IN THE PAPERS
In the papers 4 March
04-03-2008
by Sylvia Leatham
Intel pares back profit forecast | Apple shares fall on analyst warnings
The Irish Times reports that Israeli pharmaceutical firm Teva is to invest EUR65 million in its Waterford plant. Read the full story on ENN.
The Irish Independent notes that Tallaght computer manual printer Microprint is to close its doors in April, with the loss of 130 jobs. The company cited declining volumes in the computer manual market, uncertainty over contracts, competition from UK-based magazine printers and a high cost-base as the key reasons for its decision to close.
The Irish Examiner reports that bookmaker Paddy Power grew its online betting turnover by one-fifth to EUR629.7 million in 2007, with online operating profit rising by 36 percent to EUR32 million. The number of customers using its internet sites last year rose by 32 percent to just over 145,000 people.
Separately, the paper says that online gambling continues to flourish in Ireland, with betting exchange Betfair having a turnover of EUR15 million in the year to April 2007, a figure expected to rise significantly. Betfair expects to double its Irish business between April of 2005 and 2008.
The paper also says that Ticketmaster is raking in money from sold-out concerts by re-selling tickets on its own auction website -- despite condemning fans for doing the same a year ago. Last year, online and box-office ticket-seller Ticketmaster threatened to invalidate any music or sporting tickets sold at inflated prices on auction websites such as eBay. But now Ticketmaster has purchased GetMeIn.com, a re-sale website allowing fans to buy and sell hard-to-find tickets for must-see events.
According to the Wall Street Journal, Mitsubishi Electric has said it will pull out of its unprofitable mobile phone business. The conglomerate, which expects to book JPY100 billion in revenue from the business in the fiscal year ending this month, said it will cease developing products. The move will result in a JPY17 billion hit. Other manufacturers are expected to follow suit.
The paper also notes that Apple's stock sank on Monday after two analysts lowered their price targets for Apple shares. Apple shares lost 2.6 percent, falling to USD121.73 on the Nasdaq after analysts from Banc of America Securities and RBC Capital Markets lowered their price targets. RBC analyst Mike Abramsky said the launch of Apple's 3G iPhone this summer could be delayed by operators' testing and fine-tuning of the product. Banc of America Securities analyst Scott Craig also lowered sales estimates for both the iPod and the iPhone in the fiscal second quarter, pointing to continuing consumer and production weakness.
The paper also reports that Intel reduced its gross profit margin forecast for the first quarter, blaming lower prices for flash memory chips. Intel said it now expects its first quarter gross profit margin to be 54 percent, plus or minus a percentage point, compared with a forecast in mid-January of 56 percent, plus or minus a couple of points. Intel's shares fell 3 percent in after-hours trading following the announcement.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 