Santa Cruz Sentinel from Santa Cruz, California • Page 25

Sunday, Dec. 26, 1993 I Slocks, Pages 3-5 3 Classified, Page 5 a 'Every time Santa Cruz is in the paper we do a little sales pitch about Santa Lars Turndal, SCO chief executive I MM I Public notice, public offering changed company OPEN SYSTEMS SOFTWAR ffes- --fes said. Later, documents filed with the Securities and Exchange Commission revealed that Michels was well-compensated for his move. He will receive $200,000 annually plus expenses until June. The lawsuit was settled out of court in April, the day SCO filed papers for its long-awaited public offering.

In the interim, Lars Turndal, SCO's head of European operations, took the helm as president and CEO. Longtime boardmember Frank Guadette, who had guided Microsoft Corp. as chief financial officer, died in April. Guadette's role was key in helping SCO grow from a start-up to a mature company. Another Microsoft alumnus, Jim Harris, died in July.

Harris, a board member since 1987, stepped the forefront after Michels' resignation to guide the company through the crisis and toward its stock offering. He remained chairman after Turndal was named president and CEO. More lawsuits followed, charging harassment and leniency regarding drug use. A second complaint against Michels and other executives was dismissed last month. SCO remains a defendant.

Harris' death, coming less than two months after SCO went public in June, raised eyebrows in the investment community. The stock, which opened at $12.50, has lingered around half that price. It closed Thursday at $6,125. And finally, two top executives have decided to move on. Chief Financial Officer Dan Steimle will stay around as a consultant until a replacement is found.

Sam Spada-fora, senior vice president for worldwide field operations, left for a Los Gatos startup this month. Turndal, in looking back at the year and particularly the public stock offering, said the company will gain more attention because it ing. SCO recognized it could take advantage of the training users already had and help them shift their applications to the more powerful functions of Unix. SCO begins 1994 looking down the road, down the much-vaunted information superhighway. Turndal and Hancock think the company is in a good position to take advantage of a growing demand for ways to navigate the highway that promises to link consumers through cable, telephones and computers with a vast resource of information.

The Internet that links tens of SCO executives answer questions during last summer's forum at UC Santa Cruz. From left, David Hancock, Michael Tilson, Lars Turndal, Sam Spadafora, Scott McGregor and Doug Michels. Bill LoveioySentinel file thousands of sites and millions of users has been run on the Unix operating system, SCO's specialty. "We believe we will be one of the world leaders in making that happen," Hancock said last week. The highway will depend on "distributed computing," where applications will be distributed across many computers in different locations, all connected via networks instead of being centralized.

In a message to SCO's worldwide staff, Turndal said the company's mission is "to be the leading provider of systems software for distributed computing." "Bill" Franke. The $250 million surpasses the $150 million to $200 million America West officials have been saying they need to finish the 2 'A -year Chapter 11 reorganization effort. America West reported profits in each of the first three quarters of this year for a total of $26.8 million. Other than rival Southwest, America West was the first major airline to show a profit this But the Steinhardt offer also comes amid reported infighting between Franke and Michael Conway, America West's president and, until Franke organized a $53 million loan for the company, its chairman. The now-abandoned $150 million proposal had been put forward by a partnership of Chicago's Pritzker family, who own the Hyatt hotel chain, and New York investment firm Wertheim Schroder Co.

That group pulled out Tuesday without explanation. By GUY LASNIER Sentinel business editor SANTA CRUZ The Santa Cruz Operation garnered widespread attention in 1993, enough to make it business newsmaker of the year. The homegrown software developer with 800 employees at its Santa Cruz headquarters relished some of the public notice. Other parts made the company cringe. As it looks ahead, SCO hopes to make a bigger splash with plans to help pave the information super highway that promises to tie the world together in ways yet to be imagined.

Executives also hope to attract international attention to SCO's namesake town and county. A year ago, SCO was poised to make a breakthrough after 14 sometimes shaky years as a local start-up. By the end of September 1992, SCO had posted its first fiscal year in the black, with an $8.5 million profit. Sales were continuing to climb. Its core product line, a Unix operating system for Intel-based personal computers, was getting wider acceptance in the marketplace.

