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May 30, 2008

SEC settles with Analog Devices for $4.5 million

Norwood chipmaker Analog Devices Inc. and its chief executive agreed to settle charges they backdated stock option grants from at least 1998 through 2002, the Securities and Exchange Commission said in a statement today.

Neither the company nor its chief executive, Jerald Fishman, admitted or denied wrongdoing, the SEC said. The parties agreed to pay a total of $4.5 million in penalties and other payments.

Stock options are rights to buy shares of a company in the future at the closing price on a certain day, and were widely used by technology companies in the 1990s under old accounting rules that made them cheaper to issue than other forms of compensation. But since 2005 academic studies have suggested many award dates were manipulated to benefits executives and other company insiders at the expense of shareholders.

That was also the case at Analog, the SEC claimed in papers released today, calling the company's backdating "a fraud on Analog's shareholders'' that gave Fishman and other insiders undisclosed compensation.
(By Ross Kerber, Globe staff)

Posted by bdinardo at 2:58 PM | Comments (0)

Staples stores will soon rent DVD movies

Staples Inc., the Framingham-based office supplies retailer, confirmed today that it will begin offering a limited selection of DVD movie rentals at its US stores in mid June.

"A new in-store 'no-return' DVD rental service, called Flexplay, will let customers rent the latest movie titles without having to return them to the store," a Staples spokeswoman wrote in an e-mail. "Ideal for business travelers and busy small business owners on-the-go, Flexplay will offer a fresh selection of hit movies for viewing anytime, anywhere, and uses a patented technology that erases the DVD after 48 hours of opening the inner package. Customers can safely recycle the DVDs with their other plastics."

According to its website, Flexplay Technologies Inc. of Atlanta is a developer and a supplier of limited-life optical media technology; Flexplay time-limited DVDs offer unlimited, perfect quality DVD playback in any standard DVD player, but only within a pre-set viewing window that begins when the use opens the sealed Flexplay DVD package.

(At left, a movie currently available in the Flexplay format.)

Shortly after the viewing period elapses, the Flexplay DVD becomes unplayable and can be safely recycled or discarded, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:02 PM | Comments (0)

Housing woes will ripple through economy for years, Boston Fed president says

New England should expect high levels of foreclosures to continue for years even under relatively favorable circumstances, said Eric S. Rosengren, president of the Boston Federal Reserve Bank.

Rosengren, addressing the New England Economic Partnership meeting in Boston today, said Boston Fed researchers examined the real estate crash of the early 1990s. They found that even though foreclosures peaked in 1992 they remained at high levels for most of the rest of the decade.

The current situation, however, is perhaps more worrisome than the ‘90s. The region has experienced high foreclosure rates similar to the ‘90s even though the economy is much stronger, Rosengren said.

Unemployment in Massachusetts for example is about half the peak jobless rate of the ‘90s recession of 9.1 percent.

“Declining housing prices alone did not cause very elevated foreclosures,” he said. “It was significantly compounded by an economic shock such as the loss of a job.”

Today’s high foreclosure rates are likely the product of relaxed lending standards that drove the recent housing boom, Rosengren said. As a result these borrowers are even more susceptible to financial setbacks because they took on so much debt.

Many of the loans made in recent years required little or no down payments, Rosengren said. Instead, traditional down payments were replaced by secondary or “piggy-back” loans, Rosengren said.

These loan structures make the mortgage mess even more difficult to clean up, Rosengren said. Typically the primary and secondary loans were packaged and sold as securities to investors. In many cases the primary and secondary loans are held by different groups of investors making it even more difficult to modify troubled loans to prevent foreclosures.

Meanwhile, a popular type of secondary loan -- the home equity line of credit -- is experiencing a sharp rise in delinquencies, another sign housing woes are infecting broader consumer credit. Equity lines of credit are typically used to finance home improvements and major purchases, such as cars. Delinquencies among these loans, which represent about one-third of residential mortgages held by banks, are exceeding those of the early ‘90s, Rosengren said. Other consumer loans, particularly in parts of the country hardest hit by the housing bust, are also experiencing rising delinquencies.

Ultimately, these increasing delinquencies put more banks at risk, not just those with large holdings of mortgage-backed securities. That could worsen the credit crunch that is contributing to the nation’s economic downturn. “While small- and medium-sized businesses have not generally experienced significant problems with credit availability to date,” Rosengren said, “further deterioration in housing markets, if it occurs, could carry over and begin to impact lenders who serve such borrowers.”
(By Robert Gavin, Globe staff)

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

CVS executives are acquitted of corruption charges

PROVIDENCE, R.I. - Two former CVS executives were acquitted today of bribing a Rhode Island state senator for legislative favors, dealing a blow to the federal government's probe into corruption in the Statehouse.

A jury deliberated for about 90 minutes before finding John R. Kramer and Carlos Ortiz not guilty of 23 counts of bribery, mail fraud, and conspiracy.

Kramer held hands with his lawyers as the verdict was read, while family and supporters sitting in several rows in US District Court cried with relief or smiled.

US Attorney Robert Clark Corrente said the jury's finding would not stop the ongoing probe into influence peddling in the legislature.

"If anyone thinks we're going away, they're wrong," he said. "We thought the evidence justified a conviction. The jury didn't. That's the way the system works."

Prosecutors accused the former vice presidents at the Woonsocket-based pharmacy chain, now known as CVS Caremark Corp., of paying former state Sen. John Celona to influence legislation on the company's behalf, then giving him a sham $1,000-a-month consulting contract. He was hired in 2000 and paid $45,000 over the next three years from the company's political contributions account.

Celona, who already admitted guilt and is in prison, testified as a lead witness for the government. He is serving a two-and-a-half year prison sentence and testified as part of a plea agreement that gave him to get a shorter prison term in exchange for cooperating with the government.

Lawyers for the two men said Celona repeatedly lied on the witness stand. They said Celona did valuable public relations work for the company, including visiting senior centers to talk up CVS services and regularly inviting Kramer on a public access TV show he hosted to promote CVS charitable events.

The company said in a written statement that it had long believed Kramer and Ortiz did nothing criminal.

"We are pleased for these two men and their families that this long and painful ordeal has ended," the statement said.

Mike DeAngelis, a CVS spokesman, said he would not comment on whether the men would get their jobs back. They have been on paid administrative leave.

The trial was the second stemming from a broad federal probe into influence-peddling at the Statehouse. Celona also testified in the first trial two years ago, in which two former hospital executives were convicted of hiring Celona to promote their legislative agenda.

Those convictions were overturned earlier this year because of flawed jury instructions. (AP)

Posted by globebusiness at 1:11 PM | Comments (0)

Taunton gives OK to Verizon FiOS TV

Taunton Mayor Charles Crowley has granted a cable franchise to Verizon Communications Inc. to offer its FiOS TV service to Taunton residents, Verizon said today.

The mayor’s authorization brings to 71 the total number of Massachusetts communities where FiOS TV is or will soon be available, Verizon said.

According to Verizon, its FiOS fiber-optic television service offers a better-quality picture, more high-definition and on-demand programs, and more reliable service than services offered by rivals.

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 11:40 AM | Comments (0)

Menino kicks off housing fair for first-time buyers

Mayor Thomas M. Menino said today that record foreclosures in Massachusetts should not stop people from buying their first homes.

Menino appeared this morning at a fair at City Hall Plaza for first-time homebuyers. The fair was organized by the city, as well as Mass Housing, a quasi-state agency that provides mortgages to first-time buyers, and the Massachusetts Association of Realtors.

The mayor said "poor lending practices" by subprime mortgage companies caused the foreclosures and should not scare people from buying their first homes. "That should not stop hard-working people who want to buy houses in the city."

Mass Housing provides loans with below-market rates for Boston houses costing up to $428,000. To qualify, a one- or two-person household must have an income below $94,300.

Menino said he purchased the Hyde Park home he still lives in for $33,500, even though his father advised against it because interest rates were going down. "Interest rates did go down," the mayor said, "but home prices went way up. I am very glad I bought the house."

Real estate agents and MassHousing officials will be at booths in the plaza today until 3 p.m. Agents around the city are planning open houses around the city this weekend for homes that are within Mass Housing's price limits.
(By Kimberly Blanton, Globe staff)

Posted by bdinardo at 11:35 AM | Comments (0)

Stuggling housing market will drag on local economy

Slumping home prices in Massachusetts won't completely recover until at least 2013, according to a new economic forecast.

