Santa Cruz Sentinel from Santa Cruz, California • Page 38

David Pacini, business reporter, 429-2463 Rainmaker slows its losses market FLAG IS Jan. 24, 2001 10,646.97 Dow Jones Industrials Standard Poors 500 3.90 About Rainmaker Systems What Outsource provider of Internet-enabled sales and marketing services for hightech companies. Specializing in selling and marketing support, -services contracts, software subscriptions and training offerings. Bacttpound: Founded in 1991 by Michael Silton. Went public in November 1999.

Stock Closed Wednesday at $2.81, up 0.25, Customers: 3Com, Santa Cruz Operation, Novell, Hewlett-Packard and Motorola. Headquartero: 1800 Green Hills Road, Scotts Valley Information: Web site: www.rmkr.com; email: phone 4303800 or (800) 631- -1545; fax: 4398679. Leadership: Michael Silton, chief executive officer; Martin Hernandez, executive vice president and chief operating officer. Revenue: $59.4 million in 2000, $60.7 million 1999. 1364.30 2.859.15' Nasdaq By JENNIFER POTMAN SENTINEL CORRESPONDENT SCOTTS VALLEY After a difficult year of layoffs, management changes and a business strategy makeover, Rainmaker Systems executives announced continued losses Wednesday for the fourth quarter of fiscal 2000.

In a conference call with investors and analysts, however, executives stressed losses per share were down from last quarter and that, despite a soft technology market, the company is on track to be profitable by the end of 2001. Rainmaker reported fourth-quarter revenues of $12.8 million compared with $14.3 million in the third quarter and $18.6 million in the fourth quarter 1999. Net loss for the fourth quarter was $4.4 million. The company reported net losses of $4.9 million in the third quarter and $2.7 million, or 10 cents a share in the fourth quarter 1999. At an 11-cent per share loss in fourth quarter 2000, losses were two cents better than during the third quarter 2000.

Michael Silton, chief executive officer, described the year 2000 as a transition period. A year ago, Rainmaker shares were trading above $16, yet the stock hasn't climbed above $3 since July. In June, the company announced layoffs and accelerated its plan to profitability. The company had 235 employees at the end of 1999; it has about 199 now. The company also has ended several significant but less profitable client relationships including contracts with Gateway Inprise Corp.

(now known as Borland), Intuit Micrografx Inc. and Symantec Corp. The change resulted in lower quarterly revenues, but Silton said it strengthens the company overall. "Our objective is to have a solid base of consistent revenue from which to track our revenue growth going forward as we bring on new clients and expand our existing client relationships," Silton said, The company announced an expanded relationship with Hewlett-Packard division to sell and renew support agreements to select customers. The company bought and retired 870,000 shares of its common stock in open market transactions totaling $1.2 million during the fourth quarter.

The company expects revenue from new and continuing clients to grow 25-30 percent and be in the range of million. The challenge, however, will be making a profit while their clients put the brakes on spending. Silton called it an opportunity. Outsourcing, or hiring a company to handle a particular task, such as sales, is one of the options companies likely will consider this year, he said. The company expects a loss per share in the first quarter 2001 of 12-13 cents and consecutive quarterly improvements throughout the year.

Russell 2000 502.25 County Bar fund-raiser, set in March siasnes in jjvjr jp3iiL positions mJi irhfefe I 1 tj Jjr The Associated Press Big contributor reaps big energy returns WASHINGTON One of the biggest beneficiaries of the California power crisis is a Texas energy conglomerate that more than any other single company has helped bankroll President Bush's political career. Enron Corp. of Houston has reaped giant revenue increases from California's power shortages and higher natural gas prices nationwide. The new president's rejection of price controls to hold down soaring electricity costs in the Golden State benefits Enron, the largest wholesaler of electricity nd largest owner of natural gas pipe-lines in North America. Enron and its employees gave $113,800 to Bush's presidential campaign, his 10th most generous contributor $250,000 to the Republican National Convention host committee; and $300,000 to the Inauguration Committee.

Mad cow fears drive McDonald's profits down CHICAGO Europeans' wariness of beef during a mad cow disease scare combined with a weak euro send McDonald's otherwise healthy quarterly profits lower for the first time since 1998. Shares in McDonald's Corp. fell 6 percent on the unexpected earnings dip, and on its CEO's warning of a "very challenging" quarter ahead due in part to beef fears in Europe, where McDonald's has nearly 5,500 restaurants. The beef flap didn't stop the world's largest restaurant company from posting strong sales and earnings, but it was enough to snap its 2'i-year streak of increasingly higher profits. Stock prices unchanged as investors wait and see Investors refrained from making any big commitments on Wall Street Wednesday, leaving stocks little changed as the market tried to discern a trend in earnings and the economy.

