Enterprise headlines and summaries, 2009-03-17

  • ‘Only 10-11 serious contenders seen bidding for Satyam’
    Mr P.K. Agarwal, President (Research) of Bonanza Portfolio, felt that the bidding process was not transparent. “It is a shot in the darkness. In the absence of restated figures, how can one really assess the health of the company? The average investor is kept in the dark and is completely clueless on what is happening. How can that be a transparent process,” he said. “It will be difficult to analyse the status of the company in the absence of any knowledge of the financials or liabilities,” he added.
  • `TCS, Infosys, Wipro sales to drop’
    Organic revenue may decline as much as 20 per cent for the year starting April 1, the analysts wrote in a March 11 report. “We expect the coming quarters to bring further erosion of demand for Indian IT vendors’ services,” the analysts wrote. “It is too early to look for a revival.” Customers from Citigroup Inc to Boeing Co are among companies that are facing slowing earnings growth amid the financial crisis and global recession.
  • Satyam gets ‘adequate bid response’
    The Economic Times said almost 130 companies had expressed interest in buying Satyam, including multinationals IBM, Fidelity Investments and buyout specialist KKR. A Satyam spokeswoman declined to confirm the reports.
  • Enterprise Server Segment Takes a Beating
    The latest data from Gartner Inc. and IDC paints a dismal picture of IT spending in general and the server market in particular. Both market watchers see server sales plummeting — even as IDC revised its global IT spending forecast (yet again) down to 0.5 percent growth. According to Gartner, Q4 server unit shipments dipped by double digits, plunging 11.7 percent from their year-ago total; server revenues plummeted by 15.1 percent on a year-over-year basis. IDC’s numbers tell a largely similar story, with global unit shipments of servers down by a near-identical 12.0 percent and server revenues off by 14 percent.
  • How Much Does Each 20+ Notable Tech Companies Earns A Second?
    16. Oracle Corporation – Earnings Per Second: $710.76 Annual Revenue: $22.43 billion
  • Why Tech Won’t Lead The Next Bull Market
    The problem is that the current crop of publicly traded tech companies is getting long in the tooth, and the companies at the cutting edge of tech aren’t public, nor are they likely to be anytime soon. When Microsoft, Intel, Cisco, Apple, Oracle and Yahoo all came public it was a long, long time before they were household names. But they were mostly legitimate businesses, with sales and profits early on (Yahoo not so much). This is the opposite of the current situation in tech. In the Internet sector, for example, Facebook is arguably the one unalloyed post-Google hit. But despite its ubiquity, it’s not obvious that it’s going to be a great business. By the time Facebook goes public, if it eventually does, it may have already taken a down VC round, while fending off scrappier, upstarts.
  • As Growth Slows, Ex-Allies Square Off in a Tech Turf War
    Since Cisco’s core networking markets began slowing in 2005, it has taken on the likes of H-P, Microsoft Corp. and International Business Machines Corp. It is also picking new fights as it expands into home electronics and entertainment systems for sports stadiums. Cisco Chief Executive John Chambers says the company expects to deploy its hoard of cash during the economic downturn to expand further into areas where it hasn’t historically competed. In February, the San Jose, Calif., company took on $4 billion in debt in part to add to its war chest for acquisitions. “The fact that we have $29.5 billion gives us a huge competitive advantage,” Mr. Chambers said in an interview just before raising that capital. “Cash is king, queen and the royal family.” Cisco’s new rivalry with H-P provides a particularly good window into the industry’s latest offensives. As Cisco moves onto H-P’s territory, H-P is stepping up its own investments in networking gear that competes with Cisco’s.
  • JDA to Buy Back Shares as Retailers Hope for an Uptick in 2009
    JDA, whose specialty remains software used by retail store chains (with some supply chain expertise for process manufacturing thanks to the 2006 acquisition of Manugistics), also lost two big-name retail customers over the last few months: Circuit City and Mervyn’s, both of which declared bankruptcy and shut down operations. Both Circuit City and Mervyn’s were also sizable AS/400 shops, and had been featured in JDA marketing materials over the years. While things likely will get worse before they get better, JDA CEO Hamish Brewer and CFO Kristen Magnuson didn’t have the luxury of waiting for the economy to improve; they felt the need to make the JDA’s stock more attractive to investors in the short term. To that end, the company announced a one-year plan to buy back up to $30 million worth of stock on the open market.

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