NDS Group plc (Nasdaq: NNDS) has fired more than 100 employees in Israel. The company has more than 1,000 employees in Israel, mostly at its R&D and support center at Har Hotzvim in northern Jerusalem.
NDS also has activity in Netanya, through start-up Jungo, which it acquired two years ago. Worldwide, west London-headquartered NDS has 4,000 employees.
NDS openly admits that 2009 will be "challenging", with only single-digit revenue growth. Last month, the company published a disappointing financial report for the first fiscal quarter. NDS COO Raffi Kesten, who is responsible for activity in Israel, told "Globes" at the time, "At this stage, we see no such effect and we're continuing business as usual." He said that while the company had halted recruitment, it was not firing anyone in Israel.
NDS's chairman, president and CEO is Dr. Abraham Peled. The company makes encryption and conditional access equipment for digital pay-television operators and content providers. The company's share fell 0.9% on Friday to $47.68, giving a market cap of $2.8 billion.
Rupert Murdoch's News Corporation (NYSE: NWS; ASX: NCP), which owns 72% of NDS, and two funds advised by Permira Advisers LLP, have made an offer to purchase outstanding shares in the company and take it private. If NDS shareholders accept the offer, the buyout should be completed during the first quarter of 2009.
Kesten told "Globes" in response, "NDS is moving forward in its streamlining, due to a number of factors, including the challenges expected this year and difficulties arising from exchange rates. We decided to reduce a number of activities in places that will not cause an erosion of revenue in the short and mid-term. The reduction is also not expected to affect our long-term R&D, including development related to PVR, PC, and other activities." He added that part of the reductions are related to the changeover to the new fusion system that the company developed, which reduced the need for support for old systems.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2008
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