Blue chips fluctuated amid a series of bleak profit reports and forecasts. Tech stocks fared better but struggled to stay in positive territory. The Dow Jones industrial average closed slightly lower, down 2.84 at 10,646.97, and the Nasdaq composite index rose 18.76 to 2,859.15. stocks or LOCAL I VI'L KST By ERICA KLARREICH SENTINEL STAFF WRITER SANTA CRUZ The Santa Cruz County Bar Association and other legal organizations are sponsoring a fund-raising event March 10 for the Santa Cruz County Law Library. The library, founded in 1896, is open to the public.

It offers a free reference service to find information on legal matters and public computers with software for court forms. For a fee, it sends books to a home or office, gets books through interlibrary loans and does research in online legal and public record databases. The library's collection includes Santa Cruz county ordinances, California and federal statutes and tax forms. The library gets 75 percent of its funds from civil lawsuit fees. The remaining 25 percent comes from photocopies, fee services and donations.

At present, the library has one-and-a-half librarian positions, said Pat Pfremmer, the law librarian. "We're way understaffed and a little frantic," she said. The library also is staffed by several part-time volunteers. The fund-raising event will include appetizers, a buffet, a silent auction, casino-style games, a raffle and a live auction. Admission is $35, and for an additional $20, a guest can be the dealer at a blackjack table.

The association is seeking donations of items for the silent auction. A woman walks into Lucent headquarters Wednesday in Boston, where executives announced a 13 percent cut in a worldwide workforce of 123,000 in a bid to cut $2 billion a year in operating costs. By LINDA A. JOHNSON THE ASSOCIATED PRESS TRENTON, N.J. Lucent Technologies is cutting up to 16,000 jobs in a drastic bid to restore the communications equipment maker to former glories after a year of blunders, including another disappointing profit report on Wednesday.

The decision to reduce Lucent's worldwide work force of 123,000 by up to 13 percent is the main thrust of a plan to slash $2 billion a year in operating costs. Lucent detailed the widely expected reorganization as it revealed a $1.02 billion loss for the final three months of 2000, the sixth time in a year the former unit has come up shy of public forecasts. The latest humiliation may mean the worst is over for the company, which had been a Wall Street favorite since its spinoff four years ago. The timing, just as the Internet boom was taking But after four years of lightning expansion and soaring stock prices, Lucent's fortunes took a sudden nosedive as the company severely misjudged the market for fiber-optic network equipment. Early last year, Lucent shocked analysts by warning it would miss its earnings target, partly because competitor Nortel Networks had beaten it to market with faster optical telecommunications equipment.

The warnings continued throughout 2000, promoting the ouster of chairman and chief executive Richard McGinn in October. off, was impeccable for a company already blessed with big-name customers like and the cutting-edge technology of the famed Bell Labs research unit. Since distributed Lucent shares to its broad base of traditionally conservative stockholders, Lucent was the first taste, maybe the only taste, of the fast-paced technology market for millions of investors. After the spinoff, Lucent bought up dozens of telecommunications and software companies to broaden its business, mushrooming into 11 units. "We allowed the extraordinary expectations generated by Wall Street to set goals for us that we could not meet," said Henry Schacht, Lucent's new chairman and chief executive.

"We tried to run the company too hot." The downsizing plan calls for 10,000 positions to be eliminated, mostly through layoffs, some through retirements and normal attrition. In addition, up to 6,000 jobs may be lost as part of a plan to sell some factory operations in Oklahoma and Ohio to other companies and then hire those companies as contractors. What and where Law library location: Government'' Center, 701 Ocean St, Room 70. Hours: Monday through Friday, 8 a.m.-5 p.m. Information: 457-2525 or librarianlawlibrary.org.

