Silicon Valley Wire

KLA-Tencor Says Special Committee Finds Stock Option Discrepancies

San Jose, Calif. -- KLA-Tencor, a San Jose-based maker of yield management and process control tools or semiconductor manufacturers, said on Friday that a special committee of its board has found discrepancies between the actual dates of some stock option grants and the recorded dates of those awards. The company said that the committee is continuing to investigate the timing of the grants and their related accounting treatment, and has yet to determine whether the company will need to restate previously issued financial statements. The news sent KLA-Tencor's stock down 1% in Friday's trading.
http://biz.yahoo.com/bw/060630/20060630005171.html?.v=1

Two Bay Area Entrepreneurs Make Inc.'s Top 30 Under 30 List

A pair of Bay Area entrepreneurs, Mark Zuckerberg of Palo Alto-based Facebook and Elizabeth Holmes of Menlo Park-based Theranos, have made Inc. magazine's new list of the Top 30 Under 30, recognizing America's "coolest" young entrepreneurs. Zuckerberg, 22, first developed software that helped students connect online while at Harvard. Now, his site draws the seventh highest amount of traffic on the Internet, and his company has 75 employees. Holmes, also 22, developed a device while at Stanford that measures the amount of medicine in patients' bloodstreams. Her company now employs 65, and the device is being sold to pharmaceutical companies for clinical trials. Inc.'s web site accepted nominations for several months before releasing its list, which is available at the link below.
http://www.inc.com/votes/

Sunnyvale-Based Infinera Hires Duston Williams as CFO

Sunnyvale, Calif. -- Preparing for its next stage of growth, Infinera, a Sunnyvale-based maker of digital optical networking systems for telecommunications carriers, on Friday named technology industry veteran Duston Williams as its CFO. Williams most recently served as the executive vice president and CFO of disk drives maker Maxtor, and previously was the CFO of Aruba Networks.
http://www.infinera.com/news/2006-06-30.html

Electronic Arts Signs Elliott Sadler as Cover Athlete for NASCAR 07

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, said on Friday that it has signed Nextel Cup Series driver Elliott Sadler as the cover athlete for its new NASCAR 07 game. Sadler, a longtime gamer, has been heavily involved in all aspects of EA's NASCAR franchise since he joined the Cup ranks in 1999, including taking home the championship trophy from last years' EA Sports Drivers Gaming Competition in Tennessee. The game is scheduled for release on September 6.
http://info.ea.com/news/news.php

Survey: Most New Home Owners Highly Satisfied with Technology Purchases

Arlington, Va. -- More than three-quarters of people who purchased technology for their new homes, such as home theater and monitored security systems, said that they were highly satisfied with their purchases, according to a new survey conducted in May by the Consumer Electronics Association (CEA). Owners of home theater systems had the highest satisfaction rate at 89%. Among other technologies, more than 60% of those surveyed said that they are interested in purchasing a monitored security system and 58% said that they are interested in buying an energy management system. Overwhelmingly, those surveyed want a professional to install the systems.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=11072

Redwood City-Based Shutterfly Files to Raise $92 Million in IPO

Redwood City, Calif. -- Shutterfly, a Redwood City-based online photo service, on Thursday filed with the Securities and Exchange Commission to raise up to $92 million in an initial public offering (IPO). The six-year-old company, which lets users upload, edit and share digital photos, hasn't yet revealed details such as the number of shares of their expected price range. Shutterfly has applied to list its stock on the Nasdaq under the symbol "SFLY." Since launching its service in late 1999, the company has fulfilled more than 11 million orders, sold approximately 350 million prints and stored more than 900 million customer photos in its image archives. In May, Shutterfly.com had approximately 4.1 million unique visitors.
http://ir.shutterfly.com/releasedetail.cfm?ReleaseID=202368

Cupertino-Based Apple Investigating "Irregularities" with Stock Option Grants

Cupertino, Calif. -- Joining a fast-growing list of technology companies, Cupertino-based Apple said on Thursday that it is investigating irregularities resulting from the issuance of stock option grants. The grants in question, made between 1997-2001, included one to CEO Steve Jobs, through it was subsequently cancelled and resulted in no financial gain to the CEO. A special committee of Apple's outside directors has hired an independent counsel to perform an investigation, and the company said that it has informed the SEC. "We are proactively and transparently disclosing what we have discovered to the SEC," said Jobs. "We are focused on resolving these issues as quickly as possible."
http://www.apple.com/pr/library/2006/jun/29stock.html

