EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
Santa Ana-based First American Corp. said it plans to shed 2,000 workers, or 7% of its staff, amid a slowing of the once-hot real estate market. The title insurer said its OC workers wouldn’t be greatly affected by the cuts. First American said its third-quarter income before taxes more than doubled to $260.8 million, versus a year earlier, on a 43% jump in revenue to $1.7 billion (see related story, page 52) … Baltimore-based SafeNet Inc. made a $457 million stock offer for Irvine-based encryption software and device maker Rainbow Technologies Inc. Rainbow, which has 470 workers, including 170 in OC, had sales of $33 million in the June quarter. The deal is set to close in the first quarter next year, with Rainbow shareholders owning 43% of the company, which will take the SafeNet name and Baltimore headquarters.
TECHNOLOGY
Irvine-based Microsemi Corp. said it plans to close its Santa Ana chipmaking plant and cut about 285 workers. Microsemi has announced eight plant closings in the past three years and plans to shutter three more in the next few years. It had 15 plants when the restructuring began. Work at the Santa Ana plant will be moved to Garden Grove. Microsemi said the move could save $8 million to $12 million a year … Lake Forest-based Western Digital Corp. said operating income in the September quarter fell 81% to $4.9 million, versus a year ago, on a 23% jump in sales to $714.2 million. The disk-drive maker said its income was affected by its buy of Read-Rite Corp. … Shares of Santa Ana-based SimpleTech Inc. fell 9% to 7.15 Friday after the company’s $10 million stock offering was priced at $7 a share.
HEALTHCARE
Irvine-based defibrillator maker Cardiac Science Inc. said it plans to buy most of the assets of privately held Complient Corp. in a stock deal worth about $46 million. Cleveland-based Complient provides training in the use of defibrillators and cardiopulmonary resuscitation … San Clemente-based Biolase Technology Inc. said the Food and Drug Administration approved another use for its LaserSmile device that whitens teeth.
REAL ESTATE
Irvine-based Standard Pacific Corp. said it bought Jacksonville, Fla.-based Coppenbarger Homes Inc. for an undisclosed amount … The number of OC home refinancings in September fell 17% to 22,161, versus August, according to DataQuick Information Systems … The city of Brea said it would spend $250,000 to hire Lake Forest-based public relations shop Waters & Faubel Inc. in a bid to fight development of hillside land that buffers the city from Los Angeles County. Several projects are in the works for the area, including Aero Energy LLC’s 3,600-home development … The county plans to sell $60 million worth of bonds to build roads, drains and fire and sheriff’s facilities at Ladera Ranch in South County. The bonds will be repaid by homebuyers in the area.
GOVERNMENT
The Transportation Corridor Agencies postponed a decision on merging the money-strapped San Joaquin Hills (73) Toll Road with the Foothill/Eastern (241/261/133) Toll Roads. A merger could stave off looming debt problems for the San Joaquin Hills road but can’t yet go forward because key financial components of a restructuring plan, such as a bond rating on the new debt, is unknown … Orange County Supervisors named Greeley, Colo.-based Hensel Phelps Construction Co. to finish building a $6 million fire station at John Wayne Airport. Original builder JM Contracting of Downey walked off the job. Cost of the project is $2.7 million over budget. Work is set to finish in December 2004, 18 months behind schedule … Former OC supervisor Gaddi Vasquez quit as director of the Peace Corps after less than two years on the job. He cited a desire to rest and spend more time with his family.
WHAT ELSE IS NEWS
Work stoppages at the Southland’s Ralphs, Albertsons, Vons and Pavilions supermarkets continued, with no talks between management and labor planned as of late last week … A case against Foothill Ranch-based Wet Seal Inc. requiring the teen retailer to pay wages for workers at its clothing makers was postponed to Nov. 17. The suit is being closely watched in the garment industry, as it seeks to hold a retailer responsible for working conditions at companies it contracts work out to. The state labor commissioner found Wet Seal responsible for $90,000 of $240,000 owed to workers at DT Sewing in Los Angeles … Foothill Ranch-based Oakley Inc. said its third-quarter operating profit rose 9.6% to $21.1 million, versus a year earlier, on a 9.9% gain in sales to $145 million. Oakley said sales of its sunglasses were weaker than expected but that revenue from its apparel and footwear lines was strong (see related story, page 57) … Irvine-based Prandium Inc.’s Hamburger Hamlet chain filed for bankruptcy, joining its Chi-Chi’s and Koo Koo Roo chains, which already have filed for protection … Costa Mesa-based Ceradyne Inc. said it won a $10.6 million order from the Army for small arms protective body armor.
ECONOMIC INDICATORS
Up: Orange County’s housing market in September, with the median price of homes sold up 17.1% to $431,000, versus a year earlier, and the number of sales rising 28.8% to 4,956, according to DataQuick Information Systems.
Down: Business sentiment among OC executives, with 55% of survey respondents expecting to post better results in 2003 than last year, versus 58% in an earlier study. A quarter of executives surveyed said they plan to cut workers by the end of the year, up from 12% earlier, according to a survey by the Graduate School of Management at the University of California, Irvine.
