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Xerox To Revamp Healthcare IT Business
Xerox Corp said it would overhaul its healthcare IT business and record a related impairment charge of about $145 million in the second quarter.
The company said it would end sales of its integrated eligibility system, a software system which can support operations in call centers and document imaging.
The healthcare business provides administrative and care management solutions to state Medicaid programs and government healthcare programs.
“Going forward, Xerox will focus on managing and completing the current Health Enterprise implementations, and will be highly selective in responding to new Medicaid Management Information System opportunities,” the company said on Friday.
The healthcare business contributes “$2 billion plus” to total revenue, a company spokeswoman said. The company reported total revenue of $19.54 billion for 2014.
“Basically, they are focusing their government healthcare business away from less profitable initiatives that they were pursuing. I see it as a positive,” Cross Research analyst Shannon Cross said.
“From a long-term stand point, it (Medicaid) is a profitable business,” Cross said.
Xerox, which has been shifting its focus to IT services from making printers and copiers, adjusted its earnings estimate for the quarter ended June to reflect the charge.
The company said it now expects earnings from continuing operations of 9-11 cents per share, below its prior guidance of 17-19 cents per share.
Shares of Xerox, which is expected to report second-quarter results on July 24, were up 1.6 percent at $10.79 in afternoon trading.
Chase Building 1/2 Billion Dollar Data Center
August 24, 2012 by admin
Filed under Around The Net
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The enthusiastic backer of Enron and serial over charger of mortgage payers, JPMorgan Chase has just splashed out on a new $500 million data center.
CEO Jamie Dimon announced the move which practically everyone in the IT industry finds a bit strange. While Chase is the US’s largest bank, the new facilities are a little big by anyone’s standard. It is about the same about of money that Google and Microsoft in their largest data centres for their cloud networks.
Dimon cited the figure as one of the advantages of being a big size. It can afford to invest cash in this way. Size lets Chase build a $500 million data centre that speeds up transactions and invest billions of dollars in products like ATMs and apps that allow your iPhone to deposit cheques, he enthused.
JPMorgan Chase operates two large data centres in Delaware and a 400,000 square foot facility. It also acquired data centres in its deals for distressed rivals Bear Stearns and Washington Mutual in the early days of the 2008 financial crisis. So why it needs a huge new one is anyone’s guess.
T-Mobile To Make More Cuts
May 25, 2012 by admin
Filed under Smartphones
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T-Mobile USA will eliminate an additional 900 jobs in a restructuring, on top of a 1,900-job reduction at its call centers that was announced in March, the carrier confirmed on Wednesday.
T-Mobile, now with about 36,000 employees, has faced more than two years of subscriber losses. Last year, the wireless carrier lost out on a $39 billion deal to be taken over by AT&T — federal regulators rejected the deal.
In its first quarter results announced May 9, T-Mobile said it lost 510,000 contract customers. It now serves 33.4 million customers.
Not having the iPhone 4S to sell, compared to the other three major U.S. carriers, also hurt T-Mobile and lead to more contract deactivations, the company said in its first-quarter results.
A T-Mobile spokeswoman said in an email that the elimination of 900 jobs was the result of a “restructuring of key functions and departments across the company, including the elimination of some positions and outsourcing of others.”
Cisco Lends A Hand In Fighting Fraud
Cisco released an API at the Interop 2012 Conference this week for its branch routers designed to enable third-party developers to write applications to beef up the security of phone calls over the router network.
The Cisco UC Gateway Services API is a Web-based programming interface that allows customers and developers access to call information over a Cisco ISR G2 router at the edge of a voice network, such as signaling and media. This information can be used to detect and help prevent malicious activity such as social engineering and identity theft scams, contact center account takeover fraud, unauthorized network and service use, and denial-of-service attacks.
Applications written to the API can then apply appropriate action to terminate, redirect or record the call.
Cisco, citing data from the Communications Fraud Control Association, says global telecom fraud losses are estimated to be $40 billion annually.