San Francisco-Based iBloks Secures $3 Million from Maveron

San Francisco -- iBloks, A San Francisco-based developer of software designed to help people personalize their digital media, said on Thursday that it has raised $3 million in its second round of funding from Seattle-based Maveron. The company said that it will use the investment to further develop its application. iBloks first shipped the consumer beta version of its software on Windows Vista in May, and earlier this month released its consumer beta application for Windows XP. The company also opened a download shop, where users can download free and premium content and mods, digital music, videos and games.
http://www.ibloks.com/
http://biz.yahoo.com/bw/060629/20060629005080.html?.v=1

Mountain View-Based Google Launches "Checkout" Service

Mountain View, Calif. -- Google, the Mountain View-based Internet search giant, on Thursday launched its new online shopping tool, touted by some as an alternative to the well-established PayPal. Google Checkout is designed to allow shoppers to purchase from participating stores with a single login, and also works with the company's AdWords search advertising program. Once shoppers fill out their initial enrollment form from the site of a participating merchant, they can use the same username and password to avoid filling in forms on future purchases. They can also keep track of their purchase history, including orders and shipping details, in one place. The service also includes security features, concealing the buyer's credit card number and providing reimbursement for unauthorized purchases.
http://checkout.google.com
http://www.google.com/intl/en/press/pressrel/checkout.html

FBI Recovers Stolen VA Laptop; Database Appears Intact

Baltimore -- The FBI said on Thursday that it has recovered a laptop computer and external hard drive containing the personal information of more than 26 million veterans, nearly two months after they were stolen from the Washington, DC-area home of a Veterans Administration (VA) employee. A preliminary review of the equipment by computer forensic teams determined that the database remains intact and has not been accessed since it was stolen, the FBI said. A more thorough forensic examination is now underway. The equipment was stolen on May 3, after a data analyst from the VA took it home without authorization. The data included names, social security numbers and dates of birth, as well as some disability ratings.
http://baltimore.fbi.gov/pressrel/2006/laptop_062906.htm

S.F.-Based CNET Networks Gets Subpoena Over Stock Option Grants

San Francisco -- CNET Networks, a San Francisco-based publisher of technology news and information, said that it has received a subpoena from the U.S. Attorney for the Northern District of California, seeking documents related to its stock option grants. The company said that it intends to cooperate fully with the request. The subpoena follows the company's announcement in May that its board had appointed a special committee to conduct an internal investigation into past option grants. The SEC is also conducting an informal inquiry.
http://biz.yahoo.com/e/060627/cnet8-k.html
http://www.cnet.com

Senate Committee Approves Amendment on Stricter Porn Site Labeling

Washington, DC -- A new amendment approved by the Senate Commerce Committee would require all web sites that post explicit sexual content to add warning labels to each page containing such content, CNET News.com reported. Site operators who fail to properly label web pages would face up to five years in prison. "This will protect children from accidentally typing in the wrong address and immediately viewing indecent material," said Sen. Conrad Burns, (R-Mon.). Other new amendments would add "broadcast flag" copyright protection to digital TV content, and deny a provision on Net neutrality. The broadcast flag proposal is being backed by the entertainment industry as a means of ensuring that digital broadcasts don't end up online, but faces criticism that it will stifle innovation and erode traditional "fair use" rights. The amendments were part of the massive telecommunications bill that passed the Senate Commerce Committee by a 15-7 vote on Wednesday. Other amendments, including a hotly-contested provision on Net neutrality, failed to gain inclusion in the final bill, which will now move on to the full Senate.
http://news.com.com/Senators+adopt+Web+labeling+requirement/2100-1028_3-6088745.html
http://commerce.senate.gov/public

Los Gatos-Based DVDPlay Secures $20 Million, New CEO

Los Gatos, Calif. -- DVDPlay, a Los Gatos-based maker of DVD rental kiosks, said on We3dnesday that it has raised over $20 million in a new round of equity financing, and has named Chuck Berger as its chairman, president and CEO. El Dorado Ventures, Emergence Capital Partners, Palo Alto Venture Partners and Vanguard Ventures each participated in the round, which increased the company's total funding to date to nearly $40 million. DVDPlay said that it will use the new capital to fund the national roll-out of its DVD rental kiosks. The company also said that it has secured a similar amount of lease financing commitments to support its installations through 2007. DVDPlay also announced that Charles (has been named chairman, president and CEO. Berger has served as the non-executive chairman of DVDPlay since 2001, and has been the CEO of Nuance Communications, Vicinity, AdForce and Radius.
http://www.dvdplay.com/
http://biz.yahoo.com/bw/060628/20060628005294.html?.v=1

