Irvine-based mortgage lender New Century Financial Corp. shocked Wall Street last week with a warning for the recently ended quarter, a big projected drop in loans this year and plans to restate most 2006 results to fix accounting errors. New Century’s shares lost nearly half of their value,about $650 million,in two days. Growing borrower defaults in the fourth quarter are expected to drive a loss for the period. Analysts had expected New Century to make money during the quarter. The company, which makes loans to borrowers with imperfect credit, said it’s delaying fourth-quarter results, which were due last week. For 2007, New Century expects to fund 20% fewer loans from the $59.8 billion it did in 2006.
Irvine-based chipmaker Broadcom Corp. reported a big drop in fourth-quarter net income on stock compensation costs. Profits before charges were off slightly from a year earlier. The company’s quarterly net income was $45.1 million, down from $110.2 million a year earlier. The results include a $50 million charge for stock options. Excluding charges, Broadcom said it earned $185 million, down 6% from a year earlier. Revenue for the quarter rose 12.5% to $923.5 million.
Anaheim-based Pacific Sunwear of California Inc. plans to close 74 stores and warned about results for its recently ended quarter. Pacific Sunwear, which runs about 1,200 mall stores, said it plans to close 74 stores in its d.e.m.o. chain, which sells hip-hop style clothes. The company now runs about 225 d.e.m.o. stores, which are slumping. The company expects to see closure-related pretax charges of $25 million to $27 million in results for the quarter through January. Pacific Sunwear said it expects earnings of $15 million to $16.7 million for the recently ended quarter, about half of what analysts had been expecting.
Anaheim-based Multi-Fineline Electronix Inc. said Monday its suit against parent WBL Corp. over an unwanted acquisition was dismissed by a Delaware court. The case was thrown out on technical issues, including jurisdiction over Singapore-based WBL. M-Flex, as the circuit board maker is known, had planned to buy another WBL-owned company, MFS Technology Inc. Last spring, M-Flex offered $500 million for MFS but soon sought to get out of the deal.
Irvine-based Gateway Inc. swung to a profit in the December quarter thanks in part to a tax benefit. The struggling computer maker reported net income of $8.8 million, versus a year-ago loss of $20.9 million. The results were in line with estimates. Revenue fell 9% to $1.02 billion, short of an expected $1.05 billion.
Irvine-based Printronix Inc. delivered strong results as promised. The industrial printer maker said net income for the December quarter climbed 55% to $2 million. Analysts expected $768,000 in profits. Several large transactions closed earlier than expected. Revenue for the quarter was at the top of the company’s guidance at $34.9 million. Printronix sees a slower pace for the current quarter.
Fullerton-based Beckman Coulter Inc.’s profit surged nearly fourfold in the fourth quarter, thanks to declining expenses. Beckman, a maker of medical testing equipment and supplies, said its profit went up 250% to $62.3 million on an 8.6% rise in sales to $712 million. Wall Street expected Beckman to earn $60.4 million in the quarter. Beckman said its 2006 profit rose 24.1% to $186.9 million on a 3.5% sales jump to $2.5 billion.
Irvine-based heart valve maker Edwards Lifesciences Corp. reported higher fourth-quarter profits before charges and offered first-quarter guidance in line with expectations. Edwards said it earned $37.4 million in the quarter before charges and stock option costs, an 11% rise from a year earlier. Including restructuring and product discontinuation charges, net income fell 46% to $20.7 million. Sales came in at $265.6 million, up 6% but slightly below Wall Street’s expected $267 million.
Irvine Healthcare software developer Quality Systems Inc. said the Securities and Exchange Commission is looking into stock trading by its Chief Financial Officer Paul Holt. Word of the probe delayed the full release of Quality’s results for the December quarter. Quality expects to report revenue of $38.5 million, up 44% from a year earlier. Net income for the quarter is expected to be $8.7 million, up 81%.
Lake Forest-based home healthcare provider Apria Healthcare Group Inc. saw fourth-quarter profits flat from a year earlier after taking out onetime tax and other gains. Apria earned $19.8 million in the quarter, versus $19.5 million a year earlier. With onetime tax benefits, Apria’s net income was $21.1 million. Medicare reimbursement cuts ate into revenue and net income growth. Apria provides breathing and other treatments to patients in their homes. Sales for the quarter was $391 million, up 9% from a year earlier.
Foothill Ranch-based sunglasses maker Oakley Inc. said its fourth-quarter profit fell from a year earlier on higher sales and forecast better-than-expected 2007 results. Oakley’s fourth-quarter net income was $7.7 million, down 20% from a year earlier and below expectations. Integrating 2006 acquisitions ate into profits. Sales were up 20% to $187 million, boosted by acquisitions last year and ahead of what analysts expected.
