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Show C7 BUSINESS Your Money C8 Utah briefs C8 FRIDAY August 22, 2003 wanker \\ Sv'azo Business Center opens NASDAQ SLCoffice will counsel minority entrepreneurs CLOSE: 1,777.55 NYSE S&P 500 CLOSE: — CLOSE: 5,656.87 1,003.27 Utah’s Top Performers - marketing and myriadotherissues, such as complet- By LesLey MITCHELL Financial Centers at branches in Salt Lake City, Ogden, Midvale, Provo and St. George that cater to Utah’s growing Latino population. The centers feature Spanish-speaking employees and printed materials in Spanish. “This is the first time we've established a partner- TheSalt Lake Tribune ing a loan application. But the center, which opens This is not your ordinary small business assistance center. . It has its own loanofficer. today, also will have twofull-time employees of Zions Bankin Salt Lake City working alongside counselors to review loan applications. Zions, which has invested $25,000 in the center The Pete Suazo Business Center at 625 W. Girard St. (640 North) has counselors to help minority entre- named after the late state Sen. Pete Suazo, is assigning a commercial loanofficer and an assistant to the spokesman. “Wesee a need to be sure we're reaching out to the [Latino community] in ways that meets their needs. Having a loan officer housed at this preneurscope with businessplans, accounting, taxes, center. The officer hasyet to be hired but the assistant See SUAZO, C14 ship with a group like this and actually housed a loan officer at a separate facility,” said Rob Brough, Novell laysoff The Bloomberg Utah Index measures the stock performance of the ar CLOSE: 233.79 state's r whee ee companies. ANALYSIS hundreds Atrio of upbeat economic reports ranging from jobless claims to regional manufacturing cheered Wall Street Thursday, prompting investors to pick up shares on strengthening expectationsof a solid recovery. The Nasdaq composite index reached another 16-month high. Worldwide cuts: Despite an unprofitable third quarter, the CEOsays the companyis gaining important contracts CFOofdiscountretailer Overstock.com steps down By LESLEY MITCHELL The Salt Lake Tribune Overstock.com President and Chief Financial Officer Jason Lindsey has stepped down from his posts, citing an Computer networking giant Novell on Thursday saidit laid off 600 people worldwide in its unprofitable third quarter as part of a plan to cut $100 million in costs annually. unspecified family health issue. Patrick Byrne, currently chairman and chief executive of the Internet’s leading discountretailer, said Thursday that he will reassume the company’s presidency. David Chidester, Overstock.com’s controller, will add the duties of chief financial officer. Lindsey, who hasserved as CFO For the quarter that ended July 31, Novell reported revenue of $282.8 million, about the sameas in the same quarterin 2002. Its net loss totaled $12.4 million, or 3 cents per share, compared with net income of $10 million, or 3 cents per share, for the third fiscal quarter 2002. Despite the losses, Jack Messman, Novell chairman, president and chief executive officer, painted an upbeat forecast for the rest of the year to Wall Street during a conferencecall heldafter the marketsclosed. since Overstock.com launched in 1999 and wasintegral to the company’s May 2002 initial public offering, will continue to work for the companyin a limited role. “T thank Jasonfor his extraordinary leadership andservice to Overstock.com andits customers, employees, and shareholders,” Byrne said in a statement. “I more than anyone know the debt that Overstock.com’s shareholders owe Jasonfor his enormous. contribution to the business.I could not have asked for a betterpartnertheselast four years.” Overstock.com sharesfell 61 cents, or § percent, on the news,closing Thursdayat $11.92 per share. — Bob Mims Judge dismisses P&G suit A federal judge has dismissed all remaining claimsin a suit filed by Procter & Gamble accusing several Amwaydistributors, including a Utah man,of spreading rumorsthat the household and consumerprod- ucts company supported satanic worship. Judge Dale Kimball of U.S. District Court in Salt Lake City dismissed the case Tuesday against formerdistributor Randy L. Haugen of Ogden and other remaining defendants. Amway Corp. had been dismissed as a defendantearlier. Cincinnati-based P&G filed the suit in 1995, claiming that Haugen spread a false rmor through Amway’s voicemail system that the P&G president had announced hewasassociated with the churchof Satan. At that time, Haugen had set up a network of Amway distributors in Utah, Nevada, Texas, Mexico and Canada. ~~ Pamela Manson Parvus and EuroTech merge South Salt Lake-based Parvus Corp. and Italy’s EuroTech Spa have completed a merger theysaywill provide their new companyagreater global market share for embedded computer products and systems integration services. The merger establishes a global leader in products for embedded PC/ 104 computers, which are increasingly “We took significant steps to imPABLO MARTINEZ Monstvats/TheAssociated Press Jeff Bleustein, CEO of Harley Davidson, poses with his motorcycle in front of the Capitol on Thursday in Washington. Riders gathered on the National Mall before heading to Milwaukee to celebrate Harley Davidson's 100th anniversary later this month. Appeals a certainty: The final version of competition regulations boosts states’ authority By Scotr LANMAN Bloomberg News The Federal Communications Commission released on Thursdaythe final version of new rules on local-telephone competition, setting the stage for regulatory proceedings in 50 U.S. states and legal challenges in potentially dozens of courts. “Every aspect of this order will be appealed,” Robert Quinn, vice president of federal government affairs at AT&T Corp., the largest U.S. long-distance carrier, said be- fore the order was released in Washington. The rules increase states’ authority to decide discount rates that new local competitors such as AT&T payto rent partsof the large regional-phoneproviders’ networks. They also deregulate high-speed Internet lines owned by the four largest local companies. Since the guidelines were adopted in February, FCCstaffers have been working