Menlo Park-Based DFJ Element Closes $284 Million "Clean" Tech Fund

Menlo Park, Calif. -- DFJ Element, a Menlo Park-based venture capital fund formed by Element Venture Partners and Draper Fisher Jurvetson to invest in clean technology companies, said on Wednesday that it has closed its fund at $284 million, nearly twice its initial target of $150 million. The fund will invest in companies developing environmental and resource technologies in the energy, water and other large industrial and commercial markets. It already has invested in four companies: CoalTek, a developer of clean coal technology; Fat Spaniel Technologies, a provider of IT infrastructure for distributed power generation; Miartech, a designed of mixed-signal semiconductors focusing on the power line communications market; and EcoSMART Technologies, which has developed a line of products in the organic pesticide markets.
http://biz.yahoo.com/bw/060628/20060628005747.html?.v=1
http://www.dfjelement.com/

Fremont-Based Pegasus Wireless Raises $10 Million in Private Placement

Fremont, Calif. -- Pegasus Wireless, a Fremont-based maker of hardware and software for broadband wireless networking and Internet access, said on Wednesday that it has raised $10 million though a private placement. Through the deal, the company's president, Jasper Knabb, has purchased 1.25 million shares of Pegasus stock for $8 each. The company said that ti will use the funds to make acquisitions, as well as to build up its sales and marketing staff in advance of its entrance into the retail market. In the second half of last year, Pegasus bought a controlling interest in China's CNet Technology, as well as a pair of electronics manufacturing facilities in the Far East.
http://www.pegasuswirelesscorp.com/
http://biz.yahoo.com/bw/060628/20060628005646.html?.v=1

Sunnyvale-Based Palm to Pay Xerox $22.5 Million to Settle Patent Suit

Sunnyvale, Calif. -- Palm, the Sunnyvale-based maker of handheld computers and mobile communication devices, has agreed to pay $22.5 million to Xerox to settle a nine-year-old patent suit over handwriting recognition technology. Xerox in 1997 claimed that a technology called Graffiti, which was formerly used in Palm's operating systems, infringed on its Unistrokes technology. The settlement agreement also includes a seven-year covenant not to sue within mutually agreed fields of use.
http://biz.yahoo.com/bw/060628/20060628005429.html?.v=1

San Francisco-Based MarkMonitor Acquires CollectiveTrust

San Francisco -- MarkMonitor, a San Francisco-based provider of online corporate identity protection services, said on Wednesday that it has acquired CollectiveTrust, a developer of fraud protection technology. Financial terms of the deal were not disclosed. MarkMonitor said that it plans to incorporate the technology into its current offerings, which will be deployed through the company's relationships with major Internet services providers. CollectiveTrust is the developer of the Zero-Hour fraud detection and notification technology, which is integrated into Internet browsers and downloadable toolbars. The technology is designed to protect Internet users against phishing, identity theft, malware, trojans and other forms of online fraud.
http://www.markmonitor.com/news/press-060628.html

San Francisco-Based 365 Main to Opens Los Angeles Data Center

San Francisco -- 365 Main, a San Francisco-based developer and operator of data centers, on Wednesday opened a 135,000-square foot complex outside of Los Angeles, one of its three new data centers. The company also recently opened a 315,000-square-foot facility in Phoenix, and plans to open a 145,000-square-foot complex in Chantilly on September 1. The company said that each of the new facilities will operate non-stop, and feature the requisite, power, cooling, security and connectivity to fuel increasingly complex and demanding corporate computing environments.
http://www.365main.com/press_releases/pr_6_28_06_national_presence.html

San Mateo-Based YouTube Teams with NBC for Promotional Partnership

San Mateo, Calif. -- NBC said that it will promote its fall television line-up on the video-sharing site of San Mateo-based YouTube, which attracted 20 million users during the month of May. Under the deal, NBC will create an official NBC Channel on YouTube, featuring exclusive promo clips for the upcoming seasons of shows like "The Office," in addition to long-form promos each week for shows like "The Tonight Show" and "Saturday Night Live." In return, YouTube will receive significant on-air promotion on NBC. The companies will also launch a contest where viewers of "The Office" can create and submit their own 20-second promo videos and post them on YouTube. NBC clashed with YouTube several months ago over the site's then-lax control over the posting of copyrighted content, when several clips from "Saturday Night Live" posted on YouTube drew millions of viewers and considerable attention to the site.
http://webwire.com/ViewPressRel.asp?SESSIONID=&aId=15842
http://www.youtube.com