The forecast, released today by the New England Economic Partnership, a nonprofit group, said housing prices will continue to slide through this year, and recover only slowly. By the end of 2012, the state's median home price still will not have regained its 2005 peak, according to the forecast, which only goes through 2012.

The struggling housing market will remain a drag on the state's economy over the next few years, although the state's technology and knowledge-based services, such as consulting and scientific research, will keep Massachusetts from slipping into recession.

Growth, however, will be anemic, with Massachusetts projected to add just over 3,000 payroll jobs this year and about 10,000 in 2009. Over the next five years, job growth will average less than a half-percent a year.

In addition to housing, the weak, possibly recessionary, national economy will hurt growth in Massachusetts. Mark Zandi (right), chief economist at Moody's Economy.com in West Chester, Pa., said its unclear whether the US has entered a recession but "risks to the economy remain decidedly on the downside." The national economy is expected to continue to shed jobs in coming months, Zandi said. The US has lost jobs in each of the past four months.

In Massachusetts, job growth is expected to by led by education and health services, which includes hospitals and universities, and information, which includes software, will lead job growth through 2012, expanding at am average rate of 2 percent a year. Construction and manufacturing, however, will shrink at an annual rate of 1 percent during this period.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 8:30 AM | Comments (0)

Slow economy could help lift Internet ad spending

A sluggish US economy is likely to accelerate the migration of advertising dollars from traditional media to the Internet, according to a report titled "US Internet Advertising 2008-2012 Forecast and Analysis: Defying Economic Crisis."

The report is from IDC, a Framingham-based provider of market intelligence.

When the economy slows, often one of the first things that a company cuts is its advertising budget, but during this stretch of tough times, "Internet advertising in the United States will continue to grow fast even as the current economic woes will lead to a contraction in ad spending overall," IDC said.

From now until 2012, Internet advertising will grow about three-and-a-half times as fast as advertising at large, and IDC said it thinks overall Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012.

"The Internet will go from the number 5 medium all the way to the number 2 medium in just five years, making it bigger than newspapers, bigger than cable TV, bigger even than broadcast TV, and second only to direct marketing," IDC said. "Video advertising will be the principal disruptor of Internet advertising over the next five years by attracting the most new marketing dollars. Its revenue will grow sevenfold from $0.5 billion in 2007 to $3.8 billion in 2012."

"What will also drive this trend is that consumers are starting to realize that, as opposed to TV, Internet video lets them watch what they want, when they want, and increasingly also where they want," Karsten Weide, IDC's program director for digital media and entertainment, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:19 AM | Comments (0)

NStar building earns gold LEED rating

NStar, a Boston company engaged in the energy delivery business, said it has earned a gold LEED certification for a corporate office building in Westwood.

LEED stands for "Leadership in Energy and Environmental Design," and the designation is awarded by the US Green Building Council. A nonprofit organization committed to expanding sustainable building practices, the council uses the LEED rating system to encourage and accelerate the global adoption of such practices.

A supporter of energy efficiency and renewable energy projects in the region, NStar said it is now one of only three companies in Massachusetts to meet the rigorous standards of a LEED Gold certification for existing buildings.

NStar said it made such environmental and energy-saving enhancements to the Westwood building as installing high-performance fluorescent lamps and new air-handler controls to its ventilation system.

Landscaping improvements resulted in reducing the amount of water used for irrigation by replacing grass with native vegetation, revising the watering schedule, and "piloting a new, organic lawn maintenance program," NStar said.

NStar also said it implemented preferred parking for alternative-fuel vehicles and added an additional bike rack to encourage more environmentally friendly commutes by employees.

NStar transmits and delivers electricity and natural gas to 1.4 million customers in Eastern and Central Massachusetts, including more than 1 million electric customers in 81 communities and 300,000 gas customers in 51 communities.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:48 AM | Comments (0)

Sox win sports business honor

The Boston Red Sox have added another honor to their World Championship 2007 season; last night, the Sox were also hailed as the "professional sports team of the year" at the inaugural Sports Business Awards in New York.

The awards were presented by sister publications SportsBusiness Journal and SportsBusiness Daily.

(At right is a Globe photo of Sox owner John Henry.)

Commenting on the award to the Sox, SportsBusiness Journal said in its online edition: "The Boston Red Sox did more in 2007 that just win their second World Series in four years and show that their previous win was more than mere curse-busting fluke. The Red Sox became baseball's gold standard operation."

The Sox were also cited for coming up with finding new ways "to pack fans into Fenway Park," the online story noted.

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 7:22 AM | Comments (0)

May 29, 2008

Volvo Ocean Race is set to stop in Boston

The Volvo Ocean Race will make Boston's Fan Pier its sole North American stopover next year, Fan Pier's owner confirmed today.

That owner is developer Joe Fallon of the Fallon Co., who with financial partners Massachusetts Mutual Life Insurance Co. of Springfield and Cornerstone Real Estate Advisers LLC of Hartford has ambitious development plans for Fan Pier, a 21-acre site on the South Boston waterfront.

(Photo at left shows Fallon aloft over Fan Pier.)

As for the Volvo Ocean Race, it is scheduled to start in Alicante, Spain, and finish in St. Petersburg, Russia, according to press release from Fallon's public relations firm. Spanning 37,000 nautical miles and stopping in 11 ports around the world, the race is expected to take nine months to complete.

"Two weeks of festivals and local events are planned for the beginning of May 2009 to celebrate the arrival and departure of the Volvo Ocean Race, Boston’s maritime history, and the sport of sailing," said the press release, which added, "The entire stopover facility including berthing for the seven-boat fleet, race village, entertainment complex, and haul-out area will be accommodated on a five-acre Volvo Ocean Race zone within the Fan Pier site."

Earlier this month, one of the boats scheduled to participate in the race, the Puma Racing Team's Il Mostro (the Monster), took a spin in Boston's harbor. A Globe photo of Il Mostro, which is 70-feet long, is at right. Puma has its North American headquarters in Greater Boston.

Fallon’s development plans for the Fan Pier site include a five-star hotel, offices, designer boutiques, restaurants, and luxury condominiums with panoramic views of the Boston skyline and the harbor, the release also noted.
(By Chris Reidy, Globe staff)

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

Movie studio developers looking for a new site

The developers of a proposed $300 million movie studio in Plymouth are looking for a new site after land title problems stalled their plans.

The project was originally planned for 1,000 acres of town-owned land off Route 25 near the Bourne Bridge.

Studio development coordinator William Wynne says Plymouth Rock Studios is now looking at nine alternate sites, all in Plymouth County, seven within Plymouth itself.

Developers have proposed a 1.5-million-square-foot movie and TV studio that would include 14 sound stages, two lots for outdoor sets, a special effects studio, an arts school, stores, restaurants, a performing arts center, athletic fields, a hotel, and a movie theme park.
The goal is to have the studio open by 2011.
(AP)

Posted by globebusiness at 2:07 PM | Comments (0)

Fidelity's Lange: Stocks are near "important bottom"

US stocks could be close to an "important bottom" as moves by the central bank and the government to spur the economy are likely to work, the manager of Fidelity Investments' best-known Magellan fund said.

"One rule of thumb I've found useful is that actual risk in the stock market is typically inversely proportional to perceived risk. Judging by that maxim, I think we could be close to an important bottom in stock prices," Harry Lange said in a commentary on Fidelity's web site posted today.

Lange, who is managing the $40.5 billion Magellan since 2005, said the US Federal Reserve's rate cuts and the federal government's $100-billion tax rebates over the next few months would boost consumer spending.

"It might take some time for these measures to kick in, but I think they should eventually have the desired effect," he said.

US stocks are up from their mid-March lows but are still down for the year. The S&P 500 index is up 10.1 percent since mid-March but is down 4.4 percent so far in 2008.

Privately owned Fidelity of Boston is the world's biggest mutual fund company, managing about $1.5 trillion in total assets. A Fidelity spokesman said Lange was not immediately available for comment.

On crude oil prices, Lange said they would move higher longer term because of rising demand from China and India as well as declining production.

