Daily Digest 10 November

10-11-2008

by Deirdre McArdle

Circuit City files for bankruptcy | Judge orders Papermaster to stop working at Apple

Mobile operator Three Ireland posted revenue of EUR50 million for the full year 2007, double its revenue from 2006. According to accounts just filed with the Companies Office the firm also narrowed its losses for the year to EUR38.7 million, compared to EUR99.9 million in 2006. Three's operating loss for 2007 came in at EUR75.6 million, less than the EUR88 million loss reported in 2006.

Communications networking firm Nortel Network has posted third quarter losses of USD3.4 billion, or a USD6.85 per share loss, compared to profit of USD27 million, or USD0.05 per share, in the year-ago quarter. The firm's losses are largely attributable to a USD1.1 billion goodwill write-down and a USD2.1 billion deferred tax adjustment. Revenue fell to USD2.32 billion, down from USD2.71 billion a year earlier; however it was broadly in line with analysts' estimates of USD2.31 billion. Nortel attributed the revenue decline in the latest quarter to the challenging economic environment, competitive pressures and reduced spending by key carrier customers. The firm also said it plans to cut 1,300 jobs. Around a quarter of these job cuts will take place this year with the remainder being cut in 2009.

US electronics giant Circuit City has filed for bankruptcy. The firm cited "erosion of vendor confidence and consumer retreat in the face of the global economic crisis" as reasons for its Chapter 11 bankruptcy filing. According to the Wall Street Journal the retailer's lenders have agreed to loan it USD1.1 billion to keep its doors open through the holiday season. The amount available under the bankruptcy loan will be cut to USD900 million on 29 December. Just last week Circuit City announced it was to shut 155 of its US stores, as it struggled with profitability.

On Friday, US District Court Judge Kenneth Karas ruled that former IBM executive Mark Papermaster was to cease working at Apple, for now. Papermaster "will immediately cease his employment with Apple Inc until further order of this court," wrote the judge. Judge Karas is overseeing Papermaster's breach-of-contract dispute with former employer IBM. In court documents filed late last week Papermaster said that his move to become head of iPhone and iPod development at Apple does not violate a non-compete contract he signed with IBM because Apple and IBM are not competitors. Judge Karas has said he will explain his ruling in a future correspondence.

While researchers at the Medical Device Safety Institute at Beth Israel Medical Center in Boston have found that MP3 players themselves pose no discernible threat to heart pacemakers and implantable defibrillators, they have discovered that MP3 headphones can interfere with the medical devices. According to the researchers, the small magnets inside the headphones can adversely affect the devices if placed within 1.2 inches of them. The findings in this latest report are contrary to a separate report released last year which said that iPods can interfere with pacemakers.

LG has released what it says is the first 8 megapixel multimedia phone with a full touchscreen interface. The handset also features Dolby Mobile, an integrated suite of audio processing technologies which enhances music listening, according to LG. GPS and a "Jogging Buddy" program that uses GPS technology to help track workouts also feature on the phone, as well as Wi-Fi connectivity. The LG Renoir will be available through Three Ireland.