EXECUTIVE SUMMARY
Compiled by Mike Mason
TECHNOLOGY
Aliso Viejo-based QLogic Corp. and Costa Mesa-based Emulex Corp. agreed to cross-license technology as part of a lawsuit settlement for undisclosed terms. The spat stemmed from a suit filed by Vixel Corp. against QLogic in 2003 that alleged QLogic infringed on three of its patents. Emulex later bought Vixel and then was sued by QLogic in December for patent infringement … Meanwhile, shares of Emulex slumped 20% to 11.5 after the company warned that sales in the June quarter would be about $85 million, down from a prior forecast of about $100 million. Emulex said two unnamed big customers bought less of its storage devices than expected … Lake Forest-based Western Digital Corp. filed a patent infringement lawsuit against Longmont, Colo.-based Cornice Inc. Western Digital said Cornice violates seven of its patents related to disk drives … Santa Ana-based MSC.Software Corp. plans to give software and services worth $4 million to the University of California, Irvine’s Henry Samueli School of Engineering and its School of Physical Sciences. The software will be used for courses using computer-based engineering and simulation … Gateway Inc. said it signed leases for 100,000 square feet of space at 7555 and 7565 Irvine Center Drive in the Irvine Spectrum Center. The computer seller plans to move its headquarters from Poway to Irvine in late August.
HEALTHCARE
Irvine-based Micro Therapeutics Inc. said it sold $21 million worth of convertible bonds that pay 7% interest. Funds managed by Warburg Pincus and The Vertical Group bought $15 million of the bonds, with a pair of other existing institutional shareholders taking the rest … Santa Ana-based Advanced Medical Optics Inc. wrapped up its $450 million buy of the ophthalmic surgical unit of Pfizer Inc. … Irvine-based Endocare Inc. said it received notice that the Securities and Exchange Commission planned to recommend filing a civil suit against the company, former management, former sales personnel and its current head of sales and marketing. Regulators have been investigating Endocare’s 2001 and 2002 financial statements. Endocare intends to engage in talks with SEC staff before regulators make a final decision on what action to take.
REAL ESTATE
The Wildlife Conservation Board tentatively agreed to buy half of the Bolsa Chica mesa,about 100 acres,from Newport Beach-based California Coastal Communities Inc. for $65 million. The sale is seen helping California Coastal in its bid to develop the upper half of the mesa into about 380 homes. The Wildlife Conservation Board is expected to make a final decision on the buy Aug. 12. California Coastal’s development must be approved by the state Coastal Commission … Nationwide Health Properties Inc. said it plans to sell $100 million worth of preferred stock convertible at $22.74 a share. The conversion price is a 20% premium to its closing price early last week. Nationwide expects to use proceeds of the offering to repay outstanding loans under its revolving bank line of credit and for general corporate purposes … Santa Ana-based First American Corp. said it plans to buy Pittsburgh-based Basis100 Inc. for $33 million. The deal is expected to close in the third quarter. First American also said it bought Forth Worth, Texas-based Safeco Land Title for an undisclosed amount.
ENERGY
Shares of Irvine-based Quantum Fuel Systems Technologies Worldwide Inc. rose 22% to 6.1 after the company reported better-than-expected earnings results for the quarter ended April 30. Quantum, which makes hydrogen fuel cell products, said its quarterly operating loss narrowed to $2.2 million, versus a loss of $3.9 million a year earlier, on 23% growth in sales to $9.1 million.
FINANCE
UnionBanCal Corp. said it plans to buy Brea-based Jackson Federal Bank from Britain’s Prudential PLC for $305 million in cash and stock. Jackson Federal has 250 workers and $1.9 billion in assets … Orange-based OCHA Credit Union Inc. said it plans to sell its credit card operation to Dallas-based TNB Card Services for an undisclosed amount … Newport Beach-based Roth Capital Partners LLC said it advised St. Paul, Minn.-based The Sportsman’s Guide Inc. in its $30 million buy of Wichita, Kan.-based Golf Warehouse LLC.
GOVERNMENT
Orange County Supervisors approved a $4.6 billion budget for 2004-2005, down about 3.2% from the recently ended fiscal year … Orange County Transportation Authority officials said they plan to consider at their July 16 meeting whether to put the $1 billion CenterLine light rail project to voters in November … Transportation Corridor Agencies Chief Executive Wally Kreutzen said he plans to retire Nov. 1 after about 15 years in the position … Irvine officials say they plan to recommend a 10% increase in developer fees to build roads, utility lines and other items on the former El Toro Marine base as part of the city’s Great Park development. Infrastructure costs have risen to about $411 million because the sale of the land has been delayed … The Coast Community College District gave the KOCE Foundation a one-month extension to come up with $8 million as part of its bid to buy Huntington Beach-based KOCE-TV Channel 50 from the Coast Community College District. The foundation, which says it has pledges for the down payment, now has until Aug. 5 to provide the money. The Federal Communications Commission must approve the PBS affiliate’s license transfer, which is being challenged by religious broadcaster Daystar Broadcasting.
WHAT ELSE IS NEWS
Costa Mesa-based Ceradyne Inc. said it plans to buy ESK Ceramics, a unit of Germany’s Wacker-Chemie GMBH for $136 million. ESK had sales of about $90 million last year … Foothill Ranch-based Wet Seal Inc. said it sold $27.2 million of stock in a private placement to institutional and other accredited investors. Wet Seal plans to use the funds for working capital and general corporate purposes … Abercrombie & Fitch Co. said it plans to open a Hollister store at Fashion Island. Hollister, which sells surfwear, also is opening stores at the Irvine Spectrum Center and Block at Orange … A bankruptcy court approved a $2.2 million payment to customers of the Chi-Chi’s restaurant chain that contracted hepatitis A in Pennsylvania. Chi-Chi’s is part of bankrupt Prandium Inc. in Irvine.
