Motorola Sues Former Executive Over New Job
Motorola sued its former president, accusing him of breaching agreements with the company by accepting the top job at Nortel Networks. The lawsuit, filed in Chicago, alleges that Michael S. Zafirovski's new job as chief executive of the Canadian telecommunications-equipment maker will mean the use or disclosure of Motorola's trade secrets.
Zafirovski, who left Motorola in January after being passed over for the top job there, is to begin with Nortel on Nov. 15. The lawsuit seeks to stop him from working for Nortel for two years, keep him from hiring Motorola employees and prevent him from disclosing confidential information about Motorola. Nortel was not named as a defendant in the lawsuit.
MERGERS & ACQUISITIONS
Talk America to Buy Network Telephone
Talk America Holdings, a Reston-based telephone and Internet service provider, said it will acquire privately held Network Telephone Corp. of Pensacola, Fla.
Talk America will pay about $20 million for Network Telephone, which provides phone and Internet services to small businesses in eight Southern states. Network Telephone is expected to generate $60 million in revenue in fiscal 2006.
The deal is expected to close in early 2006.
Microsoft Readies Product Launches
Microsoft, looking to revive sales after its slowest-ever growth last year, is touting new software, video game and wireless products over the next 12 months as its best lineup ever.
"We're at the beginning of 12 months of the greatest innovation pipeline our company has ever had," chief executive Steven A. Ballmer said at a Gartner event in Orlando.
Among the promised products are the Xbox 360 game console, wireless phones and e-mail devices that use Windows, the new Vista Windows operating system and Office 12.
EBay said third-quarter profit surged 40 percent from a year earlier, to $255 million, as sales in Europe and Asia outpaced U.S. growth. Revenue rose 37 percent, to $1.1 billion.
Cingular Wireless said third-quarter profit rose 56 percent, to $222 million, as the company cut more jobs than expected after its merger with AT&T Wireless Services last October. Sales more than doubled, to $8.75 billion.
Online Resources, a Chantilly company that provides online payment services, said it earned $2.4 million (9 cents a share) in the third quarter, up from $1.8 million (9 cents). Revenue rose 38 percent, to $15.3 million from $11 million.
Eastman Kodak said it lost $1.03 billion in the third quarter, compared with a year-earlier profit of $458 million, largely because of tax charges related to restructuring. Sales rose 5 percent, to $3.55 billion. For the first time, Kodak generated more revenue from digital than from chemical-based products.
Compiled from staff and news service reports.