News Roundup 13 January 2005

Stan Beer
Thursday, 13 January 2005 17:00

IT Industry - Development

Speculation that Seek Might Float

There's media speculation that Australia's leading online jobs company, Seek.com.au, may be considering floating, although Seek executive director, Andrew Bassat said that while a float was being considered, there was "nothing more to talk about at this stage".

Mr Bassat declined to comment on suggestions in a report in Melbourne's Age newspaper that a float might involve a share split of the company's 89.2 million shares issued and a $1-a-share float price.

And, The Age also reported that one of the stakeholders in the Packer-backed online job ads operation Seek.com.au - internet company Yahoo - had commented that it would support a float of the company. The paper says Yahoo holds a 5.4 per cent stake in Seek and a regonal director of the company had said it would be "an active supporter" of a float if the Seek board decided to take that option.

Seek is 25 per cent owned by Kerry Packer's Publishing and Broadcasting Ltd.

Intel chips in demand - 10% Rise in Revenue

Intel, the world's largest computer chip maker, has reported strong demand for its products, a day after a main Silicon Valley rival, Advanced Micro Devices (AMD), warned that it expected to report lower profits because of a price war with Intel in the flash memory market.

The New York Times reports (12 Jan) that Intel said that its revenue was up nearly 10 percent in the fourth quarter, to $US9.6 billion, while its profit dipped slightly, to $2.1 billion, or 33 cents a share, compared with $2.2 billion, also 33 cents, in the quarter a year earlier.

At the same time, it gave an upbeat forecast for the coming year, suggesting that the company was making progress in overcoming some of its production problems and excessive inventories arising from troubles matching supply with demand.

The NYT reported Intel's chief financial officer as saying that that "2004 was a year of growth for Intel," attributing the strength of its product line to a successful holiday selling season for computers and digital devices as well as a continued expansion of spending by corporations.

The paper says Intel's earnings report is considered a leading indicator of the health of the technology sector but it also appeared to reflect a comeback of sorts in the company's battle with AMD., which has made substantial inroads into Intel's dominant position as the leading microprocessor maker.

Intel has fought back in part by challenging AMD in its own critical stronghold - producing a variety of chips known as flash memory that are used in cellphones and other portable digital devices.

Intel said the company was particularly benefiting from robust spending on all types of digital products as innovation in the technology business is increasingly being energised as much by consumer demand as by corporate spending.

Analysts had projected that Intel would report $9.4 billion in revenue and earnings of 31 cents a share. In December, Intel raised its revenue forecast to a range of $9.3 billion to $9.5 billion, from the $8.6 billion to $9.2 billion it had predicted at the end of the third quarter.

"The results are likely to be perceived as reassuring coming from an industry leader," said Tim Luke, an analyst at Lehman Brothers.

By contrast, AMD said this week that its operating income for the fourth quarter would be lower than its forecast last month. While the company projected that total sales would be up "slightly," analysts had expected them to rise as much as 9 percent from the third quarter.

Nortel Execs. to Repay Bonuses

Nortel Networks released its much-delayed audited financial statements for 2001 to 2003 on Tuesday and said that an internal inquiry showed that executives had manipulated the initial results to obtain bonuses.

The New York Times reports (12 Jan) that in an unusual development, Nortel, the biggest maker of telecommunications equipment in North America, said that a dozen current executives who played no role in the manipulation would repay $US8.6 million in bonuses voluntarily over three years, and will also give up the last two instalments of a restricted stock payout dating back to 2003.

The Nortel announcement comes at a time when current and former executives at several companies have been under pressure to return bonus pay, comments the NYT.

First Legal Case Against Sexually Explicit Spam Filed in US

A New York Times/AP report (12 Jan) says the Federal Trade Commission in the US has this week said it has won a court order to shut down illegal advertising for six companies accused of profiting from thousands of X-rated e-mail messages directing people to their online pornography sites. The move was the agency's first legal case involving sex-related internet spam.

Earlier this month, a federal judge in Las Vegas granted the commission's request for a restraining order against the companies, their executives and an affiliate after they were accused of violating federal laws governing unsolicited commercial e-mail, commonly known as spam.

The agency said that it would seek a permanent injunction shutting down the network's illegal e-mail ads.

The NYT/AP report says that it is the first time the agency has taken legal action under a rule that requires a label in the subject line of sexually explicit e-mail messages. The law also holds others liable for operating Web sites that benefit from fraudulent pornographic spam.

The Nevada companies named in the complaint were Global Net Solutions, Open Space Enterprises, Southlake Group and W.T.F.R.C., which does business as Reflected Networks. Also named were Global Net Ventures of London and Wedlake, which the F.T.C. said was based in Riga, Latvia.

The complaint said the messages did not include the required "Sexually Explicit" warning in the subject line, falsely promised free membership to the web sites and prevented recipients from stopping the unwanted e-mail messages.

LeapFrog Unveils Talking Computer Pen

A US company, LeapFrog Enterprises (LF.N) has just announced the launch of its FLY ``pentop computer,'' a talking, computerised pen that can translate words into other languages, or help with maths and spelling homework.

According to the New York Times/Reuters (12 Jan.), LeapFrog has said the product will give users audio feedback as they write and draw on special FLY paper. For instance, a user can draw a calculator, touch the handwritten digits and functions to perform an operation, and then hear the answers announced.

LeapFrog said a group of children aged 8 to 13 helped to develop the product, and it will offer a range of applications for learning, communicating and playing.

The paper says that LeapFrog had been a Wall Street star since its 2002 initial public offering, but a string of dismal reports from the company hurt its credibility with investors, and its shares have taken a beating since October.

LeapPad is a junior-sized laptop system that holds interactive workbooks that teach skills like reading and math. The company makes educational toys for children from infants to high school students, but its focus has been on younger children. The company has said it wants to expand its product lines for older children and develop learning aids for adults.

Vietnam Suspends News Web Site

Vietnam has suspended a popular news Web site for failing to obtain a government operating license, according to a rerport in state-controlled media, says the New York Times/AP in a 11 January report.

The paper says the Vietnamese The Ministry of Culture and Information also fined local software company, Vinacomm -- which runs the tintucvietnam.com Web site -- $US1,274, the Thanh Nien.

Access to the popular Web site -- which compiled news stories from local newspapers -- has not been possible since Saturday.

Ministry officials and company executives were not available for comment

The NYT says Vietnam maintains tight control over the media and the internet. There are an estimated 500 media organisations in Vietnam, all of which are state-run.