Business Notes
Staff -- TWICE, 10/8/2001
EchoStar Completes New StarBand Investment
LITTLETON, COLO. — EchoStar completed its additional $50 million investment in StarBand, first announced in July. As a result, EchoStar garners a 32 percent equity stake in the two-way satellite Internet service provider. That position is slated to increase to about 60 percent once construction begins on a next-generation satellite earmarked for StarBand use. EchoStar initially invested $50 million in StarBand in April 2000. By incorporating StarBand service into its offerings, EchoStar can bundle TV, broadband Internet and interactive TV services into a package for DISH subscribers.
Dell Reaffirms Fiscal Q3 Revenue Guidance
AUSTIN, TEXAS — Dell, late last week, reaffirmed its financial guidance for its fiscal third quarter. The company had said in mid-August that it expected revenue of $7.2 billion to $7.6 billion for the third quarter ending Nov. 2. While acknowledging that conditions in the computer-systems industry remain difficult, Dell claims its strategic, operating and financial position is better than it has ever been. Dell expects to make share gains in all product categories, consumer segments and regional markets during the current quarter. It also cautioned that one-third of its third quarter remained. Full financial results for the three months, as well as guidance for the fourth quarter, will be announced on Nov. 15.
IRMA, PBI Media Form Conferences, Trade Shows Alliance
PRINCETON, N.J. — The International Recording Media Association (IRMA) has formed a strategic alliance with White Plains, N.Y.-based PBI Media LLC, which operates the REPLItech trade show, to provide more effective information exchange among the media manufacturing, delivery and storage industries. The immediate focus of the new alliance is restructuring of conferences and trade shows currently operated by IRMA and PBI into a series of coordinated global events, with IRMA assuming responsibility for all conference programs and PBI handling all trade show logistics. The next event the partnership will produce will be M3 REPLItech in Los Angeles, Feb. 12-14.
Cirrus Logic Completes Acquisition of ShareWave
AUSTIN, TEXAS — Cirrus Logic, a supplier of high-performance analog and DSP chip solutions for digital entertainment, has completed its acquisition of ShareWave, a provider of wireless home networking solutions. Revenue from ShareWave products is expected to grow from less than $2 million in the December 2001 quarter to $20 million to $30 million in fiscal 2003, depending, for one, on the rate at which consumers adopt wireless network solutions for in-home entertainment. Cirrus Logic, which issued about 3.4 million shares of common stock for privately held ShareWave, said it will take a one-time non-cash charge in the December quarter in the range of $13 million to $18 million related to the acquisition.
Sony Ericsson Mobile Communications Starts Up Operations
STOCKHOLM, SWEDEN — Sony Ericsson Mobile Communications, equally owned by Sony and Ericsson, started operations October 1, following final approval from regulatory authorities. The joint venture to create a range of future mobile multimedia consumer products, is using the new brand name Sony Ericsson. Initial joint products will be announced in the third quarter of 2002. Meanwhile, current product lines at both companies remain through 2001, and will continue to be sold in 2002. Combined Sony and Ericsson mobile phone businesses on a pro forma basis achieved annual unit sales of about 50 million and dollar sales of $7.2 billion in 2000, the companies said.
Emerson Radio Authorizes Stock Repurchase Program
PARSIPPANY, N.J. — Emerson Radio said its board of directors has authorized the repurchase of up to 1 million shares of the company's outstanding stock. This amounts to about 3 percent of all outstanding common stock. The repurchases will be made from time to time in open-market transactions, and will be funded out of the company's working capital. "The recent trading price of our common stock does not adequately reflect the company's intrinsic value," said Geoffrey P. Jurick, chairman/CEO. "Accordingly, this offers an excellent opportunity to increase stockholder value through reduced share dilution stemming from this buyback," he said. In the past fiscal year, Emerson Radio repurchased about 15.3 million shares, representing 33 percent of its then outstanding common stock.
No related content found.
VIEW ALL GALLERIES