Silicon Valley Wire

South San Francisco-Based Proteolix Raises $45 Million in Second Round

South San Francisco -- Proteolix, a South San Francisco-based biopharmaceutical firm, said on Wednesday that it has raised $45 million in its second round of funding, which the company plans to use to expand clinical trials and further develop its pipeline. Delphi Ventures led the round, which also included participation from previous investors U.S. Venture Partners, Advanced Technology Ventures, Latterell Venture Partners and The Vertical Group. Proteolix is developing products to treat cancer and immune diseases based on new insights into the way in which cellular protein turnover controls cancer growth and immune responses. The company has now raised more than $63 million over the past three years.
http://www.proteolix.com/news.html

Mountain View-Based Encover Raises $8 Million in Third Round

Mountain View, Calif. -- Encover, a Mountain View-based developer of software designed to help manufacturers maximize revenue from the sale of service contracts and maintenance agreements, said on Wednesday that it has raised $8 million in its third round of venture capital funding. Chicago-based Baird Venture Partners (BVP) led the round, with participation from previous investors Sigma Partners and DCM -- Doll Capital Management. Encover, which more than doubled its revenue in 2005, said that the round will help it to continue ramping its business. Clients include Xerox, Kodak, Juniper Networks and Enterasys Networks.
http://www.encover.com/press_20060531.php

Menlo Park-Based Krugle Raises $6.1 Million in Second Round

Menlo Park, Calif. -- Krugle, a Menlo Park-based search engine for developers, said on Wednesday that it has secured $6.1 million in its second round of funding, led by Rustic Canyon Partners.  First round investors Emergence Capital Partners, First Round Capital and Omidyar Network also participated. Krugle is the developer of a specialized search engine designed to give professional programmers access to source code and technical information they need to build applications. The company also provides a workspace where programmers can work independently or collaboratively by sharing search results and annotations with peers. Steve Larsen, the CEO of Krugle, said that the new capital will allow the company to  accelerate its development efforts.
http://corp.krugle.com
http://biz.yahoo.com/bw/060531/20060531005390.html?.v=2

Mountain View-Based Google Launches Video Ads on Partner Web Sites

Mountain View, Calif. -- Mountain View-based Google has expanded its lucrative web-based advertising network to include the ability for advertisers to purchase video ads on its publisher network, CNET News.com reported. The ads do not automatically launch when a user visits a web page -- instead, a user must click on the video ad, which itself contains a link to the advertiser's site. Advertisers bid for placement on sites that accept Google video ads using the company's automated auction system, and pay only when users click on the videos.
http://news.com.com/Googles+video+replay/2100-1024_3-6077594.html

Vector Capital Portfolio Company ProcessClaims to be Acquired

San Francisco -- Vector Capital, a San Francisco-based private equity firm specializing in buyouts, spinouts and recapitalizations of technology companies, said on Wednesday that Chicago-based CCC Information Services has agreed to acquire portfolio company ProcessClaims, based in Manhattan Beach, Calif. Financial terms of the deal were not disclosed. ProcessClaims, a developer of web-based software designed to streamline the claims process for the automotive insurance, collision repair and related industries, first received an investment from Vector in mid-2002. Other Vector portfolio companies include Savi Technology, LANDesk Software, Register.com and Corel.
http://www.vectorcapital.com/news/News.asp

Report: Internet Ad Revenue Hit Record $3.9 Billion in First Quarter

New York -- Internet ad revenue hit a new record of $3.9 billion during the first quarter, a 38% jump from the same quarter a year ago, according to a new report from the Internet Advertising Bureau (IAB) conducted by PricewaterhouseCoopers. Revenue also was up 6% from the previous quarter, spurring even more optimism among industry officials.  "The steady growth of online advertising is a clear indication that marketers continue to believe in the opportunities and effectiveness that this medium delivers in reaching and engaging their consumers," said Greg Stuart, the CEO of the IAB.
http://www.iab.net/news/pr_2006_05_30.asp   

