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Show Bu Siness THURSDAY, February 1, 1996 Che Salt Lake Tribune EYTTS 4 GOLD MERC SPOT. eres WASDAQ COMPOSITE 1059.79 +8.49 meee +$1.50 SURTRIALS 5,395.30 $1.1575 +14.0 -0.35¢ TRIBUNE BLOOMBERG INDEX FOR UTAH +52 a Software Jobs Decline 5.5% Utah's software industry posted a decline last year of 563 jobs, contributing to an overall decline of 2% in the state’s hightech employmeni, according to the University of Utah's Bureau of Economic and Business Research. Software, the largest of Utah's three high-tech sectors, logged a 5.5%decline even thougha shift of workers from manufacturing to computer services helped keep the sector ‘somewhat stable.” From 1993 to mid-1995, manufacturing companiescut their workforce by 19%, from 7,465 to 6,073. Companies that provide programming services increased their payrolls by 53% during that period, swelling their ranks from 1,352 to 2.068. Thestudy surmises that workers laid off by Novell Inc., the state's largest software company, either found employment at other computer companiesorstarted their own. About a quarter of the existing companies started after 1994. Production Company Opens NewStudio BRIEFLY... Mountain Cable Productions has completed a new studiofacility at its Sugar Housefilm and vid- eo production headquarters. The newstudio spaceis 30 feet by30 feet, with a 12-foot high grid lighting system. In addition tousing the space to serve its own clients, Mountain Cable Products also will be making the newstudio facility available for rental to independent producers, Mountain Cable Productions is a subsidiary of Mountain Cable Advertising, the Utah sales arm of TCI Cablevision of Utah Firms to Brainstorm At February Meet A dozen companieswill get capital coaching at the next annual Utah Venture Capital Conference on Feb. 8. The Wayne Brown Institute is lead sponsorof this mentor-based funding review program for highgrowth Utah companies.Todate, participants have raised more than $140 million in capital and created about 1,400 jobs through the conference This year's participants include high-tech start-ups from Loganto Orem, as well as a Phoenix firm. lomega Corp. reported $9.9 million in earnings for the fourth quarter ended Dec. 31. That is a 287% increase over 1994's fourth-quarter income of $1.3 million. Iomega, which has offices in Roy, provides personal-computer storage equipment. QO Santa Fe Pacific Pipelines president will speak at a Brigham Young University En- gineering Department Symposium today at 11 a.m. in the de Jong Concert Hall. Irvin Toole Jr.'s speech is titled “Hidden Highways-Petroleum Transportation Today.” The symposiumis free. Qo Information technology professionals in Utah can expect their salaries to remain competitive with their colleagues across the country. Source Edp, an employeestaffing firm specializing in the placement of information professionals, says a programmer-analyst in a client-server environment will earn an average of $43,900 in 1996. Junior programersin Utah will earn $36,000 andsenior programmers will average $52,300 a year. oO Angia Communicationsof Provo will offer SafeSend, a telephone-line adapter that allows PC Card fax/modemsto communicate over digital PBX telephones. Angia designs and manufactures data-communication products for portable computers. SafeSend will be available through micro-age dealers starting Feb. 15. Price is $129. o MATRIXX Marketing today opens newheadquartersforits Salt Lake City-based Custom Services Division. The headquartersare at 1065 W. LeVoy Drive (4500 South). 3 Industrial Commissioners Get Vote of No Confidence By Shawn Foster THE SALT LAKETRIBUNE The advisory committee to the state’s workplace discrimination watchdogs squared off Wednesday with the three Utah Industrial Commissioners. In a 7-5 vote, Utah Anti-Discrimination Division Advisory Committee members passed a noconfidence motion, saying commissioners who oversee the agen- cy are not doing their job Thelatest flap came over what someon the committee described as the commissioners’ disregard for the group’s recommendations for a new director Commissioners asked the panel to study 28 resumesand offer recommendations. The committee came up with two names. But ina Decemberletter, the three bosses told the advisory body to start over. Committee member Stephen Mikita said Commissioner Colleen Colton changed the search criteria after resumes already had been received. Colton, Mikita Said, is afraid of a strong, independentdirector. “For some reason they don't meet her new criteria and her new agenda,” Mikita said. “This committee has no confidence in the commissioners’ ability to hire a > nehe to be the Sale Lifts Big By Steven Oberbeck ‘THE SALT LAKE TRIBUNE Novell Inc.'s attempt to take on Microsoftin the lucrative personal-computer software business came to an abrupt end Wednesday when Novell announced it was selling WordPerfect to the Ottawa-based Corel Corp. The Utah company’s briefflirtation in taking on Microsoft proved to be a financial disaster. Novell agreedtosell its WordPerfect word-processing program and to license other software to Corel for about $194 million. Less than two years ago, Novell paid $1 billion for those sameassets. “It was a fire sale,” said Roxanne Googin, an analyst at Gruntal & Co, in Los Angeles Googin uoted, however,that the deal frees Novell of a majorfinancial burden andwill allowthe Utah companyto focusonits core networking business and battle with Microsoft's Windows NT, a program that competes with Novell’s NetWare Novell acquired WordPerfect in mid-1994 in the hopesthat it could expand its operations by selling the programs that link computers together andthe software that ran on them. five years. The company, though, was late Novell will gain 20% ownership in coming out with newversions in Corel, making it the largest new UADD director. But Mikita said the failure to hire a director was only the beginning. Committee members also say commissioners do not respond to requests for budget andpolicyinformation on enforcingstate laws against discrimination. “We never get a straight an- By Joan O’Brien ny marking the Huntsman donation. The companies wili move them uphill to the Bonneville Shoreline bench. There, the slope is too steep for any buildings, so the lines probablywill not have to be moved again. The relecation also fits into plans to extend the Shoreline Trail, said Thomas Nycum, U. vice president for administrative services. The newpipeline trail will meet needs for the Shoreline Trail ‘‘and will actually become an asset we feel good about.” Hikers and bikers who use the Shoreline Trail may hit a dead end near the Health Sciences Center for the four to six months it will take workers to relocate the lines. Work is expected te begin as soon as the weather warm. Mountain Fuelestimates relocation costs at $700,000; a cost figure from Chevron was not available. In return, the U. will extend the THE SALT LAKE TRIBUNE mation battle last spring, said his door — andthe doors of the other feet at last fall’s ceremony to un- 130ct 27 10Nov +24 8Dec Source: Bloomberg 22 SJan96 19 31 Steve Baker / TheSalt LakeTribune shareholderin the Canadian com- Googin says it is going to cost pany — even topping its founder Corel plenty just to keep the product competitive. ‘They are going to have to spend tons of money,” But David Wright of Marleau, Lemire Securities in Toronto says there always will be a market for a companyoffering an alternative to Microsoft's word-processing program, Word. “Theonly question is how much Corelis willing to spendto attract those customers,” he says. Corel had revenues of $196.4 million in the year ended Nov.30. Microsoft had $5.94 billion in and CEO, Michael Cowpland, who owns 18%. Novell also will get a seat on Corel’s boardofdirectors. Corel plans to combine WordPerfect with other programs, such asits best-selling graphicsart software, CorelDRAW, into a new package of programs for desktop computers. “It is a good deai for both companies, but at this point you just don’t know whatit will cost Corel to turn this thing [WordPerfect] around,” says Michael Geran, an analyst with Pershing/Div. of Donaldson, Lufkin & Jenrette in New Jersey. salesforits fiscal year ended June 30. ter, the company agreed to pay for relocation ofits pipeline. The regulatorstation, also on university land, was on a separate easement. The U.promisedit will pay relocation costs if it asks Mountain Fuelto moveit during the next 11 years. The agreement reached this week“meanstherewill be no delay, and no increasein costs [for construction of the cancer institute],” said John Morris, university general counsel. Provided the Legislature passes an $18 million revenue bondbill, and the building design is completed, construction on the building could begin as early as mid-summer, Nycum said. FREE STATE SAFETY CALL SALT LAKE mnsiCLASSAT 533-8644 ‘A DEVISION OF THE A-1QUALITY GLASS SROUP 1-800-501-1497 | MAKE A MOUNTAIN OUT OF A MOLE HILL Thesecars are available now at substantial savings. We have excellentfinance rates and very attractive lease programs. | Comesee thesespecial purchase cars while selection is best!| Compoundinterest. It can be a magical thing. Youstart with little in a Certificate of Deposit and the combina ‘96 Audi A4 | | tion of our high rates and compoundinterest will make “10 Best List” | sure you'll end upwith a lot. 