Tom Sweeney

It's a coming of age tale….

Archive for the ‘News’ Category

Nortel to Sell Ottawa Carling Campus to Public Works and Government Services Canada

Posted by sweens on October 19, 2010

October 19, 2010

TORONTO – Nortel Networks Corporation announced that as part of its focus on maximizing value for its stakeholders, its principal operating subsidiary Nortel Networks Limited and Nortel Networks Technology Corporation (together, Nortel) have entered into a sale agreement with Public Works and Government Services Canada (PWGSC) for the sale of Nortel’s Ottawa Carling Campus, for a cash purchase price of CDN$208 million. The sale, targeted to close at end of year, is subject to customary closing conditions as well as approval of certain governmental authorities and of the Ontario Superior Court of Justice.

The Ottawa Carling Campus is located on 370 acres of land in Ottawa’s National Capital Commission greenbelt, and is comprised of 11 interconnected buildings totaling over 2 million square feet.

The sale agreement provides for Nortel to continue to occupy parts of the Campus for varying periods of time to facilitate Nortel’s continuing work on its global restructuring including work under the transition services agreements with the various buyers of Nortel’s sold businesses. All other existing leases will be assumed by PWGSC, including leases with buyers of Nortel’s businesses. With respect to the lease with Ciena, the purchaser of the Optical Networking and Carrier Ethernet (MEN) business, Nortel is directed by PWGSC under the sale agreement to exercise, on closing, Nortel’s early termination rights under the lease, shortening the lease from 10 years to 5 years. This will result, pursuant to the lease with Ciena, in the repayment to Ciena of US$33.5 million from the escrowed sale proceeds from the MEN sale.

The sale agreement further provides that at closing title will be delivered free and clear of all encumbrances, including the charge in favour of Nortel Networks Inc. with respect to an intercompany loan agreement, under which US$75 million is outstanding as previously announced and reported.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100269828&locale=en-US&lcid=-1

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

DragonWave Q2 profits fall 78.9%

Posted by sweens on October 13, 2010

But year-to-date numbers still strong

Packet microwave radio systems supplier DragonWave Inc. reported a sharp reduction in second-quarter earnings late Wednesday as net earnings slipped to $1.2 million, compared to $5.7 million a year earlier.

Revenues were also down, falling to $27.2 million from $32.4 million in Q2 of the company’s fiscal 2010 year.

Despite the disappointing results – which come a week after one analyst advised his clients to ditch the Ottawa-based company’s shares – DragonWave president and CEO Peter Allen said he was “satisfied” with firm’s progress in strengthening its market presence and expanding its base of customers and partners.

“The global demand for mobile broadband Internet services continues to expand – we are still in the early stages of the growth potential for DragonWave mobile backhaul solutions in markets throughout the world,” Mr. Allen said in a statement.

The company’s fiscal year-to-date figures painted a more positive picture. Revenue in the first six months of fiscal 2011 was $75.9 million, a 67-per-cent increase over the previous year.

Profits more than doubled, from $3.4 million to $10.9 million.

In recent months, critics have highlighted how a single customer, wireless broadband services firm Clearwire, provides the lion’s share of DragonWave’s revenues. Clearwire recently slowed its pace of orders from DragonWave, prompting concerns from investors.

In its quarterly financial summary, DragonWave (TSX:DWI) noted it had two customers that each contributed more than 10 per cent of its revenues.

The company is forecasting $30 million in third-quarter revenues.

http://www.obj.ca/Technology/2010-10-07/article-1830603/DragonWave-Q2-profits-fall-78.9%25/1

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

Federal contracts (Sept. 27 – Oct. 1)

Posted by sweens on October 13, 2010

OBJ Staff
Ottawa Business Journal

Zylog Systems (Ottawa) Ltd.
1545 Carling Ave.
Description: Informatics professional services
Buyer: DND
$5,077,728.45

Nisha Technologies Inc.
2150 Thurston Dr.
Description: Informatics professional services
Buyer: DND
$3,376,821.11 

Calian Ltd.
340 Legget Dr.
Description: Informatics professional services
Buyer: DND
$2,994,540.14

