TOYSMART.COM SHUTS DOWN: Toysmart.com shut down and was put up for sale after talks to provide more funding failed. Toysmart.com said it stopped taking orders Friday. The Internet toy retailer is majority owned by Walt Disney Co., which acquired the stake in August for an undisclosed sum. Toysmart is the latest Internet toy seller to experience financial problems. On May 5, RedRocket.com ceased business, and Consolidated Stores Inc.'s KBkids.com business fired chief executive Srikant Srinivasan and one-third of its work force earlier this month.
CORNING TO BUY INTELLISENSE SHARES: Corning Inc. agreed to buy the 67 percent of IntelliSense Corp. it doesn't already own for $500-million in stock. IntelliSense makes switching technology used in micro-electro-mechanical systems. The technology helps to improve performance of telecommunications systems to carry more voice, data and Internet services. Corning is the biggest maker of glass used in fiber-optic networks.
PINELLAS TO OPEN MEXICO CITY OFFICE: Pinellas County will open a trade development office in Mexico City on June 7 staffed with two people who will pursue opportunities with Mexican companies. The
office, apparently the first foreign office of its type run by a U.S. county, will open in conjunction with the Pinellas-Mexico Expo Medica/Hospital Trade Mission on June 6-10. The mission will include 12 bay area companies, such as Morton Plant Mease Health Care and Essilor of America Inc.
TIME SHARE COMPANY MAKES JOB CUTS: Sunterra Corp., an owner of time-share vacation resorts, said it will fire about 930 workers at its Orlando headquarters and may not be able to continue operations. Sunterra also said it stopped all sales at resorts in Miami, Fort Lauderdale, Hilton Head, S.C., Lake Conroy, Texas, Steamboat Springs, Colo., Santa Fe, N.M., and other locations. The company said it "continues to pursue alternatives" to remain in business. Sunterra shares rose 6 cents to 56 cents on the New York Stock Exchange. The announcements were made after the close of regular U.S. trading.
TREASURY AUCTION: Interest rates on short-term Treasury securities fell in Monday's auction. The Treasury Department sold $8.5-billion in three-month bills at a discount rate of 5.810 percent, down from 6.065 percent last week. An additional $7.5-billion was sold in six-month bills at a rate of 6.125 percent, down from 6.250 percent. The new discount rates understate the actual return to investors: 5.980 percent for three-month bills and 6.411 percent for a six-month bill. In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills rose to 6.40 percent last week from 6.38 percent the previous week.
Income fell 31 percent in the fiscal quarter ended April 29 because of lower sales. Sales at Dillard's stores open at least a year fell 2 percent from the year-ago period, while sales for the industry rose on average. The Little Rock, Ark., department store chain blamed a late Easter holiday and cool, wet weather across much of the country for dampening demand for spring clothing. Dillard's also said it will buy back as much as $200-million of stock.
1stQtr Year Ago
Revenue $2.15-bil $2.19-bil
Net Income $46.2-mil $66.9-mil
Per Share 48 cents 63 cents
Cumberland Technologies Inc.
The Tampa company reported a 34 percent increase in revenue for the quarter ended March 31. Cumberland provides software to insurance agencies.
1stQtr Year Ago
Revenue $3.46-mil $2.58-mil
Net Income $438,674 $247,382
Per Share 8 cents 5 cents