Santa Clara-Based Marvell to Buy Intel Business for $600 Million

Santa Clara, Calif. -- Marvell Technology Group, a Santa Clara-based make rof semiconductor products, said on Tuesday that it will pay $600 million to acquire the communications and application processor business of Santa Clara-based Intel. Marvell said that the deal, expected to close in 4-5 months, will give it a strong presence in the growing market for processors used in smart handheld devices. The news sent shares of Marvell tumbling nearly 15%, closing at $44.14. Intel's communications and application processor business, which employs about 1,400, develops and sells processors for handheld devices, including smart phones and personal digital assistants. The vast majority of the the affected employees are expected to transfer to Marvell. Sehat Sutardja, Marvell's chairman, president and CEO, said that the acquisition gives his company "a tremendous opportunity to become a long-term leading supplier in the cell phone and consumer electronics market segments." Marvell has worked closely with Intel on several projects over the past six years.
http://www.marvell.com/press/pressNewsDisplay.do;jsessionid=GhSHTy6czgT1y1NRDSWSLpHnXk3PVHp1nGqzpStnvKKHzzJ7Lpl9!468540434?releaseID=581

Santa Clara-Based WhiteHat Security Lands $3.5 Million in Funding

Santa Clara, Calif. -- WhiteHat Security, a Santa Clara-based provider of web application security services, said that it has secured $3.5 million in a new round of funding led by Altos Ventures. Startup Capital Ventures and several of the company's previous investors also participated in the round, which WhiteHat plans to use to expand its sales and marketing efforts. The company said that it expects the round to fund it through profitability. WhiteHat's services are designed to help companies secure customer data.
http://www.whitehatsec.com
http://biz.yahoo.com/prnews/060626/nym097.html?.v=39

San Mateo-Based Akimbo Raises $15.5 Million in Third Round

San Mateo, Calif. - Akimbo Systems, a San Mateo-based provider of video-on-demand over the Internet, said that it has raised $15.5 million in its third round of venture capital financing. New investors in the round included Cisco, AT&T and Blueprint Ventures, while previous investors Draper Fisher Jurvetson, Kleiner Perkins Caufield & Byers, Sprout Group and Zone Ventures also participated. Akimbo's service offers a library of more than 10,000 movies and TV shows for download to the company's broadband set-top box. The $9.99 a month service will also be available to subscribers of AT&T's Homezone broadband service later this summer, while its joint RCA Akimbo Player with consumer electronics maker Thomson will launch in the fall.
http://www.akimbo.com/press_rel_062606.html

San Jose-Based Scintera Raises $12 Million in Funding, Hires CFO

San Jose, Calif. -- Scintera, a San Jose-based developer of semiconductor products for multi-gigabit communication and networking systems, said that it has raised $12 million in its third round of funding and appointed Scott Gibson as its CFO. The round was led by New Jersey-based Ridgewood Capital, and included previous investors August Capital, Kleiner Perkins Caufield and Byers and Sevin Rosen Funds. Scintera said that it will use the funds to ramp production of current products and invest in other synergistic wireline and wireless markets. Gibson has spent the past 20 years in finance, IT, human resources and administration roles at technology companies such as KLA-Tencor, PLX Technology, Soma Networks and, most recently, Cradle Technologies. The company also said that it has added former Broadcom CEO Lanny Ross to its board of directors.
http://www.scintera.com/pr_062606_Series-C_CFO_Lanny.htm

Sunnyvale-Based Mu Security Raises $10 Million in Second Round

Sunnyvale, Calif. -- Mu Security, a Sunnyvale-based developer of security analysis systems, said on Tuesday that it has landed $10 million in its second round of venture capital, led by Duff, Alderman & Goodrich Ventures. Previous investors Accel Partners and Benchmark Capital also participated in the round, which increased the company's total backing to $14 million. The company, which raised $4 million in January, said that it will use the round to expand its sales and marketing efforts. Mu also said that it has hired Robert Geiger as its vice president of engineering and Adam Stein as its vice president of marketing.
http://www.musecurity.com/news/press/pr060627.html

San Francisco-Based Hyperic Raises $3.8 Million in First Round

San Francisco -- Hyperic, the San Francisco-based developer of an open source IT management platform, said on Tuesday that it has raised $3.8 million in its first round of funding, led by Menlo Park-based Benchmark Capital. The new capital comes in addition to an investment from Accel Partners, announced in May. Launched in 2004, Hyperic has developed a platform that helps companies automatically discover, monitoring and control of IT assets. The company's tools are now available under an open source license. Customers include eHarmony, Ask.com, AOL and Stanford University.
http://www.hyperic.com/
http://biz.yahoo.com/bw/060627/20060627005110.html?.v=1

San Francisco-Based Three Rings Design Raises Venture Capital

San Francisco - Three Rings Design, a San Francisco-based developer of multiplayer online casual games, said that it has raised an undisclosed amount in its second round of venture capital financing. Mercury Capital Partners and Amicus Capital co-led the round, with the Arba Group and angel investor Stewart Alsop also participating. Three Rings' titles, such as "Bang Howdy" and "Puzzle Pirates," are free to play but charge users for purchases of items used within the games. The company will use the funds for expansion and new product development.
http://www.mercurycapitalpartners.com/merc_release_threerings.html
http://threerings.net

