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April 30, 2008

Company faces $29,000 fine for fatal accident

A company that handles freight in Worcester faces a nearly $29,000 fine after a fatal industrial accident.

Paul Harding of Spencer was killed in December when a large tire blew out on a crane he was working on. The blast sent the Intransit Container employee several feet into the air.

The US Occupational Safety and Health Administration last week alleged six safety violations in connection with the death. Among them: failing to adequately train workers and failing to ensure that tires are deflated before they are removed from vehicles.

The agency proposed fines totaling $28,825, and gave Intransit Container 15 days to indicate whether it will contest the citation.

The company’s president, Stephen Cotrone, did not immediately respond to a phone message today.
(AP)

Posted by globebusiness at 1:30 PM | Comments (0)

State far outpacing US economy, report says

The Massachusetts economy, buoyed by the technology sector, grew about five times faster than the nation's in the first three months of the year, the University of Massachusetts reported.

The state's economy expanded at 3.2 percent annual rate in the first quarter, UMass said, while the US economy grew only slightly -- at a 0.6 percent annual rate, according to the Commerce Department.

Massachusetts, after lagging behind the US through the economic recovery of the past few years, is weathering the recent national downturn because of the strength of its technology, science and healthcare sectors, according to UMass. State exports of technology and pharmaceutical products are strong and so is hiring in those sectors. Employment in professional, scientific and technical services, for example, grew nearly 4 percent over the past year, compared to less than 1 percent for the state as a whole, according to the state Department of Workforce Development.

Meanwhile, the state has been spared the worst of the housing collapse and mortgage industry meltdown because it did not experience the same level of speculative building as other parts of the country, such as California, Florida and Nevada. As a result, the state added 4,600 jobs in the first three months of the year even as the nation shed more than 200,000 payroll jobs.

"The technology part of our economy is offsetting the housing market,'' said Michael Goodman, director of economic and public policy research at the UMass Donahue Institute.

Nonetheless, consumers are struggling, UMass analysts said. Falling home values combined with rising food and fuel costs are hurting confidence and spending. Consumer sectors, such as retail, are losing jobs. Retail employment has declined about 1 percent over the last year, according to state figures.

And continued weakness in housing and consumer spending will slow the state's economic growth to an annual rate of about 2.5 percent over the next six months, according to UMass. At that rate of expansion, employment growth is likely to stall or decline, said Alan Clayton-Matthews, the UMass-Boston professor who calculates the state economic growth rates.
(By Robert T. Gavin, Globe staff)

Posted by globebusiness at 1:12 PM | Comments (0)

MicroFinancial declares quarterly dividend

MicroFinancial Inc. said its board approved a quarterly cash dividend of 5 cents per share.

The financial services company said the dividend is payable May 15 to shareholders of record as of May 5. (AP)

Posted by globebusiness at 12:33 PM | Comments (0)

State Street Corp. on track says chief

State Street Corp. chief executive Ronald Logue said the company is on track to reach long-term goals such as growing its foreign operations to 50 percent of total revenue.

Speaking at the Boston trust bank's annual meeting this morning high in its downtown skyscraper, Logue did not directly address some of the concerns stemming from the credit crisis that have led to charges and held back the company's share price this year. Among other things investors have been concerned with potential losses in four State Street investment vehicles that hold assets like mortgages and student loans.

But Logue cited other measures by which he said the company's strategy is in order, such as growing its Global Advisors investment unit, which has a higher profit margin than its traditional services lines, and increasing earnings and revenue each year.

"Consistency, consistency, consistency, that's where the market will reward us,'' he said. He also noted the company's increased attention to controls, such as the naming earlier this month of a new chief risk officer, Maureen Miskovic, previously a company director.

Several shareholder proposals failed to pass at the meeting by margins the company did not immediately release, including one that would given shareholders the chance to vote on compensation of top executives.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 12:23 PM | Comments (0)

Tizra signs up MIT Press

MIT Press has signed an agreement with Tizra, Inc., to use the company's recently launched Agile PDF software platform to create a website that will enable users to find, buy and view online versions of books published by the press.

The site, which will carry MIT Press branding, is scheduled to go live next month with books from the press's Computer Science and related collections.

The service represents the first time the MIT Press has sold online versions of its computer and information science books.

"Tizra offered us a very attractive way to build on our own brand, and to create new online products that play to the particular strengths of our publishing program," said Gita Manaktala, Marketing Director at the press. "Like other publishers, we are still learning the best ways to distribute our books online, so it's imperative that we work with technology that will let us respond and adapt quickly."

Posted by globebusiness at 12:09 PM | Comments (0)

Bank of America expands free museum program

From the Globe-trotting blog...

We like deals. Like 'em a lot. Bank of America has been running its Museums on Us program in May -- which is National Museum Month, for those of you keeping track -- a few years now. Bank customers got free admission to a bunch of museums by showing a check or credit or ATM card. First it was just regional and later it was expanded to the Northeast.

B of A now has decided to take it nationwide and change it from the month of May to the first weekend of every month (like this weekend, say). What does this mean? Well, besides museums like the MFA and DeCordova and others around here, you could hit the Met in New York, or perhaps the DeYoung in San Francisco. Ever been to the Art Institute of Chicago or the Houston Museum of Natural Science? You get the idea. There's a museum locator on the website.

Besides the B of A deal, Baskin Robbins -- they of the 31 flavors back in the day -- are offering a 31-cent scoop night (from 5-10) at all 2,700 locations nationwide as a benefit for the National Fallen Firefighters Foundation. So we're talking three scoops for less than a buck. And you get to help Jakes. Here's the store locator.
(By Paul Makishima, Globe staff)

Posted by globebusiness at 12:02 PM | Comments (0)

R.I. lawmakers increase gambling hours

State lawmakers desperate to fix a massive budget deficit voted Tuesday to allow Rhode Island's two slot parlors to operate around-the-clock on weekends and holidays, a step that could raise more money for the state.

The proposal would also allow Twin River in Lincoln and Newport Grand to close as late as 3 a.m. on weekdays.

Identical bills passed 27-6 in the Senate and 51-19 in the House. The separate House and Senate bills must be approved by the opposite side of the legislature before they go to the governor.

Rhode Island faces its worst financial problem since it bailed out failed banks and credit unions in the early 1990s, with a sluggish economy and a $568 million budget deficit.

Earlier this year, officials at Twin River estimated the extra gambling hours could raise an additional $11.8 million for the state. The state already depends on video slot machines to provide about 8 percent of state income.

But the proposals have critics, particularly among Republicans and people who live near the slot parlors. In a nonbinding referendum in November, Lincoln residents rejected longer gambling hours at Twin River and also opposed turning the slot parlor into a traditional casino offering card and table games.

Newport Mayor Stephen Waluk told lawmakers in February that the state should find other ways to fix its budget problems.

During the debate, lawmakers opposed to 24-hour gambling tried unsuccessfully to raise the state's legal gambling age from 18 to 21 and denounced video slot machines as a tax on the poor. Several said that permitting around-the-clock gambling brings Rhode Island closer to creating a full-fledged casino, an idea voters rejected in 2006.

"We had a debate about what ages we're going to allow pockets to be picked," said Rep. Nicholas Gorham, a Republican gambling opponent. "When can you start having your pocket picked so that we can get more money to the state?"

Republican Gov. Don Carcieri will not support expanded gambling if residents in Lincoln and Newport are against it, Carcieri spokesman Jeff Neal said Tuesday. Neal would not comment on whether Carcieri would veto the bill. Last week, Carcieri told Rep. Robert Watson, the Republican minority leader, that he would veto, Watson said. (AP)

Posted by globebusiness at 10:22 AM | Comments (0)

InfraReDx device gets FDA nod

U.S. regulators approved the first device that lets doctors see fat buildup inside coronary arteries to gauge heart attack risk.

The LipiScan NIR Catheter Imaging System uses infrared technology to identify when artery-clogging plaque has a large fatty core, a characteristic that has been linked to ruptures and blood clots, according to a statement posted today on the Food and Drug Administration's Web site. The device is made by closely held InfraReDx Inc., of Burlington, Massachusetts.

Almost 1 million Americans have heart attacks each year and about half die, the FDA said. Many heart attacks are caused by ruptures in the fatty calcium and other substances that stick to artery walls, making it hard for blood to pass.

The LipiScan device works by inserting a fiber-optic laser into the artery, shining light through the blood to the artery wall and measuring the wavelengths that are reflected back, the FDA said.
(Bloomberg)

Posted by globebusiness at 10:08 AM | Comments (0)

LoJack earnings hurt by slumping auto sales

LoJack Corporation reported today that revenue for the first quarter ended March 31, 2008 declined 15% to $46.1 million, from $54.1 million in the same period a year ago.

Net income was $1.0 million for the first quarter, compared to $6.1 million for the same period a year ago, and earnings per fully diluted share were $0.05, compared to $0.32 in the same quarter a year ago.

In announcing the results, Richard T. Riley, Chairman and Chief Executive Officer said, "As we reviewed on April 2, our financial performance in the first quarter was directly affected by the continued domestic economic challenges, which have severely impacted the automotive industry, and by the timing of orders from our international licensees."

Domestic revenue in the first quarter declined 19% to $31.0 million from $38.3 million in the prior year, due to a 19% decline in unit volume.

"While all of our major geographic regions were impacted by the decline in domestic auto sales," Riley said, "unit volume declines were most acute in our western region. The automotive market in southern California continues to struggle. Since we are highly penetrated in southern California, our domestic auto unit volume declined at a pace that was disproportionately high, relative to the national trend of declining auto sales for the quarter... We continue to expect a decline in domestic auto sales for the year and, as a result, believe that our domestic unit sales volume will continue to be negatively impacted throughout the remainder of 2008."

International revenue in the first quarter also declined to $10.3 million, from $11.2 million in the prior year, reflecting a 10% decline in unit volume.

Posted by globebusiness at 8:49 AM | Comments (0)

Solidworks product wins magazine award

The latest version of the SolidWorks Corporation's 3D CAD software, SolidWorks 2008, has won a 2007 NASA Tech Briefs Readers' Choice Product of the Year Award..

Each month, NASA Tech Briefs names a product of the month. SolidWorks 2008, launched in June 2007, was the product of the month for July 2007. The magazine's 190,000-plus readers selected SolidWorks 2008 from a dozen products of the month from 2007. Readers cast their votes for the product they thought was the most significant new product introduced to the engineering community in 2007.

Posted by globebusiness at 8:45 AM | Comments (0)

UMassOnline logs second record year

UMassOnline, the online learning division of the University of Massachusetts, today announced a second consecutive fiscal year of record-breaking enrollment and revenue results. Matching last year's results, which were the best in three years, fiscal year 2008 at UMassOnline saw a 26.2% increase in enrollments, to 33,900 over 26,855 in fiscal year 2007, and a 31.9% increase in revenue to $36,977,854 over fiscal year 2007 revenues of $28,030,985.

According to the Sloan Consortium's most recent research report entitled 'Online Nation: Five Years of Growth in Online Learning,' online enrollments nationwide were growing by 9.7% as of the Fall, 2006 semester, while the growth rate in the overall higher education student population was 1.5%. In contrast UMassOnline's enrollment in fiscal year 2008 grew two and a half times faster than the national average for online enrollments.

UMassOnline CEO David Gray attributes the sustained growth, in part, to developments throughout the fiscal year that saw UMassOnline, introduce new "blended learning" innovations for online learners.

The first blended learning offering, announced in June, 2007, featured the Graduate Program in Health Management and Policy via UMass Lowell. In November, 2007, UMassOnline launched the nation's first fully online Master of Public Health in Nutrition via UMass Amherst. Later that same month, ten new blended learning programs were announced representing all five campuses in the University of Massachusetts system.

These included a BA in Health and Human Services and Doctor of Nursing Practice from UMass Amherst; Expansion of RN to BS and Post Master's Nurse Practitioner Certificate program from UMass Boston; B.A. in Liberal Arts Degree Completion program and business programs from UMass Dartmouth; Health Management and Policy Master's program with Certificates in Health Informatics, Health Management, and Health Policy from UMass Lowell; and Nurse Educator Post-Master's Certificate program and OBGYN Professional Development Training for Clinical Issues from UMass Worcester Graduate School of Nursing.

In January of this year, three more online study concentrations were announced. These new programs included a collaborative focus in Arts Administration - the first and only program of its kind in the nation - as well as within the rapidly changing fields of Journalism Studies and Health and Human Services. Earlier this month, UMassOnline announced a partnership agreement with two major organizations in China which puts UMassOnline on a path to receive Chinese Ministry of Education approval for a significant number and diversity of accredited online programs in China and serve as the distance learning model for future approvals.

Posted by globebusiness at 8:31 AM | Comments (0)

3Com names new top executive

Edgar Masri was removed as chief executive of data network equipment maker 3Com Inc. on Tuesday and immediately replaced by Robert Mao, a fluent Mandarin speaker who will be based in China, which the Massachusetts-based company sees as its biggest market.

The management shuffle -- which comes a month after a proposed $2.2 billion buyout of 3Com was scuttled because of concern over a Chinese company's role -- also brings in Ronald Sege to the new position of chief operating officer and as president of the company, effective Wednesday.

Eric Benhamou will remain chairman of 3Com's board, company spokesman Kevin Flanagan said.

Mao, 64, who became 3Com's executive vice president for corporate development in August 2006, left seven months later, though he retained a spot on 3Com's board.

"It was a decision by the board of directors to make a change in the senior executive area, and essentially they decided to replace Edgar Masri with Bob Mao as our CEO, with Ronald Sege as our president and COO," Flanagan said.

Mao, who has worked in China for Nortel Networks, will oversee 4,000 employees in China, a growing market for 3Com's switches, routers and other gear to help data networks run efficiently.

"We've got the majority of our employees in China, and a very large piece of our revenue," Flanagan said.

Sege, 51, most recently president and CEO of Tropos Networks Inc., a wireless broadband network provider, will focus on 3Com's operations outside China. He'll work from company headquarters in the Boston suburb of Marlborough, home to about 400 of the company's global work force of about 6,000.

The management changes were announced after trading closed, with shares of 3Com up 4 cents at $2.34.

Masri, who was president and CEO from August 2006 until Tuesday, announced a proposal in September for Boston-based private equity firm Bain Capital Partners to lead a buyout of 3Com. He said the deal would help 3Com gain freedom from the whims of the market and improve its chances of expanding in China.

The deal would have given Huawei Technologies, China's largest manufacturer of telecommunication equipment, a minority stake in 3Com -- a prospect that raised the ire of U.S. lawmakers afraid that sensitive military technology would be transferred to China.

3Com's stock rose 34 percent the day the deal was announced but declined after the concerns arose, and Bain and 3Com failed to agree on ways to restructure the deal to address lawmakers' fears.

Bain cited the national security issues in announcing last month that it was giving up on the deal.

3Com's Flanagan said Masri's ouster had "absolutely nothing to do with" the failed buyout.

3Com, facing competition from Cisco Systems Inc. and others, is a shadow of the high-flyer it became during the tech boom. In 2000, its shares briefly rose above $100.

Co-founder Robert Metcalfe helped invent ethernet in the 1970s to link computers, a business that boosted 3Com throughout the 1980s and 1990s, when it made a series of acquisitions. Among them was the 1997 purchase of dial-up modem maker U.S. Robotics, which also included Palm Inc., the personal digital assistant maker.

From 1995 to 2001, San Francisco's football stadium was renamed 3Com Park.

3Com spun off U.S. Robotics in 2000, and 3Com's core networking business fell off after the dot.com bubble burst in 2001. The company left its Silicon Valley headquarters in Santa Clara, Calif. for Marlborough in 2003, and its stock has languished around the $5 mark in recent years.
(AP)

Posted by globebusiness at 7:55 AM | Comments (0)

April 29, 2008

Mayor backs $4m plan to keep JPMorgan in Boston

Boston officials today unveiled a $4 million tax-incentive package to convince JPMorgan Chase & Co. to remain in Boston.

The financial firm employs 725 people in the city (525 at 73 Tremont St. and 200 at One Beacon) and is considering adding up to 400 more who would provide services to the mutual funds industry. But its lease at 73 Tremont with Suffolk University is due to end next year.

Boston Mayor Thomas M. Menino said the incentives -- certain city property tax benefits, plus state tax and financing benefits -- are designed to convince JPMorgan to move workers into vacant space on the South Boston Waterfront he did not identify.

‘‘Financial services companies represent a $24 billion industry in Boston, and I’ve made it a priority that we focus on ways to strengthen and grow this sector of our economy,’’ he said.

Dan Kramer, JPMorgan’s managing director for fund services operations, said the firm is in negotiations about the site and several others in the suburbs. If the Boston incentives are approved by the City Council, they would be ‘‘a key determinant in our decision as we negotiate the terms of the lease,’’ Kramer said.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 3:58 PM | Comments (0)

Wyeth cutting 1,200 jobs, including some in Mass.

Pharmaceuticals giant Wyeth, which has operations in Andover and Cambridge, said it plans to eliminate 1,200 jobs, or 2 percent of its worldwide workforce. That is in addition to 1,200 sales jobs the company eliminated last month.

Company spokesman Doug Petkus said the latest job reductions will “affect all facilities worldwide” and “cut across a variety of job types.” Petkus declined to say how many workers would be affected in Massachusetts, but the company started to notify employees last Friday.

Petkus said the company is making the cuts to reduce expenses in response to declining revenue from its bestselling heartburn drug Protonix, which now faces competition from generic versions.

Wyeth has about 2,700 employees in Massachusetts, making it one of the state’s largest employers in the life sciences industries.

The job cuts were first reported yesterday on the Pharmalot blog.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 2:27 PM | Comments (0)

Loss widens at Idenix

Biopharmaceutical company Idenix Pharmaceuticals Inc. said today that its first-quarter loss widened because of a decrease in reimbursements for research and development costs and a lack of milestone payments received in the quarter.

Shares of Cambridge, Mass.-based Idenix fell 58 cents, or 8 percent, to $6.67 in afternoon trading.

The company's loss ballooned to $20.5 million, or 36 cents per share, from a loss $11.6 million, or 21 cents per share, a year ago. Revenue fell 91.8 percent to $2 million from $24.8 million last year.

Analysts surveyed by Thomson Financial expected a loss of 25 cents per share, with revenue of $7.7 million.

Idenix said that revenue was hurt by a $12 million decrease in a research and development reimbursement from Swiss pharmaceutical company Novartis, which has worldwide commercialization rights to the two companies' hepatitis B treatment Tyzeka. In addition, the company did not record any milestone payments in the quarter. (AP)

Posted by globebusiness at 1:10 PM | Comments (0)

Mass. man wins Samuel Adams homebrew contest

A pale ale brewed by a Massachusetts man has won the 2008 Patriot Homebrew Contest hosted by The Boston Beer Company, brewers of Samuel Adams beers.

Adam Walsh's India pale ale triumphed over nearly 200 other brews to win the competition. In addition to awarding Walsh a $2000 prize, Samuel Adams will brew Walsh's Patriot Homebrew IPA at its Boston Brewery to be served at the Samuel Adams Brewhouse in Gillette Stadium during the entire 2008-2009 football season.

Posted by globebusiness at 12:20 PM | Comments (0)

New England unemployment rate unchanged

The unemployment rate in New England, at 4.8 percent in March 2008, was essentially unchanged over the month, according to a report issued by the Bureau of Labor Statistics of the U.S. Department of Labor.

Though little changed since February, the New England unemployment rate has risen 0.4 percentage point over the last three months. The U.S. jobless rate in March, at 5.1 percent, was up 0.3 percentage point since February. Since March 2007, the jobless rates for New England and the nation have increased, up 0.4 and 0.7 percentage point, respectively.

In March, two New England states posted jobless rates significantly different from that of the U.S. The jobless rate in New Hampshire, at 3.9 percent, was measurably lower than nationwide average. By contrast, the unemployment rate in Rhode Island, at 6.1 percent, was measurably higher than the U.S. average. Rhode Island was one of only five states, along with the District of Columbia, to have an unemployment rate higher than the nationwide average.

Among the remaining New England states, jobless rates ranges from 4.4 percent in Massachusetts to 5.3 percent in Connecticut, but statistically, none of these rates differed significantly from the national rate

Posted by globebusiness at 11:25 AM | Comments (0)

Biogen's Rituxan fails in lupus trial

Biotechnology companies Biogen Idec Inc., based in Cambridge, and Genentech Inc. said today their drug Rituxan failed a late-stage study involving lupus patients.

The drug, which is already approved to treat non-Hodgkins lymphoma and rheumatoid arthritis, failed to prompt a response in patients when compared with placebo in the 52-week study.

The drug also failed to meet any of its six secondary goals.

"We understood from the outset the significant challenges in developing treatments for systemic lupus erythematosus," said Dr. Hal Barron, Genentech's senior vice president of development and chief medical officer, in a statement.

The company has another ongoing late-stage study on lupus nephritis patients and said that will continue. Lupus nephritis is an inflammation of the kidney caused by lupus, a chronic inflammatory disease. Results from that study are expected in the first quarter of 2009.

Shares of Biogen Idec fell $2.75, or 4.3 percent, to $61.92 in morning trading Tuesday.

Shares of Genentech, based in South San Francisco, fell $3.25, or 4.4 percent, to $69.91.
(AP)

Posted by globebusiness at 11:16 AM | Comments (0)

Cynosure profit more than doubles

Cosmetic treatment equipment maker Cynosure Inc. said today that its first-quarter profit more than doubled on strong demand for its aesthetic laser products.

The company earned $4.9 million, or 38 cents per share, compared with profit of $2.1 million, or 17 cents per share, in the year-ago period. Revenue rose 41 percent to $36.8 million from $26.1 million.

Analysts polled by Thomson Financial, on average, expected profit of 38 cents per share on revenue of $34.6 million.

Laser product revenue increased 43 percent in the quarter, led by sales of the company's Smartlipo laser lipolysis workstation and Affirm anti-aging platform.

Shares rose 95 cents, or 3.9 percent, to $25.17 in morning trading. (AP)

Posted by globebusiness at 10:57 AM | Comments (0)

April 28, 2008

Rezendes wins Knight fellowship

Michael Rezendes, a veteran investigative reporter for the Boston Globe, was among 12 journalists today who were awarded John S. Knight fellowships for a year of independent study at Stanford University beginning this fall.

Rezendes, a member of the Globe's Spotlight Team who shared a Pulitzer Prize in 2003 for the newspaper's coverage of the clergy sexual abuse crisis, will study the threat of secrecy in a democratic society during the 2008-2009 academic year.

Also named to the Stanford fellowships yesterday were Christopher Allbritton, a freelance journalist; Stephanie Banchero, an education reporter with the Chicago Tribune; Diane Cardwell, city hall bureau chief for the New York Times, Babak Dehghanpisheh, Baghdad bureau chief for Newsweek, Jeff Elder, a columnist with the Charlotte Observer, Andrew Haeg, a senior producer and analyst for American Public Media; Lee Hockstader, an editorial board member of the Washington Post; Burt Herman, Korea bureau chief for the Associated Press; Antonio Ruiz-Camacho, managing editor for Rumbo newspapers in Houston; Geri Smith, Mexico City bureau chief for BusinessWeek, and Janine Zacharia, a diplomatic correspondent with Bloomberg News.

The fellows will join nine from other countries who were announced in March. Financial support for the US fellows comes chiefly from an endowment by the John S. and James L. Knight Foundation.

Posted by globebusiness at 6:08 PM | Comments (0)

Summit Partners raises a $1.56b fund

Summit Partners, a Boston venture capital and private equity firm, has raised a $1.56 billion European buyout fund.

Summit said the private equity fund will be its first dedicated exclusively to investing in mid-size and growth companies across the Atlantic.

Summit, which has offices in London, and Palo Alto, Calif., has also raised an $825 million subordinated debt fund, its fourth, boosting the amount of capital it can invest in deals.

Combined with Summit’s existing funds, the two new funds bring the firm’s total capital available for investment to nearly $6 billion.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 4:51 PM | Comments (0)

Medical lab to pay nearly $689,000 in overtime case

The medical laboratory operator Quest Diagnostics Inc. has agreed to pay nearly $689,000 in back wages for alleged violations of federal labor law.

The US Department of Labor today said that Quest failed to fully pay 238 employees nationwide who were misclassified as being exempt from overtime requirements.

The agency says an investigation at Quest’s Cambridge lab revealed that client systems analysts nationwide did not receive overtime pay they deserved.

A phone call seeking comment from Madison, N.J.-based Quest was not immediately returned.

The company collects blood, urine, and tissue samples from medical centers to diagnose medical conditions.
(AP)

Posted by globebusiness at 2:10 PM | Comments (0)

Sycamore says earnings will be down

Sycamore Networks Inc. said Monday its third-quarter revenue is expected to fall short of Wall Street expectations due to lower-than-planned orders by a major customer, according to preliminary financial results.

Shares of the Chelmsford company plunged 59 cents, or 15.8 percent, to $3.15 in premarket trading, having closed Friday at $3.74. The stock has traded between $3.21 and $4.35 during the past 52 weeks.

For the quarter ended April 26, Sycamore expects revenue to drop roughly 52 percent to about $21 million, from $43.5 million in the prior year. Analysts surveyed by Thomson Financial forecast quarterly revenue of $45.7 million.

The telecommunications equipment maker said lower-than-expected orders from a key customer was the biggest factor hurting third-quarter revenue results. The unexpected shortfall is expected to affect the company's 2008 objective to match or exceed 2007 revenue.

"We are disappointed with our third-quarter revenue level, which reflects the challenges and unpredictability associated with a highly concentrated customer base," said Daniel E. Smith, the company's chief executive.

Sycamore expects to report final third-quarter results at the end of May.
(AP)

Posted by globebusiness at 1:24 PM | Comments (0)

Cambridge Bancorp earnings up slightly

Cambridge Bancorp today reported unaudited net income of $2,311,000 for the first quarter of 2008, or 61 cents per share, compared with $2,243,000, or 58 cents per share, for the same quarter in 2007. The quarter-over-quarter earnings increase of $68,000, about 3 percent, was achieved by continued growth in both net interest income and non-interest income, the bank said

Net interest margin was down slightly -- 3.95 percent for the three months ended March 31, 2008, compared with 4.04 percent for the first quarter of 2007. Most of the banks deposit growth over the past years came from relatively more expensive savings and time deposits.

Joseph V. Roller II, president and chief executive, said, "In 2008, we continue to build on the successes achieved in 2007."

Cambridge Bancorp's total commercial mortgages increased by $13.1 million or about 10 percent. Total loans outstanding grew by $10.1 million to $429 million at quarter end, representing a 2.4 percent increase over year-end in 2007.

Posted by globebusiness at 12:30 PM | Comments (0)

Mass. gas prices up 16 cents in a week

Another week, another gas record in Massachusetts.

A statewide survey on Monday by AAA Southern New England found an average price of $3.54 per gallon for self-serve, regular unleaded.

That's 16 cents more than a week ago, and 35 cents more than two weeks ago.

Until the recent spike in prices, the state's record stood at $3.23 per gallon, set in the aftermath of Hurricane Katrina in 2005.

A year ago, gas was averaging $2.86 per gallon.

