San Antonio — The Progressive Retailers Organization was at the Westin La Cantera Hill Coun
New York — Satellite radio broadcaster Sirius has announced a successful exchange offer, with about 91 percent of debt holders agreeing to convert about $636 million in debt and $519 million in preferred stock to common stock. Over 90 percent of Sirius stockholders have approved the transactions. The approvals open the way for Sirius to close $1.2 billion in recapitalization, allowing the company to "move forward with a strong balance sheet," according to Sirius. Also, about 68 percent of Sirius stockholders voted to approve an amendment and restatement of the company's certificate of incorporation to increase the authorized shares of common stock from 500 million to 2.5 billion.
Poway, Calif.— Gateway, in an ongoing cost savings effort, and to achieve its previously announced goal of returning to profitability by the fourth quarter of this year, will take a restructuring charge in the current quarter that is "conservatively north of $80 million," according to Rod Sherwood, CFO/exec VP. He said the computer maker plans to reduce its quarterly selling, general and administrative (SG&A) spending to below $200 million by the fourth quarter, down from $250 million a year earlier. In addition, Gateway will reduce its cost of goods sold by about $200 million annually. The company will detail cost-reduction plans by the end of the month.
Osaka, Japan— Audio components maker Onkyo has initiated a initial public stock (IPO) offering, with shares traded on Japan's over-the-counter securities exchange. Issues were listed on the Japan Securities Dealers Association (JASDAQ) market at the end of February. At the same time, Onkyo unveiled a new company logo, "Imaginative Sight & Sound," a concept concerning superior visual management and sound reproduction technology, which emphasizes the company's entry into video products. Onkyo didn't offer further IPO details, including company sales volume and net profit.
El Segundo, Calif.— Satellite service provider Hughes Electronics, which owns DirecTV, plans to take a $23 million pre-tax charge for terminating its strategic alliance with America Online, said Hughes, in a late February filing with the Securities and Exchange Commission. The ending of Hughes' marketing alliance with AOL comes after the Internet provider's parent, AOL Time Warner, sold its share of Hughes in January. In the same SEC filing, Hughes said its previously announced fourth quarter 2002 pre-tax charge of $111.4 million — relating to the expected costs associated with the planned shutdown of DirecTV Broadband operations — would be reduced to $92.8 million.
Tokyo — With core audio and video equipment, especially home theater products, performing above expectations, D&M Holdings, parent company of Denon and Marantz, has filed a revised financial forecast for the fiscal year, ending March 31. Consolidated revenue now is expected to total $699.2 million, up from $695.8 million. Net profit for the fiscal year is anticipated at $145 million, compared with the previous $119.4 million.