America Online (AOL): The Internet service provider and Time Warner (TWX) are close to an agreement with U.S. regulators that would force them to open high-speed cable lines to one or more Internet rivals in cities served by Time Warner, The Wall Street Journal reported. The agreement would enable the companies' merger to proceed. AOL rose $1.51, or almost 3 percent, to $54.94. Shares of Time Warner rose $2.77, or about 3 percent, to $82.20.
3Com (COMS): The maker of computer-networking equipment said it will pay $259 million to settle a shareholder suit. The class-action complaint alleged 3Com misled investors about its 1997 acquisition of U.S. Robotics. 3Com fell 25 cents, or about 1 percent, to $16.94.
En Pointe Technologies (ENPT): The seller of business-to-business information technology products said it won a supply contract with the state of Minnesota worth up to $150 million a year. Shares of En Pointe rose $2.88, or 56 percent, to $8.
Iomega (IOM): The maker of the Zip storage drive said that IBM agreed to include Iomega data backup software with its Microdrive miniaturized hard disk. Iomega rose 47 cents, or almost 8 percent, to $6.45.
Rambus (RMBS): Memory module manufacturer Kingston Technology will spend approximately $75 million to make sure small PC makers aren't scared away from the Pentium 4 by the high cost of Rambus memory. Under the program, Kingston will essentially give rebates to small PC manufacturers and computer dealers who build Pentium 4 systems containing Rambus memory. Shares of Rambus rose $4.75, or about 7 percent, to $69.69.
Turnstone Systems (TSTN): The phone-equipment maker cut its fourth-quarter revenue estimates Monday, citing sectorwide cutbacks by local-phone companies. The company said it expects revenue of $38 million in the quarter ending December. Shares of Turnstone fell $17.63, or 59 percent, to $11.88.
VA Linux Systems (LNUX): The maker of software and products for the Linux computer operating system said Monday its fiscal first-quarter results would not meet expectations because of slower-than-expected sales growth from new customers "in the dot-com sector." The company said it expects to lose between 14 cents and 16 cents per share. Analysts polled by First Call/Thomson Financial expected the company to lose 9 cents per share. Shares of VA fell $11.88, or about 39 percent, to $18.13.