If there's a silver lining in the latest numbers, it's this: Massachusetts' current average is 6 cents below the national figure of $3.60.
(AP)

Posted by globebusiness at 12:11 PM | Comments (0)

Local home prices slide in March

Prices for Massachusetts single-family homes plunged nearly 11 percent last month, the biggest slide since the depths of the real estate downturn in the early 1990s.

The Warren Group, in its monthly report released today, said that the number of sales dropped 32 percent in March, to 2,637 homes, as the median sales price for a single-family home declined 10.6 percent to $304,000 from $340,000 in March 2007.

"The Bay State's housing market is looking a lot like it did at the end of 1990," said Timothy Warren Jr., chief executive of the Warren Group, a Boston real estate research and publishing firm.

The last time house prices fell this much in Massachusetts was an 11 percent slide in December 1990, he said.

"It might be awhile before we pull out of the current housing slump," he added.

Condominium sales statewide also fell sharply in March, but price declines were relatively small.

There were 1,462 condo sales last month, down from 2,269 in March 2007, a 36 percent decrease.

But the median condo price fell just 1.8 percent, to $270,000, from $275,000 a year ago.

A separate report on the local housing market was also issued today by the Massachusetts Association of Realtors.

While the association uses a different method to track real estate activity than the Warren Group, the reports showed mostly similar trends.

The March median selling price of a detached single family home in Massachusetts was $315,000, a drop of 8.4 percent from March 2007, the association said.

During March, the median selling price of a Massachusetts condo was $263,750, down 5.3 percent from a year ago, the realtors association said.

On a volume basis, 2,339 detached single-family homes were sold in Massachusetts during March, down 32.3 percent from a year ago, and 1,093 condos were sold statewide during March 2008, down 38 percent from March 2007, the realtors association said.

Adding to the housing slump, growing numbers of the state's homeowners are losing their homes in foreclosures by mortgage companies, including 1,167 in March alone.

"Foreclosures are still running rampant and causing a glut of homes to hit the market," Warren said.

In a statement, Massachusetts Association of Realtors president Susan M. Renfrew saw some reason for optimism in the future; with mortgage giants such as Freddie Mac relaxing loan limits for prospective home buyers, she said, "the opportunity for improvement does exist in the coming months."

For recent Globe coverage of the local housing market, click here.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 7:00 AM | Comments (0)

April 25, 2008

TJX chief's pay package valued at $6 million

TJX Cos. chief executive Carol Meyrowitz received compensation valued at nearly $6 million in 2007, her first year in the top job as the off-price retailer's stock price held steady despite fallout from a massive data breach and a tough retail environment.

Meyrowitz received a base minimum salary of $1.4 million after being groomed to replace former interim chief executive and current chairman Bernard Cammarata at the start of TJX's last fiscal year on Jan. 28, 2007.

Meyrowitz, who added the chief executive title to the president's role she's held since 2005, also received $2.3 million in compensation under a non-equity incentive plan, according to a Securities and Exchange Commission filing yesterday by the Framingham-based operator of nearly 2,600 stores including T.J. Maxx and Marshalls.

Meyrowitz received stock and option awards the company valued at a total $2.2 million on the days they were granted.

She also was given $55,034 in other compensation, covering such items as an automobile benefit, legal fees reimbursement, and financial planning.

Her total compensation of $5.95 million represented a sharp increase from the $952,194 that Cammarata was awarded in 2006 as acting chief executive after temporarily taking the top job following the abrupt 2005 resignation of Edmond English.

Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation, and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

Meyrowitz, 54, took the top job at TJX in a tumultuous year that started with TJX's Jan. 17, 2007 disclosure of a data breach believed to be the largest in U.S. history, based on the number of customer records involved.

TJX said at least 45.7 million credit and debit cards were exposed to possible fraud in a computer systems breach that began in July 2005, but wasn't detected until December 2006.

Court filings by banks that sued TJX put the number of affected cards at more than 100 million, based on estimates by credit card officials deposed in one of several lawsuits TJX faced.

Some of the litigation as well as government investigations have been settled. TJX also responded to the breach by spending millions of dollars to upgrade data security.

TJX's stock dipped as low as $26.10 on the New York Stock Exchange after the breach was disclosed, but closed out 2007 at $28.65, largely unchanged from its $28.90 price at the year's start.

Despite negative publicity from the breach, consumers didn't appear to punish TJX, as sales at stores open at least a year rose 4 percent last year.

While an economic downturn has hurt consumer spending, TJX and other lower-price and discount chains have generally fared well as shoppers increasingly seek bargain prices. TJX's 2007 profit margin was the strongest in six years, excluding data breach costs.

In addition to T.J. Maxx and Marshalls, the 129,000-employee company's stores include HomeGoods, A.J. Wright, Bob's, Winners, HomeSense, and T.K. Maxx. (AP)

Posted by globebusiness at 2:23 PM | Comments (0)

Avid shares sink on disappointing results

Shares of Avid Technology Inc. of Tewksbury sunk today, a day after the multimedia software developer fell to a loss in the first-quarter and widely missed Wall Street expectations, and two analysts urged investors to unload their shares.

After the bell yesterday, the company reported a loss of $21.1 million, or 54 cents per share, compared with a profit of $20,000 a year ago. Excluding one-time items, Avid said it lost 30 cents per share in the quarter.

Analysts polled by Thomson Financial expected, on average, a per-share profit of 6 cents.

Revenue decreased 9 percent to $198.3 million from $218.9 million, in the year-ago period, and fell short of Wall Street's target of $216.3 million in sales.

In a note to investors, titled "When Directionless, Time is Not a Friend," Kaufman Bros. analyst Barbara Coffey backed her "Sell" rating and $15 target price on the company. That price target projects the stock will decline 39 percent over the next year.

The analyst pointed out that its revenue decreased in all its business segments except its consumer video division, which saw revenue growth of 13 percent.

In their conference call, management said it is conducting a strategic review, and would announce details of the company's new direction and plans in July. Coffey, however, remained skeptical, saying that while Avid reviews its offerings, sales are falling. Meanwhile, Avid has been cutting prices, and the analyst has doubts that its reduced pricing and new products will be able boost sales in an increasingly competitive market.

Likewise, D.A. Davidson analyst L. Alan Davis called Avid's results disappointing and downgraded the stock to "Underperform" from "Neutral," and cut his price target to $20 from $25. The analyst said while he expects sequential improvement throughout the year, the business environment -- particularly for its professional video segment -- appears weaker than he had anticipated.

Avid shares dropped $3.34, or 13.6 percent, to $21.30 in midday trading on the Nasdaq stock market. The stock has lost 36 percent since hitting its 12-month high of $38.78 on April 26, and is off 13 percent since the start of the year. (AP)

Posted by globebusiness at 12:36 PM | Comments (0)

Hub firm honored for sustainable design

Architerra Inc., a Boston architecture firm specializing in green buildings, said it has been honored by the American Institute of Architects for its design of a school project in Weston.

The project is the Garthwaite Center for Science & Art (shown above) at the Cambridge School of Weston, and the center made the institute's list of top 10 green projects for 2008, Architerra said.

The project team's environmental goals included preserving as many trees as possible on the school's wooded campus, said the firm, which added that the contours of the building's layout were designed to mimic the hillside that the building's floor levels sit on.

A partial green roof manages storm water and lowers heating and cooling loads, and the building is oriented to the south to take advantage of daylight and passive solar heating opportunities, the firm said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:49 AM | Comments (0)

EMC begins tender offer for Iomega shares

Data storage systems maker EMC Corp. said today that it will begin a tender offer to acquire all outstanding shares of Iomega Corp., a San Diego-based storage company best known for the Zip drive.

EMC of Hopkinton is offering $3.85 per share in cash to Iomega shareholders. Shares of Iomega closed at $3.82 yesterday.

The tender offer will end at midnight on May 21.

In April, EMC agreed to acquire Iomega for $213 million in a move to expand its offerings targeting small businesses and consumers. The price represented a 20 percent increase over EMC's initial bid of $178 million, or $3.25 per share.

The companies received antitrust approval for the deal on Tuesday. (AP)

Posted by globebusiness at 10:19 AM | Comments (0)

An artisanal butter from Maine rates raves and kudos

Forget extra virgin olive oils and your exotic buffalo-milk ghees. As the culinary cognoscenti know, artisanal butter may be on the comeback trail - and esteemed by even the fussiest of epicures and gourmets.

The latest evidence? In Old Orchard Beach, Maine, the folks who make Kate's Homemade Butter with Sea Salt happily note that their artisanal product was just named the top pick in New York Magazine's list of best butters.

As an arbiter of taste, New York Magazine wrote: "After having been knocked to the back of the dairy case in the sixties, and buried under a fashionable flood of olive oil in the decades since, butter is back in a big way."

For the record - or at least according to Kate's publicist - Kate's sweet cream butter is made fresh daily in small slow-churned batches using pasteurized cream from cows gloriously ignorant of artificial growth hormones.

No preservatives or additives taint the butter's pristine pedigree, and Kate's founder and president Daniel Patry can trace a butter-churning lineage back four generations.

In a statement, Patry said, "We've all learned that making butter in the same authentic, healthy way that our grandparents and great grandparents did makes all the difference in the world."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:43 AM | Comments (0)

First-quarter loss shrinks for AMAG Pharmaceuticals

Cambridge biotechnology company AMAG Pharmaceuticals Inc. said today that its first-quarter loss narrowed, beating Wall Street's expectations.

The company reported a loss of $9.3 million, or 55 cents per share, compared with a loss of $10.2 million in the year-ago period.

Analysts polled by Thomson Financial, on average, estimated a loss of 62 cents per share on sales of $590,000.

Revenue fell 33 percent to $612,000 from $913,000 in the first quarter of 2007.

Results were boosted by $3.3 million in interest income. The 2007 quarter included a $4 million litigation settlement charge.

Total costs and expenses rose 46 percent to $13.3 million in the quarter, due to increased selling, general and administrative costs related to the pending US launch of ferumoxytol in the first quarter of 2009.

A new drug application for ferumoxytol is currently under review with the Food and Drug Administration for the treatment of iron deficiency anemia in chronic kidney disease patients. (AP)

Posted by globebusiness at 8:38 AM | Comments (0)

Shaw's deal aims to stretch shoppers' tax rebates

Shaw's Supermarkets Inc. plans to offer bonuses to customers who bring their economic stimulus, or tax rebate, checks to one of the West Bridgewater chain's 201 New England stores.

Customers can redeem their checks for Shaw's gift cards in $300 increments, and Shaw's will add an extra $30 to each card, the chain said. Customers who have their rebates deposited electronically can also participate in the program.

With the US economy slowing down, a recent Globe story noted that many retailers are scrambling to offer discounts and deals as a way to tap into some of the estimated $105.7 billion that the federal government is distributing to tax payers in the form of economic stimulus payments, or tax rebates.

The tax rebate, part of federal efforts to boost the economy, will put $600 in the pockets of most individual tax filers, $1,200 for many couples who file jointly, and an extra $300 per child for families.

According to Shaw's, recent data show that nearly 10 percent of disposable personal income is spent on food, and food prices are predicted to increase 3.5 percent to 4.5 percent this year as commodity and energy prices continue to rise.

For that reason, Shaw's says its new program will come in handy for many shoppers.

Here's how the program works: Customers should bring their government-issued economic stimulus or tax refund checks, along with government-issued identification, to customer service counters at their local Shaw's stores between May 2 and July 31 to purchase store gift cards in $300 increments, Shaw's said.

Each $300 gift card will be loaded with an additional $30, to bring each gift card total to $330, and customers will be able to purchase less than the total amount of their check in $300 increments, Shaw's said.

Customers who do not have a hard copy of their government-issued checks may still take advantage of this offer with cash, a credit or a debit card, by showing proof that their economic stimulus or tax refund check was deposited in their bank account, Shaw's said.

The program is limited to one offer per household with a limit of $1,200, Shaw's added.

About a dozen stores in the Shaw's chain use the Star Market name; the offer is good at both Shaw's and Star Market stores, a Shaw's spokeswoman said.

Since 2006, Shaw's has been owned by Supervalu Inc., a Minnesota company that operates nearly 2,500 grocery stores; Supervalu is offering the tax rebate program at all its US stores, including Shaw's and Star Market.

To see Supervalu's press release on the offer, which also applies to Shaw's, click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:02 AM | Comments (0)

April 24, 2008

Hearing will look at state's underground economy

US Senator John F. Kerry has scheduled a public field hearing in Chelsea Monday that will focus on the state's underground economy, the office of the Massachusetts Democrat said.

The hearing will examine the impact of employers who fail to abide by lawful hiring practices, said Kerry's office, which noted that Massachusetts loses $152 million in annual tax revenues due to the underground economy.

One topic for discussion is how the playing field can be leveled for businesses and workers abiding by the rules, Kerry's office said.

Kerry is the chairman of the Committee on Small Business and Entrepreneurship.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:52 PM | Comments (0)

Tufts medical school dean joins drug maker's board

The dean of Tufts University’s medical school, Dr. Michael Rosenblatt (left), has joined British drug maker Shire PLC’s board of directors, the company said today.

Rosenblatt was previously director of the Harvard-MIT division of health sciences and technology and an executive with Merck Sharp & Dohme Research Laboratories, where he led drug-discovery efforts. (AP)

Posted by globebusiness at 2:37 PM | Comments (0)

No summer power shortage seen in New England

The organization that oversees New England's power grid says electricity supplies appear to be adequate to meet spiking demand this summer.

An annual update from Holyoke-based ISO New England Inc. says grid operators should have enough flexibility to handle sharply higher electricity use, even in a prolonged heat wave.

This summer, the region is expected to have nearly double the amount of so-called "demand resources" than it had last summer. Demand resources include large industrial customers that agree to cut electricity use during peak demand.

The organization forecasts this summer's peak New England demand could reach 28,000 megawatts under 90-degree temperatures. The region's all time peak power use was set Aug. 2, 2006, at 28,130 megawatts. One megawatt serves as many as 1,000 homes. (AP)

Posted by globebusiness at 1:41 PM | Comments (0)

"Do You Speak Dragon?" contest kicks off

Are you fluent in Dragon? Then, Nuance Communications Inc. urges you to enter its second annual "I speak Dragon!" competition, which begins today.

The Burlington company is a provider of speech and imaging solutions, and it claims its speech recognition product, Dragon NaturallySpeaking, can turn speech into text at up to 160 words per minute.

Last year, Nuance launched the first competition, which asked entrants to explain how Dragon NaturallySpeaking improved their lives.

One 2007 winner was a fly-fisherman; in the olden days, he painstakingly kept a hand-written journal on his favorite fishing holes and recorded data and details on water temperatures and lures used in successfully landing whoppers, but thanks to Dragon NaturallySpeaking, a labor of love has evolved into effortless dictation, Nuance claims.

In any case, the deadline for this year's competition, which has similar rules, ends June 30.

There will be three winners, and the winning entrants will each receive a Garmin Nuvi 360 Personal Travel Assistant (left) as well as Dragon NaturallySpeaking upgrades for three years, Nuance said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:24 PM | Comments (0)

Group gets foreclosure extension on Wharton estate

The organization that owns the Mount, Edith Wharton's famous Lenox estate (left), has been given more time to raise $3 million to avoid foreclosure.

Sandra Boss, the Mount's chairman, said yesterday that the estate's major creditor has extended the deadline for a second month, until May 31. The group said it has raised $800,000 in its emergency campaign, including $240,000 in the past 30 days.

The group said it has also received other donations, including $25,000 from former Walt Disney chairman and CEO Michael Eisner and his wife, Jane, to get ready for the 2008 season. The Mount, which gets about 30,000 visitors a year, will open to the public for the season May 9.

Wharton (right) designed and built the house in 1902. She finished her breakthrough novel, "The House of Mirth," there, and got the inspiration for "Ethan Frome." (AP)

Posted by globebusiness at 12:10 PM | Comments (0)

New York or bust on BoltBus

Yes, that's right, we snagged seat Numero Uno on the Hub’s inaugural departure for just $1.

The much-ballyhooed BoltBus started its 12 daily trips today between Boston’s South Station and New York’s Penn Station.

And we were on the case to see what the ruckus is all about – that is, besides the stuff you already know, like the promise of at least one seat for a buck and the free WiFi, which we’re using right now to blog.

So what’s it like?

For starters when you arrive, you’d better remember which bus terminal BoltBus leaves from because it isn't listed on the station’s monitors - at least it wasn't this morning.

Competitors Fung Wah, Lucky Star, Peter Pan , and Greyhound were there, though.

A BoltBus spokeswoman said she was hoping station management would correct the omission quickly.

Boarding was amazingly orderly and cool. BoltBus says one of its big selling points is that it guarantees that you'll get on the departing bus you bought a ticket for because the company won’t sell oversell seats, unlike its competitors. That means you don’t have to arrive at the station an hour early during popular travel periods and stampede when the bus door swings open.

BoltBus asks passengers to show up at least 15 minutes early and it boards in batches based on when you bought seats, with early birds getting seated first.

That’s how it worked this morning, and it was smooth. Still, some riders on today’s 7:30 a.m. bus showed up 30 minutes early and queued up at Gate 21. Creatures of habit, perhaps.

BoltBus lived up to its hype until the bus pulled away from the curb. Sure, the clean, new motorcoach sported 3.5 inches of extra legroom and departed on time. But BoltBus told us the driver would tickle our funny bones. BoltBus had whittled a pool of more than 1,000 applicants for the 50 driver positions largely by screening for the “Southwest Airlines” sensibility – people who easily laugh, smile, and crack jokes. One key interview question was what would you say to passengers when it’s time for the bus to depart? BoltBus said it hired “the ones who got up and danced a little jig and had fun.”

Our driver was professional and courteous, but fun-loving? I don't think so. And he definitely didn’t Riverdance or add levity to the early morning ride.

Oh, well. That’s what the free WiFi is for.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 11:44 AM | Comments (0)

Interactive Data's profit jumps on sales growth

Interactive Data Corp. of Bedford said today that its first-quarter profit jumped 26 percent as the financial data provider's core services for institutional customers enjoyed increased growth.

Net income for the three months ended March 31 rose to $32.3 million, or 33 cents per share, compared with $25.6 million during the same period a year earlier.

Three analysts surveyed by Thomson Financial predicted the company would earn 31 cents per share.

IDC said revenue increased to $181.7 million from $162.5 million a year earlier.

Revenue at the company's two biggest segments for institutional customers, Pricing and Reference Data, and Real-Time Services, grew 13.8 percent and 17.1 percent respectively.

"Overall our organic quarterly revenue growth of 8.7 percent, combined with prudent management of our business and the positive impact of certain one-time items, contributed to a 26.1 percent increase in both income from operations and net income," president and chief executive Stuart Clark (right) said in a statement.

IDC left its full-year revenue growth outlook of 7 to 9 percent unchanged.

The results appeared to leave investors wanting more. The stock fell $2.62, or 8.5 percent, to $28.38 in morning trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 11:20 AM | Comments (0)

Shire agrees to buy orphan drug candidate

British drug maker Shire plc, which has nearly 700 employees in Massachusetts, said today it has agreed to pay $135 million to acquire global rights to an orphan drug candidate.

Shire said the enzyme replacement therapy it has agreed to buy from the Danish company Zymenex A/S aims to treat Metachromatic Leukodystrophy, or MLD, a neurological disorder that affects an estimated 2,000 patients in developed world markets; the therapy is currently in clinical trials.

The US Orphan Drug Act rewards companies that develop drugs for rare diseases by giving them seven years to sell each new treatment without competition from other manufacturers.

Sylvie Grégoire (left), president of Shire’s Human Genetic Therapies business in Massachusetts, also known as Shire HGT, said in a statement: "This product fits very well with Shire’s ERT portfolio of treatments for Lysosomal Storage Disorders. Shire HGT has been committed to MLD and by acquiring this mid-stage clinical program we hope to bring a MLD treatment to patients two years earlier than anticipated.”

Shire said recently it plans to move its local offices from Cambridge to Lexington as it looks to double its number of employees in Greater Boston.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:39 AM | Comments (0)

Mass. foreclosures spike in March

Almost 1,200 Massachusetts properties were seized by mortgage companies in March, an increase of more than 140 percent from the number of foreclosures in March 2007, according to new data from Warren Group.

Massachusetts foreclosures during the first three months of this year topped 2,800, also about 140 percent greater than the number of foreclosures during the first quarter of 2007.

While the profile of the foreclosure issue has diminished somewhat, the numbers underscore that the problem keeps growing.

There are no signs as yet that any efforts by the mortgage industry or government officials are reducing the numbers of people losing their homes.

Warren Group reported that mortgage companies seized 1,167 Massachusetts properties in March, compared with 486 properties during the same month last year.

Total foreclosures during the first three months of this year:
Month----2008----2007
January----800----350
February----860----350
March----1,167----486
TOTAL----2,827----1,186

The number of foreclosures in March also is the highest since the early 1990s, surpassing the recent high-water mark of 1,018 last August.

An indication the worst is yet to come: The number of petitions to foreclose, an indicator of future foreclosures, climbed by 33 percent to 2,918 in March, compared with 2,189 filed in March 2007.
(By Binyamin Appelbaum, Globe staff)

Posted by globebusiness at 10:06 AM | Comments (0)

Dunkin' expands its java empire in the Southwest

As it pursues the caffeine equivalent of Manifest Destiny, Dunkin' Donuts disclosed today plans by three franchisees to open 150 coffee-and-baked-goods cafes in the Phoenix area.

Phoenix is "now sold out," said the chain, a subsidiary of Dunkin' Brands Inc. of Canton.

Well entrenched in its native Northeast, Dunkin' Donuts is embarked on an aggressive national expansion strategy; two years ago, it said it planned to triple the number of its US stores to 15,000 by 2020.

In today's announcement, the chain noted that the Las Vegas market as well as several markets in Texas are also sold out and added that the Dunkin' Donuts is now poised to have a "strong footprint in the southwestern United States."

In 2006, Dunkin' Brands was purchased for $2.43 billion by a group of private equity firms that included two Boston buyout companies, Bain Capital and Thomas H. Lee Partners.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:06 AM | Comments (0)

Clean Harbors prices stock offering

Clean Harbors Inc. of Norwell, which provides environmental and hazardous waste management services, said today that it priced a public offering of 2.5 million common shares at $63.75 each.

The price represents a slight discount to the stock's closing price of $64.79 yesterday on the Nasdaq Stock Market .

All shares are being offered by the company. Clean Harbors has also granted its underwriters a 30-day option to purchase up to 375,000 additional shares.

Clean Harbors expects to receive proceeds, after underwriting discounts and expenses and assuming the underwriters' over-allotment option is not exercised, of approximately $150.8 million. The company said it will use the funds for potential future acquisitions, to repay debt and for working capital.

Goldman, Sachs & Co. is acting as the sole book-running manager of the offering. Credit Suisse Securities (USA) LLC and Merrill Lynch & Co. are acting as senior co-managers, and RBC Capital Markets, Needham & Co. LLC and Wedbush Morgan Securities Inc. are acting as co-managers.

The company currently has about 22.9 million shares outstanding. (AP)

Posted by globebusiness at 8:27 AM | Comments (0)

Booming defense business lifts Raytheon

Waltham defense contractor Raytheon Co. said today first-quarter profit rose 15 percent, beating Wall Street expectations, on increasing defense contract volume and lower interest and pension expenses.

The world's fifth-largest defense contractor reported net income for the January-through-March period of $398 million. That compares with a profit of $346 million in last year's first quarter.

Excluding a $2 million after-tax loss from a discontinued operation, Raytheon's profit in the latest period was $400 million, or 93 cents per share. That easily surpassed the consensus estimate of analysts polled by Thomson Financial, who predicted 84 cents per share.

Net sales rose 11 percent to $5.35 billion, also beating the consensus estimate of analysts, who expected $5.12 billion.

Raytheon reiterated its full-year financial guidance. (AP)

(The Raytheon image above this story shows the ALE-50, a towed decoy system designed to lure enemy missiles away from an aircraft by providing a much larger radar cross section than the aircraft.)

Posted by globebusiness at 7:39 AM | Comments (0)

Thermo Fisher profit jumps 68 percent

The first-quarter profit at Thermo Fisher Scientific Inc. is up nearly 68 percent, boosted by improved operating performance.

The Waltham-based maker of laboratory supplies and scientific instruments said the latest quarter's profit also swelled compared to a year ago because of acquisition-related charges in last year's first quarter.

Thermo Fisher Scientific today reported net income of $233 million in the January-through-March period. That compares with a profit of $138.9 million a year earlier.

Not counting one-time items, the latest quarter's profit narrowly beat the consensus estimate of analysts surveyed by Thomson Financial.

Thermo Fisher Scientific also slightly raised its profit and revenue expectations for the full year. The company expects a 2008 profit of $3.07 to $3.17, up from previous guidance of $3.05 to $3.15. Revenue is now expected to come in at $10.6 billion to $10.7 billion, up from earlier expectations of $10.5 billion to $10.6 billion.

Thermo Fisher has been in the news of late for one of its secondary businesses. Last week, it said that its hard-plastic Nalgene water bottles made with bisphenol A will be pulled from stores over the next few months because of growing consumer concern over whether the chemical poses a health risk.

Nalge Nunc International, a division of Thermo Fisher, said it will substitute its Nalgene Outdoor line of polycarbonate plastic containers with BPA-free alternatives.

For recent Globe coverage of Thermo Fisher, click here. (AP)

Posted by globebusiness at 7:12 AM | Comments (0)

April 23, 2008

ZS Genetics will compete for genomics prize

ZS Genetics Inc. of North Reading today became the seventh team accepted into the Archon X Prize for Genomics competition.

The competition will pay out $10 million to the first team that successfully sequences 100 human genomes within 10 days for less than $10,000 per genome; the task is considered a stepping stone to a breakthrough in personalized medicine.

"Expanding the field of competitors not only increases the chances of a winner, but increases the support and public awareness towards the quest of rapid and cost-effective whole human genome sequencing," said Marc Hodosh (right), the Brookline-based senior director for the Archon X Prize for Genomics.

ZS Genetics, led by engineer and inventor William Glover, is a five-year-old company developing technology that creates detailed images of individual DNA or RNA molecules using modified transmission electron microscopes and atomic labeling.

Its team for the X Prize competition will consiste of professors, biologists, engineers, and business people.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 3:57 PM | Comments (0)

Logan flights for Southwest unlikely any time soon

The Greater Boston Chamber of Commerce hosted a "special forum" this morning featuring Southwest Airlines Co.'s chief executive Gary Kelly, but the discount carrier's head honcho didn't arrive with special news for Boston's Logan International Airport.

Kelly kicked off his speech by almost apologizing and then preempting the inevitable question.

"I know that we serve the other airports," he told the 110 attendees, alluding to Manchester's Boston Regional Airport, Providence's T.F. Green Airport, and Hartford/Springfield's Bradley International Airport.

As to when the nation's largest low-fare airline will fly out of Logan, that's likely to happen "maybe one of these days," he said.

With the nation on the cusp of a recession and the airline industry battered by surging fuel prices, it's tough to branch out to new markets, he said.

On top of that, Logan's terminal rents and landing fees still make the airport's operating costs higher than Southwest's systemwide average of $5 to $6 per passenger.

