Austin American-Statesman from Austin, Texas • 31

1 Updates cn ttio Web Log on for up-to-date news Insldo NYSE D5 Nasdaq D8 Mutual funds D7 Commodities D8 Mexican stocks D8 0, AustmScDxom Wednesday, July 8, 1998 and markets information at www.austin360.com. Updates at 10 a.m., noon and 5 p.m. I Dow Jones industrial average, dose 9,100. Slow Im 9,000 SSr 8,900 8,800 i Quarterly drop reflects restructuring charge amid 8,600 Motorola tumbles Motorola Inc. reported a second-quarter loss after taking a $1.98 billion charge to pay for restructuring costs.

The company would have made $6 million without the charge. weak global market Q2 1998 By Omar Gaulaga $400 million $7 billion American-Statesman Staff $9 billion 8 7 200 6898 61598 62298 62998 7798 MARKET INDEXES Close Change Dow Jones Industrial average 9,085.04 Nasdaq composite 1,908.11 1,154.66 Philadelphia Semiconductor 254.87 10.07 Mexico Bolsa 4,510.61 98.73 COMMODITIES, spot price, near month delivery Oil (light sweet crude, barrel) $13.62 Natural gas (1,000 cu. ft.) $2,365 Motorola Inc. on Tuesday posted a 11 6 said it would eliminate 15,000 of its 150,000 jobs worldwide to reduce costs. No further announcements were made on Tuesday, but a spokesman in Austin said a "lot of people" have taken the voluntary severance package the company is offering.

He declined to say how many workers have taken the package. For the quarter, the company lost $1.3 billion, or $2.22 per share, compared with a profit of $268 million, or 44 cents per share, in the 1997 second quarter. Revenue for the 1998 quarter was $7 billion, down from $7.5 billion last year. Without the charge, Motorola would have posted a $6 million profit, or 1 cent per share. Stock analysts had expected the company to post an operating loss of 4 cents a share.

Motorola's shares rose in trading Tuesday, $1.43 to $55 a share. Earnings were released after the market closed. See Further, D4 second-quarter loss after taking a $1.98 billion charge to pay for a large restructuring. Motorola, based Schaumburg, said :1 -200 q2 19g7 1 -400 $268 million -600 1 -800 bil Q2 1998 I I bil billion bil weak economic conditions in Asia and the slumping semiconductor market continued to hurt the company, as revenues fell 7 percent during the quarter. 2j i 0 Christopher Galvin, Motorola chief ex Q3 Q4 Q3 Q4 Ql Q2 1997 Ql Q2 1997 Ql Q2 1998 Ql Q2 1998 ecutive, said the negative effect of the Asian crisis would continue for the rest of the year.

Source: Bloomberg News, Motorola Inc. Jay CarrAA-S During the second quarter, Motorola had Changing entrepreneurial hats KXftN gels 11817 3 EH Administration relaxes encryption regulations WASHINGTON The Clinton administration is easing U.S. licensing requirements for the export of data-scrambling computer secrecy software to most foreign banks and other financial institutions overseas. Under new Commerce Department guidelines announced Tuesday, software makers will no longer have to get an export license for each sale of encryption programs to foreign banks, security firms, brokers and credit card companies in 45 countries with strong money-laundering laws. Only last year, the United States began exempting those institutions from a requirement that U.S.

encryption software exports include third-party "keys" that allow law enforcement to crack their code and recover transaction data. The Justice Department and FBI have waged a 10-year campaign for requiring that encryption codes have recovery keys to maintain their ability to monitor and investigate digital-age organized crime and terrorism. stands by purchase of TCI Radio giant Chancellor breaks into television with w. acquisition of LIN In By Kim Tyson American-Statesman Staff Chancellor Media one of the nation's biggest radio station owners, announced Tuesday it is buying LIN Television Corp. which owns a dozen television stations including KXAN-TV, Channel 36 in Austin for about WASHINGTON Corp.

Chairman C. Michael Armstrong Tuesday said his company will not renegotiate its deal to buy cable giant Tele-Communications despite last week's falloff in the value of shares that it would use to buy the company. "There is nothing to renegotiate. The deal is done, signed, sealed and delivered," Armstrong said after appearing before a Senate hearing on telecommunications and me C. Michael Armstrong: Corp.

chairman calls buy 3 done deal. Rebecca McEnteeAA-S window shades, switched to selling designer hats and eventually settled on her current business in golf hats. Susan Connett works with her business, Hats at her desk in her Southwest Austin home. She started off selling rvlr 1 I i'Jt dia industry mergers, according to a spokesman. Investors have been skittish about the deal, mainly out of concern that will need to spend billions of dollars to upgrade TCI's cable Flexibility is a key ingredient in success of a small business television systems so they can offer Internet and telephone services.

The company's shares have $902 million in stock. Irving-based Chancellor is buying LIN from affiliates of the Hicks, Muse, Tate Furst Inc. investment firm of Dallas. The sale would allow Hicks, Muse, which now is Chancellor's largest shareholder with 9 percent of its stock, to increase its stake in the company to 18 percent. The transaction allows Chancellor- to enter the television business and gives it control of Austin's most watched news station.

KXAN, which has been an NBC affiliate since it went on the air in 1965, was ranked first in viewers in May for its 6 p.m. and 10 p.m. newscasts. Jane Wallace, station manager of KXAN, said Chancellor's purchase of LIN should have no effect on the operations of the station. "The reportingrelationships for us will stay exactly the same," she said.

