Faulkner Systems Flash 11/01/00 (fwd)

[Missy Harvey]

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Date: Friday, November 03, 2000, 2:23 PM -0500
From: Faulkner Information Services <mails...@faulknerinfo.com>
To: ???
Subject: Faulkner Systems Flash 11/01/00

Systems &Technology Flash

Copyright 2000, Faulkner Information Services. All Rights Reserved.

Publication Date: November 1, 2000

Preview
Systems &Technology Flash is a biweekly news summary for Faulkner
Subscribers, covering computer systems and software, and vendors. This
flash covers the period October 18, 2000 to November 1, 2000.

Top of the News
Computer Associates and Sybari Software formed an alliance to protect
messaging infrastructures from malicious virus attacks. CA will integrate
Sybari's Antigen groupware product with its own anti-virus technology
combining InoculateIT with VET virus scanning engines.

Mergers/Acquisitions
Deloitte &Touche reported plans to merge with Bacon &Woodrow's Actuarial
and Insurance Consulting.Terms of the deal were not released.

Alliances/Joint Ventures
Algorithmics reported that Arthur Andersen will license and install
Algorithmics' Algo Suite product at seven of its offices.

Andersen Consulting and Moai Technologies entered an agreement to market
Internet negotiation products to companies worldwide. In March 2000, Moai
received funding from AC Ventures, the venture capital unit of Andersen
Consulting.

In other news, Andersen Consulting will use Docent's Enterprise software
platform to support its professional education programs for the firm's
professionals. The agreement is a part of the alliance formed between the
companies to develop employee learning services.

Federated Department Stores, parent of Macy's and Bloomingdale's department
stores, expanded its agreement with America Online. Macy's and
Bloomingdale's will now have anchor tenancies in several Shop@AOL
categories including Department Stores, Home Furnishings &Decor, and
Gourmet Gifts and Entertaining. In addition, they will have placement on
the AOL Welcome screen and have gold tenancy in a number of areas
throughout the Shop@ destinations, including Shop@AOL, Sh...@AOL.COM,
Shop@Netscape, and Shop@CompuServe.

In other news, P&O Princess Cruises and America Online reported a marketing
alliance under which the companies will develop online and offline
programs. The partnership will focus on several initiatives, including
advertising, brand promotion, co-marketing, and exclusive programs. P&O
Princess Cruises will be available across several AOL brands, including
AOL, CompuServe, AOL.COM, Netscape.com, and AOL Digital City. The two
companies will also build a Princess online community center, which will be
customized for Princess Cruises' passengers and enable them to share
stories and information with other passengers who are planning cruises or
who have just returned.

AOL Europe, a unit of America Online, and Banco Santander Central Hispano
reported a joint venture to launch AOL-branded interactive services in
Spain. America Online and BSCH each will acquire 40% of the new joint
venture's equity, and the remaining 20% will be held by investors in
Prodigios Interactivos, an Internet portal under development and backed by
BSCH, Sol Melia and Planeta, and other investors. The Prodigios project
will provide the basis for the first effort by the joint venture, AOL
Avant, a mass-market interactive portal customized to an Internet
appliance, planned for launch by early 2001. Oscar Ruiz, CEO of Prodigios
Interactivos, will serve as CEO of the joint venture.

Ascendant Solutions and PSINet formed an alliance to collaborate on managed
hosting services and joint marketing between the two companies. Under the
agreement, PSINet will provide managed hosting services for Ascendant
Solutions' Omnigy platform operations and Ascendant Solutions will refer
Web hosting customers to PSINet.

Blue Martini and Arthur Andersen formed an alliance, under which Andersen
will deliver Blue Martini's Customer Interaction System to joint customers.
Arthur Andersen has begun to train its consultants on Blue Martini
applications.

