Nov, 2003 : C&W Reports Revenue Drops, Progress on U.S. Exit
📅 - Cable & Wireless (cw.com) reported expected drops infirst half revenue and progress in its efforts to exit the U.S. market, according toits results for the six month period ending September 30, released today.
The UK-based carrier said in June that it would exit the U.S. market andattempt to find a buyer for its loss-making hosting division. At the time of theannouncement, it was expected that Cable & Wireless would have difficulty find abuyer due in large part to its lengthy data center leases.
The company said on Wednesday that it had made significant progress on this front, havingexited eight data centers and shaved a total of £200m off its lease commitments.
"We are making good progress in ensuring we are able to exit the US whilstmaintaining continuity of services to our customers and reducing the cost ofcontinuing operations," said Franceso Caio, CEO of Cable & Wireless. "We continue toreview and reduce the US lease exposure, including the negotiation for earlytermination with landlords."
Cable & Wireless has spent the last five months attempting to find a buyer for itsU.S. hosting assets.
In early September, it was reported that the company hadentered into discussions to sell the business, narrowing a list of sixpotential suitors down to two. The potential buyers were believed to be U.S. telecomoperators and private venture capital groups.
Late last week, rumors ofC&W's impending declaration of bankruptcy circulated. A source close to thediscussions said on Friday that a sale was imminent and was expected to close in thenext two weeks. The source did not deny the possibility of bankruptcy, but suggestedthat should bankruptcy be declared, the process would only be used to shedunderutilized office space.
A story in the Times reported late Friday that thediscussions had collapsed.
The UK-based carrier said in June that it would exit the U.S. market andattempt to find a buyer for its loss-making hosting division. At the time of theannouncement, it was expected that Cable & Wireless would have difficulty find abuyer due in large part to its lengthy data center leases.
The company said on Wednesday that it had made significant progress on this front, havingexited eight data centers and shaved a total of £200m off its lease commitments.
"We are making good progress in ensuring we are able to exit the US whilstmaintaining continuity of services to our customers and reducing the cost ofcontinuing operations," said Franceso Caio, CEO of Cable & Wireless. "We continue toreview and reduce the US lease exposure, including the negotiation for earlytermination with landlords."
Cable & Wireless has spent the last five months attempting to find a buyer for itsU.S. hosting assets.
In early September, it was reported that the company hadentered into discussions to sell the business, narrowing a list of sixpotential suitors down to two. The potential buyers were believed to be U.S. telecomoperators and private venture capital groups.
Late last week, rumors ofC&W's impending declaration of bankruptcy circulated. A source close to thediscussions said on Friday that a sale was imminent and was expected to close in thenext two weeks. The source did not deny the possibility of bankruptcy, but suggestedthat should bankruptcy be declared, the process would only be used to shedunderutilized office space.
A story in the Times reported late Friday that thediscussions had collapsed.
Reads: 1748 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/caw111203.cfm
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