ENERGY
Gov. Gray Davis proposed a tiered electric rate increase under which large users’ rates would increase the most; the plan is likely to be merged with a similar PUC rate hike The PUC approved a restructured “interruptible” program for the state’s large power users (see story on page 65) Brea Power Partners, Brea, sued Edison International alleging that Southern California Edison has failed to pay for $12 million in power delivered since November Supervisors directed the county public works staff to research the idea of starting a power utility.
TOP STORIES
Edison International’s Irvine-based Edison Mission Energy unit sold $600 million in debt securities at 9.88% Ingram Micro Inc., Santa Ana, will cut 470 jobs, about 3% of its work force, including 42 in OC and close its Fullerton facility; meanwhile, Ingram received a fulfillment contract from Best Buy Co. UCLA economists said there is a 90% chance of a recession in the U.S. this year or next, but that Southern California will experience only a “slowdown” Prandium Inc., Irvine, said it may file for bankruptcy protection Supervisors approved Aloha Airlines’ request to begin nonstop flights between John Wayne Airport and Hawaii on May 1.
TECHNOLOGY
FileNET Corp., Costa Mesa, will lay off about 190 workers, or 10% of its workforce, including up to 80 in OC, and issued a first-quarter earnings warning that sent its shares down 28% to 10 15/16 Epicor Software Corp., Irvine, said it will reduce its “workforce and facilities” in a restructuring but offered no details Toshiba Corp. named Hisatsugu Nonaka president of its Irvine-based Toshiba America Information Systems Inc. unit, replacing Yoshihiro Maeda, who will return to Japan as executive VP of the parent’s digital media unit Boeing Co. will move the headquarters of its advanced R & D; division, the Phantom Works, from Seattle to Seal Beach; meanwhile, Boeing received a NASA contract to launch a scientific satellite aboard a Huntington Beach-made Delta II rocket (see related story on page 16) ICX Electronics Inc., San Clemente, hopes to raise $12.7 million in an IPO Broadcom Corp., Irvine, was among a group of investors in a $40 million first round for Argoquest Holdings LLC, which funds more than 60 Israeli tech firms Emulex Corp., Costa Mesa, warned that its earnings this quarter will not meet analysts’ expectations, but its shares still rose 36% to 17 in a tech sector rally The acquisition of ESynch Corp., Tustin, by New York-based Streamedia Communication Inc. was terminated by mutual consent Pen Interconnect Inc., Santa Ana, will acquire Amanda Co., San Juan Capistrano Rainbow Technologies Inc., Irvine, said it will post an unexpected first-quarter loss and plans layoffs Intersil Holding Corp., Irvine, will invest $5 million in PowerSmart Inc. Jon Firestone and Bill Richion resigned from the board of buy.com Inc., Aliso Viejo MindArrow Systems Inc., Aliso Viejo, will take an $18.7 million charge to account for 1.1 million shares that were issued without its knowledge; company founders also contributed 1.1 million of their shares for cancellation, and the firm will record an offsetting $18.7 million increase in capital; a criminal investigation of a former stock transfer agent is continuing SRS Labs Inc., Santa Ana, licensed technology to Hitachi Ltd. for use in its 32-inch plasma high-definition TVs Telenetics Corp., Lake Forest, received a $1 million contract extension to supply modems to a Chinese utility Stephen A. Dukker, founder and former CEO of eMachines Inc., Irvine, plans to sell his 5.5% stake in the firm Western Digital Corp., Lake Forest, promoted executive VP Arif Shakeel to COO.
HEALTHCARE
A dissident group led by Special Situations Partners submitted a slate of three directors for the 14-member board of ICN Pharmaceuticals Inc., Costa Mesa; meanwhile, a federal grand jury will not indict ICN Chairman Milan Panic or other executives for allegedly misleading investors but is still considering indicting the firm PacifiCare Health Systems Inc., Santa Ana, said its first-quarter and full-year earnings will come in at the top of the range of analysts’ estimates; its shares rose 9% to 26 1/16 Edwards Lifesciences Corp., Irvine, reported a 28.4% stake in PLC Systems Inc., Franklin, Mass., taken in a deal to market PLC’s heart-laser system Irvine-based Allergan Inc.’s Botox received Canadian approval for use in certain cosmetic procedures.
GOVERNMENT
President Bush reportedly is preparing to name Rep. Chris Cox, R-Newport Beach, to the U.S. 9th Circuit Court of Appeals The city of Anaheim canceled its contract with FirstWorld Communications, Greenwood Village, Colo., to build and operate a fiber-optic network in the city, took possession of the 22 miles of installed cable and canceled debts allegedly owed the city by FirstWorld, settling a non-performance suit against the firm.
REAL ESTATE
Pacific Gulf Properties Inc., Newport Beach, sold two industrial properties to CalWest Industrial Properties LLC for $9.7 million Cal State Fullerton, the city of Buena Park and Orange County agreed to develop 86 residential units that will be offered to the university’s faculty at below-market prices because the land will be leased Broughton Hospitality Group, Huntington Beach, acquired the Gala Villa Inn in Palm Desert A bridge extending Crown Valley Parkway from Mission Viejo to the planned Ladera Ranch community was opened The San Juan Capistrano City Council voted to study possible annexation of undeveloped land adjacent to the city and owned by Rancho Mission Viejo.
FINANCE
New Century Financial Corp., Irvine, sold a servicing portfolio containing $4.8 billion in loans to Ocwen Financial Crop. for $19.7 million; meanwhile, New Century said its direct-mail solicitations are under investigation by the FTC DiTech Funding Corp., Costa Mesa, fired 20 workers for violating its e-mail and Internet use policies.
WHAT ELSE IS NEWS
Keith Cos., Costa Mesa, expects to raise $35.5 million in a secondary offering New Horizons Worldwide Inc., Santa Ana, acquired its franchises in Atlanta and Marietta, Ga., for $17.5 million Swell Inc., San Juan Capistrano, will trim 20 jobs, about 30% of its workforce, put its snowboarding Web site on hiatus and said it will open a brick-and-mortar store In Orange, a California Federal Bank branch and an office of Anaheim-based CKE Restaurants Inc. were evacuated and closed for the day because of noxious fumes of unknown origin.
