Business briefs

18 Oct 2002

Including news from Nortel Networks, Cree, Three-Five Systems, TRW, VISX and more.

•  Things are not yet looking up for Nortel Networks, the ailing Canadian maker of telecom equipment. For the third quarter of 2002, the firm reported a 15% sequential drop in revenue to USD 2.36 billion and a net loss of USD 1.8 billion. It says that it will continue to reduce its cost structure in an attempt to break even by the second quarter of 2003.

•  Three-Five Systems, the US maker of display modules, has reported a slump in sales for the three months ended 30 September 2002. Sales for the quarter were USD 18.6 million compared with USD 26.6 million for the same period in 2001. Three-Five says that the decline in revenue was entirely due to a reduction in shipments to its largest customer and slower then expected build up of new business.

•  US-based defense giant TRW saw a 10% rise in sales for the third quarter 2002 compared with last year. On the back of strong orders from the space, automotive and electronics industries the company recorded sales of USD 3.95 billion in contrast to USD 3.59 billion in the same period in 2001. As a result, TRW's net profit jumped 42% to USD 115 million.

•  Cree has posted first quarter revenues of USD 48.8 million, up 29% sequentially from the previous quarter's figure of USD 37.8 million. The company says its LED shipments rose more than 50% sequentially during the quarter thanks to an increase in demand for its devices in applications such as cell phones.

•  DRS Technologies has acquired Nytech Integrated Infrared Systems, a US maker of uncooled thermal imaging systems, for an undisclosed sum. "This strengthens our position in uncooled sensors and complements our core competencies in cooled sensors and system integration," said DRS's president Mark Newman.

•  US-based VISX, a maker of laser systems for vision correction, has announced third quarter revenues of USD 30.5 million, down 18% from last year's third quarter revenues of USD 37 million. Revenues for the nine months ended September 30 also fell to USD 103.8 million from the USD 135.7 million reported for the same period last year.

•  Across Western Europe, Italy saw the largest growth in liquid-crystal display monitor display sales over the last year, according to market research consultancy Meko. Annual sales volumes in Italy grew from 69 000 to 221 000 units. Meko also reports that the European LCD market grew by 120% over the same period.