Still, Kelly said, "We'll continue to take a very hard look at serving Boston Logan."

The rare public appearance of such a high-ranking Southwest executive in Boston had gotten people's hopes up in recent weeks.

Kelly said he makes an annual pilgrimage here to speak to university students and the financial sector, but even the chief executive of the Massachusetts Port Authority, which runs Logan, could not recall a Southwest official of this stature addressing Boston's broader business community before.

"It may be a prelude to things," said Massport's chief executive Thomas J. Kinton Jr. after shaking Kelly's hand at forum's conclusion.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 2:43 PM | Comments (0)

Inventor wins Lemelson-MIT sustainability award

Martin Fisher has won the $100,000 Lemelson-MIT Award for Sustainability for developing cheap, human-powered irrigation pumps, the Lemelson-MIT Program in Cambridge said today.

The pumps were designed by Fisher and his nonprofit enterprise KickStart to help rural farmers in regions like sub-Saharan Africa.

(At right, Fisher demonstrates one of the pumps.)

Fisher's Super MoneyMaker Pump can pull water from a source as much as 30 feet below where the pump operator is standing, and it can then pressurize the water and spray it to a height of more than 40 feet, the Lemelson-MIT Program noted.

"By learning and understanding African societal needs and cultures first hand, Fisher has harnessed the entrepreneurial drive of many Africans and empowered them with sustainable technological inventions," Joshua Schuler, executive director of the Lemelson-MIT Program, said in a statement.

The Lemelson-MIT Program, which was founded at the Massachusetts Institute of Technology by inventor Jerome H. Lemelson and his wife, Dorothy, in 1994, recognizes outstanding investors and seeks to encourage sustainable solutions to real-world problems.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:58 PM | Comments (0)

Southwest chief: Airlines fare increases are likely

Southwest Airlines Co. chief executive Gary Kelly says rising fuel costs put major pressure on the strapped airline industry to increase fares.

Kelly spoke today at a breakfast hosted by the Greater Boston Chamber of Commerce.

Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year. He said that means costs will either have to go down or fares will rise - though costs already have been reduced industry-wide.

Kelly said the industry can adjust to a drop in flyers by finding innovative ways to offer air travel.

He also indicated Southwest wasn't interested in its own merger, like the Northwest-Delta deal. He said just the thought is daunting, given the complexity and upfront costs. (AP)

Posted by globebusiness at 1:34 PM | Comments (0)

Spirit offers Hub flyers Trinidad option

Spirit Airlines Inc. is starting Boston to Trinidad air service via its Fort Lauderdale hub June 12.

The discounter already offers flights from here to a couple dozen destinations, mostly in Florida and the Caribbean.

To kick things off they (of the we-charge-for-checked-bags-and-just-about-everything-else) are advertising fares as low as 5 cents a seat (That deal ends today and involves flights between Fort Lauderdale and Port of Spain. Spirit is, however, also offering 5-cent-a-mile fares out of Logan, but those also end today and travel for those must take place on Tuesdays or Wednesdays between June 14 and Oct. 31).

Anyway, consider this an FYI. For more on Spirit, click here.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 12:46 PM | Comments (0)

Menino is set to launch a green business program

Boston Mayor Thomas M. Menino is scheduled to unveil today the city's Sustainable Business Leader program as part of a strategy to further Boston's green efforts, his office said.

The initial goal of the program is an effort to recruit 25 small to mid-sized businesses to adopt a range of sustainability strategies that will reduce the businesses' environmental impact, City Hall said.

The program is specifically designed to help the businesses to reduce their energy use, conserve water, and cut their solid waste, Menino's office said.

The program will be funded in part by a $50,000 grant from the Massachusetts Department of Environmental Protection, Menino's office said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:00 PM | Comments (0)

Genzyme profit slips on charge, but tops estimate

Cambridge biotechnology company Genzyme Corp. said today that its first-quarter earnings slipped 8 percent as an investment charge offset strong sales growth, and revised its full-year outlook to reflect delayed approval of its Myozyme drug.

Net income dipped to $145.3 million, or 52 cents per share, from $158.2 million.

Revenue climbed 25 percent to $1.10 billion from $883.2 million a year ago, led by 15 percent growth in sales of Gaucher disease drug Cerezyme to $304.3 million and 23 percent growth in kidney treatments Renagel and Renvela to $168.7 million.

Looking ahead, Genzyme lowered its outlook for 2008 adjusted profit to about $3.90 per share from prior guidance of $4 per share, reflecting the delay in approval by the Food and Drug Administration of Pompe disease treatment Myozyme.

On Monday, Genzyme said it will have to reapply with the FDA for Myozyme approval at a larger manufacturing capacity, delaying a decision by up to six months. The drug is approved in more than 40 nations but not yet in the United States on a wide scale, and Genzyme needs FDA clearance for a 2,000-liter manufacturing process to make it more widely available.

In a statement today, chairman and chief executive Henri A. Termeer (right) commented on earnings.

"We had a very strong first quarter to start the year," he said. "We continue to focus on our commitment to deliver 20-percent non-GAAP earnings growth through 2011 while building the company to ensure that we sustain our growth over the longer term."

For recent Globe coverage of Genzyme, click here. (AP)

Posted by globebusiness at 11:33 AM | Comments (0)

Parametric reports profit rise on license sales

Product design company Parametric Technology Corp. said today that its second-quarter profit rose on strong European license revenue and the weak dollar.

Profit for the Needham company, which refers to itself as PTC, rose 8 percent to $18.8 million from $17.4 million in the 2007 second quarter.

Sales rose 13 percent to $257.8 million from $228.1 million.

Chief executive C. Richard Harrison (left) said in a statement the CoCreate Software business, which PTC acquired in November, helped overcome weak North America license revenue. PTC also had strong global maintenance growth, license revenue growth in Europe and currency benefits from the weak dollar.

Its shares rose $1.32 or 9.2 percent to $16.09 in morning trading on the Nasdaq Stock Market. They have traded in the last year between $13.68 and $21.81. (AP)

Posted by globebusiness at 10:30 AM | Comments (0)

Liberty Mutual agrees to buy Safeco for $6.12 billion

Liberty Mutual will buy Safeco Corp. for $6.12 billion in a deal to create the country's fifth-biggest property insurer.

Liberty Mutual, a privately owned insurer based in Boston, has offered $68.25 per share for Safeco, a 51 percent premium to yesterday's close.

Safeco, based in Seattle, sells $5.9 billion in insurance policies a year, while Liberty books annual premiums of more than $20 billion.

Both boards have approved the deal, and the sale is expected to close by the end of the third quarter pending shareholder and regulatory approval.

"The addition of Safeco significantly expands and strengthens the Liberty Mutual Group," said Edmund F. Kelly, Liberty Mutual's chairman, president, and chief executive (left). "Safeco's operations and product mix complement our existing Agency Markets operations. Additionally, both organizations have superb surety businesses which when combined will form the second-largest surety business in the United States."

Safeco president and chief executive Paula Reynolds said, "This is the opportunity to take West Coast inventiveness and launch it with a global brand at a substantial premium to Safeco shareholders."

Liberty Mutual, a 96-year-old firm with 41,000 employees, posted a profit of $1.5 billion last year on $25.9 billion in revenue. (AP)

Posted by globebusiness at 9:30 AM | Comments (0)

AMG reports first quarter results

Affiliated Managers Group Inc. said today that net income for its first quarter was $32.8 million, a 10-percent drop from a year ago.

The Beverly asset management company, which goes by the initials AMG and which has equity investments in a diverse group of boutique investment management firms, said revenues for the quarter rose 8 percent to $335 million.

Cash earnings per share, which the company identifies as a key metric, were $1.46 in the quarter, compared with $1.43 a year ago, AMG said.

"AMG generated solid earnings for the first quarter against the backdrop of a challenging market environment," Sean M. Healey (right), president and chief executive, said in a statement.

Healey also noted that AMG continued to make progress in expanding its global distribution capabilities.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:15 AM | Comments (0)

EMC profit falls 14 percent, revenue rises 17 percent

Data storage vendor EMC Corp. said today that its first-quarter profit dipped 14 percent on acquisition-related charges. But it posted a double-digit revenue gain that beat Wall Street forecasts.

Hopkinton-based EMC said that net income fell to $268.8 million, or 13 cents per share. in the three months ended March 31. That's down from $312.6 million, or 15 cents per share, in the same period a year ago.

The latest quarter's performance was hurt by a $79 million charge from acquisitions. Without that item and other one-time charges, EMC's profit was $477.3 million, or 23 cents per share.

Revenue rose 17 percent to $3.47 billion, beating the $3.45 billion consensus estimate of analysts surveyed by Thomson Financial.

In a statement, EMC chairman, president, and chief executive Joe Tucci (left) said, "EMC is off to a solid start this year, and we remain on track to achieve the 2008 financial targets we set for the business at the beginning of the year."

For recent Globe coverage of EMC, click here. (AP)

Posted by globebusiness at 8:22 AM | Comments (0)

Biogen Idec profit jumps 24 percent

Biotechnology company Biogen Idec Inc. said its first-quarter profit rose 24 percent, boosted by sales of its multiple sclerosis drug.

The Cambridge company said it earned $163.1 million of $942.2 million. That compares with a profit of $131.5 million on revenue of $715.9 million in the first quarter of last year.

Biogen Idec said that sales of Avonex, one of its multiple sclerosis drugs, rose 19 percent in the quarter to $536 million.

Sales for Tysabri, another drug used to treat multiple sclerosis, more than tripled in the quarter, chief executive James Mullen (right) added in a statement.

Biogen Idec shares the rights to Tysabri with Elan Corp. of Ireland.

For recent Globe stories about Biogen Idec, click here. (AP)

Posted by globebusiness at 7:55 AM | Comments (0)

Zoll Medical reports earnings gain

Zoll Medical Corp., a manufacturer of resuscitation devices such as defibrillators and portable infusion pumps, said today that second quarter net income rose 78 percent to $5.7 million.

The Chelmsford company cited strong growth in all major parts of its business and added that it now expects to "modestly outperform" its fiscal year 2008 plan.

On a diluted earnings per share basis, net income was 27 cents, up from 15 cents a year ago, the company said.

Second-quarter revenues were $99 million, an increase of 40 percent from a year ago, Zoll Medical said.

In a statement, company president and chief executive Richard A. Packer discussed current expectations for 2008.

"We hope to achieve earnings per share of $1.10 for fiscal 2008, a 10 percent increase from our original guidance of $1.00 established at the beginning of the fiscal year," Packer said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:34 AM | Comments (0)

April 22, 2008

British drug maker to buy Sirtris for $720 million

GlaxoSmithKline PLC today agreed to buy Sirtris Pharmaceuticals Inc., of Cambridge, for $720 million to bolster the British pharmaceutical maker’s pipeline with Sirtris’ experimental treatments targeting aging-related diseases.

Glaxo said after the markets closed that it would pay cash to acquire all the shares of Sirtris, a 3-year-old firm that relied on venture capital funding before making its initial public offering last May.
The $720 million, $22.50 per-share price represents an 84 percent premium over Tuesday’s $12.23 closing price for Sirtris stock.

Sirtris’ research focuses on a recently discovered class of enzymes known as sirtuins that are believed to be linked to aging and appear to restrict calorie intake without a change in eating habits. For example, Sirtris is testing a modified version of a red wine extract called resveratrol in people with Type 2 diabetes.

Sirtris emerged from research on sirtuins by a Harvard Medical School scientist, Dr. David Sinclair, a company cofounder.

Sinclair led a 2006 study by Harvard and the National Institute of Aging that found heavy doses of resveratrol enabled obese mice to enjoy the benefits of being thin and live healthier, longer lives.

Although the implications for humans were unclear, the resveratrol doses appeared to lower the rate of diabetes, liver problems, and other fat-related ill effects in mice fed a high-fat diet.

This month, the Food and Drug Administration granted orphan-drug status to resveratrol, for the treatment of a fatal and progressive disorder called MELAS syndrome. The orphan-drug designation provides Sirtris with seven years of marketing exclusivity upon FDA approval of the drug.
(AP)

Posted by globebusiness at 7:01 PM | Comments (0)

Hannaford toughens computer security after breach

The supermarket chain Hannaford Bros. Co. has spent millions of dollars on additional security measures since last month’s revelation that hackers may have accessed up to 4.2 million credit and debit card numbers, it said today.

The grocer, based in Scarborough, Maine, has stores in Massachusetts and several other states. It has started encrypting card numbers from the moment they are swiped at checkout counters. And it has tapped IBM to monitor security for its computer network around the clock.

But Hannaford’s top security executive said some other retailers are probably still vulnerable to similar attacks. ‘‘The latest threat wasn’t anticipated,’’ said chief information officer Bill Homa. ‘‘The bad guys are one step ahead.’’

Hannaford told Massachusetts authorities it found unauthorized computer programs, called malware, on servers in more than 270 stores. When customers swiped their credit cards, the malware intercepted the data as it was transmitted from cash register to credit card processors.

The malware stored the data — card numbers and expiration dates — on store computers and later sent the information to offshore computers, where it could presumably be picked up by the thieves.

Hannaford has said the intrusion potentially compromised cards used between Dec. 7 and March 10, sparking at least 1,800 reports of fraud.

Homa said the company complied with all the latest credit-card industry security standards. But, he said, the standards were written mainly to secure data stored on retailers’ internal computers and didn’t anticipate that hackers might be able to intercept credit-card numbers as they were transmitted to card processors for authorization.

‘‘It’s an ever-escalating issue,’’ said David Hogan, chief information officer for the National Retail Federation, a trade association. ‘‘It’s like building a wall around your credit card data. Your professional hacker just builds a taller ladder.’’
(By Todd Wallack, Globe staff)

Posted by globebusiness at 5:39 PM | Comments (0)

State bills nearly 500 people twice for taxes

Nearly 500 Massachusetts state taxpayers got a nasty surprise this week: Their taxes were taken out of their bank accounts twice.

The state Department of Revenue confirmed today what 473 taxpayers already knew: Their bank accounts had been hit twice for this year’s tax bill. That rang up to $8.2 million in overcharges by the state, said Bob Bliss, the department’s spokesman.

The error affected people who filed for tax extensions on the April 15 deadline and set up electronic payments to be made from their bank accounts.

Late today, the state was working to reverse the mistake and said it was putting up an informational notice on the Department of Revenue website.

‘‘It’s not excusable, and we are in the process of both apologizing and correcting the error,’’ Bliss said.
(By Beth Healy, Globe staff)

Posted by globebusiness at 5:14 PM | Comments (0)

One Laptop Per Child loses another executive

A key person behind the ‘‘$100 laptop’’ for schoolchildren has left the project as the organization overhauls its operations and prepares to tweak its open-source approach by welcoming Microsoft Corp.’s Windows.

While the One Laptop Per Child Foundation is known as the brainchild of the Massachusetts Institute of Technology’s Nicholas Negroponte, his longtime MIT colleague Walter Bender was a close number two. Bender oversaw software and content for the green-and-white XO laptops, whose user interface was specially designed as an educational tool.

But in March, after OLPC’s initial run of its $188 laptops reached fewer children than originally envisioned, Bender became head of ‘‘deployment.’’ OLPC said it was streamlining its organization because the laptop’s technology essentially had been built.

XO’s former top security architect, Ivan Krstic, wrote on his blog that Bender got demoted. Krstic said OLPC was undergoing ‘‘a radical change in its goals and vision.’’

Last week, Bender left the group entirely. That marked a third high-profile departure from OLPC. In addition to Krstic, Mary Lou Jepsen, who had been chief technology officer, left in December.

Negroponte said Bender was burned out after helping to shape OLPC for two years, during which time it has sold more than 500,000 laptops for children in such countries as Haiti, Afghanistan, Rwanda, Peru, Uruguay, and Mongolia.

Bender already has new plans: to launch an independent effort to further the development of the XO’s homegrown software, known as Sugar, and get it to run on Linux computers other than XOs. ‘‘Sugar is in a narrow place and it is ripe to be unleashed,’’ he wrote in an e-mail exchange.

Sugar relies heavily on icons and other graphical features and avoids Windows’ files-and-folders format. But some governments have hesitated to invest in laptops without Windows. Some competing low-cost laptops being billed as educational tools, such as the Classmate PC developed by Intel Corp., do run Windows.

For about a year, Microsoft has been working to get a slimmed-down version of Windows to run on XO laptops. As a result, Negroponte said he expects XOs will be able to run Windows or Sugar.
(AP)

Posted by globebusiness at 3:45 PM | Comments (0)

Shaw's aims to give customers culinary inspiration

Shaw's Supermarkets Inc. said today that it is teaming up with the folks at America's Test Kitchen, a public television show about cooking, to help customers break out of their culinary ruts.

Focus groups conducted by the West Bridgewater-based chain found that many people were "sleep-shopping" in its grocery aisles and cooking the same "uninspired" meals week after week, the company said.

Looking to infuse diversity and pizzazz into its customer eating habits, Shaw's tapped America's Test Kitchen, which features uber chef Christopher Kimball.

Shaw's mandate to America's Test Kitchen? Create interesting recipes that can be easily prepared within 30 minutes.

Starting this month, the chain said its stores will feature an "Inspiration Station" - a booth that will offer recipe cards such as the one shown at left.

Each recipe has been tested at America Test Kitchen's headquarters in Brookline, and store aisles will have signs that point shoppers directly to the ingredients they will need for these recipes, Shaw's said.

Plans call for the "Get Inspired" program to feature eight different recipes each month, Shaw's said.

Among early recipes likely to be highlighted in the program are garlic chicken with sweet roasted pepper sauce, Mediterranean pork chops, and seared salmon with balsamic glaze, Shaw's said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:30 PM | Comments (0)

Raytheon chief earned nearly $15 million

Raytheon Co. chairman and chief executive William H. Swanson received 2007 compensation of nearly $15 million, up almost 25 percent from the previous year, according to regulatory filing today by the world's fifth-largest defense contractor.

Swanson received $1.23 million in salary, $3.05 million in non-equity incentive plan compensation and $575,699 in other compensation, including use of company aircraft and a company car, home security and financial planning services.

The bulk of Swanson's $14.96 million total compensation came in the form of stock awards that the Waltham-based firm valued at $10.11 million when they were granted last year. One award in January was valued at $6.38 million, and another in May at $3.73 million, according to a Securities and Exchange Commission filing.

Swanson's total 2006 compensation was $11.98 million, with about $7.47 million from stock awards.

Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

Raytheon's compensation committee said it set executives' compensations based on financial, operational, customer satisfaction, and other benchmarks.

Swanson, 59, headed Raytheon in a year in which the company's stock posted a nearly 16 percent gain with military hardware in strong demand. Shares have posted a small gain this year, reaching as high as $67.49 in January. Shares traded at $64.98 in afternoon trading today on the New York Stock Exchange.

The 72,000-employee company posted 2007 sales of $21.3 billion, up 8 percent for the year. Net income totaled $2.6 billion, about double the company's 2006 profit, and the backlog of contract bookings reached a company-record $36.6 billion.

Swanson, a 35-year employee at Raytheon, has been chief executive since July 2003 and chairman since 2004. (AP)

Posted by globebusiness at 2:26 PM | Comments (0)

Cambria closes on financing

Cambria Pharmaceuticals Inc. said today that it has closed a $5.4 million Series A financing.

The Woburn company said it will use the funding to advance its discovery of drugs that will treat such neurological disorders as ALS, or amyotrophic lateral sclerosis, which is sometimes referred to as Lou Gehrig's disease.

Participants in the financing included Biogen Idec New Ventures, the corporate venture group of Cambridge biotechnology company Biogen Idec Inc., and CommonAngels, a group of investors with offices in Lexington, Cambria said.

The company also said it is changing to Cambria Pharmaceuticals Inc. from Cambria Biosciences LLC.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:08 PM | Comments (0)

Vertex shares rise ahead of Hepatitis C data release

Cambridge biotechnology company Vertex Pharmaceuticals Inc. reported a wider first-quarter loss and lower revenue today, but shares climbed as analysts said upcoming data on its Hepatitis C drug telaprevir could be "highly significant."

For the quarter ended March 31, losses widened to $96.2 million, compared with a year-ago loss of $80.7 million as lower revenue was partially offset by reduced research and development expenses.

Total revenue declined to $41.7 million from $68.8 million in the 2007 quarter, as the company recorded less milestone and R&D partnership revenue.

The company also reaffirmed its full-year outlook for a loss of $380 million to $410 million on revenue between $200 million and $220 million. Wall Street's revised guidance forecasts a loss of $397.6 million on revenue of $215.9 million.

Vertex said it will present data on its Hepatitis C drug telaprevir at the 43rd Annual Meeting of the European Association for the Study of the Liver in Milan this week. Late Monday, Vertex reported encouraging interim midstage data in patients taking telaprevir twice daily, instead of the current practice of three times a day.

"We believe BID (2x/daily) dosing for telaprevir could minimize the potential advantage of competitors with a better pharmacokinetic profile and may fundamentally change the competitive landscape," Leerink Swann analyst Howard Liang said in a note to clients.

Cowen and Co.'s Rachel McMinn said the possibility that telaprevir could be a twice/daily drug is "highly encouraging," although she is waiting to see antiviral data as well as 12-week safety data.

Shares rose $1.12, or 4.4 percent, to $27.46 in midday trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 12:37 PM | Comments (0)

Waters Corp. reports profit increase

Analytical instrument maker Waters Corp. reported today that its first-quarter income grew 23 percent as sales rose.

In morning trading on the New York Stock Exchange, shares for the Milford company rose $4.21, or 8 percent, to $58.76.

Net income rose to $68.5 million from $55.9 million in the year-ago quarter.

Sales increased 12 percent to $371.7 million from $330.8 million.

"Despite challenging economic conditions, our global sales performance in combination with improvements in operational efficiency delivered impressive earnings growth and strong cash generation," chief executive Douglas Berthiaume said in a statement. (AP)

Posted by globebusiness at 11:15 AM | Comments (0)

People's United teams up with Stop & Shop in Maine

People's United Bank said today that it has signed an exclusive agreement with the Stop & Shop Supermarket Co. to operate some of its branches in the chain's Maine super store locations.

Although it operates 389 stores throughout much of the Northeast, Stop & Shop currently has only one store in Maine, a Kennebunk store that opened last year; at this time, Stop & Shop has not publicly disclosed further details of its expansion plans for Maine, a Stop & Shop spokesman said.

Based in Bridgeport, Conn., People's United Bank said it operates 75 of its 162 Connecticut branches in Stop & Shop stores.

People's United operates under several bank brand names in Maine, including Maine Bank & Trust and Ocean Bank. An Ocean Bank branch is scheduled to open in the Kennebunk Stop & Shop in June, the company said.

People's United said it believes its Connecticut business model of operating bank branches in supermarkets can be "easily replicated in Maine."

Stop & Shop and rival bank company Citizens Financial Group Inc. said recently that they have extended at least through 2017 their partnership that lets Citizens operate Citizens Bank branches in Stop & Shop locations in Massachusetts, New Hampshire, Rhode Island, and New York, a Citizens spokesman said.

People's United Bank is operated by People's United Financial Inc., a holding company based in Bridgeport, Conn.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:31 AM | Comments (0)

Genzyme looks to China

Cambridge biotechnology company Genzyme Corp. said today that it will build a research and development center in Beijing as part of its continued global expansion.

The company, which wants to establish a long-term presence in China, expects the facility to open in 2010, with project costs reaching $90 million.

(At left, the Genzyme facility on Storrow Drive in Allston.)

The 200,000 square-foot facility will be able to accommodate 350 employees. Genzyme said it already has 25 employees working in offices in Beijing and Shanghai and has a pilot program for its cell therapy MACI at Beijing Wujing Hospital.

Genzyme's products include the kidney disease treatment Renvela and several treatments for genetic disorders, including Gaucher disease treatment Cerezyme and Pompe disease treatment Myozyme, which has yet to gain wide approval in the United States. (AP)

Posted by globebusiness at 9:36 AM | Comments (0)

Sepracor goes live with allergy website

Marlborough drug maker Sepracor Inc. has powered up a new website on allergies only days after announcing the availability of a new prescription nasal spray for allergy sufferers.

Omnaris Nasal Spray is indicated for the treatment of symptoms associated with seasonal allergic rhinitis in adults and children 6 years of age and older as well as for symptoms associated with perennial allergic rhinitis in adults and adolescents 12 years of age and older, the company said.

Meanwhile, Sepracor said today that it has launched a "My Allergies in America" website, which contains data drawn from a survey of people with allergic rhinitis, including information about how people with rhinitis can better manage their allergies.

An estimated 40 million people in the United States are affected by allergic rhinitis, noted Sepracor, which is perhaps best known for its Lunesta insomnia drug.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:13 AM | Comments (0)

MIT unveils new solar energy project

The Massachusetts Institute of Technology and the Chesonis Family Foundation said today that they are launching a "solar revolution" project with the ultimate aim of making solar energy America's primary carbon-free fuel.

The Solar Revolution Project, funded by a $10 million gift from the Chesonis Family Foundation, aims to transform solar power from a "'boutique' option to an affordable, dependable, mainstream energy solution," MIT said.

The project will complement and interact with other large solar projects at MIT, creating one of the largest solar energy clusters at any research university, MIT said.

The Chesonis Family Foundation is a private philanthropic foundation whose benefactor is Arunas Chesonis, an MIT graduate and chairman and chief executive of PAETEC Holding Corp., a New York company that provides communications services and solutions.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:29 AM | Comments (0)

Poll: Consumers will scrimp this Mother's Day

Forget the dozen roses and the $24 box of chocolates. Strapped by high prices, consumers are expected to scale back on Mother's Day this year and opt for cheaper nosegays and M&M's instead of the pricier gifts they usually lavish on mom.

So suggests the National Retail Federation, a trade group of retailers headquartered in Washington D.C.

According to a new survey commissioned by the group and out today, it is estimated that consumers will spend an average of $138.63 this year on Mother's Day-related fare, versus an average of $139.14 last year.

"Mom has been saying for decades that it's the thought that counts on Mother's Day, and this year, kids might actually be listening," Tracy Mullin, president and chief executive of the retailers group, said in a statement.

The survey was conducted for the federation by BIGresearch, an Ohio-based firm specializing in consumer market intelligence.

"Consumers will be very cautious with their wallets this Mother's Day, heeding mom's advice that she really doesn't need much," Phil Rist, a BIGresearch vice president, said in a statement. "Gas prices and other economic issues will still be at the forefront of people's minds as they shop around for the perfect gift for mom."

Despite all the gloom and doom, the retailers group projects that US consumers will spend $15.8 billion on Mother's Day related purchases this year - an amount that adds up to a lot of M&M's.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:21 AM | Comments (0)

April 21, 2008

Talbots shares fall as analysts stay neutral on stock

Shares of Talbots Inc., the Hingham retailer of women's clothing, fell today, as two analysts reiterated "Neutral" ratings on the women's apparel retailer following credit concerns.

Last week, HSBC and Bank of America said they will either cancel or not renew lines of credit to the retailer. But Talbots said it has cash to fund business initiatives through the end of the year and reiterated fiscal 2008 guidance.