Sunnyvale-Based Tzero Technologies Raises $25.5 Million in Second Round

Sunnyvale, Calif. -- Tzero Technologies, a Sunnyvale-based developer of chips that enables broadcast-quality video over wireless networks, said on Monday that it has raised $25.5 million in its second round of venture capital funding. New investor OVP Venture Partners led the round, which also included participation by new investor Quilvest and previous investors August Capital, Lightspeed Venture Partners, U.S. Venture Partners and VentureTech Alliance. Tzero plans to ship its first ultra-wideband chipset next month, and said that it will use the infusion of capital to bring new products to market.
http://www.tzerotech.com/news/

Mountain View-Based LignUp Lands $9.8 Million in Second Round

Mountain View, Calif. -- LignUp, a Mountain View-based developer of a converged IP communications platform, said on Monday that it has secured $9.8 million in its second round of funding, which included new investment from Intel Capital, The Entrepreneurs' Funds, Weber Capital Management, Draper Associates and Silicon Valley luminary Regis McKenna. The round also included follow-on investments from Wasatch Venture Fund, the University of Utah's University Venture Fund and vSpring Capital. LignUp's platform is designed to allow telephony service providers, on-demand business software providers, traditional independent software vendors and online community portals to quickly build and deploy telephony services. The company said that it has more than 140 customers in North America, Europe and Asia.
http://www.lignup.com/company/news/2006/6/26/53

Santa Clara-Based Pyxis Technology Raises $9.2 Million in Second Round

Santa Clara, Calif. -- Pyxis Technology, a maker of software for chip designers and foundries, said on Monday that it has raised $9.2 million in its second round of funding, led by Menlo Park-based Formative Ventures. Previous investors Austin Ventures and CMEA Ventures also participated in the round, which the company plans to use for continued research and development, as well as to to develop sales and marketing infrastructure. Pyxis's software addresses the problems that chip designers and foundries face in the physical design, layout and routing of nanometer-scale integrated circuits and systems on a chip (SoCs).
http://www.pyxistech.com/news.html

San Jose-Based Adobe Systems Acquires Denmark's Pixmantec

San Jose, Calif. -- Adobe Systems, the San Jose-based maker of web publishing software, said on Monday that it has acquired the technology assets of Denmark's Pixmantec, a maker of software that provides advanced workflow management and processing capabilities for digital camera raw files. Financial terms of the deal were not disclosed. Adobe said that the acquisition strengthens its offerings in raw processing. "With high quality digital cameras now within reach of every photographer, customers are gravitating to raw file formats that allow them to get more control over final results," said John Loiacono, Adobe's senior vice president of creative solutions.
http://www.adobe.com/aboutadobe/pressroom/pressreleases/200606/062606Pixmantec.html

San Francisco-Based HandHeld Entertainment Taps Bill Bush as CFO

San Francisco -- HandHeld Entertainment, a San Francisco-based maker of portable media players and operator of an online video download store, on Monday named Bill Bush as its CFO. Bush has been consulting the company since January, when he joined HandHeld as its acting CFO. Previously, Bush was the CFO and secretary for International Microcomputer Software, and also served as the director of business development and corporate controller for Buzzsaw.com.
http://www.zvue.com/
http://www.finanznachrichten.de/nachrichten-2006-06/artikel-6620415.asp

Report: Puzzle, Strategy Titles Account for One-Third of Mobile Game Sales

San Francisco -- Puzzle and strategy games now account for one-third of the total mobile game market, according to a new report from San Francisco-based Telephia. The firm said that during the first quarter, the top five revenue-generating titles fell into the puzzle and strategy category, with Tetris, Tetris Deluxe and Bejeweled securing the top three spots. The two Tetris games, in fact, combined to account for nearly 9% of the total mobile game revenue during the quarter. "Mobile game purchases continue to grow with more than 8.6 million games bought in April, increasing 60% since the beginning of the year," said Kanishka Agarwal, the vice president of new products at Telephia.
http://www.telephia.com/
http://biz.yahoo.com/bw/060626/20060626005581.html?.v=1

Wireless Giant Sprint Nextel Launches Wireless Etiquette Podcast

Reston, Va. -- While most business professionals have grown increasingly dependent on their cell phones to stay connected, relatively few seem to be cognizant that their conversations can disturb others, said Sprint Nextel, the recently merged wireless giant. In an effort to help improve the situation, the company has released a wireless etiquette podcast at http://podcast.sprint.com, designed to help cell phone users brush up on their manners. "Most times people don't intend to offend, they are just unaware of their surroundings," said Jacqueline Whitmore, the founder and director of The Protocol School of Palm Beach and originator of National Cell Phone Courtesy Month, which runs throughout July. During the podcast, Whitmore offers tips such as shifting your phone into its silent or vibrate mode when entering a restaurant or meeting, and avoiding discussing confidential information in public. "Good manners can make or break a deal," she said.
http://podcast.sprint.com/1/1/
http://www2.sprint.com/mr/news_dtl.do?id=12440

