Raytheon gets $134m Army contract

Raytheon Co., the world's largest missile maker, received a $134 million award from the US Army for engineering work on the Patriot system. Work under the contract will be completed by Jan. 9, 2009, the Army said. It didn't specify what type of engineering services Waltham-based Raytheon would provide. Raytheon makes the radar and ground controls for Patriot missiles. Engineering work on the Patriot system in Iraq was cited as one reason Raytheon's integrated defense systems unit reported a 25 percent rise in sales to $791 million last quarter. That performance helped boost the company's total fourth-quarter profit 40 percent to $217 million. (Bloomberg)

Cedar Point, Motorola to collaborate

Cedar Point Communications Inc. of Derry, N.H., a start-up maker of equipment for cable television companies to provide phone service, said it signed a "strategic collaboration" agreement with Motorola Inc. incorporating Cedar Point gear in Motorola cable systems. Similar local alliances between small start-ups and industry giants have often been precursors to acquisitions, but Cedar Point and Motorola had no comment on plans beyond the joint development and marketing pact. (Peter J. Howe)

Polychromix closes $8m in funding

Polychromix Inc., a Woburn maker of optical telecommunications service delivery systems, said it closed an $8 million round of venture funding that brings its total capital raised to more than $15 million. Siemens Venture Capital, a unit of the German technology conglomerate, invested along with Seed Capital Partners, Vanguard Ventures, Navigator Technology Ventures, and Pyramid Technology Ventures. Polychromix sells components and software to telecom equipment makers to automate the process of activating and managing high-speed optical connections for big telecom carrier customers. (Peter J. Howe)

Advent buys Argentine courier company

Advent International Corp., a Boston-based buyout company, bought OCA SA, one of Argentina's two biggest courier companies, from a group of banks that seized it from its bankrupt owner, Advent said. Closely held Advent acquired OCA from nine banks, including Deutsche Bank AG and Citigroup Inc., that seized the company from Exxel Group, Latin America's biggest buyout fund, in the 1990s. Advent said it is assuming $280 million in debt. It declined to elaborate on terms. (Bloomberg)

Tweeter describes lawsuit as meritless

Home electronics retailer Tweeter Home Entertainment Group Inc. acknowledged that chief executive Jeffrey Stone entered into short-swing transactions, but said the gains made from such deals were inadvertent and repaid in full to the company. Under securities law, insiders holding more than 10 percent of a company's shares can't gain through the purchase and sale of that stock within a six-month period. The gains made by Stone are the subject of a lawsuit against Tweeter that was reported yesterday by the Boston Herald. In response to the article, Canton-based Tweeter issued a press release saying it considers the claims to be meritless. The suit, filed on behalf of shareholder Deborah Donoghue, alleges Stone didn't repay the entire amount of the gains made in his short-swing transactions. The suit claims that he still owes about $72,500. (Dow Jones)

ScanSoft shares jump after forecast

Shares of ScanSoft Inc. rose sharply after the maker of speech and imaging systems raised its earnings and revenue forecasts for the most recent quarter, citing strength from a recently acquired business. Shares rose 40 cents, or 7.8 percent, to $5.50. Peabody-based ScanSoft projected fourth-quarter earnings of 4 to 6 cents a share, excluding charges from the amortization of acquisition-related intangibles and restructuring. Previously, Scansoft predicted earnings per share of 3 to 5 cents, excluding items. Thomson First Call's average analyst estimate called for earnings of 4 cents a share. ScanSoft said SpeechWorks International Inc., a maker of voice-recognition systems acquired in August, posted strong revenue in the latest quarter. (Dow Jones/AP)

THE NATION

Flight attendants rap UAL over benefits

United Airlines flight attendants launched a picketing and leafleting campaign at major US airports, accusing the carrier of using "bait-and-switch" tactics to reduce retirement benefits while restructuring in bankruptcy. The flight attendants also asked in a motion prepared for federal bankruptcy court that an outside examiner be appointed to investigate United's plan to "defraud" thousands of flight attendants out of their retirement benefits -- a claim the airline vigorously denies. The union maintains United is reneging on a written agreement to give more benefits to flight attendants who retired before July 1, intentionally misleading the 2,500 personnel who did so before the deadline. (AP)

Microsoft issues fix for `URL spoofing'

Microsoft Corp., which is bracing for an attack against its website by computers infected with the Mydoom virus, issued a patch for what it called a critical flaw in its Web browser software. Microsoft posted on its website a fix for its Internet Explorer Web browser that prevents software coders from making any website address look like that of another, a tactic scammers have used to trick individuals into disclosing personal banking information. Microsoft first became aware of the flaws in December, through postings on a security website, said Microsoft security program manager Mike Reavey. Microsoft said it was responding to increased demand from customers for a way to prevent faked websites, known as "URL spoofing." (Bloomberg)

Gadzooks said to seek Ch. 11 protection

Gadzooks Inc. plans to file for Chapter 11 bankruptcy protection soon, after the troubled clothing store chain suffered a sluggish holiday shopping season, said two sources familiar with the plan. Gadzooks, a chain of more than 400 clothing stores aimed at teenage girls, has posted a sharp drop in sales in recent months. Sales at stores open at least a year fell by 25 percent for December, it said last month, adding that it would close up to 35 stores as a result. The sources said a bankruptcy filing will give the company time to come up with a plan to revive sales and profits. Company officials did not return phone calls. (Reuters)

Comcast, T-Mobile link for `WiFi' access

Comcast Corp. began offering its high-speed Internet customers reduced-price access to T-Mobile USA Inc.'s national network of 4,000 "WiFi" wireless access points at locations including Starbucks coffee shops. For $10, Comcast cable modem subscribers can buy one day of access each month. Besides Starbucks, T-Mobile also offers WiFi service at many Borders book shops, Kinko's copying outlets, and airport clubs operated by American Airlines, United Airlines, and Delta Air Lines. (Peter J. Howe)

Calpers wants Emerson chairman ousted

The California Public Employees' Retirement System, the largest US pension fund, wants shareholders to oust Emerson Electric Co. chairman Charles Knight and four other directors because of alleged business conflicts. Calpers, which owns 2.26 million Emerson shares, will vote today against the reelection of Knight and board member Edward Whitacre, chief executive of SBC Communications, because the men sit on each others' boards and help determine their respective compensation. It also opposes new terms for directors Carlos Fernandez, Rozanne Ridgway, and Gerald Lodge, and wants to oust KPMG LLC as Emerson's auditor. With $155 billion in assets, Calpers is using its clout to stop policies it believes aren't shareholder-friendly, spokesman Brad Pacheco said. (Bloomberg)