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Show DheSalt LakeTribune BUSINESS WEUTAH BRIEFS, E-3 M CONSUMER CORNER, E-3 Indicators Dow _Industrials_ NYSE fETlOy Mi DILBERT, E-5 JANUARY29, 1999 Fonix Corp. CEO Resigns as Company Looks to Cut Costs |’ Studdert remains chairman asfirm seeks 30% spending cut Bidding Sought For Lake Powell Marina Project BY CHRISTOPHER SMITH THE SALTLAKE TRIBUNE Stephen Studdert After decades of false starts, a new i Utah's Top Performers in|) The Bloomberg | Utah Index measures the stock performance | of the state's major publicly~ held companies. The Nasdaq composite set a new high, as strong earnings, stock splits and high-profile Internet merger boosted technologyshares. Ogden City Mall May Add BY STEVEN OBERBECK THE SALT LAKE TRIBUNE pacity. Fonix Corp., which has lost more than Fonix Corp. Chief Executive Officer Stephen Studdert could have made as much as $425,000 this year at the helm years ago, in November announced WordPerfect Corp. co-founder Alan Ashton — a major Fonix financial back- of the Draper-based, voice-recognition $93.5 million since its founding five er — hadleftits board of directors. Thomas Murdock and Roger Dudley — to pay them $425,000 each. Fonix said Murdock has been named CEO to replace Studdert. for qualified bidders on a 20-year contract to develop andoperate a resort and merged Phonic Technologies Inc., a pri- marina complex at Antelope Point, 7 miles northeast of Page, Ariz.. on the 1994 when the three Utah businessmen Instead, Studdert on Thursday re- to cut the salaries of all officers and vate company they founded in October signed as CEO amid growingsigns of a severe cash shortage at the company, shell company. They changed the name to Fonix in May 1994 Studdert, Murdock and Dudley charged the companya total of $1.8 million in management fees in cash and stock during its first 2% years. They then ended the managementfeesand re- He announced his resignation just as some employees as part of its plan to stem its losses. Exactly how much Studdert and other top officers of Fonix could collect this year in compensation amid the new cost-cutting effort remains Fonix said it would try to trim its expensesby atleast 30 percent. Studdert said in a statement he long has believed founders of companies unclear. “We are all trying to get behind this effort,” said Fonix spokesman Steve Hanson, who declinedto discuss any spe- agement at appropriate times. He will continue as chairman of the company’s Fonixin the past has paid its managers generously. Last year, it had contracts with its three top executives — Studdert, which recently missed a $4 million debt payment to rival Dragon Systems. should “transition out” of active manboardofdirectors in a non-executive ca- cifics. Thursday, the National Park Service and Navajo Nation released a request Fonix became a public company in The companysaid Thursdayit planned software company. $52 million marina at Lake Powell is expected to be operating by 2001 1993, with Taris Inc., a publicly traded ceived contracts that called for them to be paid escalating annualsalaries. Despiteits cash flow problems, Fonix contendsit now has all its voice-recogni- See FONIX, Page E-5 south shoreof the lake Asoutlined in a forthcoming newbid prospectus, the marina project will include a 200-room motel. restaurant, cultural center, campground, tour boat operation and boat-related services. Currently, Lake Powell's marinas at Wahweap, Bullfrog, Hite, Halls Crossing and Dangling Rope are operated by ARAMARK Corp. under contract with Glen Canyon National Recreation Area The new facilities at Antelope Point would be on Navajo Nation lands and See MARINA, Page E-5 Theaters to Lure a Buyer Ogden City may addoffices and movie theaters to Ogden City Mall to makeit more attractive to a potential buyer, according to plans unveiled this week. Larry Catten, Ogden’s director of business development, broached several ideas at a meeting of the Cham- ber Ogden/Weber. “The north endis virtually dead, but it has real opportunities” for re- creation and entertainment, hesaid, adding that movie theaters are among the possible uses. The mall’s southern end would be turned into either offices or a mix of office and retail facilities. If implemented, the concept would be part of a larger effort to revitalize downtown Ogden. Funding could come from the city and theprivate sector, although he quoted nodollar estimate. The mall recently hired a new manager — Madison Marquette Realty Services of Minneapolis. CBL & Asso- ciates had been managing the mall. While Ogden City Mall suffers, Ogden's other mall reported record increases in sales, traffic and occupancy for 1998. Newgate Mallretailers averaged a 12 percent