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Chorus auditors warn of financial uncertainty | IBM takes cost-cutting action
The Irish Times reports that Chorus Communications' auditors have warned of uncertainty in its finances and said the cable TV company may have to call on its shareholders for funds. Auditors PricewaterhouseCoopers said there can be no certainty that company will meet the terms of its financing arrangements.
The Financial Times reports that IBM said it had taken "actions" to reduce costs but it would not confirm reports that at least 1,000 staff in the server group and around 900 in other groups had received lay-off notices. Analysts have been expecting the world's largest computer company to reduce operating costs, partly through job cuts among its 320,000 staff.
The FT also reports that Deutsche Telekom's ability to refinance its EUR67.3 billion (USD62.1 million) debt mountain has become doubtful, since a leading ratings agency voiced concerned about declining profits on its fixed-line business. Moody's Investors Service's decision to change its outlook on DT's rating, from stable to negative, put a sudden stop to the expected launch of a EUR5 billion bond by the German firm.
The paper also reports that core losses at T-Online narrowed in the first quarter, as Europe's largest Internet service provider began to come to terms with losses at its foreign operations. The German company, which is controlled by Deutsche Telekom, said losses before interest, tax, depreciation and amortisation had narrowed to EUR14 million (USD13 million) from EUR66.4 million in the same period last year.
The same paper says that SAP has announced its second US management shake-up in two years, fuelling fears that Europe's largest software group may be facing unexpectedly harsh difficulties in the region. Analysts were concerned that Wolfgang Kemna was removed as head of the US operation, and no successor had been announced, just two weeks before the company's yearly US user conference.
According to the Wall Street Journal, Microsoft is making changes to its Windows XP operating system to comply with the proposed antitrust settlement it signed with the US Justice Department last year. The changes will allow computer manufacturers and consumers to install non-Microsoft software for Web browsing, e-mail and playing music on-line.
The same paper reports that Novell said its net loss widened slightly in its fiscal second quarter, as the company took a big charge to write down acquisition-related goodwill. The software manufacturer's net loss grew to USD173.5 million from USD151.3 million in the same period last year. The company said its revenues rose to USD273.9 million from USD240.8 million.
The WSJ also reports that Charles Noski, chief financial officer at AT&T, said he will leave the firm as soon as its restructuring and break-up is complete. The telecoms company said it had begun to search for a new chief financial officer. AT&T said Noski will stay until the pending merger of AT&T Broadband with Comcast is completed, which is thought to be by the end of the year if it gains regulatory approval.
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