Sunnyvale-Based AMD to Invest $2.5 Billion in German Chip Operations

Sunnyvale, Calif. -- AMD, the Sunnyvale-based chipmaker fighting for market share with Santa Clara-based Intel, said that it plans to invest $2.5 billion to expand its chip manufacturing capacity in Germany over the next three years. The company said that it will transform its current 200 mm wafer facility in Dresden to a 300 mm facility, allowing the company to pack twice as many processors on a wafer. AMD also will expand the capacity of another plant by adding a new clean room facility, designed to better handle a manufacturing process where wafers are prepared to be shipped for packaging. AMD said that the projects have the potential to increase its Dresden-based manufacturing to a full capacity of 45,000 300mm wafer starts a month by the end of 2008.
http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543~109198,00.html

Foster City-Based Applied Biosystems to Acquire APG

Foster City, Calif. -- Applied Biosystems Group, a Foster City-based maker of tools for the life sciences industry, said on Tuesday that it will acquire Agencourt Personal Genomics (APG), a Massachusetts-based developer of genetic analysis technologies, for $120 million in cash. The deal is expected top close after mid-year. Applied Biosystems, one of two operating groups of Applera Corp., said that the deal will add complimentary technology to its current platforms. "After conducting a thorough evaluation of more than 40 companies and academic research groups, we have concluded that APG's technology is both tested and commercializable," said Catherine Burzik, the president of Applied Biosystems.
http://press.appliedbiosystems.com/corpcomm/applerapress.nsf/ABIDisplayPress/582C494292BDED918825717D001C5A5E?OpenDocument&type=abi

Santa Clara-Based McAfee Fires General Counsel

Santa Clara, Calif. -- McAfee, the Santa Clara-based Internet security giant, said on Tuesday that it has fired its general counsel, Kent Roberts, following a review of employee stock option grants. "In connection with that review, the company became aware of one episode involving the General Counsel in 2000 that was improper," McAfee said in a statement. The company said that its audit committee is continuing to review other option granting practices, and has retained independent counsel to assist it in that effort. It also said that it has been in communication with both the Securities and Exchange Commission and Justice Department on the subject.
http://www.mcafee.com/us/about/press/corporate/2006/20060530_182400_o.html

Pleasanton-Based ASAT to Open New Chinese Facility in June

Pleasanton, Calif. -- ASAT, a Pleasanton-based provider of semiconductor package design, assembly and test services, said on Tuesday that it will officially open its new 560,000 square foot manufacturing and testing facility in China on June 12. The company closed its assembly operations in Hong Kong in early May, and is scheduled to move its remaining test operations to the new Dongguan facility by the end of June. "With essentially all of our manufacturing now in Dongguan we will have a much leaner cost structure," said Robert Gange, the president and CEO of ASAT.
http://www.asat.com/news/shownews06.php?news=053006

Nearly 6 Million People Visit Yahoo World Cup Site in April

Sunnyvale, Calif. -- In April, 5.7 million unique visitors visited the official World Cup soccer tournament web site hosted by Sunnyvale-based Yahoo, according to new figures from comScore Networks. Traffic to the site, fifaworldcup.yahoo.com, rose 35% from the previous month. About 51% of all visitors to the site hailed from Germany, with only 10% coming from North America, comScore said. The tournament is not set to begin until June 9 in Germany.
http://www.comscore.com/press/release.asp?press=878

Cupertino-Based Apple to Sell PowerSchool Division to Pearson

Cupertino, Calif. -- Cupertiono-based Apple said on Thursday that it will sell its PowerSchool division, which makes student information systems, to U.K.-based Pearson for an undisclosed sum, Pearson will then develop education content for teachers and students compatible with Apple's iPod. PowerSchool’s web-based software provide K-12 administrators, teachers, students and parents with information on student performance, including grades, homework and attendance. The services complement Pearson’s existing business, which brings assessment, reporting and business solutions to over 16,000 schools. Earlier this school year, Apple and Pearson collaborated to bring digital versions of Pearson textbooks and workbooks to California schools using the Mac mini.
http://www.apple.com/pr/library/2006/may/25powerschool.html

Bay Area Internet Giants Yahoo, eBay Join Forces in Partnership

Sunnyvale, Calif. -- Taking aim at rivals Google, Microsoft and AOL, Sunnyvale-based Yahoo and San Jose-based eBay on Thursday unveiled a multi-year partnership that will combine the resources of Internet giants with combined revenue last year of nearly $10 billion. Under the deal, the companies team in the areas of search and graphical advertising and online payments, develop a co-branded toolbar and explore "click-to-call" functionality. Terry Semel, the chairman and CEO of Yahoo, said that the deal "provides us with a great opportunity to further extend our sponsored search and graphical advertising reach to one of the largest and most active communities on the web." Meg Whitman, the president and CEO of eBay, said that teaming with Yahoo will "create more exposure" for the companies' various properties. Yahoo's portal drew 402 million unique visitors in 2005, while eBay's auction site had nearly 200 million users. The companies plan to begin testing several new co-branded services over the next several months, with implementation expected in 2007.
http://biz.yahoo.com/bw/060525/20060525005329.html?.v=1

