Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.tech From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: tech Thu, May 28 1992 Date: Thu, 28 May 92 05:21:26 EDT Message-ID: 05-28 0000 DECISIONLINE: Technology USA TODAY Update May 28, 1992 Source: USA TODAY:Gannett National Information Network CONTROL DATA TO BE SPLIT: Control Data said Wednesday it would split into two companies and that computer maker Silicon Graphics would take a 10% stake in one of the firms. The companies also announced a joint technology and marketing agreement. Control Data said NEC of Japan is considering a 5% stake in the new company, which will encompass Control Data's computer products business. (For more, see special Split package below.) INSIDER TRADING ALLEGED: Ryal Poppa, chairman of Storage Technology, defended executives against allegations of inside trading Wednesday. The stock hit the high $70s after its storage device Iceberg was unveiled in January. Delays in shipping and weak earnings has pushed the stock down. It closed at $33 Wednesday. Poppa says officers sold less than 2% of their holdings during a narrow window that allowed lucrative sales. GOV'T TO LOOK AT SALES: The USA will closely examine a report due out in mid-June on market share for foreign semiconductor sales, focusing on Japan's record, U.S. Trade Representative Carla Hills says. A 1991 agreement between Japan and the USA called for semiconductor sales by foreign companies to exceed 20% by the end of this year. But Hills says sales were only 14.4% the fourth quarter of last year. OPTI WINS LAWSUIT: OPTi Inc. announced Wednesday that the U.S. District Court for the Northern District of California has awarded OPTi summary judgment of non-infringement in a patent case brought by Chips and Technologies. Also, the decision will be binding on the International Trade Commission as to the patent in question in a similar motion against OPTi filed by Chips with the ITC. ELECTRONICS EMPLOYMENT DECLINES: The U.S. electronics industry lost 40,000 jobs the first quarter, the American Electronics Association said Wednesday. Total employment in the industry fell to 2.35 million March 31, compared with 2.39 million at the end of 1991. Employment in the U.S. electronics industry peaked at 2.6 million in August 1989 and has been declining since, the AEA says. WANG TO CUT 1,000 JOBS: Wang Laboratories said Wednesday it will cut 1,000 jobs from its worldwide workforce of 13,532. The reductions, aimed at cutting costs, will take place in the next several months. Wang says it will take a charge, not yet determined, for the cutbacks the quarter ended June 30. INTELCO SETTLES LAWSUIT: The Software Publishers Association and U.S. Intelco Networks have settled a copyright lawsuit brought on behalf of Aldus Corp., Lotus Development Corp., Microsoft Corp., Software Publishing Corp., and WordPerfect Corp. Intelco has agreed to pay $50,000. Since 1988, the Software Publishers Association has filed over 150 lawsuits on behalf of its members. MICROS TO MAKE WIRELESS SYSTEM: Micros Systems Inc. signed an agreement Wednesday to purchase Videopad personal data communicators from Granite Communications Inc. Micros will use the Videopads to create a wireless system for restaurants. Waitstaff will input orders via a small touchscreen and transmit them to a base station. Servers are notified if an item is unavailable before they leave the table. NCR TO BUILD RESEARCH FACILITY: NCR Corp., owned by AT&T, says it will build a $30 million research facility in San Diego, Calif. A ground-breaking ceremony is scheduled to held Friday. The facility will be used to accommodate research and development for the NCR mainframe and mainframe-class computer systems. The new facility will employ 1,400. SPECIAL PACKAGE ON SPLIT: SILICON TO BUY 10% OF FIRM: A deal between Control Data and Silicon Graphics announced Wednesday involves forming a new company called Control Data Systems which will own Control Data's computer business. Silicon Graphics, a leading maker of fast desktop computers called workstations, has signed a letter of intent to buy 10% of Control Data Systems. PERLMAN TO BE CERIDIAN'S CEO: The remaining part of Control Data will rename itself Ceridian as of Monday, the company said. This company will include Control Data's remaining businesses, which provide computer services such as payroll processing to government and business customers. Lawrence Perlman, president and chief executive of Control Data, will be Ceridian's president and CEO. FIRM WAS A TOP MAINFRAME MAKER: The move would complete the transformation of Minneapolis-based Control Data from a computer maker to a services business. The company once was one of the leading makers of giant mainframe computers. There will be no ownership or management relationship between the two companies after the spinoff is completed, Control Data said. SPLIT MAY HELP FIRM GROW: Perlman said the division of the company "is a major step in the effort to strengthen the businesses and help them grow faster." He also said the separate companies should have an easier time raising money. Lenders and financial analysts have difficulty putting a value on today's Control Data because of its varied businesses. (End of package.) Technology Editor: Ed Kelleher. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. 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