UK Tech Finance Blog

UK-based technology company financials, M&A activity, funding, share and regulatory issues.

Friday quote
November 07, 2008

“Bank failures are caused by depositors who don’t deposit enough money to cover losses due to mismanagement.” The American politician Dan Quayle (vice president from 1989 to 1993).

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Posted by Jason Stamper at 10:50 AM | Comments (0)

 

BT shocks market with poor IT services results
November 03, 2008

The Financial Times noted that BT Group was the sharpest blue-chip faller after a profit warning brought on by its Global Services division. Shares tumbled 19 per cent to 115.1p after the company failed to cut costs and lost high-margin UK business.

Cable & Wireless fell 1 per cent to 122.9p, “in sympathy” according to the FT. However, analysts noted that C&W is due to report interim earnings on November 10, three days before BT is scheduled to report, suggesting C&W would have had to have warned of any shortfall by now.

Among the smaller operators, Colt Telecom was steady at 63¼p as speculation about a possible bid from AT&T was given yet another airing – FT.

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Posted by Jason Stamper at 02:32 PM | Comments (0)

 

British chip designer ARM has record quarter
October 28, 2008

Cambridge-based microchip designer ARM Holdings was rising on the LSE today after it announced record quarterly revenue and said it expects its next quarter to be in line with expectations.

Its quarterly revenues were up 7% year on year to $134.4m. For the first time ever it said its processor division saw a billion units reported during the quarter: it doesn’t manufacture its own chips, so it’s all about how many its licensees make.

“Although the global macroeconomic conditions make the near-term trading environment uncertain, based on the order backlog, robust licensing pipeline and underlying momentum in royalties, we expect that group dollar revenues in Q4 2008 will be at least in line with expectations,” the company said in a statement. “In addition, we anticipate that profits and earnings will benefit further from the strengthening of the dollar against sterling.”

Commenting on the results, Warren East, CEO, said: “In Q3, ARM delivered the best quarterly revenue performance in its history and we continue to see strong demand for ARM’s technology including long-term commitments for our physical IP technology by industry leaders.”

“We are encouraged to see that the inherent operating leverage in the ARM business model, combined with sound cost discipline and the recent strengthening of the dollar against sterling, has given rise to earnings growth in Q3 of more than 20% on dollar revenue growth of 7%,” East said.

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Posted by Jason Stamper at 12:24 PM | Comments (0)

 

UK economy shrank 0.5% in latest quarter
October 24, 2008

The UK economy shrank by 0.5% -- more sharply than expected -- in the three months to September, official data released on Friday showed. It is the first official confirmation that the UK is entering a recession, although Bank of England governor Mervyn King used the ‘r’ word in a speech early this week, saying a recession is “likely”.

Respected bodies such as the European Commission, the Organisation for Economic Development and business lobby group the CBI have said the UK economy started shrinking in July...[click continue reading for Global Insight economist Howard Archer's predictions for the UK economy]...

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Posted by Jason Stamper at 03:50 PM | Comments (0)