onthedetails of the 576-page order, which includes statements from the FCC’s five members. By ADAM GELLER The Associated Press NEW YORK — Theeconomicrecovery, until now sluggish, is poised to gather speed and strength in coming months, according to a closely watched gaugeof the nation’s business climate. The report coincided with the gov- America and Europe,respectively. Corporate offices will be maintained in the United States, Italy, Germany and China, along with a networkofdistribution points in 16 other countries. Details on howthe merger might affect employees in both companies were not released. R COPY} -~ Bob Mims The orderasksstates to determine whetherthere is sufficient competition to warrant elimination of the discount by about 10 percent to 5,700. leasing, which has helped AT&T, WorldCom andother ri- Novell spokesman Bruce Lowryrefused to say how many people in Utah lost jobs in its latest round oflayoffs, how many people Novell currently employs in the state or whether the companyplans any furtherjob cuts. In addition to successfully cutting costs, Messmansaid Novell is continuing to gain important newcontracts. Healso noted the strategic addition of Ximian Inc., a Boston company that employs 70 people, shortly after the quarterended. The acquisition was seen as strengthening Novell’s commitment to the Linux operating systemspecifical- customersin the $128 billion local-telephone market. For example, if at least three competitors to Verizon Communications Inc. serve residential customers in New York with their own switching equipment, insteadofrenting from Verizon, that mayresult in a three-year phase-out of discount leasing, the ordersays. “Tt took the FCCtwoyearsto decide and write the order; we need time to read and understandit,’ Verizon, thebiggest U.S. local carrier, said in a statement immediately after the FCC’s release. “The world is changing so fast it mayalready be outdated.” Thefirst legal venues will probably be some ofthe12 U.S. appeals courts that hear challenges to FCC regulations, a telecommunications attorney said. Verizon and otherbig local carriers will object to rules over discount leasing, while rivals will seek to halt the deregulation of theregional phone companies’ data networks, analystssaid. Companies have been waiting for today’s release of the order before starting litigation. ly, and the open-source programming communitygenerally. Novell shares closed Thursday at $3.77 on the Nasdaq exchange, up 4 cents. See FCC, C12 lesley@sltrib.com Index showsU.S. economyon the verge ofa takeoff continue to operate under the Parvus and BuroTech brand names in North Layoffs represented nearly threequarters of the approximately $100 million Novell expects to save annually in operating expensesas a result of companywidecost-cutting. The layoffs of about 600 people, most of whomlost their jobs before the end ofJuly, reduced Novell’s worldwide employment vals to the majorlocal-phone companiessign up 10.2 million nouncement. The newly combined company will ics equipment. Nofinancial terms were disclosed in Thursday’s an- ter,” he said. FCC unveils new local-phonerules The Conference Board reported Thursday that its Index of Leading Economic Indicators rose 0.4 percent in July to 112.5, in line with analysts’ expectations. The rise in July’s reading followed a revised 0.3 percent increase in June. used in aviation, industrial, medical, military and transportation electron- prove Novell’s business performance through cost-cutting measures intended to enhanceour profitability beginning in our current fourth quar- ernment’s release of figures showing that first-time claims for unemployment insurance declined last week. The reports provide further evidence of an economythat is gainingtraction, analysts said, foreshadowing a more ro bust rebound in business activity this fall, albeit one that will dolittle to ease unemployment in the nearterm. “We're seeing some of the best 3 numbers that we've seen in a long time,” said Parul Jain, deputy chief economist for Nomura Securities. “That reinforces ourbelief that economic growth should pick up in the months ahead.” The improvement in the index, after weakness during the first quarter ofthe year, reflects gradual but sustained growth in business investment that could gather steam laterin the year, said KenGoldstein, an economist for the New York-based Conference Board. “With export growth still months away, the burden nowfalls on consumer spending and business investment,” Goldstein said. ‘The bottom lineis that the leading economic indicators are to the lowest level in six months. The government said that 386,000 newly laid-off workers filed claims for jobless benefits last week. That was lower than analysts had expected, and below the 400,000 figure that many economists say signals a stabilizing labor market. But the Labor Department revisedlast week's figure upwardto 403,000. Economists said that even with the decline in the newest figure, jobless claims remain high and the Conference Board’s measure of the current climate points to continued weakness inthela- bor market. Leading indicators Hereis a look at the Index of Leading EconomicIndicators. Seasonally adjusted 1996 = 100 114 [112.5] 112 10 108 eeEe Sh CLOSE: 9,423.68 will be Julio Suazo, a son of Pete Suazo. Zions in recent years has added seven Hispanic % é . 2 Seeee feepae “We are recovering but we’restill not seeing enough growthto put a dent in the unemployment rate andgive us a really significant improvement in labor market conditions,” said Anthony Chan, chief economist with Banc One Invest ment Advisors. ‘Until we see that we’re more favorable nowthan anytimesince the recession started more than two years ago.” The Conference Board’s reading on the economy was echoed by the Labor Department’s report Thursdaythat the not going to see the consumer getting ex numberof Americans filing new claims cited about the future and perhaps for unemploymentbenefits last weekfell See RISING, C14 } ! 106 104 102 a DowJones © Change from Lit PERERA, he, SLAMMINGSPAM:Direct marketers say they’rejoining thefight. C12 100 ) previous month = July 0.4% ) June 0.3% § May 1.1% 2 ae FMAMJ J 2003 ASONDJ 2002 SOURCE: Conference Board AP |
