Compiled by Alisha Gomez
TOP STORIES
The Irvine Company last week announced big changes to its investment properties group, which oversees the Newport Beach-based company’s office, retail, apartment and resort operations. Clarence Barker, president of the investment properties group, is moving from his current position into an advisory role to Chairman Donald Bren. The changes are set to take place in the next six months. Rick Gilchrist, the former co-chief executive of Los Angeles-based landlord Maguire Properties Inc. who joined the Irvine Co. as president of its office properties division last year, will succeed Barker. Val Wheeler, executive vice president of asset management for office properties, will move into Gilchrist’s role.
Irvine-based chipmaker Broadcom Corp. has raised strike prices for options granted to three executives from 1998 to 2003, according to a Securities and Exchange Commission filing. The change covers 375,000 options granted to David A. Dull, senior vice president and general counsel, Thomas F. Lagatta, senior vice president for worldwide sales, and Bruce E. Kiddoo, acting chief financial officer. The move is tied to Broadcom’s investigation into the timing of stock option grants, though the company didn’t connect the matters in its filing. Broadcom’s under federal investigation for the timing of its options.
Advanced Medical Optics Inc.’s shares took a blow last week on news that the launch of a new contact lens could be delayed because of regulatory concerns. The Food and Drug Administration told the Santa Ana-based eye device and contact lens maker that it needs to expand its clinical trial of Tecnis Multifocal intraocular replacement lens by getting more people. Advanced Medical said the FDA’s request may push back the launch of Tecnis by a year to 18 months. Shares fell nearly 4% on the news. It’s another blow for Advanced Medical, which recently recalled nearly 3 million units of its Complete MoisturePlus multipurpose contact lens solution and Active Packs because of contamination at a Chinese plant.
Santa Ana-based title insurer First American Corp. said it found improperly priced and accounted stock options granted during the past 10 years totaling $35.7 million. A subcommittee investigating the company’s options said it did not find that the errors were the result of fraud, self-interest on the part of management or directors, or intent to misstate the company’s financial statements. The majority of the grants were made to non-executive employees of the company, the subcommittee reported. First American said it would restate earnings from 2001 and 2005 and take an expense of about $1.9 million in the first quarter.
Retailer Pacific Sunwear of California Inc. saw another drop in same-store sales last month. Anaheim-based Pacific Sunwear, which runs about 1,200 surfwear and hip-hop stores, reported a 3.2% drop in sales at stores open at least a year. The drop was more than Wall Street had expected. Analysts on average forecast a 2.9% fall in same-store sales. Sales at dominant surfwear chain PacSun fell 2.1%. The company’s smaller d.e.m.o. chain was off 9.4%. The news came a day after an analyst upgraded his rating on Pacific Sunwear based on turnaround efforts. The company is working to reverse a sales slump.
Foothill Ranch-based Wet Seal Inc., which runs mall clothing stores for girls and young women, saw a slight gain at the low end of its forecast in same-store sales for December. Sales for the month were up 1.3%. Last month, Wet Seal warned that its same-store sales would come in lower than previously thought. The company said it expected growth of 1% to 3%, down from an earlier view in the low to mid-single digits. The tepid sales growth is the first bump in what was a big turnaround year in 2006 for Wet Seal, which struggled with fashion missteps and other problems earlier in the decade.
Costa Mesa-based Volcom Inc., the hip clothing maker, last week said it will open a distribution center in Irvine. The facility is about double the size of Volcom’s current one at its headquarters. Volcom is leasing 164,000 square feet of space in Irvine for five years, starting around September. Volcom said expects to continue shipping from Costa Mesa through the end of the year, and will gradually transfer work to the new distribution center. A year from now, most of its products will go through the new location. Distribution space in Costa Mesa will be converted to offices and other space.
The KOCE-TV Foundation received a nod from the Federal Communications Commission last week. The FCC renewed KOCE-TV Foundation’s license for another seven years. KOCE-TV Foundation owns Huntington Beach-based TV station KOCE-TV. The license was granted based on the station’s commitment to serving the public. The FCC renewal could help KOCE-TV Foundation in its bid to keep the public station. Earlier, religious broadcaster Daystar Television Network of Dallas made a rival bid for the station.
