Month: October 2000

Xerox Corp. today said it plans to cut jobs, sell assets and reduce costs as part of a companywide restructuring.
The restructuring was announced at 6 a.m. today along with the document company’s (NYSE: XRX) third-quarter earnings report. Xerox lost 20 cents a share and third-quarter revenue was $4.5 billion, 4 percent lower than the 1999.
The announcement had little impact on Xerox stock which was up 13 cents this morning to $9.25. The stock rose as high as $10 in pre-opening trading.
The company outlined a turnaround program that includes cutting $1 billion in costs, and selling assets expected to raise $2 billion to $4 billion.
Xerox revealed it is in discussions to sell a range of assets that includes: the company’s China operations, a portion of its ownership in Fuji Xerox, Xerox Engineering Systems and its interest in spin-off companies such as ContentGuard and Inxight.
Some of those areas had been the subject of rumors the past couple weeks.
Xerox also is talking with a number of firms about making a significant equity investment in its inkjet business and is exploring a joint venture with non-competitive partners for its Palo Alto Research Center. The company also plans to outsource or sell certain manufacturing operations. Over time, the company plans to exit the equipment financing business.
“It is clear that just fixing our operational issues, although critical, is not sufficient. We must fundamentally resize our cost base, cut our investment levels and significantly improve our balance sheet with asset sales and alternative means of providing customer financing,” said Paul Allaire, Xerox chairman and CEO.
Xerox officials did not indicate how many jobs will be cut or where the cuts will occur. The company aims to reduce more than $200 million in manufacturing and supply chain costs, “substantially increasing the number of positions removed from the company.”
“The combination of all of these actions—the previously announced dividend reduction, the focus on operational cash, the asset dispositions and financing options will significantly strengthen the balance sheet, and reduce our debt level,” said Allaire. “This will sharpen our competitive edge, deliver the superior products and services that our customers require, and generate the value that our credit providers and shareholders require.”
This story will be updated later today.

Telecommunications equipment maker Lucent Technologies Inc. today ousted Chairman and CEO Rich McGinn, replacing him with former chairman Henry Schacht. The company also slashed its sales and profit estimates for the first quarter of 2001. Lucent has cut its growth forecasts four times this year.

Investors today signaled support for General Electric Co.’s plan to acquire Honeywell International Inc. for some $43 billion in stock. GE’s shares were trading only marginally lower. Shares of corporate acquirers almost slip when a deal is announced, reflecting concern about the possible impact on earnings and other merger risks.

Secretary of State Madeleine Albright today held historic talks with North Korean leader Kim Jong-il. U.S. officials described the discussions in Pyongyang as “substantial.” The U.S. delegation previously had expected only a brief meeting between Albright and Kim.

Israeli Prime Minister Ehud Barak and Ariel Sharon today failed to agree terms for an emergency unity government. However, additional talks are expected to take place tomorrow.

Online shopping cooled off last month September. A study conducted by Harris Interactive Inc. and U.S. Bancorp Piper Jaffray shows online shoppers spent 12.8 percent less in September than in August.
The poll of 36,768 adult online shoppers indicates consumers spent an estimated $3.09 billion on purchases via the Internet, down from $3.54 billion in August. The median transaction value fell from $120 a customer to around $100 a customer.
Among the business segments most affected were travel services, down 15.7 percent to $795 million; computer hardware and peripherals, down 39.1 percent to $226 million; books, down 27.7 percent to $121 million; and auctions, off 27.3 percent to $173 million.
“In our view, the decline in September e-commerce spending is primarily due to a 16.7 percent decline in the median transaction dollar spend,” said Tony Gikas, senior e-consumer analyst for U.S. Bancorp Piper Jaffray.
The study also showed that consumers are roughly as satisfied with e-commerce sites as they were a month ago. The sites averaged a 7.95 rating out of 10, down 0.03 points since August.
“We believe Internet consumers are becoming more and more demanding with regard to consumer value add-on and after-sale customer service support,” said Lori Iventosch-James, Harris’ director of e-commerce research. “To achieve high consumer-satisfaction scores, an Internet retailer must provide the customer with an overall positive online experience.”
That experiences ranges from easy navigation of the site to prompt and correct product delivery, she added.