Things were looking good. A long-anticipated public offering seemed just around the corner. Then came the first of several blows. In December, three executive secretaries, then a fourth, accused co-founder Larry Michels of sexual harassment. Two weeks later, Michels was gone.

He stepped aside to deflect damage from the company, he People in DAVID WATTS, president and chief executive of Granite Construction Co. of Watsonville, has been elected to the board of the California Chamber of Commerce. His three-year term begins Jan. 1. Watts, 55, joined Granite Construction in 1987 as president and CEO after serving as president and CEO of Ford, Bacon Davis, a Texas industrial engineering company.

He is a board member of the Monterey Ray Area Council of the Boy Scouts of America and the Nationwide Public Projects Coalition. MATTHEW HOUGARDY has joined Financial Resource Associates Inc. as a registered representative of the National Association of Securities Dealers. He has five years experience in the financial and insurance field and has resided in Santa Cruz for more than 25 years. ANDREW SPARKS has been recognized for completing 10 years as a United Parcel Service driver without an accident.

He works out of the Santa Cruz center and provides service in Santa Cruz. He lives in Soquel with his wife Peggy Jean and daughter Jean. RHONDA HOWARD joined Cellular One of Santa Cruz County as customer care manager. Previously she was with McCaw Cellular Communications Foreclosure Debbie Neil ml hit. 4 to Offer for America West could reach $250 million is publically traded.

That can cut both ways, as the past year has shown. "On the positive side," said Turndal, we can see we slowly get more attention from the press." That gives SCO more credibility in the marketplace, he said. And because Santa Cruz is the company's name, Surf City gets some spin-off publicity. "Everytime Santa Cruz Operation is in the paper we do a little sales pitch about Santa Cruz," Turndal said. The Swedish native Turndal is making his mark.

SCO is expand Sparks Howard al estate agent with Star Properties, was given the Community Service Award by the Santa Cruz Association of Realtors. LYNN COKER was one of 18 agents named to the Realtor's Champion Producer's Circle for having the highest number of sales in Santa Cruz County from November 1992 through October 1993. The Associated Press PHOENIX America West Airlines says a $250 million bid demonstrates investor confidence in the carrier days after another potential buyer walked away from a $150 million deal. America West's managers have been touting the company as. an attractive investment, citing its recent profits despite a languishing bankruptcy organization effort.

New York money manager Michael Steinhardt offered Thursday to pump in $250 million cash to bring America West out of bankruptcy court in return for 80 percent control of the company. Officials at The Steinhardt Group didn't respond to requests Friday for comment on the offer, which was reported late Thursday by America West. "It's a reflection of the turnaround of the company," said America West Chairman W.A. -j I i tl 1 b. ing its international presence.

It is pushing into Latin American markets and is wrapping up a joint venture deal with a major Japanese company. One of the biggest events for SCO this year was the release of software that makes the company's Unix products "Windows friendly," meaning computers users familiar with the Windows operating interface can be working in Unix but won't need to be trained in the complex system. "Two billion dollars a year are spent on training," said David Hancock, vice president of market LeBlanc Coker People in business publishes notices of career moves, awards and accomplishments. I'lease direct submissions to the fiusiness Editor, Santa Cruz Sentinel, P.O. Box 638, Santa Cruz, Calif.

95061. Fax, 429-9(120. Items may be edited. Photographs returned in a self-addressed stamped envelope. Suzanne Mann Manager PURCHASEOR REFINANCE Residential Commercial Land 9055 Soquel Drive Suite Licensed with CA DUE 426-8000 business Watts of Sacramento.

Hougardy DONNA NUTILE has been named product marketing manager at TGV a Santa Cruz software developer. Nutile spent nine years at Digital Equipment Corp. in marketing and software engineering positions. ERNEST LEBLANC has joined Commercial Pacific Bank of Santa Cruz as vice president and senior SBA loan officer, where he will be responsible for developing the bank's new SBA loan department. LeBlanc has more than 20 years experience in SBA loans and is the co-author of "SUA Loans, An Expert's Guide." CANDACE DAUPHINOT, a re Assistance Mary Saccullo 1 '4 ir II mmum As Give yourself a present.

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