San Mateo-Based SuccessFactors Raises $45 Million in Funding

San Mateo, Calif. -- SuccessFactors, a San Mateo-based developer of performance and talent management software, said that it has raised $45 million in a new round of funding to continue the expansion of its business. The financing includes $25 million from Menlo Park's Granite Global Ventures, as well as participation from previous investors Greylock Partners, Canaan Capital, TPG Ventures, Cardinal Venture Capital and Emergence Capital Partners. In addition, the company said that it has secured a commitment of $20 million from Lighthouse Capital Partners. SuccessFactors said that it will use the funding to add additional staff and systems. In the first five months of this year, the company landed 127 new clients to raise its total customer count to more than 500. Its software is designed to align employee performance with business results.
http://www.successfactors.com/aboutus/sf-resources_pressreleases-detail.asp?ID=92

S.F.-Based Applied Identity Raises $12 Million in Second Round

San Francisco -- Applied Identity, a San Francisco-based developer of identity authorization technology for controlling access to internal networks, said on Thursday that it has raised $12 million in its second round of funding, led by OVP Venture Partners, a Pacific Northwest venture capital firm. Previous investors Bay Partners, Sigma Partners and Globespan Capital Partners also participated. The company plans to use the funding to expand its sales and marketing efforts and launch additional product offerings. Applied Identity now has raised a total of $23 million since it's inception in 2003.
http://www.appliedidentity.com/news-and-events/index.shtml

Mountain View-Based Presto Services Raises $10 Million in First Round

Mountain View, Calif. -- Presto Services, a Mountain View-based company developing technology that will let consumers without computers or Internet access share digital content, said that it has raised $10 million in its first round of venture capital financing. The round was co-led by Kleiner Perkins Caufield & Byers and Clearstone Venture Partners. Presto has partnered with Palo Alto-based Hewlett-Packard to create a device and complementary service that lets non-tech-savvy consumers receive photos, email and other digital content without a computer. The company said that the device is designed for the country's 78 million baby boomers and their parents, and the 50 million American adults who don't use computers or have access to the Internet. Presto expects to introduce its debut offering in the fall.
http://www.presto.com/news.htm

StreamCast Sues eBay, Others for $4.1 Billion Over Rights to Skype

San Jose, Calif. -- StreamCast Networks, distributor of the Morpheus peer-to-peer file-sharing software, has filed a lawsuit against Skype parent company eBay and 21 other defendants, claiming that it had first rights to the Internet telephone technology and seeking over $4.1 billion in damages. The technology on which Skype is based was developed by the original creators of rival file-swapping software Kazaa, who are also named as defendants. Skype, along with its nearly 100 million users, was acquired by eBay in 2005 for $2.6 billion. The suit was originally filed in January, though an amended version adding eBay to the list of defendants was filed this week.
http://www.streamcastnetworks.com/05_23_06_skypelawsuit.html

Sunnyvale-Based AnchorFree Secures $6 Million in First Round

Sunnyvale, Calif. -- AnchorFree, a Sunnyvale-based free Wi-Fi network and community, said on Wednesday that it has raised $6 million in its first round of funding. Investors included  Bert Roberts, the former chairman and CEO of MCI; RENN Capital Group; Richard Rainwater, the president of Rainwater. AnchorFree's network consists of 10,000 wireless hot spots in more than 2,400 major metropolitan areas around the world. The company recently acquired MetroFreeFi.
http://www.anchorfree.com/
http://biz.yahoo.com/bw/060524/20060524005292.html?.v=1

