| OCR Text |
Show The Salt LakeTribune BUSINESS MECONSUMER CORNER, C-2 MBUSINESS GLANCE, C-3 MISTOCKS,C-3. MIDILBERT,C-5 Ml OBITUARIES, C-6 MAY24, 1999 Fonix Reports Utah ConsumerSurvey Steep Loss for The Ist Quarter Indicators The latest quarterly snapshot of Utahnsand their money Dow Industrials_ The Utah Consumer Survey is conducted quarterly by Valley ResearchofS lt Lake City More than 500 adults statewide were polled in April. Here are sometinding How manyhoursdid we worklast weekatall jobs? (average all employed persons) 50.0 48.0 ae 46.0 46.1 — < ee 44.0 Butsale of Articulate Systems brings in cash ie2 Utah Index measures the stock performance T ofthe state's major publiclyheld companies Stocksfellaslingering concernsabouthightech companies sapped the gainsof a market stil struggling to find a direction. Fonix Corp. reported a steep loss for the first quarter of its 1999 fiscal year, but the company apparently has struck a deal that will help solve its cash-flow problems. The Draper-based devel- oper of voice-recognition softwaresaidit lost $9.3 million, or 16 cents per share, for the quarter ended March 31. It had $1.1 million in rey- Pacificorp Buyout Receives Positive Response in Idaho enuesfor the period Scottish Power PLC's plan to buy Pacificorp for $10.8 billion gained struck a deal tosell its Artic- support from Idaho regulatory staff, markingthefirst positive response the companies havereceived in their quest to win approval for the take- over. Idaho Public Utilities Commission staff reviewing the takeover said service improvements Scottish Power plansare in the public interest, and recommendedthat the commission approvethe transaction. Portland, Ore.-based Pacificorp sells electricity to 1.5 million custom- ers in Utah andfive other Western parts. Scottish Power, based in Glasgow, Scotland, needs commission approvals in each state in which it operates beforeit can buy Pacificorp. In Oregon, regulatory staff earlier this month recommendedrejecting the buyout, saying it doesn’t offer savings to con- sumers. ‘The Utah Public Service Commis- sion will consider the matter in August Mity-Lite Shares Up $1.12 Orem furniture manufacturer Mity- Lite Inc. announced net incomeof $3.9 million, or $1.21 a share, for the fiscal year ended March 31. Income was up 23 percent from $3.2 million the year before. For the quarter ending March 31, incomeincreased 33 percent to $1.03 million, compared to $775,000 for the same quarter a year earlier. Mity-Lite also completed the acquisition of Centercore Group Inc., an office furniture manufacturer that specializes in call center, 911 and other group workstations. Centercore generated sales of $23.7 million in 1998. Founded in 1987, Mity-Lite has an- nounced 11 consecutive years of rec- ord sales and earning, chief executive officer Gregory1.. Wilson said Fewer NewHires Expected Salt Lake City-area employers ex pect to hire fewer new workers this summer compared to last But according to a survey by Man- powerInc., 27 percent of area employers questioned still said theywill add workers, ‘The projections are down from three months ago, when 31 percent of employers said they planned to add workers, Almost half the employers sur- veyed, 46 percent, said they will maintain existing levels of employees, while 7 percent foresaw a reduction in their work force. Last summer, 34 percent of Salt Lake City employers said they would hire new workers. Salt Lake City-area employers were less optimistic than employers in Orem and Ogden. ‘The survey showed 33 percentof Ogden employers expected to add workers and 54 percent of Orem employers will hire new workers. Giant in Our City Award ‘The former chief executive officer of Intermountain Health Care will receive a Giant in Our City Award from the Salt Lake Area Chamber of Commerce The companylost $43 mil- ogy, Oberteuffer said. Articulate contributed 95 percent of Fonix’s $1.1 million in revenues during the first quarter. Earlier this pected Articulate, which pri- In September, the company bought Articulate in a ulate Systems unit to Lernout & Hauspie for $24 mil- transaction valued at around $21.5 million, ¢ that included $7.8 millionin Lernout & Hauspie, based in Brussels, Belgium, is Eu- cash, $4.7 