Eurobites: Ericsson & Friends Form Automotive Edge Computing Consortium

In today's regional roundup: Ericsson and friends form new connected car consortium; encouraging trends from Tecnotree; Manx Telecom suspends its CFO; Avanti seeks a new CEO.

  • Ericsson AB (Nasdaq: ERIC) has joined Intel, NTT Group (NYSE: NTT), NTT DoCoMo Inc. (NYSE: DCM), Toyota Motor, Toyota InfoTechnology Center and automotive components vendor Denso in forming the Automotive Edge Computing Consortium to develop the network and computing infrastructure needed for "automotive big data." The members aim to "develop an ecosystem for connected cars to support emerging services such as intelligent driving, the creation of maps with real-time data and driving assistance based on cloud computing." The members note that the expected data traffic volumes between vehicles and cloud infrastructure will hit 10 exabytes per month by 2025, about 10,000 times more than currently exists, and that this will "trigger the need for new architectures of network and computing infrastructure to support distributed resources and topology-aware storage capacity." For more on this see this Ericsson announcement.

  • BSS solutions specialist Tecnotree Corp. has reported improved profitability for the first six months of 2017 following further cost cuts, though warns that its "financial situation and liquidity remain critical." For the first six months of 2017, the Finnish software vendor reported revenues of €27.3 million (US$32.3 million), down 6.5% year-on-year, and an operating profit of €2.9 million ($3.4 million), compared with an operating loss of €1.4 million ($1.65 million) for the first half of 2016. At the end of June, the company had 719 staff, down from 926 a year earlier. The company noted that it is encouraged by its improving margins but that it still needs to reduce costs and rationalize its portfolio. It is also in negotiations regarding short-term financing and long-term investments to improve its financial footing.

  • Manx Telecom Ltd. , the main network operator on the Isle of Man, has suspended its CFO, Danny Bakhshi, while he is "the subject of criminal proceedings unrelated to his duties as Group CFO." According to The Daily Telegraph, Bakhshi has been charged "with an offence related to bringing cannabis on to the island from Amsterdam." The share price of Manx Telecom, which is listed on London's AIM market, dipped by about 3% when the news was announced mid-Thursday but has recovered slightly Friday morning to 185 pence. The news comes only a day after another AIM-listed company, Telit, was embroiled in its own legal scandal. (See Eurobites: Telit's CEO Probe Not Cool for Cats .)

  • News from yet another AIM-listed company... Satellite operator Avanti Communications Group plc has announced that CEO David Williams is stepping down and will be replaced by non-executive director and former Vodafone strategy director Alan Harper until a permanent replacement is found. For more background on Avanti and Williams, see this Space News article.

    — Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, International Group Editor, Light Reading

  • James_B_Crawshaw 8/12/2017 | 3:11:33 AM
    Tecnotree With just EUR1m in the bank Tecnotree is skating on thin ice. However, they do appear to be FCF positive for now.

    The shares are down 96% since 2006 and the market cap is just EUR10m. For a company with around EUR60m in annual sales that isn't much.

    I hope they can manage to turn things around. 
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