Troubling issues in a Silicon Valley spy case

Article Abstract:

Former computer engineer and Advanced Micro Devices employee Guillermo 'Bill' Gaede's 33-month jail sentence for stealing Intel trade secrets indicates that espionage is a growing and dangerous problem in the Silicon Valley. Gaede stole Intel microprocessor data valued up to $20 million and allegedly sold that information to Iran, China, Cuba and other foreign governments. Gaede's and the FBI's role in the case is convoluted but neither party denies that espionage will continue to plague the computer industry. Computer industry espionage is characterized by the FBI attempting to capture foreign agents, companies striving to enhance their security and employees fighting the temptation to steal and sell information. These conflicting goals often ensure that subsequent investigations do not proceed in a logical and orderly manner.

Microcomputers, Laws, regulations and rules, Espionage, Litigation, Investigations, Theft of Information, Investigation, Lawsuit/Litigation

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I.B.M. reports that its net fell 13% in first quarter: drop largely a result of PC pricing battle

Article Abstract:

IBM's reported 1st qtr 1998 earnings of $1.036 billion, or $1.06 a diluted share, represents a 13% decline. The results barely surpassed analysts' lowered projections of $1.05 a share. Sales improved by 1.8% over 1997, to $17.6 billion, but that figure would have been 6% if not for the increased value of the dollar overseas. Much of the setback stems from large PC makers' intense price reductions amid a glut of machines on the market, in addition to unusual expenses. IBM sales to dealers rose 11% over 1st qtr 1997, compared to dealers' PC sales that leaped 35% over the same period. Hardware revenue slipped 8%, to $7.1 billion, while software revenue rose 2%, to $3 billion. Service business revenues, meanwhile, surged 22%, to $5 billion.

Finance, Company sales/revenue, Company sales and earnings, Company earnings/profit

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IBM contends with a scandal in Argentina

Article Abstract:

Accusations that IBM used bribery in order to win a $250 million contract with Argentina's state-owned Banco de la Nacion may have been the result of political infighting among Argentinian government officials. Bribery is a commonplace business practice in Argentina, and enforcement of anti-bribery laws is unusual. Because of this, some see the case as an attempt on behalf of Pres Carlos Saul Menem to discredit popular Argentinian Finance Minister Domingo Cavallo. The contract involved modernizing the national bank's computer system and was valued at $250 million. The story has been front-page news in Argentina for six months, and IBM has taken out full-page ads to defend its public image. Both companies have replaced top management.

Management, Political aspects, Corruption investigation, Public opinion, Bribery, Company Business Management

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