Austin American-Statesman from Austin, Texas • 19

Wednesday, January 25, 2006 Austin Amertcan-tatcsman statesman.com Section Austin's Pervasive shuffles management 77 Dave Sikora CEO who joined firm in 2002 and launched major growth plan resigned Monday; he says he's not sure what he'll do next. Pervasive said Sikora resigned Monday, but it did not offer an explanation. He will be replaced by John Fair, the database-management software company's longtime chief financial officer. Also leaving the company is Jeff Seiden, vice president of corporate development, who was a key player in Pervasive's acquisition strategy and offshoring efforts. "We are going to focus a little bit more on the bottom line," said Farr, who joined the company as controller in 1994.

"We've focused a lot on growing Software firm to shift focus from growth to the bottom line, incoming CEO says By Lori Hawkins AMERICAN-STATESMAN STAFF Pervasive Software Inc. on Tuesday announced a management shake-up, including the departure of CEO Dave Sikora. The Austin company also plans to revise its business strategy. Shares of Pervasive rose 13 cents, or 3.2 percent, to close at $4.25 during regular trading Tuesday before the announcement. In after-hours trading, shares fell 21 cents, or 4.9 percent, to $4.04.

Sikora joined the company in 2002 and launched an aggressive growth plan, overseeing the acquisition of Austin-based Data Junction Corp. for $51.7 million in cash and stock in 2003. A year later, the company began See SOFTWARE, C3 the top line, and some of those investments haven't paid off to the degree we would have liked. There are areas where we can be more productive and more profitable." pi isney dea South Congress putting on the ritz IS fas with Pixar will create a toon titan $7.4 billion purchase puts studio's CEO in prime Mouse territory By Gary Gentile ASS(XTATEl) PRESS LOS ANGELES The Walt Disney Co. is buying longtime partner Pixar Animation Studios Inc.

for $7.4 billion in stock, a deal that could restore Disney's clout in animation while vaulting Pixar CEO Steve Jobs into a powerful role at the i --rr -duA media conglomerate. Disney's purchase of the maker of the blockbuster films "Toy Story" and "Finding Nemo" will make Jobs Disney's largest shareholder. Jobs, who owns more than half of Pixar's shares and heads Apple Computer will join Disney's board. BUSINESS DIGEST AUTOMAKERS DaimlerChrysler to cut 6,000 jobs over 3 years BERLIN Automaker Daimler-Chrysler AG said Tuesday it will cut administrative staff by 20 percent worldwide over three years, eliminating 6,000 jobs to save about $1.2 billion a year and make the company leaner and more profitable. Nearly 60 percent of the jobs to be cut will be in Germany.

About 30 percent of the management level will be cut, including areas of accounting, auditing, personnel and strategic planning. The DaimlerChrysler announcement came a day after Ford Motor the second biggest U.S. automaker, said it was cutting up to 30,000 jobs and closing 14 facilities by 2012. General Motors the world's biggest automaker, announced a restructuring plan in November that will shave its work force by 30,000 and close 12 North American facilities. PHARMACEUTICALS Flu vaccine makers set high goal for next season ATLANTA Expecting rising demand for flu shots, pharmaceutical companies are gearing up to produce as many as 120 million doses of vaccine for next flu season.

That far surpasses the record of 95 million doses produced in 2002. Vaccine makers say they are increasing production because of public fears of avian flu, better government reimbursement for shots and indications that federal health officials might one day recommend flu shots for nearly everyone. Each year, between 5 percent and 20 percent of the U.S. population gets the flu, leading to about 36,000 deaths, federal officials say. The manufacturers' projections could mean an end to the shortages that have worried patients and health care workers for the past three autumns.

"It's good news," said Glen Nowak, a spokesman for the Centers for Disease Control and Prevention. COMPUTER SERVICES Lawsuit against IBM says overtime pay was denied SAN FRANCISCO IBM Corp. was sued in federal court Tuesday, accused of not paying overtime to tens of thousands of rank-and-file employees. The suit seeks class-action status to represent computer installers and maintenance workers for IBM throughout the United States. Employees allege they were forced to work more than 40 hours a week, and were called in on weekends without getting overtime pay.

The suit seeks compensation for the past four years for affected current and former IBM workers in California, and three years of back pay for those in other states. Lawyers said they are also considering punitive damages. SEARCH ENGINES Google agrees to China's censorship requirements SAN FRANCISCO Google Inc. has agreed to censor its results in China, adhering to the country's free-speech restrictions in return for better access in the Internet's fastest-growing market. Google plans to roll out a new version of its search engine bearing China's Web suffix today.

By creating a unique address for China, Google hopes to make its search engine more widely available and easier to use in the world's most populous country. Because of government barriers set up to suppress information, Google's China users previously have been blocked from using the search engine or encountered lengthy delays in response time. To obtain the Chinese license, Google agreed to omit Web content that the country's government finds objectionable. Google will base its censorship decisions on guidance provided by Chinese government officials. Items compiled from staff and wire reports.

