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***On-Line Avatar 98 Conference Coming on 21 November (November 9)
On November 21, 1998, Avatars '98 begin as a global online conference taking place over the net and linked to 35 physical locations around the globe:
http://www.ccon.org/conf98/index.html
Using 3D software downloadable for free on the Internet, people from all parts of the world will be able to partake in this 3D cyber-conference using a modem connection to the internet.
Avatars '98 produced by DigitalSpace Corporation in cooperation with the Contact Consortium will be complete with exhibits, speakers, educational and entertainment experiments, art shows, awards, and a debut of new technologies not seen before on the net.
The Preview Exhibit Hall is at:
http://www.ccon.org/conf98/exhibit.html
For a sample of what you will look like as an Avatar:
http://www.ccon.org/conf98/whatsnew.html
Physical participating locations & institutions worldwide:
http://www.ccon.org/conf98/f2flocations.html
You will need to download Active Worlds Software to participate:
http://www.activeworlds.com/The Contact Consortium is the first global organization focused on inhabited virtual spaces on the Internet. The Consortium is a non-profit entity that consists of a broad membership of corporations, institutions and individuals working to ensure that a "cyberspace beyond the web document" will emerge as a powerful place to learn, play, work and interact in the 21st Century.
ExpoWorld.net is a metasite, a directory of directories and search engine linking to over 500 event-related Search Tools serving the events and international trade community worldwide.
***3Dfx Gets Voodoo Banshee Win From Gateway (November 9)
3Dfx announced that Gateway is now including Voodoo Banshee in select Gateway G- and GP-Series desktop computers.
***Macromedia Announces Dreamweaver
2
(November 9)
Macromedia announced Dreamweaver 2, its professional Web authoring environment.
Macromedia also announced that Dreamweaver 2 is integrated with solutions from other companies, including BroadVision, Oracle Corporation, and Real Networks.
Dreamweaver 2 will be available standalone or in a Web Essentials bundle with Fireworks.The new features in Dreamweaver 2
· advanced table support, live Flash and Shockwave playback, and Dream Templates for team authoring
· designers have a visual rendering of server-side content within a Web authoring environment.
· developers can manage design and content across an site with site management features.
· designers can use Dream Templates' to specify which sections of a site can be edited by content contributors, while maintaining design consistency across a site.
· there is site-wide search and replace of text, HTML source, and attributes within HTML tags which enables users to manage global changes.
· users can insert an image to use as a guide while designing pages, enabling production artists to go from a Fireworks or Photoshop comp to a finished HTML page.
· the program allows pixel-precise positioning of elements on an HTML page, with conversion of layers to tables for compatibility with 3.0 browsers.
· table editing features provide designers control and formatting options.
· designers can now also view Macromedia Flash, Macromedia Shockwave, and other plug-in content live.
· there is support Roundtrip XML.Dreamweaver 2 will be available in December 1998 for an estimated street price of US $299 (U.S. and Canada) for Windows 95/98, Windows NT 4.0 or later, and MacOS 7.5.5 or later. Registered users of prior versions of Dreamweaver may upgrade to Dreamweaver 2 for US $129 (U.S. and Canada). Customers who order the Dreamweaver 2 full version or upgrade can add Macromedia Fireworks, the premiere production tool for creating Web graphics, for US $99 (U.S. and Canada) as part of the Web Essentials bundle through February 28, 1999.
http://www.dreamweaver.com
http://www.macromedia.com
http://www.shockrave.com.
***Toshiba and Kingston Ship First Toshiba Direct Rambus RIMM Modules to Dell (November9)
Toshiba America Electronic Components and Kingston Technology announced the first shipment of Toshiba's Direct Rambus RIMM modules to Dell Computer Corporation.
Toshiba produced the Direct Rambus devices used on the RIMM modules at its Yokkaichi fab in Japan. These were shipped directly to Kingston's Asia-Pacific Manufacturing Center in Taiwan and to Kingston's Americas Manufacturing Center in California to complete the module manufacturing process.
