July 16, 1998
By Mary Beth Regan
WashTech Contributing Editor

TECH INVESTING: The International Trade Center's spacious atrium is a fabulous backdrop for Washington's second annual Technology Investor Conference, where 450 investors, entrepreneurs and high-tech mavens are trading cards and trolling for the next blockbuster, like Yurie Systems Inc. A few participants grumble that the event is ill-timed, with many analysts doing desk duty for second-quarter earnings. And big-name firms such as Goldman Sachs and Hambrecht & Quist are absent. But regional heavyweights are turning out big-time, however. Legg Mason, for example, has doubled the number of analysts covering high-tech and may open a Northern Virginia office in the coming year. This week, NationsBanc Montgomery Securities has hosted golf outings and private dinners to woo private companies. And the accounting giant, PricewaterhouseCoopers, is relocating two top tech analysts from a San Jose office to focus on Washington's high-tech scene. The import: More money and attention for those technology firms poised to make it in prime time. Larry Alleva, PricewaterhouseCooper's managing partner for technology, says these moves are strategic. "We're convinced the Mid-Atlantic region will lead the tech market in five years."

Net2000 CEO Charlie Thomas rehearses a sales pitch Photo by John Martin washingtonpost.com

DOLLAR DREAMS: For weeks, the top execs of Net2000, a five-year-old Vienna company, have been prepping for a brief moment in front of the money people at the Technology Investor Conference. In a series of three articles, John P. Martin of Washingtonpost.com tells how Net2000 CEO Charlie Thomas hopes to persuade investors that his company's package of specialized telecommunications services for business is the real deal, bring the company closer to its goal of an IPO. Thomas will present his carefully scripted medley of data, history and hopes to investors today.

PAYDAY: Led by tech employees' escalating salaries, American workers are enjoying the strongest compensation gains since the 1960s, Labor Department surveys show. The key is low inflation, which means that workers keep more of their paychecks' purchasing power. And as The Post's Tim Smart and Beth Berselli report, widespread worker shortages are prompting many companies to sweeten fringe benefits too, including child care and bonuses. The downside: The Post's John Berry reports there's more evidence today that the U.S. economy is slowing down.

WORLD WATCH: Herndon-based Network Solutions Inc., which has an exclusive license to register Internet domain names through September, knows competition is coming. And company execs don't want to give up their head start. "It's never going to be this easy," admits CEO Gabe Battista, "So we're out there stimulating demand." The company is repositioning itself to become a one-stop e-commerce support services firm. And it is striking up marketing agreements with international Internet service providers and Web-hosting companies worldwide, says TechWeb.

TECH COUNCIL: The Northern Virginia Technology Council's chair, Kathy Clark, the Landmark Systems Corp. boss, told Bootup that she has picked five new NVTC board members to serve one-year stints. They include: Lloyd Griffiths of George Mason University, Clif Webb of Weber/Ryan McGinn, Don Gonzalez of the Staubach Company, Andy Jacobson of Post-Newsweek Business Information Inc. and Todd Rowley of First Union National Bank. They'll join elected members of the 40-person board. No word on the choice for executive director to succeed Ray Pelletier.

REGULATORS CORNER: As expected, the DOJ put its stamp of approval on WorldCom Inc.'s $37 billion deal to buy MCI Communications Inc. And MCI announced that its intention to sell its Internet business to Britain's Cable & Wireless PLC for $1.75 billion in cash. The Post's Mike Mills says 400 MCI Internet employees now will join Cable & Wireless's Vienna headquarters. Next up: the Federal Communications Commission. That agency is expected to rule on the merger by summer's end.

HILL HAPPENINGS: Top telecom lawmaker Senator John McCain (R-Ariz.) is taking a stab at the controversial program that provides cheap Internet hookups for schools and libraries. In a hearing today, McCain is expected to question Ira Fishman, CEO of the Schools and Library Corp., about safeguards to protect against program fraud. The Schools and Library Corp. is charged with overseeing the hook-up program, which has a backlog of 30,000 applications. The Government Accounting Office is expected to recommend tightening procedure to evaluate applications, the Associated Press reports.

3Com's stock chart and current quote

FROM THE VALLEY: In Silicon Valley, tech mavens are talking about Bruce L. Claflin's new job. He's been named president and CEO of 3Com Corp., the Santa Clara computer-networking company. Claflin joins 3Com from Digital Equipment Corp., where he was the inside choice for the top spot before the takeover by Compaq Computer Corp. The Wall Street Journal reports that Claflin takes over at 3Com at a difficult time: The company faces an uphill battle with competitor Cisco Systems Inc.

REPOSITIONING: Were you hoping to pick up shares of PointCast Inc. during its upcoming IPO? Think again. The company has called off its IPO in order to pursue other deals with possible business partners. The company, which pioneered "push" technology to deliver information to computers, hinted that it may be in negotiations with Internet search engines such as Yahoo and Excite, according to Wired News.

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