BMC Software formed an alliance with Siebel Systems to create PATROL for
Siebel eBusiness Applications. PATROL for Siebel eBusiness Applications
will extend B2B enterprise management to the front office and deliver
availability and optimization of Siebel eBusiness Applications. BMC
Software will help users monitor and manage their e-businesses from the
back office to the front office and across the Internet.

In other news, Brocade Communications Systems and BMC Software entered a
partnership to deliver enhanced storage resource management services for
Brocade-based SANs. BMC Software will develop a PATROL Knowledge Module
(KM) for Brocade SANs, to become an interface to BMC Software storage
resource and network management products for management of Brocade-based
SANs.

Broadbase Software and Perot Systems formed an agreement through which the
firms will provide applications, e-CRM packages, and integration services
to their customers.

Comdisco formed an alliance with German company ZMD Semiconductor to
develop an equipment management program to assist ZMD's.

Computer Sciences and PowerSolutions formed an agreement by which CSC will
license PowerSolutions' technology to PPOM. As part of the five-year, $12
million contract, CSC will host PPOM's Web site.

CoreHarbor and Ariba formed an alliance, in which CoreHarbor will host and
manage Ariba's Marketplace services package.

Corio reported that its first global trading exchange customer, CommodiNet,
is operational. Corio agreed to host the trading exchange, which serves the
B2B electronic marketplace for manufacturers, producers, and trading
companies.

CreditRiskMonitor.com reported the appointment of Arthur Andersen as its
independent auditors.

The Department of State's Office of Foreign Buildings Operations hired Wang
Government Services, a subsidiary of Getronics, to provide IT services.
Under terms of the contract, Wang will provide local network management,
hardware and software asset management, deskside support and maintenance,
e-commerce services, and training.

EasyEverything will offer Microsoft's Office software on a pay-per-use
basis. The cyber café retailer will make the Office 2000 software suite
available in its New York café. The sessions will run for just under $2 per
use.

Ernst &Young has resigned as the independent auditors of Chell Group. The
company is in discussions with prospective successors to the position.

Excite@Home reported a strategic alliance with Radio Shack. Consumers
within the Excite@Home broadband footprint will be able to visit
participating RadioShack stores and purchase a QuickStart installation kit
and cable modem. Using the kit and cable modem, consumers will be able to
connect to Excite@Home's broadband Internet service.

Genuity reported that Ariba and Lante have agreed to become Genuity
ePartners, and will provide services on the firm's Black Rocket network
services platform. The services are targeted at large- and medium-sized
businesses.

Getronics teamed with Applix, in which Getronics will provide system
integration services for Applix's e-business applications. Terms of the
deal were not disclosed.

IBM and Diveo reported undertaking an initiative to begin offering Web
hosting services in Latin America. Terms of the agreement include a
five-year, $120 million contract for Web hosting space and bandwidth to be
offered by IBM to Diveo Internet Data Centers in Sao Paulo, Mexico City,
and Buenos Aires.

KPMG and YOUcentric formed an alliance to jointly market relationship
management software. The firms will work on marketing and sales ventures
together, and KPMG consultants will be trained on YOUcentric software.

Nortel Networks and Hewlett-Packard reported that they will integrate
Nortel's high-bandwidth optical networking technology with HP's Internet
infrastructure for both companies' high-performance Optical Internet data
center. Both companies will create an interoperable framework to reduce
Internet data center bottlenecks, allowing service providers to offer
higher performance content and e-business services.

Four firms reported joining forces to create PerformanceRetail, a provider
of online applications and services targeted at the convenience store
industry. The companies include Tosco, Amerada Hess, Andersen Consulting,
and Retek.

PricewaterhouseCoopers and DBE Software reported in agreement in which PwC
will resell licenses of DB-Examiner, a DBE Software product, to its clients
and customers.

RSA Security teamed with Cisco Systems to deliver security services for
e-business applications and communications. In addition, RSA Security
extended its charter membership in the Cisco Security and VPN Associate
program by including RSA Keon public key infrastructure (PKI) software,
further illustrating RSA's commitment to Cisco's SAFE security blueprint.