Traffic to Yahoo's World Cup Site Picks Up in Second Week

Sunnyvale, Calif. -- The official site of the FIFA World Cup soccer tournament, hosted by Sunnyvale-based Yahoo,  continues to draw impressive numbers, according to a new report from comScore Networks. The firm said that traffic to the site peaked on Monday, June 12, with more than 226 million page views and more than 5 million unique visitors. That compares to only 90 million total page views over the two days of last July's Live 8 concert. In the U.S., Internet users showed increased interest in the tournament during the second week, with 111 million pages served to the U.S. audience on Monday. "The driver behind these impressive page view numbers appears to be increased activity at the site, with users having more and more content available to them as the tournament progresses," said Bob Ivins, the managing director of comScore Europe. In fact, the average visitor viewed 40 pages a day during the second week, compared with 31 during the opening weekend.
http://www.comscore.com/press/release.asp?press=915

Livermore-Based Alloptic Lands $8 Million Investment from Arcapita

Livermore, Calif. -- Alloptic, a Livermore-based developer of optical access equipment, said on Thursday that it has landed an $8 million equity investment from Arcapita Ventures, the venture capital arm of Arcapita Bank. The financing, which Alloptic plans to use to accelerate its growth, marks the second investment by Arcapita. Alloptic has more than 65 customers, including communities, telecommunications carriers and cable providers, as well as four patents and another seven pending. The company's equipment is designed to be used in fiber-to-the-premise (FTTP) deployments, enabling such services as high-speed Internet, digital cable TV and IP telephone.
http://www.alloptic.com/
http://biz.yahoo.com/bw/060622/20060622005136.html?.v=1

Fremont-Based Asyst to Buy Another 44% of Japanese Joint Venture

Fremont, Calif. -- Asyst Technologies, a Fremont-based maker of automation tools used in semiconductor and flat panel display manufacturing, said on Thursday that it has signed a deal to acquire an additional 44.1% of its Asyst Shinko Inc. (ASI) joint venture for about $102 million. Asyst and Shinko Electric formed the joint venture in Japan in 2002, with Asyst holding 51% and Shinko 49% equity ownership. Asyst Shinko will maintain its current headquarters in Tokyo and manufacturing plants in Ise and Toyohashi, Japan. A year after the deal closes, Asyst can buy the final 4.9% of the company for another $11 million. 
http://biz.yahoo.com/bw/060622/20060622005355.html?.v=1

San Mateo-Based RGB Networks Raises $20 Million in Third Round

San Mateo, Calif. -- RGB Networks, a San Mateo-based maker of video processing tools for video service providers, said that it has raised $20 million in its third round of funding, led by new investor Focus Ventures of Palo Alto. Previous investors Accel Partners, Comcast Interactive Capital, Kleiner Perkins Caufield & Byers and Mitsui & Company Venture Partners also participated. The company said that its valuation has jumped to $110 million, an increase of 150% from its previous valuation 18 months ago. RGB's video processing tools allow cable operators and telecoms to create switched digital video networks that manage and deliver services such as video-on-demand (VOD) and targeted advertising.
http://www.rgbmedia.net/news/pr_062106-series-c-funding.php

San Francisco-Based Wine.com Raises $12 Million from Baker Capital

San Francisco -- Wine.com, a San Francisco-based online wine retailer that has struggled to find its footing through the years, said on Thursday that it has landed $12 million in a new round of funding from New York-based Baker Capital. With the financing, the company has hired Rich Bergsund, most recently the founder and CEO of online hobby and crafts retailer IdeaForest, as its new CEO. The funding comes as Wine.com, which had raised more than $100 million during a previous incarnation, tries to reinvent itself. The company's new strategy is to use the information it collects about consumer tastes and preferences to help customers navigate the often overwhelming process of selecting the right bottle of wine. Baker Capital has helped lead the transition since the departure of the company's previous management last August. The latest round will have its final close in August, with the company expecting to raise as much as $5.7 million more.
http://biz.yahoo.com/prnews/060622/sfth018.html?.v=61
http://www.wine.com

S.F.-Based Discovery Mining Lands $3.2 Million Investment from EVault

San Francisco -- Discovery Mining, a San Francisco-based developer of electronic discovery technology, said on Thursday that it has received a $3.2 million investment from Emeryville-based online data protection firm EVault as part of a partnership between the two companies. Discovery said that it will use the new capital to hasten the growth of its data processing capacity, as well as boost its sales efforts. Used by law firms and large companies, Discovery Mining is a provider of cluster computing technology used to manage email and other electronic documents for litigation, regulation, retention and review.
http://www.discoverymining.com/
http://biz.yahoo.com/prnews/060622/phth015.html?.v=63