"There are trends stoking that demand that are not going to go away any time soon. For example, in the Chinese city of Beijing, over 1,000 cars a day are being registered, all of which will add to the demand for gasoline," he said.

"Those drivers have not experienced gas prices at significantly lower levels, as many of us have in the United States, so I think they'll be less likely to rein in their spending even if gasoline prices move higher," Lange added. (Reuters)

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

Mandarin opening set for October

Mandarin Oriental Hotel Group, the upscale international hotel chain, said today that its Boston hotel and condominium complex will open in October.

Mandarin Oriental, Boston, on Boylston Street in Boston's Back Bay had been scheduled to open in July. But a fire broke out in April on the fourth floor, causing smoke damage that required contractors to restore a handful of its 148 hotel rooms and its 16,000-square-foot spa and fitness center for condo owners and hotel guests.

While the fire was contained, custom-made stonework, cabinets, and carpets had to be reordered for the Mandarin, which will be the city's most luxurious hotel.
(By Kimberly Blanton, Globe staff)

Posted by bdinardo at 1:43 PM | Comments (0)

Conn. AG says pharmaceutical firm inflated prices

Connecticut Attorney General Richard Blumenthal is suing the nation's largest pharmaceutical distributor on allegations it illegally inflated wholesale drug costs.

Blumenthal says the scheme by San Francisco-based McKesson Corp. resulted in Connecticut consumers and state-funded health care programs paying millions of dollars more than they should have for many brand-name drugs, including Lipitor and Prevacid.

The lawsuit filed yesterday in Massachusetts federal court accuses McKesson of violating federal racketeering and state consumer protection laws.

A message seeking comment was left for a McKesson spokesman.

McKesson denied similar allegations made in a lawsuit filed last week by the city of San Francisco. (AP)

Posted by globebusiness at 12:54 PM | Comments (0)

Boston Scientific facility wins LEED certification

Boston Scientific Corp., the Natick medical-device maker, said today that its Marlborough facility has received LEED certification from the US Green Building Council.

LEED stands for "Leadership in Energy and Environmental Design," and the council, a nonprofit organization committed to expanding sustainable building practices, uses the LEED rating system to encourage and accelerate the global adoption of such practices.

Boston Scientific said its 500,000-square-foot campus in Marlborough houses its Endosurgery Group.

Steps taken to win LEED certification included the "installation of a heat-reflective insulated roof that reduces cooling requirements, a state-of-the-art ventilation system that precisely delivers heating and cooling where needed, and low-flow plumbing fixtures to decrease water usage," the company said.

 Boston Scientific also said it "used recycled building materials where possible, and arranged for more than 95 percent of the project's construction waste to be recycled, both of which minimized environmental impacts from demolition and renovation work."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:53 AM | Comments (0)

Unveiling of lobster sneaker is set for Saturday

The Hub is about to get its own Nike sneaker in an iconic red lobster coloration.

That's the word from a publicist for Pilot, a Boston design studio that worked on the project.

According to the publicist, Oregon sneaker giant Nike Inc. approached Concepts, an "urban wear" store in Cambridge, and Nike's idea was to release a limited edition sneaker called the Concepts Lobster Dunk.

Concepts plans to begin selling the $150 sneakers Saturday, the publicist said.

According to a press release heralding the arrival of a "Boston-centric sneaker," the sneaker seeks to evoke the spirit of the "seafood heritage of New England."

The first 200 pairs, the press release added, will come "equipped with a poster, lobster claw rubber band, T-shirt, and condiment box (replete with lobster shell cracker, fork, bib, wet nap, and 'butter' shoelaces ..."

Pilot's publicist said that Nike had worked earlier on city-centric sneaker for New York.

And what Big Apple icon served as the inspiration for those tony plimsolls?

According to the Pilot publicist, it was the pigeon.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:34 AM | Comments (0)

MIT buys life sciences buildings

The Massachusetts Institute of Technology has purchased four life-sciences buildings in Cambridge for $90.5 million, a broker involved in the transaction said today.

The broker is Colliers Meredith & Grew, a Boston commercial real estate company, and it said the seller was a private family trust.

The four buildings are 185 Albany St., 195 Albany St., 148 Sidney St., and 149 Sidney St.; collectively, they have just under 150,000 square feet of space, Colliers Meredith & Grew said. (The above photo, supplied by Colliers Meredith & Grew, is of 149 Sidney St.)

The firm added that the properties are 100 percent leased to four tenants: MIT, Cubist Pharmaceuticals Inc., Shire Pharmaceuticals, and Acceleron Pharma Inc.

“With this acquisition, MIT recognized the attractiveness of this investment opportunity, given the portfolio’s diverse rent roll of dynamic life science tenants,” Joe Flaherty, executive vice president of Colliers Meredith & Grew, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:01 AM | Comments (0)

State Street says personal data have been stolen

Financial services firm State Street Corp. today said that the personal data of some employees and customers of Investors Financial Services was stolen from a vendor's facility, but there is no evidence that data have been used.

Boston-based State Street acquired Investors Financial Services, a provider of investment services to hedge funds, in July 2007.

Customers and employees of Investors Financial Services are being notified of the data breach, and State Street set up a page on its website to provide customers and employees more information.

State Street said it will provide those with data stolen free credit monitoring services for two years. (AP)

Posted by globebusiness at 8:33 AM | Comments (0)

Gas prices will shrink Father's Day gift budgets

Dad could be getting a cheaper necktie as a Father's Day gift this year.

With gas and food prices rising, consumers are likely to cut back on Father's Day spending this year, the National Retail Federation, a trade group of merchants, said today.

(At right, famous TV dad Ward Cleaver sports some nifty neckwear.)

"Dad takes a back seat to gas and food costs" is the title that the group gave to its consumer survey on Father's Day spending trends this year.

The survey predicted that consumers plan to spend an average of $94.54, compared with last year’s $98.34; total spending is expected to reach $9.6 billion, the federation said.

In a statement, federation president and chief executive Tracy Mullin offered some Father's Day gift-giving advice: "When it comes to dad, a simple greeting card and family dinner really goes a long way.”
(By Chris Reidy, Globe staff)

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

Mass. foreclosure deeds rose 187.5 percent in April

Massachusetts foreclosure deeds "soared to their highest recorded level in April," the Warren Group, publisher of Banker & Tradesman and local real estate data, said today.

Foreclosure deeds rose 187.5 percent in April, from 464 in April 2007 to 1,334, said the Warren Group, which added that there has not been more than 1,334 deeds recorded in a single month since the firm began tracking deeds in 2005.

Deeds recorded in the first four months of the year are up 152.2 percent, from 1,650 last year to 4,161 this year, the firm also said.

“The Massachusetts foreclosure mess is just not getting better,” Timothy Warren Jr., chief executive of the Warren Group, said in a statement. “Thousands of homeowners are entering the foreclosure process every month, and about one-third of them are losing their homes. It’s staggering to see how the numbers have exploded in the past three years.”

Petitions to foreclose, the first step in the foreclosure process, rose 66 percent in April to 3,327 this year, the highest number of deeds in any month since the firm began recording such data in 2005, the Warren Group said; petitions recorded year-to-date rose 46.3 percent to 12,335.

The Warren Group did find a bright spot: Auction announcements seemed to stabilize somewhat in April.

"After two years of monthly increases that sometimes hovered above 200 percent, announcements increased only 7.2 percent in April, from 1,647 last year to 1,765 this year," the Warren Group said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:42 AM | Comments (0)

Akamai issues new Internet report

The president has the State of the Union address, and now Akamai Technologies Inc. has its "State of the Internet Report."

Akamai, a Cambridge company that provides services designed to accelerate and improve the delivery of content and applications over the Internet, today announced the release of its inaugural "State of the Internet Report," with plans to issue new reports quarterly.

Beginning with the January to March 2008 time period, Akamai said its reports will include data on the origins of attack traffic, network outages, and de-peering events, as well as a look at broadband connectivity by geography; Akamai will also use the reports to document trends seen in this data over time.

So what did Akamai document in its first report?

During the first quarter, Akamai said it observed attack traffic originating from 125 unique countries around the world. China and the United States were the two largest attack traffic sources, accounting for some 30 percent of this traffic in total. Akamai said it observed attack traffic targeted at 23 unique network ports, and many of the ports that saw the highest levels of attack traffic were targeted by worms, viruses, and bots that spread across the Internet several years ago.

