Spinoff of Embarq is set for May 17
orlandosentinel.com
Chris Cobbs, Sentinel Staff Writer
Posted May 8, 2006
"Embarq Communications Inc., the new company created by Sprint Nextel Corp.'s spinoff of its landline and local long-distance operations, is expected to begin life on its own May 17.
That's the day when the spinoff is due to be completed, Embarq said recently in providing its financial outlook for 2006.
The company will have about 2.1 million landline customers in Florida, with a service area that includes parts of Osceola, Orange and Seminole counties in Central Florida.
Overall, Embarq said, it expects its operating revenues to slip to between $6.4 billion and $6.5 billion in 2006 from $6.7 billion in 2005.
That's because the number of access lines it operates is expected to fall between 5.5 percent and 7.5 percent this year because of growing competition from wireless and cable phone services, the company said.
Embarq said it will focus its marketing efforts on high-speed Internet services, which it hopes could lead to a 40 percent increase in the number of broadband lines in service.
But upfront selling and installation costs could partially offset any spike in data revenue, the company warned.
Annual expenses tied to corporate support are expected to reach $80 million in the new company's first year, increasing further to $100 million in the next two years.
The company said it hopes productivity improvements will help offset the negative effects of other factors that could dampen revenue.
Embarq, which will have about 20,000 employees nationwide at the time of the spinoff, will provide local and long-distance service, broadband Internet access, wireless entertainment and logistics, and other communications-related services, the company said.
Sprint Nextel, meanwhile, will concentrate on wireless services.
Awards for Riptide Software
Orlando-based Riptide Software Inc. won several awards for excellence in interactive-media production at the Horizon Interactive Awards, an international competition with entrants from 17 countries.
The awards recognize Web sites, CDs, DVDs, video, kiosks, online advertising and other interactive media.
Riptide received a silver award in the education/training category and a bronze award in the Flash category for its Future Soldier Training System Web site.
Computer uses AuthenTec sensor
Fingerprint sensors made by AuthenTec Inc. of Melbourne will be used for advanced security and other touch-controlled features in the new MPC TransPort T2400 dual-core notebook computer.
AuthenTec's fingerprint sensor eliminates the need for passwords, permitting only authorized users to access private Web pages and files." |
