Nortel Settles Class Actions
Telecom equipment maker Nortel Networks said it tentatively agreed to pay $2.47 billion in cash and stock to settle two shareholder class-action lawsuits over its accounting scandal.
Nortel, which has been working to recover from the scandal that forced it to restate financial results and fire several senior executives, said it wants to avoid being tied up in prolonged litigation. Shareholders filed numerous lawsuits against Nortel accusing it of violating U.S. and Canadian securities laws after it issued revised financial expectations for the 2001 fiscal year.
IBM to Make First Use of Cell Chip
A microprocessor designed to provide hyper-realistic imagery in video games will first be used in a new line of servers for defense, medical imagery, entertainment and other applications that require sterling graphics and intensive computing.
International Business Machines will make the computers using the Cell chip, which it designed with Sony and Toshiba.
The chip is to be used in Sony's upcoming PlayStation 3 game system and TV sets from Sony and Toshiba.
Google Hires Amazon Executive
Google hired Udi Manber, Amazon.com Inc.'s top Internet search executive.
Manber, previously chief executive officer of Amazon.com's A9.com unit, will be a vice president of engineering. Amazon.com hired David L. Tennenhouse of Intel to head A9.com.
IAC/InterActiveCorp said it earned $113.1 million in the fourth quarter, up from a loss of $45.9 million in the fourth quarter of 2004. Revenue rose 45 percent, to $1.79 billion. Full-year profit was $868.2 million, up from $151.8 million in 2004. Revenue rose 37 percent to $4.19 billion.
DirecTV said it earned $121.2 million in the fourth quarter, compared with a loss of $288.5 million. Revenue rose 7 percent, to $3.6 billion. For the full year, DirecTV earned $335.9 million, compared with a loss of $1.95 billion. Revenue rose 16 percent, to $13.16 billion.
Compiled from staff and news service reports.