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THAT'SRIGHT...FOR A LIMITED TIME GLASS ACT WILL WAIVE UP TO $100 OF YOUR INSURANCE DEDUCTIBLE. APPROVED BY Al! INSURANCE COMPANIES. FAST, FREE MOBILE SERVICE FROM LOGAN TOST. GEORGE. Dave Strong’s has made a special purchase of new front whee! drive Audi Ads and Aés from an overstocked mid-Westdealer. oon AG But for years,critics of the anti- WordPerfectto Core! Corp. Vwyywwyvvwwvyyvyvy two commissioners — always has discrimination division have complained that the industrial commissioners, who are appointed by the governor, are pro-business and that the agency does a poor job of dealing fairly with employee complaints. Many observers were angry about whattheycalled the forced resignation of former director AnnaJensen. Before sheleft in July, Jensen responded to a request by adviso rose to 13 1/2 Wednesdayafterit announcedthe sale of Dollars per share 20 companies’ easement for 25 years, not only for the new pipeline phase behind the Health Sciences Center, but also the pipeline phase running through ResearchPark. Until this week, Mountain Fuel had rejected that offer. Theutility, which had moretimeleft on its easement than did Chevron, recognized the U. had the right to force relocation of the pipeline. But companyattorneys rejected the U.’s assertion that Mountain Fuel also had to pay for the relocation. But whenthe U. offeredto give Mountain Fuel an 11-year extension on the regulator-station easementnorth of the Moran Eye Cen- swer back as to why a decision has been reached,” said committee member Linda Bayes. Commissioner ThomasCarlson, who survived legislative confir- Novell StockPerformance Novell shares, which traded at a 5-year low of 12 1/4 on Jan, 25, Companies Will Pay for Relocating Pipelines at U. veil a model of the Huntsman CancerInstitute building. But the oil and gas pipelines traversing the foothills behind the University of Utah's Health Sciences Center will have to be moved before construction can begin on the multistory building. A $100 million donation from industrialist Jon Huntsman and another $50 million from other sources made possible the construction of the institute and the cancer research to take place inside. But none of that money was earmarked for relocation of the Chevron and Mountain Fuel pipelines. Originally, the federal government granted the pipeline easement to the companiesto allow them to usethe land. in 1968, the federal land was given to the U., which allowed the pipelines to remain under the easement When thepipelines interfered with plans for the new building, U. lawyers argued the easement required the companiesto pay for their reiocation. Company lawyers disagreed. After a year of negotiation, however, the companies will pay for relocation of their pipelines. Currently, the pipelines run beneath the Moran Eye Center parking lot—site of the Oct. 2 ceremo- LaRocheIndustriesInc., a producer and distributor of chemicals, reported sales of $105.1 million for the quarter ended Nov. 30, an increase of $4.2 million for the same period a year before. LaRoche owns and operatesplantsin six states, including a plant in Orem. that were compatible with Microsoft's Windows programs and sales plunged. Novell and former WordPerfect managers and sales personnel clashed over the best way to meld the two companies. As a result, in the year ended Oct. 28, 1995, WordPerfect sales were down 23%. More recently, WordPerfect sales have been under even more pressure as a result of Novell's announcementon Oct. 30 thatit wanted to sell the program, says JeanOrr,a securities analyst with A.G. Edwardsbrokerage, whofollows Novell and Corel. “Potential customers were understandably worried about who would wind up with WordPerfect and whether there would be a commitment to supporting the product,” she says. They no longer have to worry. “Corel is a very credible vendor that will have a commitment to the product,” she says. As securities analysts scrutinized termsof thesale, they generally applauded Novell. The company now can redoubleits efforts on whatit does best — developing, selling and supporting networking software. They were more cautious about the impact upon Corel. Corel will pay Novell $10.75 million in cash and 9.95 million commonshares valued at $112.7 million. It also will spend a minimum of $70 millionin license fees for software use during the next Financial Burden ing company, has movedits of- 0 Info-Technology Jobs To Stay Competitive WordPerfect No one gave much thought to the pipelines buried beneath their Lake City. 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