Showing posts with label recent financial news. Show all posts
Showing posts with label recent financial news. Show all posts

Sunday, February 23, 2014

From Sheffield son to Silicon Valley multimillionaire

David Richards, multimillionaire chief executive of software company Wandisco, has come a long way from his humble north-of-England roots.
The 43-year-old presides over a company worth more than £298m ($491m), of which his 17% stake totals about £51m.
He lives in the San Francisco Bay Area, where he is in the process of building a new £2.4m home complete with its own vineyard.
His neighbours are fellow Silicon Valley technology millionaires.
It is not a bad state of affairs for the son - and grandson - of steelworkers from Sheffield.
'Long-haired yetis'
Born in 1970, Mr Richards says that from an early age he knew he didn't want to follow his father into the steel industry.
"I was determined to get out and manage my own future," he says.
Deciding against going to university, he took a job as a management trainee at Barclays Bank. It was an early, but rare, career mistake.
Mr Richards says: "It taught me that the one thing I definitely didn't want to do was become a manager in Barclays Bank."
Quickly realising the error of his ways, and following some advice from an old teacher, he signed up for a degree in computer science and business studies at the then Huddersfield Polytechnic.
"At first I [again] wondered what I'd done," he says, "because computer scientists seemed like long-haired yetis who never went out and never met girls. But I persevered."
Wandisco enables large companies to maintain working computer systems
After graduating in 1992, Mr Richards wanted big city opportunities, and so he moved to London to work for Druid, a rapidly growing software consultancy.
Offered the choice between a company car and stock options, the business-minded Mr Richards wisely chose the latter.
After Druid floated on the stock market, he found himself a near-millionaire, aged just 22.
"My first car was a C-Class Mercedes which I paid for in cash," he says. "I just thought this was the way life was meant to be."
Frosty encounter
Mr Richards then decided to set up his own consultancy, offering his expertise in business software.
"I could have gone to work for some very big companies, but I had the drive to set up my own firm instead," he says.
He found that his services were in high demand in the mid-1990s, as an ever growing number of companies installed software systems.
It was very lucrative work, but by then Mr Richards had big ambitions to move across the Atlantic.
"I wanted to get the US by hook or by crook," he says. "The internet was taking off and Silicon Valley beckoned. It was where it was all happening."
At that time Mr Richards also met his future wife, Jane, in a hotel bar in Bath. "She was a bit rude to me," he says, after a friend mistook her for a barmaid.
Despite the frosty nature of their first encounter, romance blossomed and she accompanied him to the US. They headed first to New York before settling in California.
'It was a travesty'
In 1998, and now based in Silicon Valley, Mr Richards launched a business software company called Insevo. He admits that he learnt a harsh lesson in how he funded it.
"I went to see some venture capitalists and managed to raise $25m [£15m] very quickly," he says. "This was just what you did at the time - it was the perceived wisdom, and I was a sheep."
But in business, access to easy money can lead to some poor investment decisions, as the approaching dotcom crash of 2000 was to make painfully evident.
In his view, venture capitalists looking for a quick profit imposed restrictive big business practices on Insevo, a rapidly growing start-up that should have remained nimble and flexible.
Ironically, his investors turned down an offer for the company worth "tens of millions of dollars", he says, before eventually selling up a few years after the crash for a lot less.
"It was a travesty," Mr Richards says, with some bitterness still evident.
'True genius'Mr Richards left to set up Librados - "freed men" in Spanish - with four other partners, vowing not to rely on venture capital again.
Within a year the company, which did much the same as Insevo, had 50 customers, and was then bought out for for $10m.
"We were like killers," says Mr Richards, recalling his company's rapid growth and high-energy work ethic.
Yet it was meeting a Silicon Valley-based IT expert called Yeturu Aahlad, which Mr Richards says changed his life.
"I knew a true genius when I saw one," says Mr Richards.
Dr Aahlad had devised a way of replicating and synchronising multiple computer databases in real-time, so that if one server crashed the whole system could still function. The discipline is called "wide area network distributed computing".