Kingston worked with its Printed Circuit Board (PCB) suppliers to re-engineer their PCB manufacturing processes and process controls to achieve high yields of Direct Rambus specification-compliant PCBs. Direct Rambus RIMM module PCBs must meet tight impedance specifications, in order to allow PCs to reach the maximum peak bandwidth of 1.6GB per second. The joint effort to achieve high PCB yields by mid-1999 will quickly ramp down the additional costs associated with these new PCBs. Kingston is also developing an infrastructure to mass produce RIMM modules.
***E&S Cuts Deal with Synthonics on 3D Models (November 9)
Evans & Sutherland Computer announced that it has reached a licensing agreement with Synthonics Technologies. Under the agreement, Synthonics' proprietary Rapid Virtual Reality software will be integrated into E&S software and hardware products to improve the generation of 3D models for desktop visualization, simulation, and mission planning.
***E&S Buys IKOS for 3D Emulation
(November 9)
IKOS Systems announced that Evans & Sutherland Computer has signed a $1.3 million purchase agreement for IKOS' emulation solutions and consulting services. E&S will use IKOS products to verify its next-generation high-performance desktop graphics products.
E&S stated it is committed to at least two new REALimage designs each year. E&S's Desktop Graphics Group purchased IKOS' VirtuaLogic emulator; upgrades to next generation emulators; Virtual Image and Virtual PCI, VirtualAGP application-specific emulation solutions that are targeted toward multimedia/graphics controllers, AGP and PCI-based designs; and access to IKOS' consulting services organization.
***TeraLogic Announces Next Generation Digital TV Reference Platform (November 9)
TeraLogic announced the Cougar Digital Television Reference Platform. This is designed to give OEMs a time-to-market advantage in developing next generation digital TVs, set-tops and DTV/PC systems. Organizations, component and set-top box manufacturers and software and PC graphics suppliers have worked with TeraLogic on the development of the Cougar platform. Among these partners are Sun, General Instrument, NEC, Planetweb, QED and Oren.
The Cougar platform uses the capabilities of TeraLogic's TL850 integrated DTV decoder IC. The TL850 employs approximately ten million transistors to perform all-format decoding (up to 1080I), delivers high-end 2D/3D graphics processing and allows the display of multiple camera angles to add special interest for viewers. The Cougar architecture incorporates hardware, software and peripherals to offer multimedia capabilities, such as interactive data services, e-mail, electronic programming guides, online shopping, Web browsing, animation, and games. The Cougar and TL850 platform complies with U.S. (ATSC) and international (ARIB, DVB) DTV standards, supports the complete range of standard definition (SD) and high definition (HD) DTV and PC display formats and is compatible with a wide range of CPUs and operating systems.
The Cougar development platform and the TL850 intend to comply with the OpenCable specification and will support the vision of advanced, interoperable services. OpenCable is an effort under CableLabs, a research and development consortium of cable television system operators, to specify the next-generation digital devices for the home that will support digital cable services and systems with an open design and well-defined specification to allow interoperability and promote competition among system suppliers.
Selected key features and benefits of Cougar include:
Modular, PCI-based Design using a PC Like Chassis
· The TL850 transport/audio/video/graphics PCI-based card for standalone use with PCs or combined with other Cougar cards for TV-based applications
· MIPS5000 CPU card with floating point performance, 16MB flash, 16MB SDRAM
· Peripheral motherboard (VSB/QAM/QPSK NIM, IEEE 1394, 10/100BaseT Ethernet, parallel, USB, PCMCIA, IR remote and smart cards)
· Empty PCI slot for additional peripheralsAll Format and Multichannel Video and Audio Decoding
· Compliance with all 18 ATSC formats (standard definition and high definition), upcoming DTV standards (ARIB, OpenCable, DVB), and many PC display formats
· MPEG2 MP@HL video/audio decoding for all HDTV formats
· ATSC/DVB/DSS transport decoding
· Up/down conversion to all ATSC and PC display formats with minimal memory
· Capability to decode and display four 480I (SD) channels simultaneously for multiple camera angles or one HD movie and one NTSC (480I) channel simultaneously
· High-performance audio capabilities, including Dolby Digital 5.1 (AC-3), Dolby Pro Logic, Dolby Virtual, MUSICAM and AAC decoding 2D and 3D Graphics and Alpha Blending
