Compiled by Julie Leupold
TOP STORIES
Huntington Beach-based Quiksilver Inc. said last week it’s selling its Cleveland Golf Co. for $132.5 million to Japan’s SRI Sports Ltd. but indicated it plans to keep the rest of its struggling Rossignol division. The sale of Cleveland Golf, which it acquired along with France’s Skis Rossignol SA for $500 million in 2005, is set to close by Jan. 31.
HEALTHCARE
Fullerton-based Beckman Coulter Inc. reported higher third-quarter profits but narrowed its profit forecast for the rest of the year. The maker of medical testing products now expects yearly profits of $203 million to $206 million. Earlier, the company expected profits of $200 million to $209 million. For the third quarter, Beckman reported higher profits but softer sales because of slower business selling to medical researchers and a supply disruption.
Allergan Inc. received Food and Drug Administration approval for its Combigan eye drops for glaucoma, a year after regulators asked for an additional study on the drug. The company has been selling Combigan in Europe, Canada, Australia and Brazil, where Allergan said it is doing well. Allergan expects to start selling Combigan here during the quarter.
Irvine medical device maker Masimo Inc., one of this year’s best-performing initial public offerings, posted a third-quarter profit of $10.6 million, down 14% from a year earlier. The drop was attributed to a $2.8 million decline in royalty payments following settlement of a patent suit. Sales were up 11.8% to $64.4 million.
Irvine’s Vitreo Retinal Technologies received $5.75 million in venture funding from De Novo Ventures and $3.1 million from private local investors in its first round of funding. It will use the money for phase three clinical trials of two eye drugs.
REAL ESTATE
The Irvine Company opened the first phase of the redesigned Pelican Hill golf course late last week. It included two redesigned 18-hole golf courses and a new clubhouse. A hotel with villas and bungalows is set to open in a year on the 504-acre site.
The Irvine Co. executives and elected leaders last week unveiled plans that would let Newport Beach buy a plot of Newport Center land to build a city hall. As part of the deal, the city would get $27 million to build its new headquarters. Also included is $16 million to help spruce up parks, ease traffic and build a senior center. In exchange, the Irvine Co. could add 75,000 square feet of shops in Fashion Island and 430 homes near the Island Hotel. Voters approved such additions with a new general plan last year, but a formal agreement is required.
OTHER NEWS
Orange County Sheriff Mike Carona was indicted on federal corruption charges over allegations he misused his office for financial gain. His wife and alleged mistress were also implicated in the case. All were released on bail. Former assistant sheriff George Jaramillo has pleaded guilty in the case, admitting he took cash and gifts worth about $45,000 and filed false income tax returns concealing the income. As part of the plea agreement, Jaramillo is cooperating with prosecutors in the investigation of Carona.
New York Attorney General Andrew Cuomo is suing Santa Ana-based First American Corp. and one of its units for allegedly conspiring with Washington Mutual Inc. to inflate the value of homes. First American called the suit baseless.
Shares of Costa Mesa-based clothing designer Volcom Inc. fell 35% last week after the company warned about results for the current quarter. The company said it expects sales of $70 million to $73 million for the fourth quarter, below Wall Street’s expected $82.3 million. Volcom sees earnings of $7.3 million to $7.8 million, well below the $11.4 million analysts had been expecting.
Irvine-based Meade Instruments Corp., a telescope maker, said it is closing its local plant and sending work to Chinese and Mexican facilities. About 120 jobs are set be cut in Irvine by the end of February. The company said it expects to save about $10 million a year from the move. It also expects a $500,000 third-quarter charge from severance costs.
Walt Disney Co. has allotted $1.7 million to fighting plans for homes near its theme parks in Anaheim, according to a financial report released last week. The figure is up from the $402,000 the company pledged in July for the legal battle against housing plans by Irvine-based developer SunCal Cos., which last week upped the stakes by suing the owner of the site where it hopes to build.
ECONOMIC INDICATORS
Down: Home loan defaults in the county rose 159% in the third quarter from a year earlier. Home prices in Orange and Los Angeles counties fell more sharply in August than rest of the nation.
