Tom Sweeney

It's a coming of age tale….

Archive for April, 2010

BreconRidge to be acquired by Sanmina-SCI for $53M

Posted by sweens on April 29, 2010

Manufacturing giant Sanmina-SCI has agreed to buy Ottawa-based competitor BreconRidge Corp. for up to $53 million.

“This acquisition strengthens both our position and our customer base in radio-frequency/microwave and micro/opto-electronic technologies,” said Sanmina-SCI chief executive Jure Sola in a statement. “Upon completion of this transaction, Sanmina-SCI will be the leading electronics manufacturing services provider for these rapidly expanding leading-edge technologies.”

San Jose, Calif.-based Sanmina-SCI said in a release accompanying its second-quarter results that it has executed a definitive agreement to acquire BreconRidge, a nine-year-old, privately held contract manufacturing firm that started its life as a spinoff of Mitel Networks.

The deal, which is expected to close in the next 30 days, will see Sanmina-SCI paying up to $53 million, including equity and the assumption of certain liabilities.

The U.S. firm pointed out that BreconRidge’s current revenue run rate is about $45 million per quarter, and it said it expects to increase that figure over the next 12 months to between $250 million and $300 million per year.

Sanmina-SCI earned total revenues of $5.18 billion in its fiscal 2009 year, down from $7.2 billion a year earlier, although its full-year loss of $136.2 million or $1.65 per share was also narrower than its loss of $511.3 million or $5.78 per share a year earlier.

In its second-quarter earnings, it said revenues rose 27.8 per cent to $1.53 billion, and it managed to improve its bottom line to record profits of $10 million or 12 cents per share, from a loss of $38 million or 45 cents per share a year earlier.

Sanmina-SCI said it was particularly interested in the BreconRidge team’s expertise in advanced broadband technologies that offer speeds of more than 100 gigabits per second, and in wireless, radar and satellite applications.

The firm also highlighted BreconRidge’s manufacturing operations in Canada and China as a key factor for the acquisitions.

BreconRidge had 500 local employees at last count, according to the Ottawa Technology Magazine, while Sanmina-SCI had about 75 Ottawa workers.
Krystle Chow
Ottawa Business Journal

http://www.obj.ca/Technology/2010-04-27/article-1040584/BreconRidge-to-be-acquired-by-Sanmina-SCI-for-%2453M/1

Posted in News | Tagged: , , , , , | Leave a Comment »

Nortel sells its joint venture with LG Electronics for US$242M

Posted by sweens on April 29, 2010

Another piece of the former Nortel Networks empire has been sold, with the Canadian company’s interest in a Korean operation going to LM Ericsson for US$242 million.

Nortel announced the sale of its 50 per cent plus one share interest in LG-Nortel Co. Ltd., the company’s joint Korean venture with LG Electronics Inc., late Tuesday.

The agreement marks the sale of one of only a few remaining assets of Nortel, formerly Canada’s biggest information technology company and once a leading global vendor of telecommunications equipment.

Still remaining are a variety of patents and Nortel’s Passport division, which provides non-optical equipment and was a piece of the Metro Ethernet Networks division that did not sell to Ciena Corp. in a US$521-million transaction last year.

A spokeswoman for Nortel said it’s still unclear what will happen to the remaining assets, which would also include potential tax-loss recoveries that could be used by a profitable company.

“Nortel will assess other restructuring alternatives for its remaining businesses in the event it is unable to maximize value through sales,” said Nortel representative Jamie Moody in an email.

LG-Nortel was established in 2005 to provide telecommunications equipment and network solutions to customers in Korea and around the world.

The sale is subject to approval of the Ontario Superior Court of Justice and must meet certain regulatory conditions.

Earlier this month the financially battered Nortel received another extension to its creditor protection to the end of July, in order to give the fallen Canadian technology company more time to complete a court-supervised restructuring.

The company filed for court protection in the United States, Canada and other jurisdictions in January 2009, and has since sold most of its major operations to former rivals.

At its peak during the 1999-2000 technology boom, Nortel was Canada’s most valuable company after the telecom equipment maker went through several years of rapid expansion and diversification funded by debt and stock sales.

But starting in 2001 Nortel suffered a precipitous decline in sales, due to a combination of factors including the merger or demise of many of its customers, economic slowdowns and an accounting scandal.

 http://www.obj.ca/Technology/2010-04-21/article-1032689/Nortel-sells-its-joint-venture-with-LG-Electronics-for-US%24242M/1

Posted in Recruitment | Tagged: , , , , , , , | Leave a Comment »

RIM faces tough challenge to impress at annual symposium

Posted by sweens on April 29, 2010

The heat is on BlackBerry-maker Research In Motion as the company heads into its annual industry showcase of new products and services in what will perhaps be the most competitive year yet for smartphones.