· High-performance 32-bit graphics processor is built into the TL850 for creating 3D effects, rendering advanced electronic program guides, data services applications, Web browsing, games, online shopping and banking
· Video scaler, picture-in-picture (PIP), anti-flicker filter
· Fast user interface due to faster response time, capability to perform integration of video and multimedia graphics content and navigation of menu objects
· Up-conversion of traditional NTSC/PAL signal and overlay with HDTV graphicsOpen CPU/Open OS Approach
· "Open architecture" platform allows OEMs to select the most appropriate CPU, PCI-based cards and operating systems for their intended applications/customers
· Hardware/software design optimized for and compliant with next generation APIs, including PersonalJava, Windows CE and VxWorksPackage of Software Resources
· Device drivers, RTOS APIs and application software to demonstrate HD set-top functionality
· ATSC transport demux software (PSIP, PES and A/V)
· Channel navigation application
· Third-party software such as electronic program guides, browsers and e-mail based on Windows CE, PersonalJava and Planetweb APIs.The TeraLogic TL850 is a member of TeraLogic's DTV IC family. On a single chip, the TL850 combines 2D/3D graphics, MPEG-2 MP@HL decoder, DVB/DSS/ATSC transport, up/down conversion between all ATSC DTV and PC formats, and support for 5.1 channel Dolby Digital (AC3), MUSICAM and AAC audio. The TL850 can simultaneously decode and display one HD movie and one NTSC (480I) channel or four 480I channels. In addition, the TL850's two video outputs allow the unique capability of viewing a TV signal in high definition while simultaneously recording a down-converted signal on existing VHS VCRs. The heart of the Cougar DTV platform, the TL850 is designed to be a complete, cost-effective and multi-standard DTV decoding solution with minimal system memory requirements.
For professional DTV equipment, TeraLogic offers the TL855 as its HDTV decoder with 4:2:2 studio-quality video output mode. The TL855 is pin and feature compatible with the TL850.
The Cougar DTV reference platform and TL850 are slated for the end of this year.
***Wearable
Chips Shown
(October 28)
During the European Microelectronics Summit and the Cartes '98 Show in Paris there were several product surprises. One was introduced by the CEO of Philips Semiconductors who stated that, "It was time for the industry to focus on applications and products rather than making faster and more powerful microprocessors."
The company presented garments incorporating chip cards and fibers conductive to very low-voltage electric currents. The smart chip combined the functions of an appliance such as a mobile phone and television decoder, while reducing the size and costs. The cards in the garments differ from traditional cards because they are plastic and use a computer chip instead of magnetic strip. As a result one card can be used as a credit, identity, health, telephone, and entry card.
Examples of uses for Philips' cards were ski wear with built in phone access and satellite navigation devices. Others were built in ski lift passes and tracer chip cards for children in case they get lost.
***Zoran Introduces the "COACH"
(October 26)
Zoran introduces COACH - Camera On A CHip -IC. Zoran's Bit Rate Control (BRC) algorithm provides, fixed size for all compressed image files, thereby allowing a pre-determined number of images per memory card.
The COACH integration enables lower part count and lower power consumption. A power management software module, "SmartPower", is used to disable non activate COACH modules.
COACH offers an USB solution from the hardware module to the USB PC drivers (Win98/WinNT).
The CoachExpress development package translates the desired camera functions, interface and other configurations to a COACH parameter set.The CAM-ON is a fully functional DSC designed jointly by Zoran and ImageLink Inc. - who has successfully designed many digital cameras for leading OEMs. The CAM-ON is a complete DSC reference design which offers a comprehensive DSC feature set including multiple image-quality levels, image sequence recording, audio titling, video capturing and more.
Priced at below $25 in volume quantities, the COACH is now available in sample quantities.
***Silicon Magic Introduces SGRAM Product Line (October 26)
Silicon Magic introduced the SM84L512K32 high-speed synchronous graphics DRAM. This product is organized in a 256K-word by 32-bit by 2-bank configuration, making it suitable for 3D graphics and games applications as well as high-speed communications applications. With clock frequencies initially up to 167 MHz coupled with "CAS Latency 2" performance of 143 MHz and single cycle block write, the SM84L512K32 is a performance part. The company also plans to have a 200 MHz memory chip by year end.
