EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORIES
Newport Beach-based Conexant Systems Inc. said it plans to spin off its Mindspeed Technologies unit this summer. About 100 of 725 Mindspeed workers will be cut to trim expenses at the unprofitable unit. Conexant said it would provide Mindspeed, a networking chipmaker, with $100 million in initial funding, plus another $50 million in contingency funds. Conex-ant has spun off three of its units into separate companies: Pictos Technologies Inc., Skyworks Solutions Inc. and Jazz Semiconductor Inc. Under the plan, Conexant shareholders would get the right to buy up to 20% of Mindspeed, which likely would trade on the American Stock Exchange. Conexant said it would take a $573 million charge in the first quarter to write down the value of the unit … Boeing Co. said it is looking at moving Huntington Beach-based Delta rocket workers out of the county, possibly to Alabama or Florida. Chicago-based Boeing plans to reduce costs amid a cutback in global satellite launches from 45 a few years ago to 25 last year. Boeing has 5,000 workers at its Huntington Beach operation, with about 3,000 working on the Delta rocket.
TECHNOLOGY
Irvine-based Broadcom Corp. fired Raju Begesna, head of the company’s ServerWorks unit, saying his long-term plans for the unit didn’t mesh with the chipmaker’s and that it was upset about shipment delays for some of its server chips, which account for about 25% of Broadcom’s sales. Duane Dickhut was tapped to replace Begesna. Shares of the company tumbled 16% to 12.91 on news of the shakeup … Irvine-based Lantronix Inc. filed a lawsuit against Logical Solutions Inc. and some of its officers, alleging trademark infringement and misuse of trade secrets stemming from Lantronix’s buy of Lightware Communications in 2001 … Santa Ana-based MSC.Software Corp. said it inked a deal with Boeing Co. for engineering data management software and services. Terms of the deal weren’t disclosed … Irvine-based Autobytel Inc. signed a pact with Yahoo! Inc. to provide its research and photo database for Yahoo!’s automotive Web site … Tustin-based SI Technologies Inc. said its operating profit for the quarter ended Jan. 31 rose 20.6% to $532,000 vs. a year earlier on a 2.7% gain in sales to $8 million. SI said sales of its industrial measurement sensors increased 6.2%, offsetting a 7.9% decline in sales of its industrial automation gear.
HEALTHCARE
Irvine-based Allergan Inc. said it plans to seek Food and Drug Administration approval in the second half of the year for an oral pill form of its retinoid compound tazarotene drug, which treats psoriasis. The drug maker said a couple of phase three trials of the drug had encouraging results … Santa Ana-based Advanced Medical Optics Inc. named Pricewaterhouse-Coopers LLP to replace KPMG LLP as its auditor after a review of “top firms.” Advanced Medical said it’s seeking more independence: KPMG is the auditor for Allergan, Advanced Medical’s former parent company.
REAL ESTATE
Irvine-based investor and property manager American Spectrum Realty Inc. had a fourth-quarter loss before taxes of $9.4 million vs. a loss of $2.7 million a year ago on a 30.2% increase in revenue to $9.5 million. The company was hurt by a $4.7 million writedown of real estate values and said it wouldn’t pay a fourth-quarter dividend. American Spectrum said it plans to focus on commercial and industrial space, and exit the shopping center and apartment markets. Shares of the company fell 17% to 3.20 on the news. Meanwhile, Wienerschnitzel founder John Galardi said he would buy about $2.1 million worth of stock in American Spectrum, which has a market value of $17.8 million at recent check. Galardi already owns 17% of the company … Irvine-based Fidelity National Financial Inc. said it plans to buy Salem, Ore.-based Key Title Co. for an undisclosed amount. Key Title operates in 12 Oregon counties and posted revenue of $20 million last year.
ENERGY
Federal regulators said California will get a $3.3 billion refund for overcharges during the energy crisis two years ago. The amount is nearly double the $1.8 billion regulators previously said the state is owed, but less than the $8.9 billion sought by state officials. Meanwhile, the federal energy commission said California is stuck with the $20 billion in long-term contracts it signed during the crisis.
GOVERNMENT
The Orange County Transportation Authority is looking at a number of ways to revise toll rates on the Riverside (91) Express lanes. Six of seven options include raising the toll during peak eastbound travel to $5.75, a $1 increase. The options, needed to keep traffic flowing efficiently on the lanes according to the agency, are set to be discussed Friday.
WHAT ELSE IS NEWS
Huntington Beach-based Quiksilver Inc. said its board approved a 2-for1 stock split. Shareholders were set late last week to vote on the split, which would take place on May 8 if OK’d … Aliso Viejo-based RemedyTemp Inc. opened a New York office, the ninth staffing operation the company has opened in the past 12 months.
ECONOMIC INDICATORS
Mixed: Orange County’s jobs picture in February, with total nonfarm jobs at 1,397,100, up 0.5% from a year ago, but the county unemployment rate at 3.9%, up 0.1%.
Standard Pacific Files to Sell Stock, Warrants
Irvine-based homebuilder Standard Pacific Corp. notified the Securities and Exchange Commission last week that it plans to periodically sell up to $510 million in debt securities, preferred and common stock and warrants.
Standard Pacific said it plans to use the proceeds of any sales for general purposes, including buying of land to build homes on and debt repayment.
The so-called shelf registration also includes 1.5 million shares registered for sale by shareholders.
