Five years ago: Acorn fights back with reduced losses

Acorn Computer Group has drastically cut its operating losses from £10.4m in 1995 to £2.5m in 1996, despite a reduction in turnover by £8.1m
Written by ZDNet UK, Contributor

First published 7 March, 1997

The year end results to March have sent strong signals that Acorn is re-positioning itself as a 'worldwide technology developer' and its education market collaboration with Apple is reaping some benefit.

The farming out of its education business to Xemplar, the joint venture company with Apple, has accounted for the reduction in turnover, while staff redundancies made at the end of 1995 and a re-location to "less luxurious premises", according to Acorn's financial director Gary Johnson have helped reduce overheads.

"Funding received from Oracle to help develop the Network Computer has also helped the company," said Johnson. "Developing and licensing technologies for Internet solutions and interactive TV has also lead us to markets in the US, Japan and Korea, whereas before, we were primarily involved in dealing with UK schools and colleges."

Acorn is expecting growth to continue and has already recruited to levels before its restructure in 1995. Major growth is expected in consumer Internet appliances and Johnson predicts that licensing agreements "will prove to be more significant in 1997," which should, he said, put Acorn back into the black.

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