The SM84L512K32 is suited for high-speed 3D graphics applications because it conforms to JEDEC specifications and supports major graphics controllers' functional requirements. Each chip provides bandwidth ranging from 572 MB/sec at 143 MHz to 667 MB/sec at 167 MHz. Command and data are synchronized to the rising edge of the system clock to enable precise control and predictability. A programmable mode register enables the device to be customized for maximum system performance with burst type, burst length and CAS latency. The 8-column block write and write-per-bit modes can also enhance overall system performance.
Product features include:
· Single 3.3 V +/- 0.3 power supply
· Programmable burst type, burst length and CAS latency
· Burst type: sequential and interleave
· Burst length: 1, 2, 4, 8, and full page
· CAS latency: 2 and 3
· Single cycle 8-column Block Write
· Write-per-bit
· LVTTL inputs and outputs
· Byte control by DQM0-DQM3
· Auto precharge
· 2K refresh cycles/32 ms
· Auto and self refresh modesThe SM84L512K32 SGRAM is packaged in a 100-pin plastic LQFP. Samples are available now. Production will ramp in 4Q98. Pricing for the product ranges from $5.00 in quantities of 1000.
***Avid
Ships Symphony
(October 26)
Avid Technology announced that it is now shipping Avid Symphony. This is a Windows NT-based high-end uncompressed nonlinear system for television post-production. With its uncompressed images and the flexibility afforded by a digital process, Symphony is optimized to replace the thousands of linear tape-based suites traditionally used to finish prime-time television projects.
Avid Symphony offers Total Conform, which supports a collaborative environment through strong links to Avid's family of dedicated audio and effects products and to third-party applications. Symphony's user interface contains optimizations for higher-end finishing.
USMSRP pricing for Avid Symphony is $150,000, including software, the Avid Meridien video subsystem, CPU and monitors.
***RadioLAN Joins Bluetooth to Create Wireless LAN/WAN Connectivity Solutions (October 26)
RadioLAN announced that it has joined the Bluetooth Special Interest Group (SIG), founded by industry leaders Ericsson, Intel, IBM, Nokia and Toshiba. Bluetooth technology specifications enable seamless voice and data transmission via wireless short-range radio, providing connectivity for a wide range of mobile devices, including mobile computers, personal digital assistants, and cellular phones, without the use of cables.
Bluetooth operates in the 2.4 Ghz unlicensed band and has a range of less than 10 meters, while RadioLAN's existing products operate in the 5.8 Ghz region over a radius of up to 300 feet.
***General Instrument and Concurrent Computer Agree To Integrate End-to-End Video-On-Demand System (October 29)
Concurrent Computer and General Instrument announced that they have agreed to offer an integrated end-to-end Video-On-Demand (VOD) system based upon the GI interactive digital cable network system, GI digital set-top terminals, and Concurrent's MediaHawk Video Server.
GI is a supplier of interactive digital set-top terminals to the cable industry with over 2 million delivered. GI's digital interactive terminals (the DCT-1000/1200, DCT-2000, and DCT-5000+) offer cable system operators a feature set that includes real-time RF back-channel command and control, MPEG-2 digital video, and Dolby AC3 digital audio. In addition, cable operators can integrate GI's digital set-top terminals with GI's large installed base of analog cable systems. By integrating GI's digital and interactive digital set-top terminals with Concurrent's MediaHawk Video Servers, cable operators can offer their subscribers a wide range of innovative and entertaining applications. These applications include VOD, interactive program guides, Internet access, email, community information services, and electronic commerce applications. GI has deployed digital systems passing over 28 million households in North America.
Concurrent Computer is headquartered in Fort Lauderdale, Florida, is a supplier in the digital video server marketplace.
***Seiko Instruments Introduces Internet-ready Intelligent LCD Modules Based on iReady Technology (October 26)
Seiko Instruments has announced it will integrate the iReady Corporation's Internet Tuner technology into its line of low-power, intelligent, Internet-ready LCD modules, allowing Web browsing, e-mail, and networking to be added to consumer devices easily and inexpensively.
