Phoenix Technologies Inc saw revenue and income decline slightly in its third quarter as it refocuses on higher growth businesses. San Jose, California-based Phoenix, which provides the BIOS start-up firmware for 70 million PCs annually, saw revenue of $31.3m in its third quarter, down from $31.9m in the same period last year. Net income for the quarter was $3.2m, compared with $3.9m last time.
The figures include $1.2m charges relating to its refocusing, and to the start-up costs related to its new ebetween internet subsidiary, announced last month (CI No 3,687). Without those charges, Phoenix’s net income would have been $4.7m. Further planned charges of $2m, relating to the planned acquisition of Softbank Marketing Solutions Inc were not made, as negotiations with Softbank are still continuing, the company said.
Phoenix originally said it would take charges of up to $9m related to the restructuring. It now says that it will post charges of between $7m and $9m in its fourth quarter, in addition to those already taken. Phoenix merged with its rival Award Software International Inc last year, in the face of increased competition in the BIOS market. Microsoft Corp (from the operating system end) and Intel Corp (from the chipset end) are both interested in appropriating the PC start-up space for their own purposes.