Fundraiser: 6 p.m., March 10, Cocoanut Grove Ballroom, 400 The Original California $iOT Wear this pin Wear this phi Wear this pin Wear this pin if you want to if you want to if you want to date if you're already date a man date a woman a man or a woman dating someone 1 Q) Q) CP a cd ca NEW YORK STOCK EXCHANGE Fixed Rates to $275,000 30-Yr 6.250 6.504 apr IS-Yr 6.125 6.304 apr Fixed Rates to $650,000 30-Yr 6.875 7. 1 75 apr I5-Yr 6.750 7.071 apr I -Hour Approval (831)439-9875 plannertmortgage.com Dan CoyroSentinel photos Dennis Norton and Clay Olsen, right, created these pins to send loud and clear signals about whether you want to date, and what kind of partner you're looking for. Jewelry helps pin down dating availability V--- i Real Estate Broker- CA DeDt. of Real Fctat-A Dly VTD Name Ply PE Lmt Chg Chl Cotncnc 1.76 13 59.50 1 19 2 DeanFd .90 11 33.50 9.2 DowJna 1.00 34 56 69 58 3 6 Golchk 14 4.50 .19 9.1 GraniteC .40 23 32.63 12.7 IBM .52 26 11044 1.38 299 LockhdM 44 32 00 Nokia .19 38 08 Ponnoy .50 12 81 .31 17.8 Plantrons 35 53 56 83 14.0 SBC Com 1.02 19 47 38 Sjlsway 24 61 81 -17 1 Taxlnsts 09 43 50 -1 50 -8 2 WolSFrgo 98 22 60 19 .56 -9 9 Wrigley 1.52 30 8781 -8 3 NASDAQ Dly YTO Name Dlv PE Uwl Chi Ch ApptoC 10 20.50 37.8 CfilrlCsl 1.75 15 18 13 1 4 Cisco 99 42 56 11.3 GltiBays .40 29 38 00 50 Intel .08 28 36 25 88 20 6 MonlBB 15 1131 .06 6.8 NaviSrle a 4 00 70 8 Novoll 55 8 31 19 59 3 Odwalla 23 997 .09 1.0 PacCap 88 15 29.00 .13 3.1 PumaTs 10.50 .26152.8 Aalnmki 2 81 .25126.0 SanlCll 2,44 .09 90.3 Veritas 104.08 18.9 WslMar 8 4.75 15 2 PLANNERS 7" mortgage License 01047196 SENTINEL STAFF REPORT Two local men have come up with what they say is an easy way for single people to let others know they're interested in dating or not. It's called The Original California Dating Pin and it comes in the form of a half-inch heart The 14-karat gold-plated pins come in four colors, depending on the wearer's dating status.

There's blue for those who are interested in dating men, and pink for those interested in dating women. There's also a half-blue and half-pink pin for those interested in dating men or women, and even a white pin for those who already are dating someone. The inventors of the pins, Clay Olson and Dennis Nelson, say they hope it will catch on and make it easier for single people to know whom to approach. Both men said they have had the experience of approaching women they hoped to date and were turned down in unduly harsh ways. "I've gotten snapped at around here," said Nelson.

"I think it's a tough area for single men." Olson agrees. "We're starting a club, basically," he said. "I hope it'll become a cultural icon, like a wedding ring." The men have approached local stores with the $5.99 pins and also plan to explore selling them on the Internet. More information can be found at the Web site www.jps.netbittersweetcal-iforniadatingpins.html or by calling 459-8100. 21-ffOLR IiVFORiTl.t TIODI SERVICE Updates every 20 minutes up to stock closing Daily highs lows Volume Period ending ratios To use (he Sentinel NcwiLine Stock Quote Service, call 423-NEWS (6397) from a TOUCHTONE phone and enter selection 1100.

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For special issues like preferred warrants the stock symbol may include a period or slash. The period is 1-3 and the slash is W. To expedite your stock request, please enter the asterisk key after your stock quote. SPOT school offers computer classes Things Work Out Best For Those Who Make The Best Out Of The Wav Things, Work Out Translation Chan -v A2I B22 C23 D3I E32 F33 G4I H42 143 J5I KM L53 M61 N62 063 P71 Qll R72 S73 T81 U82 V83 VC91 X92 V93 ZI2 0I .32. To idea 7" prm and I (for warrann ami classes) To tried press 0 and 2 (for preferred To select press 0 and 3 (ocher special character).

Find out why Life's Good A Call Joe Cricchlo SENTINEL STAFF REPORT WATSONVILLE Classes have started at a new branch of the SPOT Computer Software Training School. school offers eight-week courses covering a wide range of computer skills, including Web design, word processing and desktop publishing. One course is a general proficiency program that prepares students with no computer background for an office job. It can be followed by a program in computer office management. TSPOT also offerstfralning In com puter and software repairs for people who want to become computer technicians.

"For every kind of job these days, people need computer skills," said Roger Buschegger, marketing director for the school. The school, which offers classes in English and Spanish, is at 595 Auto Center Drive. Another branch is In Capitola at 2121 41st Ave. For more information, call 768-1825 or visit www.thespofJnc.com. t.

Following each stock quote, additional information may be requested by pressing the asterisk Santa CruzSentine ta Cruz Semi rOlltltC CMIIUC IIICI IIC MZM Ltrgtsl Miction OfPn-Ownei Vthicttt With Warranty 4100 Auto Plan Dr. Capitola 475-3500 Santa Cruz Sentinel www.san tacruzsentinel.com1?.