 million.

Zarlink stated this was due to “increasing customer demand across all core segments of the business,” particularly in communications products, where revenue grew by $3.9 million, and medical products, up $1.3 million.

Basic earnings were at $0.08 per share and $0.07 per diluted share.

Zarlink earlier sold its optical-products unit, which generated net proceeds of $13.5 million.

The firm said it expects to see more demand for its next-generation carrier chipset products, which includes voice-over-broadband and new efficiencies in wireless to improve the speed.

Customers such as Ciena Corp. and Teias Networks have integrated Zarlink’s ClockCenter timing platform into their video products, allowing them to lower power consumption and simplify the design, Zarlink stated.

“Q1 was a very strong start to fiscal 2011,” stated president and chief executive Kirk Mandy.

“While capacity concerns are impacting the global semiconductor industry, we are working closely with our foundry partners to ensure we continue to meet delivery commitments as end-market demand for our products escalates.”

As part of its work beyond semiconductor, the company grew its medical revenues to $6.6 million, from $5.3 million in the fourth quarter of fiscal 2010.

The money came from shipments of wireless radio modules that were allowed for medical applications after approvals from the United States’ chief medical approvals body, the Food and Drug Administration.

However, year-over-year revenue fell from $9 million in Q1 2010 to the $6.6 million posted in Q1 2011.

Zarlink further made the following forecasts for Q2 2011:

– Revenue between $58.5 million and $60.5 million;

– Gross margins between 50 per cent and 51 per cent;

– Operating expenses between $20.5 million and $21.5 million, excluding amortization of intangibles;

– Q2 earnings of $0.03 to $0.05 per share, excluding foreign exchange fluctuations.

http://www.obj.ca/Technology/2010-07-29/article-1631108/UPDATE%3A-Zarlink-turnaround-continues-as-revenue-targets-exceeded/1

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Layoffs at March Networks slash 7% of global workforce

Posted by sweens on June 8, 2010

On the eve of announcing its fourth-quarter results, March Networks (TSX:MN) confirmed Tuesday that it recently laid off seven per cent of its global workforce – a total of 20 employees out of about 250 people.

“It consists of strategy or transitioning the March business into more sales and marketing activities, and it reflects how the business is moving more into a software sphere,” said Simon Gwatkin of the company’s investor relations, when contacted by OBJ.

Mr. Gwatkin did not release any local numbers or what sectors were affected, although a source told OBJ that at least one Ottawa engineering employee was downsized.

As of February 2010, after several rounds of layoffs, March employed 160 people in Ottawa, according to the latest edition of Ottawa Technology Magazine.

Also in February, March released its Q3 results and said the weak showing was due to poor “sales visibility”, particularly in the U.S. and Dubai, and added the company had not met investor earning expectations for the first nine months of its fiscal year.

At the time, the Ottawa-based company — which deals in digital surveillance — said it had revenues of $20 million for the quarter ended Jan. 31.

This was a decrease of 15.2 per cent from Q1 2008 and broadened the firm’s net loss from $3.52 million or 20 cents a share to $1.26 million or seven cents a share.

“In spite of the economic challenges and deferred capital spending within many of our vertical markets, the company has experienced year-to-date revenue growth in the commercial industrial market,” stated March Networks CEO Peter Strom at the time.

“We continue to invest in R&D and technologies that address the evolving needs of customers in our key vertical markets in order to support revenue growth.”

Q4 financials will be released at the end of trading day on Wednesday.

http://www.obj.ca/Technology/2010-06-08/article-1233109/Layoffs-at-March-Networks-slash-7%25-of-global-workforce/1

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