23 from Bay Area Make Business.2.0 List of Fastest-Growing Tech Firms

San Francisco -- Twenty-three Bay Area technology companies, led by Cupertino-based Apple, have named to Business 2.0's newly released list of the fastest growing tech companies in the U.S. All told, California leads all states with 41 companies on the list. Apple, buoyed by the 2005 release of its iPod Nano and Mac Mini computer, came in at No. 3, behind only New Jersey-based Celgene and North Carolina-based Red Hat. Other area firms in the top 50 include Sunnyvale's SanDisk (No. 4), Foster City's Gilead Sciences (No. 9), Sunnyvale's Kyphon (No. 11), Sunnyvale's OmniVision (No. 14), South San Francisco's Genentech (No. 17), Fremont's Lam Research (No. 21), San Jose's Secure Computing (No. 27) and Sunnyvale's Juniper Networks (No. 41). A complete list is available at the link below. Rankings are based on such factors as three-year annualized growth in revenue, earnings and operating cash flow, as well as percentage changes in 2005 stock return and headcount.
http://money.cnn.com/magazines/business2/b2fastestgrowing/index.html

Report: Digital Technology to Lead Growth of Global Entertainment Industry

New York -- The global entertainment industry has entered a "solid growth phase," and will increase at a nearly 7% clip through 2010 when revenue will reach $1.8 trillion, according to a new report from PricewaterhouseCoopers. During that same period, the firm said that spending on mobile and online entertainment will increase three-fold to $67 billion, when the world is expected to count 433 million broadband households and 2.8 billion mobile subscribers. The Asia-Pacific region will experience the most rapid growth. Internet advertising sales, as well, are expected to experience rapid growth, accounting for 10% of all advertising spending by 2010. "Virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content," said Wayne Jackson, who leads PricewaterhouseCoopers' entertainment and media practice. "As this shift continues, we see more revenue opportunities for entertainment and media companies."
http://biz.yahoo.com/prnews/060621/nyw001.html?.v=52
http://www.pwc.com/outlook

Senators, Video Game Industry Unveil "Commitment to Parents" Initiative

Washington, DC -- Major video game retailers and the industry's Entertainment Software Ratings Board (ESRB) have announced a new initiative aimed at educating consumers about game ratings and boosting the enforcement of store policies on the sale of Mature-rated games. Under the "Commitment to Parents" initiative, retailers such as Wal-Mart, GameStop, Blockbuster and Circuit City have agreed to promote ESRB ratings in circulars and on web sites, train clerks on game sales policies, participate in two "mystery shopper" audits each year to track store policy enforcement and establish a means for parents to return or exchange Mature-rated games sold to their minor children. "Parents must be educated on how video games are rated and what is appropriate for their children," said Sen. Rick Santorum (R-Pa.).
http://www.esrb.org/about/news/downloads/erc_release_6_21_06.pdf (PDF)
http://santorum.senate.gov/public/index.cfm?FuseAction=PressOffice.View&ContentRecord_id=1889&CFID=6883304&CFTOKEN=97574973

San Jose-Based Techwell Prices IPO; Shares Fall 3% on First Day

San Jose, Calif. -- Techwell, a San Jose-based designer of mixed signal integrated circuits for digital video devices, on Wednesday prices its initial public offering (IPO) of 5.5 million shares at $9 each, well below its expected price range of $11-13. The offering raised $49.5 million, though a large portion of that -- roughly $26.6 million -- will go to selling shareholders. Investors showed little enthusiasm for the IPO, sending company shares, trading on the Nasdaq under the symbol "TWLL," down nearly 3% on their first day of trading. Shares closed at $8.75. Techwell's chips are used in a range of such as digital media devices, such as DVRs, DVD recorders and LCD monitors.
http://biz.yahoo.com/bw/060621/20060621005763.html?.v=1

San Ramon-Based Sabrix Raises $13 Million in Fourth Round

San Ramon, Calif. -- Sabrix, a San Ramon-based developer of software that allows companies to determine, calculate and record transaction-related taxes, said on Wednesday that it has secured $13 million in its fourth round of funding. New investor GKM Ventures led the round, which also included participation from previous investors Mohr Davidow Ventures, Trinity Ventures, and VSP Capital. The company plans to use the funds to expand its offerings to new markets. Current customers include Best Buy, Cisco Systems, Hewlett-Packard and Yahoo.
http://www.sabrix.com/news/releases/2006-sabrix-secures-13-million.html

