Source: bloomberg.com
Oracle Corp. agreed to buy Sun Microsystems Inc. for about $7.4 billion in cash, swooping in after the server maker’s talks to be acquired by International Business Machines Corp. failed.
Oracle will pay $9.50 a share, 42 percent more than Sun’s closing price on April 17. Oracle plans to make Sun a profitable part of its business and said the purchase will add $1.5 billion to operating earnings, excluding some items, in the first year.
Tuesday, April 21, 2009
Infosys, new openings
Infosys to add 20,756 seats this fiscal year
Source: mydigitalfc.com
Infosys Technologies has decided to go ahead with its ongoing expansion plans despite the company not being able to predict back-ended growth at the end of the fiscal.
The expansion was already in the pipeline, but it was unclear whether it would be completed in time because of the recessionary impact.
However, the company has now indicated that the gloomy revenue predictions will not hit expansion. Most of the expansion will happen in Pune, Chennai and Hyderabad. In Chennai it is adding 8,500 seats, in Pune 2,831 and Hyderabad 2,600. There are no new infrastructure projects planned though.
This year, Infosys will spend Rs 650 crore for the expansions, though just half of the Rs 1,350 crore it spend in FY09.
Infosys board member T V Mohandas Pai said that the company expects to add 20,756 seats nationally during this fiscal taking its total seat capacity to 1,15,000 seats. It stood at 95,000 at end of FY09.
These expansion projects in Pune, Chennai, Hyderabad, Mysore and others were mostly taken up in FY08 and were postponed due to various factors including rise in cement prices and construction delays. A majority of the budget expenses for these projects have already been put aside in previous fiscals, an official said.
Shibulal, however, said that things are getting tougher for the IT player and that it is undertaking this expansion plan despite the financial environment. “Infosys does not see a turn around happening evening during March next year,” he said. The company has given revenue guidance in single digits for the first time.
While a few of the company’s clients has fixed its budgets for the year, a few of them have further deferred it, according to a company official who did not want to be identified. While AT&T is likely to decide on the budget this month, a few other US clients have not frozen the budgets yet.
Infosys Technologies has decided to go ahead with its ongoing expansion plans despite the company not being able to predict back-ended growth at the end of the fiscal.
The expansion was already in the pipeline, but it was unclear whether it would be completed in time because of the recessionary impact.
However, the company has now indicated that the gloomy revenue predictions will not hit expansion. Most of the expansion will happen in Pune, Chennai and Hyderabad. In Chennai it is adding 8,500 seats, in Pune 2,831 and Hyderabad 2,600. There are no new infrastructure projects planned though.
This year, Infosys will spend Rs 650 crore for the expansions, though just half of the Rs 1,350 crore it spend in FY09.
Infosys board member T V Mohandas Pai said that the company expects to add 20,756 seats nationally during this fiscal taking its total seat capacity to 1,15,000 seats. It stood at 95,000 at end of FY09.
These expansion projects in Pune, Chennai, Hyderabad, Mysore and others were mostly taken up in FY08 and were postponed due to various factors including rise in cement prices and construction delays. A majority of the budget expenses for these projects have already been put aside in previous fiscals, an official said.
Shibulal, however, said that things are getting tougher for the IT player and that it is undertaking this expansion plan despite the financial environment. “Infosys does not see a turn around happening evening during March next year,” he said. The company has given revenue guidance in single digits for the first time.
While a few of the company’s clients has fixed its budgets for the year, a few of them have further deferred it, according to a company official who did not want to be identified. While AT&T is likely to decide on the budget this month, a few other US clients have not frozen the budgets yet.
Infosys
Infosys Australia sends more work offshore
Source: itNews
Infosys Australia has revealed it is sending a greater proportion of its work offshore as it reported a decline in locally-accounted revenues.
Infosys Australia, the local operations of Indian-based outsourcer Infosys Technologies Ltd, has reported revenues of US$119 million for the 12 months to March 2009, down from the US$139 million tabled the prior year.
But Infosys Australia managing director Jackie Korhonen protested that the statutory results reported for Infosys Australia are not an accurate representation of the revenues the Australian operations of the Indian company earn.
Infosys Australia has revealed it is sending a greater proportion of its work offshore as it reported a decline in locally-accounted revenues.
Infosys Australia, the local operations of Indian-based outsourcer Infosys Technologies Ltd, has reported revenues of US$119 million for the 12 months to March 2009, down from the US$139 million tabled the prior year.
But Infosys Australia managing director Jackie Korhonen protested that the statutory results reported for Infosys Australia are not an accurate representation of the revenues the Australian operations of the Indian company earn.
Satyam
Satyam: no layoffs now, but salary cuts possible
Source: Indian Express Finance and Yahoo Finance
Tech Mahindra chairman Anand Mahindra on Monday ruled out immediate job losses among the 45,000-odd Satyam employees but added that an integration team "is already in place in Hyderabad to decide on the staff strength" for the acquired company. Speaking at a press conference after the first detailed meeting with the staff of the company taken over by Tech Mahindra last week, he said, "Our immediate plan would be to retain current customers, win back businesses and retain the key 100 associates."
The plans also include finding a CFO for Satyam, said Vineet Nayyar, CEO of Tech Mahindra. "We are on the lookout for a CFO, who would be decided in the next few weeks." One of the first tasks of the new incumbent could be asking for a salary cut of at least 10% across all categories, a source close to the company said.