The inaugural report is available for download by clicking here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:22 AM | Comments (0)

May 28, 2008

Evergreen Solar might expand to Asia

Evergreen Solar Inc., of Marlborough, expects to be profitable in the first quarter of 2009 and is considering expanding into Asia under a plan to dramatically boost capacity, its chief executive, Richard Feldt, said today.

The company last month reported a first-quarter net loss of $25,000, or break-even on a per share basis, compared with a loss of $6.2 million, or 9 cents per share, a year earlier.

Evergreen’s new photovoltaic solar cell manufacturing plant — stretching the length of more than three football fields — opens in June at the former Fort Devens and will be capable of producing 80 megawatts of wafer cells and panels a year.

Evergreen has signed a new long-term sales contract with Germany’s Ralos Vertriebs GmbH, worth about $750 million for panel deliveries, bringing its contractual backlog to about $1 billion.

The panels, to be delivered beginning in 2008 and extending through 2013, would be manufactured at Devens.

The company has yet to identify an Asian country to base a plant. A rival, SunPower Corp, announced this month that it would build a plant in Malaysia capable of producing more than 1,000 megawatts of cells per year.

Evergreen Solar’s thin-film solar products require less of the costly silicon used to make traditional solar cells and panels, allowing it to carve out a niche as a tight global market for silicon constrains capacity expansion in the industry.

But a surge in solar shares is stoking concerns over lofty valuations. Evergreen’s stock price jumped 134 percent from the start of 2007 to the end of the year. California-based SunPower soared 253 percent in the same period, and Colorado-based Ascent Solar Technologies jumped 785 percent.

Evergreen Solar shares closed 6.2 percent higher at $11.26 today. But the shares are still down 35 percent so far in 2008.
(Reuters)

Posted by globebusiness at 8:25 PM | Comments (0)

Papa Gino's inks extension with Entercom

The radio station operator that owns both WEEI-AM and WRKO-AM said today that Papa Gino's Holdings Corp. will continue its sponsorship of portions of the Red Sox Radio Network.

WEEI and WRKO currently split radio broadcasts of Red Sox games and they are part of the the Red Sox Radio Network.

Papa Gino's, which operates both namesake pizzerias and the D'Angelo Grilled Sandwiches chain, will also have a presence on Boston Celtics broadcasts throughout the play-off run and continuing next season, said the stations' owner, Entercom Communications of Pennsylvania.

As part of the agreement regarding Sox games, D’Angelo will present the “Starting Nine” before each game on the Red Sox Radio Network, and the “Inside Pitch” pre-game segment will be sponsored by Papa Gino’s, Entercom's New England unit said.

Headquartered in Dedham, Papa Gino’s Holdings Corp. includes 375 company owned and licensed Papa Gino’s pizzerias and D’Angelo sandwich shops located throughout New England.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:47 PM | Comments (0)

Fidelity to parents: Start saving early for college

New research from Fidelity Investments finds that parents of high school seniors expect to have just 13 percent of the estimated $100,000 needed to fund a four–year college education, the Boston mutual funds giant said today.

Additionally, parents anticipate that student loans will cover 17 percent of their child’s total college expenses, "yet loans are projected to become more difficult to secure and may carry higher interest rates and less favorable terms," noted Fidelity, a leading provider of 529 college savings plans as well as a provider of tools and financial guidance to parents looking to invest in their children's education.

“As college tuitions continue to rise year after year, financial aid and loans can be part of the overall savings strategy, but it should not be a substitute for starting to save early and often in a tax–advantaged account, like a 529 plan,” Joe Ciccariello, vice president of college planning at Fidelity Personal & Workplace Investing, said in a statement. “In fact, our research shows that parents of children ages 15–18, who currently utilize a 529 plan, have significantly more savings – and are on track to cover almost half of college expenses.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:36 PM | Comments (0)

American cancels service to San Diego

And so the cuts begin. American says it will cancel its daily Boston-San Diego service Sept. 3. The struggling carrier also says it will halt New York-London Stansted as of July 2, Chicago-Honolulu on Jan. 5, and trim American Eagle service in September to 33 flights, from the normal winter schedule of 55 daily departures.

These reductions are all part of the carrier's plan to reduce its schedule by as much as 12 percent and that of its regional Eagle service by as much as 11 percent. American detailed all this about a week ago -- at the same time it dropped the bomb about charging passengers $15 for even a first checked bag.

Be forewarned. This is just the beginning. News of more cuts will continue to trickle out.

If you are planning travel in the fall, you might do well to start making those plans soon. Decent fares and available seats will not be easier to come by as time passes.
(By Paul S. Makishima, Globe staff)

Posted by bdinardo at 1:27 PM | Comments (0)

A close-to-home vacation may help keep your job

A leisurely vacation in the south of France? Forget about it. It's time to bid adieu to any hope of a two-week trip to the Riviera and say, "Hello, Six Flags."

Such is the wisdom that may be gleaned from a report out today from Challenger, Gray & Christmas Inc., a global outplacement consulting firm.

With gas prices getting close to $4 a gallon and with job insecurity rampant, Americans may want to consider shorter vacations close to home, Challenger, Gray & Christmas said.

"The twice-a-year week-long vacation, which has already supplanted the once-a-year two-week vacation as the staple of annual American leisure time, may now give way to the shorter but more frequent long weekend - three- and four-day getaways - as it becomes increasingly difficult for American families to afford longer vacations, both monetarily and professionally," the firm said in a release titled, "Will There Be a Vacation Season?"

John A. Challenger, chief executive of the firm, added in a statement: “As workers become more concerned about job stability, their vacation requests are likely be for fewer days and will include the caveat that they will check e-mail and be available for work calls. Those who are out-of-touch for a week or more will be remembered, and not in a good way, particularly if some type of crisis arises during the absence."

So take that BlackBerry to Six Flags. After all, Six Flags Inc. recently announced that its theme park in Agawam has lowered its main-gate price.

Six Flags New England said its "new family-friendly main gate ticket price" is $39.99, a $10 reduction from the 2007 season and the lowest price since 2004.
(By Chris Reidy, Globe staff)

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

Natus Medical closes Sonamed acquisition

Natus Medical Inc., a California provider of medical devices for newborn care, said today that it completed the acquisition of privately held Sonamed Corp. for $9 million.

With the acquisition, Natus gains Waltham-based Sonamed's products that are primarily used to test for hearing loss in newborns, such as the Clarity Screener (right).

Shares of Natus fell 27 cents to $20.99 in midday trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 11:48 AM | Comments (0)

Boston Scientific completes CryoCor buyout

Natick medical-device maker Boston Scientific Corp. said today that it completed the $17.6 million buyout of rival CryoCor Inc. as part of a move to further develop treatments for irregular heart beats.

The buyout deal, for $1.35 per share, was announced April 16. Meanwhile, a group of shareholders filed a lawsuit earlier in May, seeking to block the deal. Boston Scientific did not comment today on the status of that lawsuit.

The acquisition follows a development agreement between the two companies to pursue therapies for atrial fibrillation. That agreement involved developing a console to deliver cryo energy to a cryo balloon catheter developed by Boston Scientific.

Shares of Boston Scientific added 4 cents to $13.48 in morning trading on the New York Stock Exchange. CryoCor is based in San Diego and is now a subsidiary of Boston Scientific. (AP)

Posted by globebusiness at 11:38 AM | Comments (0)

Verenium is starting up a cellulosic ethanol plant

Verenium Corp. of Cambridge said today that it is starting up a research ethanol plant that runs on agricultural waste and wood products instead of corn.

The demonstration-scale plant in Jennings, La., is designed to run on cellulosic feedstocks such as stems and leaves, which are also known as "nonfood biomass," the alternative energy company said.

The plant, which uses specialty enzymes and Verenium's proprietary technology, has a 1.4 million-gallon-per-year capacity.

The company aims to begin construction in the middle of next year on a 30 million-gallon-per-year cellulosic ethanol plant.

Verenium shares rose 2 cents to $2.39 in morning trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 11:29 AM | Comments (0)

Boston Scientific comments on patent verdict

Natick medical device maker Boston Scientific Corp. issued a statement this morning following an order yesterday by a federal jury to pay $250 million to another company for patent infringement.