The Waterloo, Ont.-based company opens a three-day annual showcase on Tuesday in Orlando, Fla., and it’s expected to update some devices, add new products and partnerships, and perhaps offer a few surprises.

There are rumours that RIM will announce an updated web browser, designed to compete with Apple’s popular iPhone, and perhaps even a new operating system.

“In the evolution of the company, this is going to be a very important year, for sure,” said Neeraj Monga, an analyst for Veritas Investment Research Corp.

“People are either going to give credit to the company that it can out-compete and out-innovate Apple, or they’re going to give up and say ‘BlackBerry had a great run, but it’s another one of those technology businesses that has matured and just cannot keep up with its innovative competitors.’”

Whether this year is literally such a sink-or-swim scenario for RIM is debatable, but it’s hard to deny the company is facing some of its fiercest competition yet.

In the past year, both the iPhone and Google’s Android smartphones have gained notable share in North America’s smartphone market, an area that was once clearly dominated by RIM’s BlackBerry products.

While RIM was able to add on its solid base within the business and government communities by adding consumer-friendly features to various BlackBerry models, RIM has been under plenty of scrutiny.

Critics say RIM has been slow to develop a new web browser for its devices that can compete with some of the more user-friendly designs on the market.

However, the highly competitive market is more complex than simply a new browser, as smartphone pioneer Palm learned last year when it unveiled a new browser design to critical raves.

Palm’s stock has fallen to multi-year lows, and recent reports have suggested that Palm has hired Goldman Sachs to help shop the company to potential buyers for about US$1.1 billion.

Despite the turbulence in smartphones, which usually include keys for text entry as well as phone calls, BlackBerrys remain the dominant smartphone in North America, and among the biggest sellers globally.

Broadpoint AmTech analyst Mark McKechnie said there are two ways to digest the company’s position in the market.

“They’re certainly showing tremendous growth outside of the U.S. as they bring smartphones to lower price points,” he said from Orlando, where he planned to attend the symposium.

“We need to see them bring the fight back here to the U.S. and regain their positioning at the high-end (or higher-priced devices).”

While most of RIM’s plans will not be unveiled until the conference gets underway, the company offered up its usual tease of product announcements ahead of the launch.

The highlights included a 3G version of its Pearl device and a BlackBerry Bold that works on CDMA network carriers.

Most of the most-anticipated announcements are expected when co-CEO Mike Lazaridis delivers a keynote address during the conference. The company’s stock price will likely show whether investors are impressed.

On Monday morning, RIM’s stock was down 80 cents to $69.78 on the Toronto Stock Exchange, off a 52-week high of 95 and low of $58.64.

In an interview ahead of the conference, co-CEO Jim Balsillie defended the company’s position on the market.

“Wind the clock back and I can give you 10 other companies that were put forward that were just overwhelmingly formidable for us to even consider competing against,” Balsillie said.

“There’s always somebody that somebody’s going to put out.”

- By David Friend, The Canadian Press

http://www.obj.ca/Technology/2010-04-26/article-1039167/RIM-faces-tough-challenge-to-impress-at-annual-symposium/1

Posted in Recruitment | Tagged: , , , , , , , , , , , | Leave a Comment »

Procom – Recognized by Branham 300 for Industry Leadership

Posted by sweens on April 1, 2010

 Branham Group published its annual Branham 300 List today and Procom was recognized as a leader in its industry for another consecutive year.  

On the list announced today, Procom was named 6 on the list of the Top 25 It Professional Services Companies and 22 on the list of the Top 250 Canadian Tech Companies, taking the number one spot amongst its competitors.

Published annually in Backbone Magazine and circulated in the National Post, the Branham 300 List recognizes Canada’s best performing Information Technology firms. The rankings, which are based on revenue growth, recognize Canadian IT firms for their strong performance and industry leadership. It is considered one of the premier industry performance metrics.

“Recognition by Branham is a significant honour” says Procom’s President & CEO Frank McCrea. “We believe that our commitment to integrity, flexibility and responsiveness has created a strong foundation upon which our company is built and it is this strong foundation that allows Procom to leverage its core competencies and experience continued growth.”

Procom – Procom Consultants Group is a leading IT Staffing & Project Solutions firm in North America and for 4 consecutive years has been named one of the 50 Best Managed Companies in Canada. Procom has 12 office locations, over 2800 IT Consultants and is responsible for the delivery of hundreds of IT projects annually. Procom offers its clients customized services in IT Staffing, Payroll Administration, and IT Project Solutions.

For more information visit: http://www.procom.ca or www.branham300.com

For additional information please contact:

Allison McCrea
Procom Consultants Group Ltd.
1-800-461-4878 ex 600
allisonm@procom.ca

Posted in News | Tagged: , , , , , , , , , , , , | 1 Comment »

 
Follow

Get every new post delivered to your Inbox.

Join 135 other followers