Two from Area Make Computerworld's 100 Best Places to Work in IT List

San Francisco -- A pair of Bay Area companies have made Computerworld's 2006 list of 100 best places to work for IT professionals. San Francisco-based Charles Schwab & Co. was the highest-ranked local firm at No. 97, followed by Fremont-based Infosys Technologies at No. 100. Michigan-based Quicken Loans topped the 13th annual list. To qualify, U.S.-based companies had to have 2005 revenue of at least $250 million and a minimum of 500 total employees, including at least 75 IT employees in the U.S. Companies were graded on such factors as average salary and bonus increases, percentage of IT workers receiving promotions, IT staff turnover rates and training and development opportunities.
http://www.computerworld.com/html/research/bestplaces/2006/bpchart_01_main.html

Report: Apple, Hollywood Studios in Talks on iTunes Movie Store

Cupertino, Calif. -- Cupertino-based Apple is in talks with the major Hollywood studios on licensing films for an Internet movie download store to complement its iTunes Music Store, Daily Variety reported. The studios reportedly rejected Apple's proposal to sell films for $9.99 each, and "insiders" told Variety that Apple may eventually compromise, allowing pricing to range from $9.99 for older titles to $19.99 for new releases. "We can't be put in a position where we lose the ability to price our most popular content higher than less popular stuff," a studio exec close to the negotiations told Variety. Sources told the paper that they expect the video store to launch by year's end at the latest, with many predicting the launch to coincide with the release of a new iPod model with a bigger screen more suitable for viewing films.
http://www.variety.com/VR1117945507.html

Chinese iPod Manufacturer Foxconn Denies "Sweatshop" Claims

Taipei, Taiwan - Chinese electronics manufacturer Foxconn has denied claims by a British newspaper that workers making Apple's iPod Nano players are being subjected to "sweatshop" conditions, DigiTimes.com reported. Foxconn spokesman Edmund Ding said that the company does not operate a facility in the town of Suzhou, as the article in the The Mail on Sunday stated. It also employs a total of 160,000 workers worldwide, despite the article's claim that 200,000 work and live in dormitories at a plant near Shenzhen, toiling 15 hours days for $50 in monthly wages. Ding told DigiTimes.com that the company pays workers at the Shenzhen plant the minimum wage of 810 yuan ($101) a month, as stipulated by Chinese law. Ding added that Foxconn is reserving the right to take legal action over the Mail on Sunday report.
http://www.digitimes.com/systems/a20060619A2007.html
http://www.digitimes.com/systems/a20060619PR202.html

Former Gracenote CEO Launches Berkeley-Based MOG Music Community

Berkeley, Calif. -- The former CEO of Emeryville-based CD identification technology firm Gracenote has announced the launch of Berkeley-based MOG, an online music destination that allows users to compare their musical tastes with an online community. Headed by David Hyman, who in addition to heading Gracenote was also previously the senior vice president of marketing at MTV Interactive, MOG has to date raised $1.4 million in financing. The site can automatically scan a user's hard drive and create a listing of what albums and songs are owned, while widgets allow users to display what song they are currently listening to and create lists for recently played and top songs of the week or month. MOG also provides 30-second sound samples of every song, as well as direct links to iTunes and Amazon for download and CD purchases. http://biz.yahoo.com/prnews/060620/sftu042.html?.v=61
http://www.mog.com

Redwood City-Based EA to Acquire Online Games Firm Mythic Entertainment

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, said on Tuesday that it will acquire Virginia-based Mythic Entertainment, a publisher of online games, for an undisclosed sum. The deal is expected to be completed by September, when Mythic will EA Mythic, a wholly owned studio dedicated to developing massively multiplayer online role-playing games. Mythic is the developer of the award-winning Dark Age of Camelot online game, and is currently developing Warhammer Online: Age of Reckoning under a licensing deal with Games Workshop. Mark Jacobs, the president and CEO of Mythic, will become the vice president and general manager of EA Mythic, while fellow co-founder Rob Denton will assume the role of the studio's vice president and COO.
http://info.ea.com/
http://biz.yahoo.com/bw/060620/20060620006061.html?.v=1

Menlo Park-Based Accel-KKR Acquires Majority Stake in IntrinsiQ

Menlo Park, Calif. -- Accel KKR, a Menlo Park-based private equity firm focused on technology businesses, said on Tuesday that it has acquired a majority stake in IntrinsiQ, a Massachusetts-based provider of medical oncology care software and data on trends in cancer drug usage. Financial terms of the deal were not disclosed. IntrinsiQ was founded in 1996. Its major clients include BMS, Genentech, Pfizer, and Sanofi-Aventis, among others.
http://www.intrinsiq.com