EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
A workers’ compensation reform package won backing from a committee in the California Legislature. Gov. Davis said he would sign the reform if the Senate and Assembly OK it. The reform includes limiting outpatient surgery center fee reimbursement to 120% of the federal Medicare level, cutting doctor and hospital fees by 5% and capping the number of visits allowed to a chiropractor or physical therapist at 24. Savings to the strapped workers’ comp system are estimated from $3 billion to more than $5 billion. The Legislature was expected to vote on the proposed reform package Friday.
TECHNOLOGY
Santa Ana-based Ingram Micro Inc. said it will take a $20 million charge in the third quarter to reflect $25 million in outstanding bills owed by bankrupt customer Micro Warehouse Inc. Norwalk, Conn.-based Micro Warehouse sold its assets to CDW Corp. last week. Ingram said it plans to pursue its outstanding accounts … Irvine-based Rainbow Technologies Inc. said it completed its buy of Canada’s Chrysalis-ITS Inc. for $20 million. The acquisition is expected to boost Rainbow’s earnings in the fourth quarter … Garden Grove-based DPAC Technologies Inc. said it cut 20 of its 90 workers and will take a $450,000 charge to account for the layoffs. DPAC said the job cuts reflect less demand for its chip stacking memory modules … Irvine-based Lantronix Inc. said its operating loss in the quarter ended June 30 narrowed to $9.5 million, versus a loss of $78.1 million a year ago, on a 2.6% increase in sales to $11.8 million.
HEALTHCARE
Costa Mesa-based ICN Pharmaceuticals Inc. plans to double sales to $1.5 billion in the next five years while cutting costs $150 million to $200 million. As part of the cuts, ICN said it is reducing its manufacturing plants from 17 to as few as four and will lay off about 500 workers by year’s end. ICN has 4,000 employees … Fullerton-based medical device maker Beckman Coulter Inc. said it plans to buy DNA pooling technology from Woburn, Mass.-based Peoples Genetics Inc. for an undisclosed amount … Irvine-based generic drug maker Sicor Inc. won approval from the Food and Drug Administration to sell its amiodarone hydrochloride injection, used to treat irregular and abnormally fast heartbeats. The drug was developed by Madison, N.J.-based Wyeth … Western Medical Center in Santa Ana suspended Dr. Israel Chambi, chief of neurosurgery. Chambi has been accused of malpractice and carrying out unnecessary procedures. Western Medical is one of 10 OC hospitals owned by embattled Santa Barbara-based Tenet Healthcare Corp.
REAL ESTATE
The Santa Ana Planning Commission heard comments from about 30 people on Michael Harrah’s proposed 37-story, $75 million office building, One Broadway Plaza. Observations from residents and business owners on what would be OC’s tallest building will be incorporated into the final environmental impact report … Santa Ana’s Brandywine Development Corp. scaled back plans for a controversial housing development in Garden Grove after residents qualified a city referendum on the project. Brandywine now plans to build 12 homes that are expected to sell for about $700,000 each on Gilbert Street … The city of Orange’s City Council narrowly OK’d a plan by Newport Beach-based Fieldstone Communities Inc. to build about 180 luxury homes on the 109-acre former Sully-Miller mining site. Fieldstone promised residents a 7.5-acre equestrian arena and $500,000 for a community center as part of the plan. Opponents vowed to fight the development.
FINANCE
E*Trade Group Inc.’s Huntington Beach-based mortgage unit, E*Trade Mortgage, said it cut 163 loan processors amid the slowing refinance market. About 90% of the layoffs were hired in the past year … Irvine-based subprime lender New Century Financial Corp. set up a $2 billion short-term line of credit, which it plans to use to fund mortgage loans. Meanwhile, New Century said it made $3 billion in mortgage loans in August, a 127% increase versus a year ago and 36% higher than in July.
GOVERNMENT
California’s Department of Transportation has sued the city of Irvine over plans to develop the former El Toro Marine base into commercial, residential and parkland space. The suit alleges Irvine’s environmental impact report didn’t adequately study the impact that the Great Park development would have on traffic in the area … Meanwhile, Irvine’s City Council named a nine-member board to oversee development of the Great Park. Members of the Great Park Master Development Corp. include Irvine’s five council members plus four outsiders: Miguel Pulido, mayor of Santa Ana; Michael Pinto, board member of the Laguna Canyon Foundation; James Ray, owner of Sanderson J. Ray Development Corp.; and Richard Sim, former chairman of investment properties of The Irvine Company … Passenger traffic at John Wayne Airport rose 8% to 845,548 in August versus a year ago.
WHAT ELSE IS NEWS
Irvine-based Taco Bell Corp., a unit of Louisville, Ky.-based Yum! Brands Inc., was ordered to pay an additional $11.8 million to two Michigan men found by a jury to have created the Chihuahua character that the fast-food chain used in its advertising. The men already have been awarded $30.2 million, with the additional amount levied for interest. Taco Bell said it would appeal and has filed suit against its former ad agency, New York-based TBWA Chiat/Day Inc … Huntington Beach-based Quiksilver Inc. said its third-quarter operating income rose 30% to $21.4 million, versus a year ago, on a 44% jump in sales to $251.5 million … Santa Ana-based avocado distributor Calavo Growers Inc. said its third-quarter operating income fell 6.5% to $5.2 million, versus a year ago, on a 6.5% increase in sales to $81.4 million … Del-Jen Inc., a unit of Aliso Viejo-based Fluor Corp., won a pact to provide maintenance and construction services at the U.S. Naval Academy in Annapolis, Md. … Shares of Anaheim-based teen retailer Pacific Sunwear of California Inc. split 3-for-2.
