TOP STORIES
Irvine chipmaker Broadcom Corp. last week came out with revised financial statements for 1998 to 2005 with added charges of $2.2 billion for stock option grants that were improperly accounted for. None of the misdated options were granted to founders Henry Samueli and Henry Nicholas, current Chief Executive Scott McGregor or his predecessor Alan “Lanny” Ross. The company cited Nicholas and other former executives for a lack of controls and inappropriate grant practices. Nicholas was involved in the mistiming of some grants but didn’t personally benefit (see page 1).
Will Swaim, editor and publisher of OC Weekly, is leaving the alternative weekly newspaper he helped to start 12 years ago. Swaim said he’s leaving over “philosophical differences” with owner Village Voice Media of Phoenix. The company, formerly New Times Media, bought the Santa Ana-based paper in early 2006. Swaim has given his resignation and still is at the paper for an interim period. He was OC Weekly’s founding editor in the mid-1990s. He set the paper’s irreverent style, covering music and other entertainment here as well as doing investigative stories.
TECHNOLOGY
Lake Forest-based Western Digital Corp.’s December quarter revenue climbed 28% to $1.4 billion. Net income climbed 23% to $128 million at the disk drive maker. More than 40% of sales came from drives for consumer electronics, with 58% coming from drives for desktop computers.
Aliso Viejo-based QLogic Corp. fell 5.3% after reporting disappointing results for the December quarter and warning about the current one. QLogic’s sales of $157.6 million and net income of $35 million for the December quarter both fell short of Wall Street’s expectations. The maker of adapters and switches for data storage networks also said it sees sales of $147 million to $153 million for the current quarter. Analysts had expected revenue of $155.8 million.
Networking electronics maker Emulex Corp. of Costa Mesa reported sales of $121.4 million for the quarter ended Dec. 29, up 10% from a year earlier. Emulex posted a net loss of $10 million driven by onetime charges of $22 million for its buy of Sierra Logic Inc. Without the charges, the company earned $24.9 million.
HEALTHCARE
Aliso Viejo-based Valeant Pharmaceuticals International said last week its charges for improperly accounted options is $23.5 million after taxes. Valeant restated results from 2001 to 2005. Valeant also released restated its third-quarter earnings. It swung to a profit of $13.7 million from a loss of $2.7 million in 2005’s third quarter.
GOVERNMENT
An Anaheim panel last week rejected a plan by SunCal Cos. to allow new homes near Disneyland. An appeal is expected. SunCal wants to build 1,500 homes, including 200 affordable apartments on the site.