Sage Software will offer its Sage MAS 200 accounting software through IBM
Global Services.

SilverStream and Cap Gemini Ernst &Young formed an alliance to deliver and
market e-business packages and services to Global 2000 companies on the
SilverStream eBusiness platform. As part of the agreement, Cap Gemini Ernst
&Young will offer SilverStream products to its customers.

Sinopec and Andersen Consulting signed a letter of intent in which Andersen
Consulting agreed to provide services to Sinopec during the next five
years. The agreement is part of Sinopec's effort to transform its business
and organization to become a leading contender in oil and gas exploration.

TIBCO Software and KPMG formed an alliance to provide infrastructure
services for service providers to deploy multimedia products and services.

WorldByNET.com reported that PSINet will manage its Web hosting operations.
Under terms of the agreement, PSINet will host the company's Web site,
maintain the Web servers, manage database storage, and provide security and
uninterruptible power supply.

Convergence
GoAmerica and EMC reported the opening of the GoAmerica Wireless Internet
Connectivity Center (WICC). The center was built to provide high
performance, reliable, and secure wireless access to mission critical data.
The center allows for rapid data transmission and offers vast data
capacity. Specifically, GoAmerica will deliver secure wireless access to
critical data and e-mail by utilizing EMC's Celerra Enterprise Storage
System.

Micromuse and Sun Microsystems reported that Aether Systems selected the
NETCOOL suite running on the Sun platform for real-time fault management
and service assurance of its wireless data infrastructure. Using
Micromuse's Netcool suite on Sun will ensure that Aether's Network
Operations Center is running at peak efficiency.

Messaging and Groupware
EarthLink launched its E-Mail Protection Agency, or EPA. The EPA's mission
is to filter unsolicited and inappropriate e-mail, including spam and viral
attachments. The cornerstone of its service is the Spaminator, which uses
filtering technology to intercept junk e-mail before it ends up in
subscribers' mailboxes, placing it in a special "Spam Storage Folder" where
subscribers can determine its value. The EPA also supports legislation to
create penalties for spammers and virus writers, and serves as an
educational resource for EarthLink subscribers to learn about spam and how
to prevent unwanted e-mail activity.

CTI/Call Center News
Artisoft launched the TeleVantage CTM Suite, a set of turnkey computer
telephony products for SMBs. Developed on Dialogic's CT Media converged
communications server software, the TeleVantage CTM Suite will be bundled
with the Intel Communications Platform, which includes soft switch, auto
attendant, and voicemail applications that feature traditional phone system
and VoIP capabilities.

Network/Systems Management
BMC Software reported an addition to its Service Level Management (SLM)
called the OnSite Elite designation. Part of the company's OnSite
certification program, OnSite Elite helps companies deliver Service Level
Management via BMC's Service Assurance Center. With the OnSite Elite
designation, businesses can further optimize their e-business applications
as well as their Web site.

BMC Software also unveiled the Pool Advisor for DB2, a service that
collects and analyzes real-time pool usage data. Pool Advisor for DB2 will
be bundled with BMC's OPERTUNE for DB2, MAINVIEW for DB2, and AutoOPERATOR
for MVS. Pool Advisor's overall purpose is to automate performance tuning
and improve overall DB2 performance.

In addition, BMC Software launched CONTROL-D for Distributed Systems, a
suite of products that manages electronic information generated in
distributed systems and mainframe environments. Reports and documents
generated by applications on diverse platforms and systems are delivered to
various destinations such as printers, e-mail addresses, and fax devices.

NetManage launched ViewNow InterDrive Client 7.0. Based on NetManage's
InterDrive NFS technology, ViewNow InterDrive Client 7.0 features security
and support improvements and via Kerberos v5, provides client/server
authentication through 56-bit data encryption.

