05 Nov 08. Orders from the US Navy for equipment designed to disrupt enemy radar helped Cobham achieve continued strong trading through its third quarter as it remained “confident of its previous outlook” for the full year. The Dorset-based defence company on Wednesday said recent acquisitions, combined with organic sales growth had resulted in an improved order book, which stood at £2.5bn at the end of September compared with £2.2bn reported at the half way stage. Net debt at Cobham, the world’s largest manufacturer of mid-air refuelling rigs for aircraft, grew to £475m following the completions of deals to acquire US businesses M/A-COM for $380m and GMS for $26m during the quarter. Net debt had stood at £249m in June ahead of the acquisitions. M/A-COM, which specialises in microwave and radio technologies used in missiles, electronic warfare and space systems, is being integrated into Cobham’s existing Sensor and Antenna Systems business, while its rump commercial business is being offered for resale by Cobham. GMS, which makes surveillance and video equipment at police and military markets, was bought to increase Cobham’s customer base particularly in the west coast of the US. In the first half Cobham’s profits rose 24 per cent £107m on a 28 per cent rise in revenues of £632m. In the third quarter, the group said it had benefited from “modest beneficial impact from the translation of the group’s earnings in foreign currency”. Although the dollar’s more recent appreciation against the pound had increased the value of Cobham’s dollar-denominated debt, these were “matched against dollar denominated assets”, the company said. Much of Cobham’s order book is defence-related, however in August it won a $200m contract to supply radio and audio systems to Airbus A350 XWB, the medium-capacity civilian airliner. Two weeks ago Cobham also announced a $37m extension to $37m to a contract with the US Navy for radio transmission systems aimed at protecting ships, aircraft, and marine troops by jamming enemy radar and radios, bring the total value of this line of orders to $185m. Shares in Cobham, one of the FTSE 100’s top performers this year, slipped 3¼p to 202¼p, giving a 52-week fall of just 1.7 per cent. (Source: FT.com)
05 Nov 08. Cisco warned on Wednesday of a 5-10 per cent slump in its revenues in the current quarter as the collapse in IT spending seen in October spreads Despite that, the dominant maker of routers and switches used in data networks stuck to its long-term forecasts, which call for growth of 12-17 per cent. It also said it planned to slice $1bn from its annual costs by next summer, with a hiring freeze already in place since the middle of last month. Cisco, one of the bellwethers of the information technology industry, also reported what it called “solid” figures for its most recent quarter, though a relatively good start to the period had turned to a sharp fall in customer demand by October. The company’s shares, which had already fallen 5 per cent during the day in line with the market, dropped another 5 per cent on the news in after-market trading.
Like other technology executives who have issued similarly downbeat projections
recently, John Chambers, chief executive, said it was “difficult to provide a forecast given the dramatic variability”. In August, at the beginning of Cisco’s most recent quarter, customer orders grew by 7 per cent from a year before, but by October monthly orders fell by 9 per cent. Big companies were the quickest to cut back, slicing 11 per cent from their orders for the quarter overall, Cisco said. The economic decline had spread from the US to western Europe, and was now
apparent in the emerging markets and Asia as well, Mr Chambers said. (Source: FT.com)
05 Nov 08. SI International, Inc.(Nasdaq: SINT), announced financial results for its third quarter ended September 27, 2008. Revenue for the third quarter of fiscal year 2008 (FY08) was $149.0m. Income from