Electronic Arts became pilot customer of Kontiki, company that offers secure network for delivering digital media files over Web. Kontiki said its network allowed its customers to deliver entertainment and other TV-quality content direct to users’ PCs. Other pilot customers of Kontiki include Amazon.com, LivePlanet, MP3.com, Palm, Sony Pictures Entertainment, TiVo, Verisign. Companies said Kontiki services might dramatically lower their cost of sales, marketing, training and travel, while increasing revenue and customer royalty. Preview of pilot network is available by downloading Kontiki at www.kontiki.com. Following pilot period, first production release of Kontiki Delivery Network is expected later in 4th quarter.

Corning posted 3rd quarter net loss amid restructuring and slumping revenue that stretched across entire company from telecommunications to CRTs. Glass maker, which increasingly has relied on optical fiber and components related to telecom to drive its business, said it had net loss of $220 million, down from year-earlier net income of $254 million. Revenue plunged 21% to $1.51 billion. It said latest results involved $339 million pretax charge that included $236 million for writing down fixed assets in closing plants related to telecom business in North Wales, U.K., and Henrietta, N.Y. Charge also covered layoffs that are expected to affect 12,000 employees by end of year. Restructuring will yield $400 million in annualized savings, Corning said.

First plausible evidence is emerging of impending price breaks on DLP-based rear-projection TVs as LG Electronics, Optoma and Vestel prepare models for 2002 introduction, possibly at tags as low as $3,000-$5,000.

David Margolese, who resigned last week as CEO of Sirius Satellite Radio (CED Oct 17 p1), qualifies for $5-million severance payment, company said Fri. in SEC filing. Margolese will receive $200,000 in annual fee for serving as Sirius non- executive chmn., and his stock options have been extended through April 16, 2007, filing said. Margolese has 2-year noncompete clause in employment agreement, Sirius said.

Microsoft late last week once again said it was on track to ship 1-1.5 million Xbox videogame consoles in N. America by year end. But Calabasas, Cal., game maker THQ predicted installed base of Xbox by year end instead actually would wind up being less than million.

Zoran 3rd quarter net income narrowed to $2.7 million from $4 million year ago but revenue increased to $30.4 million from $24 million. Operating income plunged to $827,000 from $2.5 million amid price competition in DVD market. Product sales, which include those from Vaddis DVD decoder ICs, jumped to $28.9 million from $20.3 million. Licensing and development revenue declined to $1.4 million from $3.6 million. DVD ICs accounted for 84% of revenue in quarter, followed by digital camera ICs and sensors (10%), PC video (5%), audio (1%) decoders. Inventory rose to $19 million from $17.4 million Dec. 31. As it released earnings, Zoran said it was moving to discontinue Vaddis III DVD decoder IC, replacing it by year-end with Vaddis IV, which adds video encoder and DTS audio. Zoran also is pushing Vaddis V DVD multimedia processor, which recently was installed in Sharp and Toshiba progressive scan DVD players. Vaddis V has 135 MHz, 32- bit Risc processor, MLP, DTS and Dolby Digital decoding and advanced trick play features such as smooth scan and zoom. Despite phasing out Vaddis III, Zoran forecast it would account for 30-40% of revenue in 4th quarter, while Vaddis IV has 40-50% and Vaddis V, 10-30%.

Thomson will enter videogame peripherals market in 2002’s first quarter with wired and wireless controllers and other accessories for Microsoft Xbox and Sony PlayStation 2 (PS2). Bill Brown, product planning mgr. in Thomson’s Accessories & Components Div., Deptford, N.J., said his company also was looking at adding Nintendo Game Boy Advance products to line that eventually could number 40 SKUs by end of 3rd quarter. “It will be a soft introduction,” Brown stressed: “We won’t have a full line at introduction. It will start in Q1 and continue through the year.”

Our evaluation of Microsoft’s Windows XP operating system (OS) in advance of its Oct. 25 debut discovered much to like -- and little cause for complaint. Following frank and open briefings by Microsoft, we test-drove new O/S for week and found features such as System Restore, printing options, program compatibility options and Remote Assistance to be useful.

Cyberian Outpost said 2nd quarter loss widened to $7.3 million from $6.7 million year ago in what was likely be its last quarter as publicly traded company. Net sales declined to $27.5 million from $45.2 million year ago and gross margin to $5.4 million from $10.7 million. In quarter, Cyberian transferred $600,000 to Tweeter as part of joint venture that’s being discontinued in wake of expected sale of online retailer to Fry’s Electronics. Tweeter also received $84,000 as share of net income of Tweeter@Outpost.com. Cyberian ended quarter with $551,000 in cash and cash equivalents, but since has received $13 million loan from Fry’s pending completion of acquisition. Cyberian also reversed $777,000 of restructuring charges incurred in first quarter as it negotiated termination of lease for 17,000-sq.-ft. facility in Bethel, Conn. Cyberian paid Berkshire Industrial Corp. $100,000 in Sept. and Oct. to cover amount remaining under lease. Cyberian ended quarter with 1.5 million customers. Shareholders meeting to vote on proposed sale to Fry’s is scheduled for Nov. 8 in Danbury, Conn.