Bausch & Lomb Inc. is partnering with the inventor and key patent holder of the LASIK method of eye surgery to develop new technology. The partnership was one of two moves made announced over the weekend by the eye-care company. On Friday, Bausch & Lomb filed a complaint against competitor Alcon Pharmaceuticals Inc. for false and misleading advertising and promotional claims.
The new surgical procedure, PAI-LASIK, has the potential to extend the range of nearsightedness correctable by Laser in Situ Keratomileusis, and also make the procedure reversible, if necessary.
Bausch & Lomb has obtained exclusive development and marketing rights to this technology-photoablative inlay-from its inventor, Gholam Peyman M.D. of Tulane University of Louisiana’s Medical School in New Orleans, and patent holder North Carolina-based Stromax Technologies LLC.
The technology consists of a corneal inlay is designed to shape the human cornea during laser vision correction surgery.
“First, such a new procedure would preserve the patient’s corneal tissue, thereby reducing the risk of creating a cornea that’s too thin and, therefore prone to weakening, leading to unstable refractive results,” Peyman said.
Bausch & Lomb will work with Peyman and Stromax throughout the product development. The team’s first assignment is to identify corneal inlay material that will produce optimal results, after which clinical studies will begin.
Bausch & Lomb’s Technolas 217 excimer laser will help create the correction.
On the lens care solution front, the company’s complaint against Alcon seeks immediate withdrawal of promotional materials for Alcon’s Opti-Free Express Multi-Purpose disinfecting solution.
Bausch & Lomb claims that Alcon’s marketing efforts contain false comparisons to competitive products, including its own offering, ReNu MultiPlus solution.
“While hyping the fact that their new product claim allows some patients to clean and disinfect contact lenses without rubbing them, Alcon underplays or fails to mention additional cleaning requirements,” said James Milton, president of North American Vision Care at Bausch & Lomb.
The Rochester-based eye-care company further suggests that there is no scientific data to support Alcon’s claim.
Alcon’s Opti-Free received FDA clearance to add a “no-rub” claim to product packaging this September.
Bausch & Lomb (NYSE:BOL) launched ReNu Multi-Plus in 1997 as the first all-in-one solution to eliminate the need for a separate enzymatic or daily cleaner for many contact lens wearers.

Corning Inc.’s third-quarter profits more than doubled amid surging demand for optical fiber and components used in communications networks.
The fiber-optic maker, which is establishing a facility here in Henrietta, expects earnings to grow some 25 percent next year.
Corning’s third-quarter pro forma earnings rose to $317 million from $148 million a year ago. Per share earnings rose 84 percent to 35 cents a share from 19 cents a share. Revenues rose 54 percent to $1.9 billion.
“As the quarter’s performance clearly shows, we continue to benefit from delivering powerful optical technologies that provide the capacity to double the Internet traffic every six months,” said Roger Ackerman, Corning’s chairman and CEO.
The firm based in Corning, Steuben County, said its solid, third-quarter performance was driven by strong demand for high data-rate optical fiber and cable, optical amplifiers, and flat-panel display glass.
Sales of photonic technologies grew 113 percent, led by optical amplifier demand. The new facility here will focus on those technologies.
Due to this booming demand, Corning (NYSE: GLW) recently raised its growth outlook for 2000. It expects full-year pro forma earnings per share of $1.15 to $1.17, an increase of some 70 percent over the last year’s mark of 68 cents a share.

Profits dipped some 17 percent during the third quarter at RGS Energy Group Inc. The energy company today reported third-quarter earnings of $14 million, or 38 cents a share, versus earnings of $16.9 million, or 44 cents a share, a year ago.
The company had anticipated the earnings dip, officials said. It attributed the decrease to a combination of cooler weather, higher expenses and scheduled rate reductions as part of a settlement with the state Public Service Commission.
Operating revenues for the quarter increased to $314.3 million from $279.9 million a year ago.
For the first nine months of 2000, RGS reported earnings of $1 billion or $1.95 a share compared with $881.8 million or $1.79 a share last year.
RGS chairman, president and CEO Thomas Richards described the 2000 results as solid, “in a time of transition in our industry and turbulent wholesale electric markets.”

Profits dipped some 17 percent during the third quarter at RGS Energy Group Inc. The energy company today reported third-quarter earnings of $14 million, or 38 cents a share, versus earnings of $16.9 million, or 44 cents a share, a year ago. The company had anticipated the earnings dip, officials said.

Corning Inc.’s third-quarter profits more than doubled amid surging demand for optical fiber and components used in communications networks. The fiber-optic maker, which is establishing a facility here in Henrietta, expects earnings to grow some 25 percent next year.

Bausch & Lomb Inc. is partnering with the inventor and key patent holder of the LASIK method of eye surgery to develop new technology. The partnership was one of two moves made announced over the weekend by the eye-care company. On Friday, Bausch & Lomb filed a complaint against competitor Alcon Pharmaceuticals Inc. for false and misleading advertising and promotional claims.

Online shopping cooled off last month September. A study conducted by Harris Interactive Inc. and U.S. Bancorp Piper Jaffray shows online shoppers spent 12.8 percent less in September than in August.

Xerox Corp. today said it plans to cut jobs, sell assets and reduce costs as part of a companywide restructuring. Xerox outlined a turnaround program that includes cutting $1 billion in costs, and selling assets expected to raise $2 billion to $4 billion. The announcement had little impact on Xerox stock which was up 13 cents this morning to $9.25. Xerox revealed it is in discussions to sell a range of assets that includes: the company’s China operations, a portion of its ownership in Fuji Xerox, Xerox Engineering Systems and its interest in spin-off companies such as ContentGuard and Inxight.