Computer Services Industry California

Milpitas-based Storage Dimensions Inc. said it will buy larger Artecon Inc. for about $60 million in stock, with Artecon's president, James Lambert, replacing David Eeg as chief executive. Separately, Storage Dimensions, a seller of tape drives and other computer data storage devices, said it expects to report a fourth-quarter loss of 10 cents to 15 cents a share on revenue of $16.5 million to $17.5 million.

The latest round of venture capital financing has created a new crop of Southland technology and Internet companies to watch. Venture money continued to flow freely to area companies in recent months, even as the stock market's gyrations raised questions about the ultimate payoff from many venture bets. Data reported last week by the National Venture Capital Assn. showed that Southern California companies attracted $1.

RSA Data Security, a unit of Bedford, Mass.-based Security Dynamics Inc., is expected to announce today a deal with Cable Television Labs to make future cable services, including high-speed Internet access, more secure. A spokeswoman for Redwood City-based RSA said the encryption software company plans to announce a pact with Cable Television Labs, in which RSA will provide a new security infrastructure for cable-TV systems operators.

After Gemstar International Group shares hit a 52-week intra-day high Thursday, some on Wall Street are speculating that the Pasadena company may be close to striking a deal with America Online. Gemstar makes technology for interactive TV program guides, and it has already attracted the attention of such media heavyweights as Microsoft and NBC. Gemstar's shares rose as high as $80.50 in Nasdaq trading before closing at $78.44, up $3.19 for a 4% gain and a record high close.

The latest round of venture capital financing has created a new crop of Southland technology and Internet companies to watch. Venture money continued to flow freely to area companies in recent months, even as the stock market's gyrations raised questions about the ultimate payoff from many venture bets. Data reported last week by the National Venture Capital Assn. showed that Southern California companies attracted $1.

Symantec Corp., one of the leading makers of software that detects computer bugs, agreed to buy Intel Corp.'s antivirus business for $18 million in cash. Symantec plans to meld its Norton AntiVirus technology with an antivirus system Intel has been developing for the last year. As part of the transaction, Intel will recommend Norton AntiVirus products to corporate customers and market them through its distributors.

Verity Inc. sued Lotus Development Corp., now a unit of IBM Corp., charging that Lotus misappropriated trade secrets under a 1992 computer software licensing agreement. At the same time, it said it was terminating the agreement because of Lotus' actions. Sunnyvale-based Verity develops and markets software tools for searching and retrieving information on computer databases and the Internet. Cambridge, Mass.

Cisco Systems Inc. said it agreed to buy Precept Software Inc., whose products distribute video through computer networks, for $84 million in stock. The acquisition will help Cisco, the world's biggest maker of computer-networking gear, gain more expertise in sending video and voice conversations between computers, the company said. It is Cisco's second acquisition in two days. On Tuesday, it said it agreed to buy networking equipment vendor NetSpeed for $236 million.

After Gemstar International Group shares hit a 52-week intra-day high Thursday, some on Wall Street are speculating that the Pasadena company may be close to striking a deal with America Online. Gemstar makes technology for interactive TV program guides, and it has already attracted the attention of such media heavyweights as Microsoft and NBC. Gemstar's shares rose as high as $80.50 in Nasdaq trading before closing at $78.44, up $3.19 for a 4% gain and a record high close.

Micromuse Inc., a computer consultant to telecommunications and Internet service providers, filed for a $31-million initial public offering of an unspecified stake in the San Francisco-based company. The price and number of common shares weren't disclosed in the filing with the Securities and Exchange Commission. The value of the transaction was estimated to calculate the filing fee.

Symantec Corp., the maker of the popular software utilities Norton AntiVirus and Norton Utilities, said Thursday that it agreed to buy rival Quarterdeck Corp. for about $65 million, including the assumption of debt. Under the deal announced after the market closed, Cupertino-based Symantec would offer 52 cents for each Quarterdeck share. The deal has been approved by the boards of both companies, but is still subject to the tender of a majority of Quarterdeck's shares.

Symantec Corp., one of the leading makers of software that detects computer bugs, agreed to buy Intel Corp.'s antivirus business for $18 million in cash. Symantec plans to meld its Norton AntiVirus technology with an antivirus system Intel has been developing for the last year. As part of the transaction, Intel will recommend Norton AntiVirus products to corporate customers and market them through its distributors.

Worldwide sales of storage management software, the sophisticated programs that big companies use to squirrel away data in huge computers, will soar to $4.8 billion by 2002, from about $2 billion in 1997, San Jose market researcher Dataquest said. The increasing importance of databases to manufacturing and marketing operations is creating a boom for software that automatically backs up data and maintains file systems. Sales of such software rose 46% in 1997 to $1.33 billion.

Verity Inc. sued Lotus Development Corp., now a unit of IBM Corp., charging that Lotus misappropriated trade secrets under a 1992 computer software licensing agreement. At the same time, it said it was terminating the agreement because of Lotus' actions. Sunnyvale-based Verity develops and markets software tools for searching and retrieving information on computer databases and the Internet. Cambridge, Mass.

Cisco Systems Inc. said it agreed to buy Precept Software Inc., whose products distribute video through computer networks, for $84 million in stock. The acquisition will help Cisco, the world's biggest maker of computer-networking gear, gain more expertise in sending video and voice conversations between computers, the company said. It is Cisco's second acquisition in two days. On Tuesday, it said it agreed to buy networking equipment vendor NetSpeed for $236 million.

Siebel Systems Inc. said it agreed to buy Scopus Technology Inc. for $461.3 million in stock, a move that would create the biggest vendor of sales-management and customer-service software. Under terms of the transaction, Siebel would pay 0.36405 of its shares for each of Scopus' 21 million shares outstanding. San Mateo-based Siebel writes software that helps corporate sales teams find prospective clients and manage big sales projects.

Worldwide sales of storage management software, the sophisticated programs that big companies use to squirrel away data in huge computers, will soar to $4.8 billion by 2002, from about $2 billion in 1997, San Jose market researcher Dataquest said. The increasing importance of databases to manufacturing and marketing operations is creating a boom for software that automatically backs up data and maintains file systems. Sales of such software rose 46% in 1997 to $1.33 billion.

Siebel Systems Inc. said it agreed to buy Scopus Technology Inc. for $461.3 million in stock, a move that would create the biggest vendor of sales-management and customer-service software. Under terms of the transaction, Siebel would pay 0.36405 of its shares for each of Scopus' 21 million shares outstanding. San Mateo-based Siebel writes software that helps corporate sales teams find prospective clients and manage big sales projects.

RSA Data Security, a unit of Bedford, Mass.-based Security Dynamics Inc., is expected to announce today a deal with Cable Television Labs to make future cable services, including high-speed Internet access, more secure. A spokeswoman for Redwood City-based RSA said the encryption software company plans to announce a pact with Cable Television Labs, in which RSA will provide a new security infrastructure for cable-TV systems operators.

Milpitas-based Storage Dimensions Inc. said it will buy larger Artecon Inc. for about $60 million in stock, with Artecon's president, James Lambert, replacing David Eeg as chief executive. Separately, Storage Dimensions, a seller of tape drives and other computer data storage devices, said it expects to report a fourth-quarter loss of 10 cents to 15 cents a share on revenue of $16.5 million to $17.5 million.