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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (1776)	9/20/2002 3:24:53 PM
From: Dave B	Respond to of 4345

Packard Foundation Announces Layoffs, Fewer Grants Sep 20, 2002 (San Jose Mercury News - Knight Ridder/Tribune Business News via COMTEX) -- The David and Lucile Packard Foundation will lay off up to half of its staff and further slash its grants to non-profits. It is one of the most dramatic signs yet of how the non-profit world is at the mercy of the stock market. The foundation, once the nation's second-largest grant maker, is setting out a new course dictated by the steep drop in its endowment. Indeed, its endowment -- which is made up mostly of Hewlett-Packard stock -- has shrunk from $13 billion in 1999 to $3.8 billion today. The plunge in fortunes of the Packard Foundation is particularly harsh because it has long been the philanthropic beacon of Silicon Valley, and is deeply embedded in the fabric of the community. It set the standard for giving among the newly-minted wealthy in the high-tech world -- and now is another reminder of how fragile that wealth is. And while the foundation will still be a major player in American philanthropy, the impact of the cuts will be felt everywhere from boys and girls clubs to symphony and theater halls. "It's unbelievable," admitted Richard Schlosberg, president of the foundation. "The Packard Foundation needed to adjust its size to represent a new reality -- which is a smaller foundation, a leaner foundation, a more sharper-focused foundation." As much as half of the foundation's 160 staff members could be laid off in December. The foundation, which operates out of four locations in Los Altos, will move its operations into the two buildings it owns. A formal announcement detailing the changes will be posted on the organization's Web site (www.packard.org) and letters will be mailed to non-profits. The board decided to reduce next year's grants budget by $50 million to $200 million. In 2000, the foundation gave out $615 million in grants. Money for grants typically comes from the endowment earnings. The foundation will consolidate its major program areas. It will keep a strong focus on family-oriented and population control programs. But it will merge conservation and science resources, and will no longer consider arts and "organizational effectiveness and philanthropy" as major programs. Its cuts in its non-profit effectiveness programs -- an area it all but created -- are likely to resonate around the nation. The board will meet again in December to decide specific grants. The board also decided to begin a "long, slow and steady diversification program" by selling its shares of stock in HP and Agilent, which make up about 86 percent of the foundation's endowment, said George Vera, Packard Foundation chief financial officer. Seventy-one percent of the endowment is made up of stock in Hewlett-Packard, which has continued to fall. "George and I have been talking about it twice a day this year," Schlosberg said of CFO Vera. Foundation officials were quick to add that the decision to sell HP stock had nothing to do with the merger of Hewlett-Packard and Compaq Computer, which the foundation opposed. The issue had been discussed by board members for several years and was deemed "prudent financial stewardship," Schlosberg said. He expects that in four to five years, HP and Agilent will still make up at least 50 percent of the endowment. The foundation believes HP "has a great future," Vera added. Although HP co-founder Dave Packard made a "suggestion" that his foundation remain heavily invested in Hewlett-Packard, he never required it, Vera said. It is somewhat unusual, though not rare, for a foundation's assets to be so closely tied to one company. And, for a stretch during the 1990s, the strategy paid off. Then came the slide. The organization would now be ranked about 13th in the nation in assets. Known for innovation, Packard has poured millions of dollars into groups that provide contraceptives to poor people around the globe, advance wildlife preservation and promote organizational effectiveness among non-profits. Silicon Valley "would not have nearly the cultural environment that it has without the Packard Foundation," observed Alyssa Byrkit, development director of the San Jose Repertory Theatre, which received more than $100,000 from the organization this year. "They have been instrumental for years and years and years." The foundation, Schlosberg said, has no intention of abandoning local concerns. Still, for numerous non-profits already facing drops in donations and government spending cuts, the fundraising landscape suddenly looks even harsher. "They gave big amounts and multi-year grants. That's the best kind of funding," said Jeanne Labozetta, chief executive of Family and Children Services, based in Palo Alto and San Jose. Her agency received a $300,000 Packard grant. "We had hoped to go back to them for other funding," she said. "That's the scary part."

To: Oeconomicus who wrote (1776)	9/20/2002 5:19:02 PM
From: Ted Foster	Respond to of 4345

"How much did Carly pay for Bluestone?" I think the sum was $500 million. They went to Bluestone from BEA. Compaq had a good relationship with BEA so they went back to them after the merger. Ted

To: Oeconomicus who wrote (1776)	9/20/2002 6:52:01 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 4345

...When asked, today, Michael Dell responded, "What, me worry, we have just entered into a multi-year deal with Enron to automate accounting systems"!!!! 3Com switches off Dell deal By Ian Fried Staff Writer, CNET News.com September 20, 2002, 1:20 PM PT 3Com has canceled an agreement that allowed Dell to sell its line of networking switches, becoming the third supplier to end deals with Dell as the PC giant moves into new markets. Dell said it was notified Wednesday night of 3Com's decision. 3Com follows in the footsteps of Cisco, which ended its reseller agreement with Dell earlier this month. In July, HP also canceled a deal with the company after Dell confirmed its intent to enter the printer market. A 3Com representative was not immediately available for comment. Dell spokeswoman Mary Fad said the company is aware that its partners may choose to end deals as Dell enters their markets. The Austin, Texas-based PC maker has already expanded into projectors and networking gear and has said it's looking to begin selling its own printers and handhelds. "I think it goes with the territory," Fad said. "This is just the nature of what happens as you move into new markets. It's a business decision, and it makes sense that they would choose not to have us resell their products." 3Com will continue to make networking cards and modems that are used by Dell with its PC line, Fad said. Dell also has the option of getting 3Com switches through distributors if there is customer demand, she said. "This really will have no material impact on Dell," Fad said. "We have a full line of PowerConnect switches that we think compete very well with 3Com." 3Com first detailed the decision during its earnings conference call Thursday. "They have become a competitor," a 3Com representative said. "As a result, we made the decision to eliminate their status as a 3Com registered reseller." Related Quotes