Tom Sweeney

It's a coming of age tale….

Posts Tagged ‘United States’

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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Nortel sells its joint venture with LG Electronics for US$242M

Posted by sweens on April 29, 2010

Another piece of the former Nortel Networks empire has been sold, with the Canadian company’s interest in a Korean operation going to LM Ericsson for US$242 million.

Nortel announced the sale of its 50 per cent plus one share interest in LG-Nortel Co. Ltd., the company’s joint Korean venture with LG Electronics Inc., late Tuesday.

The agreement marks the sale of one of only a few remaining assets of Nortel, formerly Canada’s biggest information technology company and once a leading global vendor of telecommunications equipment.

Still remaining are a variety of patents and Nortel’s Passport division, which provides non-optical equipment and was a piece of the Metro Ethernet Networks division that did not sell to Ciena Corp. in a US$521-million transaction last year.

A spokeswoman for Nortel said it’s still unclear what will happen to the remaining assets, which would also include potential tax-loss recoveries that could be used by a profitable company.

“Nortel will assess other restructuring alternatives for its remaining businesses in the event it is unable to maximize value through sales,” said Nortel representative Jamie Moody in an email.

LG-Nortel was established in 2005 to provide telecommunications equipment and network solutions to customers in Korea and around the world.

The sale is subject to approval of the Ontario Superior Court of Justice and must meet certain regulatory conditions.

Earlier this month the financially battered Nortel received another extension to its creditor protection to the end of July, in order to give the fallen Canadian technology company more time to complete a court-supervised restructuring.

The company filed for court protection in the United States, Canada and other jurisdictions in January 2009, and has since sold most of its major operations to former rivals.

At its peak during the 1999-2000 technology boom, Nortel was Canada’s most valuable company after the telecom equipment maker went through several years of rapid expansion and diversification funded by debt and stock sales.

But starting in 2001 Nortel suffered a precipitous decline in sales, due to a combination of factors including the merger or demise of many of its customers, economic slowdowns and an accounting scandal.

 http://www.obj.ca/Technology/2010-04-21/article-1032689/Nortel-sells-its-joint-venture-with-LG-Electronics-for-US%24242M/1

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