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Byline: -- Staff and Wire Services

CBS operating earnings increase

NEW YORK -- CBS Corp. reported lower net earnings Thursday from a year ago, when it was still combined with Viacom Inc., but operating earnings rose. The company also announced a share buyback of up to $1.5 billion.

Investors have been pressing CBS to say what its plans are for its growing cash stockpile, which is currently $3.2 billion, up from $1.7 billion a year ago. The cash has been coming from good operating results as well as the sale of its parks business and more than two dozen radio stations.

CBS Chief Executive Leslie Moonves told analysts on a conference call that the company would continue to look for smaller acquisitions, contribute more to its pension plan and continue to increase its dividend in line with earnings growth. But he stressed that the company has ``no plans'' for major acquisitions.

MS, Novell call software truce

SAN FRANCISCO -- Microsoft Corp. has embraced Novell Inc.'s open-source software platform, forming a technological truce between two longtime antagonists who want to make it easier for the still-dominant Windows operating system and the increasingly popular Linux system to work together.

The agreement announced Thursday between the world's largest seller of patent-protected software and a leader in the open-source software movement has potentially important business, technical and legal implications. Financial terms of the arrangement weren't disclosed.

The alliance is primarily aimed at the growing number of major companies and government agencies that rely on elements of Redmond, Wash.-based Microsoft's Windows and Linux to run their computers.

Gateway has cut nearly 100 jobs

Struggling computer maker Gateway Inc. said Thursday it has eliminated nearly 100 jobs as part of a cost-cutting effort designed to save between $30 million and $35 million a year.

The company, which also makes plasma TV sets and other electronic devices, said it will take a charge in the fourth quarter for severance costs. The jobs were corporate positions, including some in the marketing, accounting and legal departments, Gateway said.

The announcement came as the Irvine-based company reported slightly higher third-quarter earnings on lower revenue and flat personal computer sales.

Gateway reported net income of $18.2 million, or 5 cents per share for the quarter ended Sept. 30, compared to $15.1 million, or 4 cents per share, in the same period last year.

Cingular starts phone downloads

Cingular Wireless on Thursday launched the first wide-ranging subscription music service for mobile phones, striking deals with XM Satellite Radio, Yahoo Music, Napster and eMusic.

By paying a monthly fee ranging from $9 to $15, Cingular customers can listen to commercial-free satellite radio or choose from several million songs at three of the nation's more popular music-download sites. Short clips of songs can be sampled for free and, in the case of Napster, can be purchased for 99 cents each. When music is purchased via a handset, the songs are sent to home computers, from which they can then be transferred at a click of a button to a customer's phone, the companies said.

Delta granted plan extension

NEW YORK -- A bankruptcy judge granted Delta Air Lines Inc. a deadline extension to file its reorganization plan as it tries to emerge from Chapter 11 by the middle of next year.

The nation's third-largest airline now has until Feb. 15 to file a plan and until April 16 to solicit approval for the plan from creditors, according to a court document dated Oct. 31. It is the third extension Delta has sought.

The airline entered bankruptcy protection Sept. 14, 2005, amid industry problems stemming from tougher competition and higher fuel costs. Delta is pursuing cost cuts as part of its overall plan to restructure and become more competitive.

Last month, Judge Adlai Hardin of the Southern District of New York approved a Delta plan to cut retiree health benefits by $50 million annually.