Compiled by Julie Leupold
TECHNOLOGY
An analyst upped his rating on Emulex Corp. early last week to “buy” from “sell.” He also raised his price target to $16 per share from $10. Emulex shares were trading at $14 last week with a market value of about $1 billion. The maker of electronics for data storage networks could see some improvement as it sells down its inventory of host bus adapters. Emulex recently warned of lower-than-expected sales and profits for the current quarter.
Newport Beach startup RF Nano Corp., a chipmaker that grew out of research at the University of California, Irvine, raised $8 million in a second round of venture funding. Washington, D.C.-based Oxantium LLC led the round. Laguna Beach’s Okapi Venture Capital LLC also took part, bringing RF Nano’s total raised to $9.5 million. Oxantium founder Richard Wirt is set to join RF Nano’s board.
Irvine-based online video game developer Blizzard Entertainment Inc., part of France’s Vivendi SA, incurred the wrath of fans when its Web site went down due to high interest in tickets for its annual convention, BlizzCon. The company sold 12,000 tickets, up from about 5,000 attendees last year.
HEALTHCARE
Aliso Viejo-based drug maker Valeant Pharmaceuticals International reported a disappointing second-quarter loss as it continues to restructure. Valeant lost $5.7 million in the quarter, after adjustments for income taxes, net loss from continuing operations and other items. A year earlier, Valeant earned a profit of $14.2 million. Analysts had been expecting a loss of about $1 million. Revenue fell 6% to $207 million but met Wall Street expectations.
Shares of Irvine-based Spectrum Pharma-ceuticals Inc. were up 20% last week after reporting a profitable second quarter. Spectrum, which counts a market value of about $50 million, posted an operating profit of $10.7 million, the first in its history. A year earlier, Spectrum lost $6.25 million. Analysts had expected the company to lose about $10.7 million. Spectrum’s revenue surged fivefold to $20.7 million, primarily through its sale of the rights to injectable generic drugs to New Jersey’s Par Pharmaceutical Cos. in May.
Irvine’s Quality Systems Inc., a maker of software for doctors and dentists, named director and longtime local healthcare executive Steven Plochocki as its chief executive. Plochocki replaces Lou Silverman, Quality’s boss since 2000.
Endocare Inc., an Irvine medical device maker, rejected a $26.9 million unsolicited buyout offer from Austin, Texas-based HealthTronics Inc. HealthTronics’ offer was worth 20% more than what Endocare was valued at before.
REAL ESTATE
Irvine-based homebuilder California Coastal Communities Inc. reported a $3.1 million loss for the second quarter, up from a $400,000 loss a year earlier. The report gave hope for the future with news of homes being delivered at the company’s Brightwater development overlooking the Bolsa Chica wetlands in Huntington Beach.
FINANCE
Newport Beach-based savings and loan operator Downey Financial Corp. said deposits stabilized in August after “elevated” withdrawals last month. About 45% of the July withdrawals were recovered, Downey said. The thrift faces rising bad loans and fears about its future after July’s government takeover of Pasadena-based IndyMac Bancorp Inc. In a filing with the Securities and Exchange Commission earlier this month, Downey said it might not be able to handle its mounting debts.
OTHER NEWS
Irvine-based Chen-Tech Industries Inc., a maker of jet engine parts, is being acquired for $59 million. Cudahy, Wis.-based Ladish Co. is buying Chen-Tech for cash and stock. The deal is expected to close this quarter.
Irvine’s Ultimate Ears Inc., a maker of custom ear monitors for musicians and sound engineers, is set to be bought by Switzerland’s Logitech International SA for $34 million. The cash deal is expected to close this month. The company has about 40 workers here. Chief Executive Bob Allison, along with the Irvine workers, is set to stay onboard.
An oversight company contends designers have underestimated the cost of building the Orange County Great Park by $377 million. Bovis Lend Lease, a unit of Australia’s Lend Lease Corp. that Irvine pays to independently review the redevelopment of the former El Toro Marine base, said the 1,347-acre park would cost more than $1.6 billion to build, not the $1.2 billion the project’s designers have claimed.