Steve Jobs lljCK CLAItK ARCHITECTURE, MICHAEL HSU DESK IN OFFICE August. Condos are expected to be ready by early next year. Mars Restaurant and Anne Kelso Salon will be among the retail tenants. Map, backpage. The '04' development on South Congress Avenue will have retail, office and living space.

Developers expect the retail space to be ready for tenants in "With this transaction, we welcome and embrace Pixar's unique culture, which for two decades has fostered some of the most innovative and successful films in history," Disney chief executive Robert Iger said Tuesday in a statement. Disney has co-financed and distributed Pixar's animated films for 12 years, splitting the profits. But that deal expires in June, and it had once appeared that the companies would not renew it See ANIMATION, back page Upscale clothing store By George, Mars Restaurant and Bar, specialty grocer Cissi's Market and Anne Kelso Salon and Day Spa will be tenants in a development that recently broke ground at 1400 S. Congress Ave. The 2-acre project, next to popular eatery Guero's, will be called "04" after the area's ZIP code, 78704.

Built on the former site of the Capitol Car Credit auto dealership and garage, the development will feature 70,000 square feet of residential, retail, restaurant and office space. Guero's co-owner Rob Lip-pincott and two partners, Abe Zimmerman and Stan Bider-man, are developing the retail and office portions. Zimmerman, Biderman and another partner, Peter Barlin, are developing 28 condominiums in a five-story building. The retail space will be ready for tenants by August, the developers said. Construction is See DEVELOP, back page Development under way on city's hip strip to have upscale living, eating and shopping By Shonda Novak AMERICAN-STATESMAN STAFF Shoppers will be able to pick up some ritzy threads, nosh a little and get their hair done when a high-end mixed-use project on South Congress Avenue opens.

I'm ran iBiiirtraiihftfTiirililiitMi Tuimil' rtw PIXAR ANIMATK )N STt HI KS INC. Disney has been helping to finance and distribute Pixar animated films for years, including the 2003 lost-fish adventure 'Finding The '04' mixed-use project will be built on the site of the former Capitol Car Credit auto dealership and garage on South Congress Avenue. By George, Anne Kelso Salon and Cissi's Market will occupy space where the old showroom was. 'We're definitely excited. We can't said Katy Culmo, co-owner of By George.

Ralph Barrera AMERICAN-STATESMAN TV networks UPN and WB to merge Upbeat profit reports give stocks a boost McDonald's, United Technologies post strong gains during quarter ASSOCIATED PRESS NEW YORK Stocks rose moderately for a second consecutive session Tuesday on strong earnings at United Technologies Corp. and McDonald's Corp. The day's earnings reports were mostly upbeat, although investor reactions were mixed. United Technologies, Johnson Johnson, McDonald's and 3M Co. all reported higher profits, but shares of Johnson Johnson and 3M fell after analysts showed disappointment with results.

Since earnings season began two weeks ago, stocks have been swinging with each day's announcement as investors react to companies' earnings as well as their outlooks. "Stocks are either going way, way up or way, way down," said Paul McManus, senior vice president and director of research at Independence Investment LLC. "There appear to be more surprises." The Dow Jones industrial average rose 23.45 to 10,712.22. The Standard Poor's 500 index rose 3.04 to 1,266.86, and the Nasdaq composite index rose 16.78, or 0.75 percent, to 2,265.25. McDonald's hit a 5-year intraday high of $36.31 before retreating to $35.85, up 14 cents, after its See EARNINGS, C3 It is unclear whether Austin's KNVA will join the new CW starting this fall By David Ho and Diane Holloway AMERICAN-STATESMAN STAFF NEW YORK The UPN and WB television networks plan to shut down this fall and fuse their programming into a new broadcast network aimed at young audiences that could bring together shows ranging from "Gilmore Girls" to "Smackdown." The new network, called the CW, will be an equal partnership between CBS which owns UPN, and Warner Bros.

Entertainment, which owns the WB, executives of those companies said Tuesday. Warner Bros, is a division of Time Warner Inc. The network is expected to reach about half the country on 16 stations owned by Tribune a current minority investor in the WB, and 11 UPN affiliates in major markets. A selection of other current UPN and WB stations would carry the network to most of the country's remaining viewers. It's unclear whether Austin's WB station KNVA will become a new CW station.

The closest UPN station is KBEJ in Fredericksburg, which is part of the San A Dow Jones 23.45 10,712.22 0.22 A Nasdaq 16-78 2,265.25 0.75 A 304 1,266.86 0.24 Bebeto Matthews assi tatei ruiiss Leslie Moonves, president and CEO of CBS which owns UPN, announces the creation of the CW network Tuesday. The CW will be a partnership between CBS and Warner Bros. Entertainment, which owns the WB. Antonio TV market. "We're excited about the possibilities, but I can't tell you 'we're in' because we don't now exactly what See TV, back page Dividends, C2 Stocks, C4-5 For updated stock quotes, go to statesman.combusiness..