Thales Canada
1 Chrysalis Way
Description: Underwater sound equipment
Buyer: PWGSC
$2,438,144

Ifathom Corp.
900 Morrison Dr.
Description: Informatics professional services
Buyer: DND
$999,485 

Leroux,Chauhan,Ouimet & Associes Inc.
124 O’Connor St.
Description: Other architectural and engineering services – real property
Buyer: PWGSC
$989,612.25 

Prestige Design and Construction (Ottawa) Ltd.
50 Camelot Dr.
Description: Paving contractor services (except mud jacking)
Buyer: PWGSC
$692,678.70 

TPG Technology Consulting Ltd.
887 Richmond Rd.
Description: Informatics professional services
Buyer: Agriculture and Agri-Food Canada
$594,945

IBM Canada Ltd.
340 Albert St.
Description: ADP software
Buyer: HRSDC
$479,298.90

Statel Capital Technology Partners Inc.
275 Slater St.
Description: Task-based informatics professional services (TBIPS) requirement
Buyer: Agriculture and Agri-Food Canada
$449,960.02

Dalian Enterprises Inc.
151 Slater St.
Description: ADP input-output and storage devices
Buyer: Statistics Canada
$419,727.25

Bolton Electric
5411 Canotek Rd.
Description: Humidification systems upgrades
Buyer: National Gallery of Canada
$371,350

Jolimot Inc.
460 Gréber Blvd.
Description: Translation services
Buyer: PWGSC
$277,121.25 

Senstar-Stellar Corp.
119 John Cavanaugh Rd.
Description: Alarm, signal, and security detection systems, miscellaneous
Buyer: Correctional Service of Canada
$254,565.68

Veritaaq Technology House Inc.
2327 St. Laurent Blvd.
Description: Informatics professional services
Buyer: PWGSC
$236,17 0

Rohde & Schwarz Canada Inc.
750 Palladium Dr.
Description: Electrical and electronic properties measuring and testing instruments
Buyer: Canadian Space Agency
$194,754.13

Serge F. Constant
850 Wilfrid-Lavigne Blvd.
Description: Translation services
Buyer: PWGSC
$172,500 

Version Plus
4038 Eady Crt.
Description: Translation services
Buyer: PWGSC
$161,920 

Motorola Canada Ltd.
360 Albert St.
Description: Radio navigation equipment except airborne, electrical and electronic components and spares
Buyer: Fisheries and Oceans Canada
$153,596.30

Les entreprises Marcel Rocheleau Inc.
154 rue Hillcrest
Description: Translation services
Buyer: PWGSC
$138,621

Calian Ltd.
340 Legget Dr.
Description: Informatics professional services
Buyer: PWGSC
$112,954.80

CGI Information Systems and Management Consultants Inc.
275 Slater St.
Description: $105,282.10
Buyer: Office of the Superintendent of Financial Institutions
$105,282.10

Rohde & Schwarz Canada Inc.
750 Palladium Dr.
Description: Chemical analysis instruments
Buyer: DND
$102,057.65

Pavage Inter Cite
485 Rue de Vernon
Description: Asphalt and joint sealing services
Buyer: National Capital Commission
$101,445

http://www.obj.ca/Local/For-the-Record/2010-10-13/article-1844801/Federal-contracts-%28Sept.-27—Oct.-1%29/1

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

PS skirting its own hiring rules by using temp workers, watchdog warns

Posted by sweens on September 23, 2010

By Kathryn May, The Ottawa Citizen September 21, 2010

OTTAWA — Federal departments appear to be using thousands of workers hired through temporary help agencies to circumvent their own rules and laws, says Canada’s staffing watchdog.

In a letter to a parliamentary committee, Public Service Commission president Maria Barrados flagged some of the worrisome trends that have emerged in the initial phase of the commission’s year-long probe of the government’s $300-million a year dependence on temporary-help agencies.

She said early analysis reveals “a number of patterns that suggest circumvention” of the Public Service Employment Act, which governs staffing in the public service. She cited concerns that workers are staying in temporary jobs too long and they can use these temporary postings as footholds in the public service that give them an “unfair advantage” when landing full-time positions.

