Posted on February 13, 2009, at 10:40 am .
Telus posted their Q4 2008 financial results today, reporting a drop in profit, but growth in revenue. Telus’ Fourth-quarter earnings fell to C$285 million (US$231.7 million), or 89 Canadian cents a share, from C$400 million, or C$1.22 a share, a year earlier. Telus blamed the loss in profit on fewer tax-related gains and increased spending on restructuring. Telus recorded favorable tax-related adjustments of C$32 million, compared with C$143 million a year earlier. It also said restructuring costs increased by C$32 million.
On the positive side, revenue rose 5.3% to C$2.45 billion on growth in wireless revenue, as wireless subscribers spent more on text messaging and social networking. Telus stated that more subscribers were picking up feature-rich smartphones, like the BlackBerry, and using services like messaging and Facebook, which boosts data revenue.
|via Reuters|
Posted on February 10, 2009, at 1:19 pm .
MocoNews is reporting that Handmark has purchased software developer FreeRange for an undisclosed sum. FreeRange is a mobile RSS applications firm with a fairly popular RSS reader, but I find them more exciting for their work on the Wall Street Journal and AP News applications.
FreeRange has said it will use the additional resources from Handmark to expand its video support, and iPhone and Android support, but I’m hoping they’ll put their magic touch on Handmark’s own PocketExpress application. The AP News app developed by FreeRange is clean, pretty and slick, and I’d love to see a rebuilt PocketExpress from the ground up.
|via MocoNews|
Posted on February 10, 2009, at 11:07 am .
It appears as though RIM’s persistence has paid off. Little more than a week after RIM doubled their offer for Certicom, the security software maker has received a notice from its other main suitor VeriSign that it will make no attempt to match RIM’s offer.
Certicom’s board of directors will be meeting today, and are expected to approve RIM’s C$131 million bid. For their troubles, VeriSign will receive a C$4 million termination fee if RIM’s takeover goes through. I’m still interested in learning if VeriSign ever seriously thought they would obtain Certicom, or saw the whole situation as a potential cash grab. Let’s hope there’s not another OSC investigation.
|via Reuters|
Posted on February 5, 2009, at 5:31 pm .
Woah. It looks like the Ontario Securities Commission has made their decision on a possible settlement with RIM over their backdating scandal. The news is fresh as of an hour ago, so I’m just going to quote straight from Reuters:
Research In Motion Co-Chief Executive Jim Balsillie will step down from the board and, along with other executives of the company that makes the BlackBerry smartphone, will repay tens of millions of dollars to settle stock-option allegations dating back to 1996.
Under the pact reached with the Ontario Securities Commission and approved on Thursday, Balsillie will pay a penalty of C$5 million ($4.1 million), while Co-Chief Executive Mike Lazaridis will pay a C$1.5 million penalty. The two men also must pay investigation costs to the regulator.
The agreement also stipulates that the two co-CEOs and RIM’s former CFO, Dennis Kavelman, will repay C$38.3 million to the company. They must also repay about C$30 million to cover the costs of a voluntary internal probe into the matter undertaken by RIM earlier.
Balsillie and Lazaridis had already paid C$15 million to offset the costs of the Waterloo, Ontario-based company’s internal review. Balsillie may not serve on RIM’s board for at least 12 months as part of the settlement, and Kavelman must pay a C$1.5 million penalty.
The OSC alleged the executives backdated and repriced stock options using dates on which the market price of RIM’s shares was relatively low. Handing out options at the lower prices had the effect of improperly enriching the recipients and, the OSC alleged, could have deprived RIM of about C$66 million.
It’s a huge chunk of change, but at least RIM can now put this whole affair behind them. You can see statements from Balsillie and the OSC after the jump.
|via Reuters|
Continue reading ‘BREAKING: RIM settles with OSC for $76 million, Balsillie to step down from board’
Posted on February 5, 2009, at 3:49 pm .
You have to hand it to RIM, when they see something they want, they really go after it. Earlier this week, RIM doubled their offer to security technology company Certicom, offering C$131.1 million or about 43% more than VeriSign’s bid. VeriSign has until Feb. 11 to submit an amended offer under its arrangement with Certicom, but analysts believe they are unlikely to prevail.
A counter-bid from VeriSign is unlikely, said Blackmont Capital analyst Lawrence Rhee, because RIM’s richer offer shows its commitment to acquire Certicom.
“They could notch it up higher, but I just think VeriSign thinks that RIM will come and outbid it again. So why go through that process,” Rhee said. “I think they’re both motivated to try and purchase this asset, it’s just I think RIM has proven that they want it more.”
Things won’t end too badly for VeriSign, as the company will receive a C$4 million termination fee if Certicom does not accept its bid. Hmm, sounds like a pretty nice chunk of change to help Certicom get a higher valuation out of RIM. However, it seems that acquiring Certicom is worth it for RIM regardless the cost.
“I wouldn’t say it’s all Certicom’s technology that explains the strength of the security around RIM. I think it’s a key component. I think what RIM wants is to be able to ensure continued development of ECC going forward. If its gets into a competitor’s hands … then maybe RIM would be worried,” Rhee said.
Hopefully this sordid affair will be over by February 11th, and we can avoid having it come to a duel-to-the-death between Jim Balsillie and VeriSign’s CEO.
|via Reuters|
Posted on February 4, 2009, at 12:46 pm .
