AMX Corp. posted $8.1 million 2nd quarter loss, reversing year-earlier $200,730 profit as it took $8.2 million charge to cover inventory reserve ($3.2 million) and allowance against deferred tax assets ($4.2 million). Inventory reserve was created largely to cover consumer business for home automation systems, whose sales dropped 35% in quarter. Revenue declined to $23 million from $25.9 million year ago with commercial business accounting for 87% of sales, up from 80.8% in previous quarter, while consumer market fell to 13% from 19.9%. AMX, which markets software, controllers, user interfaces and peripherals, plans to expand consumer business, said CEO David Carroll, who conceded that existing line suffered from low margins. AMX, which for last 2 years had operated as Panja, also will move to use 3rd parties for building high-end products while it continues to make lower priced consumer devices, he said. Carroll, who was on AMX board and consultant to company, replaced Scott Miller as CEO last week as part of “effort to bring in more experienced leadership” to expand business. Miller, who founded AMX, had returned to company in Feb. and will retain stake in company.

SonicBlue said 3rd quarter loss narrowed to $55.3 million from $75.6 million year ago despite $28 million charge to cover layoffs and loss on sale of United Microelectronics stock. Revenue declined to $54.8 million from $139.9 million year ago, latter figure having included sales of graphics chip business that since has been sold to Via Technologies.

Barnes & Noble signed lease agreement for 30,000-sq.-ft. superstore in Boston’s Prudential Center. Store is to open in June. Like chain’s other stores, new location will feature more than 25,000 CD, DVD and VHS titles, along with music listening stations and Red Dot electronic music kiosk catalog, company said.

Palm cut price of top-end color m500 to $399 from $449 as it prepared for holiday selling season. Palm’s move to lower retail is most recent to hit handheld market. Handspring dropped tag on VisorPrism to $299 and Palm cutmono m500 to $329 from $379. Meanwhile, Palm CEO Carl Yankowski told investors conference late last week that company remained committed to buying software company Be Inc. despite sharp decline in both companies’ shares since deal was announced in Aug. Palm, which has seen value of its shares plunge 40% since Aug. 16, has said it will buy Be’s intellectual property and other assets for $11 million in Palm stock. In same period, Be’s shares have fallen 64%. Yankowski told analysts and investors at Prudential Securities Technology Conference in N.Y.C. that Be acquisition would bolster Palm’s ability to add new features to its own operating system software. Be shareholders are expected to vote on proposed deal Nov. 12.

Amazon Credit Account virtual, “cardless credit card” was introduced by Amazon.com. Online equivalent of department store credit card allows e-tailer’s customers to buy product now and pay later. As introductory promotional offer, Amazon said customers who signed up for Credit Account now would get 3 months of no payments and interest-free holiday shopping on orders over $200 placed through Jan. 31. Service is being provided by Amazon.com Financial Services and Citibank Cards division Citi Commerce Solutions.

Konami of America (KOA) demonstrated PS2 games ESPN NFL PrimeTime 2002 and Frogger: The Great Quest at low-key showcase in N.Y.C. ESPN title is to ship Nov. 13 for PS2, as well as PC and Xbox, at $49.99 for each platform, while Frogger game, developed by Konami’s American design team, will arrive for PS2 Nov. 19 at $49.99. KOA spokesman said Xbox version of Frogger game would follow next year. Separate Frogger title, Frogger’s Adventures: Temple of the Frog, will ship Nov. 23 as company mounts major effort to resurrect once-popular franchise introduced by Konami as arcade game in 1981.

By week’s end, 96% of CompUSA’s over 200 locations will have boosted game category presence as chain adds “game fixx” store- within-a-store section nationwide, CompUSA E-Commerce/game fixx Vp George Coll told us Fri. New game fixx section in brick-and- mortar stores is part of what Coll described as 3-tiered approach to boost presence of computer and videogame category. Initiative also includes new gamefixx.com Web site we reported on last week, along with start of game club. “Hardcore membership” for club costs $69.99 and allows member to get 10% off purchases and priority status when preordering new products. Members also automatically get $20 CompGift card upon signing up. “Junior membership” in club at $14.99 allows members to get $5 off purchases.

Garmin Industries postponed delivery of Palm-based handheld PC to mid-2002 from first quarter as it works to add new version of operating system (OS). Palm is expected to introduce 5.0 version of OS next year based on StrongArm processor that it said was expected to force hardware manufacturers to redesign their products. Most Palm handhelds currently contain Motorola’s Dragonball processor that operates at 33 MHz. “Changing to a new OS is a significant thing for a developer and this will make it [Palm OS] much better and much more competitive” with Microsoft’s Windows CE and Pocket PC-based devices, Co-Chmn.-CEO Min Kao said, noting that Garmin earlier had planned to develop handheld based on 4.0 OS. New handheld PC will introduced as Garmin releases GPS/CDMA phone. It’s expected to ship GPS/GSM phone by year-end in Europe. Meanwhile, Garmin said 3rd quarter profit slipped to $25 million from $28.3 million year earlier as revenues dipped to $86.9 million from $89.5 million. Downturn in earnings was result largely of 26% drop in sales to $22.8 million of Garmin’s GPS products targeting aviation industry. Consumer revenue rose 9% to $64.1 million and accounted for 74% of overall sales, while aviation was 26%. Company shipped 311,000 units in quarter, up from 298,000 year ago.

THQ signed exclusive licensing agreement with Dream Stage Entertainment to publish fighting games based on Pride license in N. America and Europe, Calabasas Hills, Cal., game maker said. Five-year agreement includes rights to develop games “for every viable gaming platform” including GameCube, PC, PlayStation 2 (PS2) and Xbox, company said. THQ said first game to ship under agreement will be Pride for PS2 in “back half of 2002.” Title is being developed for THQ by WWF Raw creator Anchor. THQ CEO Brian Farrell said his company wanted title to be “one of the most painstakingly accurate and dramatic fighting games ever created.”