Compiled by Julie Leupold
TOP STORIES
Michael McKee, chief executive of The Irvine Company, is retiring. McKee has been the longtime No. 2 at the real estate owner and developer, behind chairman and owner Donald Bren (see Insider column, page 3). McKee was named to the vacant chief executive’s post a year ago, after serving as chief operating officer and vice chairman. He’s leaving Sept. 1, with no direct replacement named. Dan Young will continue to lead the company’s community development unit. Rick Gilchrist stays as head of the Irvine Co.’s office buildings, shopping centers, apartments, hotels, golf courses and marinas.
An analyst downgraded shares of Edwards Lifesciences Corp. on concerns about a new type of heart valve it is developing. JPMorgan & Chase Co. analyst Michael Weinstein downgraded Irvine-based Edwards to “underweight” from “neutral.” Weinstein said he sees a higher than expected risk of deaths from the company’s less-invasive heart valve undergoing testing. He questioned whether regulators would approve the valve, putting in doubt the efforts of Edwards and others working on similar valves. The valves inserted via a catheter have been seen as grabbing a sizable part of the market in coming years.
TECHNOLOGY
Shares of Anaheim’s Multi-Fineline Electronix Inc., a maker of flexible printed circuit boards for cell phones, plunged 35% at one point last week on concerns about the company taking cost-cutting charges in the current quarter. The company said it plans to shutter a Tucson plant and move some operations to Anaheim. The change and other moves, including adding another plant in China, are projected to cost $24 million.
For the June quarter, Emulex Corp. reported $113 million in sales, down 11% from a year earlier and missing analysts’ expected $114 million in revenue. Including charges for stock compensation, severance pay, write-downs on assets and other costs, the company swung to a loss of $50 million. Without the charges, Emulex posted profits of $18 million, down 35% from a year earlier and in line with analysts’ expectations. Excluding onetime charges, it’s looking for September quarter profits of $15 million to $17 million. Analysts were expecting $19 million in profits.
HEALTHCARE
Aliso Viejo-based Valeant Pharmaceuti-cals International is selling some of its European operations to Swedish drug company Meda AB for nearly $400 million. Meda will pay $392 million in cash for Valeant’s subsidiaries in Western, Central and Eastern Europe, as well as rights to products and licenses.
Advanced Medical Optics Inc. posted second-quarter earnings of $14.6 million, a swing from a $166.8 million loss a year earlier. Analysts expected the company to make $16.4 million. For the year, Advanced Medical says it expects to make $61 million to $69.9 million before special items, down from a previous forecast of $76 million to $88.2 million. The company maintained its sales expectations.
REAL ESTATE
Costa Mesa’s South Coast Home Furnishing Center LLC, owner of the 300,000-square-foot Hyland Avenue mall of home furnishing stores, defaulted on an $84 million mortgage from LaSalle Bank. South Coast Home Furnishing Center has said it doesn’t intend to resume payments on the loan and has agreed to allow a court-appointed receiver to oversee the property while LaSalle’s foreclosure action is pending.
GOVERNMENT
The Orange County district attorney’s investigation of county Treasurer-Tax Collector Chriss Street cleared him of wrongdoing in questions about the remodeling of his office and his taking of paid time from work to tend to legal issues from his prior work as manager of the bankrupt Fruehauf Trailer Corp. pension plan.
OTHER NEWS
Irvine officials tapped Michael Ellzey, a recently hired deputy executive, to be promoted to top administrator of the Orange County Great Park. The decision has yet to be approved by the park’s governing board.
The Orange County Performing Arts Center saw $13 million in losses during its recently concluded fiscal year because of woes in the bond market, which have sparked higher interest and insurance payments. The center relied on bonds to finance its $240 million expansion, completed in 2006.
