Week in Review: Top business stories from 3/22-3/26

Electronic News, March 29, 1999

Merix 3Q Sales Off

Merix Corp. reported sales for the third quarter ended Feb. 27 fell to $30.5 million from $46.4 million in the year-ago quarter. Net income was $490,000 excluding a $7.1 million benefit from reversal of part of a restructure charge the quarter before. Including the benefit, net income was $4.9 million. In the year-ago quarter, net was $1.5 million. Merix posted a $1.9 million net loss in the just-prior quarter.

Ault 3Q Sales Vault

Ault Inc. reported net sales rose 36 percent to $14 million for its third quarter of fiscal 1999 ended Feb. 28 from $10.3 million in the year-earlier period. Net income climbed to $606,000 from $283,000 in the third quarter of fiscal 1998. Sales growth was paced by strong demand for switching power supplies from cable modem OEMs.

Microsoft Not Speech-Less

Microsoft exercised warrants to purchase 857,142 more shares of Lernout & Hauspie common stock for $17.50 each. The $15 million buy increases Microsoft;s investment in the marketer of speech and linguistic technologies to about 3.75 million shares, or 7 percent, of L&H outstanding common. The warrants were issued to Microsoft in connection ith a $45 million investment in L&H in 1997. "The market for speech-enabled technologies...has grown steadily...," said Bernard Vergnes, chairman, Microsoft Europe.

On-line Lending

Lending is quickly growing as a premier online service, according to Forrester Research. The Cambridge, Mass.-based research firm predicts that by 2003, consumers will obtain 8.9 million loans and credit cards over the Internet, representing over $167 billion in receivables. Mortgages and credit cards are expected to lead the way. One lender is getting ready. San Francisco-based NextCard, Inc. is readying an IPO and has filed with the SEC. It is an Internet provider of consumer credit.

Unwired Not Unappreciated

Unwired Planet, Inc. has raised $18 million in a new round of financing. Credit Suisse was placement agent and investors included Bell Atlantic, Hikari Tsushin, Itochu and Mustang (part of Siemens). Already on board are AT&T, Citicorp, Gemplus, Kyocera, Mitsubishi, Qualcomm and others. Unwired Planet is a supplier of open standards based servers and microbrowsers to the wireless Internet industry.

MEMC Rights Offer

MEMC Electronic Materials, Inc. began a $94 million rights offering for stockholders. The company will issue rights to subscribe for about 13.6 million common shares. Each shareholder will get 0.715 rights for a share of common held at the close of business on March 22, 1999. A whole right may be exercised for one share at a price of $6.89 per share. Separately, MEMC said it completed a $106 million private placement with VEBA Zweite, a majority stockholder group.

Taitron Sales, Net Off

Los Angeles-based Taitron Components reported net sales for the fourth quarter ended Dec. 31, 1998 were $6.8 million compared with $8.8 million a year ago. Net income was $221,000, or 3 cents per share diluted, compared with $384,000, or 6 cents per diluted share. Net sales for the year were $30.8 million versus $33.9 million a year earlier. Net income for 1998 was $1.5 million, or 24 cents per diluted share, compared with $1.9 million, or 27 cents, in 1997.