Today Wedbush Morgan Securities analyst Betty Chen said she remains concerned about Talbot's financing capabilities compared with its peers, a "potentially optimistic" three-year turnaround plan and revised merchandising and marketing initiatives that may distance the stores from their core shoppers. She also expressed concern about Talbot's ability to increase earnings in a weak retail environment.

Meanwhile, Lazard Capital Markets analyst Todd Slater said in a client note on Monday that a new merchandising, design and marketing team at Talbots is starting an "achievable" recovery plan.

"While the company is taking proactive and appropriate measures to reconnect with a wider customer base and rebuild its operating margin, the baby-boomer specialty space is oversupplied and this aging demographic is likely to remain financially challenged for the foreseeable future," he wrote.

He said he "remains on the sidelines," until at least the fall, when the company might deliver "hoped-for compelling and iconic product" and kept his "Hold" rating on the stock.

Shares fell 51 cents, or 6 percent, to $8.06 during midday trading on the New York Stock Exchange. The stock has traded between $6.48 and $26.10 during the past 52 weeks. (AP)

Posted by globebusiness at 2:06 PM | Comments (0)

Starwood will launch green hotel brand in Lexington

Starwood Hotels and Resorts Worldwide Inc. is launching a "green hotel brand" called Element, with the first property opening in July in Lexington, and 20 more hotels scheduled to open in the next year.

The hotels are built with technology that saves water and cuts electric use, including heat-reflecting roofing materials, energy-efficient appliances, and 16-foot windows to allow natural light into common areas. Laundry bags will be reusable, hybrid cars will get preferred parking, and garbage cans in the rooms will make it easy for guests to recycle.

Starwood has applied for certification for the Element hotels under the Leadership in Energy and Environmental Design Green Building Rating System. LEED is a nationally recognized benchmark for design, construction, and operation of high-performance green buildings. LEED certification means that third-party experts have verified that the building satisfies criteria for sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.

Only six U.S. hotels are LEED certified, though well over 100 have registered to be evaluated. The six are the GAIA Napa Valley, American Canyon, Calif.; the Orchard Garden Hotel, San Francisco; the Inn & Conference Center, a Marriott in Adelphi, Md., part of the University of Maryland University College; the Vancouver Conference Center and Hotel, a Hilton in Vancouver, Wash.; and the Len Foote Hike Inn, in Dawsonville, Ga. (AP)

Posted by globebusiness at 1:52 PM | Comments (0)

Circor shares jump

Shares of Circor International Inc. spiked today after the valve maker raised its first-quarter outlook, leading a Robert W. Baird analyst to lift his price target and earnings estimates.

Shares for the Burlington company gained $5.37, or 12.2 percent, to $49.32 in late morning trading on the New York Stock Exchange. The stock has ranged from $34.68 to $50.38 over the past year.

Analyst Michael A. Schneider raised his share price target to $49 from $45, noting that on Friday Circor lifted its quarterly guidance to a range 74 cents to 77 cents per share. The company previously forecast income of 54 cents to 58 cents per share.

Circor cited better-than-expected results in its energy and instrumentation and thermal fluid controls segments.

Schneider noted improved efficiency in Circor's core operations and higher oil prices as major drivers for the company. The company has significant exposure to the energy market, he said.

"The strong demand should continue to drive above-average revenue growth in Circor's energy segment in the coming quarters," Schneider said.

The analyst raised his first-quarter profit forecast to 75 cents per share from 48 cents.

On average, analysts polled by Thomson Financial predict a profit of 58 cents per share.

Circor is scheduled to report first-quarter results April 30. (AP)

Posted by globebusiness at 11:57 AM | Comments (0)

Eaton Vance buys Miami office building

Eaton Vance Corp. bought an office building in Miami for $50 million as part of a strategy to continue buying properties that are already leased to tenants, the Boston-based investment manager said today.

Through one of its funds, Eaton Vance bought the office building at 333 S. Miami Ave., a 147,895-square-foot building overlooking the Miami River.

Already leased long term to two US government agencies, Eaton Vance said the building is "an excellent real estate investment." (AP)

Posted by globebusiness at 10:44 AM | Comments (0)

Raytheon wins $241 million contract

Waltham defense contractor Raytheon Co. said today it has received a $241 million contract to provide the Republic of Korea with support for its Patriot air-and-missile defense system.

Work on the contract will be performed at a Raytheon facility in Andover as well as at Raytheon facilities in Alabama and New Mexico, the company said.

This production and support award complements the $28.7 million engineering services contract that the company announced March 3, Raytheon said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:22 AM | Comments (0)

iRobot Army contract is expected to be $63 million

Burlington's iRobot Corp. said today that its Army contract to develop next-generation portable battlefield robots now totals $63 million.

That total includes $6 million to accelerate delivery of 25 Small Unmanned Ground Vehicle, or SUGV, robots to the Army's Future Combat Systems program for testing.

To date, iRobot said it has delivered more than 1,400 PackBot robots to military and civilian customers; the PackBot can scout hostile terrain without putting soldiers at risk.

Modeled after the PackBot, the SUGV features a rugged, lightweight body that enables a single soldier to carry and deploy the robot, the company said.

Aside from military robots, iRobot also makes robots that do household chores; the Roomba, for example, will vacuum floors and rugs.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:44 AM | Comments (0)

Ice cream chain hails Patriots Day with freebies

Ice cream chain Cold Stone Creamery said it will give away a special Patriots Day treat today at 22 of its stores in Massachusetts and New Hampshire while supplies last.

The free three-ounce offering is named the "Patriots Day Creation," and its ingredients include cake batter ice cream, brownies, and fudge as well as red, white, and blue sprinkles, the chain said.

(Some regular menu offerings are displayed at right.)

As always, conditions apply. There's a limit of one per customer, and the "Patriots Day Creation" is an in-store only deal and cannot be packaged to go, the chain said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:20 AM | Comments (0)

Transformers, Littlest Pet Shop helps boost Hasbro

Rhode Island toymaker Hasbro Inc. said today that its earnings rose 14 percent in the first quarter on growth in brands such as Transformers and Littlest Pet Shop (left).

The world's second biggest toy company said it earned $37.5 million, or 25 cents per share, for the three months ended March 30, up from $32.9 million, or 19 cents per share, during the same quarter a year ago.

The results beat the expectations of analysts polled by Thomson Financial, who forecast net income of 14 cents per share.

Sales grew 13 percent to $704.2 million from $625.3 million a year ago.

The company said international revenue rose 22 percent to $248.3 million, while revenue in the U.S. and Canada segment grew 6 percent to $428.5 million.

Hasbro released the results as its chief rival, Mattel Inc., said it lost $46.6 million, or 13 cents per share, missing analysts' expectations of a profit of a penny per share. The El Segundo, Calif.-based maker of Barbie dolls and Fisher-Price toys blamed higher product costs and legal fees.

Hasbro Chief Executive Alfred J. Verrecchia said in a statement that the results indicated the company was on track for a strong 2008. (AP)

Posted by globebusiness at 7:49 AM | Comments (0)

Bank of America reports profit drop

Bank of America Corp. said today that its profit fell 77 percent in the first quarter, hurt by write-downs and rising credit losses.

The North Carolina-based bank has a big presence in Massachusetts.

Bank of America, which recently bought struggling mortgage lender Countrywide Financial, reported earnings of $1.21 billion, or 23 cents per share, on $17 billion in revenue.

The profit is down from $5.26 billion, or $1.16 per share, in the first quarter in 2007. Analysts were expecting 41 cents per share, according to Thomson Financial.

"Despite revenue growth in most of our businesses, these results clearly did not meet our expectations," Kenneth D. Lewis (right), chairman and chief executive officer, said in a statement. "The weakness in the economy and prolonged disruptions in the capital markets took their toll on our performance. That said, we are continuing to invest in growth initiatives across the company, and believe our core strengths - including our diverse income stream, liquidity and capital - put us in a strong position to withstand the jolts to the system and emerge even stronger when conditions improve."(AP)

Posted by globebusiness at 7:34 AM | Comments (0)

April 18, 2008

AG Coakley opposes proposed rate hike

Massachusetts Attorney General Martha Coakley announced her opposition today to a proposed rate hike by Bay State Gas Co. on the grounds that the company's request does not meet the legal standards for seeking an increase.

Bay State Gas, which provides retail natural gas service to about 285,000 Massachusetts customers, has asked the Massachusetts Department of Public Utilities, or DPU, to approve its request for an increase by May 1; if granted, the increase could cause customers' bills to rise by 5 percent, Coakley's office said.

According to Coakley's office, Bay State Gas contends that an increase is needed because its customers have significantly and unexpectedly reduced their usage following price increases caused by Hurricane Katrina.

Coakley argues that a request for a rate increase should include detailed information about a company's costs and revenues to support its claim that an increase is justified; in Coakley's view, Bay State Gas's rate request does not meet that standard, and because the application provides insufficient information, DPU should reject it.

Coakley's office said it twice filed briefs with the DPU last month urging the department to turn down Bay State Gas's rate-increase request, and today, Coakley expressed her opposition to the proposed rate increase in a press release.

Bay State Gas is a subsidiary of NiSource Inc., a public-utility holding company headquartered in Indiana.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:25 PM | Comments (0)

Red Sox will go green on Earth Day

The Boston Red Sox will sport a special green logo on the left sleeves of their uniforms to mark Earth Day when they play the Los Angeles Angels of Anaheim at Fenway Park on Tuesday.

Earth Day plans also include a pre-game presentation of an Environmental Merit Award to the Red Sox by officials from the US Environmental Protection Agency, the Red Sox said.

(The green logo shown at right will be worn only for this game, a Red Sox spokesman said.)

The award recognizes the Sox for environmental initiatives at Fenway, which include the installation of solar powered trash compactors around the park and the installation of solar panels that will soon help heat water at the park, the club said.

EPA administrator Stephen L. Johnson and John H. Adams, founding director of the Natural Resources Defense Council, are scheduled to take part in a ceremonial first pitch, the Red Sox added.

In September, the Sox, in partnership with the Natural Resources Defense Council, announced a five-year plan to bring green practices to Fenway Park; the plan is scheduled to culminate in 2012 in time for Fenway's 100th anniversary celebration.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:00 PM | Comments (0)

IBM buys another Bay State firm

IBM Corp. said today that it has acquired Diligent Technologies, a privately held storage technology company with headquarters in Framingham.

Financial terms of the deal were not disclosed.

IBM, which has its headquarters in Armonk, N.Y., said that Diligent develops software that is integrated with server and storage systems to help organizations lower the amount and cost of physical storage required in data centers.

The company said the acquisition will become part of its system storage business unit.

IBM shares rose 66 cents to $123.74 in morning trading on the New York Stock Exchange.

By one estimate in January, IBM had acquired nine software companies in Massachusetts. In February, IBM completed a $4.5 billion acquisition of Cognos Inc., a Canadian software company with US headquarters in Burlington. (AP)

Posted by globebusiness at 11:41 AM | Comments (0)

Talbots reiterates 2008 outlook

Women's apparel retailer Talbots Inc. of Hingham reiterated today its fiscal 2008 outlook and hosted a conference call this morning to calm investors' fears about its financing.

Following the call, Talbots shares rose 55 cents, or 7 percent, to $8.38 in late morning trading on the New York Stock Exchange. The shares closed at $7.83 yesterday.

After the market closed Tuesday, HSBC and Bank of America Corp. said they will either cancel or not renew lines of credit to the retailer. The company issued a statement Wednesday saying it had cash to fund business initiatives through the year.

Before this morning, shares had dropped 39 percent since Tuesday.

The retailer said today it still expects fiscal 2008 earnings from continuing operations between 47 cents and 52 cents per share. Including discontinued operations, the company expects a net loss of 7 cents to 17 cents per share.

The company also said it still anticipates revenue growth of 3 percent based on slightly negative same-store sales, or sales at stores open at least a year.

Talbots said if it achieves its guidance, it will have enough liquidity to fund the turnaround of its business.

Analysts polled by Thomson Financial expect profit of 36 cents per share. (AP)

Posted by globebusiness at 11:08 AM | Comments (0)

Stop & Shop offers "green" bag bounty

The Stop & Shop Supermarket Co. unveiled two "think green" initiatives today, including one that will pay customers a nickel for bringing reusable bags to the store.

For each shopping bag a customer brings from home to use while shopping - whether it's a paper, a plastic, or a reusable bag - the Quincy-based chain said it will deduct five cents from the total shopping bill, starting May 9.

Stop & Shop, which operates 389 stores throughout much of the Northeast and which is owned by the Dutch food retailer Royal Ahold NV, also announced a reusable-bag promotion with General Mills Inc., the Minnesota consumer-products company known for such brands as Pillsbury baked goods and Green Giant frozen vegetables. (Green Giant's iconic cartoon spokesman is exhibited at right.)

Starting today and running through Thursday, any Stop & Shop customer who purchases $15 worth of select General Mills products in one transaction will receive five reusable bags for free, Stop & Shop said.

General Mills products that are part of the promotion include Hamburger Helper, Green Giant vegetables, Yoplait yogurt, Progresso soup, Old El Paso taco ingredients, and Pillsbury baked goods, Stop & Shop said.

Stop & Shop isn't the only grocery chain to move to a more environmentally friendly bag policy.

In January, Texas-based Whole Foods Market Inc. said it planned to do away with plastic bags all together in its 270 stores by the end of April.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:32 AM | Comments (0)

Cambridge firm lands funding

GamerDNA Inc., a Cambridge company that looks to build online communities for folks focused on multi-player online role-playing video games, said today that it has completed a $3 million Series A financing.

The company was previously known as GuildCafe Entertainment Inc., and it said it will use the funds to expand product development, open new offices in Central Square, and launch GamerDNA.com, a video-game community that allows gamers to join forces with friends, share their stories, and discover what's happening in the games they love.

(At right, some video-game characters enjoy good company and adult refreshments.)

According to GamerDNA, what the world needs now is a "genre-neutral community that encompasses all types of games and gamers," and Boston venture capital firm Flybridge Capital Partners apparently agrees.

Flybridge Capital not only led the funding round but it also previously provided the company with $600,000 of seed funding.

GuildCafe.com, a website devoted to organizing groups within such games as "World of Warcraft," will continue as a separate site, the company said; at the moment, GamerDNA.com is in a "closed-beta" mode.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:48 AM | Comments (0)

Cubist reports profit increase

Lexington biotechnology company Cubist Pharmaceuticals Inc. said first-quarter profit more than tripled, helped by higher demand for its products in the United States.

Cubist markets Cubicin, an antibiotic used to treat bacterial infections of the skin.

(At left, a company researcher holds up a product sample.)

Net income rose to $17.9 million from $5.6 million.

Revenue rose 48 percent to $88.3 million from $59.5 million last year, while analysts predicted revenue of $86.2 million.

US product revenue rose 50 percent to $86.1 million, while European sales edged down 6 percent to $1.8 million. (AP)

Posted by globebusiness at 8:13 AM | Comments (0)

R.I. unemployment rate hits 6.1 percent

Rhode Island's unemployment rate hit 6.1 percent last month, the highest level at any point since August 1995.

It was also a full percentage point higher than the national unemployment rate.

A monthly survey by the state Department of Labor and Training showed that 35,100 residents were looking for work in March, an increase of 6,700 people over last year.

Jobs losses were recorded in nearly all sectors of industry, especially in manufacturing, retail trade and financial services. (AP)

Posted by globebusiness at 7:35 AM | Comments (0)

April 17, 2008

Dynogen, Apex call off $98 million merger

Dynogen Pharmaceuticals Inc., based in Waltham, and Apex Bioventures Acquisition Corp. have called off their merger.

In a statement late Wednesday, Apex said both companies decided to sever the $98 million deal, which was made public two months ago, because of "current market conditions."

Dynogen is a drug company focused on gastrointestinal and genitourinary disorders. Apex is a Hillsborough, Calif., company specifically formed to acquire healthcare companies.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 3:00 PM | Comments (0)

Dow Jones buys Generate Inc. of Maynard

Dow Jones & Co. said today that it has acquired Generate Inc., a small business intelligence software company in Maynard, for an undisclosed sum.

Generate's "relationship-mapping" applications, which are sold to business and financial services professionals, help them spot opportunities and connect to potential business partners.

Dow Jones, owned by Rupert Murdoch's News Corp., will run Generate as a standalone unit of its enterprise media group, a company spokesman said. The acquired company's 52 employees and 10 contractors will remain in Maynard.

A photo of Murdoch appears at right.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 2:42 PM | Comments (0)

Organogenesis will study combat injury treatments

Organogenesis Inc., a Canton biotechnology company that makes artificial skin, said today that it is part of a large consortium that aims to develop regenerative medicine therapies to treat battlefield injuries.

The consortium is led by the Institute for Regenerative Medicine at Wake Forest University's Baptist Medical Center, and it will be awarded $42.5 million over five years by the US Army Institute of Surgical Research, Organogenesis said.

Organogenesis chief executive Geoff MacKay (left) said in a statement that he believed his company's experience in regenerative medicine technology will be beneficial to the consortium.

For recent Globe coverage of Organogenesis, click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:17 PM | Comments (0)

Coakley strikes deal on workers' comp

Massachusetts Attorney General Martha Coakley said today that her office has reached a preliminary agreement that could result in some savings for businesses on their workers' compensation rates.

Coakley said that an agreement was reached between her office and the Workers' Compensation Rating and Inspection Bureau, or WCRIB, and the State Rating Bureau.

The agreement is subject to approval by the state commissioner of insurance, Coakley's office said.

In February, the WCRIB submitted a request to the Division of Insurance seeking a 2.3 percent rate increase for companies purchasing workers' compensation insurance policies, Coakley's office said.

Coakley's office then intervened, and the insurers agreed to settle the matter by reducing rates by 1 percent from current prices; that action could save businesses $30 million compared to rates sought by the WCRIB, according to Coakley's office.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:48 PM | Comments (0)

Biogen says no to Icahn's board candidates

Biogen Idec Inc. today rejected billionaire investor Carl Icahn’s proposed corporate directors, setting up a proxy fight over who sits on the Cambridge biotechnology company’s board of directors.

Biogen Idec spokeswoman Naomi Aoki said the current board interviewed Icahn’s three nominees, but decided they were unsuitable because they were committed to his “single-minded agenda to sell the company.” Aoki said such an agenda likely would hurt the company’s ability to attract talented employees and form partnerships with other companies.

The company schedules staggered elections for its 12-member board, so only four seats are up for election this year. But if Icahn succeeds in persuading shareholders to approve his nominations, it would give him a powerful platform to continue pushing for a sale of the company or to make other changes. It also could put him in position to win a majority of board seats next year, essentially giving him control of the company.

Icahn, who recently reported that he owned more than 4 percent of Biogen Idec shares, nominated one of his investment managers, Alexander J. Denner, along with two Harvard Medical School professors, Richard C. Mulligan and Dr. Anne B. Young.

But Biogen Idec said it decided to back three current board members -- Cecil Pickett, Lynn Schenk and company cofounder Phillip Sharp -- who are up for re-election. It also nominated Stelios Papadopoulos, a retired investment banker with Cowen & Co., to replace Thomas Keller, who reached the mandatory retirement age.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 1:18 PM | Comments (0)

Boston Scientific gets Canadian approval for stent

Natick medical device maker Boston Scientific Corp.said today it has received regulatory clearance to sell its Taxus Liberte drug-eluting stent (right) in Canada.

Stents are wire mesh tubes used to keep open arteries that have been unclogged during medical procedures such as coronary angioplasties. Some stents are bare metal. More expensive drug-coated stents elute drugs that are hoped to reduce the rate at which arteries reclog. There has been debate over which type of stent is more effective.

The stent approved by Canadian regulators is the Taxus Liberte paclitaxel-eluting coronary stent, Boston Scientific said.

That stent has been previously approved for sale in Europe and other international markets and is currently awaiting US approval by the Food and Drug Administration, the company said.

In mid-day trading on the New York Stock Exchange, Boston Scientific shares were down 16 cents to $12.42.

Click here for previous Globe coverage of Boston Scientific.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:00 PM | Comments (0)

Harvard study: Home improvements slow

A weakening economy and falling consumer confidence is slowing spending on home remodeling projects, Harvard University's Joint Center for Housing Studies said in a report today.

(Photo at right: You could see less of this in coming months.)

Home owner spending on home improvements is projected to fall by an annual rate of 4.8 percent through the end of 2008, the center said in its Leading Indicator for Remodeling Activity report.

Spending on home owner improvements is projected at $166.3 billion in 2008, down from $174.7 billion last year, the center said.

"Spending on home improvements continues to be sluggish as home owners respond to falling home prices," center director Nicolas P. Retsinas said in a statement.

In his own statement, Kermit Baker, director of the center's Remodeling Futures Program, added, "It looks unlikely that we will see any improvement in the remodeling market until 2009."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:01 PM | Comments (0)

Papelbon expands pitchman duties

Jonathan Papelbon of the Boston Red Sox has increased his pitching workload - only it's products he's pitching, not just 97 m.p.h. fastballs.

Prime Motor Group, a Westwood-based string of auto dealerships, said today that Papelbon will be promoting its dealerships, which include a Mercedes-Benz dealership in Westwood, an Infiniti dealership in Hanover, and a Toyota dealership in West Roxbury.

Plans call for Papelbon to be the voice of Prime Motor Group's radio ads, and Papelbon will also be featured in signage throughout the dealerships, the company said.

The deal between Papelbon and Prime Motor Group was brokered with the help of WRKO, a radio station partner of the Boston Red Sox, Prime Motor Group said.

"Papelbon is certainly a fan favorite," Prime Motor Group president David Rosenberg said in a statement, "and we're thrilled to have him representing our brand."

Papelbon isn't just pitching Toyotas and Infinitis these days. He recently started appearing in TV ads for Dunkin' Donuts, the Canton-based coffee-and-baked-goods chain.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:09 AM | Comments (0)

Summers urges more investing in science education

The rise of the developing world is the most important story of our era, and the future success of America and the Boston area will increasingly hinge on their ability to adapt to the rapidly growing global economy, economist and former Harvard University president Lawrence H. Summers told a Boston conference this morning.

Summers, a former US Treasury secretary during the Clinton administration and a former chief economist at the World Bank, spoke at the spring conference of the Massachusetts Technology Leadership Council, which focused on trade ties with China, India, and Russia; the conference is being held at the Sheraton Boston Hotel.

In a presentation to about 300 people, Summers said, "It will require us to think in a new way if we want to take advantage of what will be a remarkable new global economy."

Summers noted that the Chinese economy is growing at 7 percent a year as living standards have increased by more than 100 times during a 75-year life span.

"This is an unprecedented event in human history," said Summers, who called for greater US investment in science and technology education.

What cannot be argued, he added, is that "China and India between them will turn out 10 times as many engineers as the United States will."

Summers stepped down as president of Harvard in 2006 after an often tumultuous five-year reign.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 9:46 AM | Comments (0)

Stata receives lifetime achievement award

Ray Stata, cofounder and chairman of Analog Devices Inc. of Norwood, has received the 2008 ACE Lifetime Achievement Award from the editorial board of EE Times, Analog Devices said.

ACE stands for "annual creativity in electronics," and Stata was honored for his contributions to technology innovation in the electronics industry and his more than 50 years of corporate leadership.

Analog Devices is a leading maker of signal processing chips.

Stata may also be well known among Cambridge architecture buffs. He was a lead donor for the Ray and Maria Stata Center for Computer, Information, and Intelligence Sciences (left) at the Massachusetts Institute of Technology.

The controversial building was designed by architect Frank O. Gehry.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:53 AM | Comments (0)

April 16, 2008

Oscient stock shares sink on revenue outlook

The stock of Oscient Pharmaceuticals Corp. is plunging as Wall Street is disappointed by the company's first-quarter revenue forecast.

The Waltham, company said it expects its quarterly revenue to drop 20 percent to about $18.5 million, with more than two-thirds of the revenue coming from sales of its cholesterol drug Antara. Oscient said the timing of shipments and wholesaler buying affected sales.

In the year-ago period, the company booked revenue of $23.2 million.

The stock plunged 69 cents, or 24.4 percent, to $2.14 in afternoon trading on the Nasdaq Stock Market.

Oscient Pharmaceuticals Corp. backed its full-year forecast of $96 million to $103 million from sales of Antara and Factive, a treatment for pneumonia and bronchitis.

The two analysts reporting to Thomson Financial expected sales of $27.9 million in the first quarter, and $106.6 million for the year. (AP)

Posted by globebusiness at 3:45 PM | Comments (0)

Borders will open concept store in Wareham

Book seller Borders Group Inc. said today that it plans to open one of its new concept stores in Wareham in June.

The 25,401 square-foot store represents a "significant enhancement" over the more than 1,100 existing stores that the Michigan-based chain operates under such nameplates as Borders and Waldenbooks, Borders said.

According to the company, its new concept stores seek to unite Internet and digital options with hard-cover and paperback books while also providing customers with an "engaging shopping experience."

At the concept store's digital center, for example, customers can download books and burn custom CDs, and there will also be a Seattle's Best Coffee cafe at the Wareham store as well as special destinations for cooking, wellness, travel, graphic novels, and children's books, the company said.

Wareham is only one of just under 20 communities in the entire nation in line to get a new Borders concept store in 2008, a Borders spokeswoman said.

(The images accompanying this story are from a special section of the company's website devoted to the new concept store.)

Book sellers have been facing challenges of late, in part because today's consumers have a host of entertainment options available to them aside from the old-fashioned pleasure of reading a good novel.

Meanwhile, some consumers have come to regard books as commodities and look for the lowest possible prices at discounters such as Wal-Mart Stores Inc. and at wholesale clubs such as Costco Wholesale Corp., analysts have said.

Perhaps squeezed by such forces, Borders announced last month that it may put itself up for sale. Borders said it has annual sales of $3.8 billion.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:11 PM | Comments (0)

Jack Welch says GE successor has credibility issue

HARTFORD, Conn. - Former General Electric Co. chief executive Jack Welch (right) said today that that his successor, Jeffrey Immelt, has a credibility issue after GE surprised investors by missing its earnings target last week.

GE announced Friday that profit fell 6 percent in the first quarter from last year. The report came a month after Immelt promised investors that the company would hit its financial goals.

"Here's the screw up: You made a promise that you'd deliver this and you missed three weeks later," Welch said on CNBC, a cable station owned by GE. "Jeff has a credibility issue."

Welch noted later of Immelt, "He apologized."

GE spokesman Gary Sheffer did not directly address Welch's comments.

"We've said we hate to disappoint investors, but we're confident we have a strong set of businesses and the right strategy to execute on our revised outlook for the year," he said.

GE said Friday that disruptions in its financial business late in the quarter kept it from warning Wall Street. But investors and analysts were stunned as stock fell 13 percent and wiped nearly $47 billion off the company's value.

Welch, 72, said he would be very surprised if Immelt makes the same mistake again. (AP)

Posted by globebusiness at 1:28 PM | Comments (0)

State's unemployment holds steady at 4.4 percent

The Massachusetts unemployment rate remains steady as the state adds jobs, despite rising unemployment nationwide.

(At left, locals at work.)

The state said today that unemployment remained unchanged at 4.4 percent in March. February unemployment was originally reported at 4.5 percent, but has been revised down to 4.4 percent now that complete data are available.