Palo Alto-Based Meritech Capital Leads $20 Million Round for Sourcefire

Palo Alto, Calif. -- Meritech Capital Partners, a Palo Alto-based venture capital firm, has led a new $20 million funding round for Sourcefire, a Maryland-based maker of network security software, the company said on Wednesday. All of the company's previous investors -- Sierra Ventures, New Enterprise Associates, Sequoia Capital, Core Capital Partners and Inflection Point Ventures -- also participated. It marked Sourcefire's first venture funding since landing $15 million in its third round in The news comes two months after Israel's Check Point Software Technologies, with has U.S. headquarters in Redwood City, called off its planned $225 million acquisition of Sourcefire. The FBI reportedly opposed the sale, fearing that sensitive government information being secured by Sourcefire's software could fall into the wrong hands.
http://www.sourcefire.com/news/press_releases/pr-19.html   

SEC Launches Probe into CNET's Stock Option Grants

San Francisco -- CNET Networks, the San Francisco-based technology media company, said on Wednesday that the Securities and Exchange Commission (SEC) has launched an informal probe into its stock option grants. CNET said that it plans to cooperate fully with the investigation. Last week, the Center for Financial Research and Analysis issued an analysis of stock option exercise prices relative to stock price ranges for a number of companies during the period from 1997 to 2002. The report identified CNET Networks as having granted stock options on four occasions between 1998 and 2001, with exercise prices that matched or were close to a 40-day low for its stock price. The company said that it will launch an internal investigation, as well.
http://www.cnet.com/
http://biz.yahoo.com/bw/060524/20060524005759.html?.v=1

Apple, Nike Integrate iPod with Running Gear

Cupertino, Calif. -- Athletic shoe giant Nike and Cupertino-based Apple have introduced a line of Nike+iPod products, which integrate the portable music players with Nike footwear, jackets, tops and shorts with waterproof pockets. The first product in the collaboration, the Nike+iPod Sport Kit, is a wireless system that will relay information on time, distance, calories burned and pace from a sensor inside a shoe to an iPod Nano, which will then provide audible feedback through the headphones. The sport kit will retail for $29 when it goes on sale in two months.
http://biz.yahoo.com/prnews/060523/sftu146.html?.v=31

Mindjet Moves Headquarters from Larkspur to San Francisco

San Francisco -- Mindjet, a San Francisco-based maker of productivity software for visualizing and managing information, said on Wednesday that it has relocated its headquarters from Larkspur to San Francisco. The fast-growing company said that the move will help it to attract more top Bay Area talent, as well as to centralize its staff into one facility. The company, which currently employs 100, said that it plans to increase its workforce by 30%, primarily in research and development, technology, sales and marketing. The new 47,000-square-foot facility can accommodate up to 250 employees.
http://www.mindjet.com/us/
http://biz.yahoo.com/bw/060524/20060524005284.html?.v=1

Berkeley-Based Media Publisher Raises $5.3 Million in Second Round

Berkeley, Calif. -- Media Publisher Inc., a Berkeley-based developer of video applications, said on Tuesday that it has secured $5.3 million in its second round of venture capital funding. Storm Ventures led the round, which also included participation from previous investors The Angels' Forum, The Halo Fund, and Garage Technology Ventures. The company has now raised $6.6 million to date. Media Publisher helps companies manage corporate video.
http://www.mediapublisher.com/news_press_052306.htm

San Jose-Based ArchPro Raises $4.5 Million in Second Round

San Jose, Calif. -- ArchPro Design Automation, a maker of electronic design automation products for chip designers, said on Tuesday that it has raised $4.5 million in its second round of funding from from Intel Capital, Entrepia Ventures and Sage Technology Ventures. The company has now raised a total of $5.5 million to date. Pratap Reddy, ArchPro's chairman and CEO, said that the financing will allow his company to "aggressively expand our sales and marketing efforts," while continuing the development of products for low-power design. Over the past six months ArchPro has launched its first three products and expanded its research and development operations in San Jose and Bangalore. The company also maintains a sales and customer support office in Tokyo.
http://www.archpro-da.com/
http://biz.yahoo.com/bw/060523/20060523005745.html?.v=1

San Francisco-Based Bebo Lands $15 Million in First Round of Funding

San Francisco -- Bebo, a San Francisco-based social networking site, said on Tuesday that it has landed $15 million in its first round of funding from Menlo Park-based Benchmark Capital. The company said that it will use the financing to expand its U.S. employee base and open a London office. After launching in July, Bebo said that it is now the largest social networking site in the U.K., Ireland and New Zealand, according to both Nielsen and Alexa, and also is experiencing rapid growth in the U.S., Australia and Canada. All told, the service 24 million registered users.
http://www.bebo.com/
http://biz.yahoo.com/prnews/060523/sftu107.html?.v=56

