FRAMINGHAM (01/28/2000) - Companies Nix MergerOntrack Data International Inc. last week said its merger agreement with storage management vendor Legato Systems Inc. has been canceled. Palo Alto, Calif.-based Legato said in November that it would acquire Eden Prairie, Minn.-based Ontrack for $134 million. Joan Dyer, an Ontrack spokeswoman, said the termination was "mutual." Earlier this month, Legato said it would recalculate its third-quarter earnings.

Nortel Earnings Rise

Nortel Networks Corp. in Brampton, Ontario, reported last week that fourth-quarter 1999 revenue was up 21%, to $6.99 billion, compared with the same quarter in 1998. Net earnings from operations were up 58% for the quarter and 62% for the year. But the company reported a $197 million net loss for last year after figuring in acquisition costs and one-time gains and charges.

AT&T to Cut Top Jobs

AT&T Corp. spokesman Burke Stinson last week confirmed reports that the company's top ranks may be trimmed by at least 20% but wouldn't provide details. Lisa Pierce, an analyst at Giga Information Group Inc. in Cambridge, Mass., said the cuts, which are likely to come in low-growth areas such as consumer services, would be unlikely to hurt services to business customers.

Meanwhile, AT&T said its revenue for last year was $64.14 billion, up 6.2% from 1998 on the strength of growth in wireless and business services. Earnings were $1.84 billion for last year, up from $1.79 billion the previous year.

Dell Warns of Shortfall

Dell Computer Corp. in Round Rock, Texas, said last week that it will report lower-than-expected earnings and revenue for the quarter ended Jan. 28. Dell cited shortages of key products and slower-than-expected corporate sales in the wake of the year 2000 date change.

Dell said earnings will be about $430 million and revenue about $6.7 billion - 30% higher than the same period a year ago but lower than the company had anticipated.

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