Meanwhile, the nation's unemployment rate rose from 4.8 percent in February to 5.1 percent in March.

A state survey of employers found a gain of 2,900 jobs in March in Massachusetts. That's the largest monthly increase since November, and the sixth consecutive monthly increase. (AP)

Posted by globebusiness at 12:23 PM | Comments (0)

Talbots stock shares fall in mid-day trading

Shares of embattled Talbots Inc. fell $3.83, or 30 percent, to $9.02 in mid-day trading on the New York Stock Exchange after the Hingham apparel retailer said late yesterday that a pair of lenders had notified the company that they will no longer provide Talbots with credit.

Many retailers have been struggling in a sluggish economy, and Talbots also seems to be feeling the effects of a fashion shift; instead of donning its classically styled attire, many of the middle age women who make up the company's target audience are opting to wear casual clothing more frequently, both in the office and during leisure pursuits.

(At right, a model shows off a Talbots look.)

In a note to investors this morning, Lazard Capital Markets analyst Todd Slater wrote that he doesn't see any "liquidity crisis" at Talbots.

"We believe the perception is likely to be far worse than reality," Slater wrote.

In a filing with the Securities and Exchange Commission earlier this week, Talbots said it was notified on April 9 that the Hongkong and Shanghai Banking Corp. would gradually be cutting off a $135 million line of credit used to import merchandise. The bank reduced Talbots' credit limit to $50 million, effective last week, and advised the retailer it would further scale it back to $45 million on May 8, $30 million on June 9, and $15 million on July 8. The filing said Talbots was told the bank would cancel the credit line entirely on Aug. 8.

Talbots also said in the filing that a $130 million credit line from Bank of America Corp. expired on Feb. 23, and the retailer was told on April 7 that no new credit would be provided. At the same time, Talbots said the Mizuho Corporate Bank had extended a credit line on April 11 providing for up to $18 million in borrowing over the coming year.

Click here for recent Globe coverage of Talbots.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:00 PM | Comments (0)

Gotuit helps with Matt Ryan audition of football skills

Woburn's Gotuit said that it has again been selected by Sports Illustrated to power its SI FilmRoom video portal for fans who want lots of coverage of the upcoming National Football League draft.

Visitors to the site can gain access to a video library of highlight clips of college football players showing off their skills. To see footage of Boston College quarterback Matt Ryan, click the video above this story.

Thanks to Gotuit technology, SI's video portal has "superior video navigation and search capabilities," said Gotuit, which makes software that helps companies monetize their video content across such channels as broadband, mobile, and cable.

At SI FilmRoom, viewers can "personalize their experience" and navigate the video library by college or position, among other selection criteria; viewers can also search across the video library to build dynamic play-lists, Gotuit said.

The application is free to all visitors and is supported by in-stream and in-page advertising, Gotuit noted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:39 AM | Comments (0)

iRobot hires Watertown branding firm

How do you brand a robot maker? That's the challenge for Corey McPherson Nash, or CMN, a Watertown branding firm that said it has just been hired by iRobot Corp., the Burlington company that makes both household and battlefield robots.

CMN said its mandate is to create a cohesive brand strategy between the company's two divisions, which make such divergent products as the PackBot, which scouts hostile terrain in combat situations for US military personnel, and the Roomba, which will robotically vacuum your rug.

(A beauty shot of a vacuuming robot is shown at left. Watch out, Fido! That Roomba could be coming your way.)

In a statement, CMN said that its charge is to develop an "overall brand book that expresses the DNA behind iRobot" while successfully linking the market identities of the company's consumer and government/industrial divisions.

The undertaking will include overall brand strategy, comprehensive messaging, and systems design that will ensure both visual and verbal consistency, CMN said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:55 AM | Comments (0)

Boston Scientific agrees to buy CryoCor for $17.6 m

Natick medical device maker Boston Scientific Corp. said today it has agreed to pay $17.6 million to buy CryoCor Inc., a California company that makes a disposable catheter system.

(Some CryoCor products are shown at right.)

Since June, the two companies have been jointly seeking to develop a therapeutic solution to atrial fibrillation, or Afib, a common cardiac arrhythmia that affects millions of people.

The existing agreement involves the development of a console to deliver cryo energy to a cryo balloon catheter that Boston Scientific has designed to provide a safe and standardized method to isolate the electrical activity originating from the pulmonary veins, which are believed to be a source of Afib, Boston Scientific said.

The acquisition of CryoCor will allow Boston Scientific to further refine this base console technology and gain exclusive rights to CryoCor's intellectual property, Boston Scientific said.

The proposed acquisition has the approval of CryoCor's board of directors and is expected to close this quarter, Boston Scientific said.

Click here for recent Globe coverage of Boston Scientifc.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:06 AM | Comments (0)

Northwestern University taps Kronos Inc.

Northwestern University student employees may want to think twice about playing hooky from work, and that goes for university mascot Willie the Wildcat too (seen on the job at right).

That's because Northwestern has decided to use a work-force management software suite from Kronos Inc. of Chelmsford, and the suite's capabilities include tracking absenteeism.

According to Kronos, which provides technology that helps employers do such things as manage payrolls and employee time cards, its "Workforce Central" suite will help Northwestern "address the complexities of its unique workforce by effectively managing all student employees working multiple jobs at its campuses in Chicago and Evanston, Ill."

Such a task can be challenging because many students work multiple jobs under different supervisors and at different wage rates. But if done right, it can help the university to improve employee productivity and manage labor costs, the company said.

Kronos said its work-force management suite will also accurately track absenteeism for the university's 10,000-plus employees.

Last year, the company went private in a $1.8 billion acquisition by Hellman & Friedman Capital Partners LLC, a private equity firm with offices in San Francisco.

For additional Globe coverage of Kronos, click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:16 AM | Comments (0)

April 15, 2008

Authority will stop making federal student loans

The nonprofit Massachusetts Educational Financing Authority, which provides student loans, today said that it will stop offering federal student loans on July 1.

That will affect thousands of Massachusetts students: MEFA made federal loans to 14,700 in the current school year.

The authority, which uses state tax dollars to make student loans, has about $300 million in federal loans on its books, including Stafford and Plus loans, out of a total of $1.5 billion. The other $1.2 billion are private loans.

‘‘Because of the unprecedented disruptions in the capital markets, it really has prevented us from securing funds for our [federal loan] program,’’ said Thomas Graf, MEFA’s executive director. It will continue to offer private loans.

A Stafford loan covers from $3,500 in tuition for a freshman to $5,500 for a senior and is offered at a low 6.8 percent interest rate. Many families apply for these loans as well as for additional private loans to pay for school. MEFA is one of many entities that make certain kinds of federal loans.

Students, families, and financial aid directors have been waiting for word about MEFA funding for next year’s loans. It had warned since March that it was unsure how much money it would have to lend for the 2008-2009 school year.

MEFA decided it would not be able to raise the money to make the federal loans in its usual way, through a bond issue. It’s still hopeful it will be able to raise money through bonds to finance its private loan business.

Last week, a large nonprofit student loan guarantee firm in Boston, Education Resources Institute Inc., filed for bankruptcy protection, causing disruptions for other student loan lenders.
(By Beth Healy, Globe staff)

Posted by globebusiness at 7:47 PM | Comments (0)

Boston Common Garage offers Earth Day perk

Attention, local hybrid drivers: You may qualify for an Earth Day bonus.

The Massachusetts Convention Center Authority said today that motorists will receive complimentary parking for such hybrid vehicles as the Toyota Prius (left) at the Boston Common Garage on Earth Day, which is April 22 .

Besides the Boston Common Garage, the authority owns and oversees the operation of such facilities as the Boston Convention & Exhibition Center and the John B. Hynes Veterans Memorial Convention Center in Boston.

The authority also said today that starting this month, it has reserved two parking spaces in the Boston Common Garage for Zipcar Inc., the Cambridge-based car-sharing service.

As a result, Zipcar members are now able to pick up and drop off Zipcar vehicles at the garage, the authority said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:13 PM | Comments (0)

Pilots demonstrate against American's management

American Airlines pilots upset with the carrier’s management demonstrated today in downtown Boston and at Logan International Airport.

Seventeen pilots in blue flight uniforms held signs and staged a silent protest outside the downtown headquarters of Fidelity Investments.

A pilots’ spokesman, Tom Walters, said they want Fidelity to press American’s management about issues including aircraft maintenance. The mutual fund company is a corporate travel customer of the airline.

A similar demonstration was held at Logan, as well as at airports nationwide.

One of the pilots’ complaints is about American’s on-time flight record.
(AP)

Posted by globebusiness at 1:54 PM | Comments (0)

Marathon sponsors' ads to be at start, finish lines

The Boston Marathon is breaking with a 112-year tradition, putting corporate ads at the start and finish lines of the world’s oldest marathon.

Guy Morse, executive director of the Boston Athletic Association, told The Associated Press that logos for race sponsors Adidas and John Hancock Financial Services will be painted on the ground and posted near the VIP seating area.

Morse says event organizers are feeling the pressure to recruit elite athletes, and that means keeping sponsors happy.

No new money was exchanged for the ads.
(AP)

Posted by globebusiness at 1:37 PM | Comments (0)

Racepoint feted for One Laptop Per Child campaign

Racepoint Group, a Waltham marketing firm specializing in digital media relations, said today it has won an international award for its work on behalf of One Laptop Per Child, a Cambridge nonprofit organization.

The brainchild of Massachusetts Institute of Technology professor Nicholas Negroponte, One Laptop Per Child, or OLPC, seeks to provide low cost laptop computers to poor children around the world.

Racepoint is part of W2 Group, the "global marketing services ecosystem" founded by local Internet marketing guru Larry Weber.

With One Laptop Per Child, one of Racepoint's jobs was to draw attention to a video that highlighted an OLPC holiday promotion called "Give One Get One;" the video, which is posted over this story, features Masi Oka, an actor in the NBC ensemble TV drama "Heroes."

The goal of the promotion was to urge Americans and Canadians to pay $399 to buy one OLPC laptop for themselves and to donate a second to a poor child.

The Fox TV network aired the video as a public service announcement, and OLPC posted it on YouTube.com, a video-sharing website, said Racepoint, which looked to drive traffic to the YouTube posting by sending links to bloggers interested in the subject.

One result of the campaign was that anyone who searched for OLPC on YouTube would have easily come across the "Give One Get One" video, Racepoint said.

The popularity of the promotion so overwhelmed OLPC that it had difficulty delivering the laptops to many North American buyers.

But Racepoint's efforts on the campaign impressed judges at the International Public Relations Association.

Those judges awarded Racepoint a Golden World Award for Excellence in Public Relations, Racepoint said.

Racepoint added that its work is also a finalist for a special United Nations Award.

For recent Globe coverage of One Laptop Per Child, click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:59 PM | Comments (0)

State Street says it faces billions in unrealized losses

Fitch Ratings is considering cutting the credit ratings of State Street Corp., the ratings agency said today after the Boston financial services company reported steep losses in its investment portfolio during the first quarter, the Associated Press reported.

In morning trading on the New York Stock Exchange, State Street shares were trading at $72.94, down $3.92 or 5.1 percent.

State Street, which manages $14.9 trillion in assets for banks and investors, posted a $530 million profit for the first quarter today, an increase of 69 percent from a year ago.

Fitch said the company's major business of overseeing clients' assets remains strong.

However, State Street's $75.4 billion investment portfolio lost $3.16 billion in value during the quarter. The portfolio has some vulnerability to riskier bonds secured by bad credit, which have been pummeled amid the credit crisis, the AP said.

While Fitch said many of these losses are possibly overstated, the potential for more losses is significant.

State Street was seen until now to be less affected by the credit crisis that forced many banks write down billions of dollars in losses, noted the Reuters news service in a separate story; Reuters added that State Street took a $279-million charge in the fourth quarter to settle lawsuits tied to losses on mortgage market investments.

The disclosure came on the day that State Street issued quarterly earnings results.

According to an AP story, State Street said today that net income rose to $530 million from $314 million during the same quarter a year ago.

Revenue rose to $2.58 billion from $1.7 billion in the year-ago quarter.

In a statement, chairman and chief executive Ronald E. Logue (right) said he was extremely pleased with State Street's record revenue performance.

The only area where State Street saw a decline in revenue was processing fees, where revenue fell 26 percent to $54 million due to lower revenue from structured products, the AP reported.

To read State Street's press release on its earnings report, click here.

Posted by globebusiness at 11:45 AM | Comments (0)

Aileron Therapeutics completes $10 million financing

Cambridge biopharmaceutical company Aileron Therapeutics said today that it has raised $10 million through a private placement of preferred stock.

Aileron said that the round was co-led by Apple Tree Partners, a venture capital firm with offices in Cambridge, and Novartis Venture Funds, an investment firm with offices in Cambridge and ties to Swiss drug giant Novartis AG.

Aileron said it is focused on applying its proprietary stapled peptide technology to develop biologics - drugs made from living organisms - for the treatment of cancer and other diseases.

The company plans to use the proceeds from the financing to expand its drug discovery team and open a 10,000-square-foot plus research facility at 840 Memorial Dr. in Cambridge, Aileron said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:43 AM | Comments (0)

Raytheon rates kudos for MathMovesU program

With the right math courses, young students can go on to develop interesting devices such as the one shown in the demonstration video above, a portable prototype from Raytheon Co. that can help firefighters and rescue workers pulverize concrete walls.

Waltham defense contractor Raytheon believes so strongly in inspiring middle school students to study math that it has developed something called the MathMovesU program, which aims to turn math's image around for 11- to 13-year-old students.

As a result of such efforts, Raytheon will be honored with this year's Gould Education & Workforce Development Award from the Associated Industries of Massachusetts, or AIM, an advocacy group that represents Bay State employers.

AIM said it will present the award to Raytheon officials during its annual meeting and luncheon May 9 at the Waltham Westin Hotel.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:09 AM | Comments (0)

ArQule names Paolo Pucci as chief executive

Woburn biotechnology company ArQule Inc. today named Paolo Pucci as chief executive and a board member, effective June 9.

(In a 2007 photo at right, a worker in an ArQule lab checks out ARQ 501, a drug candidate intended to treat various forms of cancer, including head-and-neck cancers and pancreatic cancer.)

Pucci succeeds Stephen A. Hill, who became president and chief executive of Solvay Pharmaceuticals on April 1. Peter Lawrence will continue as president and chief operating officer, the company said.

Pucci currently serves as senior vice president and president of the Bayer-Schering Pharmaceuticals Global Oncology/Specialized Therapeutics divisions. (AP)

Posted by globebusiness at 8:58 AM | Comments (0)

Dunkin' Donuts offers Tax Day bonus

Taxpayers may have to wait a bit for their economic stimulus payments, but there is instant Tax-Day gratification today at the many Dunkin' Donuts that are handing out what the chain describes as a "tasty tax loophole" - a free doughnut.

At participating stores nationwide, the Canton coffee-and-baked-goods chain is offering a free doughnut with the purchase of any size cup of Dunkin' Donuts hot coffee, but the complimentary sinker deal is good for one day only - April 15, Tax Day.

(At left, a breakfast scientist prepares doughnuts in Dunkin's test kitchen.)

"We hope that Dunkin' Donuts can make Tax Day a little more palatable for tax filers and coffee lovers by offering them a delicious free doughnut," Frances Allen, the chain's brand marketing officer, said in a statement."

Dunkin' Donuts may be paying some taxes of its own. In 2007, the chain reported global system-wide sales of $5.3 billion.

Dunkin' wasn't alone in offering Tax Day promotions. Staples Inc. of Framingham and office-supply rival Office Depot Inc. will copy tax forms free today.
(By Chris Reidy, Globe staff, and Stephanie Peters, Globe correspondent.)

Posted by globebusiness at 7:23 AM | Comments (0)

April 14, 2008

Tests of drug on MS patients disappoint

Biotech firms Biogen Idec Inc., of Cambridge, and Genentech Inc., of California, today said that Rituxan failed to meet its goal in a mid- to late-stage study for primary-progressive multiple sclerosis, or PPMS.

During the 96-week trial, 439 patients with the autoimmune disease took either Rituxan or a placebo. Serious adverse events were 16.4 percent with Rituxan, versus 13.6 percent with the placebo.

The companies are continuing to evaluate data from the study and the drug’s long-term safety.
‘‘We are disappointed ... but not surprised, given the significant clinical challenges presented by PPMS,’’ said Hal Barron, Genentech’s chief medical officer.

In multiple sclerosis, the immune system attacks the myelin sheath, inflaming and destroying the fatty, protective substance. Symptoms include weakness and fatigue, numbness, blurred vision, muscle stiffness, and speech problems. PPMS affects about 10 percent of the MS population.

Rituxan is already approved for non-Hodgkin’s lymphoma and rheumatoid arthritis.
(AP)

Posted by globebusiness at 7:36 PM | Comments (0)

Japan OK's Boston Scientific heart device

The medical device maker Boston Scientific Corp. today said the Japanese government has approved its Acuity Steerable ventricular lead, an electrode system that can be placed in the heart by snaking it through blood vessels.

The Natick company also received reimbursement approval for the lead from the National Health Insurance System and plans to launch it immediately in Japan.
(AP)

Posted by globebusiness at 6:56 PM | Comments (0)

Kelly's Roast Beef switches to trans fat-free oil

Kelly's Roast Beef, a Saugus chain of five restaurants, has eliminated trans fat from its fried foods by voluntarily switching to a cooking oil free of trans fats, the chain's owner, KRB Management Inc., said today.

"We know many of our customers take pleasure in eating fried food at Kelly's, so why not make the commitment to offer fried foods that promote a better, healthier lifestyle without sacrificing quality or taste," chain chief executive Brian McCarthy said in a statement.

Kelly's becomes one of the latest chains to make the move as consumers read and hear reports about trans fat being linked to heart disease.

Friendly Ice Cream Corp. and Legal Sea Foods are among chains that have either made the switch from trans-fat oils or have announced plans to do so.

Last month, Boston joined such communities as Brookline, New York, and Philadelphia in approving measures that require restaurants to stop serving menu items with significant amounts of trans fats.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:43 PM | Comments (0)

American pilots to protest at Logan, Fidelity

Hundreds of American Airlines Inc. pilots plan to protest tomorrow at key airports and some of the carrier's largest corporate clients' headquarters in nine cities nationwide -- including in Boston at Logan International Airport and Fidelity Investments Inc. -- to call attention to American's poor performance.

The pilots' union, which said it started planning the demonstration in February, will post 30 to 50 pilots at each location between 11 a.m. and 2:30 p.m. Pilots, who are in the midst of contract negotiations, will pass out leaflets urging inconvenienced passengers to share their travel woes at a newly launched website, tellyouraastory.com. They said the protest will not disrupt scheduled flights.

The Allied Pilots Association, the union representing American's 12,000 pilots, said its campaign is not tied to contract negotiations nor is it a response to American's cancellation last week of more than 3,000 flights due to aircraft safety inspections. But the union said last week's upheaval, which stranded more than a quarter-million passengers, punctuates ongoing management problems at the world's largest airline. Last year, American was ranked worst among network carriers for on-time performance.

An airline spokesman was unavailable to immediately comment.

The protests are scheduled to take place in Boston, New York, Dallas, St. Louis, Miami, San Francisco, Los Angeles, Chicago, and Washington, D.C., a day before American announces its quarterly earnings.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 3:08 PM | Comments (0)

PTC software helps design shark research sub

Parametric Technology Corp. of Needham said today that a German engineering firm has used its 3D modeling software to help design a research submarine that studies the behavior of great white sharks off the coast of South Africa.

With the help of Parametric's CoCreate Modeling software, Arnold Maschinenbau was able to conceptualize, design, modify, and manufacture a specialized research submarine called the Shark Observation Vehicle II, or SOVII, in just nine months, said Parametric, which refers to itself as PTC.

Click here for more information about this shark research project.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:06 PM | Comments (0)

New law toughens penalties for wage violations

Massachusetts Governor Deval Patrick has allowed a bill requiring companies to pay hefty penalties for failing to pay full wages or overtime to become law.

Patrick and Democratic lawmakers were at odds over the bill, which was designed to toughen a 1993 law intended to require companies found not to have paid wages or overtime to pay workers three times the amount owed.

Patrick initially sent the bill back to lawmakers, saying he supports tough penalties but wanted to give judges more discretion to require lesser fines in some cases.

Lawmakers rejected the changes and shipped the bill back to Patrick. He decided to allow it to become law without his signature.
(AP)

Posted by globebusiness at 2:43 PM | Comments (0)

Great Moves opens center in Newton

Great Moves, a treatment center for overweight children and adolescents, opened in Newton.

The center offers a six-month program that includes exercise, nutrition education, counseling, and cooking for overweight kids and their parents.

Clinical director Suzanne Rostler is the senior dietitian at the Optimal Weight for Life program at Children’s Hospital Boston.

The center, on Needham Street, will hold an open house May 20. Speakers will include Dr. David Ludwig, director of the Optimal Weight for Life program at Children’s Hospital.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 1:18 PM | Comments (0)

Local commuter paper shuts down

BostonNow, a free daily newspaper aimed at area commuters for the past year, will cease publication, its top executive said today.

Russel Pergament, chief executive of the commuter paper, said he was notified late last week that its foreign investor, the Baugur Group of Iceland, was pulling the plug. He blamed the move on financial problems in Iceland, not on the troubled US newspaper industry.

"Economic conditions in Iceland have become catastrophic," Pergament said, citing interest rates of 15.5 percent, an inflation rate of 8.7 percent, and a 20 percent decline of the nation's currency, the krona, against the dollar. "This paper is on track and looks good. We're proud of what we've done, but you need more money to run a newspaper."

The shutdown will idle about 50 full-time employees of BostonNow and about 100 street hawkers who distributed the paper at Boston area subway and rail stations on weekdays, Pergament said. He said he was organizing job fairs for employees affected.

BostonNow, which launched on April 17 of last year, listed its most recent circulation as 119,000. It competed with another five-day-a-week commuter paper, Metro Boston. The New York Times Co., corporate parent of the Boston Globe, owns 49 percent of Metro Boston.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 1:09 PM | Comments (0)

Survey: Insomnia inflicts many workers worldwide

Insomnia induced by workplace concerns is rampant, preventing many workers from getting a good Sunday night's sleep in preparation for the work week, according to a new poll from Monster, the online jobs and recruiting website with a big presence in Maynard.

"When it comes to getting a good night's sleep in preparation for the work week, a majority of workers worldwide are hitting the ground yawning," Monster reports.

(At right, heiress Paris Hilton seems to find the prospect of her upcoming work week to be exhausting and tiresome. Could sleep issues be a problem?)

According to the Monster poll, 82 percent of US respondents reported having sleeping issues; in Britain, that number was 85 percent, and in France, it was 83 percent.

When it comes to efficient and untroubled snoozing, the Italians are seemingly without peer, the Monster survey suggests; 28 percent of workers polled in Italy said that thoughts of resuming the work week on Monday never affected their sleep.

For insomniacs fretting about work day reveille, Monster offers this tip: As you prepare for sleep, "focus on what goes well each day rather than workplace problems."

Monster's parent is Monster Worldwide Inc., a New York-based communications and technology company.

In recent years, Monster has forged agreements with media companies representing more than 200 news publications. In early 2007, Monster disclosed such a relationship with The New York Times Co., whose properties include The Boston Globe and Boston.com.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:14 AM | Comments (0)

Massachusetts gas prices rose 5 cents a gallon

Massachusetts gas prices rose an average of five cents over the last week to $3.19 for a gallon of self-serve regular, AAA Southern New England reported today.

Prices are now pennies away from the state's record high of $3.23 reached in 2005 after Hurricane Katrina, said AAA, which added that the Bay State's current average price is 18 cents below the national average of $3.37.

One year ago, the average price for a gallon of self-serve regular gas in Massachusetts was $2.74, AAA said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:24 AM | Comments (0)

Axcelis Technologies lowers its first-quarter outlook

Microchip component maker Axcelis Technologies Inc. lowered its first-quarter outlook today because of an unexpected drop in income from a Japanese joint venture.

The Beverly company now estimates a loss of 10 to 14 cents per share for the quarter ended March 31, compared with its previous outlook for a loss of 4 to 8 cents per share.

The company made a profit of 3 cents per share in the 2007 first quarter.

Analysts polled by Thomson Financial expect a loss of 6 cents per share for the quarter when the company reports May 7.

It is the second time that Axcelis has had to lower its first-quarter forecast because of weak returns from SEN, a joint venture with Sumitomo Heavy Industries, that makes chip components.

Axcelis adds implants to silicon wafters that change their conductive properties, allowing information to flow between parts of a microchip.

Shares lost 32 cents, or 6.1 percent, at $4.90 in premarket trading after closing at $5.22 on Friday on the Nasdaq Stock Market.

For recent Globe coverage of Axcelis, click here. (AP)

Posted by globebusiness at 9:15 AM | Comments (0)

Insurers put Mass. real estate markets on watch lists

Mortgage lending requirements could become stricter in the Boston area, the South Shore, and Cape Cod.

Three major mortgage insurers have added those areas to their nationwide watch lists of declining real estate markets. The insurers help compensate lenders in case of foreclosures.

Home buyers in areas on the watch lists can face tougher lending standards covering minimum credit scores and down payments.

The lists initially focused on states such as Florida and California where price declines have been more severe than in Massachusetts. But a few insurers have expanded the lists recently to include relatively healthier markets. (AP)

Posted by globebusiness at 9:07 AM | Comments (0)

Dunkin' Donuts teams up with Fenway Sports Group

Fenway Sports Group, a Boston-based sports and entertainment marketing firm, said today it will develop sports marketing programs for Dunkin' Donuts, the Canton coffee-and-baked-goods chain that is embarked on major expansion.

Fenway Sports Group is a wholly owned subsidiary of New England Sports Ventures, which also owns the Boston Red Sox and Fenway Park.

The New York Times Co., parent of The Boston Globe, owns a minority stake in the Red Sox.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:50 AM | Comments (1)

Blue Cross honors Dana-Farber

Blue Cross Blue Shield of Massachusetts, the state's largest health insurer with about 3 million members, said today that Dana-Farber Cancer Institute has been selected as the recipient of its second annual Health Care Excellence Award.

The recognition comes with a $100,000 award, Blue Cross Blue Shield of Massachusetts said.

"One of the ways to improve our health care system is to recognize and support organizations that can guide us to exceptional achievement in creating and implementing innovative programs and partnerships," Blue Cross Blue Shield of Massachusetts chief executive Cleve L. Killingsworth (right) said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 6:55 AM | Comments (0)

April 11, 2008

Akamai's Sagan earned $4.47m in 2007

The chief executive of Web services provider Akamai Technologies Inc. received total compensation valued at $4.47 million, according to a Securities and Exchange Commission filing today.

Today's filing shows Akamai gave CEO Paul Sagan a base salary of $403,651 last year, up slightly from $402,854 in 2006.

Sagan also received a performance-based bonus of $497,362 and stock options and restricted stock valued by the company at $3.57 million on the days they were granted.

Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

Akamai's profits almost doubled in 2007.

The company's net income surged to $100.9 million, or 56 cents per share, from $57.4 million, or 34 cents per share, in 2006. However, its share price fell about 35 percent in 2007.

