Barrett steps up to replace Grove as Intel's CEO
Intel Corp. of Santa Clara announced that president and COO Craig Barrett
will become the company's chief executive starting May 20.
Mr. Barrett, 58, succeeds Andy Grove, 61, who will continue working as
chairman of the company.
"I have thoroughly enjoyed being Intel's CEO for the past 11 years, and
now I would like to focus more of my time on broad strategic issues," Mr.
Grove said in a statement.
During Mr. Grove's tenure as CEO, the company's revenues grew seven-fold
and its stock appreciated more than 1,600 percent. Now the dominant
developer of microprocessors, Intel's estimated worth is $127.2 billion.
In his role as operating officer, Mr. Barrett has served as the key
architect behind the company's chip development and has been successful
in driving its products into new markets overseas, the company said.
SGI anticipates lower than expected earnings
Silicon Graphics Inc. said its earnings and revenue for the quarter
ending March 30 will be below expectations.
Mountain View-based SGI said it expects to incur a significant loss based
on expected revenue of about $700 million. For the comparable quarter a
year earlier, SGI earned $11 million, or 6 cents per share, on sales of
"Our disappointing third-quarter results reflect the declines in the Unix
workstation and super computer business and marketing execution
challenges in the server business," SGI chief executive Richard Belluzzo
said in a statement.
In January, SGI posted a second-quarter loss and flat revenue growth. It
also named Mr. Belluzzo, a former Hewlett-Packard Co. executive vice
president, as CEO, replacing Ed McCracken.
Global Village to sell modem business
Sunnyvale-based Global Village Communication Inc. agreed to sell its
modem business to rival Boca Research Inc. for $10 million in cash and
Global Village, which specializes in making communications equipment for
Apple Computer Inc.'s Macintosh computers, also said it will rename
itself later this year and focus on a new business, making networking
equipment for small and medium-sized businesses.
In the past five years, Global Village has reported two big annual
losses, mostly due to the fact that the company's business has been
dependent on ups and downs of Macintosh sales.
Global Village, a public company, reported that its modem business
accounted for a majority of its $68 million in sales in 1997.
Boca Research, a maker of modems based in Boca Raton, Fla., will receive
Global Village's brand name, modem technology, distribution agreements
and about 60 employees.
Global Village said it expects to lay off about 25 employees in the
The acquisition is expected to be completed by June.
David Manovich, former senior vice president of international sales and
support for Apple, has been retained to facilitate the transition of the
Global Village business to Boca Research.
Sun, IBM to co-develop Java-based OS
IBM and Sun Microsystems Inc. agreed to jointly develop a computer
operating system based on Sun's Java programming.
Executives for the two companies said they expected to roll out the
system by the middle of this year. IBM plans to offer the software,
called "JavaOS for Business," on its network station computers in early
1999, while Sun will shift customers to the software over the next year.
IBM and Sun have worked closely on Java, which Sun has pitched as an
environment that would allow programmers to write code once for use on
any computer or intelligent appliance.
In contrast, programs written to run on Unix systems have to be
re-written for Windows systems and vice versa.
Task force considers ferry service
A panel of high-profile local officials met in San Jose March 30 to
discuss the possible expansion of ferry transportation in the San
Hosted by San Jose mayor Susan Hammer, the meeting was the first of a new
task force that was started under the direction of the California State
Senate and is being led by the Bay Area Council and the Bay Area Economic
The first meeting of the task force brought together Ms. Hammer, San
Francisco mayor Willie Brown, Oakland mayor Elihu Harris and nearly 40
other representatives from area companies, environmental organizations
and government agencies.
For the time being, the task force is only studying the feasibility of
expanding the water transportation systems in the Bay Area to help
relieve traffic congestion.
Interest in expanding the ferry service has been growing since the 1989
Loma Prieta earthquake, when the Bay Bridge closed and ferry usage
swelled. Since then, job growth has increased in Silicon Valley,
especially in the region bordering the southern shores of the Bay.
