IN THE PAPERS
In The Papers 28 October
28-10-2009
by Deirdre McArdle
Trinity team in solar storm study | Revenue drops at AOL Irish unit
The Irish Times reports that the solar physics group from Trinity College Dublin wrote software for two experiments, Swap and Lyra, to be conducted by the European Space Agency's Proba-2 satellite. The experiments will monitor solar activity and watch for the formation of solar storms, according to TCD's Dr Peter Gallagher. The satellite is set for launch next Monday.
The paper also reports on Facebook's plans to double its Irish workforce as reported by ENN.
The same paper says that Balderton Capital, the venture capital firm led by Irishman Barry Maloney, has netted USD54.9 million (EUR37 million) from the sale of its 30 percent stake in British web security software group ScanSafe. Cisco on Monday acquired ScanSafe for USD183 million in cash and 'retention-based incentives'. The deal is expected to close in 2010.
According to the same paper revenues at the Irish subsidiary of TimeWarner's AOL internet unit dropped by more than 20 percent last year to USD35.15 million. AOL Global Operations recorded a pre-tax loss of USD132,750 in 2008, compared to a profit of USD2.24 million the previous year. The company's Irish operation, based in Citywest in Dublin, develops, tests and localises applications for a number of AOL's websites and services.
The Wall Street Journal reports that business software firm SAP said net profit in the July to September period increased by 12 percent to EUR435 million, from EUR388 million a year earlier, but came in below a Dow Jones Newswires poll of 14 analysts, which forecast EUR443 million. Revenue was EUR2.51 billion, down 9.2 percent from a year earlier, missing analyst estimates of EUR2.63 billion. SAP said it now expects software and software-related services revenue to drop between 6 percent and 8 percent from EUR8.62 billion in 2008. In July, SAP forecast a 4 percent-6 percent decline.
The paper also reports that the board of IBM expanded its stock buyback program, authorising the spending of another USD5 billion. It currently has USD4.2 billion remaining from previous repurchase programs. The company said strong cash flow and a move to a richer business mix is supporting buybacks and dividends, which have totalled USD73 billion since 2003. In separate news, software firm Dassault Systems has acquired an IBM unit that sells Dassault design software for USD600 million. The sale removes one of the last vestiges of IBM's once vast applications software business.
The Financial Times writes about the insider-trading scandal that has rocked Wall Street. The paper reports that former CEO of AMD Hector Ruiz has become the most senior executive to be linked to the scandal. A complaint filed by the US attorney in Manhattan earlier this month alleged that an unnamed AMD executive had passed inside information about the company to Danielle Chiesi, a former analyst at hedge fund New Castle Partners. Ruiz, who retired from AMD last year, was the executive mentioned in the complaint, according to a person briefed on the matter. The complaint did not allege that the unnamed executive had acted illegally or had passed on the information for financial gain. AMD would not confirm that its former chief executive was the executive referred to in the US attorney's complaint, but said: "We are continuing to evaluate the matter and we are not aware of any allegation of criminal misconduct on the part of AMD or any current or former employees."
Caped Koala Studios has built a virtual world for kids, combining education and social networking 