Akamai, which delivers iTunes content for Apple, signed a deal with Starbucks last year to deliver iTunes to customers using the chain's local wireless networks. (AP)

Posted by globebusiness at 11:42 AM | Comments (0)

Raytheon VP exercises options for 10,000 shares

Raytheon Senior VP and General Counsel Jay B. Stephens exercises options for 10,000 shares

The senior vice president general counsel for aerospace supplier Raytheon Co. exercised options for 10,000 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing Thursday.

In a Form 4 filed with the SEC, Jay B. Stephens reported he exercised options for the shares Tuesday and Wednesday for $29.45 to $29.48 apiece and then sold 16,577 shares the same days for $66.75 to $67.25 apiece.

The stock sale was conducted under a prearranged 10b5-1 trading plan which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material nonpublic information.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

Raytheon is based in Waltham, Mass. (AP)

Posted by globebusiness at 11:38 AM | Comments (0)

United Technologies chair confirms forecast at Tufts

United Technologies Corp Chairman George David said today that is he is confident his company will meet its full-year profit forecast.

The company told investors in February it expects to report full-year profit of $4.65 to $4.85 per share, he said.

"We feel quite comfortable with that," he told Reuters. He said some analysts looked for earnings of $4.86 per share, adding "that's all OK."

He discussed the industrial conglomerate's financial outlook in an interview with Reuters a few hours after rival General Electric Co reported disappointing quarterly results and lowered its outlook for the rest of the year.

David declined to comment on GE's difficulties, but said his company's businesses are meeting their targets.

He was in Medford, Massachusetts speaking at a conference at Tufts University. (Reuters)

Posted by globebusiness at 11:12 AM | Comments (0)

Textron issues bullish forecast

Textron Inc. said today that it expects first-quarter earnings to beat previous expectations, as the industrial conglomerate's other businesses more than offset weaker-than-expected finance segment profit.

The news comes after fellow conglomerate General Electric Co. said challenges in its financial-services divisions hurt first-quarter profit, driving the company to lower full-year guidance.

Textron, which is based in Providence, Rhode Island, previously predicted first-quarter earnings between 75 cents and 85 cents per share. Analysts surveyed by Thomson Financial forecast first-quarter profit of 83 cents per share.

The company also expects its full-year profit to meet or exceed its previous target of $3.75 to $3.95 per share. Analysts currently expect 2008 earnings of $3.93 per share.

Textron shares gained 24 cents to $57.64 in morning trading. (AP)

Posted by globebusiness at 10:57 AM | Comments (0)

LocaModa partners with TouchTunes

LocaModa, a Boston-based technology company that
provides a mobile social platform that connects online networks and out-of-home locations, has partnered with TouchTunes, the largest out-of-home interactive entertainment network.

The two companies plan to work together to extend the TouchTunes experience to mobile consumers and social networks such as Facebook, MySpace, and Twitter.

In addition to extending the on-location experience to social networks, the TouchTunes/LocaModa partnership will allow patrons to use their mobile phones to interact with flat panel screens driven by the TouchTunes jukebox’s media server.

LocaModa’s technology enables people to access and and interact with media in bars, cafes, colleges, public spaces and conferences. TouchTunes Corporation is the largest out-of-home interactive entertainment network, providing innovative solutions to over 30,000 bars, restaurants, retailers and other businesses in North America.
(By D.C. Denison, Globe staff)

Posted by globebusiness at 10:12 AM | Comments (0)

Battery invests $35m in Angie's List

Battery Ventures, which has offices in Boston, has invested $35 million in Angie's List, a Web site that reviews and rates service providers.

Battery joins Boston-headquartered Aquent, as a key investors in the 13-year-old company.

Angie’s List, based in Indianapolis, provides ratings and reviews on local service providers in more than 330 different categories. It currently serves more than 600,000 members in 124 major cities across the United States. Last month, Angie's List began collecting ratings on the health care industry, including reports on doctors, facilities and insurers.

Battery Ventures, with offices in Boston, Silicon Valley and Israel, manages nearly $3 billion in committed capital.
(By D.C. Denison, Globe staff)

Posted by globebusiness at 10:01 AM | Comments (0)

General Electric reports profit drop

General Electric Co reported today an unexpected 6 percent drop in profit, as the slumping U.S. economy and credit crunch drove down profits at its financial, industrial and healthcare units.

Shares of the second-largest U.S. company by market capitalization fell 5.4 percent on the news, dragging down the broader U.S. markets. Due to the size and variety of its operations, GE is regarded as a bellwether of the U.S. economy.

"It's confirmation that we're in a recession," said Jerome Heppelmann, portfolio manager at Liberty Ridge Capital in Berwyn, Pennsylvania.

The company also lowered its earnings forecast for the year, reflecting a slower economy and challenging capital markets.

"These results confirm that the slowdown is widespread and beginning to impact capex (capital expenditures) and longer-cycle businesses," said Stephen Surpless, senior analyst at Cantor Fitzgerald in London.

"While the credit crisis might be nearer to the end than the beginning, according to some, the impact on the real economy is taking place and is unlikely to abate in 2008," he added.

GE-Aviation has manufacturing facilities in Lynn, Massachusetts, Hooksett, New Hampshire, and Rutland, Vermont.

BY THE NUMBERS

GE, which also has media and finance arms, reported profit of $4.3 billion, or 43 cents per diluted share, compared with $4.57 billion, or 44 cents per diluted share, a year earlier. Revenue rose 7.8 percent.

Profit from continuing operations of 44 cents per share compared with analysts' average forecast of 51 cents, according to Reuters Estimates.

The sharpest drop in segment profit came at the conglomerate's financial divisions, with commercial finance down 20 percent and GE Money consumer finance down 19 percent.

Profit at GE's industrial unit, which makes things like lighting and appliances, fell 16 percent and health care was down 16 percent.

Those declines overshadowed a 17 percent rise in profit at the infrastructure unit, which has been boosted by emerging-market demand for heavy equipment like electricity-producing turbines. NBC Universal's profit rose 3 percent.

LOWERS FORECAST

The company cut its full-year profit forecast from continuing earnings to a range of $2.20 to $2.30 per share.

The new full-year earnings forecast, which calls for profit to be flat to up 5 percent, compares with an earlier view of "at least" 10 percent. Many on Wall Street had viewed that as a conservative forecast.

"The extraordinary disruption in the capital markets in March affected our ability to complete asset sales and resulted in higher mark-to-market losses and impairments," said Jeff Immelt, chairman and chief executive, in a statement.

GE shares were trading at $34.75 in premarket trading, down from a $36.75 close on the New York Stock Exchange.

Prior to Friday's premarket trading, GE shares were down less than 1 percent, less of a drop than the 5 percent slide in the Dow Jones industrial average, of which GE is a component. (Reuters)

Posted by globebusiness at 8:55 AM | Comments (0)

Sonoco shuts down Holyoke paper unit

Sonoco Products Co. today announced that it will permanently shutdown its small No. 3 specialty paper machine at its Holyoke, Mass., paper mill. The target shutdown date is June 27, 2008. The closing will affect about 20 workers, the company said.

The Holyoke No. 3 machine produces approximately 30 tons per day of specialty paper stocks used in such products as novelty tickets and book covers.

The shutdown will not affect Sonoco's larger Holyoke No. 1 machine which produces high-strength paperboard used primarily to produce the Company's tubes and cores. Likewise, the shutdown will not impact Sonoco's tube and core converting plant located in Holyoke.

"With markets declining for the kind of specialty paper produced by this small machine, along with rising raw material, energy and other costs, it made it impossible to profitably operate the unit," James Harrell, Sonoco's vice president and general manager, Paper-North America, said in a release.
(By D.C. Denison, Globe staff)

Posted by globebusiness at 8:33 AM | Comments (0)

Diomed sells laser unit to AngioDynamics

Medical technology company Diomed Holdings Inc. said Thursday it is selling its U.S. operations to AngioDynamics for $8 million in cash.

The Andover, Mass.-based company said the sale of its assets includes the varicose veins laser treatment EVLT.

Earlier this month, Queensbury, N.Y.-based AngioDynamics settled a long-standing patent dispute with Diomed over varicose vein laser treatment technology. The deal involved AngioDynamics giving Diomed a one-time payment of $7 million.

The sale of Diomed's unit to AngioDynamics excludes that settlement amount. AngioDynamics has will also pay $3 million in cash for certain assets of Diomed Ltd., the U.K. subsidiary of Diomed.

The deal is subject to bankruptcy court approval. Diomed filed for Chapter 11 bankruptcy protection March 14.

Shares of AngioDynamics rose 21 cents to $13.40 in aftermarket electronic trading, after rising 5 cents to close at $13.19 during Thursday's regular session. (AP)

Posted by globebusiness at 8:32 AM | Comments (0)

Thermo chief's 2007 pay + options = $68 million

The CEO of Thermo Fisher Scientific Inc. received total compensation valued at $3.3 million in 2007, down sharply from the nearly $20 million he earned in 2006, a year when he was granted large stock awards, a securities filing showed Thursday.

Despite the 83 percent drop from the previous year, Marijn Dekkers saw other gains in 2007 while leading the Waltham, Mass.-based maker of scientific instruments and laboratory supplies.

Separate from his annual compensation, Dekkers took in about $65 million last year from exercising stock options, according to the Securities and Exchange Commission filing.

Dekkers, 50, exercised options on more than 2 million shares over 2007, the filing said. The transactions reflected the sharp rise in the company's stock before and after a November 2006 acquisition, which more than doubled the firm's size.

Shares traded at about $25 apiece in April 2005, and have climbed to within the $50 to $60 range most of the past 12 months. In some of the transactions, Dekkers exercised stock options for as low as $19.67 apiece, then sold shares the same day for prices as high as $57.14.

Thursday's filing shows Thermo Fisher Scientific gave Dekkers a base salary of $1.13 million last year, up from $1.04 million in 2006. Dekkers' 2007 bonus was $1.93 million, reflecting strong financial performance in a year when the company's net income rose to $761 million from $168.9 million in 2006.

Dekkers was not awarded any cash incentives last year, and was given $36,496 in "other" compensation -- a category that included a $12,500 car allowance, and $5,000 for medical expenses. Stock and options awards totaled $225,050 last year, in contrast with the $16.6 million he was awarded in 2006, when restricted stock units and options made up the bulk of his total $19.8 million in compensation.

Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

Dekkers has been the company's chief executive and president since November 2002. One of his biggest tasks of late has been overseeing integration of the former Thermo Electron and Fisher Scientific into a combined $10-billion-a-year company with 30,000 employees.

The $10.6 billion deal paired Waltham-based Thermo Electron with Hampton, N.H.-based Fisher Scientific. The company's customers include pharmaceutical companies, government research labs, hospitals and universities, both in the U.S. and overseas. (AP)

Posted by globebusiness at 8:14 AM | Comments (0)

3Com wins patent lawsuit

3Com Corp., which makes networking equipment, said today that it won a $45.3 million award in a patent infringement case.

In the case, in the U.S. District Court for the Northern District of California, a jury found Realtek Semiconductor Corp. infringed some of 3Com's patents.

3Com is pursuing a final judgment from the court that is consistent with the jury verdict.

Realtek could not immediately be reached. (AP)

Posted by globebusiness at 7:57 AM | Comments (0)

April 10, 2008

American will cancel more flights

American Airlines will cancel about 570 of Friday’s flights as the world’s largest carrier continues its weeklong struggle with aircraft safety inspections.

Today, the carrier scrubbed over 930 flights nationwide — including 16 that were to depart from Logan International Airport.

That followed 1,094 cancellations on Wednesday and 460 on Tuesday as the carrier grounded all 300 of its Boeing MD-80s in order to inspect a cord that is lashed around a bundle of wires in the wheel shaft. The inspections have disrupted the travel plans of more than 171,000 American Airlines passengers this week.

MD-80s comprise 45 percent of the airline’s 655-aircraft fleet.

The Federal Aviation Administration requires that the lashes be spaced no more than 1 inch apart and face in the same direction. If installed incorrectly, the cord could chafe the wires and cause the plane to lose auxiliary hydraulic power for the landing gear or spark a fire near the fuel tanks.

The FAA said it will be checking airlines’ compliance with its requirements through June 30, and as a result, travelers can expect more disruptions.

American’s chief executive, Gerard Arpey, told reporters the airline has not found chafed wires in the 100 planes that it had completed inspections on this week.

Arpey refrained from giving a date when American’s schedules would return to normal.
‘‘Obviously, it’s going to take us several more days to get up to speed,’’ he said.

Even when all of the MD-80s, which are the oldest type of aircraft in American’s six-model fleet, are ready to take off again, some passengers may find themselves holding tickets to nowhere.

‘‘The more cancellations you have, the more crews are out of sequence and the harder it is to restart it,’’ said Thomas J. Kinton Jr., chief executive of the Massachusetts Port Authority, which runs Logan.

Yesterday’s 16 canceled departures at Logan prevented about 1,600 passengers from flying to Chicago, Dallas-Fort Worth, or St. Louis. Roughly the same number of American flights and passengers from those three destinations did not arrive at Logan.

Logan has not been affected as much as other airports because it is not a hub. Cancellations at some airports have left scores of travelers stranded in terminals or sent them to nearby hotels for overnight stays the airline is paying for.

This is the second round of mass cancellations by American. Two weeks ago, the carrier canceled flights to inspect the same cord. This week, the airline grounded planes to do a more comprehensive inspection.

While American is offering full refunds or rebooking passengers on its own or its competitors’ later flights, the situation still stinks for travelers.

‘‘I’m quite upset by it,’’ said Drew C. Bililies, president of Alternative Leisure Co., a Bedford tour group catering to disabled adults. Thirteen of his customers paid $1,499 for an all-inclusive, four-day Memphis vacation that was supposed to kick off with a tour of Graceland.

But American scratched their 6 a.m. flight out of Logan. They were lucky to snag seats on a 3 p.m. American Eagle flight, but that required a three-hour layover in New York.

Bililies said he deserves compensation. ‘‘We’re missing a day of fun,’’ he said.
(Nicole C. Wong and Paul Makishima, Globe staff)

Posted by globebusiness at 5:54 PM | Comments (0)

Albany International to shut Mansfield plant

Albany International Corp., of Albany, N.Y., today said it plans to shut down its Mansfield, Mass., plant and move its operations to other plants in Europe and North America.

The closing will affect about 80 employees and is expected to be completed by year’s end, the company said.

Albany International, which provides products and services to numerous industries, said the move is part of an ongoing effort to streamline operations. Affected employees will be offered the chance to relocate, or severance and outplacement assistance.
(AP)

Posted by globebusiness at 5:31 PM | Comments (0)

Gas sales boost BJ's revenue

Natick-based BJ’s Wholesale Club Inc.’s March same-store sales rose 6 percent, boosted by higher gasoline prices.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

Analysts expected an increase of 3.1 percent, according to Thomson Financial, compared with a 5.5 percent rise last year.

BJ’s said gas sales accounted for 3.4 percentage points of the 6-point gain. Gasoline prices have surged to record highs in recent weeks after the price of oil rose past $100 per barrel. Same-store merchandise sales rose 2.6 percent, slower than in the year-ago period. However, food sales rose by about 5 percent, while general merchandise slipped by about 1 percent.

Total sales for the five weeks ended April 5 rose 8.5 percent to $858.1 million, from $790.9 million a year ago. Gas and food sales rose, while general merchandise slipped.

Year to date, total sales are up 8.7 percent to $1.5 billion.
(AP)

Posted by globebusiness at 2:12 PM | Comments (0)

IBM buys Newton's FilesX

IBM Corp. today said it has agreed to buy FilesX Corp., a small storage software company in Newton, for an undisclosed sum.

FilesX, which operates a development lab in Haifa, Israel, and has more than 100 customers in the United States and Israel, specializes in helping businesses and their remote offices protect and recover data residing on Microsoft Windows servers. The company will be integrated into the IBM Software Group and its big Tivoli product line.

The deal, which is expected to close shortly, will be the 10th software acquisition in Massachusetts for IBM, which has nearly 5,000 employees in the state. Worldwide, the Armonk, N.Y.-based technology giant has acquired 54 software companies as it bids to strengthen its market with businesses and other enterprises.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 12:28 PM | Comments (0)

TRC narrows loss

Engineering and construction management company TRC Cos. said today that it narrowed its fiscal second-quarter loss on reduced dividend costs.

For the fiscal second quarter ended Dec. 28, 2007, the company lost $447,000, or 2 cents per share, compared with a net loss of $1.1 million, or 6 cents per share, in 2006.

It recorded dividend and accretion charges of $2.1 million in the 2006 quarter, with no similar expenses in 2007.

Gross revenue fell to $110.9 million from $113.4 million in 2006.

TRC released results from its first and second quarters together while adjusting to a new reporting schedule that moves from the calendar year to a schedule that matches its financial cycle.

For the fiscal first quarter ended Sept. 28, 2007, the company said it lost $87.7 million, or $4.75 per share, compared with a profit of $197,000 or 1 cent per share, in the 2006 period.

The most recent quarterly result includes an $88.8 million charge for loss of goodwill and valuation allowance on deferred tax assets that were not previously reserved. The loss of goodwill mostly relates to companies acquired by TRC in the last 10 years.

Gross revenue rose to $123.6 million from $101.7 million in 2006.

Chief Executive Chris Vincze said the results for the fiscal 2008 first half "reflect the ongoing effects of a company in transition".

TRC's results broke even for the first half of the year excluding the charges, Vincze said.

TRC provides engineering, construction and other management services for commercial, government and industrial customers.

In morning trading, TRC shares declined 43 cents, or 7.6 percent, to $5.20. (AP)

Posted by globebusiness at 12:21 PM | Comments (0)

Millennium sold for $8.8b to Japanese drug firm

Millennium Pharmaceuticals Inc., one of the Bay State's best known biotech companies, is being sold.

Japanese drug marker Takeda Pharmaceutical Co. Ltd. said early this morning it would buy the Cambridge biotech for $8.8 billion in cash, more than 50 percent more than the company's closing stock value Wednesday.

Millennium makes a cancer drug, called Velcade, that is expected to become a multibillion-dollar drug in coming years, and has several more experimental drugs in its pipeline. Takeda is the world's 17th-largest drug maker.

In early trading Millennium shares soared more than 49 percent to $24.43, up $8.08. Stocks in some other biotech companies, including Biogen Idec Inc. in Cambridge and Genzyme Corp., rose more modestly.

Millennium was founded in 1993 by some of the brightest stars in the Boston life sciences world, including Eric Lander, now director of the Broad Institute of MIT and Harvard.

Takeda said it plans to operate Millennium as an independent subsidiary with the same management team and workforce.
(By Todd Wallack, Globe staff)

For previous Globe coverage of Millennium, click here.

Posted by globebusiness at 10:29 AM | Comments (0)

April 9, 2008

FDA: Chemical could taint Lexington firm's drug

Shares of Lexington-based Cubist Pharmaceuticals fell today after regulators said an industrial chemical had been found in the company's antibiotic when used with a certain drug pump.

The Food and Drug Administration said significant levels of a chemical used to make rubber were found in the Cubicin that had been stored in Readymed drug pumps, manufactured by Cardinal Health. Cubicin, which is used to treat skin and blood infections, is the company's best-selling product with sales of $189.5 million in 2006.

Cubist shares lost 82 cents, or 4 percent, to $19.29 in afternoon trading.

The company notified doctors of the contaminant in an April 4 letter which FDA posted to its website today. In the letter, the company recommended "against using Readymed elastomeric infusion pumps with Cubicin until this issue has been addressed."

Exposure to the rubber-making chemical has been shown to cause tumor growth in rats, according to the letter. Cubicin also said the contamination was present only in tests using Cardinal's pumps, not in those with rival I-Flow Corp.'s Eclipse pump. (AP)

Posted by globebusiness at 4:18 PM | Comments (0)

EMD Serono finalizing expansion plans

EMD Serono Inc., which has 750 employees in Rockland and Billerica, is finalizing plans for a significant expansion at one or both of those locations, according to a company spokeswoman.

But the biotech company declined to provide additional details or say when it might publicly unveil the expansion plans. Massachusetts economic development officials also declined comment.

EMD Serono, based in Rockland, is a unit of German pharmaceutical company Merck KGaA.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 3:00 PM | Comments (0)

State to loan $20m for foreclosure rehab

Massachusetts will loan up to $20 million to nonprofit developers to buy and rehabilitate foreclosed properties in the state's largest cities. The funding is part of a new economic package announced today by Governor Deval Patrick.

Community groups have pushed the government to make such funding available, arguing that a growing number of vacant homes are affecting the quality of life in urban areas. Vacant buildings are havens for criminal activity and they tend to reduce the value of surrounding properties, particularly as the vacant buildings deteriorate.

The new state program will focus on foreclosed properties in Boston, Brockton, Lawrence, New Bedford Springfield and Worcester. It is a relatively modest commitment -- even if buildings can be purchased for $50,000, the program would support the purchase of only 400 homes, less than half the number foreclosed statewide in February alone.
(By Binyamin Appelbaum, Globe staff)

Posted by globebusiness at 12:17 PM | Comments (0)

More American flights canceled at Logan

Did you call before you drove out to Logan? You should have.
An estimated 850 flights are expected to be canceled today nationwide, including 17 flights at Logan, mostly to Chicago and Dallas-Fort Worth, affecting 1,700-1,900 customers. Yesterday, American Airlinescanceled about 500 flights -- as many as five at Logan -- of its MD-80 planes to check the bundling of wires in some planes, the same issue that forced both it and Delta Air Lines Inc. to cancel a combined total of more than 700 flights last last month.

Passengers wait at the American counters at O'Hare Airport in Chicago Wednesday morning. (AP Photo)

American has said that flight safety has not been compromised.
The tighter scrutiny on safety checks happening as the FAA has tightened inspections since coming under fire from Congress and others for letting Southwest fly planes that had missed safety check-ups.

Airline spokesman Ned Raynolds said that it was highly likely there would be more cancellations tomorrow but he couldn't give a better estimate.

Bottom line: Got a flight with American? Call before you go.

Posted by globebusiness at 12:01 PM | Comments (0)

TV ratings double for Celtics

The Boston Celtics' success on the court this season has translated into its best television ratings in years.

Comcast SportsNet reported that Celtics viewership has more than doubled over last year. Through the first 69 telecasts, Celtics games have averaged a 3.5 rating (which works out to 80,500 households), compared to a 1.7 rating last season, when the games were televised by Fox Sports New England.

The Celtics so far are 62-15, boasting the best record in the National Basketball Association. The team has clinched home-court advantage throughout the playoffs.

Comcast SportsNet, available to 3.7 million households in New England, plans to telecast six more Celtics regular-season games before the start of the playoffs. TNT, ESPN, ABC, and NBA TV hold the rights to telecast NBA playoff games, though some could be broadcast on Comcast.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 10:26 AM | Comments (0)

Private-equity firm acquires Hosted Solutions

Boston private-equity firm ABRY Partners has acquired Hosted Solutions, a data center and services provider, for $140 million, the company disclosed yesterday.

Since 1989, ABRY said it has completed over $21 billion in investments in more than 500 media and business properties, including Muzak, the well-known music service, and the publisher of daily newspapers in Charleston, W.V. ABRY, which specializes in media and communications, said it typically invests between $10 million to $100 million in companies and has about $2.75 billion in capital under management.

Hosted Solutions, which is based in Raleigh and has operations in Boston, helps maintain and protect customers data and computer systems. The company's clients include PepsiCo Inc., Krispy Kreme Donuts, and the Carolina Panthers football team. An ABRY spokesman said the company will keep its name, management team, workforce and local facilities in place.

“Hosted Solutions operates an incredibly strong business,” said ABRY partner C.J. Brucato in a statement. “They’re a profitable business generating strong revenue today and we see tremendous potential for the business to continue to grow and expand.”
(By Todd Wallack, Globe staff)

Posted by globebusiness at 10:18 AM | Comments (0)

JMP analyst rates AthenaHealth "outperform"

A JMP Securities analyst said AthenaHealth of Watertown will gain revenue as physician practices replace their management systems, and started coverage with a "market outperform" rating.

Constantine Davides said about 10 percent of practices will replace their practice management systems in the next few years. The online systems are used to handle billing, scheduling and patient administration, and Davides said AthenaHealth's athenaCollector system can stand out from other options.

He expects revenue to increase as the athenaClinicals business gains new subscribers, and added that the company has been very successful at retaining customers.

AthenaHealth Inc. shares finished at $23.00 yesterday, and Davides expects them to rise to $28 over the next year. (AP)

Posted by globebusiness at 8:45 AM | Comments (0)

April 8, 2008

Few seek Sam Adams beer refunds, company says

Boston Beer Co., which Monday recalled Samuel Adams beer in bottles that could contain glass particles, said relatively few customers have sought refunds or advice. As of yesterday afternoon, 571 customers had sought help at a call center, the company said, and a website which allows consumers to check bottle codes and request refunds had received only 2,300 visits.

A spokeswoman said it is too soon to say how much the recall would cost Boston Beer Co. It involves different varieties of Samuel Adams brand beer in 12-ounce glass bottles that are marked with the code N35 OI.

To learn more about the recall, consumers can call 888-674-5159 or visit consumerinfo.samadams.com.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 5:49 PM | Comments (0)

State pension falls 4.7 percent in first quarter

The state pension fund balance, which has rocketed upwards in recent years, took a 4.7 percent tumble during the first quarter, shedding $2.3 billion in asset value.

The fund's balance, stung by domestic equity investment losses, decreased to $51.4 billion after hitting $53.7 billion at the end of 2007, according to preliminary year-to-date numbers.

During a Pension Reserves Investment Management Board meeting on State Street, fund staffers attributed the decline to a "very difficult market environment" and said the pension fund's losses were far narrower than the market as a whole. The Standard & Poor's 500 index was down 10.3 percent last quarter.

Through the first nine months of the fiscal year, the pension fund, which is charged under state law with securing an 8.25 percent return each year, has lost 1.63 percent of its value. Staff members said it would take a "miraculous" turn of events for the fund to meets its growth targets by the end of this fiscal year.

The pension board, chaired by Treasurer Tim Cahill, last year voted to sweeten performance bonuses available to staff when the pension fund hits certain investment benchmarks. A board spokeswoman said it was too early to tell whether the performance bonuses would be triggered.

PRIM executive director Michael Travaglini disclosed that the fund had divested $164 million from 11 companies that do business with the Sudanese government, a process mandated under legislation signed into law in November. The companies on the list include Alcatel Lucent, Alstom, China Petroleum & Chemical, Lundin Petroleum, Malaysia Mining, MCSI Behar, PetroChina, Reliance Industries, Schlumberger, Total, and Wartsila.

The law requires PRIM to regularly update the list to determine whether other companies meet divestment criteria or whether companies on the current list change their practices to allow for renewed investment.

Travaglini, who has opposed divestment legislation, said the divestment requirements in the bill had been significantly watered down prior to its passage. "It could have been worse," he said. "The original legislation, at first ... had a much more significant number."

Supporters of the bill argued that divesting from companies that deal with the Sudanese government, widely acknowledged as a sponsor of genocide in its far-flung Darfur region, would send a message that Massachusetts opposed the mass killing. They also said that, although Massachusetts on its own would have little impact on the Sudanese government, the collective divestment of other states and countries would help apply pressure to the North African nation.