“The PSC feels that temporary help workers may have an unfair advantage over other candidates in the public service processes, either through the experience they gain or through connections they make with hiring managers,” said the letter sent to the Commons government operations committee before Parliament recessed for the summer.

Critics have long argued spending on temp agencies has exploded over the years because departments rely on them to help them skirt the time-consuming hiring, language and geographic rules they have to follow when filling positions.

However, Barrados’s review is the first major study of the scope of the government’s use of agencies. She is only examining the core public service — departments under the Treasury Board umbrella. The final study will be tabled in Parliament with her annual report in early October.

Meanwhile, the Senate is also considering a motion to have its national finance committee investigate the cost and use of staffing agencies.

The government spends about $7.5 billion a year on contracts for a range of professional and special services. At $300 million, spending on temporary help agencies is a small slice, but it has grown at a much faster rate than for all other professional services and contracts.

Agencies have a stable of workers in almost any occupation who have been screened and can be placed in jobs on a moment’s notice. Workers are paid by the agencies, which in turn charge the government placement fees.

The $300-million figure is four times the amount of 20 years ago and twice the amount of 10 years ago. Nearly all of the spending is in the National Capital Region, where many department headquarters are concentrated, but only one-third of the public servants work.

Many say the growing reliance on temporary workers has only exacerbated the massive turnover in the public service, where people move from job to job.

The government has always hired temporary workers to fill in for workers who are absent or managers who need extra staff for a short-term project, to clear backlogs or to fill vacant positions while they are recruiting to fill them. Barrados acknowledges these uses are critical to help departments manage day-to-day.

The problem is this flexibility is being abused and many worry temporary positions are becoming a backdoor entry into the public service.

It’s a problem Senator Pierrette Ringuette fears is watering down the quality and stability of Canada’s public service. She is also concerned temporary agencies have become an entry for political and bureaucratic patronage.

“Are bureaucrats and politicians sending people they want to these agencies to be placed? If that is the game being played, it isn’t fair and it’s illegal,” said Ringuette.

“I think we are destroying the high quality of public services Canadians enjoy and pride ourselves on. Government is not a temporary operation, so thinking and planning that way will lead to eventual chaos.”

Ringuette argues the Public Service Commission has the technology to recruit pools of temporary workers. This way departments hire temp workers directly, pay them higher wages and avoid the fees paid to agencies acting as middlemen.

The commission’s study is aimed at getting a handle on how and why the agencies are being used, including a picture of how long the workers are staying in jobs; whether they get an unfair advantage in landing a permanent job and whether departments are using temp workers for “long-term needs” when they should be filling existing job vacancies.

The initial sampling of contracts in various departments found a “substantial number” were for longer than six months.

The longest contracts went for people filling jobs other than clerical or administrative work.

© Copyright (c) The Ottawa Citizen

Read more: http://www.ottawacitizen.com/temp+tactics+skirt/3553968/story.html#ixzz10MEdZ08r

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

Federal contracts (Aug. 30-Sept. 3)

Posted by sweens on September 17, 2010

Federal standing offers, supply arrangements and contracts recently awarded to local companies.

Thales Canada Inc.

1 Chrysalis Way

Description: Radio navigation equipment, except airborne

Buyer: DND

$7,239,212.79

Entrust Ltd.

1000 Innovation Dr.

Description: Security printing passes/cards

Buyer: DND

$764,119.62

TRM Technologies

151 Slater St.

Description: Consulting services

Buyer: Agriculture and Agri-Food Canada

$500,000

DEW Engineering and Development ULC

3429 Hawthorne Rd.

Description: Food, cooking, baking and serving equipment

Buyer: DND

$435,393

Valcom Consulting Group Inc.

85 Albert St.

Description: Engineering and technical services – weapon systems related

Buyer: DND

$358,596

Donna Cona Inc.

106 Colonnade Rd.

Description: Informatics professional services

Buyer: PWGSC

$311,608.80

Valcom Consulting Group Inc.

85 Albert St.

Description: Engineering and technical services – weapon systems related

Buyer: DND

$224,146.80

Ernst & Young LLP

100 Queen St.

Description: Internal and external audits (supply arrangement PASS)

Buyer: PWGSC

$203,595

Promaxis Systems Inc.

