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A roundup of the latest high-tech news from The Associated Press:
• Jittery market gives cool welcome to QuinStreet
NEW YORK — In a worrisome sign for initial public offerings, investors are giving QuinStreet a tepid reception.
The Foster City, Calif. company, which competes with Google and Yahoo to sell pay-per-click online advertising, expected to price 10 million shares between $17 and $19 each but settled for $15, resulting in proceeds of about $140 million after expenses.
QuinStreet Corp. has more than doubled its sales since 2005. Analysts expect growth to continue.
• Motorola says will split in two in early 2011
NEW YORK – Struggling technology company Motorola Inc. said Thursday it plans to split in two in early 2011 – with one half containing its consumer-focused mobile phone and television set-top box products, and the other holding divisions that target business customers.
The split will give current shareholders a share in each new company, which will be roughly the same size in terms of annual revenue at $11 billion. Both halves will be publicly traded.
The move gives the company’s two co-CEOs, Sanjay Jha and Greg Brown, separate companies to run. Jha will concentrate on Motorola’s entertainment and consumer-oriented devices, including smart phones like the Droid, and Brown on high-tech business solutions.
"We believe this configuration is cleaner and more compelling for customers and investors," Brown said in an interview. "We do anticipate that both business segments will have positive operating cash flow moving forward."
The move is a change from plans the company announced in late 2008 to spin off only its handset unit by the third quarter of 2009. It put that plan on hold as the recession deepened and sales deteriorated.
The current separation is planned for the first quarter of 2011.
Motorola, based in Schaumburg, Ill., rode high for a few years after introducing the wildly popular Razr flip phone in 2005, but as the phone’s popularity faltered, the company struggled to develop a worthy successor and losses piled up in its cell-phone division.
Two newer phones based on Google Inc.’s Android operating system, the Cliq and the Droid, have been well received, and Motorola said it shipped 2 million units in the fourth quarter. Motorola’s Android-based Devour will go on sale in March through Verizon Wireless.
Motorola plans to launch 20 smart phones this year alone.
• Google rebuts DOJ objections to digital book deal
NEW YORK – Google will try to win court approval of a deal that would give it the digital rights to millions of books, despite legal concerns raised by the Justice Department.
The Internet search leader set the stage for the showdown with a Thursday court filing defending a complex settlement with U.S. authors and publishers.
The documents include a rebuttal to the Justice Department’s belief that the settlement would thwart competition in the book market and undermine copyright law.
Google revised the agreement in November in an attempt to win the Justice Department’s support, only to have the nation’s top law enforcement agency reiterate its opposition last week.
The dispute is scheduled for a Feb. 18 court hearing.
• Alcatel-Lucent makes small 4th quarter profit
PARIS — Telecommunications equipment maker Alcatel-Lucent SA on Thursday reported a small net profit for the fourth quarter as one-off gains helped offset a 20 percent drop in revenue.
Paris-based Alcatel-Lucent made a net profit of euro46 million ($63 million) in the fourth quarter, compared to a euro3.9 billion net loss a year earlier, when earnings were hammered by charges to write down assets due to what it called "the drastic deterioration of the global economic outlook."
In a statement, Alcatel-Lucent said the economic environment "appears to be stabilizing" and that it expects its markets to recover in 2010.
Alcatel-Lucent’s fourth quarter profit was the result of one-off gains on a change in how it accounts for a post-retirement benefit plan, as well as a euro99 million capital gain on the sale of one of its non-core businesses.
Alcatel-Lucent said revenue fell 19.9 percent in the three months to Dec. 31 to euro3.97 billion.