Security
Symantec unveiled www.Symantec.com/SecurityCheck, an Internet security web
site designed to provide users with information about their individual
Internet security needs. This free web site includes Symantec Security
Check, a web-based tool for evaluating potential online security threats.
After determining whether the PC is susceptible to hackers, viruses, and
privacy threats, Symantec Security Check provides and pinpoints the most
effective and appropriate protection and deterrents.

Symantec also unveiled updated versions of Norton Utilities for Macintosh
and Norton AntiVirus for Macintosh. Norton Utilities for Macintosh 6.0
optimizes performance, solves disk errors, and retrieves lost or
accidentally erased data. Norton AntiVirus for Macintosh 7.0 detects and
repairs infected files to keep personal data safe and secure.

Trend Micro reported that Dutch telecom provider Telfort, a subsidiary of
BT will offer its business customers an antivirus service based on Trend
Micro's InterScan VirusWall technology. Telfort will also provide its
customers with e-mail content filtering based on Trend Micro's eManager
technology, which is used to filter all inbound and outbound SMTP
communications.

Financial News
America Online reported the results for its fiscal first quarter ended
September 30, 2000. Net income was $350 million, or $0.14 per share, up
from $182 million, or $0.07 per share for the year-ago quarter. Revenues
were $2 billion, up from $1.5 billion in the year-ago quarter.

Ariba reported its financial results for its fiscal fourth quarter. Revenue
increased to $134.9 million from $17.1 million from fourth quarter fiscal
1999, and the company posted a total net loss of $339.3 million, or $1.50 a
share, compared with a net loss of $9.9 million, or seven cents a share, in
the year-earlier period.

In other financial news, Ariba became a traded commodity on the Nasdaq 100
Index, effective Friday, October 27, 2000. Shares of Ariba will also be
included in the Nasdaq-100 Tracking Stock. Ariba is replacing NTL
Incorporated, which is delisting from the Nasdaq Stock Market.

BMC Software reported second quarter 2001 revenues of $323.0 million, a 22
percent decrease from $415.7 in revenues last year. The company reported a
net loss of $12.5 million, or $0.05 per share, compared with a net loss of
$58.9 million, or $.23 per share, a year ago. BMC blames it decline in
revenues on customer reluctance over large enterprise license transactions.

Computer Associates reported second quarter 2001 revenues of $1.681
billion, an increase of 5 percent over the $1.605 billion reported last
year. Net income was $138 million, compared with $334 million last year.
The company reported diluted earnings per share of $0.54, compared with
$0.75 a year ago.

Corio reported for its third quarter ended September 30, 2000 revenues of
$13.8 million, an increase of 33 percent over revenues from the prior
quarter ended June 30, 2000. For the third quarter, the company posted a
net loss of $23.2 million, or $1.14 per share.

The EDS board of directors declared a dividend on the common stock of EDS
of 15 cents per share, payable Dec. 11, 2000, to shareholders of record as
of the close of business Nov. 13, 2000.

Electronic Data Systems reported that third quarter earnings rose eight
percent, but revenue was flat. Net income was $278.7 million, or $0.59 per
share, compared to net income of $158.2 million, and $0.32 per share, for
the same quarter fiscal 1999. Revenue for the quarter was $4.75 billion,
from $4.71 billion during the year-ago quarter.

Entrust posted third quarter 2000 revenues of $42.2 million, compared with
revenues of 22.6 million a year before. The company reported a net income
of $28.8 million, or $0.46 per diluted share, compared with a net loss of
$2.0 million, or $0.04 per diluted share, for the same period a year ago.

ePresence reported third quarter 2000 revenues of $22.7 million, compared
with revenues of $12.2 million a year ago. The company reported a net loss
of $1.8 million, or $0.08 per diluted share, compared with a net loss of
$985,000, or $0.04 per diluted share, a year ago. These results indicate
ePresence's continued success in their e-services business.

KPMG reported its financial results for the year ended June 30, 2000. The
firm saw a 17 percent annual revenue increase to $12.2 billion from $10.4
billion for fiscal 1998. The company recorded net income of $1.3 billion, a
25 percent increase over 1998 results.