2385 St Laurent Blvd.

Description: Engineering and technical services – weapon systems related

Buyer: DND

$200,025

AK Global Construction & Development Inc.

680 Eagleson Rd.

Description: Refit of the Victoria Building

Buyer: PWGSC

$177,975

VCI Controls Inc.

38 Antares Dr.

Description: BACS – building automation control systems

Buyer: PWGSC

$168,452.81

IBM Canada Ltd.

340 Albert St.

Description: ADP input-output and storage devices – maintenance

Buyer: Agriculture and Agri-Food Canada

$144,622.30

IBM Canada Ltd.

340 Albert St.

Description: ADP input-output and storage devices – maintenance

Buyer: Statistics Canada

$129,858.62

http://www.obj.ca/Local/For-the-Record/2010-09-17/article-1770543/Federal-contracts-%28Aug.-30-Sept.-3%29/1

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

March Networks posts profit in Q1

Posted by sweens on August 26, 2010

Published on August 26th, 2010
Canadian Press

March Networks (TSX:MN) posted a small profit in its fiscal first quarter, reversing a year-ago loss as demand improved.

The provider of applications used for security surveillance said late Wednesday it earned $100,000 or one cent per share in the three-month period ended July 31, compared to a loss of $500,000 or three cents per share a year earlier.

Revenue was $26.3 million, up 10 per cent from $24.0 million in the same period of fiscal 2010.

“The first quarter of fiscal 2011 was very encouraging for the company as demand returned in the North American market after a tough fiscal 2010 to deliver revenue growth and a return to profitability,” stated CEO Peter Strom.

“Recently announced retail and banking deals are expected to help drive continued revenue growth and profitability in the second quarter of fiscal 2011,” he added.Shares in the Ottawa-based company were unchanged at $4.10 in Wednesday trading on the Toronto Stock Exchange.

http://www.obj.ca/Technology/2010-08-26/article-1700006/March-Networks-posts-profit-in-Q1/1

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

JobServe partners with IT World Canada

Posted by sweens on August 26, 2010

Published on August 26th, 2010
OBJ Staff
Ottawa Business Journal

Internet recruitment service firm JobServe Canada Inc. has signed a partnership agreement with an IT media information company to provide a niche online job board, the companies announced this week.

JobServe, which has its Canadian headquarters in Ottawa, will provide its services to IT World Canada and allow jobs on both sites to be cross-advertised.

“This exciting partnership creates the first real ITniche job board in Canada that will be hard to match by anyone,” said JobServe Canada CEO Christopher Klotz in a statement.

The agreement takes effect September 1 and covers all of IT World Canada’s publications, including ComputerWorld and NetworkWorld. 

Terms of the deal were not disclosed.

http://www.obj.ca/Technology/2010-08-26/article-1700123/JobServe-partners-with-IT-World-Canada/1

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

Zarlink turnaround continues as revenue targets exceeded

Posted by sweens on July 29, 2010

Kanata-based Zarlink Semiconductor beat its revenue targets by 18 per cent year-over-year in first-quarter results announced on Thursday.

The firm’s revenues reached $58.7 million, which exceeded their earlier revenue guidance of between $57 million and $58.7 million.

Zarlink stated this was due to “increasing customer demand across all core segments of the business,” particularly in communications products, where revenue grew by $3.9 million, and medical products, up $1.3 million.

Basic earnings were at $0.08 per share and $0.07 per diluted share.

Zarlink earlier sold its optical-products unit, which generated net proceeds of $13.5 million.

The firm said it expects to see more demand for its next-generation carrier chipset products, which includes voice-over-broadband and new efficiencies in wireless to improve the speed.

Customers such as Ciena Corp. and Teias Networks have integrated Zarlink’s ClockCenter timing platform into their video products, allowing them to lower power consumption and simplify the design, Zarlink stated.

“Q1 was a very strong start to fiscal 2011,” stated president and chief executive Kirk Mandy.

“While capacity concerns are impacting the global semiconductor industry, we are working closely with our foundry partners to ensure we continue to meet delivery commitments as end-market demand for our products escalates.”