This family of Internet-ready LCD modules allows system designers to add TCP/IP networking or complete Web browsing and e-mail functions quickly, easily, and at a fraction of the cost of traditional, software-based solutions. Adding Internet functionality to these types of devices is now as easy as selecting any other pre-defined component, such as a resistor or controller. This product is made possible by combining iReady's "Internet-on-a-chip" design with SII's low-power, high-function "Chip-on-Film" semiconductor technology. The combination of these technologies results in a line of very thin, light-weight intelligent LCDs, which add Internet functionality, and extend the battery life of power-sensitive devices such as cell phones, pagers, and digital cameras.
SII's intelligent LCD Module product family will include a range of products, from character-based two-line displays to quarter VGA (320 x 240) graphics displays. Two LCD module families will initially be available. These are "Network-Ready" LCD modules with TCP, IP, UDP, and PPP, which are designed for devices such as cellular phones, digital cameras, and printers which require a simple network connection. The second family of full-featured "Internet-Ready" LCD modules are targeted at devices like screen phones, cellular phones, and electronic games which require full Internet capabilities, including e-mail (POP3/SMTP/MIME) and web browsing (http/HTML).
The iReady Internet Tuner module is a semiconductor design, which is licensed in the form of intellectual property and can be easily integrated with other functions of a device. Because the Internet Tuner module is a semiconductor design, rather than software, it is the only Internet solution specifically designed for drop-in manufacturability in high-volume consumer electronics device environments.
The core of the Internet Tuner is a scalable architecture including a set of modules to deliver communications protocols and the rich content of the Internet. The Internet Tuner supports standard and emerging Internet communication protocols and data formats for static media, such as HTML, graphics, and electronic mail. Future generations will support streaming media, including video and telephony, Internet commerce standards, and support for dynamic data via Java.
The Internet Tuner is portable to any manufacturing technology, delivers maximum Internet performance, uses minimal power and system resources and is reusable. It can also be easily integrated into multiple platforms, operating systems, and processors with relative ease, and can significantly reduce the design time of new electronics products.
***Survey Says Net Replaces TV and Reading (October 30)
A survey released by Research International found that 34% of those questioned said their use of the Internet is replacing time spent with the TV. The same percentage said it is taking place of reading. The survey was released at the Business Week/PriceWaterhouseCoopers Global Summit in New York and polled 1,000 American and 963 British consumers on technology and its impact on their lives.
Comparison shopping was cited as the primary reason for people to log onto the Internet. Sixty-seven percent of these users said that most of their net time was spent comparing prices on large purchases like cars and electronic equipment.
Only 36% of those polled actually made purchases on the web although 60% responded that they would spend a greater amount if they felt more secure about privacy issues. Men reportedly spent more online, about $420, while the women polled, chose less expensive items that totaled an average of $120.
***Atlantic Launches INSTAVID Online Video Channel (October 30)
Atlantic Records will launch INSTAVID, a online music video service viewable through RealNetworks RealChannel.
INSTAVID was created by Atlantic and uses the capabilities of RealNetworks RealSystem G2 technology, which enables a presentation of video synchronized with direct links to artist information and online sales. In addition, the INSTAVID G2 player will incorporate a continuously scrolling Atlantic news "ticker," delivering up-to-the-minute information about artist releases, appearances, and tour activities.
The channel marks an expansion of the label's Internet activities. INSTAVID will be included in RealNetworks' RealChannels program, leveraging the distribution of the RealPlayer G2 player. Over eight million have been downloaded in three months.
The Atlantic-owned INSTAVID will feature three distinct music tracks: Pop/Rock; Urban; and the DigitalArena, which will house an eclectic mix of live artist performances and interviews. Most of the DigitalArena material was recorded at Atlantic's recently opened in-house digital. In extending Atlantic's commitment to developing artists online, the DigitalArena menu will feature live performances and interviews from artists including Tori Amos, Duncan Sheik, Hootie & The Blowfish, David Garza, Nicole Renee, Phil Collins, and Twista (of Twista & the Speedknot Mobstaz fame.)
INSTAVID viewers can also look forward to an eclectic mix of exclusive live concert highlights, along with hundreds of new and catalog artist clips (beginning with a library of more than 200), many of them archive gems spanning Atlantic's rich, 50-year musical history.
