NetIQ to buy WebTrends for $US1 billion
Network monitoring software vendor NetIQ announced it will shell out $US1 billion worth of stock to buy WebTrends, best known for products that track and report online behaviour.
The merger creates a company with a market capitalisation of more than $4 billion and a product portfolio that has little overlap. The WebTrends brand name will most likely remain.
WebTrends co-founder and CTO Glen Boyd says the merger has little to do with the recent economic downturn and more to do with the companies seeing an opportunity to grow and profit. WebTrends, founded in 1993, went from $20 million in profits in 1999 to more than $60 million last year, he says.
NetIQ executives say the coupling will help the company expand its Windows-centric offerings to address customers' Web-based management needs.
Nortel meets target for fourth quarter
Nortel Networks met analysts' earnings expectations for the fourth quarter while beating its revenue projections. Nortel reported revenue of $US8.82 billion for the quarter ending December 31, a 34 per cent increase compared with $6.57 billion in the same quarter last year. The company reported net income of $825 million, or $0.26 a share, during the fourth quarter of 2000, a 24 per cent increase over 1999's fourth quarter. Analysts expected earnings per share of $0.26 and revenue of $8.67 billion, according to First Call/Thomson Financial.
Nortel Networks expects revenue growth of 30 per cent in 2001 over 2000 figures, said Frank Dunn, Nortel's chief financial officer, in a statement.
C&W Optus rolls out ADSL service
Cable & Wireless Optus has targeted the SME business market with the launch of a broadband ADSL service.
The carrier and its DSL wholesale subsidiary XYZed is promising businesses high-speed Internet connectivity at a lower cost than ISDN or leased-line options. Dubbed NetAccess ADSL, the service boasts speeds of up to 2Mbps/256Kbs, but will only be available in city and metropolitan areas.
"Most [SMEs] have not had access to fibre connections and have found alternate technology like ISDN or DDS Fastway too expensive, putting them at a competitive disadvantage," said David Stokes-McKeon, director of C&W Optus E-Solutions.
C&W Optus claims that unlike other consumer-focussed ADSL products on the market, NetAccess ADSL has been designed as a "business grade" service. It also comes with a fixed IP address.