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.
Business Objects to Buy Firstlogic
Business Objects SA has agreed to buy Firstlogic Inc., a maker of enterprise data-quality software, for $69 million. Business Objects said the deal, which is expected to close in the second quarter, will expand its product line for users looking to standardize on a single platform. The two firms have been partners since 2004.