Shares in Tandem Computers Inc took a $3.50 or 21% purler to land at $13 after it warned that its operating profit will be hurt by higher research and development costs in the third quarter: Tandem also expects June quarter results to be depressed by the costs involved in shifting from product to service revenue, […]
Shares in Tandem Computers Inc took a $3.50 or 21% purler to land at $13 after it warned that its operating profit will be hurt by higher research and development costs in the third quarter: Tandem also expects June quarter results to be depressed by the costs involved in shifting from product to service revenue, although turnover should be up 9% on last time’s $543.9m.
Pioneer Electronics Corp, which finally admitted that it would license Apple Computer Inc’s Mac OS in February, is to form an alliance with Sierra On-Line Inc to develop and market software for personal computers and games machines: the two will invest $11.8m to set up a Sierra Pioneer Inc joint venture in Japan next month; the new company will be capitalised at $3.5m, with Sierra putting up 51% and Pioneer 49% of the capital, Pioneer said: the new company will convert Sierra’s original software into Japanese and will develop software for sale in Japanese and Asian markets; the two reckon 4m multimedia computers will be sold in Japan in 1995.
Cable NBC appears to set the Wall Street agenda these days, and it has decreed that Sybase Inc can go to sleep again: it is no longer seen as a takeover target and one Wall Street analyst said that its shares are vulnerable to a sharp drop if an acquisition bid does not emerge, Dan Dorman reported, adding that analysts had told him there was about $10 of acquisition fever in Sybase’s current share price.
Hewlett-Packard Co cut the price of its 100VG-Hub 15 and 10/100VG Selectable PCI LAN Adaptor by as much as 15% to set a new industry price-performance level for high-speed networking hardware: new prices range from $230 for the HP 10/100VG selectable AT adapter to $6,215 for HP 10/100VG selectable EISA adaptor 24-pack; it noted that it has shipped 100,000 10/100VG selectable adaptors and 100,000 100VG hub ports since the products became available in August 1994, and quotes analysts predicting that it will have 20% of the 100Mbps local network by the end of 1995.
With AT&T Corp completing plans for its joint venture with Unisource NV last week, the Uniworld joint venture is about six months behind schedule, and it now expects to begin operations by January 1996; the venture, 60% owned by Unisource and 40% by AT&T, expects to invest about $1,000m over five years to build a joint European business.
The US Justice Department’s antitrust division is getting much tougher, and it is considering challenging Computer Associates International Inc ‘s proposed $1,740m takeover of Legent Corp, the Wall Street Journal reported, because Computer Associates is balking over the government’s concern that the combined company could monopolise parts of the industry and should divest itself of some mainframe software products – thought to be principally for VSE.
Tadpole Technology Plc’s problem is that it is structured to deliver high-value, low-volume products into niche markets, but decided that a high-end Pentium portable could be a high-volume product and tried to reorganise itself to make the switch: it is not clear what the long- term plan now is – there have been suggestions that it might seek to sell off the Pentium product, but in the meantime, reports Electronics Times, it is ready with a 133MHz Pentium model, which has to be low-volume because those chips are in limited supply, which would take it back into the high-value niches with which it is familiar.
Italian telecommunications monopoly Telecom Italia SpA spins off its cellular telephone division to shareholders today to create what it claims will be Europe’s largest cellular operation: holders will receive one share in the new Telecom Italia Mobile SpA for every Telecom Italia share held at the end of trade today, with the two firms quoted separately on the Milan bourse from Monday; the new company starts life with 2.8m subscribers, putting it significantly ahead of Vodafone Group Plc, which has just over 2m, but has to share the market with a second carrier with 1.8m subscribers, as well as two newcom
ers where Telecom Italia Mobile has a monopoly until Omnitel-Pronto Italia SpA can launch at the end of the year; business is growing at a rate of 75% a year.
Computer Sciences Corp bought the Oxford Consortium, computer services unit of the Anglia & Oxford Regional Health Authority, on undisclosed terms: estimated revenue from Oxford Consortium contracts is #10m a year; it supports some 80 hospitals and surgeries with administrative services such as finance, payroll and personnel, public relations and information technology; the big El Segundo company also gets the data centre, in Oxford.
Wow! and you can’t even buy the thing yet: home television shopping service QVC Inc says it will devote 90 minutes of programme time tomorrow to a demonstration of Microsoft Corp’s forthcoming Windows95, and viewers will be able to order it.
Controversial computer-aided drug design company Proteus International Plc, which has so far proved a triumph of hope over expectation for its backers, strengthened its management with appointment of Barry Riley as finance director from the UK head office of FMC Corp, Chicago-based chemicals and machinery group, and Stephen Jones as business development and marketing director from Roche Products Ltd.
Texas Instruments Inc says it does not intend to exercise its option to take its stake in the TI-Acer Inc memory chip joint venture to 51% and control: Acer has 58%, Texas Instruments 26% and Taiwanese institutional investors also 26%; TI-Acer plans to list on the Taipei stock exchange in 1998, which would be impossible if the company were majority-owned by a foreign firm.
Aydin Corp, Horsham, Pennsylvania telecommunications equipment manufacturer, put itself up for sale on Monday, causing its shares to jump 18% or $2.75 to $17.75, the best level seen for more than three years: it has retained Oppenheimer & Co to explore ways to maximise shareholder value, including sale.
George Soros has donated $50m of Legent Corp shares to the New York-based Open Society Institute, which promotes development of open societies around the world: the Institute, which Hungarian Soros founded in 1993, has acquired a 50-year lease to an archive described as the most extensive source of information on the former Soviet Union and its East Bloc partners, and plans to make the materials available to on-line computer users.
Sir Frank Whittle, inventor of the jet engine (there’s a German who can lay a rival claim) relates that when a prototype Gloster Whittle crashed, the police, who were alerted to the top secret nature of the aircraft and the need to recover all the scattered parts, spent three months looking for the propellor… not long ago, according to the Chicago Tribune, a young reporter walked past the office of David Burgin, editor-in-chief of the Oakland Tribune, and heard a strange clicketyclack sound – and, Burgin relates, the reporter walked into his office, looked down at the strange and noisy writing machine on the editor’s desk and said, Geez, the keys are just like a computer’s, then he looked and said, Where’s the cord? Burgin had to tell him it didn’t have one.