Swiss telecommunications equipment group Ascom Holding AG has cut 270 jobs as part of a sweeping restructuring of its troubled US networking equipment division Ascom Timeplex Inc, as it continues the search for a partner. The group reported pre-tax profits for the six months to June 30 down 27% to the equivalent of $6.6m, which includes a $12.4m restructuring charge, on revenue that rose by 39% to $32.3m. Following a stong first quarter, where Ascom reported a 19% rise in revenue to $17m, the company said it was cautiously optimistic for the full year and promised to restore dividends (CI No 2,896). But negotiations with a partner for Timeplex collapsed during the summer and Ascom said full year profit would depend on possible provisions and restructuring costs in connection with the search for a new partner. Talks have been initiated with other potential partners, and the company has made it clear that it is open to offers. This could result in the outright sale of Timeplex, a leader in the area of enterprise networks and the core of Ascom’s Enterprise Network segment, or a majority or minority stake by another company. Timeplex will now try to make amends for the delayed launch of its Synchrony range of products, but it said it faces a difficult battle to restore confidence and win customers back.
