NEW YORK (Reuters) – Tyco Electronics Ltd (TEL.N: Quote, Profile, Research), has agreed to buy broadband equipment maker ADC Telecommunications Inc (ADCT.O: Quote, Profile, Research) for $1.25 billion in cash, betting on future demand for fiber optics and diversifying away from its historical automotive connector business.
Tyco Electronics said it would pay $12.75 cash per share, a 44 percent premium to ADC’s closing price on Monday.
NEW YORK (Reuters) – Technology outsourcing and consulting firm Accenture Plc reported higher-than-expected quarterly results on Thursday as a recovering economy encouraged companies to invest again.
Accenture’s revenue for the fiscal third quarter ended May 31 rose to $5.57 billion from $5.15 billion a year earlier. That was above analysts’ average forecast of $5.46 billion, according to Thomson Reuters I/B/E/S.
AUSTIN, Texas/NEW YORK (Reuters) – Dell Inc (DELL.O: Quote, Profile, Research) forecast a 14 to 19 percent jump in fiscal 2011 revenue as consumer and corporate spending returns, matching Wall Street’s expectations, but investors are focusing on whether the world’s No. 3 PC maker can sustain margins.
Investors are likely to quiz executives at Dell’s annual financial analysts’ conference on Thursday about whether it can shore up profitability after gross margins fell short of expectations in its fiscal first quarter, reflecting a reliance on sales of hardware to U.S. businesses.
NEW YORK (Reuters) – Cisco Systems Inc Chief Executive John Chambers, one of Silicon Valley’s longest-serving executives, said he recently committed to another three to five years in his role.
Chambers, who took the CEO role in 1995 and is 60 years old, said the company held a board of directors’ meeting a couple of days ago where he was asked to renew his commitment.
NEW YORK (Reuters) – Hewlett-Packard Co said it aims to boost margins by cutting jobs and reallocating spending to more profitable technology services, shrinking its workforce by a net 3,000 jobs, or 1 percent, over three years.
The move, which will result in a $1 billion charge, comes as rivals like IBM and Cisco Systems Inc vie for supremacy in the lucrative business of fitting out and helping run corporate data centres that handle communications and store huge amounts of information.
NEW YORK (Reuters) – Hedge funds have piled out of Brocade Communications Systems Inc <BRCD.O> this year on weak sales and fading hopes for a buyout, making the stock look like a bargain.
But analysts caution against expecting too much of a rebound until the company shows stronger business results.
NEW YORK/BOSTON (Reuters) – IBM <IBM.N> plans to buy Sterling Commerce from AT&T Inc <T.N> for about $1.4 billion in cash, extending the technology behemoth’s portfolio of business software.
The move comes amid a flurry of software acquisitions by International Business Machines Corp, Oracle Corp <ORCL.O> and SAP AG <SAPG.DE>, as they look to sell a broad set of products and services to large corporations.
SAN FRANCISCO (Reuters) – When Tom Georgens took over over as CEO of storage equipment maker NetApp Inc <NTAP.O> last August, the technology sector was in the midst of a record decline.
He navigated the company as it emerged from the economic storm, watching its stock price climb 56 percent in nine months, nearly triple the gain of rival EMC Corp <EMC.N>.
SAN FRANCISCO (Reuters) – Cisco Systems Inc <CSCO.O> is testing a consumer version of its TelePresence videoconferencing system and expects to begin selling the product late this year for around $500.
Cisco already sells high-end videoconferencing systems to businesses for as much as $300,000 per unit, and analysts have said its challenge would be to come up with a more affordable version.
SAN FRANCISCO (Reuters) – Dell Inc’s <DELL.O> quarterly sales and profit beat expectations but its gross margin fell short of analysts’ forecasts and the computer maker warned that components supply will remain tight.
Dell, whose shares fell 3 percent after the results on Thursday, has been struggling to boost profitability due to both sales of lower-cost personal computers and higher costs of components, including memory.