Travaglini continued to be openly critical of a bill set for a hearing Thursday that would require the pension fund to divest holdings from companies that do business with Iran.

"I'm not even going to get started," he said. "That's a much broader number in terms of impact."
(State House News Service)

Posted by globebusiness at 5:15 PM | Comments (0)

Boston PR firm to aid O'Charley's rebranding

Regan Communications Group will provide public relations assistance to O’Charley’s Inc., a casual dining restaurant company that has launched a rebranding program.

Project RevO’lution was implemented to upgrade the restaurants physically as well as operationally.

Regan, of Boston, will handle publicity for about 50 O’Charley’s restaurants that are being upgraded.

O’Charley’s, headquartered in Nashville, operates or franchises 364 restaurants under the brands O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks.

Regan already handles public relations for 114 Ninety Nine Restaurants.
(By Ashley Traupman, Globe correspondent)

Posted by globebusiness at 4:49 PM | Comments (0)

Inotek sheds 85 of its 120 employees

Inotek Pharmaceuticals Corp., a Beverly biotech company, said today it has shuttered several international offices, including its manufacturing plant in Israel, and shed 85 of its 120 employees over the past three months.

Despite the cutbacks internationally, Jeffrey T. Walsh, the company's chief business manager, said its Massachusetts headquarters, with 35 employees, is continuing to grow. Walsh said Inotek, which has raised $79 million in venture capital, still has $40 million to continue operating for the foreseeable future, but decided to outsource its manufacturing and narrow its focus.

The company has two drugs in early clinical trials, including one to treat glaucoma and another to treat "oxidative cell damage."
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:31 PM | Comments (0)

Hotline volunteers will answer veterans' questions

The Massachusetts Bar Association will operate a free hotline Wednesday from 5:30 to 8:30 p.m. to answer military veterans’ legal questions.

Volunteer lawyers will take inquiries about any topic, including benefits, divorce, child support, finances, employment, and landlord/tenant issues.

The hotline number is 617-338-0610; try again if it’s busy. Normal phone charges will apply.

The National Veterans Legal Services Program provided training for the volunteers.
(By Sacha Pfeiffer, Globe staff)

Posted by globebusiness at 3:56 PM | Comments (0)

Wrentham Village to add two more stores

Wrentham Village Premium Outlets will soon welcome two new upscale stores:

* Elie Tahari, a clothing and accessories boutique for men and women. It’s been around for more than three decades and has 600-plus US stores, including in Atlanta, Las Vegas, and New York. The new store opens April 15.

* True Religion, a Los Angeles-based premium denim company that sells products for men, women, and kids.

The store sells more than just denim, including shirts, shorts, hoodies, T-shirts, and other clothing items, at such stores as Barney’s New York, Neiman Marcus, Sak’s Fifth Avenue, Nordstrom, Bloomingdale’s, and Urban Outfitters.

The Wrentham True Religion outlet opens sometime this summer.
(By Ashley Traupman, Globe correspondent)

Posted by globebusiness at 3:45 PM | Comments (0)

State to get $3.1m in pollution settlement

Massachusetts is slated to receive $3.1 million for projects to improve the region’s air quality as part of a massive settlement reached last year with American Electric Power, the nation’s largest electricity producer.

The $4.6 billion settlement, one of the largest environmental enforcement pacts on record, resolved allegations by the United States, eight states and citizens groups that the Ohio company’s coal-fire plants spewed toxins into the air, causing acid rain and other pollution that damaged the environment in nearby states.

At the time, the power producer promised to cut pollution at its plants and pay $24 million to eight East Coast states as part of the agreement, but the exact amount earmarked for Massachusetts wasn’t reported. The money can be used on projects to reduce air pollution, including efforts to save energy.

"With sensible planning we will be able to preserve two valuable resources for our citizens; energy and clean air,” said Attorney General Martha Coakley in a statement.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 3:01 PM | Comments (0)

Cabot shuts down W. Va. plant

Boston-based Cabot Corp. has shut down its carbon black plant in Waverly, W.Va., because of changes in the tire manufacturing industry.

Cabot said the plant ceased operations March 31.

Carbon black is used to reinforce rubber. Cabot says it is reducing its production capacity because tire manufacturing is shrinking in North America while growing in China and other countries in the Asian Pacific region and in South America.

Cabot had announced the plant closing in June and said 48 employees would be affected.
(AP)

Posted by globebusiness at 2:31 PM | Comments (0)

Jackpot Rewards removes guarantee of $1m weekly winner

Jackpot Rewards, the Newton online sweepstakes and shopping discount company backed by big-name investors Jack Connors and Peter Lynch will no longer guarantee that someone will win its $1 million weekly sweepstakes.

When the company launched in February, Jackpot Rewards emphasized its weekly guaranteed $1 million drawing -- open to members who paid its $3 weekly membership fee, or to other people who entered the contest by sending in a postcard.

Now, people will have a chance at $1 million each week, but there will be no guarantee that someone wins. The company will offer a guaranteed $1,000 weekly winner, according to chief executive Jim Miller. Miller would not disclose how many members have signed up for Jackpot Rewards.
(By Carolyn Y. Johnson, Globe staff)

Posted by globebusiness at 1:02 PM | Comments (0)

Remington closing firearms plant in Gardner

Remington Arms Co. says it will close its Gardner plant by the end of this year.

The firearms manufacturer said Monday about 200 workers will be affected. Remington said some will move to other positions. Those who lose their jobs will be offered severance and outplacement and referral services.

Company Chief Executive Tommy Millner said in a statement that it was "a difficult decision" but the company believes the consolidation will allow it to be more competitive "in an increasingly demanding global marketplace."

North Carolina-based Remington sells sports weapons as well products for the military, government, and law enforcement. (AP)

Posted by globebusiness at 11:54 AM | Comments (0)

Harris and HP to join with Raytheon to pursue $30m Air Force contract

Raytheon Co. of Waltham said today that communications company Harris Corp. and computer company Hewlett-Packard Co. have agreed to join its team to pursue a $30 million US Air Force contract.

The contract is to move the global broadcast service, or GBS, to a centralized computing center.

Raytheon said the GBS provides wideband Internet protocol broadcasts of video, imagery and other information to support forces on post, in transit and in the military theater. This effort will integrate GBS into future Internet operations.

The contract will be awarded by the Air Force Electronic Systems Command at the Hanscom Air Force Base in Bedford.

Raytheon shares fell 20 cents to $65.96 in morning trading. (AP)

Posted by globebusiness at 11:48 AM | Comments (0)

Nuance to buy medical transcription firm for $363m

Speech recognition software maker Nuance Communications Inc. of Burlington said today it will buy privately held medical transcription company eScription for $363 million.

The purchase cost includes $340 million in cash and $23 million in Nuance stock. Nuance will also assume $37 million in eScription employee stock options. It expects the deal to close in the 2008 third quarter.

In connection with the deal, private equity firm Warburg Pincus will buy 5.8 million shares of Nuance stock at $17.36 per share, an investment of about $100 million. The purchase price is 8 cents, or less than 1 percent, below Nuance stock's $17.44 close in Monday's session.

Nuance says it hopes to streamline clinical documentation with the acquisition and said it expects to save the health care industry more than $1 billion by 2011.

In addition to the outright share purchase, Warburg Pincus will acquire a warrant to purchase 3.7 million shares of Nuance common stock upon the closing of the investment. The warrant has an exercise price of $20.00 per share and a four-year term. The private equity firm also agreed not to sell any Nuance shares for six months from the closing of the deals.

Nuance supplies speech recognition technology as well as digital imaging software.

eScription, based in Needham, sells speech recognition technology designed to recognize medical terms.

Nuance shares rose $1.05, or 6.0 percent, to $18.49 in morning trading. (AP)

Posted by globebusiness at 11:44 AM | Comments (0)

Bottle maker investigates Sam Adams glass woes

Owens-Illinois Inc. said today it is investigating glass bottles it made for a brewery after the brewery's voluntary recall of those bottles.

Owens-Illinois confirmed it made the bottles in the Boston Beer Co.'s recall of select 12-ounce bottles of Samuel Adams beer.

"Notwithstanding references in the Boston Beer Co. recall notice to the bottles being defective, O-I's investigation to date has indicated that the glass containers supplied to the Boston Beer Co. were manufactured to O-I's normal manufacturing specifications and tolerances," the company said in a statement. "O-I will continue to investigate the root cause of the issue, which is currently unknown."

On Monday, Boston Beer said in a news release that its "precautionary recall comes after routine quality control inspections at the company's Cincinnati brewery detected defects in certain beer bottles, manufactured by a third-party glass bottle supplier that might cause small bits of glass to break off and possibly fall into the bottle."

Boston Beer said the suspect bottles come from a plant that supplies about 25 percent of its bottles.

Owens-Illinois shares fell $1.01, or 1.8 percent, to $55.45 in morning trading; Boston Beer was down 1 cent, to $45.40. (AP)

Posted by globebusiness at 11:39 AM | Comments (0)

Bristol-Myers will pay $5m to settle Repligen suit

Repligen Corp. of Waltham said Tuesday that Bristol-Myers Squibb Co. agreed to pay $5 million plus royalties to settle a patent infringement lawsuit for a rheumatoid arthritis treatment.

Repligen's suit, filed in Texas in January 2006, accused Bristol-Myers of infringement based on the sale of its Orencia rheumatoid arthritis treatment.

Bristol-Myers also agreed to pay royalties on the US net sales of Orencia for any clinical indication at a rate of 1.8 percent for the first $500 million of annual sales, 2 percent for the next $500 million of annual sales and 4 percent of US annual sales in excess of $1 billion for each year from Jan. 1, 2008, until Dec. 31, 2013.

Analysts have estimated Orencia sales could eventually reach $1 billion per year.

The settlement also gives Bristol Myers an exclusive worldwide license of certain patent rights of Repligen and the University of Michigan.

"Based on analysts' estimates of US sales of Orencia, we expect total cash receipts from our Protein A business, Orencia royalties, research and development and other income of greater than $30 million for fiscal year 2009, beginning April 1, 2008," Walter C. Herlihy, Repligen's chief executive, said in a statement.

Rheumatoid arthritis affects more than 2 million people in the United States.

A Bristol-Myers spokesman wasn't immediately able to comment. (AP)

Posted by globebusiness at 11:18 AM | Comments (0)

First Marblehead shares sink

Shares of First Marblehead Corp. plunged after a bankruptcy filing by a company that offers financial backing for the student loan services that First Marblehead provides.

The Education Resources Institute filed for Chapter 11 protection in bankruptcy court in Boston late yesterday.

The Boston-based nonprofit, known by its acronym TERI, offers guarantees to cover unpaid private student loans. It guarantees nearly all the student loans that First Marblehead bundles into securities sold to investors in bond markets.

The bankruptcy filing shifts greater credit risk onto Boston-based First Marblehead. The company's shares sank $2.83, or 37 percent, to $4.87 in morning trading.

Meanwhile, First Marblehead says it's trying to find another party to serve as a financial guarantor. (AP)

Posted by globebusiness at 11:13 AM | Comments (0)

April 7, 2008

Papelbon pitches Dunkin' Donuts

Dunkin' Donuts said today that Red Sox pitcher Jonathan Papelbon will be featured in a TV commercial that high-lights a promotion called "Red Sox Win, You Win."

The day after every Red Sox victory between now through June 24, customers will receive a free 16-ounce Iced Coffee or Iced Tea with any Oven-Toasted Flatbread Sandwich or Personal Pizza purchased after 11 a.m. at participating stores in much of New England, the Canton-based chain said.

The Papelbon TV commercial was created by Dunkin's ad agency, Hill Holliday of Boston.

Separately, Dunkin' Donuts said it will offer customers free doughnuts on Tax Day April 15.

There is a catch: Customers must purchase a cup of hot coffee at participating Dunkin' stores to qualify for the complimentary sinker, the chain said.

With a strong presence in the Northeast, Dunkin' Donuts is mounting an aggressive expansion plan to increase its national footprint.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:45 PM | Comments (0)

Microbia is now Ironwood Pharmaceuticals

Microbia Inc., a 10-year-old biotech company based in Cambridge, has changed its name to Ironwood Pharmaceuticals Inc.

The privately held company has raised $231 million in private equity financing and is developing several drugs, including linaclotide to treat irritable bowel syndrome and other gastrointestinal disorders.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 2:06 PM | Comments (0)

Glass particles force Sam Adams beer recall

Boston Beer Co., the Boston brewer of Samuel Adams craft beers, said it is recalling an undetermined amount of beer because of defective bottles that may contain glass particles.

The company said the defective bottles came from a glass company that provides Boston Beer with about a quarter of its glass bottles. The "small grains or bits of glass" were discovered during a quality control operation at the firm's Cincinnati brewery, Boston Beer said in a statement. The problem was confirmed Friday, and was traced to bottles coming from a single manufacturing plant.

The company said it has not received complaints or reports of injury. A spokeswoman, Michelle Sullivan , estimated that the particles of glass are found in fewer than 1 percent of the bottles coming from the problem plant. Only Samuel Adams beers in 12-ounce brown glass bottles are involved in the recall. Potentially dangerous bottles are embossed around the bottom with the code N35 followed by OI .

Jim Koch , founder of Boston Beer Co., said it is the company's first recall since it began in 1984.

"We are disappointed and disturbed by this development, and we are doing everything we can to address the situation," Koch said in a statement. "Brewing great beer is not enough. Because of these bottles supplied to us from an outside vendor, we didn't live up to our drinkers' expectations."

The company said it is contacting wholesalers to recall potentially defective bottles before they reach store shelves. "We think a small percentage is at retailers," said Sullivan.

"While the possibility of injury to an individual consumer is very low, people who bite or swallow a fragment of glass could possibly be injured," the company said in its statement. "Anyone who has consumed beer from an affected bottle and becomes ill, or shows signs of complications, should see a physician immediately."

Consumers who purchased beer in potentially defective bottles are urged to discard the beer and bottles. They can register for a refund online at consumerinfo.samadams.com . They also can call 888- 674-5159 for more information.

The company's local brewery in Jamaica Plain is not affected because it supplies only beer in kegs.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 1:28 PM | Comments (1)

Travaglini: Pension fund can't start bond insurer

The Massachusetts state pension fund cannot and should not start a bond insurer, executive director Michael Travaglini (right) said today.

Travaglini, who oversees the $52 billion Pension Reserves Investment Management Board, said pension funds should not be in the business of insuring securities as California Treasurer Bill Lockyer has proposed.

Lockyer last month said he was exploring the possibility of having state pension funds create a new bond insurer after many established guarantors lost their top ratings due to risky subprime mortgage exposure.

"I am very glad that in Massachusetts we are prohibited by our enabling statutes (from creating a bond insurer)," Travaglini told the Reuters Hedge Funds and Private Equity Summit.

"I'm in the investment business, not the lending business in any way, shape or form. It's certainly not the primary mission of the fund as I see it."

In a diversified economy, there are companies that can play that role much better than pension funds, he added.

Lockyer's idea to set up a bond insurer, which could rival a guarantor started recently by Warren Buffett's Berkshire Hathaway Inc, is still in initial stages.

Travaglini also said that pension obligation bonds that some states have sold to plug in the unfunded liability in their retirement plans is a "bad idea."

That's because pension funds run the risk of owing more than the unfunded liability if the return on funds borrowed with the sale of the bonds does not exceed the interest rate on this debt.

"It's too risky for me," he said.

Travaglini spoke as Connecticut was scheduled to start marketing to retail investors $2 billion of pension obligation bonds to close the unfunded gap in its teachers' retirement fund.

Massachusett' Pension Reserves Investment Management Board is only 80 percent funded, according to Travaglini. (Reuters)

Posted by globebusiness at 1:22 PM | Comments (0)

Fidelity brings short-selling to fund investors

Fidelity Investments today launched its first mutual fund to allow individual retail investors to use a strategy previously available only to institutional clients -- short-selling stocks.

Fidelity, the Boston mutual-fund giant, said its fund will be known as Fidelity 130/30 Large Cap Fund, similar to funds launched at other mutual fund firms. The name refers to the strategy in which 130 percent of the holdings in its portfolio will be invested "long" -- in stocks that the manager expects will rise faster than the market overall. The money to buy the extra shares will be raised by investing the proceeds from "short'' sales.

A short sale is a bet that the price of a security will fall. To sell short, a trader borrows shares and sells them, then buys them back later at a lower price. The shares are then returned to the owner, and the difference in price represents profit. That's the theory, though in practice short-selling can be risky and most mutual fund managers are restricted from investing too heavily in the strategy.

Fidelity's new long-short fund will be managed by Keith Quinton, manager of several other Fidelity funds, including Fidelity Disciplined Equity Fund. In a statement he said the the company has 15 years of experience selling shares short through portfolios available to institutional clients. "Now we're bringing that experience to bear on behalf of mutual fund investors,'' he said.

He cautioned the fund will carry specific risks such as potentially large losses from short sales, and expenses such as interest and dividend expenses on short positions.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 1:15 PM | Comments (0)

Gas prices unchanged in Massachusetts

Gas prices in Massachusetts are holding steady, but remain at their highest point for the year.

A statewide survey released today by AAA Southern New England found an average price of $3.14 per gallon of self-serve regular, unchanged from a week ago.

The auto club says Massachusetts is 19 cents below the national average price of $3.33 per gallon.

But prices remain well above what they were a year ago, when a gallon averaged $2.68 in the state. (AP)

Posted by globebusiness at 11:29 AM | Comments (0)

Thermo Fisher introduces Chinese catalogue

Thermo Fisher Scientific Inc., a Waltham company that makes scientific instruments and laboratory supplies, said today that it has introduced its first Chinese-language catalogue.

Thermo Fisher said its new Fisher Scientific China Laboratory Supplies Guide includes an extensive range of products suited to the needs of customers in research, testing, and processing facilities in China.

"Our objective is to leverage our strong Fisher Scientific brand in China to establish the leading channel footprint in that rapidly growing market," company senior vice president Alan J. Malus said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:14 AM | Comments (0)

Malden approves Verizon's FiOS TV

Malden Mayor Richard C. Howard has granted a cable franchise to Verizon Communications Inc. for its FiOS TV service, Verizon said today.

Howard's action paves the way for the FiOS TV all-digital, fiber-optic network to become available to 22,000 households in Malden, Verizon said, and it brings to 67 the number of Massachusetts communities where FiOS TV is either already available or soon will be.

Headquartered in New York, Verizon delivers broadband and other wireline and wireless services to mass market, business, government, and wholesale customers.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:49 AM | Comments (0)

Imprivata, Fidelis close on financing rounds

Two financing deals of local note were disclosed today.

Imprivata Inc. said it has closed a Series C financing round of $15 million; the Lexington company's OneSign platform helps organizations safeguard enterprise information assets.

The venture capital arm of SAP AG, a German provider of business software, joined local venture firms Polaris Venture Partners, General Catalyst Partners, and Highland Capital Partners in the investment round, Imprivata said.

Separately, Tudor Ventures Group, the Boston-based venture-capital and private-equity arm of Tudor Investment Corp., led a Series B $22-million investment in Fidelis Security Systems, a Maryland company focused on technology that helps organizations protect their brand, intellectual property, and resources by stopping data leakage, Fidelis said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:22 AM | Comments (0)

PerkinElmer partners with French company

PerkinElmer Inc. of Waltham said today it is teaming up with Cerep SA of France to provide custom drug-discovery services to life sciences companies in the business of developing new drugs.

PerkinElmer provides reagents and instruments to life sciences companies; it also makes products to help screen newborns for diseases.

Cerep is a provider of drug-candidate screening and profiling technologies.

The supply and co-marketing agreement between the two companies will give PerkinElmer customers direct access to Cerep's expertise while PerkinElmer will be able to extend its reach into "key drug discovery markets," the companies said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:38 AM | Comments (0)

April 4, 2008

Redevelopment authority names chief of staff

The Boston Redevelopment Authority has hired James M. Tierney as chief of staff and special counsel to the authority's director, John F. Palmieri.

Tierney, who has been special counsel to the director since June 2006, formerly worked for the Boston office of the law firm Holland & Knight LLP. He will serve as Palmieri's primary contact with BRA staff, other city and state employees, and those outside government.

Tierney will help set priorities and city development policies, the authority said today in a statement.
(By Thomas C. Palmer Jr., Globe staff)

Posted by globebusiness at 3:28 PM | Comments (0)

State Street names new head of investment unit

State Street Corp. today named Scott Powers to head its Global Advisors investment unit, bringing in an outsider to deal with a division battered by the credit crunch.

Powers, 48, will leave his current post heading the US operations of British asset manager Old Mutual plc., State Street said.

At State Street Global Advisors, Powers takes a slot previously held by William W. Hunt, who stepped down in January as the company set aside $618 million to deal with problem investments tied to subprime mortgages. Hunt's temporary replacement, James S. Phalen, will return to his job heading international operations for State Street's investment servicing and investment research and trading business.

Global Advisors is the world's largest institutional asset manager with more than 2,900 clients and $2 trillion in assets under management as of Dec. 31.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 12:30 PM | Comments (0)

April 3, 2008

Communities, restaurants ban the bottle

In a collective effort to reduce the negative impact of bottled water, Cambridge, Somerville, and a handful of local restaurants have joined Boston in pledging to switch to tap water for their public drinking supplies. Concerned by the cost, waste, and safety of bottled water, they hope others will follow their lead.

"Bottled water is bad for taxpayers, it's bad for our environment, and it's bad for our public water systems," said Annie Sanders of Corporate Accountability International, a Boston nonprofit group running a national campaign called "Think Outside the Bottle" aimed at persuading cities and restaurants to cancel their bottled water contracts and switch exclusively to public water supplies.

"In reality," Sanders added, "tap water is better for you because it's more highly regulated and most bottled water is tap water anyway."

So far in Massachusetts, three high-profile municipalities have joined the cause. Cambridge canceled its bottled-water contract in January. Boston, which has said it will curtail and possibly eliminate its use of bottled water, is currently auditing its bottled-water usage in municipal facilities. Somerville promised this week to eventually cancel its bottled water contracts, although it first must install the necessary plumbing to make water fountains available in city buildings.

They were joined by a half-dozen Boston-area restaurant: Small Plates in Cambridge, Bella Luna Restaurant/Milky Way Lounge in Jamaica Plain, and Herrell's Ice Cream, T.J. Scallywaggles, Grasshopper, and the Other Side Café in Allston.

But while some restaurants call the move to eliminate bottled water an environmental no-brainer, others say the decision is complicated by an important market reality: Many customers regard tap water with distaste.

"Being in the hospitality industry, it's important for us and the success of our business to provide our guests with what they're asking for, and many people drink exclusively bottled or sparking water," said Leo Fonseca, general manager of Stephanie's on Newbury, which offers still and sparkling water -- in glass bottles, not plastic -- in addition to tap.

"When people are spending money on fine food and fine wine, their perception is that their water is not going to be as good if they don't drink it out of the bottle," he added. "There is just this negative perception of not just Boston city water, but tap water in general."
(By Sacha Pfeiffer, Globe staff)

Posted by globebusiness at 2:50 PM | Comments (0)

Lucky Star joins Hub bus wars

Bargain bus riders don't need to wait until BoltBus launches service on April 24 to travel between Boston and New York for $1 one way. Lucky Star, a five-year incumbent on this ultra-competitive route, said that starting today it, too, will offer one seat per bus for just a buck.

The family-owned Chinatown bus company is caving under new competition from corporate giants Greyhound Lines Inc., which runs BoltBus in several East Coast cities, and Coach USA, which on May 30 will add the Boston-New York route and the $1 fare to its MegaBus subsidiary, which serves nearly 30 cities.

Lucky Star said it isn't sure how long it will be able to maintain this price war - especially with rising gas prices - but it's trying to hang on to its customers.

"How do we all survive?" asked Fu Mei Cheung, vice president of operations at Lucky Star, which runs 22 buses a day between the Hub and Manhatthan.

Lucky Star already matches pioneering competitor Fung Wah Bus Transportation Inc. in pricing each seat on the 57-passenger bus at $15 one-way, which has made it "very hard to maintain the company," Cheung said.

Now, weekday one-way tickets purchased online at www.luckystarbus.com will go for $1 to $15 each, plus a 50-cent transaction fee. The walk-up fare will still be $15 on most buses and $25 on the 2 a.m. departure.

"It will be interesting to see how we are going to make it," Cheung said. "How long are we going to last?"
(By Nicole C. Wong, Globe staff)
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Posted by globebusiness at 2:01 PM | Comments (0)

Executive at IDG promoted to top post

An executive who oversees International Data Group's US technology publications has been promoted to the top job managing the company's global media operations.

Bob Carrigan was named chief executive Boston-based IDG Communications Worldwide today, effective immediately. The 42-year-old has headed IDG U.S. Communications since 2005.

In his new post, Carrigan oversees more than 300 tech magazines and newspapers in 85 countries, including PC World and Computerworld. He's also responsible for more than 450 tech Web sites, as well as tech industry conferences that IDG produces around the world.

IDG is a privately held company with nearly 14,000 employees and 2007 revenue of $3 billion. IDG also owns International Data Corp., a tech research firm best known as IDC. (AP)

Posted by globebusiness at 1:47 PM | Comments (0)

What the ATA bankruptcy means to you

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ATA, which has been in a death spiral for a while, has gone under. The discounter canceled all flights after filing for bankruptcy and posted advisories on its website and at ticket counters.

The troubled airline halted its Logan flights a while ago, but it struck a code-share deal in February 2005 with Southwest, which flies out of Providence, Hartford, and Manchester. This meant you could book flights for either airline from either airline and you could be booked on connecting flights using both.

Confusing, yes?

Now the big question: What does this mean to me? If you recently booked flights through Southwest, either for all ATA service of a combination of the two, SWA is probably trying to reach you right now to rebook. Most of the combination flights would likely involve flights through Las Vegas, L.A., Oakland, or Phoenix to Hawaii. If that's you and you haven't heard from Southwest yet, you can call them at 800-308-5037.

If you booked either a straight ATA flight or a combo through ATA, sit down and pour yourself a drink because you're not having a good day. You no longer have travel plans and you'll have to contact your credit card company for reimbursement.

Southwest officials were still sorting through the wreckage so they weren't sure how many passengers may be affected in the region. But all you care about it whether it's you. So now you know.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 12:59 PM | Comments (0)

Pepper Hamilton moves to larger Boston office

The Boston office of the law firm Pepper Hamilton LLP has just relocated to new digs at 125 High St. - space that is quadruple the size of its previous office at 101 Federal St.

With roots in Philadelphia, 500 lawyers, and offices nationwide, Pepper Hamilton sees Boston as a growth area; the 24,600 square feet of Boston office space can accommodate 35 attorneys, up from the current head count of 11, Boston managing partner Steven R. London said.

Pepper Hamilton, which specializes in such areas as corporate, securities, and tax law as well as intellectual property and patent litigation, decided to open a Boston office in late 2006, partly because some of its clients are private equity firms doing business here.

Citing confidentiality reasons, London declined to identify the clients.

