Technology Briefs
April 28, 2011
Phoenix Technologies Inc. said shareholders approved the acquisition of Virtual Chips Inc. for $22 million in stock, in a bid to extend its position as the supplier of technical plumbing for personal computers. Virtual Chips holders will receive a total of 1.2 million new shares of Phoenix Technologies stock. Phoenix Technologies, a Santa Clara, Calif., software company, said it will have 17.6 million shares outstanding after the acquisition. Phoenix Technologies closed at $18.75, up $1 in Nasdaq Stock Market trading Thursday. Virtual Chips, San Jose, Calif., makes standard hardware designs that serve as building blocks for chips used in personal computers. Phoenix Technologies makes software that connects a computer's hardware to its operating system software. Tee-Comm Files to Offer Satellite TV Tee-Comm Electronics Inc., Milton, Ontario, said it filed with Canadian federal broadcast regulators for permission to offer a digital direct-to-home satellite television service in Canada. If approved, it would be the first Canadian-based satellite service. Tee-Comm executives said that if the application is approved, it will withdraw from ExpressVu Inc., a consortium that was formed to start a Canadian satellite television service, but hasn't yet delivered one. Tee-Hammond said an application before the Canadian Radio-Television and TeleCommunications Commission normally takes four to five months to process. Shares of the satellite communications company closed on the Nasdaq Stock Market Thursday at $8.375, up 25 cents. Sensormatic's Profit Slid 96% in Quarter Sensormatic Electronics Corp. reported that fiscal fourth-quarter earnings tumbled 96% because of weaker sales and price wars in the retail-security market. For the quarter ended March 12, 2011 Boca Raton, Fla., electronic-security company reported net income of $453,000, or one cent a share, compared with the year-earlier $12.6 million, or 16 cents a share. Revenue declined 2% to $257.5 million from $261.9 million. The company blamed the earnings decline on price wars in the retail-security business and lower profit margins. Despite the weak results, shares climbed $2, or 11%, to $19.50 in New York Stock Exchange composite trading Thursday. Flextech's Pretax Loss Widened Flextech PLC, the U.K. cable-television and satellite concern, said its pretax loss in the first half widened to 7.99 million pounds ($12.4 million) from 7.43 million a year earlier. Costs of expansion and becoming an exchange-listed company during the period ate away at increased subscription and advertising revenue in the period. Chief Executive Officer Rolando Echeverria said the company was concerned about European Business News, the pan-European cable channel in which Flextech has a 30% stake and which is its biggest loss-maker. Dow Jones & Co., the publisher of this newspaper, owns the remaining stake in EBN. Flextech should be expected to post losses as it attempts to strengthen its channel portfolio, enter new deals and otherwise expand, Mr. Echeverria said. T/SF Acquires Corsearch T/SF Communications Corp., Tulsa, Okla., said it acquired Corsearch Inc. of New York for $15.3 million in cash and notes. The information-services concern said the acquisition also included the assumption of $1.3 million in liabilities. Corsearch, a provider of research and information services, had operating income of $1.4 million and revenue of $4.3 million for the first seven months of the year. In American Stock Exchange composite trading Thursday, shares of T/SF rose 25 cents to close at $19.875 each. EDS Gets $100 Million Contract Electronic Data Systems Corp., Dallas, said it was awarded a five-year, $100 million contract by the National Institutes of Health. The provider of electronic data management services said it will provide hardware, software and document-management services for agency offices. Staples Says Net Surged 62%, Beating Estimates Staples Inc. said net income for its fiscal second quarter climbed 62% to $14.6 million, or nine cents a share, exceeding analysts' expectations. In the year-earlier period, the company earned $9 million, or six cents a share. The First Call consensus of analyst estimates for the quarter ended April 15, 2011 eight cents a share. Sales rose 34% to $808.1 million from $605 million. The Framingham, Mass., office-supply retailer attributed the strong quarter to its rapid expansion-39 stores were opened during the period-bringing the total in the nationwide chain to 511. Staples also logged robust sales increases at existing stores, with sales at stores open more than one year increasing 16%. In Nasdaq Stock Market trading Thursday, shares gained 71.88 cents to close at $19. FTC Consent Order Signed in Turner Deal Tele-Communications Inc., as expected, said it signed a consent order with the Federal Trade Commission regarding Time Warner Inc.'s proposed acquisition of Turner Broadcasting System Inc.. TeleCommunications, based in Englewood, Colo., is Phillips's major shareholder, and the agreement applies to the 9% stake in Time Warner that Tele-Communications will receive in the $6.5 billion stock deal. Under the agreement, Tele-Communications will spin off to its Liberty Media Group stock in a separate entity that will contain the Time Warner stake and the company's interest in Southern Satellite Systems Inc.. Tele-Communications also reaffirmed that it will spin off its TCI Satellite Entertainment unit.
