TOP STORIES
The Justice Department filed an antitrust suit against Irvine chipmaker Microsemi Corp. claiming the company’s $25 million buy of Costa Mesa-based Semicoa Semiconductors Inc. in July created a monopoly on certain types of chips. The complaint focuses on small signal transistors, chips that amplify electrical signals. The government said Microsemi dropped customer service and raised prices “significantly” after the deal and that government customers can’t find substitutes. The government is seeking to undo the deal and sell off the assets that Microsemi bought from Semicoa, which included millions of dollars of equipment at its 47,000-square-foot Costa Mesa chip plant. Microsemi said it “intends to aggressively defend its position.”
TECHNOLOGY
Newport Beach chipmaker Conexant Systems Inc. lowered its sales outlook for the quarter through December to $83 million to $88 million, down from a prior forecast of $103 million to $108 million. Conexant is expecting to report a loss of $2.5 million to $4.5 million, versus a prior forecast of $4.5 million to $6 million in profits. Wall Street analysts, on average, had been expecting profits of $5 million on sales of $112 million.
Santa Ana’s STEC Inc., a maker of flash memory drives for industrial uses, said an undisclosed customer canceled a $20 million order, sending its shares down last week. For the current quarter, STEC lowered its sales outlook to $55 million to $59 million, down from its prior forecast of $69 million to $72 million.
Lake Forest’s Western Digital Corp. is set to slash some 2,500 jobs and cut executive pay in a bid to offset slumping demand for its disk drives. The company also lowered its sales outlook for the December quarter to $1.7 billion to $1.8 billion, down from a prior forecast of $2.02 billion to $2.15 billion.
Irvine chip startup Solarflare Communications Inc. raised $44 million in a fourth round of venture funding. The round was made up of $32 million in venture funding and $12 million in what Solarflare called “venture debt financing.” Solarflare is one of Orange County’s best-funded startups, with roughly $180 million raised to date.
HEALTHCARE
Fullerton-based Beckman Coulter Inc. reiterated its 2008 outlook and forecast 10% growth in 2009 profits. The maker of medical testing gear and supplies said it expected to make $222.5 million to $228.7 million on a 12% revenue hike to about $3.09 billion in 2008. For 2009, Beckman said it expected its profit to grow 10% on cost controls and a shift toward more profitable products.
Alliance Imaging Inc., a Newport Beach-based medical scanning company, bought Shared P.E.T. Imaging Inc. of Canton, Ohio, for $43 million in cash and debt. Shared, which operates in 13 states, generates $29 million in annual revenue. Alliance also affirmed its 2008 outlook and forecast 2009 results in line or exceeding Wall Street’s estimates.
Ensign Group Inc., a Mission Viejo-based nursing home operator, said federal investigators searched a service center and six of its nursing homes as part of a Medicare billing probe. The probe focuses on what Ensign called “an investigation of claims submitted to the Medicare program for rehabilitation services.” The company’s own billing review found no systemic patterns and practices of fraudulent or intentional misconduct, according to Ensign.
REAL ESTATE
Orange County’s median home price fell another $20,000 to $400,000 in November, the lowest price the area’s seen in more than five years, according to La Jolla-based DataQuick Information Systems, a unit of Canada’s MacDonald Dettwiler and Associates Ltd. The median price here is down about 30% from a year earlier and is off 38% from its all-time high in June 2007. Prices in the county haven’t been this low since May 2003. Foreclosures helped push sales up 39% from a year earlier, but they were down 23% from October.
Irvine-based homebuilder Standard Pacific Corp. named Ken Campbell president and chief executive, the third chief executive the company’s had this year. Campbell is a partner of New York-based private equity firm MatlinPatterson Global Advisors LLC. MatlinPatterson became Standard Pacific’s largest shareholder in June, after announcing a $530 million financing deal with the company. Campbell replaced Jeffrey Peterson, who stepped down as chairman, chief executive and president and remains a director.
Irvine-based Advantage Sales and Marketing LLC is moving its headquarters after signing a 48,468-square-foot lease for Irvine Company’s new 18100 Von Karman office tower. The company will be taking the top two floors of the 10-story and move early next year. Terms of the seven-year lease were not disclosed.
APPAREL
Miami-based retailer Adrenalina withdrew an offer to buy Anaheim-based Pacific Sunwear of California Inc. but wants to meet with the struggling surf-inspired retailer to avoid a proxy fight. Pacific Sunwear has rejected buyout offers from Adrenalina, saying they weren’t in the best interest of shareholders. Adrenalina said it has discussed a possible buyout with some of Pacific Sunwear’s largest shareholders and has been met with support. Adrenalina said it could look to replace Pacific Sunwear’s existing board members if the company’s plan is successful.
FINANCE
San Clemente-based Pacific Coast National Bancorp said it received preliminary approval for a $4.1 million investment from the government. The selling of preferred stock as part of the Treasury Department’s Capital Purchase Program will need the approval of shareholders, who are set to vote on it during a Jan. 15 meeting.
GOVERNMENT
After years of ongoing debate, the Commerce Department upheld the California Coastal Commission’s objection to the Foothill South,a proposed 16-mile toll road connecting the Foothill (241) Toll Road to the San Diego (I-5) Freeway in South County. Commerce found the proposal to be inconsistent with the Coastal Zone Management Act, which aims to balance and preserve coastal resources. Backers are considering legal action to challenge the ruling.
OTHER NEWS
The largest unsecured creditor of bankrupt Irvine-based Hines Horticulture Inc. is buying the seller of plants and shrubs. Black Diamond Capital Management LLC, a hedge fund and private equity firm based in Illinois, has received bankruptcy court approval to acquire Hines. Hines filed for bankruptcy in August, blaming the economic and housing downturn, high costs for materials and fuel, poor weather and pressure for lower prices from customers.