Wal-Mart reports fall in quarterly profits

Wal-Mart said it would invest "aggressively" in e-commerce
The world's largest retailer, Wal-Mart, has reported a 22% drop in quarterly profit and given a weaker-than-expected earnings forecast for the coming year.
Net income for the three months to 31 January fell to $4.4bn (£2.6bn) from $5.6bn a year earlier.
Wal-Mart said tough winter weather, cuts to government benefits and higher taxes contributed to the fall.
Wal-Mart's UK supermarket business, Asda, said like-for-like sales fell 0.1% in the final quarter of 2013.
Investment
Wal-Mart said reduced food-stamp benefits had been partly behind its lower profits, along with competition from heavy discounting during the holiday season.
Comparable sales at its US stores fell by 0.4% in the three-month period. Wal-Mart's total revenue for the quarter rose by 1.4% to $129.7bn.
Wal-Mart said it expected net sales this year would grow at the lower end of its earlier forecast of 3%-5%.
Its earnings forecasts for this year also fell short of analysts' forecasts. Wal-Mart expects profits to be between $5.10 and $5.45 per share, against expectations of about $5.54.
Chief executive Doug McMillon said he would "innovate to improve productivity" to keep prices low.
He added: "We will invest aggressively in e-commerce and increase our small store rollout in the US, as we have done in several other countries, to deliver value and convenience."
The retailer would keep focusing on providing "supercentres" and smaller stores closer to customers' homes, he said.
'Tough year'
In the UK, while Asda's underlying sales fell 0.1% in the final quarter of the year, the supermarket said they were up 0.5% over 2013 as a whole.
The UK's major supermarket chains struggled to boost sales over the Christmas period, coming under fierce competition from discount retailers such as Aldi and Lidl, and from more upmarket offerings from Waitrose and Marks & Spencer.
Asda's chief executive, Andy Clarke, said that 2013 had been a "tough year".
"There's little doubt that the UK retail market is undergoing significant and permanent structural change," he added.
"Though the economy is showing signs of recovery, it is still susceptible to shocks and the benefit is not yet being felt right across the country."

Hewlett-Packard revenues beat forecasts

HP's president Meg Whitman says the firm is in a stronger position today than it has been for quite some time
Computer giant Hewlett-Packard (HP) has reported a smaller-than-expected fall in net revenue and a rise in profits for the three months to 31 January.
After two years of restructuring and job cuts, the company's results suggest the technology giant is on a road to recovery.
Quarterly revenues of $28.2bn (£16.9bn) were down 1% from a year earlier, but ahead of analysts' forecasts.
Net income rose 16% to $1.43bn, up from $1.23bn a year earlier.
The firm also raised its profit forecast for the year ahead.
"HP is in a stronger position today than we've been in quite some time,"said the company's president Meg Whitman.
"The progress we're making is reflected in growth across several parts of our portfolio, the growing strength of our balance sheet, and the strong support we're receiving from customers and channel partners," she added.
HP is the world's largest maker of personal computers, but demand for its core desktop computers has slumped in recent years.
It has been attempting to move away from its reliance on personal computers in preference for computing equipment and servers to help run data centres.
The US giant said that the past two years of job cuts and restructuring efforts were starting to pay off.
In 2012, the company said it would cut 27,000 jobs worldwide - about 8% of its workforce at the time - by the end of 2014.
In December last year, it said it was cutting 1,124 posts in the UK as part of its global downsizing plans.

Donald Trump withdraws application for second golf course

Donald Trump's bid for a second golf course at the Menie Estate has been shelved only days after being submitted.
Donald Trump has withdrawn a planning application to build a second golf course at his Aberdeenshire resort.
Aberdeenshire council said plans for the McLeod course at the Menie Estate were only received earlier this week.
But the local authority now says it has been asked to withdraw the application.
After losing a Court of Session challenge to stop an offshore windfarm being developed nearby, the Trump Organisation said it had acquired a golf course in Ireland.
It added that it would focus all its investment and energy on the Irish course.
Mr Trump's team have turned down repeated requests to clarify their position regarding their Scottish investment.