Business Notes
By Staff -- TWICE, 10/28/2002
Brother Recalling 100,000 Laser Printers Over Fire Hazard
Washington — Brother International will recall about 100,000 laser printers due to a technical glitch that poses a possible fire hazard. The company said laser printer models HL-1040, HL-1050, HL-1060 and multifunction printer MFC-P2000 sold between June 1997 and December 2000 are affected by the recall. These devices tend to overheat. Two incidents have occurred because of this problem, resulting in minor property damage.
Dell Increases Fis. Q3 Revenue Forecast by $200 million
Austin, Texas — Citing customer momentum as part of the reason for growing health in its fiscal third quarter, Dell Computer boosted its revenue expectations to $9.1 billion for the three months ending Nov. 1. In August, Dell had forecast $8.9 billion in revenue for its third quarter. Dell also said it was enjoying growth in shipments of computer servers and data storage systems. The personal computer maker said it expects earnings for the three months would be 21 cents per share, compared with 16 cents per share year over year. Last summer, Dell said earnings were anticipated at 20 cents to 21 cents per share for the third quarter.
Tweeter To Open Six New Stores Prior To The Holidays
Canton, Mass.— Specialty CE retailer Tweeter will open six stores by year-end — four in new markets, including Nashville, Tenn. and Charleston and Spartanburg, S.C. Two others will be in the Philadelphia and Washington areas. The units are the first of 16 new locations set for fiscal 2003.
TiVo Raises $25 Million In Common Stock Offering
San Jose, Calif. — TiVo, creator of TV services for digital video recorders, has signed a definitive agreement for the sale of $25 million of common stock to institutional investors. TiVo will sell 6.96 million shares at $3.59 per share. The price is based on a 3 percent premium to the trailing 10-day average closing price. In addition, TiVo will issue warrants to purchase 2.6 million shares of common stock at an exercise price of $5 per share. The deal is designed to bolster TiVo's capital resources and provide an additional cushion as the company continues to grow. Net proceeds of the offering will be used for general corporate purposes and to supplement working capital. TiVo's television set-top devices record TV shows onto hard drives, rather than videocassettes.
Rayovac Restructures, Workforce Cut By 14%
Madison, Wis. — Launching a series of initiatives to position itself for the future and to optimize global resources, battery maker Rayovac is scaling back, then closing operations at its Middleton, Wis. distribution center and its packaging center here. The two operations will be combined by June 2003 in a new $20 million facility in Dixon, Ill., which will service the majority of Rayovac's U.S. customer base. In addition, company restructuring is expected to result in a 14 percent reduction (630 people) in overall workforce, a result of work duplications created when Rayovac purchased German consumer battery maker Varta. Rayovac will take a restructuring charge of about $20 million in the first quarter of fiscal 2003, and between $10 million to $15 million to be recorded as incurred. Cost savings are expected to be in the range of $35 million to $40 million when fully realized in fiscal 2005.
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