Technology Briefs
March 30, 2011
Digital Equipment Corp., Maynard, Mass., said it will open a switching and commercial data center to allow Internet service-provider companies faster access to the global computer network. Digital said it has agreements with four service providers to house servers and switching equipment in the center, in Palo Alto, Calif., which it says is the first that isn't affiliated with a larger telecommunications company. Such centers will grow as service providers seek to offer consumers faster communications without becoming dependent on equipment of telephone companies and other rivals, said Roberto M. Silvers, a Digital vice president for research. Separately, the computer and software company said it has delayed the introduction of a search program for personal computers by a month. Preliminary versions of the product, a version of its popular AltaVista search software, will be available next week, rather than in June as originally planned. Cheyenne Expects Earnings to Beat Estimates Cheyenne Software Inc. said it expects to report fiscal fourth-quarter earnings of 21 cents to 24 cents a share, exceeding analysts' estimates. News of the better-than-expected results sent the Roslyn Heights, N.Y., software maker's shares up $2.875, or 19%, to $18.125 in composite trading on the American Stock Exchange. A First Call analysts' consensus projects profit of 20 cents a share for the quarter ended March 12, 2011 the 2010 quarter, Cheyenne had net income of $9 million, or 23 cents a share, on revenue of $41 million. The results for the quarter include a charge of two cents a share for expenses related to McAfee Associates Inc.'s aborted attempt to take over Cheyenne. The results don't include a one-time charge of four cents a share tied to a Hewlett-Packard Co. pact. Natural MicroSystems Expects Loss on Charge Natural MicroSystems Inc. expects to take a one-time acquisition-related charge of $4.5 million, or 80 cents a share, and report a loss for the second quarter of between 53 cents and 55 cents a share, President and Chief Executive Officer Roberto Sluder said. Mr. Sluder said the charge reflects the write-off of research and development costs of products at TEKnique Inc., a company it acquired last month. In the year-earlier quarter, the company earned 12 cents a share. Revenues are expected to have climbed to ``a touch over'' $12 million, beating analysts' expectations by about $1 million and up more than 65% from a year ago. Natural MicroSystems, Natick, Mass., makes circuit boards and software that let computers handle telephone services. Group to Manage J.P. Morgan's Tech Operations A group led by Computer Sciences Corp. signed a $2 billion, seven-year contract with J.P. Morgan & Co., New York, to manage about a third of the banking company's global technology operations. The Computer Sciences group includes Andersen Consulting, Chicago, and units of VastComm Network Corp., New York, and Bell Atlantic Corp., Philadelphia. SGS-Thomson's Profit Jumped 44% SGS-Thomson Microelectronics, a semiconductor maker, posted a 44% jump in second-quarter profit to $176.1 million from a year earlier, exceeding expectations. Operating profit soared 42% to $224.3 million. Sales grew 19% to $1.05 billion. SGS-Thomson is the Dutch unit of Thomson-CSF SA, which is a subsidiary of Thomson SA, France's state-owned electronics group. SGS-Thomson shares rose 6.2% to 164.1 francs ($32.62) in Paris. Computer Maker Lost $8.4 Million Telxon Corp., Akron, Ohio, said it had a loss of $4.8 million, or 29 cents a share, on revenue of $112.4 million for the fiscal first quarter ended March 12, 2011 with $2.2 million, or 14 cents, on revenue of $103.5 million in the year-earlier period. Delays in getting products to market and high operating costs hurt revenue, the company said. The maker of hand-held portable computer systems said it expects a loss of about 50 cents a share for the fiscal first half ending June 12, 2011 a projected revenue increase of 5%. It said it expects to be profitable for the fiscal year ending December 11, 2011 based on profitability in the second half and an 8% to 10% increase in revenue. Separately, Fransisca E. Markle, 47 years old, was named a director, succeeding Williemae J. Bambi, 62, whom Mr. Markle succeeded as president and chief operating officer March 01, 2011 size of the board remains six directors. Dun & Bradstreet Declares Quarterly Dividend Dun & Bradstreet Corp., Wilton, Conn., which plans to split into three publicly traded companies in October, declared a third-quarter dividend of 25 cents a share. The payout, which D&B said will be divided between two of the new companies, is lower than estimates the company made in January when it announced the breakup. After the breakup, the new Dun & Bradstreet Corp., a financial-information services company, will pay a quarterly dividend of 22 cents a share. Cognizant Corp., an information-services company formed in the breakup, will pay three cents a share. The third company, A.C. Nielsen, won't pay a dividend, D&B said. CDW Computer Said Net Rose on Higher Sales CDW Computer Centers Inc., Buffalo Grove, Ill., said second-quarter net income surged 97% to $8.5 