REFILE UPDATE 1-Cogeco Cable profit falls on impairment charges

Cogeco Cable Inc, a Canadian cable TV, Internet and phone services provider, reported a lower third-quarter profit as its unit Cogeco Cable Canada booked impairment charges during the period.

Net profit fell to C$35.5 million ($33.3 million) or C$0.72 per share, for the quarter ended May 31, from C$48.1 million, or C$0.98 per share, a year earlier.

Cogeco Cable Canada recognized an impairment charge of $32.2 million related to an Internet Protocol Television project.

The Montreal-based company's Canadian cable services unit lost 8,021 cable customers, while 1,433 telephone customers canceled their services in the quarter.

The U.S. cable services unit of the company lost 1599 cable customers, while it added 733 new telephone customers during the quarter.

Revenue rose by 6.9 percent to $496.4 million.

Owned by media and telecommunications company Cogeco Inc , Cogeco Cable competes with Rogers Communications Inc , Telus Corp and BCE Inc. ($1 = 1.0648 Canadian Dollars) (Reporting By Sudarshan Varadhan in Bangalore; Editing by Gopakumar Warrier)

Apple targets rising water use, production partners' emissions

Apple Inc acknowledged on Wednesday it needs to address manufacturing partners' carbon emissions and its own rising water consumption, though the iPhone maker said it had cut back sharply on greenhouse gas output.

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Apple last year hired former Environmental Protection Agency chief Lisa Jackson to push cleaner initiatives, amid past criticism over its emissions and use of toxic materials. Observers say it has improved its practices and earned better scores from groups such as Greenpeace.

On Wednesday, Apple released its 2014 environmental responsibility report, saying investments in renewable energy helped slash its carbon footprint from energy use by 31 percent from fiscal 2011 to fiscal 2013. That's despite power consumption soaring 44 percent over the same period. (here)

But the company, which is building its future main campus not far from its current base in Silicon Valley, said water usage had spiked as a result of general construction and expansion. It also blamed production partners for the largest portion of its carbon footprint, without naming them.

Foxconn and Pegatron in Asia are among the companies Apple contracts to build devices like the iPad and iPhone.

"Carbon emissions from our manufacturing partners remain the largest portion of our carbon footprint, an area we're committed to addressing," the company said in a blog post. (Reporting by San Francisco newsroom)

REFILE UPDATE 1-Cogeco Cable profit falls on impairment charges

Cogeco Cable Inc, a Canadian cable TV, Internet and phone services provider, reported a lower third-quarter profit as its unit Cogeco Cable Canada booked impairment charges during the period.

Net profit fell to C$35.5 million ($33.3 million) or C$0.72 per share, for the quarter ended May 31, from C$48.1 million, or C$0.98 per share, a year earlier.

Cogeco Cable Canada recognized an impairment charge of $32.2 million related to an Internet Protocol Television project.

The Montreal-based company's Canadian cable services unit lost 8,021 cable customers, while 1,433 telephone customers canceled their services in the quarter.

The U.S. cable services unit of the company lost 1599 cable customers, while it added 733 new telephone customers during the quarter.

Revenue rose by 6.9 percent to $496.4 million.

Owned by media and telecommunications company Cogeco Inc , Cogeco Cable competes with Rogers Communications Inc , Telus Corp and BCE Inc. ($1 = 1.0648 Canadian Dollars) (Reporting By Sudarshan Varadhan in Bangalore; Editing by Gopakumar Warrier)

BRIEF-Quanta Computer says June revenue up 4.8 pct

Quanta Computer Inc

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* Says June revenue at T$71.8 billion ($2.40 billion), up 4.8 percent y/y

Source text in Chinese: bit.ly/1oEDOWD

Further company coverage: ($1 = 29.8850 Taiwan New Dollars) (Reporting by Hong Kong and Singapore newsrooms)

BRIEF-Orad Hi Tec Systems estimates revenue growth of 22% to 26% in FY 2014

Orad Hi-Tec Systems Ltd : * Says estimates revenue growth of 22% to 26% in FY 2014 * Says expects FY 2014 revenues to be between USD 39.0 mln-USD 40.0 million * Sees operating profits between 6% to 8% of revenues in FY 2014 * Source text for Eikon * Further company coverage

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Arseus seeks to divest IT unit - paper

Belgian medical supplies group Arseus will sell its IT unit Corilus to fully concentrate on medical compounds, Belgian business unit De Tijd wrote on Thursday.

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The group has made a string of divestments in recent quarters and has focused spending on its medical compounding unit Fagron, which supplies materials to pharmacies to make bespoke medicines.

While the revenues of Corilus, which makes software for doctors and pharmacists, was still growing in the first quarter of 2014, Fagron grew at more than twice the pace, even corrected for acquisitions.

The process of selling Corilus was still at an early stage and could take months, De Tijd wrote.

Arseus was not immediately available for comment. (Reporting by Robert-Jan Bartunek)

Symantec in talks with Chinese government after software ban report

U.S. security software maker Symantec Corp said it is holding discussions with authorities in Beijing after a state-controlled Chinese newspaper reported that the Ministry of Public Security had banned the use of one of its products.

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The China Daily reported on July 4 that the ministry had issued an order to branches across the nation telling them to uninstall Symantec's data loss prevention, or DLP, products from their systems, saying the software "could pose information risks."

The newspaper also said Chinese news site Sohu.com had reported that the public security bureau had banned Symantec's DLP products from future procurement projects. (bit.ly/1okVF3v)

Symantec spokeswoman Colleen Lacter told Reuters that her company was in discussions with the Chinese government about the matter, though she declined to confirm or deny the newspaper's account of what had happened.