In addition, Atlantic has partnered with Total E, the online home entertainment store from Columbia House, for the launch of INSTAVID. The relationship offers instant links from artists' video clips directly to their products available for sale through Total E.
Total E will provide INSTAVID via the site's home page during launch, and will provide customers a permanent link to the channel from the Entertainment News page, beginning November 23rd.
***NetGravity and MatchLogic Form Cooperative Alliance (October 26)
NetGravity and MatchLogic have announced a cooperative alliance and technology exchange in order to facilitate interactions between buyers and sellers of online advertising.
Key elements of this alliance:
· NetGravity and MatchLogic have agreed to support a counting methodology that is based on MatchLogic's TrueCount technology. This approach offers comparable metrics for both advertisers and publishers, utilizing a more thorough counting methodology. NetGravity will license and implement TrueCount technology for its ad management solutions, offering its customers a methodology that accounts for caching on the Web.
· MatchLogic and NetGravity have agreed on a common format for media-independent advertising tags for third party ad serving, referred to as "Universal Ad Tag." This will enable consistent delivery and measurement of all types of rich media ads, and ease the cooperation between third-party ad serving and site products.
· MatchLogic and NetGravity announced they are joining together to develop and promote a standard for representing and sharing anonymous consumer profiles for targeted advertising and marketing. The format will include a base set of profile fields known as a "common profile," and will include an API and format to extend and add a wide variety of audience information, known as "common profile extensions." This common profile will enable multiple data providers to easily share and aggregate information.
***MicroScribe 3D provides 3D Digitizing Support for AutoCAD (October 26)
Immersion announced support for Halodeck Reverse Engineering Software for AutoCAD. Halodeck, from HighRES provides a 3D digitizing interface between AutoCAD and MicroScribe 3D. MicroScribe 3D is a hardware tool which allows users to trace over the surface contours of real physical objects and accurately produce realistic models in minutes rather than hours or days.
Combined with Halodeck, MicroScribe 3D now offers advanced 3D digitizing and reverse engineering natively in the AutoCAD environment.
By providing a AutoCAD reverse engineering interface, the MicroScribe 3D/Halodeck solution brings a complete 3D digitizing system directly to the desktop of any AutoCAD user.
Data collection is simplified in AutoCAD by utilizing native creation tools such as points, lines, polylines, or splines. Because all the data is created in AutoCAD, data integrity is maintained.
MicroScribe 3D comes in four models starting at $2995 and provides digitizing solutions for many of today's 3D graphics software programs.
***Global Media Launches Online Licensing Center (October 29)
Global Media Corp. has launched an online information center and is now accepting online licensing applications. The site offers a complete end-to-end licensing opportunity to established web retailers and start-up companies. The site will resemble Geocities and The Globe.com except that the members of the Global Media Network will generate revenue for themselves.
Global Media will provide the licensee with a front end Web site that includes streaming and downloadable media, background music, and entertainment news and information. Global media will administrate the back-end system including the database management allowing businesses to enter the online entertainment distribution market without having to invest the time and capital to develop all the needed infrastructure. The infrastructure will incorporate technologies from Muze, Inc., Baker & Taylor, and Liquid Audio.
***Forrester: PC Industry Revenues to Fall After Peaking in 1999 (October 28)
The PC industry will reach new highs in 1999, led by a surge in corporate purchases to replace aging equipment that could cause year 2000 problems. But corporate spending for PCs will fade in 2000, ending 17 years of industry growth. According to a new Report from Forrester Research, industry revenues will decline and then remain stagnant through 2002 as PC makers slash prices to stimulate new demand and corporate buyers migrate toward Internet appliances.
Forrester expects U.S. PC industry revenues to peak at $55 billion in 1999 as companies buy more PCs than usual to replace their non-Y2K-compliant desktop hardware. But this demand will stall in late 1999, causing corporate PC purchases to decline for the first time in 10 years. This downturn, combined with lagging international sales, will force PC makers to cut prices and look to the consumer market for additional sales. The combination of fewer shipments and declining prices will pin U.S. PC industry revenues at $47 billion in 2000.
