Broadband Briefs for 04/28/09
• Comcast signals intent to raise cash
By Brian Santo
Comcast is preparing to raise money by issuing debt securities, according to a document the company filed with the Securities and Exchange Commission (SEC).
The document spelled out the company’s obligations and guarantees concerning the debt it may issue, but it did not specify anything about the target value of the offering, the timing of the offering, or the purpose(s) to which the company might apply the proceeds.
The filing reads: “We intend to use the net proceeds from the sale of the securities for working capital and general corporate purposes. We may also invest the proceeds in certificates of deposit, United States government securities or certain other interest-bearing securities. If we decide to use the net proceeds from a particular offering of securities for a specific purpose, we will describe that in the related prospectus supplement.”
• Convergys manages minimal Q1 dip
By Brian Santo
Relationship management specialist Convergys reported that first-quarter revenue was down a bit, from $716 million in Q1 ’08 to $695 million in Q1 ’09. Net income dropped from $36 million a year ago to $28 million. The company said the results were in line with expectations.
“In a challenging environment, we met revenue and exceeded earnings expectations and are affirming our earnings guidance,” said David Dougherty, president and CEO of Convergys.
Looking ahead, the company said it assumes the economic environment throughout 2009 will be generally consistent with current conditions.
• Tellabs’ Q1 profit tumbles on lower sales
By The Associated Press
NAPERVILLE, Ill. (AP) – Tellabs Inc., which makes telecommunications equipment, said Tuesday its first-quarter profit dropped 61 percent, as the continued weak economy cut into its customers' spending. But the Naperville, Ill., company's sales were better than expected, and Tellabs shares rose 32 cents, or 6.2 percent, to $5.30 in morning trading.
Tellabs earned $6.5 million, or 2 cents per share, compared with $16.6 million, or 4 cents per share, a year earlier. Revenue dropped 22 percent to $361.7 million from $464.1 million. Analysts polled by Thomson Reuters expected a profit of 3 cents per share on $359.4 million in revenue.
Broadband fell 12 percent to $178.3 million as an increase in data revenue was offset by lower access and managed access revenue. Transport revenue dropped 37 percent to $129.7 million on a drop in demand for digital cross-connect and optical networking systems. Services revenue decreased 4.3 percent to $53.7 million on lower revenue from deployment services stemming from the drop in product sales.
• Sigma Systems at TM Forum
By Brian Santo
Fulfillment specialist Sigma Systems plans to share customer experiences to illustrate the value of service transformation at TM Forum's Management World 2009 next week in Nice, France.
"At Sigma, we emphasize the importance of the service layer and the migration of legacy infrastructure to an all-IP-based framework, so that operators can create and deploy complex service bundles quickly and cost-effectively," said Preston Gilmer, Sigma Systems’ vice president of product marketing.