Compiled by Julie Leupold
TOP STORIES
Broadcom Corp. cofounder and former chief executive Henry Nicholas was indicted on federal charges related to the backdating of stock options at the chipmaker and suspicion of violating drug laws. The widely expected indictments charge Nicholas with 25 counts, including conspiracy, securities fraud, false certification of financial reports, filing false statements with the Securities and Exchange Commission, wire fraud and conspiracy to distribute and acquire controlled substances. The drug charges allege Nicholas used his former Laguna Hills home, a Laguna Niguel warehouse, his current Newport Coast home and a Las Vegas condominium for using and distributing ecstasy, cocaine and speed. Nicholas turned himself into federal agents late last week and is out on $3.3 million bail. He was ordered to submit to electronic monitoring and drug testing while he stays at Malibu drug rehabilitation facility Cliffside.
Also charged in the stock options indictment is former Broadcom chief financial officer William Ruehle. Lawyers for both men deny the charges and said they will fight them.
TECHNOLOGY
Santa Ana’s Ingram Micro Inc. reaffirmed its second-quarter outlook. Excluding restructuring charges, the electronics distributor projects profits of $59 million to $64 million on sales of $8.5 billion to $8.75 billion. The company said it recently acquired the distribution business and some assets of China’s Cantechs Group Ltd. Terms of the all-cash deal, which closed in late May, weren’t disclosed.
Shares of Newport Beach-based chipmaker Conexant Systems Inc. rose after the company announced a reverse stock split and said results for the June quarter are expected to come in at the high end of its outlook. The stock was up about 15% last week on a recent market value of about $280 million. Conexant is looking for revenue of $167 million to $171 million for the three months ending June 30. The chipmaker is expecting a loss of $3 million to $8 million. Analysts had been expecting a loss of $5 million on sales of $169 million. The company also gave an outlook for the September quarter, when it expects to turn a profit.
Irvine TV seller Vizio Inc. responded to a suit filed last week by several competitors alleging that it failed to enter into a licensing agreement for video compression technology. The plaintiffs include Mitsubishi Digital Electronics America Inc., Sony Corp., Royal Philips Electronics NV and Samsung Corp. among others. Vizio’s set suppliers have licenses for the patents, and the company said it believes those licenses extend to its products.
HEALTHCARE
Prime Healthcare Services Inc., a Victorville-based medical chain headed by cardiologist Prem Reddy, agreed to buy three hospitals from Dallas-based Tenet Healthcare Corp., including the 167-bed Garden Grove Hospital and Medical Center.
Allergan Inc., an Irvine drug maker, said it plans to file for Food and Drug Administration approval of a drug to spur eyelash growth. The drug, bimatoprost, is the active ingredient in Allergan’s Lumigan glaucoma drug. Approval could come in 2009.
REAL ESTATE
Santa Ana-based Grubb & Ellis Co. said the Securities and Exchange Commission closed its investigation of predecessor company Triple Net Properties without any enforcement action. The probe began in late 2004. The SEC requested information from Triple Net relating to public and private securities offerings sponsored by the real estate investment company.
San Clemente-based hotel owner Sunstone Hotel Investors Inc. sold the 726-room Hyatt Regency Century Plaza hotel to Los Angeles real estate investor Next Century Associates for $366.5 million. The company bought the hotel in 2005 for $293 million. Sunstone said it is looking at “significant” sales of other hotels.
APPAREL
Huntington Beach-based Quiksilver Inc. said the maker of surf-inspired clothes has begun a process to sell its struggling Rossignol unit and reported a net loss of $206.2 million for the recently ended quarter, driven by a Rossignol-related charge. Excluding Rossignol, Quiksilver made $38.7 million in the quarter. Quiksilver didn’t offer details on who is in the process of buying Rossignol or when a deal might close.
FINANCE
Shares of Newport Beach-based Downey Financial Corp. were down about 10% last week after Standard & Poor’s said it was considering cutting its rating on the thrift operator to “junk” due to falling home prices and loan losses.
EDUCATION
Shares of Santa Ana-based Corinthian Colleges Inc. got a boost last week after an analyst raised his price target on the vocational school operator’s stock on expected enrollment gains and revenue growth. The jump in Corinthian’s share price comes after the company’s investor conference in late May, where it told analysts it expects yearly revenue to grow 10% to 12% in the next three years.
