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| Sunday, May 17, 08:08:53am | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4, 5, 6, 7, 8, 9, 10 ] |
| Subject: He said the deal would improve ERG's operating results by eliminating about $15 million in annual goodwill amortisation charges, and removing the need to fund Proton research and development. | |
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Author: ERG plays last minute smart cardMARCH 27, 2003 Australian I.T. |
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Date Posted: Thursday, April 17, 11:04:54pm In reply to: Newspapers reporting result--March 7 2003 SMH 's message, "Noteholders have tickets to ride" on Thursday, March 06, 08:38:56am http://australianit.news.com.au/articles/0,7204,6193578^15339^^nbv^15306-15321,00.html ERG plays last minute smart card Geoff Elliott MARCH 27, 2003 PERTH technology company ERG is in the middle of a cash crunch but has managed to fend off the bailiffs again with an 11th-hour deal to raise as much as $60 million. ERG said it had sold its Belgian-based subsidiary Proton World, which made smart card technology, to microchip maker ST Microelectronics. ERG said it sold the company for $110 million but would bank $60 million cash after paying inter-company accounts and allowing for a 20-year licensing deal that allowed it to continue to access Proton technology. ERG said it expected settlement of the transaction in April. Smart cards let commuters use public transport, for example, and have the fare automatically deducted from their card. ADVERTISEMENT Last month, ERG won a reprieve from investors and bankers when it was finally awarded a $320 million contract to introduce smart card technology on the NSW public transport system. The contract had been held up for more than a year, after contractual disputes with a rival tenderer. Earlier this month, ERG revealed a $124.9 million net loss for the December half and was forced to release heavily qualified financial statements in which directors questioned its ability to continue as a going concern. They said new funding and asset sales would have to be completed for the company to survive. ERG has forecast $113 million cash in the bank at the end of the financial year. It needed the Proton sale to help meet this forecast. "The sale is part of our strategy to bolster ERG's balance sheet," chief executive Peter Fogarty said yesterday. He said the deal would improve ERG's operating results by eliminating about $15 million in annual goodwill amortisation charges, and removing the need to fund Proton research and development. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
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| Schlumberger plans IPO of smartcard arm Published: April 16 2003 22:07 | Last Updated: April 16 2003 22:07 | The unit is valued at about ?800m. The Franco-US business has become the world's leading producer of smartcards after overtaking France's Gemplus in revenues in the second half of last year. | Thursday, April 17, 11:10:24pm |