Compiled by Alisha Gomez
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H & R; Block Inc. said last week it’s considering a sale of its Irvine-based Option One Mortgage Corp. Meanwhile, Option One plans to cut its loan operations by a third by closing 12 offices in the next four months. Business from the closing branches is set to transfer to other offices. No local branches are closing, though sources said the Irvine office has seen layoffs. Option One is the fifth largest maker of subprime loans to borrowers with imperfect credit, with yearly originations of about $40 billion.
Anaheim-based circuit board maker Multi-Fineline Electronix Inc. said net income for the quarter ended Sept. 30 fell to $2.2 million from $11 million a year earlier. Sales for the quarter slipped 0.5% to $110.3 million. Multi-Fineline, known as M-Flex, blamed the lower earnings on a slowdown in sales to its largest customer, Motorola Inc., which was 75% of sales during the quarter. M-Flex said it saw declining market share with Motorola.
Anaheim circuit board maker DDi Corp. reported third-quarter sales of $51.4 million, up 11.7% from a year earlier. DDi, which makes circuit boards on quick notice for computer makers and others, said its net loss was $4.5 million, vs. $27 million a year earlier. Earnings before charges and other items were $4.7 million, up 78% from a year earlier. DDi’s gross profit was 17.7% of sales in the quarter, up from 14.2% a year earlier. In the quarter, DDi sold its assembly business to Escondido’s Veritek Manufacturing Services LLC for $12 million and acquired Ohio circuit board maker Sovereign Circuits Inc.
Nationwide Health Properties Inc., a Newport Beach-based owner of nursing homes and other healthcare facilities, said it was selling 30 communities in eight states to Chicago-based Brookdale Senior Living Inc. for $148.6 million. Nationwide currently leases the facilities to Brookdale, an operator of retirement communities and nursing homes. The sale’s set to close by the end of November.
Newport Beach-based William Lyon Homes Inc. reported a 72% decline in third-quarter profits, the latest local homebuilder to feel the effects of a cooling housing market. Net income for the quarter was $10.5 million, down from $38 million a year earlier. Revenue fell 17% to $311 million. Chairman and Chief Executive William Lyon took the homebuilder private during the quarter.
Irvine-based SunCal Cos. made a bid for a 50-acre piece of land being considered for a football stadium in Anaheim. City officials said they are entertaining several developers’ bids for the land in the Platinum Triangle, including for development of condominiums, a hotel and low-cost housing. No plans for an NFL team in the city have been made. SunCal’s $80 million plan values the land in the Platinum Triangle at $30 million more than the city’s appraisal.
Orange County voters last week voted to extend half-cent sales tax Measure M for transportation projects, while Newport Beach voters resoundingly rejected tightening the city’s slow-growth law. Measure M, which needed a two-thirds majority to pass, got a narrow win with a 68.5% yes vote. Newport Beach voters did an about-face by rejecting Measure X, known as Greenlight II, by a resounding 62% (see story, page 3).
The Dana Point City Council last week approved a plan to create a downtown. The plan includes a mix of housing, commercial and high-rises for the areas along Coast Highway and Del Prado. The Coastal Commission still needs to approve the plan, which could take up to 10 years to realize.
Wall Street last week shrugged off a big third-quarter profit drop at Anaheim-based Pacific Sunwear of California Inc., focusing instead on the retailer’s outlook for the current quarter and its moves to cut inventory and slow store openings. After missing analysts’ expectations for third-quarter profits and sales, Pacific Sunwear said it expects profits of $31 million to $35 million for the current quarter, higher than what some on Wall Street were expecting. For the third quarter, Pacific Sunwear said net income was $9 million, down 76% from a year earlier. The results include a charge for unsold shoes and accessories. Sales were $375.4 million, vs. $377.5 million a year earlier.
Shoemaker American Sporting Goods of Irvine, which confirmed last week it’s putting itself up for sale, is set to move its headquarters to Aliso Viejo in January. The company has 4,000 employees worldwide, including 200 in Irvine.
Online auto marketer Irvine-based Autobytel Inc. said its third-quarter loss widened on lower revenue and higher expenses. But the company’s shares surged last week after news of a marketing pact with Time Warner Inc.’s AOL and the possible sale of two Autobytel units. The company posted a third-quarter loss of $7.9 million, compared with a loss of $287,000 a year earlier. Revenue fell 8% to $28.1 million.
