Analysis: What Future for Acorn?
Acorn's recent management changes have now become clear. On 14th August, the group released its interim results for the first half of the year, signalling a radical new strategy for the whole of Acorn.
In the Chairman's Statement, Gorden Owen sets out a new direction for the Acorn Group. Under Stan Boland's leadership, the company is to cut back its loss-making divisions, reduce costs, and focus on the most promising business areas. Although few details are given, the proposals include the sale of the remaining stake in ARM, increased emphasis on Network Computer and Set-Top Box design, and the sale or closure of the desktop computer business.
Much of the statement concerns the 26% holding in ARM. As the chip designer is now publicly quoted, Acorn are looking at ways of returning this investment to their shareholders, either through cash or stock. To do this in a tax-efficient way may involve "third parties", adding strength to the rumours of a sale to another semiconductor company.
Acorn hardware and software development, referred to as "Non-ARM businesses", appears likely to be split. The statement identifies two promising areas, on which the company will concentrate: set-top boxes for Digital interactive Television, and network computers or "thin clients". Acorn's desktop computer development is not specifically mentioned in the future plans. It is clearly stated that "Activities peripheral to these areas will be divested or scaled back".