EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
Newport Beach-based The Irvine Company reportedly plans to buy the 570,000-square-foot Symphony Towers office building in downtown San Diego from Swedish pension plan Alecta Real Estate Symphony Towers Inc. The Irvine Co. declined to comment on the sale, which could close escrow this week and is believed to be in the $125 million to $130 million range, according to a report in the San Diego Daily Transcript. Symphony Towers is 97% full, vs. a 91% occupancy rate for all of downtown.
TECHNOLOGY
Santa Ana-based technology bellwether Ingram Micro Inc. said its fourth-quarter operating profit, excluding charges, jumped 56.9% to $58.7 million on a 4.1% decline in sales to $5.9 billion; the distributor of computers and technology gear said its first-quarter results would be slightly less than forecasts amid a cloudy outlook for the industry … A bankruptcy court OK’d Irvine-based Broadcom Corp.’s $8.5 million offer to buy Santa Clara-based Gadzoox Networks Inc., which makes chips that speed data across storage devices. The move could put Broadcom in competition with Aliso Viejo-based QLogic Corp. and San Jose-based Brocade Communications Systems Inc. … Irvine-based human resources services company Exult Inc. said it will move some operations to India and hire up to 300 workers by the end of the second quarter to handle major clients Bank of America Corp., Prudential Financial Inc., International Paper Co. and BP PLC … Irvine-based Transdimension Inc. signed a licensing pact with Motorola Inc. for its technology that allows electronic devices to communicate directly with other devices that have universal serial ports. Motorola said it plans to use the technology in chips for mobile phones and personal digital assistants … Irvine-based STM Wireless Inc. filed for bankruptcy protection and said it plans to sell its assets for $4 million to Sloan Capital Partners, which is expected to take the company private; the deal is expected to close by March 31 … Santa Ana-based MSC.Software Corp. said its fourth-quarter operating profit fell 22.9% to $8.1 million vs. a year ago on a 26.8% increase in sales to $101.6 million. The company said it was comfortable with current estimates for the first quarter.
HEALTHCARE
Irvine-based heart valve maker Edwards Lifesciences Corp. plans to buy intellectual property and technology from Sweden’s Jomed NV for $20 million. Edwards said it would take an undetermined research and development charge related to the deal. The acquired technology is in preclinical studies in Europe with clinical trials expected there next year. Meanwhile, Edwards named Robert Ingram to its board of directors; Ingram is vice chairman of GlaxoSmithKline PLC’s pharmaceuticals unit … Irvine-based drug maker Sicor Inc. said its fourth-quarter operating profit rose 40.3% to $39.1 million vs. a year earlier on a 14% increase in sales to $118.7 million … Santa Ana-based Advanced Medical Optics Inc. said its fourth-quarter proforma operating profit fell 9% to $22.5 million on flat sales of $147.1 million. Advanced Medical said sales were affected by the company’s exit from the low-profit U.S. private label business.
REAL ESTATE
Cypress agreed to sell 28 acres of a city golf course to the Cottonwood Christian Center for $17 million. Cottonwood, which plans to build a $50 million church complex on the land, agreed to sell an 18-acre plot to the city for about $18 million. That property is prized by Costco Wholesale Corp., which plans to build a store on the site … Newport Beach-based homebuilder William Lyon Homes Inc. said its fourth-quarter operating income jumped 75.2% to $34.1 million on a 16.2% rise in sales to $200.4 million. The company cited strong home sales in California, where the average fourth-quarter price of its homes rose 21% to $440,600 vs. a year earlier.
GOVERNMENT
University of California, Irvine, Chancellor Ralph Cicerone said he doesn’t want to be considered to replace the outgoing president of the University of California system, Richard Atkinson … The latest estimate from the Orange County Transportation Authority for the proposed CenterLine light-rail system puts the cost at $1.5 billion, 36% higher than prior forecasts. Meanwhile, daily ridership is expected to be 21,800, half of the 42,500 previously estimated, based on a scaled down 11.4-mile line from Santa Ana to Irvine … The Irvine Unified school district wants homeowners to pay $48 a year to help make up an anticipated $7.5 million budget shortfall. The measure must be voted on by Irvine residents, who have rejected four parcel taxes since 1980. Critics say the tax is illegal … An environmental impact report for Irvine’s Great Park on the former El Toro Marine base land says increased traffic will require new roads and the expansion of 10 intersections.
WHAT ELSE IS NEWS
Anaheim-based Clothestime Stores Inc. was bought by New York apparel manufacturer JW Associates for an undisclosed amount; JW said it plans to expand the 250-store chain by 100 outlets in the next nine months. Clothestime counts yearly sales of about $150 million. At its 1994 peak, the retailer counted $350 million in annual revenue and about 550 stores. … Roxy, a surfwear unit of Huntington Beach-based Quiksilver Inc., said it’s co-producing a reality TV series with MTV and teaming with HarperCollins Publishers Inc. on a series of books about women and surf culture; Quiksilver said it expects to turn a profit on both ventures … American Airlines said it will start service from John Wayne Airport to New York’s John F. Kennedy International Airport on April 6, marking the only nonstop service between the cities … Anaheim-based retailer Pacific Sunwear of California Inc. said it’s the first national chain to carry shoes made by Costa Mesa-based Hurley International, which was bought by Nike Inc. last year.
ECONOMIC INDICATORS
Up: Orange County’s housing market in January, with the median sales price jumping 19.8% to $369,000 vs. a year ago, on an 11.3% rise in sales to 3,488.