Boston Scientific said in its statement: "Boston Scientific has raised a number of defenses that were not considered by this jury but will be heard by the District Court on July 31.  If those defenses are successful, the jury's verdict will be set aside."

Boston Scientific added: "If those defenses are not successful, the company plans to seek to overturn the verdict in post-trial motions before the District Court and, if necessary, to appeal to the US Court of Appeals for the Federal Circuit in Washington, D.C.  The company is confident it will prevail on appeal because it believes the jury verdict is unsupported by both the evidence and the law."

Yesterday a federal jury in Texas ordered the company to $250 million to Medtronic Inc., a Minnesota maker of heart-rhythm devices, for infringing patents on catheters used to install stents and break up blockages.

The judge in the case has the option of increasing the award to as much as $750 million.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:54 AM | Comments (0)

Eastern Insurance plans to buy Anderson Insurance

Eastern Insurance Group, a Natick subsidiary of Eastern Bank, said it plans to acquire Marshfield-based Anderson Insurance Services Inc.

Anderson specializes in musical instrument insurance as well as offering auto, life, home, boat, annuities, and business insurance, Eastern Insurance said.

Terms of the agreement are not being disclosed, an Eastern spokesman said.

When completed, the acquisition will mean that Anderson customers will have "access to a broader range of products and services," Anderson chief executive Peter Anderson said in a statement.

Eastern Bank of Boston says it is the largest independent, mutually owned commercial banking franchise in New England, with $6.8 billion in assets.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:38 AM | Comments (0)

Galvin issues scam warning

Massachusetts Secretary of State William F. Galvin is warning consumers about a scam that offers the promise of winning a $250,000 sweepstakes but seems to be a scheme to obtain personal financial information.

Galvin indicated that he was prompted to issue the warning following reports to the Securities Division of his office by people who said they have received letters with a $4,620 check in them with instructions to call a “service tax” agent and provide financial information.

The check, which is supposed to be used to pay a “non-resident government service tax,” appears to be "fake," Galvin's office said.

The current version of the scam claims to come from Newfoundland, and it announces a “compensation draw” for the “Sweepstakes Association of North America,” Galvin's office said.

"Unsolicited notices like this should always raise an immediate red flag.” Galvin said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:14 AM | Comments (0)

May 27, 2008

Hearing will examine small business energy costs

US Senator John F. Kerry is scheduled to chair a field hearing titled "The Rising Costs of Energy: Challenges and Opportunities for Small Businesses" in Pittsfield tomorrow.

Michael Supranowicz, president and chief executive of the Berkshire Chamber of Commerce, is expected to testify about the "high cost of electricity in Berkshire county and how it's eating away at small businesses' bottom line," Kerry's office said in a statement.

The statement noted that the average price for regular gas in Pittsfield is $3.99 per gallon.

In its latest survey, AAA Southern New England noted that the average price statewide of a gallon of self-serve, regular unleaded was $3.90.

Kerry, a Massachusetts Democrat, is holding the hearing in his capacity as chairman of the Senate Committee on Small Business and Entrepreneurship.

One topic for discussion will be new and existing programs that can help small businesses to address rising energy costs and to create "green jobs," Kerry's office said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:22 PM | Comments (0)

Borders launches new retail website

Borders Group Inc. is returning to online retailing after seven years paired with Amazon.com, but analysts say it will be a challenge for the nation's second-largest bookseller to compete with established Web retailers.

Borders today launched a new retail website, and Endeca Technologies Inc. said it was among the firms that helped Borders in developing the site.

According to Endeca, its technology aids information-based problem solving across a variety of business processes, including e-commerce.

The move comes as Borders, which has said it may put itself up for sale, has lost market share both to online retailers and to discounters such as Wal-Mart Stores Inc. amid a difficult economic climate in the United States.

It's a long shot, analysts say, in an environment where people are spending less and Amazon.com rules.

"Amazon just dominates," said Fred Crawford, managing director at turnaround consultant AlixPartners who has studied consumer attitudes toward major booksellers. "Amazon is nearly unassailable."

In 2001, Borders abandoned its money-losing online business, turning it over to Amazon. Under that arrangement, Borders.com took shoppers to a site partnered with Amazon, while a Web site for its stores allowed shoppers to check inventories and reserve items.

Seattle-based Amazon says it doesn't comment on the strategies of other companies and didn't have any comment on the end of the Borders partnership.

Today's launch of Borders' new Web site comes more than two months after the Michigan company announced it may put itself up for sale. Just last week, Barnes & Noble Inc. confirmed it put together a team to study the feasibility of a deal.

In an e-mail, an Endeca spokeswoman wrote: "Endeca’s information access capabilities are key components of Borders’ new, integrated, cross-channel customer experience - bringing unique, in-store benefits to Borders online store while bringing the features and advantages of the new Borders.com site into Borders more than 1,100 stores via in-store kiosks." (AP)

Posted by globebusiness at 1:27 PM | Comments (0)

IMF chooses MIT professor as chief economist

The International Monetary Fund said today that Olivier Blanchard, an economics professor at the Massachusetts Institute of Technology, would become its chief economist as of Sept. 1.

Blanchard, who serves on advisory panels for the Federal Reserve Banks of New York and Boston, replaces Simon Johnson, who announced his resignation earlier this month.

Dominique Strauss-Kahn, head of the IMF, said Blanchard's expertise on issues such as global imbalances, financial assets and bubbles, and savings and investment behavior would "serve him well" as chief economist.

Blanchard, who like Strauss-Kahn is French, has also taught at Harvard.

The fund also named Antoinette Sayeh as director of the African department; Andrew Tweedie as head of the finance department; and Reza Moghadam as director of the policy development and review department.

The IMF on May 5 had announced that Johnson was resigning after 14 months as chief economist to return to MIT, from where he is on leave. (Reuters)

Posted by globebusiness at 12:55 PM | Comments (0)

Thermo Fisher unveils biomarker research project

Thermo Fisher Scientific Inc. today announced an alliance with George Mason University in Virginia to do research on biomarkers.

Biomarkers are biochemical features that can signal the progression or risk of disease as well as the potential effectiveness of certain treatments, said Thermo Fisher Scientific, a Waltham company that provides services and instruments to such industries as life sciences.

A challenge in biomarker research has been "independent validation of experimental results," and the alliance between Thermo Fisher Scientific and the university's Center for Applied Proteomics and Molecular Medicine seeks to address that challenge, the company said.

The research project will make use of Thermo Scientific Quantum Ultra triple quadrupole mass spectrometers to analyze assays, Thermo Fisher Scientific said.
(By Chris Reidy, Globe staff)

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

Mass. gas prices jumped 15 cents a gallon

Gasoline prices in Massachusetts were up an average of 15 cents in the last week, according to AAA Southern New England.

AAA said its May 26 survey of prices in Massachusetts found self-serve, regular unleaded averaging $3.90 per gallon, up 36 cents in just the last month.

Massachusetts is currently 3 cents below the national average for regular unleaded of $3.93, AAA said.

A year ago at this time, the average price in Massachusetts was $3.04, AAA said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:59 AM | Comments (0)

Cognex sues MVTec Software

Cognex Corp. of Natick said it is suing MVTec Software GmbH and MVTec LLC, its Cambridge-based US subsidiary, over claims of patent infringement.

Cognex designs, develops, manufactures, and markets machine vision sensors and systems.

According to its website, MVTec Software is headquartered in Germany.

In a complaint filed in the US District Court in Boston, Cognex alleges that MVTec's Halcon machine vision software infringes the claims of at least seven Cognex patents.

Cognex said it is asking the court to enjoin MVTec from making and selling the infringing software, and it is also seeking unspecified damages in compensation for past infringement.

Fuji America Corp., which sells semiconductor capital equipment that incorporates MVTec's Halcon software, is also named in the complaint, Cognex said.

Last week, Cognex said it won a patent lawsuit over Acacia Research Corp.
(By Chris Reidy, Globe staff)

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

Alnylam signs potential $1 billion deal with Takeda

Cambridge biotechnology firm Alnylam Pharmaceuticals Inc. said today that it formed a research partnership with Japan's Takeda Pharmaceutical Co. Ltd. potentially worth more than $1 billion.

