Cable & Wireless issues profit warning

Comms giant predicts more doom and gloom

Cable & Wireless (C&W) has said it expects sales to fall as a result of difficult market conditions.

In a trading update, the communications giant said that pressure on voice over IP connectivity prices, and the collapse of revenue from small to medium sized enterprise (SME) customers, had led to reduced revenue in partner services.

Chief executive Graham Wallace said: "The current trading environment remains difficult. However, demand from our large corporate customers for IP and data services remains strong, with good revenue growth in this area and a robust order book."

Alasdair Reppie, pre-sales design manager at C&W reseller Pinacle, said: "The SME market is still very much alive and there are opportunities out there. We have seen the most demand from companies at the larger end of the SME space."

In July the company doubled the number of employees working with the channel as part of its aim to target SMEs via resellers and distributors such as Ingram Micro and Sphinx CST.

A C&W representative said the announcement would have no impact on its indirect sales approach.