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Business Briefs

Reported by Star-Bulletin staff & wire

Monday, January 8, 2001

Verizon says quarter, full year on target

NEW YORK -- Verizon Communications Inc., the No. 1 U.S. local telephone company, said today it met or exceeded its operating targets for the fourth quarter and the full-year 2000 and expressed confidence it would accelerate its growth in 2001.

New York-based Verizon, the parent company of Verizon Hawaii (formerly known as GTE Hawaiian Tel), said it ended 2000 with about 540,000 DSL (digital subscriber line) high-speed Internet subscribers, exceeding its year-end target of 500,000. Its total data revenues for 2000 were about $6.2 billion. Verizon will announce its fourth-quarter and full- year financial results for 2000 on Feb. 1.

Shares of Verizon closed up 8 cents today at $54.25 on the New York Stock Exchange.

Broadcom expands with $1.9 billion deal

IRVINE, Calif. -- Broadcom Corp., the largest maker of chips for cable modems, agreed to buy ServerWorks Corp., a maker of chips for computers that run Web sites and corporate networks, for as much as about $1.87 billion in stock.

Broadcom will issue about 11 million shares for all common shares of closely held ServerWorks, valued at $1.03 billion based on today's closing price. Broadcom said it could issue about 9 million more shares if the Santa Clara, Calif.-based company meets certain performance goals.

Broadcom is seeking to boost its line of chips used in computer networking gear. The company's shares have lost about two-thirds of their value since touching a 52-week high of $274.75 on Aug. 25 because customers have not bought fast Internet access or cable service with hundreds of channels as quickly as hoped.

The shares of Irvine, Calif.-based Broadcom closed up $6.44, or 7.4 percent, to $93.44 today on the Nasdaq.

In other news . . .

Bullet PITTSBURGH -- Fourth-quarter earnings at aluminum giant Alcoa Inc. jumped 17 percent, helped by cost-cutting measures and recent acquisitions. Net income was $392 millionr, or 45 cents per share, three cents better than analysts' expectations.

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