San Jose-Based Covad, AOL to Launch Joint Broadband Service

San Jose, Calif. -- Continuing its quest to migrate dial-up customers to broadband, AOL said on Tuesday that it has struck a deal with Covad Communications Group, a San Jose-based provider of voice and data communications services, to offer a joint high-speed Internet service. Under the arrangement, AOL this summer will begin offering Covad's broadband access with its own core subscription service for a monthly fee of $39.95 and up. The service will offer download speeds of up to 6.0Mbps. Charles Hoffman, Covad's president and CEO, said that his company's newest broadband access software "will help AOL capture consumers' growing interest in moving to broadband."
http://press.aol.com/article_display.cfm?article_id=990&section_id=15 http://www.aol.com/highspeed

Apple Countersues Creative in Dispute Over iPod User Interface Patents

Cupertino, Calif. -- Cupertino-based Apple has filed a countersuit against Creative Technology, a maker of MP3 players and other media players, claiming that the Singapore-based company infringed on four of its iPod patents. Apple's suit was filed on May 15, the same day that Creative filed its own patent infringement lawsuit against Apple, also over music player patents. Creative also has  petitioned the U.S. International Trade Commission to block the import and sale of iPods from the company's Asian manufacturers. "Creative proactively held discussions with Apple in our efforts to explore amicable solutions," Creative spokesman Phil O'Shaughnessy said in a statement. "At no time during these discussions or at any other time did Apple mention to us the patents it raised in its lawsuit."
http://www.creative.com/press/releases/welcome.asp?pid=12406

BSA Encouraged by Drop in Software Piracy Rate in Emerging Economies

Washington, DC -- Though the worldwide rate of software piracy remained unchanged in 2005, the rates in emerging economies such as China, Russia and India improved, according to a new report from the DC-based Business Software Alliance (BSA), an  association of some of the world's largest software developers. The BSA said that 35% of the packaged software installed on personal computers worldwide was illegal, amounting to $34 billion in global losses, piracy rates decreased moderately in more than half (51) of the 97 countries covered in the study. "The progress made in reducing PC software piracy in several emerging markets provides some encouragement; however, much more needs to be done," said Robert Holleyman, the president and CEO of the BSA. Piracy rates in Russia and China each dropped 4%, while the rate in India fell 2%. Some Bay Area members of the BSA include Adobe, Apple, Autodesk, Borland, McAfee and Symantec.
http://www.idc.com/getdoc.jsp?containerId=prUS20178406

45 Area Companies Named to Red Herring 100 North America

San Francisco, Calif. -- Forty-five Bay Area technology companies have been named to the newly released "Red Herring 100 North America." The award annually honors innovative technology firms and their founders, with companies evaluated on such criteria as financial performance, technology innovation and quality of management. Over 1,000 privately held technology companies originally submitted for the award, with nearly 100 hailing from the Bay Area. The Complete list of winners is available at the link below. 
http://biz.yahoo.com/iw/060522/0130302.html
http://www.redherring.com

Study: U.S. Entrepreneurs Increasingly Foreign-Born

Kansas City, Mo. -- Immigrants far outpaced native-born Americans in entrepreneurial activity last year, while African Americans were the only major ethnic or racial group to experience a year-to-year increase in the rate of entrepreneurship, according to a new study by the Ewing Marion Kauffman Foundation. Approximately 350 out of 100,000 immigrants started a business each month in 2005 compared with 280 out of 100,000 native-born Americans. All told, an average of approximately 464,000 people created new businesses each month in 2005, a slight decline from 2004.
http://www.kauffman.org/items.cfm?itemID=703

Mountain View-Based Kace Lands $8 Million in New Funding

Mountain View, Calif. -- Kace, a Mountain View-based maker of IT automation appliances, said on Monday that it has landed $8 million in a new round of funding, led by Palo Alto-based Norwest Venture Partners. Previous investor Sigma Partners also participated. The company said that it will use the proceeds to expand research and development. Kace's current appliance is used to manage more than 45,000 Microsoft Windows computers in mid-market organizations
http://www.kace.com/about/releases/05_22_06.php

