EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORIES
Food and Drug Administration regulators warned Irvine-based Allergan Inc. that the company’s advertising for cosmetic uses of the Botox toxin is misleading because the ads don’t say that the wrinkle treatment is temporary or that it is only for 18- to 65-year-olds, among other claims; Allergan refused to pull its print and TV ads as ordered, saying it strongly disagreed with the criticism; the company said it is in talks with regulators and is “confident” it can address their concerns meanwhile, Allergan said it plans to raise as much as $350 million by selling bonds, according to a regulatory filing; the company said it would use the funds to repay debt, make acquisitions or spend on capital projects Huntington Beach-based apparel maker Quiksilver Inc. beat earnings estimates that had already been revised upwards earlier this month; the company said its third-quarter operating profit was 7.1% higher to $16.5 million vs. last year on a 12% increase in sales to $174 million thanks to a strong back-to-school season across its brands (see story, page 1).
TECHNOLOGY
Irvine-based Lantronix Inc. said its June quarterly operating loss grew 10-fold to $75.8 million vs. last year on a 9.8% decline in revenue to $11.5 million; the company said it would lay off 50 workers, or 22% of its staff, and take other measures to reduce operating expenses by about $12 million a year; Lantronix will take a one-time charge of $3 million to $5 million in its September quarter for the restructuring Santa Ana-based SimpleTech Inc. and Garden Grove-based DPAC Technologies Corp. asked a judge to dismiss a patent infringement suit that SimpleTech had filed; the dismissal was “without prejudice,” leaving room for SimpleTech to re-file the case in the future Orange-based Worldwide Wireless Networks Inc. filed for bankruptcy protection; the company said it’s hoping to sell its assets to another Internet service provider in the next two months Irvine-based Intersil Corp. released a highly anticipated chip that allows up to five times more information to be stored on a DVD Jippii Group, a Finnish wireless services company, opened an office in Irvine with four workers; the company plans to build the unit into a sales, marketing and engineering operation Irvine-based Interplay Entertainment Corp. faces a Nasdaq qualifications panel on Sept. 19 to explain how it can get its stock price above the $1 minimum to stay on the small cap exchange; Interplay has proposed a 1-for-10 reverse stock split, among other measures, to boost its share price, which was at 21 cents at a recent check.
HEALTHCARE
Irvine-based Sicor Inc. got approval from the Food and Drug Administration to make a generic version of AstraZeneca PLC’s Diprivan anesthetic Lake Forest-based medical device maker Allvivo Inc. named Frank Ahmann its chief executive.
GOVERNMENT
The Irvine City Council said it would put a second ballot measure concerning the CenterLine light-rail project to a citywide vote; one measure asks if any expansion of CenterLine in Irvine should be submitted to voters, while the other measure put forward by the city council last week would ask residents whether the CenterLine should enter Irvine at all; earlier, the Orange County Transportation Authority approved a $1.1 billion CenterLine plan that shortened the route to 11.6 miles,plans call for a line from Santa Ana to the University of California, Irvine, rather than Irvine City Hall as previously proposed The University of California, Irvine, saw the ranking of its MBA program fall to No. 49 from No. 29 on the Wall Street Journal/Harris Interactive annual survey; Jone Pearce, interim dean of UCI’s Graduate School of Management, said the lower ranking was a “matter of very serious concern at this school” in published reports; meanwhile, UCI said that its professors received $212 million in contracts and grants last year, up 9% from the prior year To help make up a $57 million budget shortfall, the Orange County Executive Office plans to offer early retirement packages to more than 1,000 government workers.
FINANCE
A federal judge OK’d a $75 million settlement against Irvine-based First Alliance Mortgage Corp., which was accused of engaging in a misleading telemarketing program; the liquidation of First Alliance, which is in bankruptcy protection, will yield $60 million to about 18,000 borrowers and $15 million to attorneys.
REAL ESTATE
The Irvine Ranch Water District wants to build a selenium-treatment artificial wetland on 20 acres of the former Tustin Marine base; the plan would cut in half the number of homes developers could build on the coveted property, which is currently up for bid in an auction.
WHAT ELSE IS NEWS
Camarillo-based Power-One Inc. said it would close its Costa Mesa factory and lay off 135 workers there as part of a company-wide cost-cutting measure that will slash 636 jobs Irvine-based St. John Knits International Inc. said its third-quarter earnings grew 51% to $5.8 million vs. last year on a 10% jump in revenue to $88 million Irvine-based Freedom Communications Inc. named Doreen Wade as president of its broadcast unit; Wade replaces Alan Bell, who was named chief executive of the company, which is the parent of the Orange County Register newspaper, on Aug. 22; prior to her promotion, Wade was general manager of Freedom’s CBS affiliate in West Palm Beach, Fla. Jim Jannard, chief executive of Foothill Ranch-based Oakley Inc., bought 250,000 shares of the company for 9.50 to 9.90 a share, according to a regulatory filing; Jannard owns about 42.7 million shares of the sunglasses maker; meanwhile, Oakley’s board approved a repurchase of up to $20 million of its stock; the company has bought back about $40 million of its shares since 1999 Irvine-based Yard House Restaurants LLC said it received a $24 million investment to fund six new restaurants, including ones in San Diego, Pasadena and Denver; the company has restaurants in Irvine, Costa Mesa, Long Beach and Rancho Mirage Irvine-based Ocean Pacific Apparel Corp. said it will expand its Op King of Skate pay-per-view concept to include Op King of Snow and Op King of Surf events next year Hyundai Motor Co.’s Fountain Valley-based U.S. operation said it would provide extended warranties and roadside assistance to some 400,000 people who bought its 1992 to 2003 Tiburon model because the automaker overstated the car’s engine power.