After 2000, the PC industry will be reshaped by a new set of market forces. Faced with falling corporate sales, PC makers will fight for market share at the low end by cutting prices further. Companies with 1- and 2-year-old PCs will be reluctant to commit corporate dollars to new upgrades. Instead, two-thirds of companies will focus their new application development to support PCs with browsers and a new generation of Internet-connected appliances. This change in the corporate computing environment will enable IT managers to get more life out of their existing PCs and to gradually replace them with less expensive PC alternatives.
"The PC industry will never regain the $8 billion in corporate sales it loses in 2000," added Howe. "By the time companies complete their year 2000 remediation, a new class of simpler and cheaper Internet appliances will keep the PC market from ever regaining its 1990s glory."
For the Report, "PC Industry Roller Coaster," Forrester spoke with 50 Fortune 1,000 companies about their PC buying requirements and budgets. Nearly half of the companies indicated that they will spend more on PC purchases this year to deal with their year 2000 problems, while nearly 80% will see flat or decreased PC budgets in the next two years.
***Linux Gains Support
(October 27)
Cahners In-Stat Group believes that in the near future the telecommunications industry, vendors and users both, will benefit from an operating system, one they have largely ignored in the past, called Linux. The majority of PC server makers are expected to begin offering Linux on their boxes next year, adding to its market presence.
Linux is one of the fastest evolving operating systems in history and Cahners In-Stat Group expects a flood of new applications to Linux to arrive in 1999.
According to Cahners In-Stat Group, the fact that Microsoft regards Linux as a threat to the continued dominance of Windows indicates the possibility of a major shakeup in the market as well as a possible competitor to Windows NT.
Red Hat Software, which is the largest seller of Linux, is still in its infancy, but is on its way to becoming mainstream as both Intel and Netscape took undisclosed minority stakes in the company in early October. Linux is rapidly gaining popularity in the computer industry and has been largely overlooked in the telecom industry.
***Ziff-Davis Announces Third Quarter Financial Results (October 23)
Ziff-Davis announced financial results for its third quarter and nine months ended September 30, 1998.
Revenue for the most recent quarter was $226.0 million compared to $224.0 million for the third quarter of 1997.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $27.5 million for the third quarter of 1998 compared to $20.5 million in the comparable 1997 quarter. Operating loss for the third quarter of 1998 totaled $14.8 million compared to a loss of $21.6 million in the comparable 1997 period.
The net loss of $4.5 million (or $0.04 per share) for the third quarter was significantly improved versus the $66.6 million (or $0.67 per share) net loss for the same period in 1997. This resulted from the reduced operating loss, significantly lower interest expense and higher tax benefits.
For the nine month period ended September 30, 1998 total revenues were $730.5 million compared to $750.2 million for the same period in 1997. EBITDA was $106.0 million for the nine months of 1998 compared to $114.2 million for 1997. Operating loss for the nine months of 1998 totaled $17.4 million compared to a loss of $11.1 million in the 1997 period. The net loss of $86.2 million (or $0.86 per share) for the nine month period ended September 30, 1998 was significantly improved over the net loss of $143.8 million (or $1.44 per share) for the same period in 1997 as a result of significantly reduced interest expense and increased tax benefits.
In the publishing segment, revenue was $196.2 million for the third quarter of 1998, $3.5 million below the third quarter of 1997. Excluding the net impact of transferring certain publications to or from joint ventures*, publishing segment revenue improved $0.6 million during the third quarter of 1998. Continued softness in revenue from the business publications was offset by improvements for ZDNet, consumer publications and new publications launched in 1998.
Revenue from the Events segment was $29.8 million for the third quarter of 1998, $5.6 million above the third quarter of 1997. This increase as well as the increase in the Company's EBITDA was due largely to the shift in timing of an event, Seybold-San Francisco, which was held in the third quarter this year but in the fourth quarter last year.
Revenue for ZDNet increased 82.7% to $14.8 million for the quarter compared to $8.1 million one-year ago. According to Media Metrix, ZDNet averaged 7.6 million unique visitors a month for the quarter, and zdnet.com has been ranked number one in the news, information and entertainment category for 25 of the last 27 months. Average daily page views for the quarter increased 100% to 5.4 million from 2.7 million for the same period in 1997.
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