Menlo Park-Based Menlo Ventures Leads $13 Million Round for Market10

Menlo Park, Calif. -- Menlo Ventures, a Menlo Park-based venture capital firm focused on technology, has led a new $13 million funding round for Virginia-based Market10, an online job marketplace founded by Rob McGovern, the founder and former chairman of CareerBuilder. New Enterprise Associates also participated in the company's second round. McGovern said that the financing will allow Market10 to expand into new markets. The company's technology is designed to match the strength, experience and knowledge of qualified candidates with job openings. Market10 on Monday also named Rich Ellinger, a 15-year Silicon Valley technology veteran, as its CTO. Ellinger most recently served as a the vice president of engineering at Redwood Shores-based Saba, a company he co-founded.
http://www.market10.com
http://biz.yahoo.com/bw/060522/20060522005481.html?.v=1

Personal Data of 26.5 Million Veterans Stolen from VA Employee's Home

Washington, DC -- A computer disk containing the personal information of up to 26.5 million veterans and their spouses was stolen from the home of a Department of Veterans Affairs (VA) employee, the agency revealed on Monday. The VA said that the employee, a data analyst, took home the data, which he was unauthorized to do. The data included names, social security numbers and dates of birth, as well as some disability ratings. None of the VA's electronic health records nor any financial information was on the machine. The VA said that his placed the employee on administrative leave pending the outcome of an investigation. Both the FBI and the VA Inspector General's office have launched full-scale investigations into this matter. The VA said that it will send out individual notification letters to veterans who can also go to http://www.va.gov/opa to get more information.
http://www.va.gov/

Sunnyvale-Based Evans Analytical Group Acquires San Jose-Based TFA

Sunnyvale, Calif. -- Evans Analytical Group, a Sunnyvale-based provider of services that identify the overall atomic and physical structure of materials ,said on Monday that it has acquired the operating assets and software of San Jose-based Thin Film Analysis Inc. (TFA). Financial terms of the deal were not disclosed. TFA is an independent lab that characterizes materials using ion beam accelerator techniques. EAG will move the acquired assets into its facility in Sunnyvale.
http://www.eaglabs.com/en-US/press/release5222006.html

Santa Clara-Based Intel Capital Makes Two Foreign WiMAX Investments

Santa Clara, Calif. -- Intel Capital, the venture capital investment arm of Santa Clara-based chipmaker Intel on Monday announced two new investments in foreign WiMAX (Wireless Interoperability for Microwave Access) firms, signing agreements to create Orascom Telecom WiMAX, an Egyptian joint venture, and Worldmax, a joint venture in The Netherlands. Orascom is the first investment from the Intel Capital Middle East and Turkey Fund, announced last November. Both new companies will be majority-owned by Orascom Telecom of Egypt and Enertel, respectively, with Intel Capital as the lead investor. Intel said that it sees a big future in WiMAX, which provides widespread wireless broadband Internet access in metropolitan areas.
http://www.intel.com/pressroom/archive/releases/20060522corp.htm

Redwood City-Based Check Point to Buy Back Up to $600 Million in Stock

Redwood City, Calif. -- Check Point Software Technologies, a maker of firewall and virtual private network software, said on Monday that its board has authorized the repurchase of up to an additional $600 million in company stock. As of March 31, the company had approximately 246 million shares of stock outstanding. Since its initial share repurchase program launched in 2003, the company has bought back about 28.2 million shares for a total of approximately $600 million.
http://www.checkpoint.com/press/2006/stockrepurchase052206.html 

Google Again Stretches Lead in Internet Search Market

Mountain View, Calif. -- For the ninth straight month, Mountain View-based Google gained in search market share in April, maintaining its status as market leader with 43% of all U.S. searches conducted on its sites, according to new figures from Internet research firm comScore Networks. Yahoo remained in second place with 28% and MSN ranked third with 13%. All told, Americans conducted 6.6 billion searches online in April, up 4% from the previous month.
http://www.comscore.com/press/release.asp?press=873 