While a slowing economy has put a crimp in the activity of many private equity firms, London sees the plenty of opportunities for an "interdisciplinary" legal team such as his that can help clients do everything from down-sizing to restructuring and recapitalizing.

With those opportunities in mind, he said he plans to hire five to seven additional attorneys in the firm's Boston office this year.

Meanwhile, he's settling into Pepper Hamiltion's new Boston address.

"We're still in boxes," London said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:11 AM | Comments (0)

Vermont's Cabot suggests Passover recipes

The cheese-meisters at the Cabot Creamery Cooperative issued a food alert today to remind Passover celebrants that Vermont dairy products can liven up holiday meals.

Passover, an eight-day celebration commemorating the Exodus, begins later this month.

The Cabot Creamery Cooperative in Cabot, Vt., may be best known for its cheese, but it also claims to have a line-up of culinary experts whose flair for inventive recipes would wow the most finicky of fondue uber-chefs.

Because folks preparing Passover meals must deal with dietary guidelines, Cabot put its best chefs on the case, and the results are "easy and unique recipes" that are "appropriate for Passover," Roberta MacDonald, Cabot's senior vice president of marketing, said in a statement.

For Cabot's recipe for veggie matzo brie (right), click here and type "veggie matzo brie" in the recipe search box. Two suggested ingredients? Cabot Monterey jack and Cabot salted butter.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:06 AM | Comments (0)

Proposed biomass plant in Russell gets an OK

State environmental officials have signed off on a plan to build a wood-burning electrical power plant in the western Massachusetts town of Russell.

The decision clears the way for Russell Biomass to seek final permits for the 50-megawatt, $150 million facility at the site of the former Westfield Paper Mill.

Secretary of Environmental Affairs Ian Bowles approved the final environmental impact report over the objection of some local residents concerned about increased traffic and the potential impact on air and water quality.

The company says the plant will produce safe and clean renewable energy. It hopes to begin construction this fall. (AP)

Posted by globebusiness at 7:13 AM | Comments (0)

April 2, 2008

Lights, camera ... insurance?

Liberty Mutual, the venerable Boston insurance company, is going Hollywood - or at least getting into the production of short online films and made-for-TV movies.

(A video clip from "Mandy & Lester," a short film written and directed by Lena Beug for the Liberty Mutual online short-film project, can be seen above.)

Separate from the online short-film program, Liberty Mutual and the entertainment company NBC Universal announced today a programming partnership that will result in such projects as "Kings," a two-hour movie that is scheduled for airing on NBC and the USA Network during the 2008-2009 TV season.

Plans call for the cast to include actors Ian McShane (right, with wife, Gwen) and Christopher Egan.

"Kings," as well as the online short films, is an outgrowth of the two-year-old advertising campaign that Boston ad agency Hill Holliday created for Liberty Mutual with the theme of: "Responsibility. What's your policy?"

Public response to the ad campaign was swift and enthusiastic, Liberty Mutual senior vice president Stephen Sullivan said; teachers and Sunday school teachers wanted to use the ads' theme in lectures, he said, and Liberty Mutual and Hill Holliday decided to see if there was a way to capitalize on the campaign's feedback.

"The question was, 'How do you move beyond a 30-second TV spot?'" said John Dukakis, a Hill Holliday senior vice president of branded entertainment.

In January, Liberty Mutual launched a website at www.responsibilityproject.com that features several short films that Liberty Mutual commissioned, including "Mandy & Lester" from RSA Productions. The films, which are roughly between three and 11 minutes long, involve the theme of personal responsibility, Sullivan said.

"Kings" has a similar theme.

Why go the movie route?

The insurance market is "enormously competitive," Sullivan said. "And we wanted to come at marketing in a new way."

Of course, it goes without saying that in a world of digital video recorders and short attention spans, advertisers have to figure out ways to get their messages to consumers inclined to zip right past a 30-second TV ad.

In any case, Sullivan said Liberty Mutual has been in discussions with various TV networks since last summer. NBC Universal thought the script for "Kings," a work in progress, was well suited to what Liberty Mutual had in mind, and Liberty Mutual agreed, Sullivan said.

"We made some tweaks around the edges," he said of the "Kings" script.

"We are deeply involved in the funding of the project," he added.

Citing competitive reasons, Sullivan declined to put a dollar figure on Liberty Mutual's investment in the film.

On the Web, meanwhile, Sullivan said the hope is that 17 short films will be available at responsibilityproject.com by the end of the year, up from four now.

According to Hill Holliday's Dukakis, the online films are not about product placement or hard-sell marketing; the goal is to get a "dialogue out there about personal responsibility."

So long as "something in the films align with our theme of personal responsibility," the film makers, he said, have "enormous freedom."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:40 PM | Comments (0)

Yahoo unveils mobile search powered by Cambridge start-up vlingo

At a keynote speech at the wireless industry's tradeshow in Las Vegas today, Yahoo Inc.'s executive vice president of Connected Life, Marco Boerries outlined his vision of the future of mobile search, enabled in part by Cambridge start-up vlingo.

He demonstrated vlingo's voice-recognition technology, which initially will power Yahoo's oneSearch platform, by asking his phone for the best place to play craps in Las Vegas.

"By integrating vlingo's innovative speech recognition technology into Yahoo! oneSearch, we're taking mobile search to the next level and enabling consumers to get the answers they want by simply speaking into thier mobile phone," said Steve Boom, senior vice president of Connected Life for Yahoo, in a statement. Connected Life is Yahoo's mobile products division.

Yahoo led a $20 million investment into vlingo, a venture-backed start-up that provides voice-recognition technology for mobile devices. OneSearch is available on Blackberry mobile devices now, and will be rolled out to other products in the future.

"Every mobile phone that ships today has a great high-speed Internet connection, a bright color screen, good processing power, and good memory. We really believe the mobile internet will be bigger than the [wired] Internet," said vlingo chief executive Dave Grannan.
(By Carolyn Johnson, Globe staff)

Posted by globebusiness at 2:24 PM | Comments (0)

TJX settles with MasterCard over data breach

Framingham retailer TJX Cos. reached a settlement with MasterCard Inc. in which it will pay up to $24 million to banks and other institutions to cover fraud losses stemming from a massive data breach disclosed last year.

TJX, parent of discount retain chains including TJ Maxx and Marshalls, struck a similar deal with rival card network Visa in which it agreed to pay up to $40.9 million. As in that deal, TJX said the costs of its MasterCard settlement are included in the $256 million the company has set aside to pay for computer work and other costs associated with the breach.

TJX said the MasterCard settlement will be valid only if accepted by banks that issued 90 percent of the cards with fraud claims following the breach, which affected as many as 100 million card numbers, a record. In exchange banks would agree not to sue TJX or institutions that processed the charges at its stores.

The deal helps TJX wind down the episode, though it still faces court claims and just last week was criticized by the Federal Trade Commission over past security practices.

In a statement, TJX chief executive Carol Meyrowitz said: “We believe this settlement agreement provides a fair resolution for MasterCard and its issuing banks and look forward to a high level of issuer acceptance. Providing a secure shopping environment for our customers remains a priority for TJX. Beyond the many millions of dollars we have spent to add significant security to our computer system, we are installing security measures which exceed those of many other retailers and current industry requirements.”
(By Ross Kerber, Globe staff)

For previous Globe coverage of the TJX data breach, click here.

Posted by globebusiness at 2:09 PM | Comments (0)

American Superconductor receives $18 million order

American Superconductor Corp. said today that it has received an $18 million order for wind-turbine electrical systems and components from Beijing-based Sinovel Wind Corp.

American Superconductor, which is located at the former Fort Devens military base in Central Massachusetts, will deliver the products over the next 15 months. The parts will be installed in three-megawatt turbines that have been developed by American Superconductor's wind-power subsidiary.

American Superconductor shares rose $1.23, or 5.1 percent, to $25.20 in morning trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 12:41 PM | Comments (0)

Big Monotype Imaging shareholder will sell shares

Monotype Imaging Holdings Inc.'s biggest shareholder plans to sell almost a third of its stake in the text imaging technology developer, the Woburn company said today.

Monotype's biggest shareholder is TA Associates Funds; TA Associates is a private equity investment firm with offices in Boston.

In a Securities and Exchange Commission filing, Monotype said shareholders are selling 6 million shares and have granted the underwriters options to buy up to an additional 900,000 shares.

J.P. Morgan Securities and Banc of America Securities are underwriting the sale, with William Blair, Canaccord Adams, Jefferies and Needham as co-managers.

TA Associates Funds plans to sell 5.2 million of its 17.1 million shares. Jonathan M. Weeks and A. Bruce Johnston, who serve on Monotype's board, are managing directors at TA Associates. TA Associates owns a little less than half of the company.

Monotype's fourth-biggest shareholder, D.B. Zwirn & Co., plans to sell all of its 764,800 shares, which represent a stake of about 2 percent in the company. D.B. Zwirn, which is managed by Daniel Zwirn, earlier this year planned to liquidate $4 billion of its investments because clients were withdrawing their money. (AP)

Posted by globebusiness at 11:53 AM | Comments (0)

Sirtris wins orphan drug status for drug candidate

Sirtris Pharmaceuticals Inc. of Cambridge said today that the Food and Drug Administration has granted orphan drug status for resveratrol in the treatment of MELAS syndrome.

MELAS is a progressive and fatal disorder with no known treatments, and seizures, dementia, impaired muscular function, and neurodegeneration can be observed as the disease progresses, Sirtris said.

The Orphan Drug Act rewards companies that develop drugs for rare diseases by giving them seven years to sell each new treatment without competition from other manufacturers; orphan drug status is often granted early in the drug development process, and long before a drug is granted FDA approval for marketing, to give companies a financial incentive to move ahead with their work.

Sirtris is also looking at resveratrol, a SIRT1 activator found in red wine, for other potential uses such as treatments for diseases related to aging, including Type 2 diabetes.

In January, Sirtris said it hopes to bring its first drug to market in 2012 or 2013, and that drug could be a drug candidate called SRT501, a concentrated form of resveratrol, for treating Type 2 diabetes.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:37 AM | Comments (0)

Boston Scientific said lawsuit is dismissed

Boston Scientific Corp., the Natick company that makes medical devices such as stents (right), said today that a federal judge in Indiana dismissed a lawsuit brought by former shareholders of Guidant Corp., which Boston Scientific bought in 2006 for $27 billion.

The former shareholders alleged that the defendants, several of Guidant's former directors and officers, had breached their fiduciary duties in selling shares that they allegedly knew were artificially inflated; the former directors and officers sold stock ahead of a recall of Guidant products.

In making the deal to acquire Guidant, Boston Scientific beat out Johnson & Johnson, the New Jersey healthcare giant, in a high-profile bidding war.

The combination of Boston Scientific and Guidant was part of a strategy that aimed to make Boston Scientific the world's biggest maker of heart devices; one key product category of Boston Scientific is stents - wire meshed tubes used to keep open arteries that have been unclogged during medical procedures.

At the time of the merger, Guidant was selling $1.6 billion worth of implantable defibrillators a year.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:09 AM | Comments (0)

LoJack slashes guidance citing falling new car sales

LoJack Corp., the Westwood company that makes vehicle-tracking devices, slashed its guidance yesterday for 2008 due to declining new car sales.

The company now expects earnings of 75 cents to 85 cents per share on revenue of $213 million and $218 million. It previously projected earnings of $1.10 to $1.20 per share on revenue of $232 million to $239 million. Wall Street projected a profit of $1.15 on revenue of $233.2 million, according to a Thomson Financial poll of analysts.

Chief Executive Richard T. Riley blamed the shortfall on a drop in new car sales in the first quarter, implying that conditions in the auto market may take longer than expected to improve.

"The acceleration in the decline of new car sales in the first quarter, announced manufacturing cutbacks on the part of many of the auto manufacturers and concern expressed by several of the large auto retailers, now lead us to believe that the challenges in the domestic auto industry will not improve in the second half of the year, as we originally planned," he said.

He added that unit volumes will continue to be strong in the company's international division.

The company said it expects a profit of 4 cents per share in the first quarter and 20 cents for the second quarter.

Analysts polled by Thomson Financial expect earnings of 25 cents for the first quarter and 30 cents for the second quarter.

LoJack shares rose 10 cents to close at $12.74 yesterday on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 8:09 AM | Comments (0)

Massachusetts ranks high as a "cyberstate"

The high technology industry in Massachusetts added 5,100 net jobs, an increase of 2 percent, in 2006, the most recent year for which data is available, and there were 87 high tech workers out of every 1,000 private-sector workers in the Bay State, the second highest concentration in the United States.

Those findings were contained in a report issued today by the American Electronics Association, the trade group that goes by AeA; the title of AeA's report is Cyberstates 2008: A Complete State-by-State Overview of the High-Technology Industry."

Virginia was tops in the category of having the highest concentration of high-tech workers, with 91 high-tech workers for every 1,000 private sector employees.

Other Massachusetts findings in the AeA's 11th annual Cyberstates report: The state remained in sixth place in regards to total high employment, with 242,700 workers and a total payroll of $23 billion, the fifth highest cyberstate payroll in the nation.

These workers contribute knowledge to designing and making products such as the one shown at right from EMC Corp., the Hopkinton company that makes data storage products.

Massachusetts workers had an average salary of $94,770, which is 79 percent more than the state's average private sector wage of $52,798, said the report, which added that Massachusetts ranks fourth nationwide in research-and-development spending on a per capita basis and second in venture capital investments with $3.5 billion.

One down-side: Massachusetts lost 18 percent of its high-tech work force, or 52,600 jobs, between 2001 and 2006, the report said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:43 AM | Comments (0)

April 1, 2008

Staples gets financing for Corporate Express offer

Staples Inc., the world's largest office-products supplier, said today that it has received $3 billion in financing for its $3.67 billion offer for Corporate Express NV, though the Dutch office-supply wholesaler has rejected the offer.

Staples of Framingham said the financing, along with cash reserves and an existing revolving credit facility, are enough to finance the unsolicited buyout offer of 7.24 euros per share. Last month, Corporate Express said that offer was too low.

The $3 billion credit agreement was arranged by Lehman Brothers Inc., Bank of America, and HSBC Bank USA.

Staples shares rose 92 cents, or 4.2 percent, to $23.03 during afternoon trading on the Nasdaq Stock Market. The stock has traded between $30.05 and $48.49 during the past 52 weeks. (AP)

Posted by globebusiness at 3:28 PM | Comments (0)

Coakley says auto insurance website may mislead

Attorney General Martha Coakley said today that a Division of Insurance website intended to help motorists choose auto insurance under the state's new competitive system is "potentially misleading."

The site, mass.gov/autorates, uses general information entered by users to provide an estimate of the range of rates available. But Coakley said it usually does not point motorists to the company offering them lowest rate. She urged Insurance Commissioner Nonnie S. Burnes to make improvements to the site to make it more useful.

Burnes said in a statement, "We have offered to meet with the attorney general's staff this afternoon to better understand their concerns, and will continue to work with them to ensure that Massachusetts consumers have access to the information they need to make informed auto insurance decisions."

Under the state's old system, auto insurance rates were regulated, resulting in nearly uniform prices. As of today, insurers are allowed to compete on price and features.
(By Jeffrey Krasner, Globe staff)

Posted by globebusiness at 3:03 PM | Comments (0)

Fenway bartender seeks Sox support on tips

A Fenway Park bartender is urging Red Sox players to support a lawsuit filed on behalf of ballpark food-service workers who allege that Fenway's concessionaire, Aramark Corp., pockets some of the tips and service charges meant entirely for the workers.

The bartender, Michael L. Hayes, said in a letter faxed to the team's administrative offices yesterday that he was inspired to write to them by last month's protest by Red Sox players, who threatened to boycott a road trip to Japan if coaches and staff did not receive $40,000 appearance fees for the trip; the matter was ultimately settled, and the Red Sox went on to Tokyo.

As of this afternoon, the Sox had not responded to Hayes's letter, his lawyer said. Attempts by the Globe to seek comment from the Red Sox were not immediately successful.

Hayes is a plaintiff in a class-action lawsuit filed against Aramark and the Red Sox in February in Suffolk Superior Court.

Aramark of Philadelphia said it does not comment on pending litigation, a spokeswoman said.

A copy of the letter that Hayes sent to the Red Sox was provided to the Globe by Hayes's lawyer, Shannon Liss-Riordan of the Boston law firm Pyle, Rome, Lichten, Ehrenberg & Liss-Riordan, P.C.

In the letter, Hayes wrote that he is seeking public support for the food workers' lawsuit and the intervention of the Red Sox players, staff, ownership, and fans.

Hayes wrote, "I hope that the Red Sox respond as quickly and decisively to this issue, on behalf of food service workers who love working near our championship team at Fenway Park, as they did for their hard-working and deserving coaches."

"We're hoping that the Red Sox will make this right," Liss-Riordan added during a phone interview.

Through Liss-Riordan, Hayes declined a request to be interviewed.

"He only wants to speak through his letter and through me," she wrote in an e-mail.

Liss-Riordan's firm has filed similar suits in the past, including a recent suit on behalf of a Somerville barista who alleges that the coffee giant Starbucks Corp. wrongly required him to share tips with shift supervisors.

The firm won substantial jury awards from Hilltop Steak House in Saugus and the Federalist restaurant in Boston; the firm also negotiated a settlement with the New England Patriots and Gillette Stadium.

The New York Times Co., the corporate parent of The Boston Globe, owns a 17 percent stake in the Red Sox.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:34 PM | Comments (1)

Mac-Gray buys Automatic Laundry for $116 million

Laundry management company Mac-Gray Corp. said today that it bought Automatic Laundry Co. Ltd. for $116 million.

Mac-Gray of Waltham paid $106 million in cash and $10 million in unsecured notes for Automatic, which is based in Denver. Mac-Gray said it estimates that Automatic is the fourth-largest laundry-facilities contractor in the nation.

Automatic had sales of about $65 million in 2007, while Mac-Gray had sales of $295.9 million.

The deal will allow Mac-Gray greater access to key markets, including Denver and Phoenix, the company said in a statement.

Mac-Gray shares was up 17 cents to $11.67 in afternoon trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 2:16 PM | Comments (0)

Judge expands injunction against Fremont

A state court barred Fremont Investment & Loan from selling some subprime mortgages in its existing loan portfolio or transferring the right to service loans, as part of the Massachusetts Attorney General's lawsuit against the California lender.

The attorney general's office today announced the decision, which was granted yesterday by Suffolk Superior Court Justice Ralph Gants.

Attorney General Martha Coakley (right) in October sued Fremont, alleging it engaged in predatory lending and deceptive sales practices when it sold subprime mortgages statewide.

In February, Gants issued a preliminary injunction barring Fremont from proceeding with foreclosures in the state.

Coakley's office filed a request for an emergency expansion of that preliminary injunction after Fremont said it would sell servicing rights for 290 Massachusetts mortgages to Carrington Mortgage Services, the state said.

The court permitted the Carrington deal to proceed but said no other sales were permitted; Carrington and the attorney general agreed that Carrington would give the state 45 days' notice of foreclosures on Massachusetts loans.

"Lenders cannot escape responsibility for their illegal conduct," Coakley said in a statement, "simply by selling off their loans or servicing rights."

Fremont's attorney in Boston did not immediately return a call for comment.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 1:21 PM | Comments (0)

Arnold expands its duties for Ocean Spray

Boston ad agency Arnold said today it is expanding its 10-year relationship with Ocean Spray Cranberries Inc.

Arnold has been creating TV ads for Ocean Spray for more than a decade. Now the agency said it will also develop all online advertising for Ocean Spray as well as sports marketing initiatives through Arnold's partnership with TrinityOne Sports on Ocean Spray's behalf.

Arnold said its early digital marketing efforts for Ocean Spray includes the launch of Cranergy, the cooperative's first line of energizing juice drinks.

With a headquarters campus that straddles Lakeville and Middleborough, Ocean Spray is an agricultural cooperative owned by about 700 cranberry and citrus growers.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:04 PM | Comments (0)

BioTrove files to sell shares to public

BioTrove Inc. of Woburn, which makes systems used to analyze genetic information and chemical compounds, plans an initial public offering of common stock, according to a Securities and Exchange Commission filing today.

BioTrove did not disclose the expected size or price range of the IPO, but indicated the offering price may total up to $75 million. The company, which currently employs 70 people, noted that the offering price was estimated solely to calculate its registration fee and may change.

BioTrove's technologies are used to detect and measure DNA and RNA, which transmit genetic information inside cells, as well as chemical compounds and proteins.

BioTrove plans to use the net proceeds of its IPO to further develop its OpenArray and RapidFire product lines, to build its operating infrastructure and for general corporate purposes, including general research and potential acquisitions.

In 2007, BioTrove's loss widened to $19.5 million, after preferred dividends, from $12.5 million in 2006. Revenue grew to $4.8 million, from $2.7 million. The company said it expects to incur losses for the near future.

BioTrove also noted that it is working to correct material weaknesses in its internal control over financial reporting.

Piper Jaffray and Lazard Capital Markets are serving as the IPO's lead underwriters. Robert W. Baird is also underwriting the offering.

BioTrove plans to list its shares on the Nasdaq Stock Market under the symbol "BTRV."

Posted by globebusiness at 12:03 PM | Comments (0)

Embattled Talbots plans to open some new stores

Struggling apparel retailer Talbots Inc. unveiled a strategic plan today that includes opening 35 plus-size Talbots Woman stores over the next five years.

Other components of the strategic plan include inventory and cost control measures, said the Hingham company, which perhaps may best be known for the classically styled clothing it designs for middle-age women; Talbots also markets the J. Jill women's clothing brand.

With the economy slumping and many women opting for more casual attire, Talbots has been scrambling.

Just over two weeks ago, the retailer reported that it lost $171 million in the final quarter of its fiscal year when sales fell nearly 8 percent.

In January, Talbots disclosed plans to exit the children's and men's apparel's business and slash 5 percent of its work force.

Today Trudy F. Sullivan (right), who took over as chief executive and president last year, said the company's strategic review provides it with an opportunity to significantly improve profitability.

Sullivan noted that Talbots has "strengthened our senior management team with a number of key executive appointments, revamped Talbots and J.Jill merchandising and marketing strategies," and exited "non-core underperforming concepts."

Other measures include making its higher-priced Talbots Collection merchandise more widely available and a program to open more outlet stores.

Talbots said it expects revenue growth of 3 percent in its fiscal 2008 and it added that fiscal 2008 earnings from continuing operations are expected to be in the range of 47 to 52 cents per diluted share.

In morning trading on the New York Stock Exchange, Talbots shares were up nearly 6 percent, or 64 cents, to $11.42.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:18 AM | Comments (0)

National Grid, union reach agreement

The union representing about 145 workers at National Grid's call center in Northborough yesterday reached agreement on a three-year contract, avoiding a threatened strike against the utility. The agreement was reached hours before the contract expired at midnight. Union members had authorized a strike last week.

The agreement, which still must be ratified by members in a vote scheduled for Monday, includes a 9 percent wage increase over three years, the establishment of a safety committee and protective language against outsourcing, the union said.
(By Robert T. Gavin, Globe staff)

Posted by globebusiness at 10:59 AM | Comments (0)

Genzyme unveils Irish expansion plans

Cambridge biotechnology company Genzyme Corp. announced plans today to expand its manufacturing and research facilities in Ireland.

The Irish government said it was offering confidential assistance to subsidize the $200 million expansion of Genzyme's operations in the southeast city of Waterford.

Genzyme, set up its first manufacturing facility in Waterford in 2001 and plans to hire another 170 people, boosting its Irish work force to more than 600.

The company said it plans to build a new production line for soft-gel capsules, expand its existing plant for filling medicine vials, and adding lab and office space.

The expansion in Ireland represents "a ringing endorsement of the positive experiences we have had there," said Mark Bamforth, senior vice president of corporate operations and pharmaceuticals.

Genzyme specializes in making drugs to treat rare genetic disorders, kidney disease and cancer and to help organ-transplant recipients. It employs more than 10,000 worldwide.

Ireland, a country of 4.2 million, is a major European hub for drug development and production. Most of the world's biggest drug companies have manufacturing and research and development operations here that employ about 25,000 people.

Trade, Employment and Enterprise Minister Micheal Martin noted that half of all foreign corporate investments to Ireland so far this year have come from pharmaceutical and biotechnology companies and constitute "a crucial component of Ireland's economic landscape."

The Genzyme move was the second major foreign investment this year for Waterford, a city known internationally because of its hand-cut crystal factory. Last month the Israeli generic drugmaker Teva Pharmaceutical Industries Ltd. announced a $100 million plan to expand its Waterford campus and boost its work force from 650 to 815. (AP)

Posted by globebusiness at 9:39 AM | Comments (0)

Mass. business confidence level fell in March

Confidence among Massachusetts employers dropped 2.8 points in March to a monthly reading of 47.4, its lowest level since May 2003 when the Bay State was struggling to emerge from a recession.

The monthly business confidence index is calculated by the Associated Industries of Massachusetts, or AIM, a group that represents the state's employers; a reading of 50 on the index indicates a neutral outlook, while a reading below 50 indicates a negative outlook.

In the March survey, 43 percent of respondents said that a recession was already underway.

The March reading was the fifth month-to-month drop in a row.

"We are seeing credit-induced problems spread through the economy with severe effects on both consumer confidence and business confidence," Fred Breimyer, regional economist for the Federal Deposit Insurance Corp. and a member of AIM's board of economic advisors, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:08 AM | Comments (0)

Analyst upgrades Akamai on strong growth forecast

A Piper Jaffray analyst upgraded Akamai Technologies Inc. after a survey pointed to likely strong growth in 2008.

Analyst Aaron M. Kessler moved his rating on the Cambridge company to "Buy" from "Neutral" and kept a $34 price target.

A survey of more than 1,000 streaming media professionals indicated bit rate growth of 83 percent in 2008, compared with 71 percent in 2007. Akamai's technology helps transmit data across the Internet. Apple Inc.'s iTunes is a client.

Kessler said the slowing economy's impact on Akamai will be "immaterial" because revenues are tied to Internet traffic, not e-commerce, and consumers will likely continue to demand Internet video.

Shares, which trade on the Nasdaq Stock Market, rose $1.34, or 4.8 percent, to $29.50 in premarket trading this morning. (AP)

Posted by globebusiness at 8:45 AM | Comments (0)

Local commercial office market is holding steady

Two new reports offered some reassuring news about the Greater Boston commercial real estate market for research space and office towers.

Despite a faltering national economy, leasing fundamentals held steady in the Greater Boston office market, Boston real estate firm Colliers Meredith & Grew said in a first-quarter report.

The vacancy rate remained flat since year-end 2007, at 14.3 percent, and down from 16.3 percent at the end of the first quarter a year ago, the report said.

In a Real Estate Market Intelligence Monthly report, William P. Barrack, managing director of Jones Lang LaSalle's brokerage group, wrote: "Boston has less exposure to the subprime lending industry than other metro areas and should be able to weather the storm due to healthy employment growth in technology, consulting, and legal services. The other bright spot for Boston is the lack of new supply in the office market, which will keep vacancy rates in check."

Jones Lang LaSalle is a Chicago-based real estate money management and services firm with a big presence in Greater Boston.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:24 AM | Comments (0)