EXECUTIVE SUMMARY
Compiled by Roger Bloom
ENERGY
The state Public Utilities Commission proposed to spread the $10 billion state energy debt equally among utility customers, a move that would shift more of the burden to Southern California compared with prior proposals The state did not need to use public money to purchase electricity in November and December, covering its costs with money collected from utility customers The state Public Utilities Commission approved a plan for Southern California Edison to repay $1.1 billion owed alternative energy producers by May 31.
TECHNOLOGY
Lantronix Inc., Irvine, acquired Premise Systems Inc., Redmond, Wash. Broadcom Corp. chief executive Henry Nicholas said he expects the company to return to profitability this year and is “optimistic” it can achieve a 50% sales growth rate by the end of the year Newport Corp., Irvine, said it expects to post better-than-expected fourth-quarter net income on less-than-expected revenue Rainbow Technologies Inc., Irvine, said it expects to post a profit for the fourth quarter, and it was upgraded to “buy” by Dougherty & Co. SRS Labs Inc., Santa Ana, signed a deal to license its audio-enhancement technology to National Mobile Television Inc. (see the Technology column, page 18) DPAC Technologies Inc., Garden Grove, said it expects orders totaling $3.2 million in the first quarter and its shares rose 22% to 4.34 on the news Pennsylvania-based SPS Technologies will close its Salt Lake City plant and move some production to its Santa Ana facility The liquidation of bankrupt Huntington Beach-based Flashcom Inc. will net creditors about 2 cents on the dollar, the company’s bankruptcy lawyer said Officials of Microsemi Corp., Irvine, rang the opening bell at the Nasdaq exchange Jan. 7.
HEALTHCARE
Beckman Coulter Inc., Fullerton, and Merck & Co. entered a cross-licensing pact to share vaccine-related technology, marketing rights and study data Joseph Konowiecki was named executive vice president and general counsel at Santa Ana-based PacifiCare Health Systems Inc.
GOVERNMENT
The Supreme Court ruled that employees who are able to perform tasks “central to daily life” or have an injury that is likely to heal do not qualify for protection under the Americans With Disabilities Act Supervisor Cynthia Coad was re-elected chairwoman of the Board of Supervisors for a one-year term Anaheim’s bed tax receipts rose 32% in November, year-to-year Former Huntington Beach councilman and mayor Dave Garofalo pleaded guilty to one felony and 15 misdemeanor conflict-of-interest charges and was put on three years’ probation, fined $49,700, barred from holding public office and ordered to perform 200 hours of community service An appellate court upheld a lower court decision striking down OC’s Measure F, which would have required voter approval by a two-thirds majority of any new airport or landfill A poll conducted for the Orange County Business Council found 54% of OC respondents opposed to the proposed El Toro airport, while about half favored the so-called Great Park plan The state Department of Insurance denied an insurers’ request to exclude terrorism coverage from commercial and homeowner policies, indicating it would OK a modified request to delete the coverage from commercial policies only.
REAL ESTATE
Los Angeles Lakers guard Kobe Bryant purchased a home in Newport Coast for $4 million from sports agent Dwight Manley Price Legacy Corp., San Diego, developer of the proposed Garden District of Anaheim, formerly Pointe Anaheim, is in talks with the city on a plan to share sales tax revenue from the $600 million project as a means of funding it Robert Griffith was promoted to executive director of Cushman & Wakefield’s OC office The Coastal Commission staff said in a letter to Dana Point officials that it could not support the proposed 125-home Headlands development plan because it does not include enough environmental protections.
FINANCE
Fidelity National Financial Inc., Irvine, acquired an 8.3% stake in Lending Tree Inc., Charlotte, N.C. Cole A. Bartiromo, 17, of Mission Viejo, was charged by the Securities and Exchange Commission with defrauding investors of more than $1 million through his “Invest Better 2001” Web site.
WHAT ELSE IS NEWS
Del Taco Inc., Laguna Hills, plans to open 120 restaurants in the West this year and has signed promotional deals with eight professional sports teams in four states Same-store sales for Irvine-based Taco Bell Corp. increased 8% in the fourth quarter from the fourth quarter of 2000, according to parent Tricon Global Restaurants Wet Seal Inc., Foothill Ranch, said it expects earnings to rise 15% in its fiscal 2002, which will begin Feb. 1 In December, 570,000 passengers passed through John Wayne Airport, 5.7% fewer than in December 2000; Alaska Airlines will initiate scheduled flights between John Wayne Airport and Vancouver, British Columbia, in April A fire of suspicious origin caused $1 million in damage to MB Polishing, Fullerton Fountain Valley-based Hyundai Motor Co. has replaced 290 engines in 2001 model year Santa Fe sport utility vehicles that failed because of a design flaw, but says it does not plan to recall the some 7,000 vehicles that have the defective engines Orange County Register pressroom and production workers voted 70-22 against joining the Graphics Communication International Union Rizzoli Bookstore in South Coast Plaza was closed by its Italian parent company, publisher HdP, which has decided to exit the retail book sector.
Tony Tavares resigned as president of Anaheim Sports Inc. and his duties were assumed on an interim basis by Walt Disney Parks and Resorts chairman Paul Pressler, pending a search for a replacement (see Editorial on page 30) Ford Motor Co. said it will scrap the Continental, Villager and Cougar lines of its Irvine-based Lincoln Mercury division as part of a restructuring in which it also will close five plants and lay off 35,000 mostly blue-collar workers; Ford’s Irvine-based Premier Auto Group, which includes the Lincoln Mercury division, sold 836,000 cars in 2001, down from 866,000 in 2000 Bill Gross, managing director of Pacific Investment Management Co., Newport Beach, said he expects the dollar to weaken this year, accelerating inflation, hurting stock prices and driving up debt yields Superior Court Judge William McDonald struck down Irvine’s approval of a 10 million-square-foot office project proposed by The Irvine Company, saying it was inconsistent with the city’s general plan and had not been subjected to proper environmental review.