million in notes and 5.1 million shares with a marketvalue of $8.3 million at the time. The deal was not nearly as rope’s largest maker of voice-recognition software. lucrative for Articulate’s for- reduce our liabilities,” said John A. Oberteuffer, the worth less than $3.7 millon, “Phis will certainly help us company’s vice president of technology. The sale means Fonix is parting with products it once described as having huge market potential. At the sametime,it will give Fonix mer stockholders. Their shares now are based on Thursday's closing price of 72 cents a share. In addition, Fonix subsequently asked the former owners of Articulate to extend the Apr95 pe Oct-95 Apr95 ight complement” to the fromits other products, in- an 25% 208 Oct-95 actionfor us,” said Gary venson, Icon’s president and chief operatingofficer But the proposed agree. ment — particularly the swapping of common stock for bonds — also suggests the Logan maker of exercise equipment was in danger of buckling underits debt load The announcement prompted Standard & Poor's, the credit-rating agency, to lower its rating on Ieon's bonds. S&P, which put Icononits Creditwatchlist in February, said the debt restructuring would be “tantamount to a Jul-96 0ci-96 Jan-97 Apr-97 Jul-97 Oct-97 Oct-96 Jan-97 Apr-97 bonds’ face value. “It's not a secret that the about its balance sheet,” Ste- venson said. 25% [28% Oct-97 Icon makes fitness equip- company employs 5,000 people, including 3.200 in Utah, and has factories in Logan, Clearfield and Smith field. It expects to post reve nue of more than $750 mil. lionin its fiscal year ended May 31 Jan-99 Apr-99 18% 43% 13% Apr-98 Jul-98 Oct-98 Jan-99 See "43% 1% Jan-96 JuL96 Oct-96 Jan-97 Apr97 Apr-96 ah eo 2% 30% a 2%_ TED pm 17 18% O1% ~—— a — seette Juk97 w ee Oct-97 Jan-9B Apr-98 : 27% Jul-98 Oct-98 x a 29%28% 2% 3% 799, 5% 99 Apr-99 26% gel 9 25% a Apr95 Oct-95 Jan-96 Apr-96 Jul-96 Oct-96 Jan-97 Apr-97 Jul-$7 Oct-97 Jan-98 Apr-98 Jul-98 Oct-98 Jan-89 Apr-99 If we were to make a major purchasein the next 12 months, what wouldit be? 30% 20% 15% a F 0% —- 10% Home Appliance Furniture Electronics 0/ 4% Hone Other Improvements How manyof us would use savings to make a major purchase today? %o I%o one 33% 3% er 34% 29% Oct-95 Jan-96 W% 39% Jul-96 Ney UN 28 at Apr96 i wh 21% Oct-96 Apr97 Juk97 Oct-97 Jan-98 Apr-98 Jul-98 : a < [26% =. 20%: 23% 5 10% . Ss% Apr9S Jan-96 Oct-95 Oct-98 Jan-99 Apr-96 Jui96 Oct-96 Jan-97 Apr97 Jul-97 Oct-97 Jan-98 Apr96 —Apr-99 (eof, 21% ea . 23%5 23% 18%oa ‘ oe — 28. 18% Bn ane alee 15% 20% 20% 20% Jul98 “If we were buying a motor vehicle, what would it mostlikely be? “If you were to purchase a home today, would you build or buy an existing home? 60 60% 40° 40% Oct-96 21% 17% Jan-99 Apr-99 50% W% 20' Scott Watterson. an and chief ex enson and Bain Apr-99. 15% 20% 10% 0 a Cat Capital bought Icon in a Truck, Van Other Dont Know Build a an new home Don't Know existing home transactionfinanced largely with borrowed money, issu ing bonds that pay interest rates of 13 percent and high er. Watterson and Stevenson were co-founders of Icon Bain Capital is an iavestment companybased in Boston. Icon has a positive cash flow and is meeting its inter. est payment, Stevensonsaid. may receive less than the See ICON, Page C-5 $160 000 $150 000 $140 000 Sia. $132,000 $120,000 $110.000 si00a00 $114,950 ApS Oct-95 BY SHEILA R. McCANN THE SALT LAKE TRIBUNE Utahbusinessman Mark E. Zuro con tends one of his competitors and a U.S. postal inspector conspired to have him arrested on fraud charges, hoping to drive him out of the autoglass industry Zuro owns Nationwide Auto Glass, $122,570 $125,000 Jan-96 Ag-96 Juh96 wasableto tapestatementsby both men $137,300 $134,894 $146,300 $118,623 i Oct-96 lan? ApS? JulG7?) ges have beenrounded to thenearest whole * Becauseperc 1Ol always Sumexactly to 100 percent number, they © 1999 Valley Research Auto Glass Supplier Sues, Claims Rival Schemed to Wreck Business Oct-07 Jan-98 AprS8 JulG8 Oct-98 Jan-99 Ape-09 + 4.5% margin of error Steve Baker ‘The Salt Lake Tribune Judge Buoys the News Media Agrees too manypleadingssealed in Caldera-Microsoft case gued it was being forced to file plead- him weredropped, thesuit said BYSHEILA R. McCANN ‘THE SALT LAKE TRIBUNE A Utah federal judge has affirmed the news media has a First Amendment Naccarato declined to comment Thursday. Susha did not return calls. interest in antitrust litigation between Orem software company Caldera Inc Caldera alleges Microsoft used anticompetitive tactics while marketing MS-DOS, an operating system that allows computers to carryout basic commands, and a popular companion pro- confirming theplan, thesuit said Once Zuroplayed the tapes for state prosecutors, the fraud charges against Postal Inspector Joseph Schouten said he has faith in the quality of the agen tions the news media including vice president and administrator of Good Samaritan Hospital in Phoenix and on the national advisory ‘The lawsuit alleges Susha and Nac council of the University of Utah. He also received a Distinguished Alumni Award from the U. carato planned to go into business together, under the name Factory Auto Glass, once Zuro was convicted. Zuro Lake County pre POOR COPY Jan-98 RELY 29% J. ment under such brand names as Proform, Health rider and Nordic Track. The default,” since bondholders ee Oct-98 u 12% How manyofusthink this is a good time to take out a loan or buy on credit. companyhas been concerned In 1994. Icon's ch ecutive Jul97 cy’s investigations, but declined to com: ties for corporations and civic boards, 436 Jul-98 14% ” with locations in Salt Lake City, Provo and Ogden. He sued rival Nick Naccar ato, ownerof Antique and Classic Auto Glass in Salt Lake County, and U.S Postal inspector William A Susha, in Utah federal court this week Scott Parker will receive the award Towers. Parker has served in many capaci. Apr-98 13% and Microsoft Inc., and pledged to con tinue reviewing documents the firms ask to have sealed or redacted June 22, at Little America Hotel & Jan-98 14% 1 11% 17% See FONIX, Page C-5 Logan companyto replace high-cost bonds high-cost bonds with a mix of Apr-96 30% pel 30% Apr95 stock, cash and bonds with a lower interest rate “This will be a great tra Jan-96 \V fo 4% Apr95 Agreement on Debt takenon in a 1994 buyout. The agreement would replace about $250 million in Jul-96 How manyofus havereceiveda raise in the past 3 months? 30% om holders to restructure debt Apr-96 ra fn 5° 40° tive agreement with bond- Bn a2 {3 Jan-96 Oct-95 1% A 10% 43% Icon Health Reaches ployers, has reacheda tenta 43.8 SU How manyof us are seeking another job? 25% Rich Oldach, a spokesman company’s existing product BY GUY BOULTON 44.7 ~-s oY 0% for Lernout & Hauspie, said to concentrate on developing and generating revenues THE SALT LAKE TRIBUNE - How manyofus have a secondjob? notes. the acquisition of the Articulate Systemsproducts will be Icon Health & Fitness Inc., one of the state’s largest em. 448 a 20% 15% 4% 49% 19% 4% 14% 13% f 15% 10% 35% desperately needed cash. Cash from the proposed sale will allow the company 45.4 year, Fonix indicated it exmarily sells a voice-recognition product designed for radiology clinics, to generate sales of $10 million in 1999 The sale, however, will mean a quick profit for Fonix fromashort-lived acquisition lion in its 1998 fiscal year. But Fonix also id it lion in cash and an additional $4 million spread over two years. . 41.7 44.0 . 44.1 38.0 cluding its handwriting- and voice-recognition technol- 44.0 = ment on the lawsuit’s specific allega Zuro’'s lawsuit alleges Susha beganin. vestigating him for allegedly overbill ing insurance companies in 1994, but failed to persuade either federal or Salt tors that charges See GLASS, Page 7 But U.S. Magistrate Ron Boyce said not entitled to wide open access,” citing the companies’ legitimate interests in safeguarding trade secrets and other data Three news organizations, including The Salt Lake Tribune, had objected that morethan 50 pleadings in the case had been filed under seal igaisera ar ings under seal because Microsoft had over-designated thousands of documents as confidential. Microsoft defended its sealings as justified gram to Windows DR-DOS, an operating system that competed with MS-DOS, was developed by Digitial Research Inc., then Novell Inc., and is now owned byCal In February, before hearing the news media complaints, Boyce had noted the See SEALED FILES, Page C-5 |
