PC titans bet on funky Tut for networks
Article Abstract:
Tut Systems' development of its Home Run phone-networking modems is drawing attention from some computer industry giants. Home Run aims to solve the problems of connecting multiple computers in the same household, a market that contains approximately 15 million US homes. Compaq, Lucent Technologies and AMD are among the companies that have reached licensing agreements with Tut, which was founded in 1991. Tut is expected to retail sub-$100, phone-networking modems by Christmas 1998. Microsoft, Intel and AT&T have joined in the $39 million investment in Tut, with Microsoft holding the largest equity stake of 13%. Tut says its faster and less expensive Home Run stands out from ordinary modems because if its resemblance to Morse code, which reads the duration of signals rather than their strength. Home Run is compatible with all home computers, according to Tut.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Networking firms to post mixed results
Article Abstract:
Mixed quarterly results for Mar 1998 are expected from computer-networking companies due to the combination of seasonal purchasing slowdowns, significant pricing pressures and slower top-line growth. The March quarter performance is estimated to be flat with that of Dec 1997, according to a Lazard Freres and Co analyst, although better results are forecasted for the rest of the calendar year. The anticipated growth will be driven by the strong market for ATM technology and remote-access products. For the second year, the computer-networking industry is experiencing modest growth after several years of robust performance. Top-line growth is expected at 20% to 25% in 1998, compared to 20% in 1997. Prices, however, will continue to drop; in 1997, the decline was pegged at 18% across the board, and for 1998, predicted prices will go down another 15% to 16%.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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3Com forecast triggers a tech sell-off: lower-than-expected net is due to a price war in key product line
Article Abstract:
3Com's announcement that its profits for 3rd qtr 1997 would be lower than predicted caused a 27% drop in its stock prices, and contributed to a general drop in technology stock prices. A price war with semiconductor giant Intel in the network adapter card market caused some of the revenue shortfall. Intel slashed its prices on the newest Fast Ethernet cards by roughly 40%, and 3Com was forced to match them. Approximately 40% of 3Com's sales are in the network adapter card market, which it has previously dominated. The price war could trigger new upgrade cycles, which would benefit 3Com in the long term, but analysts note that 3Com now has two formidable competitors: Intel and Cisco Systems, the networking market leader. Stock prices in the networking market have fallen since mid-Jan 1997, due to expectations of a slowdown in the networking industry.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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