This past week’s news from www.ocbj.com and other sources.
TOP STORIES
Employers here shed 2,300 jobs in August from July for a total of 1.35 million nonfarm workers, according to the state Employment Development Department. Federal, state and local government agencies lost 2,600 jobs last month, the most of any sector. The government cuts were offset by companies adding 3,700 jobs in the professional and business services segment. The county’s unemployment rate was 9.6% in August, down from a revised 9.9% for July and below the 9.8% of a year earlier. On a yearly basis, the county gained jobs, albeit at a small clip. Employers here in August added 12,000 jobs, a 0.9% gain from a year earlier.
TECHNOLOGY
Irvine-based Microsemi Corp., a maker of chips for military, aerospace and industrial uses, acquired Atlanta-based VT Silicon Inc. and Bethesda, Md.-based Arxan Defense Systems Inc. for undisclosed terms. VT Silicon designs and makes power amplifier chips for cell phones. Arxan makes chips for the military that prevent tampering, piracy and reverse engineering. They’re built into weapons systems.
Irvine-based startup Kareo Inc., a maker of software that helps manage small doctors’ offices, raised $9.5 million in venture funding. Kareo plans to use the money to hire workers in customer service, sales, marketing and senior management and is looking to double its workforce to 40 in six months. Boston-based venture capital firm OpenView Venture Partners led the round.
Santa Ana’s Ingram Micro Inc., the biggest distributor of technology products, software and consumer electronics, acquired InterAct BVBA, a small distributor in Belgium. Terms of the deal, presumably small, weren’t disclosed. InterAct has 15 workers and sees yearly sales of roughly $13 million.
Aliso Viejo-based QLogic Corp., a maker of electronics for data storage networks, added two directors, including the chief executive of Newport Beach-based chipmaker Conexant Systems Inc. Scott Mercer, Conexant’s chief executive since 2008, joined QLogic’s board along with Bill Zeitler, a retired IBM Corp. executive. The appointments bring QLogic’s board to eight members.
Aliso Viejo’s Smith Micro Software Inc., a maker of compression and connectivity software for cell phones, laptops and other mobile devices, is set to build a new research and development office in Pittsburgh, Penn. Workers at the 50,000-square-foot office are set to do engineering, development and testing.
HEALTHCARE
Foothill Ranch-based Skilled Healthcare Group Inc. was downgraded by an analyst who said the nursing home company’s stock now trades about where it should. Skilled shares shot up 25% two weeks ago after the company agreed to pay a less-than-feared $50 million to settle a class-action lawsuit over staffing levels in 22 California nursing homes. Arthur Henderson of Jefferies & Co. cut his rating on Skilled to “hold” from “buy.” He said he expected the stock to trade around its current price and was positive on its long-term outlook.
Irvine’s Masimo Corp. was approved to sell its noninvasive and continuous hemoglobin measurement device in Japan. The device measures a protein that carries oxygen in the blood in patients in hospitals and other healthcare settings.
REAL ESTATE
The median price of an existing Orange County home in August rose to $440,000, a jump of more than $12,000 or 3% from a year earlier, according to a report from San Diego-based MDA DataQuick. The number of sales slid 9% from a year earlier to 2,538, suggesting August sales included fewer but more expensive homes than a year earlier. On a monthly basis, the median price here fell 2% from July. Sales were flat from July to August, though that wasn’t enough to keep prices from falling on a monthly basis after the initial June 30 expiration of a federal homebuyer tax credit. Home sales in July and August were off by about 25% from June.
APPAREL
Last week, an analyst at New York-based Jefferies & Co. started coverage on Quiksilver Inc. and Volcom Inc. with expectations of a rise in their shares. Quiksilver is undervalued because of the company’s recent debt issues and restructuring, according to the analyst. Jefferies has a “hold” rating on the shares. The analyst started coverage of Volcom with a “buy” rating.
OTHER NEWS
Hyundai Motor America Inc. plans to double the size of its Fountain Valley headquarters. The automaker, part of Hyundai Kia Automotive Group, plans to invest $150 million in the project and increase the facility to 500,000 square feet. Construction is planned to begin in the middle of 2011 and expected to be completed by the latter part of 2012. Hyundai is also expected to up its staff to 1,400 workers from about 900 (see related story, page 3).
Irvine’s Autobytel Inc., a provider of online consumer purchase requests and marketing resources to the automotive industry, bought Tampa, Fla.-based Cyber Ventures Inc. and Autotropolis Inc. for undisclosed terms. Cyber Ventures and Autotropolis cofounders Ian Bentley and William Ferriolo and certain members of their staff will join the Autobytel team.
The Anaheim Convention Center has signed San Juan Capistrano-based Interbike International Bicycle Expo to return to the convention center after a 14-year hiatus. Interbike, part of Nielsen Co., is the largest U.S. bicycle trading show and brings about 1,000 brands and about 20,000 attendees from around the world for a five-day show to buy and sell bicycles. The show is slated to start August 2011 with two days at Outdoor Demo, tentatively set for Irvine Regional Park.