It looks like RIM is taking care of business this week. One day after doubling their offer to security company Certicom, the Ontario Securities Commission said in a statement that they have reached a potential settlement with RIM’s co-CEO’s Mike Lazaridis and Jim Balsillie following their investigation into a stock option scandal dating back to 1996.
The Ontario Securities Commission said in a statement on Tuesday that it would hold a hearing Feb 5 in Toronto on whether to approve a settlement its staff reached with the company and top executives including co-chief executives Jim Balsillie and Mike Lazaridis.
The regulator issued a statement of allegations in which it alleged Balsillie, Lazaridis and other RIM executives “engaged in the grant of options, in which option backdating or option repricing occurred”. A call and e-mail to the company requesting comment on the specific allegations were not immediately returned.
While no indication of the settlement amount has surfaced, I’m sure RIM will be happy just to be able to put this behind them regardless of cost. We’ll find out tomorrow.
|via Reuters|
Posted on February 3, 2009, at 4:48 pm .
It looks like the fat lady hasn’t sung yet for RIM’s hopes to purchase Canadian security company Certicom. After Certicom had successfully lobbied the Superior Court to strike down RIM’s hostile bid, instead choosing a larger offer from VeriSign, we recommended that RIM forget the whole mess even happened. Instead, the boys and girls from Waterloo have rolled up their sleeves and rushed back into the game.
Reuters is reporting that RIM has returned with a second offer for Certicom today, doubling its bid to C$3 a share, or about C$131.1 million in total. RIM’s new offer is about 43% higher than VeriSign’s bid.
Certicom has said its independent directors are reviewing the RIM bid with its financial and legal advisers and has plans to tell shareholders what it thinks of the offer no later than Thursday.
|via Reuters|
Posted on January 30, 2009, at 12:23 pm .
2009 is barely out of swaddling clothes, but it’s already time to talk about WES 2009, which takes place in sunny Orlando, Florida, from May 5th to 7th. Maybe that’s because WES 2008 was such a great show, with tonnes of people, energy and enthusiasm. Our friends in Waterloo are already banging the drum for registrations, and while I would normally ignore such requests until the last possible minute (no offense meant guys, I also have this mindset with movie rentals and filing taxes), RIM has sweetened the pot with a fairly hefty discount. If you register for WES 2009 before March 6th, you can save $400, not exactly chump change in these troubling times. We’ve included the WES registration link below, as well as links for hotel registration and a list of keynote speakers (Mikey L. and Malcolm Gladwell, yes!). See you at WES 2009!
WES 2009 Registration Page
WES 2009 Hotel Registration Page
WES 2009 Keynote Speakers List
Posted on January 26, 2009, at 12:40 pm .
The Globe and Mail was on hand last Thursday for an award luncheon in honor of RIM co-CEO Jim Balsillie, who was named ‘Outstanding Business Leader of the Year’ by Wilfrid Laurier University. The event gained additional poignancy because it came on the same day news broke that Canadian regulators were seeking C$100 million from Co-CEO’s Balsillie and Mike Lazaridis for their role in a stock option accounting controversy dating back to 1996. While the luncheon crowd was clearly biased in their defense of Mr. Balsillie at the event (Joan Fisk, CEO of the Greater Kitchener-Waterloo Chamber of Commerce, referred to Balsillie as “our boy”), significant questions as to the political timing of the charges.
Last week, Finance Minister Jim Flaherty said he will push ahead with the creation of a national securities regulator, after the release of the final report on the subject, conducted by a panel appointed by Mr. Flaherty and led by former Conservative cabinet minister Tom Hockin.
“I’m absolutely opposed to what the OSC has proposed here. I think it is grandstanding of the highest magnitude and opportunistic given the Hockin report has just come out and all of a sudden the OSC wants to be seen as a regulatory tiger that has teeth. It’s no coincidence whatsoever,” Mr. Foerster said.
“All they’ve done is found individuals with the greatest pockets,” he added. “If I were Balsillie or Lazaridis, I would fight this all the way given the OSC’s track record with respect to litigation.”
Some have argued however, that regardless of timing, the Canadian government is sending a clear and important message to the business community. Wrong is wrong, right?
Continue reading ‘Balsillie receives award amid allegations of financial impropriety’
Posted on January 23, 2009, at 10:22 am .
What a bad week for RIM. First, they’re forced to withdraw their hostile takeover bid of Certicom due to a Superior Court Order. Then, news breaks that RIM’s co-CEOs Mike Lazaridis and Jim Balsillie may be dinged for up to C$100 million for a backdating scandal (it looks like Balsillie may also have to step down from the Board of Directors). To close out the week, RIM has awoken today to learn that Internet security provider VeriSign has agreed to purchase Certicom for C$2.10 a share, roughly C$92 million total. VeriSign’s offer trumps RIM’s C$1.50 a share offer – I guess Certicom was serious when they said RIM had undervalued them.
Certicom board chairman Jeffrey Chisholm said “The special committee and the board conducted a thorough process on behalf of Certicom shareholders resulting in a significant increase in value for the company and its owners. We believe this transaction also represents a very promising opportunity for our customers and employees.”
Honestly, RIM, just go back to bed. Take a waiver on the day, have a fun weekend, and come back Monday pretending this week never happened. Thanks to my boy M-Dawg for the tip!
Read full Certicom Press Release
