IN THE PAPERS
In The Papers 22 May
22-05-2009
by Sylvia Leatham
Lenovo swings to a loss | Microsoft cancels antitrust hearing
The Irish Times says that Irish games software company Havok is likely to choose San Francisco or Dublin to locate a team that will develop a software platform for the next generation of games consoles. The firm, which is now owned by chipmaker Intel, was being lobbied by development agencies in Britain, Canada and Singapore but looks set to locate the team at one of its existing development centres. However, David O'Meara, managing director, has cautioned that the effective tax rate of 55 percent in Ireland does not make it an attractive location for top software developers.
The paper also reports that business software firm Sysco predicts that its software-as-a-service product, launched earlier this month, will deliver revenues of more than EUR1 million over the next two years. The ReadyDynamics.com ERP product is based on Microsoft's Dynamics business software range, which includes a customer relationship management tool.
The paper also notes that a former manager with a County Cork State-funded community development organisation who was fired after pornographic images were found on his PC has been awarded EUR1,500 compensation. An Employment Appeals Tribunal found that Eanna Dowling of Youghal was unfairly dismissed by Cumann Na Daoine Aontaithe in Youghal. The tribunal found that the participation of two members of the management committee in the final decision to remove Dowling, as well as in the disciplinary processes, "renders the dismissal procedurally unfair".
The Irish Independent reports that Education Media & Publishing Group (EMPG) is on the verge of finalising a massive restructuring of its balance sheet, which will see holders of a chunk of its USD7 billion debt turn their exposure into equity. EMPG was formed through the merger of Riverdeep in 2006 with Houghton Mifflin, and their subsequent acquisition of Harcourt Education in the US. The deal is set to be unveiled within the next couple of weeks, according to market sources.
The Irish Examiner says there was a surge in the number of firms established in the telecommunications, health and social sectors in the first three months of the year. Every other sector saw a drop in the number of new companies established in the period, meaning overall company formations were down 22.5 percent in the first quarter of the year, compared with the same period last year. There was also a 50 percent rise in the number of telecommunication companies formed.
The paper also says that from 1 July, people travelling to the US under the Visa Waiver Programme (VWP), with passports issued after October 2006, will be subject to an electronic passport requirement. Any citizen or national of a VWP member country, such as Ireland, intending to apply for admission under the VWP with an emergency or temporary passport that was issued on or after 26 October 2006, and which is not an e-passport, will be required to apply for a US visa prior to travel or to apply for a waiver when they reach the US.
The paper also says that another 400 workers at the Dell plant in Limerick are to be laid off next week as part of the phased closure of the Limerick plant. More than 450 workers were made redundant in April. The remaining 1,050 manufacturing workers and 100 services employees will lose their jobs over the next eight months as the company transfers its Limerick operation to Lodz in Poland.
According to the Financial Times, Microsoft has cancelled oral hearings in Brussels at which it was due to defend itself against potential EU sanctions over web browsers. The software giant said that it had called off the hearings, which had been set for 3-5 June, because important European antitrust officials would have been unable to attend. It also said it had asked the European Commission for alternative dates but that none had been offered. Thomas Vinje, counsel for Opera, the browser firm that brought the complaint, disputed Microsoft's claims and accused it of trying to avoid facing its critics before Commission officials.
The paper also says that PC maker Lenovo swung to an annual loss in its 2008/2009 fiscal year and predicted more pain for the current year. Net loss widened to USD264 million in the three months ended 31 March, from USD96.7 million in the preceding quarter. The performance was worse than expected by analysts, and was hit by weak demand and restructuring charges. For its latest fiscal year, Lenovo said it made a net loss of USD226 million, against a USD448 million net profit in fiscal 2007/2008.
The Wall Street Journal says that Anne Mulcahy, who led a turnaround that revived Xerox when it was near bankruptcy, is to take early retirement as chief executive, giving the job to Ursula Burns. Burns, who like Mulcahy has spent decades climbing the ranks at Xerox, will become the first African-American woman to head a Fortune 500 company, according to research group Catalyst.
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