Features

Cisco Systems misses earning expectations by a penny 

SAN JOSE — Cisco Systems Inc. missed Wall Street’s earnings expectations for the first time in 31/2 years despite a nearly 50 percent gain in quarterly profits. 

The world’s top supplier of equipment for the Internet and other computer networks earned $874 million, or 12 cents per share, in its second quarter ended Jan. 27. In the same three-month period a year ago, Cisco earned $816 million, or 11 cents per share. Excluding one-time factors such as acquisitions expenses and research and development costs, Cisco earned $1.33 billion, or 18 cents a share. Analysts were expecting 19 cents per share.  

Fiber-optics company set to sell Nortel Networks subsidiary 

SAN JOSE — Fiber-optics company JDS Uniphase Corp. will sell a Swiss subsidiary to Nortel Networks Corp., satisfying Justice Department concerns over its $18 billion acquisition of rival SDL Inc. 

The two deals are expected to close next week, pending final approval by shareholders, the companies announced Tuesday. 

“We are very excited to be at the end of this process, so we begin to focus on our new combined organization,” said Jozef Straus, chief executive of JDS Uniphase. 

Nortel will pay $2.5 billion in stock for the Swiss operation and up to $500 million more if Nortel’s purchase falls short of targets at the end of 2003.  

U.S. Postal Service faces losses, stamp rate may rise again 

WASHINGTON — Just a month after higher stamp prices took effect the U.S. Postal Service, facing massive losses, is considering another rate boost that could result in higher prices early next year. 

The post office is reportedly facing losses of up to $2 billion this year despite the price increase that took effect Jan. 7, which included raising a first-class stamp a penny to 34 cents. 

— The Associated Press 

While approving that increase, the independent Postal Rate Commission rejected or scaled back several other requested price hikes, cutting expected income by some $1 billion. At the same time, mail volume has dropped because of the poor economy, further reducing anticipated income. 

BOCA RATON, Fla. (AP) — Struggling appliance maker Sunbeam Corp., owner of brands such as Mr. Coffee coffee makers, First Alert smoke alarms and Coleman outdoor gear, on Tuesday filed for Chapter 11 bankruptcy protection to reorganize its operations. 

The filing in U.S. Bankruptcy Court in the Southern District of New York came as Sunbeam was unable to resolve a $2.6 billion debt load. Its troubles were exacerbated by the cost of lawsuits filed by shareholders, whose stock became virtually worthless after the company restated its profits and losses from 1996 to 1998. 

As part of the restructuring, Sunbeam will lose its nine-year listing on the New York Stock Exchange and turn private, chairman and CEO Jerry W. Levin said Tuesday.