As part of its work beyond semiconductor, the company grew its medical revenues to $6.6 million, from $5.3 million in the fourth quarter of fiscal 2010.

The money came from shipments of wireless radio modules that were allowed for medical applications after approvals from the United States’ chief medical approvals body, the Food and Drug Administration.

However, year-over-year revenue fell from $9 million in Q1 2010 to the $6.6 million posted in Q1 2011.

Zarlink further made the following forecasts for Q2 2011:

- Revenue between $58.5 million and $60.5 million;

- Gross margins between 50 per cent and 51 per cent;

- Operating expenses between $20.5 million and $21.5 million, excluding amortization of intangibles;

- Q2 earnings of $0.03 to $0.05 per share, excluding foreign exchange fluctuations.

http://www.obj.ca/Technology/2010-07-29/article-1631108/UPDATE%3A-Zarlink-turnaround-continues-as-revenue-targets-exceeded/1

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

Bridgewater bumps up revenue 41 per cent in Q2

Posted by sweens on July 29, 2010

Bridgewater Systems posted a 41-per-cent increase in second-quarter revenues Thursday, but one analyst cautions a pull-back by the company’s largest customer could create anxiety among investors.

The Ottawa-based software development firm reported revenues of $22.7 million, powered in large part by product sales, which increased 47 per cent to $17.1 million.

Earnings before income taxes were $4.8 million in the same period, an increase from the $4.1 million posted the year before.

The firm’s $47.2 million in revenues in the year to date is also 56 per cent higher than revenues in the first six months of fiscal 2009.

A conference call with analysts Thursday morning discussed the company’s wins in attracting new customers, particularly overseas, and the expansion of partnerships with existing customers such as Cisco and Verizon.

However, mitigating the rosy outlook and continued customer growth was analyst concern about Verizon’s shift away from purchasing Bridgewater software and hardware solutions as a bundle and instead focusing on just the software solutions instead, said Bank of Montreal analyst Thanos Moschopoulos.

“I don’t think it will impact Bridgewater all that much, but when your largest customer is looking to tweak the way business is doing with you it makes people nervous,” he said.

He added he doesn’t see much of an impact given “Verizon has very rapid traffic work on 3G network” and that mobile Internet demand is not expected to slow down any time soon.

The challenge for Bridgewater, he added, was to position itself for the LTE market in the coming years, but that will not begin to take a large share on the market for about 24 to 36 months, he said.

The company highlighted its growth in developing countries during the conference call.

“We have a focus on global expansion and emerging markets,” said Ed Ogonek, chief executive of Bridgewater, talking particularly about their work in India as the country begins its move from 3G to 4G spectrum options.

“We’ve built a technical servies and professional services capability to put some additional in-country and in-region capability,” he added.

“One of the fascinating things around the market is it’s rich with skillset and technical experience.”

The addition of 17 new customers, including 11 outside of North America, drew praise from analysts, although they also drew concern that the new partner business represented only seven per cent of revenues and it is not expected to increase substantially in the next few quarters.

Research notes from Kris Thompson, of NBF financial, said the new customers “should aid future revenue growth and customer diversification.”

He noted that management had continued to keep up its revenue guidance of $85 million to $94 million.

“We continue to expect new customer wins in Q2 2010 to help the company beat this range,” he stated.

Bridgewater further noted two existing customers represent 59 per cent of the firm’s revenue. Chief financial officer Kim Butler said “one can assume” Verizon was one those partners but could not separate the two into more exact numbers.

For future guidance, Mr. Ogonek said the company has been involved in Europe and other regions in implementing a system that can help consumers avoid “bill shock” by sending mobile alerts when the person is getting close to the limit of their browsing downloads.

With more carriers looking to implement these systems in the next year or two, Mr. Ogonek said the company is well-positioned for growth in the coming 24 months.

In the second quarter, gross margin was $15 million, or 66 per cent of revenue, compared with $12.1 million, or 75 per cent of revenue in Q2 2009.

Bridgewater stated this is due to a bump-up in direct-product costs due to bundling integrated systems together, as well as increasing the infrastructure of operations support.

