LodgeNet Entertainment said revenue increased to $57.7 million in 3rd quarter ended Sept. 30 from $52.9 million same quarter year ago. But Sioux Falls, S.D., interactive service provider to lodging industry said its loss deepened to $4.7 million (-38? per share) from $4.1 million (-34?) year earlier. LodgeNet CEO-Pres. Scott Petersen said: “Despite the tragic events of Sept. 11 and the subsequent impact on the overall travel industry, we posted our 32nd consecutive record quarter for revenue and cash flow as we continued to solidly execute on our long-term strategic growth plan.” He said that while terrorist attacks were causing company “to moderate our capital expenditure plans to some degree, we remain on track to serve approximately 810,000 guest rooms with interactive television services and have our new digital platform in more than 100,000 rooms by the end of 2001.” Company’s services include Nintendo videogames on demand.
Handspring said first quarter loss widened to $32 million from $16.3 million year ago as revenue declined to $61.4 million from $70.5 million. Gross profit margin slid to 8.6% from 12.6% as Handspring cut prices on handheld PCs to clear out inventory for arrival of new Neo and Pro models. Inventory rose in quarter to $6.7 million from $2.8 million June 30. International revenue declined to $4 million, 7% of revenue, from 24%. Sales in Japan suffered from Handspring’s lack of color screen version of its handheld, while models sold in Europe encountered stronger competition from Microsoft’s Pocket PC platform, CEO Donna Dubinsky said. New Treo handheld PC, first of which ships in Jan. at $399, combines organizer, cellphone and Web browser and will be based on GSM standard at start. Color screen version of Treo is expected to be available by mid-2002 at $599. Treo, which is based on 3.5 version of Palm operating system, isn’t compatible with Springboard modules used in other Visor devices. Software upgrade to GPRS standard will be completed in 2nd quarter when Handspring also expects to add always-on e-mail feature. Treo also has full on-screen keyboard that allows user to dial phone number. With introduction of Treo, Handspring said it would close out largely unsuccessful VisorPhone by year-end. While Handspring has studied adding Java to handheld platform, it has “no immediate plans” to do so, Chief Technology Officer Jeffrey Hawkins said: “We're always looking at Java and we can support it if we need to.”
As first DVD+RW recorders ship to stores from Philips, DVD Format/Logo Licensing Corp. (DVD FLLC)has posted advisory distancing itself and DVD Forum’s DVD-RAM and DVD-RW standards from proprietary DVD+RW recording system.
New report predicts 41% of U.S. online households will connect via broadband by 2006. Jupiter Media Metrix analysts forecast that number of households accessing Internet via broadband connectivity -- cable modem, DSL, satellite or fixed wireless -- would increase to 35.1 million in 2006 from 5.2 million in 2000, with cable modems being primary driver. “Despite the recent failures of several broadband pioneers, and slower growth of the overall online population, broadband will find the masses in the U.S. shortly,” Jupiter analyst Joseph Laszlo said.
LG.Philips is expected to introduce new line of 17W, 23W and 30W LCDs at LCD/PDP International show in Japan later this month. LG.Philips, which has previously marketed 28”, will lead line with 30W that has 1,280x768 resolution, 450:1 contrast ratio, 450 candelas. Smaller 17W, which ships in Dec., has 1,280x768 resolution and 400 candelas, while 23W has 1,920x1,200.
Toysrus.com will start selling Video Game Enhancer (VGE) from Nuwave Technologies in time for holiday season, companies said Wed. VGE is Nuwave’s proprietary videogame console accessory that video enhancement technology company says visibly improves graphics of videogames when displayed on TV. Company says patented integrated circuit chip technology of VGE adjusts black level, chroma, clarity, intensity, luminance, noise reduction. VGE is compatible with all major consoles, including Microsoft’s Xbox, Nintendo’s systems, Sega’s Dreamcast, Sony’s PlayStation platforms. Nuwave said VGE was being sold in more than 2,300 retail locations in U.K. and U.S. including Electronics Boutique, Gamestop, J&R Music & Computer World.
Toshiba and Matsushita will combine LCD manufacturing operations in most recent instance in wave of mergers that has roiled display business as manufacturers seek to cut costs. Toshiba will hold 60% stake in venture, Matsushita 40%. Alliance, which is scheduled to formally debut in April, extends agreement announced earlier this year under which companies were building $1 billion LCD plant in Singapore. They said they would aim for profit in fiscal year starting in April and target sales of $2.8 billion. Venture will encompass Toshiba’s low- temperature polysilicon LCD business, which recently unveiled 14.1” model as well as organic light emitting diode (OLED) technology. In addition to Singapore plant, joint venture will operate Toshiba LCD plant in Fukaya, Japan, as well as Matsushita factories in Ishikawa and Uozu. Not part of agreement are plasma display panels (PDPs), which Toshiba already sources from Matsushita for 42W and 50W models. In forging alliance, Toshiba- Matsushita joins NEC-Mitsubishi and LG Electronics-Philips in merging LCD operations in effort to better compete in price- driven market that has seen retail prices for desktop PC monitors drop below $500. NEC also sources some LCDs from Taiwan manufacturer Chi Mei Optoelectronics. Matsushita and Toshiba also established joint venture for buying parts and materials for CRT production. Company will make bow in April and will be based in Osaka, Japan. Agreement follows Matsushita’s signing in Sept. of 3-year cooperation agreement with Thomson in for CRTs.
Promoted at Kenwood USA: Sally House to mktg. communications mgr., Brian Towne to national product mgr., home and mobile electronics, (James Yamasaki to product mgr., navigation… Gary Wesley advanced to dir.-planning & business development for eBridge direct mktg. project, Sony Digital Authoring Services.
Promotional and educational campaign for DVD Forum- sanctioned DVD-RAM and DVD-RW video recording formats will be outlined at briefing by Recordable DVD Council during Comdex PC show. Event is scheduled for Mon., Nov. 12, 2-4:30 p.m., Las Vegas Hilton’s Ballroom G.
Samsung signed $56 million PDP supply contract with Italy’s Sambers. Samsung will ship 14,000 50W PDPs to Sambers over life of 3-year contract -- 2,000, 4,000 and 8,000 in 2002, 2003 and 2004, respectively. Samsung, which began production in July, has month capacity at Chonan, S. Korea, plant of 30,000 units. Other OEM customers include Acer and Sampo. Samsung also signed on Electrograph to distribute its PDPs in U.S.