08 Feb 06. Rockwell Collins, Inc. (NYSE: COL), a global leader in aviation electronics and communications, has entered into a definitive agreement to acquire the simulation assets of Evans & Sutherland, a leading provider of visual simulation solutions for military and commercial customers. The transaction is subject to customary closing conditions, including regulatory and Evans & Sutherland shareholder approval, and is expected to close during the third quarter of Rockwell Collins’ 2006 fiscal year (second calendar quarter). Pursuant to the terms of the agreement, Rockwell Collins will acquire Evans & Sutherland’s military and commercial simulation assets and certain liabilities, including simulation facilities in Salt Lake City, Orlando and the United Kingdom, in a $71.5 million cash transaction. As part of this transaction, Rockwell Collins will have exclusive rights to the Evans & Sutherland laser projector for simulation. Approximately 200 Evans & Sutherland employees will join Rockwell Collins. Evans & Sutherland will retain ownership of its planetarium and other laser projector market offerings and will continue to maintain its headquarters in Salt Lake City. The acquisition will not materially affect Rockwell Collins’ earnings for the fiscal year ending September 30, 2006.
09 Feb 06. EDS is looking to buy companies in low-cost countries as a way to accelerate its turnround, Michael Jordan, chief executive officer, said yesterday. Exporting work from the US would be one of the main ways EDS would use to boost profit margins, he and other executives added. “We are looking for inorganic opportunities to jump-start the process,” Mr Jordan said. His comments came as EDS capped the first phase of its turnaround with quarterly earnings ahead of Wall Street forecasts. The company’s shares have re-bounded since last summer as it has progressed in stemming losses from some of its biggest contracts, including an outsourcing deal with the US Navy. EDS said its revenues in the latest quarter had inched ahead by 1 per cent, to $5.1bn, while its net income more than doubled to $112m, or 21 cents a share. EDS is looking to double the number of people it employs in low-cost countries from the current level of 14,000 by 2007-2008, Mr Jordan said. It has only 2,800 people in India, making this one of the main areas of focus for growth, he added, with expansion also likely in China. Mr Jordan described likely acquisitions as “medium-sized” and worth “several hundred million” dollars each. Along with purchases in off-shore centres, these were also likely to include expansion into new lines of business, he said. Along with other productivity improvements, such as changes to its supply chain, EDS said it hoped to lift its operating profit margin from 3.1 per cent last year to 5 per cent in 2006. EDS executives said the company was in an investment phase intended to improve its productivity. The investments had built up during last year and would continue in the early part of this year before tailing off again later in 2006. (Source: FT.com)
02 Feb 06. German software company Magix is reportedly planning a flotation for the early part of the year. Well-informed sources state that Magix is hoping to float either at the end of March or the start of April. The German company is aiming for a listing in the Prime Standard segment of the Frankfurt Stock Exchange. The banking consortium is set to be headed by Dresdner Kleinwort Wasserstein. Investment bank Cazenove is also thought to be involved. UK investment company 3i acquired 21 per cent of Magix in 2000. German state-owned banking group KfW holds a 5 per cent stake. (Source: Abstracted from Financial Times Deutschland/FT.com)
08 Feb 06. Cisco Systems Inc has reported a 1.8% drop in earnings for the quarter ending January 28 to $1.38bn, or 22 cents per share, from $1.4bn, or 21 cents per share, a year ago. The giant networking solutions provider said the reduced profit included costs