Latest Intel chip not so speedy
The new, much-anticipated chip developed by Intel Corp. in Santa Clara is
not as fast as its competitors, according to tests performed by computer
magazine PC World.
The chip, called Celeron, is expected to be launched April 15 and is
aimed at the sub-$1,000 personal computer market.
PC World said it obtained a pre-production PC with a Celeron chip running
at a speed of 266 megahertz.
After initial tests, PC World said that Intel's rivals are still ahead in
both price and performance in comparison to chips developed by Advanced
Micro Devices Inc. and National Semiconductor Corp.
PC World wrote that Celeron fails to live up to its name, which comes
from the Latin word "celer," which means speed. PC World has published
its complete results at its complete results at http://www.pcworld.com.
Banks add real estate expert to board
Palo Alto-based Greater Bay Bancorp has added a prominent real estate
figure to its board of directors.
The $1.2 billion holding company for Cupertino National Bank,
Mid-Peninsula Bank, Peninsula Bank of Commerce, Venture Banking Group and
Greater Bay Trust Co., has snagged longtime real estate broker/developer
George Marcus to serve on its board effective March 24.
Mr. Marcus, the chairman and founder of Palo Alto-based Marcus &
Millichap Co., has been a member of the board of Mid-Peninsula Bank
since its founding in 1987.
His banking experience began in the early 1980s as a founder and
member of the board of directors of Plaza Bank of Commerce, which was
headquartered in the Silicon Valley.
His Marcus & Millichap firm is also the parent company of Palo
Alto-based SummerHill Homes and Essex Property Trust of Palo Alto,
which was spun off into a real estate investment trust.
Adaptec cuts 7 percent of work force
Officials with Adaptec Inc. said the company will lay off as many as
250 people or 7 percent of its work force, and take a charge of $8
million to $12 million to cut costs as sales of its computer
Milpitas-based Adaptec is responding to an industrywide slump in
integrated circuit sales to disk-drive makers.
The company is also hit by the downward price pressure in the desktop
computer business, which is challenging companies such as Adaptec
that make high performance and higher priced system options.
Adaptec makes adapter cards that connect personal computers to
printers, storage devices and other accessories.
The company will make the reduction in force in the next few days and
take the charge in its first quarter ending June 30. Most of the cuts
will be made in the United States, company officials said.
The publicly traded company reported revenue of $934 million for
fiscal year 1997 and started to see a drop in revenue at the end of
the third quarter last December.
Digital Microwave expands in Brazil
San Jose-based Digital Microwave Corp. announced March 30 the opening
of an office in Sao Paulo, Brazil, to support increasing demand for
The demand is resulting from growth of competitive cellular
telecommunications services in Brazil, according to Charles Kissner,
chairman and CEO of Digital.
The office will provide sales, marketing, customer service and
project management support.
Immediate projects include the support of products currently being
supplied for private users and for the Telecomunicacoes Brasileiras
S.A., which is the largest telecommunications carrier in Latin
New toilets flow into downtown
Downtown will be flush with toilets this summer, thanks to a recent
decision by the San Jose Redevelopment Agency.
After approving a contract for the installation of six stand-alone,
self-cleaning public toilets last December, the agency on March 19
approved an amendment to the original agreement, which allows for an
additional commode to be installed in the central business district.
French manufacturer JCDecaux--which has a domestic operation in San
Francisco and whose toilets are already scattered throughout that
city--has agreed to provide the pricey pit-stops for $369,000
annually for 20 years.
The addition of the seventh toilet will increase the value of the
contract to $430,500 per year, or $61,500 per unit.
The newest addition will be located at the northeast corner of
Almaden Boulevard and San Carlos Street, at the south end of the
The six other toilets, which will be installed by the end of July,
will be located in St. James Park, San Pedro Square, Fountain Alley,
the Valley Transportation Agency site at Santa Clara and First
streets, in the South First Street area near First and San Salvador
streets and in the Plaza de Cesar Chavez.
c 1998 American City Business Journals Inc.
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