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America Online Inc. reported that it signed a record number of new subscribers Christmas Day, while its members spent a whopping $4.6 billion online during the holiday season. Despite the upbeat numbers, which are self-reported, AOL shares fell $2.41 to close at $32.39 on the New York Stock Exchange. The company’s flagship AOL online service added more than 70,000 subscribers worldwide on Christmas, about 30% more than last year, AOL said.
* Efficient Networks Inc., the No. 1 maker of modems for high-speed Internet connections on phone lines, said its fiscal second quarter missed forecasts after the company failed to receive orders from two key customers. Sales were between $100 million and $102 million in the quarter that ended Sunday, the company said. Efficient, which had fiscal first-quarter sales of $127.2 million, will discuss the shortfall when it posts second-quarter results Jan. 18.
* On2.com Inc., whose technology delivers television-quality video over the Internet, said it plans to cut about 40% of its work force as part of a plan to restructure operations and reduce costs. The New York-based company, which employs about 130 people, will fire 52 workers in Los Angeles, San Francisco, New York and Albany, N.Y. On2.com expects to reduce operating costs by about $10 million a year.
* Priceline.com Inc. and W.R. Berkley Corp. said they are dropping plans to create a company to sell auto insurance over the Internet because market conditions would make it difficult.
* Two senior editors and a writer for APBNews.com quit after the company failed once again to make a payroll payment. The crime news Web site will suspend publishing for a week while it reorganizes its editorial staff.
