Compiled by Alisha Gomez
TOP STORIES
In a 3-2 vote, the Anaheim City Council last week approved a plan by Irvine-based SunCal Cos. to build 1,500 homes on land near Disneyland Resort. Walt Disney Co., backed by Anaheim Mayor Curt Pringle, has contested the development. Their most recent opposition is through a Disney-led initiative, which would bar non-tourist development in the area around Disney’s theme parks unless it’s approved by Anaheim voters. The group has 30 days to gather 13,200 signatures in an effort to overturn the council’s decision. It’s close to collecting enough signatures. Pringle, State Senator Lou Correa (D-Anaheim), Orange County Clerk-Recorder Tom Daly (former mayor of Anaheim) and Lucy Dunn, chief executive of the Orange County Business Council, back the group’s efforts. SunCal’s plan to build homes is on land zoned for a hotel next to a possible third Disney park.
Beckman Coulter Inc., the Fullerton-based medical testing company, said last week that Biosite Inc. of San Diego prefers Inverness Medical Innovations Inc.’s $1.64 billion takeover offer over Beckman’s original $1.55 billion bid. Beckman has until Wednesday to match Massachusetts-based Inverness’ $90 a share cash offer or bid higher. Beckman Coulter will receive a $50 million termination fee if Biosite backs out of its deal with Beckman and accepts the Inverness bid. Beckman said it’s considering its options and will “determine how to best serve its shareholders” and is not obligated to respond to Biosite’s notice.
Irvine-based Broadcom Corp. saw first-quarter profits plunge by nearly half and had flat revenue versus a year earlier. The results still beat the expectations of analysts, who had tempered their views given the industry’s buildup of unsold chips going back to last year. Using standard accounting, Broadcom’s profits were $61 million, down from about $118 million a year earlier. Excluding stock compensation, acquisition costs and other charges, profits were $175 million, down from about $222 million in the year-ago quarter. Wall Street was expecting a profit of about $148 million before charges. The company reported revenue of $901.5 million, above expectations of $897 million.
Britain’s Filtronic PLC said it sold the last of its stake in Santa Ana-based Powerwave Technologies Inc. that it gained through a deal with the maker of wireless network gear. Last year, Powerwave bought a unit of Filtronic, called Filtronic Comtek, for about $185 million in cash. Filtronic also got 17.7 million Powerwave shares in the deal. It began selling them off in chunks last year. It sold about 4.8 million shares in December and 6.9 million early last week. The balance, about 3.4 million shares, also were sold off last week. Filtronic netted about $20.4 million from the last 3.4 million shares, according to The Daily Times. The total raised was about $107 million.
Shares of Santa Ana medical device maker Advanced Medical Optics Inc. rose last week after the company reported better-than-expected first-quarter results and reaffirmed guidance for the year. Advanced Medical posted a $12.6 million profit in the first quarter, up 365% from a year ago. Sales were up 5.6% to $251.7 million. Analysts expected a profit of $9.6 million and $243 million in revenue. The device maker reaffirmed its 2007 profit forecast of $83.6 million to $92.5 million. The company also said it still expects sales of $1.15 billion to $1.18 billion. Wall Street is looking for earnings of $86 million and $1.14 billion in sales.
Edwards Lifesciences Corp. said last week that its first-quarter profit declined on higher costs. The Irvine heart valve maker said its earnings dropped 28% to $33.2 million in the first quarter, compared to a year ago. Sales were up 3% to $264.1 million. Analysts expected Edwards to earn $32.4 million on sales of $269.3 million.
Irvine’s New Century Financial Corp. received bankruptcy court approval to auction off its loan lending unit within a week, the company said last week. Delaware’s bankruptcy court has set Wednesday as the due date for bids for the shuttered unit, starting at minimum of $1 million, according to reports. New Century also was given court approval to move forward with the sale of its subsidiary, Access Lending Corp.
ECONOMIC INDICATORS
Mixed: The price of an Orange County detached home increased from February to March but was down 1.5% from the median price seen a year ago, the California Association of Realtors said last week. The median price for an existing, detached home sold here in March was $706,650, up 2% from February, according to the association. The pace of local home sales picked up last month. Sales here in March increased 33.4% from February, but were down 14.9% from a year ago. The realtor association excludes condominiums from its figures.
