Compiled by Julie Leupold
TECHNOLOGY
Irvine chipmaker Broadcom Corp. is set to tack on an additional $40 million in royalty fees to its top line, upping its fourth-quarter revenue forecast to $1.15 billion to $1.3 billion. The revenue is what Broadcom collected in licensing fees from a July deal with cell phone service provider Verizon Wireless, a unit of New York’s Verizon Communications Inc., in a dispute over chips from San Diego rival Qualcomm Inc. The agreement allows Qualcomm’s chips, which were found to infringe on Broadcom’s patents, to continue to be built into Verizon’s phones. Qualcomm and Broadcom still haven’t settled their dispute.
Irvine-based heart valve maker Edwards Lifesciences Corp. is paying $27 million for heart surgery products from Johnson & Johnson’s Ethicon unit. The company, the leading maker of heart valves, is buying catheters, retractors and other devices from Ethicon. They’re expected to generate sales of $20 million in 2008. Wall Street expects sales of $1.15 billion for Edwards next year. The deal is set to close by the end of the year (see story, page 12).
Anaheim-based Alliance Imaging Inc., a provider of medical scanning services to hospitals and doctors offices, is paying $36 million for eight cancer treatment centers. Alliance is buying the centers, in the South and Central part of the country, from Bethesda Resources Inc., a unit of New York’s Sonix Medical Resources Inc. The company is taking on some Bethesda debt as part of the deal. It expects the centers to generate about $14 million a year in revenue. Alliance is projected to have sales of $445 million this year (see story, page 12).
Irvine-based BioLase Technology Inc.’s shares lost nearly half of their value last week after a widened third-quarter loss and the departure of its chief executive. BioLase said its loss for the third quarter widened to $3.5 million from a loss of $1 million a year earlier. Revenue fell 25% to $12.8 million. BioLase named Federico Pignatelli, one of its independent directors, to replace Jeffrey Jones, who resigned as chief executive.
Irvine-based Allergan Inc. reported higher third-quarter profits that met Wall Street expectations but said it sees fourth-quarter profit coming in just below what analysts had expected. For the third quarter, Allergan, which makes eye and skin drugs as well as medical cosmetic products, reported a profit of $179 million, up 23% from a year earlier. Sales rose 23% to $994 million, easily beating Wall Street’s expected $960 million. For the current quarter, Allergan said it sees sales of $975 million to $1 billion. Analysts on average had expected $981 million in sales. The company forecasts profits of $172 million to $175.6 million, versus Wall Street’s expected $178.6 million.
APPAREL
Huntington Beach-based Quiksilver Inc. is “very seriously looking” at four Orange County locations outside of Huntington Beach. Quiksilver currently spans 200,000 square feet in Huntington Beach. DC Shoes, which is owned by Quiksilver and is currently in Vista, spans 50,000 square feet. The company eventually would like the two to be on the same campus, according to spokesman Joshua Katz. By 2010, the company would like to expand to 500,000 square feet with the option of possibly growing to 1 million square feet sometime down the road, Katz said.
REAL ESTATE
Newport Beach homebuilder William Lyon Homes Inc. said last week it is cutting its staff by 25% this month, to realign the company for “expected future lower levels of volume.” The news came as the homebuilder reported a net loss of $60 million in the third quarter, compared to profits of $10.5 million a year ago. The company posted a pre-tax loss of $78 million in the second quarter. William Lyon Homes also said it is reducing its employee count by 134 employees this month to improve operating efficiencies. About another 100 employees had been let go earlier this year. The lower employee count is expected to save the company about $12 million per year.
ResMae Mortgage Corp., a Brea-based subprime mortgage lender, stopped funding new loans last week, citing “unprecedented” market conditions. The company, which emerged from bankruptcy in June, said the move is temporary and that it will honor commitments dated prior to Nov. 6. According to a state employment site, ResMae plans to cut 72 jobs in Brea on Nov. 18. That follows 185 cuts in May.
OTHER NEWS
The Great Park Corp., which is overseeing the redevelopment of the former El Toro Marine base, put off naming a chief executive after the top candidates declined the position for personal reasons. More than 150 candidates were interviewed for the position, but most wanted their names kept private.
ECONOMIC INDICATORS
Down: Sales of OC businesses fell in October by 20% from a year earlier and were down 9% from September. Sales in September had more than doubled from the year earlier, according to BizBen.com.
