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What the papers say

Paul Donovan
Wednesday 11 July 2001 10:49


Rooney quits Baltimore as price slumps
All the papers report the resignation of Fran Rooney, the chief executive of Baltimore Technologies, the Internet security software company. The Guardian recalls that the resignation comes less than a week after Rooney said, "the last thing I would do is walk away from this challenge." The move comes after two profit warnings and a major restructuring programme. Rooney, who owns 6.7 million shares in the business, will be replaced as chief executive by Paul Sanders, the finance director.

Judge eases Bulger risk for web firms
The Financial Times is alone in not giving prominence to the judge who ruled that Internet Service Providers cannot be held responsible if pictures of James Bulger's killers appear on the web, as long as they have taken "all reasonable steps" to avoid publication. The court action was brought by Demon, which feared being held in contempt of court if the pictures appeared.

Marconi faces strike and legal action
All the papers report that Marconi workers have threatened to strike, while the shareholders have launched a legal action over the company's recent profit warning. Some 500 of the 1,600 job losses in the UK are to come in Coventry and Liverpool with another 115 in Chelmsford, Cambridge and Nottingham. The legal threat comes in a class action that is being launched by US investors over the profits warning.
 
Orbital loses chief executive after profit warning
The Financial Times and Daily Telegraph report that Orbital Software, the Internet company, has lost its chief executive and issued a profit warning. The Financial Times reports that Kevin Dorren, the co-founder and chief executive, resigned after a trading statement revealed a fall in sales during the first quarter. Sales dropped to just £140,000 compared to £402,000 in the preceding three months.
 
Surfcontrol issues upbeat statement
The Financial Times and Times report that Surfcontrol, which provides software to monitor and filter Internet use, issued an upbeat trading statement. The fact that an upbeat statement gains such coverage is really a reflection of how dire the news is at the moment in the technology sector - anything that is not doom and gloom is good news.
 
Hutchinson signs Motorola deal
The Financial Times and Times report that Motorola, the US telecommunications and semiconductor group, has signed a $700m deal with Hong Kong's Hutchinson Whampoa to supply 3G wireless devices. Motorola expects to be delivering 3G handsets in the third quarter of 2002.
 
Best of the rest

The Financial Times reports:
Compaq sales for the second quarter were lower than expected and the company will be taking a $490m extraordinary charge.

John Malone, the veteran media investor, has resigned from the board of AT&T after the company shrugged aside a $41bn bid from cable operator Comcast.

Terence Chapman, the IT consultancy that specialises in financial software integration, issued a profits warning and announced that it is cutting 10% of its workforce.