increase in sales. Mall traffic increased 11 percentto 7.6 million visitors, and occupancy rose 31.4 percent. Utah Bulls Will Be Tested The Utah Departmentof Agriculture has approved a regulation requiring that Utah bulls be tested for a disease that causes infertility in cows. Bulls older than 9 months entering the state, or bulls already in Utah that use commongrazing areas, must be tested for trichomoniasis. An accredited veterinarian must test the bulls, said Clell Bagley, Utah State University Extension. Tested bulls will be tagged for per- manentidentification. Bulls that test Retailers Come to Utah Show for Latest in Winter Gear Buyers spend 2 daystesting products at The Canyons BY TOM WHARTON THE SALT LAKE TRIBUNE PARK CITY — Tanya Henshawrepresents a Salt Lake City companythat manufacturers the SnowMole, a relatively new backcountry snowshovel withlittle namerecognition amongretailers Thatis why she joined 67 other companies whoset up shop Thursdayin a parkinglot at The Canyons resortfor the Out- door Winter Market On-Snow Demo. The two-day outdoor event precedes a larger four-day show that opens Satur- day at the Salt Palace Convention Center. “This is our first year at the show,” Henshawsaid. “The goalfor usis to get our name and product out and for users to see howeffective the productis.” In this case, those users are the thou- sands of retail-shop owners who come from all over the world to see the latest in outdoor gear. Retailers such as New Hampshire's Cort Hansen use the On-Snow Demo to try equipment such as snowshoes, crosscountry skis, snowboards, boots, waxes and accessories. Such decisions are important because retailers must guess what their custom- ers’ interests will be later this fall when many ofthe products ordered from this closed-to-the-public event begin showing up on storeshelves. “This is a national show. If you want to see the best in the industry, you attend this show,” Hansen said. “We're looking (ea Ryan Galbraith’The Salt Lake Tribune Dozens of equipment manufacturers show their warestoretailers at The Canyonsresort on Thursdayfor the Outdoor Winter Market On-Snow Demo.Theevent precedesthe biggerfour-day showthatstarts Saturday at the Salt Palace. for new andinnovative stuff.” So are many others. Show spokesman An estimated 13,000 people will at- Drew Simmonssaid a record numberof tend the Salt Palace show, which comes companies participated in the On-Snow to Salt Lake twice a year. That isa record for the Winter Market, traditionally the smaller of the two events staged by California company Miller-Freeman. Demo.There wasinterest fromretailers, too, with 1,000 ski passes handed out before noon. The 876 exhibitors will use 2,400 do that here.” booths, filling almost every inch of Salt Palace exhibit space and spilling over into two large exhibition tents. The event is also big for The Canyons, which luredit away from Solitude Moun- Simmonssaid. “People get the goods to See RETAILERS,Page E-2 “Adventuretravelis the latest boom,” tain Resort this year. Despite a big crowd positive cannot be sold as breeding stock and must be Zions and Barlow Merge Zions Bancorporation has complet- ed its merger with Barlow Insurance Ine. The Layton agency, one ofthe oldest in northern Utah, has premium revenues of about $12 million a year. The company, which sells primarily commercial insurance,will continue to operate under its present name. Russell Miller, president of Zions Insurance Agency, said Barlow Insurance will provide Zions with expertise in commercial markets, particularly in Weber and Davis counties. Zions Insurance Agency, a wholly owned subsidiary of Zions First National Bank, has about 45 employees and four offices in Utah. 1-800 Contacts Prospers 1-800 Contacts Inc,, a direct marketer of contact lenses, said Internet 2 Manufacturing Firms Will Get Tax-Free Financing for Factories BY PHIL SAHM THE SALTLAKE TRIBUNE Two manufacturing companies on Thursday received approval for tax-exemptfinancing of projects in Hurricane and West Jordanthat will create 325 new Utahjobs. Mikohn Gaming, a Las Vegas company that makessigns for casino interiors, will build a $4.3 million plant in Hurricane. The projected 175 jobs at the plant will pay an average of $10.70 an hour — an annual full-time payroll of $3.8 million. Winding River Realty of St. Georgeis Mikohn’s partner in the deal. Financing for the entire project will come from tax-exempt industrial devel- sales were up 65 percentin the first opment bonds. The financing exempts private lenders from paying taxes on track to top $2 million in thefirst quarter of 1999. The Draper-based company began. actively promoting its Internet site in the second quarter of last year. 1-800 Contacts subsequently