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TECH TICKER

Computing

Strong sales lift Dell earnings past forecast

Dell Computer said Friday that surprisingly strong consumer sales will lift fourth-quarter earnings past Wall Street forecasts.

Dell, the world's leading maker of personal computers, said sales to consumers in the quarter ending Feb. 1 will grow 50 percent over the previous three months.

That will push total sales, including those to business customers, to $8 billion, Dell said. Analysts had expected $7.6 billion in sales for the quarter.

The boost in sales will lead to quarterly earnings of 17 cents a share, Dell said. Analysts surveyed by Thomson Financial/First Call had forecast 16 cents a share.

FINANCING

Montreal start-up secures $43 million

Montreal's Hyperchip, a start-up building a router to compete with Cisco Systems and Juniper Networks, said it has secured $43 million in a fourth round of financing, bringing the total amount raised to about $130 million.

Lead investor TechnoCap was joined by Vertex Technology Fund, Advent International, Optical Capital Group, JT Ventures, Artemis and Pilgrim Baxter.

This round includes a $31 million loan from Investissement-Quebec. The new funding will help support Hyperchip as it continues trials with international carriers that might deploy its router.

semiconductors

Micron to pay cash, stock for plant

Micron Technology will pay Toshiba $250 million in cash plus 1.5 million shares of Micron stock for a memory-chip plant in Virginia, according to a document filed with the Securities and Exchange Commission.

If Micron were to build from scratch a facility similar to the 600,000-square-foot Dominion Semiconductor fabrication plant, it would cost five to 10 times The companies signed a memorandum of understanding Dec. 18. No terms were not disclosed until the SEC filing this week. The deal is expected to close in the first quarter of this year.

layoffs

Nextel to slash jobs at service centers

Nextel Communications said it will lay off some of its 1,700 employees at two customer-service centers that will be closed because of a $1.2 billion outsourcing contract with International Business Machines and TeleTech Holdings.

Nextel and IBM on Thursday announced the eight-year alliance, which is designed to cut Nextel's costs by $1 billion. As part of the agreement, IBM hired TeleTech to manage Nextel's six customer- service centers.

holiday

U.S. markets to close for King holiday

Financial markets in the United States will be closed Monday in observance of Martin Luther King Jr. Day. Overseas markets will be open.

From Mercury News staff, the Associated Press and Bloomberg News

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