Net earnings before income tax went up 17 per cent to $4.8 million, compared with $4.1 million in the second quarter of 2009.

After income tax, net earnings were $3.2 million, or $0.13 per fully diluted share, compared with $4.1 million ($0.17 per share) in Q2 2009. The decrease was due to a one-time income tax spending of $0.6 million and a non-cash future income tax expenditure of $0.9 million.

http://www.obj.ca/Technology/2010-07-29/article-1631057/UPDATE-2%3A-Bridgewater-bumps-up-revenue-41-per-cent-in-Q2/1

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

CGI wins contract with BEER STORE

Posted by sweens on July 14, 2010

Toronto
The Canadian Press
Published on Wednesday, Jul. 07, 2010 12:18PM EDT

CGI Group Inc. has won a seven-year, multimillion-dollar contract to provide infrastructure information technology services to The Beer Store, Ontario’s primary beer retailer.

The outsourcing agreement also encompasses infrastructure services for Brewers Distributor Ltd., a wholesale distributor of beer and the collector of returnable, refillable and recyclable beer containers in Western Canada, the Northwest Territories and the Yukon.

“We are confident that CGI’s intimate understanding of our business will assist us to make the best technology choices,” stated Ted Moroz, president of The Beer Store and Brewers Distributor.

The exact value of the agreement was not provided.

Doug McCuaig, president of CGI Canada, said the company is committed to establishing and maintaining long-term client partnerships.

“Going forward, we plan to leverage our comprehensive portfolio of services to further assist The Beer Store and Brewers Distributor,” Mr. McCuaig said.

CGI is Canada’s largest IT services firm. The Montreal-based company and its affiliated companies employ 26,000 professionals around the world. It had $3.8-billion in revenue in 2009.

Established in 1927, The Beer Store and its 438 stores sell 85 per cent of the beer in Ontario. It also supplies imported and domestic beer to more than 16,000 bars and restaurants and delivers domestic beer to 604 Liquor Control Board of Ontario (LCBO) stores.

http://www.theglobeandmail.com/globe-investor/cgi-wins-contract-with-the-beer-store/article1631705/

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

Corporate profits likely headed downward this year: Conference Board

Posted by sweens on June 9, 2010

Canadian companies saw their profitability outlook weaken in May after a strong post-recession recovery, and will likely see a modest drop in the second half of year, according to Conference Board of Canada.

A leading indicator that tracks profits across Canada’s various industries fell 0.4 percentage points from April, the second month in a row it has registered such a drop, the Ottawa-based think-tank said Wednesday.

“The decline suggests that after experiencing a strong post-recession recovery, corporate profitability will weaken modestly in the second half of the year, as interest rates rise,” the Conference Board said in a statement.

“The outlook for most industries remains positive, but their rates of profit growth are expected to slow.”

The survey covered 49 industries, 39 of which saw an increase in May, improved from 37 in the previous month.

The profit weakness, however, is “not expected to derail the broader economic recovery,” it said.

Profit recovery among Canadian companies is expected to be “uneven” with volatility in commodity prices, currency exchange and interest rates hikes, which began earlier this month when the Bank of Canada raised its key lending rate from rock bottom to 0.5 per cent.

The Conference Board noted that indexes it tracks for Canada’s most influential sectors, such as trucking and wholesale trade, are still showing strong growth.

http://www.obj.ca/Canada—World/2010-06-09/article-1238034/Corporate-profits-likely-headed-downward-this-year%3A-Conference-Board/1

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

Layoffs at March Networks slash 7% of global workforce

Posted by sweens on June 8, 2010

On the eve of announcing its fourth-quarter results, March Networks (TSX:MN) confirmed Tuesday that it recently laid off seven per cent of its global workforce – a total of 20 employees out of about 250 people.

“It consists of strategy or transitioning the March business into more sales and marketing activities, and it reflects how the business is moving more into a software sphere,” said Simon Gwatkin of the company’s investor relations, when contacted by OBJ.

Mr. Gwatkin did not release any local numbers or what sectors were affected, although a source told OBJ that at least one Ottawa engineering employee was downsized.