Shares of Sunnyvale-Based AMD Surge After Dell Chooses to Use Chips

Sunnyvale, Calif. -- Shares of Sunnyvale-based chip-maker AMD rose more than 10% by late Friday, less than  day after computer giant Dell announced plans to use the company's chips in its high-end servers. Ending its long-time exclusive relationship with Santa Clara-based Intel, Dell said that it will use AMD's Opteron chip in its multi-processor servers. Dell ranks No. 3 in the multi-processor server market -- behind Palo Alto-based Hewlett-Packard and IBM -- with about a 10% market share. There are still no plans, however, to use AMD's chips in Dell's PCs.
http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543~108606,00.html

Emmis Launches iTunes Stores on Hip-Hop Radio Station Web Sites

Cupertino, Calif. -- Radio station owner Emmis Communications has announced that two of its popular hip-hop stations, Power 106 (KPWR-FM) in Los Angeles and HOT 97 (WQHT-FM) in New York City, have become the first radio stations to fully integrate Cupertino-based Apple's iTunes Store into their web sites. Listeners may now search, browse and buy music they hear on the radio or online directly from ether site. "We will have full control of the storefront itself," said Rey Mena, the vice president of Emmis Interactive. "Therefore, we can feature any artist we want to feature."
http://biz.yahoo.com/bw/060518/20060518005847.html?.v=1

Micros Teams with San Jose-Based VeriFone on Secure Restaurant Payments

San Jose, Calif. -- Micros Systems, a provider of information technology to the hospitality industry, said on Friday that it has teamed with San Jose-based electronic payment systems firm VeriFone to help fight credit card fraud in North American restaurants. Under the deal, Micros will resell VeriFone's secure mobile payment devices -- which accept debit cards unlocked by personal identification numbers (PINs) -- integrated with its software. The devices wil include a new handheld system that can be equipped with Wi-Fi for pay at the table and carside service, as well as a system especially designed for drive-through establishments. "Card fraud has migrated to restaurants and this alliance finally provides the industry with an efficient integrated solution utilizing secure payment technology that is already widely adopted in other major retail segments," said Douglas Bergeron, VeriFone's chairman and CEO.
http://biz.yahoo.com/bw/060519/20060518005861.html?.v=2
http://www.verifone.com/index.cfm

Survey: Gamers Favor Smaller Forms of Digital Entertainment

Brisbane, Calif. -- Gamers are beginning to favor smaller forms of digital entertainment, such as MP3s (over CDs) and DVDs (over movies in theaters), according to a new survey by Brisbane-based video game portal IGN Entertainment. The survey found that young males favor the MP3 format and iPods over other formats and devices. It also found that they are increasingly are favoring animated and comic-based entertainment over realistic TV and movies. The survey was conducted in March through IGN.com.
http://www.gamesindustry.biz/content_page.php?aid=17126
http://www.ign.com

Millions Flock to the Internet for Mother's Day Gifts, Greetings

Reston, Va. -- In the weeks leading to Mother's Day, sales soared for online retailers of flowers, gifts and greetings, compared to the same period a year ago, according to new statistics released by Reston-based comScore Networks. Online spending in the category spiked during the week prior to the holiday at $195.8 million in sales, topping the coinciding week last year by nearly $28 million. "Online retail spending related to Mother's Day exhibited strong growth over last year, as increasing numbers of consumers continue to become more comfortable making their purchases online," said Rob Harles, a senior vice president at comScore Networks. "Mother's Day has a way of sneaking up on many consumers, but Internet retailers have done an excellent job adapting to last-minute shoppers to capture their business."
http://www.comscore.com/press/release.asp?press=871

Santa Clara-Based Instantis Raises $8.8 Million in New Funding

Santa Clara. Calif. -- Instantis, a Santa Clara-based developer of software designed to manage corporate initiatives tro improve financial performance, said that it has raised $8.8 million in a new round of funding, led by U.S. Venture Partners. Previous investors JK&B Capital and Shea Ventures also participated in the round, which increases the company's total backing to more than $30 million. Instantis said that the latest round will help it to expand its customer base in the  U.S. and abroad. Current customers include Abbott Laboratories, Credit Suisse, Verizon and Xerox.
http://www.instantis.com/
http://biz.yahoo.com/prnews/060517/sfw075.html?.v=52

San Jose-Based Adobe Tabs Randy Furr as New CFO

San Jose, Calif. -- Adobe Systems, the San Jose-based developer of web publishing software, on Thursday named Randy Furr as its new executive vice president and CFO. Furr will start on May 30, succeeding Murray Demo, who resigned in December to spend more time with his family. Most recently, Furr served as the president and COO of electronics manufacturing services company Sanmina-SCI, which he joined in 1992 as CFO.
http://www.adobe.com/aboutadobe/pressroom/pressreleases/200605/051706CFO.html

