Continuing coverage of recent WT stories
B>This issue, Washington Technology would like to introduce Revisited, where we will follow up on news stories we broke, deflate trial balloons that may have floated our way, and assess our predictions and prognostications. If there's a WT story you would like to see "revisited," E-mail Beau Brendler, WT Editor, at email@example.com
As predicted in WT late last year, PRC Corp. of McLean, Va., announced the sale of its Realty Systems business, a computerized information service, to the real estate industry. An alliance of Advance Publications, Cox Newspapers Inc., Knight-Ridder Inc. and Tribune Co. bought the unit, a subsidiary of PRC since 1970. The selling price was $60 million. The unit, a leading provider of real estate listing services, had been somewhat of an odd duck at Black & Decker's PRC Inc., which has mostly focused on professional services and systems integration for government markets.
Online Resources, Citibank call off Lawyers
Online Resources & Communications Corp. and Citibank Corp. have resolved their legal dispute in VIrginia Federal District Court through a confidential, out-of-court settlement. (WT, Dec.22)
Last November, Citibank sued the McLean Va. screen phone and electronic banking services firm, claiming its screen phone violated three Citibank patents. Online said the Citibank suit was without merit and countersued, precipitating a classic David and Goliath struggle. Neither side is claiming victory, but the case was dismissed with prejudice, which means Citibank cannot raise the issue in court again. As for Online, it's business as usual. "The suit is behind us, we are going forward as a company, and we will continue to support multiple devices, including the screen phone," said Gene Rickers, senior vice president and CFO of Online Resources.
Dauphin Down But Not Out
Dauphin Technology Inc. which, filed for protection under Chapter 11 of the Bankruptcy Code on Jan. 3, has managed to secure financing. (WT, Jan. 26)
In a Feb. 27 announcement, Dauphin said bankruptcy court had approved a financing agreement with Diamond and Diamond Merchant Banking Group, an offshore-based investment banking group. In its initial filing, the palm-top computer manufacturer listed debts of $43.4 million versus assets of $2.7 million. Approximately $40 million of that debt is owed to IBM, which will assign all of its claims to Diamond and Diamond. Dauphin is currently operating as a "debtor-in-possession" in a case pending before the U.S. Bankruptcy Court in Illinois. "We will now have the resources to begin new product designs that could add to our reputation as a leading developer of next generation mobile computers," said Alan Yong, president and CEO of Dauphin.
Globalstar Goes Public
Globalstar Telecommunication's initial public offering that Washington Technology reported was in the works early this year was completed Feb. 14. Globalstar, founded by Loral Corp. and QUALCOMM Inc. to launch a system of low-Earth orbit satellites to provide mobile phone services from space, raised $200 million by selling 10 million shares at $20 each.
However, Globalstar's initial investors can't be too overjoyed by their deal. The stock, traded as GSTRF on NASDAQ, is now selling for about $15.25 and in the last few weeks reached a low of $14.25. Other companies with partnership interests in Globalstar include, but are not limited to, AirTouch Communications of San Francisco, Calif., Paris-based France Telecom, and Hyundai Electronics Industries Co. Ltd. of Seoul.