Chairman of the government-appointed board, Kiran Karnik, said, "One cannot say anything on layoffs now. A list of key 100 employees, which was drawn by AS Murthy, and who were responsible to get businesses even during the crucial period after Raju's disclosure, has been given to Tech Mahindra and (they) have been asked to retain them for an year."
Karnik also said that more clarity about the company's financials would be known once the 20% open offer announcement is made on Tuesday and also after the restatement of accounts.
Tech Mahindra has deposited the Rs 1,756 crore towards its 31% stake on Monday. It also put Rs 1,154 crore for public offer in a separate escrow account.
Mahindra said he aims to operate Satyam as a stand-alone unit. He said Tech Mahindra now plans to expand in other verticals, including financial services, manufacturing and healthcare. Nayyar said CEO AS Murthy and Ram Mynampati would "remain with Satyam."
Mahindra's latest acquisition could, meanwhile, trigger a possible exit of British Telecom from Tech Mahindra. Analysts say Satyam acquisition could be a risk BT unwilling to take on. A Tech Mahindra official told FE, "We do not comment on market speculation."
Richard Wright, director of corporate communications and PR, Asia Pacific at BT Global Services, said, "We constantly review our investments, but there are no initials at the moment".
Tech Mahindra chairman Anand Mahindra on Monday ruled out immediate job losses among the 45,000-odd Satyam employees but added that an integration team "is already in place in Hyderabad to decide on the staff strength" for the acquired company. Speaking at a press conference after the first detailed meeting with the staff of the company taken over by Tech Mahindra last week, he said, "Our immediate plan would be to retain current customers, win back businesses and retain the key 100 associates."
The plans also include finding a CFO for Satyam, said Vineet Nayyar, CEO of Tech Mahindra. "We are on the lookout for a CFO, who would be decided in the next few weeks." One of the first tasks of the new incumbent could be asking for a salary cut of at least 10% across all categories, a source close to the company said.
Chairman of the government-appointed board, Kiran Karnik, said, "One cannot say anything on layoffs now. A list of key 100 employees, which was drawn by AS Murthy, and who were responsible to get businesses even during the crucial period after Raju's disclosure, has been given to Tech Mahindra and (they) have been asked to retain them for an year."
Karnik also said that more clarity about the company's financials would be known once the 20% open offer announcement is made on Tuesday and also after the restatement of accounts.
Tech Mahindra has deposited the Rs 1,756 crore towards its 31% stake on Monday. It also put Rs 1,154 crore for public offer in a separate escrow account.
Mahindra said he aims to operate Satyam as a stand-alone unit. He said Tech Mahindra now plans to expand in other verticals, including financial services, manufacturing and healthcare. Nayyar said CEO AS Murthy and Ram Mynampati would "remain with Satyam."
Mahindra's latest acquisition could, meanwhile, trigger a possible exit of British Telecom from Tech Mahindra. Analysts say Satyam acquisition could be a risk BT unwilling to take on. A Tech Mahindra official told FE, "We do not comment on market speculation."
Richard Wright, director of corporate communications and PR, Asia Pacific at BT Global Services, said, "We constantly review our investments, but there are no initials at the moment".
Monday, April 20, 2009
Sony Ericsson to cut 2,000 more jobs
Sony Ericsson Mobile Communications Ltd, the mobile-phone venture of Sony Corp and Ericsson AB, said it will cut an additional 2,000 jobs to revive profit amid falling demand.
The measure will reduce costs by 400 million euros ($524 million) annually by mid-2010 and cost 200 million euros to implement, Sony Ericsson said in a statement. It follows a plan announced in July to slash 2,000 positions to save 300 million euros, which has been completed, and another unveiled in January to reduce costs by 180 million euros by the end of 2009.
Sony Ericsson reported its third straight quarterly loss today after it slipped to fourth place in global handset shipments at the end of last year. The London-based company has suffered as consumers snapped up touchscreen models from competitors such as Apple Inc with its iPhone.
The measure will reduce costs by 400 million euros ($524 million) annually by mid-2010 and cost 200 million euros to implement, Sony Ericsson said in a statement. It follows a plan announced in July to slash 2,000 positions to save 300 million euros, which has been completed, and another unveiled in January to reduce costs by 180 million euros by the end of 2009.
Sony Ericsson reported its third straight quarterly loss today after it slipped to fourth place in global handset shipments at the end of last year. The London-based company has suffered as consumers snapped up touchscreen models from competitors such as Apple Inc with its iPhone.
Google first-quarter profits up 8.9 percent
Internet search powerhouse Google bucked the economic downturn in the first quarter, posting an 8.9-percent rise in profits as revenues climbed 6.2 percent.
The Silicon Valley-based online advertising giant earned $1.42 billion in the quarter, up from $1.31 billion in the same quarter a year ago. Revenue rose 6.2 percent to $5.51 billion but marked a 3-percent drop from the fourth quarter - the first time that the internet search company saw a decline in revenue between two consecutive quarters.
The Silicon Valley-based online advertising giant earned $1.42 billion in the quarter, up from $1.31 billion in the same quarter a year ago. Revenue rose 6.2 percent to $5.51 billion but marked a 3-percent drop from the fourth quarter - the first time that the internet search company saw a decline in revenue between two consecutive quarters.
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