EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
Poway-based Gateway Inc. offered to buy Irvine-based eMachines Inc. for about $255 million in cash and stock. EMa-chines would get about $30 million cash in the deal, with its chief executive, Wayne Inouye, becoming Gateway’s chief executive. Gateway founder and chief executive, Ted Waitt, will remain as chairman. Gateway had $3.4 billion in sales last year and 7,500 workers; eMachines had revenue of $1.1 billion and about 140 workers. The deal is set to close in the next two months. (See story on front page.)
TECHNOLOGY
Irvine-based Broadcom Corp. said it bought Nashua, N.H.-based RAIDCore Inc. for up to $16.5 million. Privately held RAIDCore makes storage software.
HEALTHCARE
Costa Mesa-based Valeant Pharma-ceuticals International offered to buy most of the pharmaceutical business of Britain’s Amarin Corp. for undisclosed terms … Lake Forest-based Cooper Cos. said it bought Chicago-based Milex Products Inc. for $26 million. Milex, which makes disposable and reusable obstetric and gynecologic products, had sales of $14 million last year … Shares of San Clemente-based ICU Medical Inc. fell 12% to 33 after the company lowered its earnings outlook for 2004. Meanwhile, ICU said its operating income in the fourth quarter rose 13% to $10.4 million, versus a year earlier, on a 42% jump in sales to $29.1 million … San Clemente-based Biolase Technology Inc. said it expects fourth-quarter and 2003 sales to at least match its forecast for 40% to 50% growth, versus a year earlier. Biolase also said the Food and Drug Administration approved new bone, periodontal and soft tissue procedures for its Waterlase dental laser … Spectrum Pharmaceuticals Inc. said European regulators approved phase three trials for a prostate cancer treatment it’s working on with Germany’s GPC Biotech AG. Spectrum started third-phase trials on the drug in the U.S. in September … A Food and Drug Administration panel recommended approving a lens for patients with nearsightedness made by Netherlands-based Ophtec BV and to be sold by Santa Ana-based Advanced Medical Optics Inc.
REAL ESTATE
Phoenix-based Opus West Corp. and Geoffrey H. Edmunds & Associates said they plan to build two 15-story condominium towers at the corner of Jamboree Road and Campus Drive in Irvine. Called Plaza-Irvine, the development would include about 200 condos selling for $500,000 to $1.5 million, plus eight penthouses selling for $2 million to $3 million. Construction is set to begin in January 2005, with the first tower opening two years later … Newport Beach-based William Lyon Homes said it sold $150 million in senior bonds to a private investor. The homebuilder plans to use funds from the sale to repay some debt and for corporate purposes … Santa Ana-based First American Corp. said it bought Baton Rouge, La.-based MVRS Inc. for an undisclosed amount. Privately held MVRS provides motor vehicle record information to insurance underwriters, automobile insurance agents, employers and employment screening companies … Newport Beach-based Impac Mortgage Holdings Inc. said it priced 5 million shares it plans to sell at $19.50 each. The $92.5 million raised in the stock offering will be used for general corporate purposes.
FINANCE
James P. Lewis Jr. was indicted on 14 counts of mail fraud and money laundering stemming from an investment scheme that allegedly caused more than 3,000 investors to lose $200 million through his Lake Forest-based Financial Advisory Consultants Inc.
GOVERNMENT
The Federal Transit Administration said the county’s proposed 9.3-mile, $1 billion CenterLine light-rail project should be eligible to compete for some $1.5 billion in federal funding. About half of the funds for CenterLine, which is backed by the Orange County Transportation Authority and would connect Santa Ana and Costa Mesa, are expected to come from the federal government, with the rest from state and local sources.
WHAT ELSE IS NEWS
Aliso Viejo-based Fluor Corp. said its fourth-quarter earnings from continuing operations rose 15% to $51.5 million, versus a year earlier, on a 4% decline in revenue to $2.4 billion. In other Fluor news, the company said it plans to cut 40 workers and said it’s looking to sell or lease office space left vacant by about 1,000 job cuts in OC since 2002. Meanwhile, Fluor said it won a $100 million contract from the Army to build a military base outside Baghdad. And, in a busy week for the engineering company, Fluor also said it bought Fullerton-based Trend Western Technical Corp. for undisclosed terms. Trend Western, which provides logistics support to military bases, has about 800 workers … Anaheim-based Pacific Sunwear of California Inc. said its same-store sales grew 12.4% in January versus a year earlier. The retailer said overall sales were up 24.5% to $54.4 million in January and PacSun raised its earnings guidance for the fourth quarter … Meanwhile, Foothill Ranch-based Wet Seal Inc. said its same-store sales in January fell 21.4% versus a year earlier. The teen retailer said the lower-than-expected sales were affected by severe winter weather that cut the number of mall shoppers. Wet Seal said its spring season looks more encouraging as the company has old inventory.
ECONOMIC INDICATORS
Down: Mortgage refinancing activity in Orange County, down 37% to 45,410 in the fourth quarter, versus a year earlier, according to DataQuick Information Systems.