"The discussions are ongoing and it's premature to go into detail at this time," Lacter said via email.

When asked if other Chinese government agencies were pulling out Symantec's software, Lacter said: "We believe (this) is an isolated incident to the Ministry of Public Security."

The ministry declined to provide immediate comment by phone and did not respond to faxed questions.

DLP software helps organizations prevent workers from intentionally or unintentionally removing sensitive data from computer networks. It is one of several categories of security software sold by Symantec, which is best known for anti-virus programs that detect malicious software on personal computers.

Talk of China's decision to target Symantec comes following reports in May that China banned government use of Windows 8, the current version of Microsoft Corp's operating system for personal computers.

The official Xinhua news agency said the ban was to ensure computer security after Microsoft ended support for its Windows XP operating system, which was widely used in China. (Reporting by Jim Finkle; Additional reporting by Beijing Newsroom; Editing by Christopher Cushing)

RPT-Fitch Affirms France's Vivendi at 'BBB'; Outlook Stable

(The following statement was released by the rating agency)

Fitch Ratings has affirmed France-based Vivendi SA's (Vivendi) Long-term Issuer Default Rating (IDR) and senior unsecured rating at 'BBB'. The Outlook on the Long-term IDR is Stable.

The affirmation reflects the completion of Vivendi's significant disposals (stakes in Activision Blizzard AB and Maroc Telecom) and its plans to sell SFR, the 2nd largest French telecoms operator, as part of their plan to move away from telecoms and become an international media group. After returning EUR4.8bn to shareholders, this should leave Vivendi with a net cash position to fund future investments and acquisitions in the media sector.

Maintaining the 'BBB' rating will depend on the strategic plan that Vivendi adopts, the acquisitions made, coupled with management's ability to balance financial leverage with an operating profile that could be less predictable than when Vivendi had owned more telecoms assets.

KEY RATING DRIVERS

Disposal of Telecom Assets

The EUR4.1bn disposal of Maroc Telecom and the planned sale of SFR demonstrate that Vivendi is well on its way to refocus the group towards media and away from more capital- intensive telecom assets. Altice SA has entered a binding agreement to pay Vivendi EUR13.5bn cash together with a 20% shareholding in the new Numericable/SFR entity, as part of the sale. The sale of SFR comes at an opportune time, as the company has been facing pressure on revenue and EBITDA (down -6% and -11% respectively in 1Q14).

Financial Policy Remains Conservative

A dividend to shareholders of EUR1.34bn is expected to be paid in June 2014. Vivendi also intends to distribute a further EUR3.5bn contingent on the successful disposal of SFR. Taking into account SFR disposal proceeds and these proposed shareholder distributions, Vivendi would have ended 1Q14 with EUR1.6bn in net cash, on an adjusted basis. Vivendi has said that it continues to target a 'BBB' rating and Fitch would expect management to take a conservative approach to managing its balance sheet as it continues its transformation into a media group.

Existing Media Assets Well Positioned

Vivendi's music asset UMG is currently the industry leader in recorded music with a market share of over 30%, and one of the leading global music publishing groups. The group's TV business, The Canal+ Group, benefits from fairly stable subscription-based revenue streams from operating the leading Pay-TV platform in France while also benefitting from growth opportunities in Africa, Poland and Vietnam. Fitch expects cashflow generation at these two businesses to be fairly stable.

Media Strategy Still Unclear

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Visibility on Vivendi's plans remains limited. A more detailed strategic plan is likely to be announced in the three to six months after the annual shareholder meeting on 24 June 2014 when Vivendi's new Chairman, Vincent Bollore, will be formally appointed.

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A more media-centric group is likely to have more volatile cashflows and be less able to maintain a certain quantum of debt for a given rating level than when Vivendi had a greater exposure to telecoms assets. Given Vivendi's expected net cash position after the sale of SFR, management should have significant resources to pursue potential acquisitions in the media sector. Depending on the strategy that emerges and any potential media investments, an upper limit for Vivendi's indebtedness would be around 2.0x to 2.5x funds from operations (FFO) adjusted net leverage to maintain its 'BBB' rating. A strategy tilted towards less predictable or advertising-driven businesses is likely to result in a leverage threshold at the lower end of this range.

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FX Risks through GVT

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GVT, Vivendi's Brazilian telecoms operations, has expanded its network in Brazil and continues to deliver strong revenue growth (12.6% constant currency growth in 1Q14). Maintaining this growth requires a high level of capex, which limits GVT's free cashflow generation. Vivendi's strategy of funding investments mainly from the parent company means there is little debt in local currency at GVT, leaving Vivendi exposed to fluctuations in the Brazilian real.

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Strong Liquidity

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At end-1Q14, Vivendi had EUR5.9bn undrawn available facilities coupled with cash on balance sheet of EUR868m, which is expected to increase by EUR4.1bn following the sale of Maroc Telecom on 14 May 2014. Vivendi has further increased its cash position following the sale of 6% of Activision Blizzard for USD850m on 22 May 2014. The proposed sale of SFR should also provide cash inflow of EUR13.5bn.

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Vivendi has enough liquidity to cover all of its debt maturities, assuming the SFR sale is successful. At end-1Q14, the average term of the group's debt was 3.8 years, down from 4.4 years as at end-2013, due to the issue of short term commercial paper.

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RATING SENSITIVITIES

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Negative: Future developments that could lead to negative rating action include:

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-FFO adjusted net leverage higher than 2.0x to 2.5x.

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-Pressure on free cash flow driven by significant underperformance in Vivendi's ongoing businesses

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Positive rating action is unlikely in the medium term unless management pursues a more conservative financial policy.

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