ENERGY CRISIS
Interruptible power users could see a repeal of fines they incurred as Southern California Edison agreed to support a bill by Assemblywoman Lynn Daucher, R-Brea, that would waive fines and allow exit from the program Local business leaders expressed their concerns about the power crisis to Administrative Law Judge Michael Galvin of the PUC at a Santa Ana meeting.
TOP STORIES
Winfire Inc., Newport Beach, laid off its 250 employees and said it will file for bankruptcy Buy.com Inc., Aliso Viejo, laid off 125 employees, about 42% of its workforce (see story on page 1) EMachines Inc., Irvine, named Wayne R. Inouye CEO, replacing co-founder Stephen Dukker Ingram Micro Inc., Santa Ana, warned first-quarter earnings will fall well below analysts’ estimates Emulex Corp., Costa Mesa, completed its buy of San Jose-based Giganet Inc. for $247.6 million; Giganet will become Emulex’s Internet protocol network group and be headed by Emulex chief technology officer Ron Quagliara Alliance Imaging Inc., Anaheim, hopes to raise up to $172.5 million in an IPO and another $150 million in a debt offering.
TECHNOLOGY
Analysts are questioning Irvine-based Broadcom Corp.’s recording of warrants given to customers as goodwill rather than sales discounts or rebates that would affect its operating results, the Wall Street Journal said (see related story on page 1) Intersil Corp., Irvine, completed a tender offer for $61.6 million in debt securities Kingston Technology Co., Fountain Valley, will spend $15 million to expand its production capacity by up to 30% Starbase Corp., Santa Ana, completed its acquisitions of Technology Builders Inc., Atlanta, and Worldweb.net, Alexandria, Va. MAI Systems Corp., Irvine, retired $2.2 million in debt with shares and cash Buy.com Inc., Aliso Viejo, sued the PGA Tour alleging breach of contract in the tour’s hiring of another company to run its online store Newport Corp., Irvine, was added to the S & P; MidCap 400 Irvine-based Wonderware Corp. founder and former CEO Dennis R. Morin was named CEO of IndX Software Corp., Aliso Viejo.
GOVERNMENT
The Anaheim City Council conditionally endorsed the CenterLine light-rail plan The Southern California Association of Governments recommended that Ontario International Airport and the planned El Toro airport each accommodate up to 30 million passengers per year by 2025; the anti-airport El Toro Reuse Planning Authority said it would support an expansion of John Wayne Airport; and the Air Line Pilots Association said it would support the El Toro airport plan if some take-offs over Irvine were allowed and eastward take-offs toward hilly terrain were banned Supervisors voted not to appeal a court ruling upholding Measure H, which mandates that the county’s share of the national tobacco settlement be spent mostly on healthcare programs Huntington Beach Mayor Pam Julien Houchen said she will propose that the city buy the Bolsa Chica mesa from Signal Landmark Inc. The Seal Beach City Council approved a scaled-down development of 70 homes on a small portion of the 196-acre Hellman Ranch, the bulk of which will be devoted to open space, oil operations and a retarding basin.
HEALTHCARE
PacifiCare Health Systems Inc., Santa Ana, agreed to pay penalties totaling less than $3 million for late payments to doctors and hospitals; its shares fell 21% to 30 29/32 on the news Allergan Inc., Irvine, sued Pharmacia Corp. seeking a ruling that Allergan’s glaucoma drug Lumigan does not infringe on Pharmacia patents and to invalidate some patents held or controlled by Pharmacia; meanwhile, Allergan invested an undisclosed amount in VisionWeb LP, Austin, Texas, operator of an online site for eye-care products MyDrugRep Inc., Newport Beach, received $9 million in funding from a group including Siebel Systems Inc. (see related item, page 46) Edwards Lifesciences Corp., Irvine, received FDA approval to market its Prima Plus stentless heart-valve replacement in the U.S. Medtronic Inc. acquired for undisclosed terms a pulmonary valved conduit product line from VenPro Corp., Irvine Core Inc., Irvine, was in negotiations to sell itself; meanwhile, CFO William Nixon resigned and will be replaced on an interim basis by chief accounting officer Bradley J. Timon Leonard R. Borrmann was named president and CEO of Maret Pharmaceuticals, Newport Beach Nexell Therapeutics Inc., Irvine, named president and COO William A. Albright president and CEO, replacing in the latter post Richard L. Dunning, who remains chairman.
REAL ESTATE
Health Care Property Investors Inc., Newport Beach, will ask shareholders to increase its authorized shares from 100 million to 200 million Nationwide Health Properties Inc., Newport Beach, said the restructuring of key tenant Alterra Healthcare Corp. will not necessarily affect its earnings or cash flow William Lyon Homes, Newport Beach, asked holders of some long-term notes to agree to a two-year extension of their maturity The Irvine Company named Monica Florian senior VP for state and national governmental affairs and Dan Young senior VP for working with local governments, both jobs formerly handled by Gary Hunt, who resigned in January Bolsa Chica mesa landowner Signal Landmark Inc. filed a claim against the environmental Amigos de Bolsa Chica, alleging Amigos leaders’ statements at a recent Coastal Commission meeting violated a 1989 agreement in which the group promised not to oppose development of the mesa in return for preservation of the adjacent lowlands.
FINANCE
New Century Financial Corp., Irvine, said it will sell some of its servicing portfolio to Ocwen Financial Corp. for up to $20.5 million.
