EXECUTIVE SUMMARY
Compiled by Mike Mason
Belcamp, Md.-based SafeNet Inc. wrapped up its $405 million buy of Irvine-based Rainbow Technologies Inc. SafeNet said it would cut about 75 jobs in Irvine. Rainbow had 120 workers when the acquisition was announced in October. Fifty workers are expected to remain in Irvine … Allentown, Pa.-based Akrion LLC bought the assets of Santa Ana’s Verteq Inc. for an undisclosed amount. Verteq, which makes chip-cleaning equipment, is selling assets to avoid bankruptcy. Akrion said it plans to maintain Verteq’s Santa Ana plant and workers … Irvine-based Quest Software Inc. wrapped up its $115 million acquisition of Dublin, Ohio-based Aelita Software Corp. … Irvine-based software and services seller DynTek Inc. said it bought Toronto’s Alex Woda & Associates for undisclosed terms … Lake Forest-based Western Digital Corp. plans to invest $152 million this year to expand capacity at its two Thailand plants Accutrac Software Inc. said it plans to move its headquarters from Los Angeles to Irvine. About 20 workers will move to the Irvine office at the University Research Park … Best Buy Co. Chief Executive Brad Anderson said he is “troubled” by Gateway Inc.’s buy of Irvine-based eMachines Inc. Best Buy sells eMachines computers and competes with Poway-based Gateway’s own stores selling its own computers and other consumer electronics. Wayne Inouye, a former Best Buy executive, is set to be Gateway’s chief executive.
St. Jude Medical Center in Fullerton said the Dhont Family Foundation would donate $2 million to the hospital over five years. Andre and Eveline Dhont, both now dead, moved to California from Belgium in the 1950s and amassed real estate holdings in North County Fullerton-based Beckman Coulter Inc. signed a licensing pact to use blood markers for detecting sepsis from Benicia, Calif.-based Research and Diagnostic Antibodies LLC.
Santa Ana put off a vote for 60 days on developer Michael Harrah’s proposed 1 Broadway Plaza office tower. Council members want more time to study the impact to downtown from Harrah’s $75 million, 37-story office building … Newport Beach-based Hopkins Real Estate Group said it bought a 157-acre parcel in Carson for $30 million. The empty site is a former landfill operated by Cal Compact Inc. until 1964 and could cost $30 million to $50 million to clean up. The property has been mentioned as a possible site for a National Football League team.
Germany’s Allianz AG, owner of Newport Beach-based Pacific Investment Manage-ment Co., is in talks with U.S. regulators about alleged improper mutual fund trading. Bond fund manager Pimco and related stock funds in New York were sued in February by New Jersey’s attorney general.
Tom Fuentes stepped down as chairman of the Republican Party of Orange County after 20 years in the post. Former Assembly Republican Leader Scott Baugh is a top candidate to replace Fuentes when the party’s ruling committee meets next month … The Coast Community College District approved the $28 million sale of KOCE-TV Channel 50 to its foundation. The deal faces a court challenge from religious broadcaster Daystar Television Network, which says its higher bid should be accepted for the PBS affiliate … Orange County supervisors formed a committee to look into election-day snafus from the county’s new electronic voting system. OC paid Austin, Texas-based Hart InterCivic Inc. $26 million for electronic voting machines … Chapman University in Orange and Western University of Health Sciences in Pomona called off their proposed merger after disagreeing over who would make up the combined school’s board of trustees and what the university would be named … The Department of Defense said companies in Orange County won $2.3 billion in defense contracts last year, up 60% versus a year earlier.
Foothill Ranch-based Wet Seal Inc. tripled its loss to $17.8 million for the three months ended Jan. 31, the sixth straight quarterly loss for the teen retailer. Sales for the quarter fell 8% to $148.3 million, while same-store sales dropped 10%. Wet Seal surprised analysts by saying it expects to lose 54 cents to 59 cents a share from continuing operations in the current quarter Kroger Co. said it planned to shutter 15 Ralphs Grocery stores in the Southland, including ones in Brea, Anaheim Hills and Westminster. Kroger cited slow sales at the stores for the closures.
ECONOMIC INDICATORS
Up: Orange County’s jobs picture in February, with nonfarm payroll up 1% to 1,421,100, versus a year earlier, and the unemployment rate at 3.5%, down from 4% last year.
Up: The median price of OC homes sold in February, up 23.7% to $475,000, versus a year earlier. The number of homes sold fell 3.4% to 398.
Down: The average rate on a 30-year, fixed-rate mortgage, which at 5.38% hit its lowest level since June, down from 5.41% a week before, Freddie Mac reported.
Mixed: County hotels in 2003, with occupancy up 3% from 2002 to 67.8%. But the average room rate fell 2% to $106.43, according to PKF Consulting. Separately, OC added 1,331 hotel rooms last year, according to Costa Mesa-based Atlas Hospitality Group.