Financial results from marchFIRST were short of analysts expectations, with
supplemental net income for its third quarter ended September 30, 2000
reaching $2 million, or $0.01 per diluted share. Analysts had predicted
results in the range of $0.20 per diluted share. marchFIRST reported a net
loss of $436.7 million, or $2.86 per diluted share, compared to a net gain
of $9 million, or $0.14 per diluted share for the year-ago quarter,

Micromuse posted fourth quarter 2000 revenues of $41.1 million, compared
with revenues of $19.2 million a year ago, an increase of 114 percent. Net
loss was reported at $5.4 million, or $0.13 per diluted share, compared
with a net loss of $2.1 million, or $0.06 per diluted share, a year ago.
Micromuse attributes its soaring revenues to the wide acceptance of the
Netcool Suite among network service providers.

Network Associates reported third quarter 2000 revenues of $226.2 million,
a 20 percent increase over last year's $188.4 million. The company reported
a net income of $39.8 million, or $0.27 per diluted share, compared with a
net income of $20.3 million, or $0.13 per diluted share a year ago.

Symantec reported second quarter 2001 revenues of $192.3 million, compared
with revenues of $169.2 million a year ago, an increase of 14 percent. Net
income was $45.8 million, or $0.72 per diluted share, compared with $31.2
million last year, an overall increase of 47 percent. The significant
increase in revenues resulted from the fast market growth of Symantec's
enterprise anti-virus products.

Tellabs reported third quarter 2000 revenues of $870.6 million, up 46.2
percent from last year's $595.4 million revenues. The company reported a
net income of $210.4 million, a 48.9 percent increase from last year's net
income of $141.2 million. Diluted earnings per share were $0.50, compares
with diluted earnings per share of $0.34 last year.

USinternetworking reported its financial results for the quarter ended
September 30, 2000. Revenue for the third quarter of $28.3 million
represents a 189% increase compared to the same period for 1999, and an 8%
increase over the previous quarter. EBITDA loss for the quarter improved to
$18.0 million, and the net loss amounted to $47.8 million or $0.49 per
share.

Legal News
marchFIRST is being sued by Wolf Haldenstein Adler Freeman &Herz LLP, on
behalf of purchasers of marchFIRST securities during the period between
July 25, 2000 and October 23, 2000. The lawsuit claims that marchFIRST
issued false and misleading statements which unlawfully inflated the price
of the securities.

Paradyne reported the law firm of Plaintiff, Barrack, Rodos &Bacine filed a
class action suit against persons who purchased its securities. Barrack,
stated that the defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, issuing stock that artificially inflated
the price of Paradyne common stock.

Personnel and Organizational Changes
American Management Systems reported the appointment, on an interim basis,
of William M. Purdy as chief executive officer and president. The company
is still searching for a permanent CEO, after Paul A. Brands reported that
he would retire from the posts in January 2001.

Andersen Consulting reported that it will change its name to Accenture,
effective January 1, 2001. The name change is a result of the arbitration
decision that split the company from parent firm Andersen Worldwide, in
which Andersen Consulting was separated for $1 billion, and gave up rights
to the Andersen name.

America Online reported that Joseph A. Ripp, executive vice president and
chief financial officer of Time Warner, has been named chief financial
officer of AOL, following completion of the planned merger between AOL and
Time Warner.

America Online Latin America appointed Osvaldo Setuain to the position of
President and Chief Executive Officer of AOL Argentina.

Hewlett-Packard appointed Richard DeMillo as chief technology officer,
whereby he will oversee the HP Technology Counsel and help set the
company's technology agenda and conduct periodic technology audits. In
addition, Stephen Squires was named chief science officer to investigate
long-term strategic scientific and technical directions.

marchFIRST promoted Steven Pollema to Executive Vice President, Global
Business Development, effective immediately.

by: Kay Townes
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