Feeds

Logica warns on wireless profits

Management to walk plank?

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

LogicaCMG warned yesterday that its wireless division was likely to see sales fall 10 per cent in the first half of this year and institutional investors warned the management that their days were numbered.

Logica, which provides software for sending SMS messages and for mobile billing, blamed longer procurement times for falling revenues. It said media messaging projects were more complex so sales lead-times were longer. But big shareholders were not sympathetic.

Martin Read, chief executive at Logica, said the company was making good progress with media messaging and mobile payments. But one institutional investor, speaking anonymously to the Independent, said: "The market is deeply suspicious of the company's forecasts. We are not keen on the management. We think Martin has been wildly optimistic on the messaging business and continues to cling to that." Another investor told the paper he expected to see a turnaround within a year or there would be management changes.

Sales for Logica's IT services division have been in line with expectations. Logica expects its wireless division to be profitable for the full year. Full results will be announced on 1 September. ®

Related stories

IBM, Logica spar for ?80m MoD deal
Picture messaging: Peace and love breaks out
Logica to bring MMS to land lines

Secure remote control for conventional and virtual desktops

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.