Gateway Inc. President and CEO Wayne Inouye has resigned to pursue other interests. Richard Snyder, Gateway's chairman of the board and former president and chief operating officer, will serve as acting CEO during the search for a replacement, which is expected to be completed by the end of the third quarter. Inouye joined the firm in March 2004, after Gateway acquired eMachines Inc., where he had been CEO since 2001.

Nortel Agrees to US$2.5B Settlement

Nortel Networks Corp. has reached a proposed settlement worth about $2.5 billion in cash and stock with the lead plaintiffs in two class-action lawsuits over the network equipment maker's misstated financial results for several years leading up to 2003. Under the proposed agreement, Nortel would pay $575 million in cash and issue nearly 630 million common shares currently valued at about $2 billion.

Cisco Profit Declines Despite Sales Growth

Cisco Systems Inc. reported slightly lower profits on a 9.3 percent increase in sales for the quarter. Cisco cited growing adoption of converged voice, video and data networks for the sales increase.