Last month, Takeda purchased Cambridge life sciences company Millennium Pharmaceuticals Inc. The $8.8 billion transaction is the biggest deal in the history of the Massachusetts biotechnology industry.

Alnylam, which also formed a lucrative $1 billion partnership with Swiss drug maker Roche last year, is developing RNAi, or gene silencing, technology, which uses mechanisms within the body to target and "turn off" certain genes associated with cancer and other diseases.

Takeda will make a $100 million upfront payment, and $50 million in near-term technology transfer payments covering a non-exclusive licenses in two RNAi treatment fields. The companies value the five-year partnership at potentially more than $1 billion in R&D and commercial milestone payments.

Takeda becomes the only Asian company to receive right of first refusal to develop and market Alnylam RNAi therapies for the Asian market, excluding Alnylam's ALN-RSV01 pediatric respiratory syncytial virus program. In addition, Alnylam receives the option to co-develop and co-market Takeda RNAi drug programs in the U.S. market on a 50-50 basis.

The companies said Takeda may opt to expand their partnership to include additional fields, for $50 million each. Alnylam is also eligible to receive research and development funding related to the drug discovery collaboration, and may receive up to $171 million in development and commercial milestone payments and royalties for each product.

In addition to its deals with Roche and Takeda, Alnylam also has partnerships with Novartis AG, Biogen Idec Inc. of Cambridge, and the National Institutes of Health. The company is among more than a half-dozen biotechnology firms developing RNAi treatments, which involve interfering with messenger-carrying RNA that can trigger disease by delivering genetic information to cells. The technology is designed to ensure a drug reaches its intended target while leaving healthy cells unharmed, unlike blunt approaches such as chemotherapy.

The research stems from a discovery in 1998 by Craig Mello, a researcher at the University of Massachusetts Medical School at Worcester, and Andrew Fire of Stanford University. The pair were honored in 2006 with the Nobel Prize for medicine.

Alnylam's success in forming partnerships with large drugmakers has doubled its share value in the last year. The stock has risen from a 52-week low of $14.87 last July to peak at $37.35 in October following its Roche deal, and closed Friday at $29.45 on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 7:40 AM | Comments (0)

Mass. single-family home prices fall 12 percent

Massachusetts home prices had their biggest monthly drop in two decades in April, the Warren Group reported today.

The median price of a single-family home in Massachusetts was $305,000 last month, down 12 percent from $346,750 in April 2007, said the Warren Group, the Boston-based publisher of real estate data and the publisher of Banker & Tradesman.

That drop was the steepest decline since the Warren Group began recording prices in 1987, the firm said.

The number of single-family homes sold in the state during April declined 12 percent to 3,215, from 3,654 a year ago, the Warren Group said.

The median price of a Massachusetts condominium fell 1.8 percent from $274,950 in April 2007 to $270,000 in April 2008, the Warren Group said.

On a volume basis, condo sales fell 22.2 percent in April from 2,204 last year to 1,714.

“In the early 1990s - during the last big housing slump - prices fell in 42 of 48 months,” Timothy Warren Jr., chief executive of the Warren Group, said in a statement. “Since March 2006, when prices first started to fall in this current slump, there have been price declines in 20 of the 26 months. But the early '90s price declines weren’t as dramatic as the drops we’re seeing now. Let’s hope that these lower prices bring buyers back to the market so this slump will have a shorter duration than the 48 months we endured in the 1990s.”

A second, separate residential real estate report on the Bay State was released this morning by the Massachusetts Association of Realtors, which uses a different method than the Warren Group to track sales activity.

On a year-to-year basis, the realtors group said that the volume of Massachusetts single-family homes sold in April was down 15.8 percent, with the median sales price down 8.7 percent; the number of condos sold in April was down 26.6 percent, with the median price flat.

The Massachusetts median selling price for a detached single-family home in April was $314,900, down from $345,00 in April 2007, the Massachusetts Association of Realtors said; the number of such homes sold in April was 2,803, down from 3,328 a year ago.

As for the Bay State's condo market, the median selling price in April was $275,000, up from $274,650 in April 2007; last month, 1,286 condos were sold, compared with 1,753 condos sold in April 2007, the realtors association said.

Massachusetts Association of Realtors president Susan M. Renfrew claimed to see some bright spots because the April sales activity was an improvement over what was seen in March.

“Despite the fact that sales of single-family homes were down in April compared to last year, there were still some small, but positive signs,” Renfrew said in a statement. “The monthly decline was not as great as in each of the first three months of the year, while on a month-to-month basis, sales experienced significant increases and stabilizing prices. While we’ll need to see how the numbers are next month, this at least indicates that the spring selling season is picking up.”
(By Chris Reidy, Globe staff)

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

May 23, 2008

Lewy Boulet endorses Saucony

Saucony, the athletic shoe brand with offices in Lexington, said it has signed Olympic marathoner Magdalena Lewy Boulet to a multi-year endorsement contract.

Lewy Boulet will represent the United States in upcoming Summer Olympics in China after finishing second in a marathon trial race held in Boston last month; her time of 2 hours, 30 minutes, and 19 seconds was a personal best, Saucony said.

A native of Poland, Lewy Boulet became a US citizen in 2001 and lives in California.

Lewy Boulet's "strong will and competitive spirit" make her the perfect embodiment of "the spirit of Saucony," Saucony president Richie Woodworth said in a statement.

Other runners with Saucony endorsement contracts include Molly Huddle, Alicia Shay, and Gabe Jennings, Saucony said.

Saucony is a subsidiary of Collective Brands Inc., a Kansas-based footwear company.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:13 PM | Comments (0)

Sonus Networks signs agreement for the Bahamas

Sonus Networks Inc., the Westford telecom equipment company, said today it has signed an agreement to bring a "next-generation" communications network to the Bahamas.

Under an agreement with the Bahamas Telecommunications Company Ltd., or BTC, Sonus Networks said it will migrate the Bahamas' wireline network to an Internet protocol-base infrastructure.

“BTC is ahead of many major carriers in its adoption of IP-based telephony," Hassan Ahmed, the chief executive and chairman at Sonus Networks, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:05 AM | Comments (0)

Blazers will play lacrosse at TD Banknorth Garden

The reincarnated Boston Blazers, a team in the National Lacrosse League, said today it will play its home games in the TD Banknorth Garden, which is also home, of course, to the Boston Bruins and the Boston Celtics.

The Blazers are set to begin playing indoor lacrosse at the garden in January, and the team said it has signed an agreement with garden owner, Delaware North Cos., to play at the facility for three seasons.

Boston previously had a lacrosse team called the Blazers that disbanded about a decade ago, a Blazers spokesman said; in 2007, the National Lacrosse League awarded owner Tim Armstrong a Boston franchise for the new Blazers.

Ticket prices are still being finalized, the team spokesman said, but he indicated that prices would be "moderate," making lacrosse games ideal for a family outing.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:15 AM | Comments (0)

Stop & Shop lowers prices on ice cream toppings

The Stop & Shop Supermarket Co. has extended its "Low Prices Every Day" program to cover ice cream cones and ice cream toppings such as sprinkles and fudge sauces.

The Quincy-based chain started the program in September 2006, and the program now includes such product categories as health and beauty care products, produce, condiments, pet foods, household supplies, and frozen foods.

This week, Stop & Shop said it will reduce prices on about 40 products that people typically serve with ice cream.

Alas, while prices may be lowered on sugar cones and butterscotch toppings, consumers may find it harder to catch a break on ice cream itself.

Just yesterday, Brigham's Ice Cream Inc., an Arlington company with a 94-year local history, cited "dramatic increases in the costs of some dairy products and key ice cream ingredients" as one reason why it is exploring "strategic alternatives," including a possible sale.

Stop & Shop operates 378 stores throughout much of the Northeast; its parent company is Royal Ahold NV, a Dutch food retailer.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:39 AM | Comments (0)

Playboy has news for the Hub

The folks who bring you Playboy magazine have some news that might be of interest to Boston, long a place that has cherished free speech.

The Playboy Foundation has announced the creation of a Freedom of Expression Award, which comes with a $25,000 grant to "fund the work of a noteworthy advocate for the First Amendment."

