EXECUTIVE SUMMARY
TOP STORY
Cypress-based PacifiCare Health Systems Inc. said it plans to buy Green Bay-based American Medical Security Group Inc. for $502 million plus $30.2 million in assumed debt. American Medical has about 1,400 workers and sells health insurance to 312,000 preferred provider organization members. The company posted $712 million in revenue from premiums last year. The deal is set to close by early next year … Irvine-based Gateway Inc. said it plans to stop selling TVs and digital cameras and focus on computers sales. Gateway still plans to offer digital music players.
TECHNOLOGY
Broadcom Corp. gave a weaker-than-expected sales outlook for the company’s third quarter. The chipmaker said sales of chips used in wireless phones for the Chinese market would be lower than anticipated and that revenue from its cable and satellite set-top box chip unit would be hit by delayed sales. Overall, Broadcom expects to post sales of about $641 million in the third quarter, flat with the second quarter but down from the prior forecast of 5% to 6% growth. Broadcom’s revenue forecast is about 50% higher than a year earlier … Lake Forest-based Western Digital Corp. said disk drive sales through distributors were lower than expected in July and August, but had rebounded in September. Sales to computer makers have been above expectations, thanks to strong PC demand. Western Digital said revenue in the quarter ending Sept. 30 would be $765 million to $790 million, in line with Wall Street estimates … Irvine-based Comarco Inc. missed a Sept. 15 deadline to file its quarterly results with the Securities and Exchange Commission. The maker of wireless network testing gear said its auditors hadn’t finished reviewing the company’s financial statements. Comarco said it expected to file its results early this week.
Underwriters for Irvine-based IntraLase Corp. priced the company’s pending sale of 6.6 million shares in an initial public offering at $11 to $13 a share … Irvine-based Spectrum Pharmaceuticals Inc. filed a drug application with the Food and Drug Administration. The eye-care drug will be developed by India’s FDC Ltd. and marketed and distributed by Spectrum, under an agreement the companies signed last year.
Santa Ana said it received enough signatures to put the proposed 37-story One Broadway Plaza tower to a city referendum. Opponents of developer Michael Harrah’s tower plans say it will create traffic problems downtown Santa Ana. Harrah filed a lawsuit challenging the petition, which he says didn’t include appropriate planning documents. The county registrar has been asked to do a more precise accounting of the petitions received … Brea-based Realigent Inc. emerged from bankruptcy after raising $1.75 million in funding from Englewood, Colo.-based Aspen Capital Partners. Realigent formerly was known as Homeseekers.com Inc. … Irvine-based Standard Pacific Corp. said new-home orders rose 6% to 1,703 in July and August, versus a year earlier.
PEA Capital LLC and other units affiliated with Germany-based Allianz AG’s stock mutual funds agreed to pay $50 million to settle charges by the Securities and Exchange Commission that the stock mutual funds allowed improper trading by some investors. Newport Beach-based Pacific Investment Management Co., Allianz’s bond fund family, was not accused of wrongdoing in the trading scheme. Meanwhile, the stock funds also agreed to pay $20.6 million to settle separate charges that they didn’t publicly disclose payments made to brokerages that sold its funds. California is set to receive $9 million of that settlement.
The Anaheim City Council agreed on criteria for negotiating with the National Football League over a possible new stadium and team for the city. Any deal must respect current lease agreements, including one with the Anaheim Angels, and be profitable for the city, according to the framework … The Orange County Transportation Authority revised down the number of daily passengers expected to use the proposed 9.3-mile CenterLine light rail route. The agency expects 22,600 people to use the rail line daily by 2025, down 10% from previous forecasts.
The National Hockey League’s Board of Governors locked out players after the sides couldn’t agree on a new collective bargaining agreement. The lockout threatens the start of the season and the 41 games that the Mighty Ducks of Anaheim play at the Arrowhead Pond … Struggling Wet Seal Inc. in Foothill Ranch said it named Rothschild Inc. as its financial adviser. Rothschild will look at how the teen retailer can increase shareholder value … Aliso Viejo-based Fluor Corp. and Mexican partner Empresas ICA Sociedad Controladora, SA de CV won a $684 million bid to upgrade the Minatitlan oil refinery in Veracruz, which is run by state monopoly Petr & #243;leos Mexicanos, or Pemex … Carpinteria-based CKE Restaurants Inc. said same-store sales at its Anaheim-based Carl’s Jr. unit grew 8.1% for the quarter ended Aug. 9.
ECONOMIC INDICATORS
Up: Orange County’s jobs picture in August, with the unemployment rate falling to 3.2%, versus 3.8% a year earlier, and nonfarm payroll growing by 3,900 workers to 1,428,600, according to the state Economic Development Department.
Mixed: OC’s housing market in August, with the median price of homes sold up 24.8%, versus a year earlier, but the number of properties trading hands falling 32% to 3,745, according to DataQuick Information Systems.
