Compiled by Julie Leupold
TOP STORY
TherOx Inc., an Irvine medical device maker, has filed plans to raise up to $100 million in an initial public offering. TherOx’s filing is the only one by a local company this year. There were several public offerings in 2007, including medical device makers Masimo Corp. in Irvine and SenoRx Inc. of Aliso Viejo. TherOx, a maker of treatment for damaged tissue after a heart attack, isn’t profitable. It lost $5.1 million for the six months through June 30 on what it called “nominal revenue” generated through licensing and foreign sales. The company was started in 1994 and has 25 workers.
TECHNOLOGY
Networking gear kingpin Cisco Systems Inc. should look to buy Aliso Viejo’s QLogic Corp. to hasten its relatively slow pace of acquisitions this year, RBC Capital Markets analyst Mark Sue said. Cisco could look to buy a company that’s active in a new area of storage technology called virtualization. It’s unclear if the two companies are talking but a deal “would make sense,” he said.
Irvine’s Newport Corp., a maker of industrial lasers, light filters and related gear, said it’s set to streamline operations, outsource some manufacturing to China and cut about 8% to 10% of its workforce. The moves are expected to add $11 million to $14 million in profits next year. Newport revised its revenue outlook for the current quarter, projecting sales of $106 million to $112 million. Analysts are expecting sales of $110 million and a profit of $2 million.
HEALTHCARE
The Food and Drug Administration approved Edwards Lifesciences Corp.’s heart valve for treating mitral valve disease. Irvine-based Edwards said it plans to start selling the Perimount Magna valve immediately.
APPAREL
August sales at Anaheim-based mall retailer Pacific Sunwear of California Inc. fell less than expected at 6% for stores open at least a year, while Foothill Ranch-based Wet Seal Inc. saw a steeper-than-expected decline of 8.7%. Analysts had been expecting a drop of 8.8% for Pacific Sunwear. Analysts were expecting a 7.5% drop for Wet Seal, which was hurt by its struggling Arden B. stores, where sales were off 25%.
Huntington Beach-based Quiksilver Inc. reported a quarterly profit of $32 million that beat expectations and upheld its outlook for the 12 months through October. The profit figure excludes the company’s money-losing ski business, Rossignol, which is in the process of being sold off. The company forecasts a yearly profit of about $117 million. Analysts on average expect $111.5 million.
Costa Mesa-based Volcom Inc. is buying the seller of its clothes in Japan, the company said. Terms of the deal weren’t disclosed. It has worked with the company for 15 years.
FINANCE
Stephen Gordon, the chief executive of bankrupt Fremont General Corp. of Brea, is stepping down Sept. 30 along with longtime colleague David DePillo, who has been Fremont’s president. They’re expected to pursue other work in financial services, according to Fremont. Gordon is set to remain as chairman. DePillo will stay on as vice chairman. Executive Vice President Richard Sanchez is set to serve as interim Fremont chief executive.
Bond fund manager Pacific Investment Management Co. said Mohamed El-Erian will take over as sole chief executive of the Newport Beach-based company at year’s end. He’s been sharing the title with Bill Thompson, who announced his retirement at the end of the year after 15 years with Pimco.
OTHER NEWS
James Y. Lee, who organized a stock fraud scheme for Irvine-based Winsted Holdings Inc. and several other penny stock companies, was ordered to pay $2.9 million to settle a Securities and Exchange Commission complaint. Alameda resident Lee and his firm, Alexander & Wade Inc., helped Winsted and 13 other tiny companies evade federal securities laws by dumping billions of nearly worthless stocks on the public, the SEC charged. Together the companies raised $34.5 million. The SEC is suing Winsted’s former chairman, Orange County’s Mark Ellis, as well as another company allegedly involved in the scheme, Las Vegas-based Marshall Holdings International Inc. Winsted and four other penny-stock companies settled earlier. So did Irvine stock brokerage Finance 500 Inc., which paid a $345,000 fine.
Residential Capital LLC, the parent of Costa Mesa-based Ditech.com, is cutting 5,000 jobs, a 60% staff reduction. ResCap is cutting 75 jobs in Costa Mesa, though none are tied to Ditech.com. The company is closing all 200 GMAC Mortgage LLC retail offices affecting mortgage closers and appraisers in Costa Mesa.
Thousand Oaks-based Baja Fresh and La Salsa fresh-Mex chains, both owned by Anaheim investor David Kim, will soon move their corporate headquarters to Orange County, where parent company RD Restaurant Group Inc. is based. Later this fall, the chains will move to a new office in Cypress. Kim also operates and franchises hundreds of Sweet Factory, KaBloom and Cinnabon units, largely in OC.