"Gary Chapman will still be my boss." Chapman, LIN's president and chief executive officer, has been named president of Chancellor Media's television operations and fallen 14 percent smce June 24, when announced it would pay $48 billion in stock for TCI. GE first to reach $300 billion U1 i Today's Focus: NEW YORK General Electric Co. Tuesday became the first U.S. company to be worth more than $300 billion. Based on GE's closing stock price of $92.62 a 2 share, the Fairfield, company has a market value of about $301.8 billion.

The second most valuable company is Microsoft worth about $266 billion based on Tuesday's closing price 4 in her case, simply changed hats. Flexibility is a business strategy that many companies rely on in Austin and across the nation. Austin Antique Street Lamps for instance, used to manufacture dune buggy bodies. Metal -Optics Inc. started out in the mid-1980s doing energy audits for the City of Austin and now makes reflective lighting devices.

Nationally, big companies will often diversify product lines to remain flexible. Occasionally, they will switch businesses altogether. Can manufacturer American Can, for instance, evolved into Primerica, an insurance company that merged with The Travelers Inc. Likewise, Houston-based Zapata a one-time oil company, announced this week it is separating into two companies, one that makes fish meal and sausage casings and one that invests in Internet companies. By Kim Tyson American-Statesman Staff When Susan Connett started her business six years ago, she didn't know exactly what she wanted to do only that, like other entrepreneurs, she wanted to work for She started off with an idea of selling window shades.

When that didn't work, she switched to selling designer hats. When those flopped, she switched to selling golf hats because, simply put, golf is "where people wear hats," she said. Today, her Hats Etc. supplies 200 accpunts and is projected to rack up $300,000 in sales this year. One of her largest customers is rapidly expanding Golfsmith International Inc.

of Austin, which now has 20 golf superstores around the country. Connett says her Austin company is proof that one of the keys to building a small business is remaining flexible and changing directions if that's where the customers are. When one idea didn't work out, she pursued another or maybe of $107.93. Idled GM workers get UAW help to Chancellor board. Besides owning KXAN, LIN also FORT WORTH Workers laid off by General Legislation that would limit punitive damages that small businesses must pay moves forward in Congress.

Roundup D2 Motors because of strikes at two key plants in Michigan are getting some financial help from the has a local marketing agreement with KNVA-TV, Channel 54, that is part of the deal. United Auto Workers. The international union has agreed to issue The acquisition has been ap proved by the boards of LIN and i See Radio, D2 strike loans to workers from Local 276 in Arlington since the state is not likely to pay them unemployment benefits. See Flexibility, D2 The nearly 1,400 eligible workers in Texas were laid off two weeks ago when strikes at two GM parts supply plants in Flint, shut down the automaker's Arlington assembly plant as well as 25 other GM production facilities. Texas workers Study: Iminigrants benefit U.S.

economy will only have to repay the $150-a-week loans if the state denies them assistance. IXC names DeAngelo to Met post S. I Jan Lindelow: Analysts say executive needs to focus on positioning the company against its competitors. Lindelow takes over leadership at Tivoli ii 1 1 m. wuii in- -ui s' i i immigrant-advocacy groups, is the latest addition to an array of studies that have attempted to influence immigration policy by putting a dollar value on immigration.

Proponents of restrictions on immigration, includ IXC Communications an Austin-based company that sells network bandwidth to other companies, named Dominick DeAngelo as head of ip Internet services. IXC recently acquired several Internet-related companies to strengthen that part of its business, which DeAngelo will lead. He was formerly a vice president at Sprint Communications. IXC shares closed at $44.81, down 31 cents, Tuesday in Nasdaq trading. By Christi Harlan American-Statesman Washington Staff WASHINGTON A study released Tuesday bolsters the notion that immigrants are a boon to not adrain on the U.S.

economy, in part because immigrants are slightly more likely than U.S. natives to start businesses that generate both jobs and taxes. "Immigrants are not just workers. They are also people who start businesses," said author Stephen Moore, an economist with the libertarian Cato Institute. His report listed 10 high-tech companies, including Intel and Cypress Semi: conductor, that were founded or co-founded by foreign-born entrepreneurs.

Moore's study, published jointly by the Cato Institute and the National Immigration Forum, an umbrella organization of Dominick DeAngelo: Former Sprint vice president to lead Internet services. Rep. Lamar Smith: Says study ignored previous research. The company, which posted $1 billion in revenues last year, has grown in the past year from 607 employees to 1,276 in Austin and from 1,620 to 3,120 nationwide. Tivoli is engaged in a fierce battle with Computer Associates of Islandia, N.Y.

Both companies develop software that helps corporations manage their computer networks. Hewlett-Packard is also a competitor. Moss, Paquet said, was skilled at building a small company into a large one. Under Moss, TiVoli first sold stock to the public in March 1995, and was acquired a year later by IBM for $743 million. "Now it's up to Jan to take a company that See Lindelow, D4 0 9 III By Lori Hawkins American-Statesman' Staff The job of managing Tivoli Systems' fast growth and maintaining the company's competitive edge now belongs fully to Jan Lindelow.

He became chairman of Tivoli on Tuesday with the retirement of Frank Moss, the executive who directed the company through rapid changes, including its purchase by IBM Corp. in 1996. "Jan actually has a tougher job than Frank," said Ray Paquet, research director of Gartner Group in Boston. "It's one thing to climb the mountain, it's another to stay on top, and that's the posifeon Tivoli is in." ing Rep. Lamar Smith, R-San Antonio, and the Center for Immigration Studies, said Moore ignored previous studies that found an economic downside to immigration.

Items are compiled from staff and wire reports. How to contact us: Business Editor Becky Bisbee: 445-3671 E-mail: Businessstatesman.com .0. Box 670, Austin, TX 78767 See Study, D4.