TOP STORIES
Sun Healthcare Group Inc., an Irvine-based operator of nursing homes and other healthcare businesses, plans to split in two, with its real estate holdings and operating subsidiaries becoming two publicly traded companies. Sun’s operating group will continue to provide skilled nursing care, rehabilitation and other services and retain the Sun Healthcare name. The second company is set to hold all of Sun’s owned real estate and go by Sabra Health Care REIT Inc. (see story, page 3).
TECHNOLOGY
Fountain Valley’s Kingston Technology Co., the biggest maker of memory products for computers and consumer electronics, widened its market share lead last year. In 2009, Kingston grew its share to 40% of the market for memory modules—circuit boards with memory chips that speed the performance of computers and consumer electronics. That’s up from 33% market share in 2008 and 28% in 2007, according to data from El Segundo-based iSuppli Corp. The company’s closest competitor, Taiwan’s A-Data Technology Co., had 7.4% of the market.
Irvine-based chip startup Clariphy Communications Inc. raised $24 million in a third round of venture funding. Clariphy makes chips that run optical networks, which use light waves to transmit data. The company is set to use the money to develop products.
HEALTHCARE
Advanced Sterilization Products, an Irvine-based unit of Johnson & Johnson, received a warning from the Food and Drug Administration concerning manufacturing issues. The FDA called for further inspection and an outside audit and certification of ASP, which makes devices for sterilizing medical instruments.
Quality Systems Inc., an Irvine medical software maker, said its profit for the recently ended quarter rose 13% from a year earlier to $13.1 million but fell short of the $14.2 million analysts were expecting on average. Revenue rose 19% to $78.5 million, slightly below the $78.6 million analysts were expecting. Results were negatively affected by costs relating to Quality’s February acquisition of Opus Healthcare Solutions, a Texas-based software maker.
Irvine’s Cornerstone Real Estate Funds and Florida’s Servant Healthcare Investments LLC said a real estate fund run by Cornerstone acquired an 80% stake in a joint venture that will own two assisted living facilities. The properties are in South Carolina and have a total of 180 units. Royal Senior Care LLC, which currently owns both facilities, will keep the remaining 20% stake in the $27 million transaction.
A trial of an experimental breast cancer drug developed by Tustin-based Peregrine Pharmaceuticals Inc. showed that three-quarters of patients responded to the treatment, according to the company. The trial enrolled 46 patients with advanced breast cancer who were treated with a combination of the drug, called bavituximab, and chemotherapy drugs. Thirty-four patients saw their tumors shrink at least 30%. Four patients had their tumors disappear.
REAL ESTATE
Development plans for West Coyote Hills, a 760-home and retail project proposed on an abandoned oil field in Fullerton, were struck down last week by Fullerton’s City Council. Zoning changes and other entitlements needed for the 510-acre project, were denied by a 3-2 vote (see related story, page 1).
The median price of an existing Orange County home declined by $2,000 in April from March, with demand still strong for lower-priced distressed properties here and across the state, the California Association of Realtors said. The median price for an existing stand-alone OC home sold in April was $491,120, a less than 1% decline from March but a nearly 14% increase from a year earlier. The number of sales here rose 15% from a year earlier but edged down 1.4% from March, the association said.
APPAREL
Irvine-based clothing maker Billabong USA is making a deeper move into retail by buying Torrance-based Becker Surf & Sport, which runs four OC stores. Becker’s stores and website sell clothes from Billabong and several of its competitors and are expected to continue doing so after the deal closes. Terms of the deal weren’t disclosed.
EDUCATION
An analyst downgraded the stock of Santa Ana-based vocational school operator Corinthian Colleges Inc. An analyst at Argus Capital downgraded Corinthian from “buy” to “hold,” citing regulatory risks and slowing enrollment growth (see related story, page 7).
OTHER NEWS
OC auto dealers saw their third straight month of sales gains with results for April. Sales in April were up 7.5% from a year earlier to 10,202 autos, according to the Newport Beach-based Orange County Automobile Dealers Association. The figure is based on registrations with the state, a barometer of sales. Sales have been up every month this year except for January, which was off by 3.2% to 8,403 autos. But last month’s sales still are below the 14,062 autos dealers sold in April of 2007.
Costa Mesa-based Orange County Local News Network ceased operations after four months. In an e-mail to staff, Chris Jennewein, president of San Diego-based parent U.S. Local News Network, said “the Orange County Local News Network has been forced to cease operations effective immediately.” Staffers worked out of the Los Angeles Times’ office in Costa Mesa and had four full-time workers.