One purpose of the award is to "help focus public attention on the continuing threats to our civil liberties," Christie Hefner, chairman and chief executive of Playboy Enterprises Inc., said in a statement.

The new award is an addition to the Hugh M. Hefner First Amendment Awards , which were established in 1979 to "honor individuals who have made significant contributions in the vital effort to protect and enhance First Amendment rights for Americans," the Playboy Foundation said in a press release.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:48 AM | Comments (0)

Celtics fans: Watch out for Detroit - and bogus gear

The National Basketball Association is warning Boston Celtics fans to be on guard for counterfeit merchandise.

When a team goes deep into the play-offs, demand generally increases for its team-themed apparel and memorabilia, the NBA said, and that situation can lead to an opportunity for counterfeiters selling bogus and shoddy knock-offs.

The NBA said in a press release, "The counterfeiters’ potential victims include legitimate retailers in the Boston area, as well as Celtics fans who believe they are purchasing authentic merchandise, only to learn later that they have obtained counterfeit products of inferior quality."

Since 1993, authorities have seized more than 9 million pieces of counterfeit merchandise valued at $329 million, according to the NBA.

The NBA offered some tips to avoid purchasing counterfeit goods. They include looking for the official hologram mark on products, limiting shopping to NBA authorized retailers, and being on guard for goods with ripped tags and typographical errors.
(By Chris Reidy, Globe staff)

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

May 22, 2008

Burnes approves acquistion of Commerce

Massachusetts Commissioner of Insurance Nonnie S. Burnes (right) today approved the proposed acquisition of Commerce Insurance Co. of Webster by the Spanish insurance company Mapfre S.A., her office said.

The approval, which cited Mapfre's commitment to maintaining Commerce jobs in the state, will allow Mapfre to acquire all the outstanding common stock of Commerce Insurance for $2.2 billion, Burnes's office said.

Today's decision is one of several key regulatory approvals needed for a deal that's also subject to review by federal regulators and authorities in other states where Commerce operates, an Associated Press story reported.

The Commerce Group is the largest writer of property and casualty insurance in Massachusetts, according to Burnes's office.

The boards of both companies, and the majority of their shareholders, previously approved the acquisition, Burnes's office said.

The companies anticipate that the acquisition will be closed in the next couple of months, a statement from Burnes's office noted.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:40 PM | Comments (0)

Brigham's Ice Cream explores possible sale

Brigham's Ice Cream Inc. of Arlington said today that it has appointed Robert Wexler as chief executive while the 94-year-old company "assesses its strategic alternatives."

A Brigham's spokesman confirmed a recent story in the Griffin Report of Food Marketing, a trade publication, that Brigham's hired Tully & Holland Inc., a Wellesley firm that offers investment banking services, to explore a possible sale or a merger of the company.

Brigham's cited tough competition and the rising costs of ice-cream ingredients as among the reasons for its decision to explore its options.

According to a statement from Brigham's today, Wexler "is committed to maintaining the brand, and the company said there will be no disruption in operations as Wexler explores alternatives for the company."

Brigham's also said in its statement: "Like other independent premium ice cream brands, Brigham’s has been subject to a variety of market pressures, including the unprecedented rise in the cost of commodities and the price of fuel and utilities."

In addition, Brigham's said it faces "heavy competition from a highly consolidated industry that, unlike Brigham's, has not been committed to quality," but has made "huge investments in technological innovation, packaging changes, promotional discounting, and cost-cutting."

According to the story in the Griffin Report, Brigham's had gross sales of about $20.2 million in the fiscal year that ended April 1.

For much of its history, Brigham's has been an icon in a region where ice cream is prized more than in many other parts of the country.

Many of Brigham's flavors draw on local inspiration. For example, there is Big Dig, whose ingredients include vanilla ice cream, brownie pieces, caramel swirls, and chunks of chocolate, Brigham's website said.

Another flavor salutes Red Sox pitcher Daisuke Matsuzaka. Dice-Kream is made with such ingredients as vanilla ice cream, chocolate-covered peanuts, chocolate-colored caramel cups, and swirls of fudge sauce, according to Brigham's website.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:27 PM | Comments (0)

Garnett will pitch Verizon's FiOS TV

Kevin Garnett of the Boston Celtics will star in a new advertising campaign that promotes the FiOS TV service offered by Verizon Communications Inc., Verizon said today.

Continuing the theme of "This is FiOS; This is Big," the 30-second ad with Garnett that is scheduled to start airing today highlights Verizon FiOS TV's Home Media digital video recorder, which gives customers the ability to record videos on one TV set, then view them on up to six other TV sets in their homes, Verizon said.

Describing the plot of the ad, Verizon said: "The new TV spot is set in a venerable Boston mansion that is decorated in a comically lavish style. Garnett towers over a slender Verizon technician who shows him how he can record videos in his family room, then watch them on other TV sets located throughout the house, including in a five-story stairwell, in a formal dining room (complete with a silver platter piled with a two-foot-high stack of gourmet hamburgers), in a massive library, and even on top of a grand piano."

Verizon recently noted that its FiOS TV service is either already available or soon will be in roughly 70 communities in Massachusetts. All told, the service is available in parts of 13 states, including California, New York, Rhode Island, and Texas. Plans call for the Garnett ad to air in all the markets where the FiOS TV service is available, a Verizon spokeswoman said.

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 12:05 PM | Comments (0)

EMC extends tender offer for Iomega to May 30

Data storage systems maker EMC Corp. of Hopkinton said today that it has extended its cash tender offer for the outstanding shares of San Diego-based Zip drive maker Iomega Corp. until May 30.

EMC is offering $3.85 per share in cash to Iomega shareholders. The offer, which began on April 24, was originally scheduled to expire on Wednesday.

The company said the offer was extended to allow the European Commission time to complete its review process, which is necessary to complete the deal.

EMC agreed to acquire Iomega for $213 million 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.

As of the close of business yesterday, 42.8 million Iomega shares had been validly tendered and not withdrawn, representing about 78 percent of the company's outstanding stock. (AP)

Posted by globebusiness at 10:03 AM | Comments (0)

Cognex wins patent case against Acacia Research

Cognex Corp., a Natick company that makes machine vision sensors, said today that it won a patent lawsuit over Acacia Research Corp.

A federal court in Minnesota ruled Monday in favor of Cognex in its patent lawsuit against Acacia Research, Veritec Inc. and two of their subsidiaries, Cognex said.

The court also refused Acacia's request to dismiss a business defamation claim brought by Cognex against Acacia Research.

Cognex filed its original complaint in 2006 after receiving information that Acacia Research had contacted Cognex customers to demand licensing fees relating to the patent in question.

Cognex chief executive Robert J. Shillman denounced "abusive patent trolling ... the activity of purchasing highly questionable patents from patent holders and then asserting them against well-respected and ethical corporations in the hope of extracting large monetary settlements (which are often calculated to be a bit less than the cost of litigation) ... has unfortunately become a growth 'business' in America over the past decade."

Acacia was not immediately available for a comment. (AP)

Posted by globebusiness at 9:52 AM | Comments (0)

Evergreen Solar signs sales contracts worth $1B

Solar panel producer Evergreen Solar Inc. today said that it received two long-term sales contracts worth nearly $1 billion.

The Marlborough company received a $750 million deal with Germany-based Ralos Vertriebs GmbH for panel deliveries starting this year through 2013 and another deal with an unspecified US-based installer.

Evergreen Solar said it will make the panels at its plant a the former Devens military base in Central Massachusetts.

"We will enter into selective long-term supply agreements with additional companies that also bring differentiated value to their customers and serve markets that are at the forefront of solar growth," Richard M. Feldt, Evergreen Solar's president and chief executive, said in a statement.

Shares of the company soared $1.43, or 16 percent, to $10.53 in premarket trading. The stock, which is down 47 percent in the year to date, closed yesterday at $9.10 on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 9:21 AM | Comments (0)

Hybrids gain ground in the Bay State

The number of registered hybrid vehicles in Massachusetts has increased by 36 percent during the past nine months, from 16,477 in July to the current number of 22,353.

Travelers of Massachusetts, an insurance company, cited those numbers from the Massachusetts Registry of Motor Vehicles as part of a marketing effot to win auto insurance business from hybrid owners.