As of February 2010, after several rounds of layoffs, March employed 160 people in Ottawa, according to the latest edition of Ottawa Technology Magazine.

Also in February, March released its Q3 results and said the weak showing was due to poor “sales visibility”, particularly in the U.S. and Dubai, and added the company had not met investor earning expectations for the first nine months of its fiscal year.

At the time, the Ottawa-based company — which deals in digital surveillance — said it had revenues of $20 million for the quarter ended Jan. 31.

This was a decrease of 15.2 per cent from Q1 2008 and broadened the firm’s net loss from $3.52 million or 20 cents a share to $1.26 million or seven cents a share.

“In spite of the economic challenges and deferred capital spending within many of our vertical markets, the company has experienced year-to-date revenue growth in the commercial industrial market,” stated March Networks CEO Peter Strom at the time.

“We continue to invest in R&D and technologies that address the evolving needs of customers in our key vertical markets in order to support revenue growth.”

Q4 financials will be released at the end of trading day on Wednesday.

http://www.obj.ca/Technology/2010-06-08/article-1233109/Layoffs-at-March-Networks-slash-7%25-of-global-workforce/1

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

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 »

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: 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 »

UPDATE: Nortel opts out of auction for carrier business, works on $182M direct sale to GENBAND

Posted by sweens on March 2, 2010

Published on February 24th, 2010
Krystle Chow
Ottawa Business Journal

Nortel Networks Corp. has decided not to auction off its carrier voice-over-Internet protocol and application solutions business and is instead selling the division directly to Texas-based GENBAND Inc. for US$182 million, with more than three-quarters of the division’s staff expected to keep their jobs.

The former telecom giant, which is currently working through bankruptcy proceedings, said Wednesday that it’s working toward a second-quarter closing for the sale of the telecom carrier technology business’s assets, which include its softswitching, gateways, session initiation protocol – or SIP – applications and time-division multiplexing products and services.

 “Uniting our two businesses will create one of the industry’s strongest carrier VoIP players, in terms of market share, customer base and portfolio,” said Samih Elhage, president of the carrier business, in a statement. “Joining forces with GENBAND will allow us to continue to provide a highly reliable solution and service offering to service providers and enterprises across the globe.”

 Mr. Elhage added that “a significant majority” of the division’s employees would be offered jobs at GENBAND. The company noted that group will include certain employees in some jurisdictions in the Europe, Middle East and Africa region that will transfer automatically to GENBAND by operation of law.

 A company spokesperson noted in an e-mail that about 1,638 of the division’s staff, or 78 per cent, will have the opportunity to continue working with GENBAND, although the latter won’t be able to extend offers until it’s received court approval for the deal.

 The business employs approximately 2,100 people in total, with 80 per cent of that number located in North America. Thirty per cent of the North American staff are in Canada, the company said in an earlier interview with OBJ.

 GENBAND, which has teamed up with private equity firm One Equity Partners and other existing shareholders to secure the carrier division’s assets, had initially offered US$282 million. However, Nortel has agreed to make balance sheet and other adjustments to reduce the purchase price by US$100 million.

 Nortel first announced in December that GENBAND had put in a bid that was supposed to kick off a competitive bidding process, culminating in an auction that would have started on Thursday.

 At the time, Mr. Elhage told OBJ that the sale would represent one of the final steps in its insolvency proceedings.

 The Toronto-based company had sold off a number of its businesses through the auction process, including its wireless division, enterprise unit and optical business.

However, company spokesperson Jamie Moody said Nortel chose not to go with the auction route for the carrier business as it didn’t receive any other qualified bids, despite interest from other parties.

 When asked if Mr. Elhage would continue on at GENBAND following the completion of the deal, Ms. Moody reiterated the fact that GENBAND isn’t allowed to enter into discussions or extend offers to any employees until the transaction is finalized.

 The sale will now await U.S. and Canadian court approvals at a joint hearing on March 3.

http://www.obj.ca/Technology/2010-02-24/article-814537/UPDATE%3A-Nortel-opts-out-of-auction-for-carrier-business%2C-works-on-%24182M-direct-sale-to-GENBAND/1

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

 
Follow

Get every new post delivered to your Inbox.

Join 159 other followers