If local business news is any indication, it’s easy to understand the wild ride the stock market has taken these recent weeks.

It’s been hard to make predictions for the rest of 2002, because local companies are sending and receiving mixed messages, and the recent earnings announcements from many local companies continued that trend.

US LEC posted higher revenue despite its write-off of WorldCom; Salix reported soaring revenue but increased losses; Embrex coasted with flat sales and profits; Pharmanetics lost $2.4 million in 2Q; Inveresk revenues were up, as they were for CT Communications; Cree reported a $22.5 million loss in its fiscal fourth quarter; S1 reported a loss of $5.6 million, which was an improvement over the $43.6 million loss it reported a year ago; and Pozen reported a $6.6 million loss, an increase from a year ago.

The venture industry seems to be equally fickle. While Silicon Valley Bank’s deals picked up on a national level, local opportunities produced 12 deals for the RTP branch. Investment bankers are closing their doors in Atlanta, but in the first seven months of the year, 36 Georgia-based companies closed on an average of $10 million in venture capital. North Carolina is lagging in venture capital deals, but Charlotte-based Mentor Capital opened its doors to provide angel funding to southeastern companies, and 35 tech companies in N.C. have attracted $200 million in venture capital so far this year.

The good news is that through July, high-tech companies in the Carolinas and Georgia have pulled in $566 million in more than 70 deals. The bad news is Level 8 and Sense Technologies are fighting Nasdaq delisting, upcoming layoffs are planned at CommScope, JDS Uniphase was forced to sell Cronos for $9 million, a staggering drop from the $565 million it paid for the company, and rumors of Equitel possibly fililng for bankruptcy are circulating.

Even within individual companies, the highs and lows are being experienced simultaneously. For example, Incara, facing its delisting from Nasdaq, also received approval from the FDA to move ahead with its liver treatment trials.

What a week …


“I used to say we wanted to be the next Enron, but we changed that and now want to be like eBay.”- Bob Young, founder of Red Hat and Lulu Enterprises, talking about his new company, Lulu Enterprises

“I say creativity is 1 percent inspiration and 99 percent theft, and I define theft very liberally as anything you’ve learned from someone else.” – Bob Young, founder of Red Hat.

“When we have a major market run-up, the big firms come in and open up
regional offices. As soon as the markets tank, those are the first ones to leave.” – Tom Avery, head of tech investment banking at Raymond James.

“If you have highs everyday and you want something to work so badly, you hit lows pretty intensely as well.” – Former Red Hat spokesperson Melissa London


August 2: Troubled JDS Uniphase Sells Cronos for Fraction of Origial Price www.localtechwire.com/article.cfm?u=1533&k=05&l=23

July 31: e-NC Awards Grants to NC Counties to Boost Internet Access www.localtechwire.com/article.cfm?u=1514&k=03&l=21

July 31: LVL7 Lands Deal With Intel, Closes in on $10M Funding Round www.localtechwire.com/article.cfm?u=1515&k=03&l=21

July 31: Bad Investments Cause Cree’s 4Q Loss www.localtechwire.com/article.cfm?u=1512&k=31&l=21

July 30: On the Job Less Than Three Months, Mary Walker Resigns as Equitel CEO www.localtechwire.com/article.cfm?u=1506

July 30: US LEC Posts Higher Revenue Despite WorldCom Writeoff www.localtechwire.com/article.cfm?u=1507

July 30: CT Communications Revenue Up www.localtechwire.com/article.cfm?u=1494&k=30&l=20

July 30: Wachovia Uses EMC To Consolidate Colossal Amount of Data from First Union Merger www.localtechwire.com/article.cfm?u=1499&k=02&l=20

July 29: CommScope Plans Layoffs www.localtechwire.com/article.cfm?u=1484

July 29: Israeli Government Invests in Atlanta Networking Firm www.localtechwire.com/article.cfm?u=1488

July 29: Bluetooth Technology Makes Gadgetry Seem Simpler www.localtechwire.com/article.cfm?u=1478&k=01&l=19


August 2: Experts Predict More Consolidation Is Coming in Biotech

August 1: Pozen Gets Approval To Accelerate Testing of Migraine Drug www.localtechwire.com/article.cfm?u=1531&k=04&l=22

August 1: German Company Geneart Opens Office in Eastern NC www.localtechwire.com/article.cfm?u=1529&k=01&l=22

July 31: Quintiles to Market Women’s Health Care Products for Columbia Labs www.localtechwire.com/article.cfm?u=1522

July 31: Triangle Pharma Splits With Abbott, To Market HIV Drugs Itself www.localtechwire.com/article.cfm?u=1519

July 30: At Analytica, Data Mining Solves Problems at Molecular Level www.localtechwire.com/article.cfm?u=1516&k=03&l=21

July 30: Inveresk Says Revenues Are Up www.localtechwire.com/article.cfm?u=1498&k=30&l=20

July 30: PharmaNetics Loses $2.4M in 2Q www.localtechwire.com/article.cfm?u=1501&k=30&l=20

July 30: Embrex Sales, Profits Flat www.localtechwire.com/article.cfm?u=1502&k=30&l=20

July 30: Revenue Soars, Losses Mount for Salix www.localtechwire.com/article.cfm?u=1503&k=30&l=20

July 29: Report: Merix Bioscience CEO Resigns, Clinical Trials Delayed www.localtechwire.com/article.cfm?u=1468&k=01&l=19


July 29: Georgia’s Been on Investors’ Minds www.localtechwire.com/article.cfm?u=1490

July 29: Not So Well Heeled: VC Deals Lag in NC www.localtechwire.com/article.cfm?u=1491

July 29: Doin’ Deals: Southeast Firms Continue to Rake in Venture Cash www.localtechwire.com/article.cfm?u=1492

July 29: VC Profile: Mentor Capital Goes After Seed Investments www.localtechwire.com/article.cfm?u=1477&k=01&l=19


July 31: Saying ‘Red Hat Left Me’, Young Pulls Off Real Lulu With 2

July 31: Red Hat Memories: Former Chief Spokesperson Remembers the Feeling – ‘Kinda Like Religion’ www.localtechwire.com/article.cfm?u=1517&k=03&l=21

July 29: Growing Up at Red Hat – Hatter’s Spokesperson Remembers Crazy Days www.localtechwire.com/article.cfm?u=1500&k=30&l=20


August 2: MediaSpan Adds to Management Team by Creating CTO, CFO

July 30: Alliance Technology Ventures Names a New Partner www.localtechwire.com/article.cfm?u=1495&k=02&l=20


July 29: Level 8 Notified of Potential Nasdaq Delisting www.localtechwire.com/article.cfm?u=1489


July 31: Delisting Move Costs Sense Technologies $4M Investment www.localtechwire.com/article.cfm?u=1510&k=31&l=21

July 29: Here Today, Gone Tomorrow: Investment Bankers Flee Atlanta