Spectrum stock plummets on doubts about royalties
Article Abstract:
Spectrum Information Technologies Inc's stock plunges $5.75, to $6 in Nasdaq trading on May 20, 1993. The company's volatility is a result of a New York Times report that suggested that Spectrum's estimate of hundreds of millions of dollars in royalties from a deal with AT&T is a 'gross exaggeration.' On May 11, it was announced that AT&T will license Spectrum's patents for transmitting computer data over cellular telephones. The announcement caused Spectrum's stocks to rise seven points, to $11.75, within the next seven days. Insider trading, however, revealed that private investors in the know were selling millions of shares. On May 20, 35 million shares were traded, the highest volume in Nasdaq history. Spectrum CEO Peter Caserta says his estimate of 'hundreds of millions' in royalties covered a seven-year period and is based on AT&T figures.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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Unisys in $207 million deal to sell Timeplex subsidiary
Article Abstract:
Unisys Corp, the nation's third-largest computer manufacturer, will sell Timplex Inc, a computer networking company. Timeplex will be purchased by a joint venture led by Ascom Holding AG, which is a Swiss Telecommunications and automation company, for $207 million. Unisys will use money from the sale to pay down its debt, which amounted to $3.43 billion at the end of Mar 1991. The company lost $551 million in 1990, on revenues of $10.1 billion, mainly because of interest payments. Unisys's stock was down 37.5 cents on Tuesday, Jun 11, 1991, closing at $3.75.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1991
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