San Francisco-Based Sonific Lands Angel Funding

San Francisco -- Sonific, a San Francisco-based start-up that allows users to upload free, Flash-based music onto their web sites and blogs, said that it has raised an undisclosed amount of angel funding. The company also said it has signed an agreement with CD Baby, a distributor of independent musicians' CDs, whose members will be able to distribute their music through Sonific. The company was launched by Gerd Leonhard, who also founded LicenseMusic.com and penned a book on the digital music industry. Sonific will use the funds to further build out its technologies and product offerings, expand its content library and build a global partner network.
http://www.mi2n.com/press.php3?press_nb=89912
http://www.sonific.com

GameLogic Raises $3 Million from Hercules Technology Growth Capital

Palo Alto, Calif. -- Hercules Technology Growth Capital, a Palo Alto-based provider of debt and equity growth capital to technology and life sciences companies, has provided $3 million in debt financing to GameLogic, a Massachusetts-based developer of gaming platforms for lotteries and casinos. Founded in 2002, GameLogic specializes in providing licensed gaming operators with games, technology, marketing and support services that allow them to create new revenue streams and communicate with their players between visits.
http://www.gamelogic.com/News.php

Calif. Lawmaker, Game Industry Launch Teen Cyber Stalking Game

Sacramento, Calif. -- The video game industry's ESA Foundation, California State Senator Liz Figueroa and nonprofit Web Wise Kids have introduced a new online game that aims to educate teens on how to outsmart cyber stalkers. Developed by Web Wise Kids, "Mirror Image" is based on a real-life criminal case involving cyber stalking, and will be distributed for free to Web Wise Kids' partner schools and police departments. "We can tell teens or even show them how to be safe online, but an interactive format… gets them involved in the story," said Figueroa, chair of the Select Committee on Children, Youth and Families.
http://www.theesa.com/foundation/index.php
http://www.wiredwithwisdom.org/mirror_image.asp

Palo Alto-Based Hewlett-Packard to Consolidate Data Centers

Palo Alto, Calif. -- Hewlett-Packard, the Palo Alto-based information technology giant, announced on Wednesday that it plans to consolidate its 85 data centers worldwide into six larger centers located in three U.S. cities. -- Atlanta, Houston and Austin, Texas. The three data center locations were selected based on availability and affordability of space, power and network bandwidth, as well as a lower probability of impact from natural disasters, the company said. Each location will host two separate physical sites with more than 50,000 square feet of space within 15 miles of each other, allowing them to be serviced centrally. HP said that the consolidation will allow it to provide better information for the entire company and help reduce its IT spending by about $1 billion in the coming years.
http://www.hp.com/hpinfo/newsroom/press/2006/060517a.html

Mountain View-Based VeriSign to Pay $125 Million for GeoTrust

Mountain View, Calif. -- VeriSign, a Mountain View-based provider of infrastructure services for the Internet and telecommunications networks, said on Wednesday that it will pay $125 million in cash to acquire Massachusetts-based GeoTrust, a supplier of technology for securing e-business transactions. The deal is expected to close after mid-year. GeoTrust specializes in Secure Sockets Layer (SSL) technology, a protocol developed by Netscape for transmitting private documents over the Internet. The company was re-launched in 2001, when it acquired Equifax's security business. GeoTrust has about 9,000 direct resellers in 140 countries. Judy Lin, Verisign's executive vice president and general manager of security services, said that the deal will improve her company's ability to serve the reseller channel market with technologies and services "specifically tailored to their needs."
http://www.geotrust.com/about/news_events/index.asp

Foster City-Based Imperva Lands $17 Million in Third Round

Foster City, Calif. -- Imperva, a Foster City-based developer of data security technology for data centers, said on Wednesday that it has raised $17 million in its third round of funding, led by San Mateo-based Greylock Partners. Previous investors Accel Partners, U.S. Venture Partners and Venrock Associates also participated in the round, which increased the company's total backing to $33.7 million. The company said that ti will use the proceeds to expand its direct and channel sales infrastructure on a global basis.
http://www.imperva.com/company/news/2006-may-17.html