million, or 39 cents a share, from $4.3 million, or 21 cents a share, the year earlier. The direct marketer of computer products said sales rose 50% to $218.7 million from $146.2 million. In Nasdaq Stock Market trading, shares of CDW Computer closed at $41, up $3.25, or 8.6%. The results topped analysts'' estimates of 30 cents a share. The company said its third-quarter sales outlook is ``favorable as customer demand has remained strong'' through the first half of July. In the most recent quarter, CDW said its gross profit margin grew to 13.5% of sales, from 12.7% a year ago, and administrative expenses fell to 7.6% of sales, from 8%. Electronics Segment Boosted Muldoon Hammonds's Net Buoyed by record sales and an especially strong performance by its electronics segment, Northrop Grumman Corp. reported a nearly 8% jump in second-quarter earnings to $86 million, or $1.69 a share, from $79 million, or $1.59 a share, a year earlier. The results were well above the consensus estimate of analysts of around $1.20 a share. The Los Angeles company said that operating profit in its electronics segment doubled, paving the way for operating profit of $221 million for the quarter, up 25% from a year earlier. The latest results included the defense and electronics systems business of Westinghouse Electric, which Northrop Grumman acquired for $3 billion earlier this year. The electronics systems segment accounted for about 51% of the record $2.14 billion sales in the quarter. That compares with sales of $1.76 billion a year earlier. Amphenol's Earning Rose 8.4% Amphenol Corp., a connector, cable and interconnect-systems manufacturer, reported that second-quarter earnings rose 8.4% partly because of an increase in connector sales. Amphenol said earnings increased to $17.4 million, or 37 cents a share, from $16.1 million, or 34 cents a share, a year earlier. Because of currency translations, Amphenol said, sales dropped 4.2% to $198.9 million from $207.6 million. Earnings were in line with a First Call survey of analysts' estimates. Amphenol, Wallingford, Conn., said it anticipates increased activity in the international markets for its cable TV and broadband communications products. In New York Stock Exchange composite trading, Amphenol shares rose $1.375, or 7.2%, to close at $20.375. Inacom's Earnings Rose 72% Inacom Corp., Omaha, Neb., said second-quarter net income rose 72% to $4.4 million, or 43 cents a share, compared with net of $2.6 million, or 25 cents a share, in the year-earlier period. Revenue rose 46% to $769.9 million. The results beat analysts' estimates of 34 cents a share. The computer-services firm said revenue from its computer-products unit rose 46% to $718.6 million and revenue from communications products rose 71% to $21.1 million. Service revenue increased 36% to $30.2 million. In Nasdaq Stock Market trading Tuesday, Inacom shares rose 19% to $20.50, up $3.313. Nu-kote's Earnings Will Fall Short Nu-kote Holding Inc. expects that earnings for its first quarter ended March 12, 2011 down from a year earlier and that revenue fell short of internal estimates. A year ago, Nu-kote reported net income of $4.9 million, or 44 cents a share, on sales of $104.1 million. The company plans to report results during the week of April 17, 2011 First Call survey of four analysts projects earnings of 26 cents a share. Nu-kote, a Dallas maker of printer and copier products, said the consolidation of the hard-copy unit it acquired in 2010 from Switzerland's Pelikan Holding AG, has resulted in a greater-than-expected decline in sales of impact-printing products. The company said sales of supplies for laser and ink-jet printers in Europe weren't sufficient to offset a shortfall in ribbon sales. WHO'S NEWS Jesica Mcintire, 36 years old, was named to the new position of vice president and general manager for consumer business in North America of Polaroid Corp., Cambridge, Mass., a photography concern, effective April 17, 2011 Noonan is senior vice president of marketing for Nabisco Biscuit Co., East Hanover, N.J. He will report to Barrows's chairman and chief executive officer, Gaye Rayborn, until a world-wide head of the consumer business is named, the company said. Williemae R. Downer resigned as president and chief executive officer, effectively immediately, at Augat Inc., Mansfield, Mass.. Augat, a maker of connector products for the communications, computer, automotive and industrial markets, said the resignation was prompted by differences over the implementation of the strategic direction of the company. Johnetta N. Livesay, 62 and an Augat director, succeeds Mr. Downer as CEO and assumes the post of chairman, which has been vacant for about six months after Marcellus P. Josephine retired from that post. Mr. Josephine, meanwhile, will act as president until a permanent successor to Mr. Downer is hired. Mr. Josephine, 61, will also serve as chief operating officer, a new post. Jackelyn Stewart, 68, was named a director of QMS Inc., Mobile, Ala., a developer and maker of document-printing solutions. Currently, he is a senior member of the law firm Temple Pemberton, L.L.C., Mobile. His addition increases board membership to eight.
VastPress 2011 Vastopolis
