Compiled by Julie Leupold
Santa Ana-based First American Corp. said last week it plans to cut 1,300 jobs during the quarter, primarily in its core title insurance business, as a result of the slumping housing market. First American cut another 600 jobs in the second quarter. The combined cuts are expected to save the company $108 million. Of the 1,900 jobs cuts announced, 1,400 are in the company’s title insurance and services segment. First American employs roughly 30,000 people companywide, including about 1,600 people at its Santa Ana campus. The company said it also expects to cut executive benefits in the third quarter, saving $16 million.
Irvine computer maker Gateway Inc. is selling its struggling business of selling computers and services to businesses for $90 million, ahead of its own $710 million sale to Taiwan’s Acer Inc. Idaho’s MPC Corp., a seller of computers and related products with yearly sales of about $200 million, is buying the business from Gateway. MPC plans to take over the unit’s operations and warranty support services, which Gateway values at about $60 million. Gateway also is taking a 20% stake in MPC, which is valued at about $20 million. MPC is offering a note for the remaining $10 million. The sale, which includes Gateway’s Nashville configuration center, is set to close in the fourth quarter. MPC plans to keep the Gateway Professional name for the business and then move to the MPC brand within a year.
Broadcom Corp. of Irvine can pursue antitrust claims against Qualcomm Inc., a U.S. Court of Appeals ruled, reversing a lower court’s decision. Broadcom sued Qualcomm on antitrust grounds in New Jersey in 2005, accusing the San Diego chipmaker of establishing a monopoly on new cell phones.
Quiksilver Inc. posted a loss for the quarter ended July 31, versus a year-ago profit, due to charges related to a pending acquisition. Without charges, results met Wall Street expectations. The company lost $7.9 million with charges, compared with a profit of $5.3 million a year earlier. Quiksilver earned $2.5 million before charges, which stem from the company’s buyout of minority investors in its Roger Cleveland Golf Co. unit. Analysts see the move as a prelude to a possible sale of the unit or larger sale of the company’s struggling Rossignol division, bought in 2005.
Orange-based ACC Capital Holdings Corp. is selling loans and the mortgage servicing business of Ameriquest Mortgage Co. to Citigroup Inc. and shutting down the rest of the company. As recently as 2005, Ameriquest and sister company Argent Mortgage were the No. 1 subprime mortgage lender. Ameriquest stopped taking loan applications on Aug. 1. Citigroup said most of the remaining 2,000 employees,the bulk of them in Orange and Rancho Cucamonga,would retain their jobs.
Orange County companies made 162 acquisitions during the 19 months through July, compared to 152 sales of OC companies during the period, according to report on local deals worth $2 million or more by RSM EquiCo. Investors, including private equity groups, were the leading buyers of OC companies with 18 purchases. Local software companies made 24 acquisitions during the period, while 21 were sold. Among local companies, the most active buyers were First American Corp., with 11 acquisitions, Broadcom Corp., with five, and Sunstone Hotel Investors, with four. The average disclosed value was $109 million.
The county’s newest Metrolink station, in Buena Park, began shuttling train riders last week. The train station opened after months of delays caused by last-minute upgrades. The upgrades include installation of a third track, security cameras and elevator improvements at the nearly $11 million project. The Buena Park station is the first in the county to have a video-surveillance system. Features also include 600-foot boarding platforms in both directions, waiting areas with canopies and benches, a clock tower, a pedestrian overpass, bicycle storage and a 300-car parking lot. Construction ran concurrently with the nearby development of townhouses. The station is the county’s 11th. It is expected to serve 500 people daily and alleviate some congestion at the Fullerton Transportation Center, which serves more than 2,500 riders a day.