grew from $1 the interest they earn on loans. Because lenders do not pay taxes, they can lower their interest rate by approximately 2 percent. The state Private Activity Bond Review Board unanimously approved the bonds for Mikohn’s projectat its monthly meeting in Salt Lake City. three weeks of the year and were on million in the third quarter and $1.2 million in the fourth quarter. “Wereally saw the impact when we took more than 500 Internet orders in one day last week,” Jonathan Coon, president and chief executive officer, said in a news release Coon said the company's Internet sales could exceed $10 million this year, ‘ 4 Board member William Erickson, ex- ecutive director of the Utah Housing Fi- nance Agency, voted to approve the bond, but expressed one reservation. “I don't feel comfortable voting on any project that needs 100 percent taxexempt financing,” Erickson said. Other board members agreed, but said the project's economic benefits to ’ the area merit approval, particularly since Moore Business Forms will close its Washington County plant in July, eliminating 100 jobs. Mikohn Vice President Louie Peyton said the company expects to increase employment at the plant in the next sev- eral years. Theboard also approved $4 million in tax-exempt financing to expand a Penco Products Inc. manufacturing plant in West Jordan. Penco, headquartered near Philadelphia, makessteel lockers and other storage products, The $7.6 million expan- sion will add 149 jobs that pay an average of $14.22 an hour —a $4.3 million annual payroll. “West Jordan wasour first choice for expansion,” Penco's Kevin Boothtold the board. Penco’s West Jordan manufacturing plant already employs more than 200 people. ‘The company also operates in Penn- sylvania and Mississippi Besides the manufacturing plants, the board approved $10 million in tax-exempt financing for a 180-unit housing project in Wasatch County near the Jor- danelle Dam. The project must include at least 72 units (40 percent) classified as “afford. able” housing, meaning tenants in those units earn 60 percent or less than the county's median income. Wasatch County's median incomeis $37,000; 60 percent of that is mt 200. Local TV bySatellite Endorsed Hatch, Utahns support measure to change 1988 federal law BY JOHN HEILPRIN ing technology now makes this possible, THE SALT LAKE TRIBUNE WASHINGTON — Seventy years after Utah native Philo Farnsworth inventedtelevision in his home workshop, Home Viewer Improvements Actis expected to be debatedandpassed out of Utah Republican Sen. Orrin Hatch selfconsciously picked up the new-technology baton to help bring satellite broad- and our bill will make it legal. With bipartisan support, the Satellite the full committee within a month and then head to thefull Senate for consid eration. across the nation. At a hearing Thursday in the Senate According Hatch’s committee, it would change a 1988 act in the following ways: @ Letting satellite subscribers get lo- three Utah businessmen were called by right fees. casts to rural dwellers in Utah and Judiciary Committee chaired by Hatch, Hatchto testify in support of his bill that hesaid was “designed to allow satellite broadcasters to compete fully in the market" dominated by cable televi- sion Under the bill jointly sponsored with Vermont Democratic Sen. Patrick Lea- hy, the federal law preventingsatellite broadcasters from receiving broadcast TVsignals through subscription satellite services would be changed to allow subscribers to get local television sig nals. Many Utah residents live in rural areas where cable TV is not readily available. “The programming has greatly improved since Farnsworth’s [first TV transmission of a] rotating black line. ‘This [bill] means every television viewer in Utah can have access to Utah news, weather, sports, and other locally rele vant programming, as well as national network programming,” Hatch said during the 45-minute hearing. ) “Emerg- cal TVvia satellite without any copy- @ Cutting satellite subscription fees @ Endingthecable subscriber waiting id. xtending distant network service another five years. Creating a national PBS satellite service. Bruce Reese, president and CEO of Bonneville International Corp,, opera tor of Salt Lake City’s Channel 5 KSL. TV, said the proposal would greatly improve “Ronneville's abilityto serve its audience.” Bonneville is owned by The Church of Jesus Christ of Latter-day Saints. ‘Thebill, Reese said, would set up “the necessary copyright authority for local stationsto be delivered viasatellite. the satellite industry's practice of deliv. ering distant network stations into local markets has been a sourceof great frustration to both local television stations See LEGISLATION, Page E-2 ’ ; |