(At left, a shopper checks out a Toyota Prius.)

According to Travelers, the state's new managed competition system for auto insurance allows auto insurance discounts created especially for hybrid drivers.

"Travelers of Massachusetts is pleased to offer a discount up to 10 percent on auto insurance to Massachusetts' hybrid drivers," Dick Welch, president of Travelers of Massachusetts, said in a statement.

Last year, the Patrick administration undertook an ambitious overhaul of the Massachusetts auto insurance market, which was the last one in the country where rates were set by regulators. Under the new system, companies set their own rates and have greater flexibility to introduce innovative product features and discounts for different drivers.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:00 AM | Comments (0)

Casual Male earnings fall on sales weakness

Casual Male Retail Group Inc. of Canton said today that its first-quarter earnings fell, missing Wall Street expectations, as a pullback in consumer spending hurt sales of big and tall men's clothing.

First-quarter earnings dipped to $96,000, or break-even per share, from $1.1 million, or 3 cents per share, in the prior year. The 2007 results include a loss from the company's discontinued Jared M. custom clothing business of $400,000, or 1 cent per share.

Quarterly sales dipped 3 percent to $107.6 million, from $110.6 million.

Analysts surveyed by Thomson Financial had expected earnings of 2 cents per share on $110.2 million in sales.

Same-store sales fell 2 percent. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Expenses were nearly flat at $47.5 million, compared with $47.4 million in the prior year.

"As we anticipated, our first-quarter sales were impacted by the difficult economy and overall weakness in the men's apparel business, but we were able to maintain our merchandise margin rates and control our expenses," Casual Male president and chief executive David Levin, said. "We are also encouraged that while store traffic was down, our conversion rate and average sales transaction at Casual Male XL improved significantly in the first quarter." (AP)

Posted by globebusiness at 8:39 AM | Comments (0)

Mouse firm offers Father's Day gift suggestion

Gaudy neckwear can be a safe choice for a Father's Day gift. But then gift givers might want to heed the fashion maxim of film-maker John Waters, who supposedly said something like: "A man should never wear a tie louder than his wife."

One non-necktie Father's Day gift option to consider for a wireless dad is an accessory from Newton Peripherals of Natick, the folks who brought you the MoGo family of Bluetooth-enabled computer mice, which are roughly the size of a business card and that store in the PC card or ExpressCard/54 slot of notebook PCs.

The company said that is now offering a custom skin for the MoGo Mouse that proudly displays ". 1 Dad."

"MoGo is the perfect mouse for any Dad who needs maximum productivity from his laptop without the extra bulk," Matt Westover, president and chief executive of Newton Peripherals, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:03 AM | Comments (0)

Survey studies "DWT" - driving while texting

If you're driving in South Carolina, watch out. When it comes to text messaging while driving, the practice is most common in South Carolina, according to a report issued by vlingo Corp., a Cambridge firm that specializes in unlocking access to wireless data services.

And here's a refreshing news flash from a report that focuses on the text-messaging habits of cellphone users: Massachusetts did OK. According to legend, Bay State motorists are notorious for bad driving habits, but one bad habit they haven't massively embraced just yet is what vlingo calls "DWT" - driving while text-messaging.

Out of the 48 continental states examined in a survey of nearly 5,000 consumers, Massachusetts ranked 23rd. And New England as a region did well. Among the five states with the lowest percentage of respondents who admitted to "DWT" were Maine, Vermont, and New Hampshire, said vlingo, which noted that Arizona had the lowest number of respondents who "DWT."

Today 23 states are considering legislation to ban driving while texting, according to vlingo, which added that 55 percent of survey respondents said they send text messages and 28 percent admit to DWT.

“In this data what we see is an approaching tidal wave of a public policy and safety issue,” vlingo chief executive Dave Grannan said in a statement. “Text messaging has become an integral part of how younger generations communicate, and right now their behavior and attitudes suggest that 50 percent will be driving and texting. This problem is only going to get worse and we need to develop public policies and technologies to address this challenge.”

DWT may be slow to catch on in New England, but it seems to be rampant in Dixie. Joining South Carolina among the states with the highest percentages of DWT practioners were Tennessee, Georgia, and Louisiana, the survey said.

In the South, where the drawls can be slow, apparently it's often the fingers that do the fast talking.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:29 AM | Comments (0)

May 21, 2008

Manager of allegedly phony fund charged with fraud

A Sudbury man is accused of raising at least $1.6 million for a fictitious real estate investment fund and spending most of the money on himself.

Federal prosecutors today criminally charged Stephen L. Hochberg with wire and securities fraud.

Hochberg also faces civil complaints from Massachusetts Secretary of State William Galvin and the Securities and Exchange Commission, which allege securities violations.

Investigators say Hochberg solicited seven investors to turn over at least $1.6 million for a fund called Realty Funding LLC.

Authorities say the venture didn’t exist. They say Hochberg used the money primarily for personal expenses, including paying off credit cards and hiring clowns and jugglers.

Hochberg’s attorney, Paul Andrews, declined to comment. A phone message seeking comment from Hochberg wasn’t returned.
(AP)

Posted by globebusiness at 4:00 PM | Comments (0)

Corporate Express deal could thwart Staples

The office supplies distributor Corporate Express NV made a surprise move to thwart a hostile takeover by Framingham-based Staples Inc. today, unveiling plans to buy French rival Lyreco SAS for about $2.7 billion.

If approved by shareholders and regulators, the combination would create a sizable international competitor to Staples, one that is larger in business-to-business sales in the United States, Europe, and Asia.

Corporate Express’ board rejected a $2.47 billion takeover offer from Staples last week, saying it undervalued the company.

‘‘Would we have done this deal if Staples hadn’t made their bid?’’ CEO Peter Ventress said on a conference call. ‘‘The answer is absolutely yes. This is the most compelling, the most logical merger in our industry.’’

The Dutch company said both its own and privately held Lyreco’s boards support the new deal.

Staples said in a statement today that its bid ‘‘delivers certain, immediate and superior value to Corporate Express shareholders ... without the substantial execution and other risks inherent in Corporate Express’ long-term plans, with or without the addition of Lyreco.’’

On Tuesday, CEO Ron Sargent suggested Staples had no plans to raise its bid.

Anthony Chukumba, an analyst with FTN Midwest Securities, said Corporate Express shareholders now face a tough choice in deciding whether they’ll get a greater return from their shares from the Lyreco deal or from Staples’ offer.

The deal announced today contains a $47 million breakup fee for Lyreco in case it falls through.
(AP)

Posted by globebusiness at 3:51 PM | Comments (0)

Tannery to take over former Restoration Hardware site on Boylston Street

The Tannery shoe store plans to open its fourth and biggest shop this fall at 711 Boylston St., the former site of home furnishings merchant Restoration Hardware, which closed last week.

Brothers Tarek and Talal Hassan, who own the Tannery and the Boylston Street building, decided to take over the two-story, 16,000 square foot space to showcase its largest collection of shoes, clothing, and accessories. The Tannery, which features top brands from Dansko to Merrell to Ugg (right), will keep open its nearby shop at 402 Boylston St. "We love Boston," Tarek Hassan said.

The Hassan family opened the first Tannery in Harvard Square in 1973.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 3:27 PM | Comments (0)

Interactive Data chief executive to retire

Financial data provider Interactive Data Corp. said today that its president and chief executive, Stuart J. Clark, plans to retire in 2009 after more than 40 years with the company and its predecessors.

Clark, 60, will stay in his current role until a successor is named. (AP)

Posted by globebusiness at 11:06 AM | Comments (0)

Eaton Vance profit doubles

Eaton Vance's profit more than doubled in the fiscal second quarter as clients entrusted more money to the investment manager, the company said today.

The company earned $53.2 million, or 43 cents per share, in the three months ended April 30, compared with profit of $23.1 million, or 17 cents per share, in the fiscal second quarter last year.

Profit met analysts' expectations, according to a Thomson Financial survey.

Revenue, which the company derives mainly from charging fees for managing clients' investments, climbed 5 percent to $273.4 million from $260.2 million. Analysts expected revenue of $277.7 million.

Chief Executive Thomas E. Faust Jr. said in a statement he is "pleased with the company's solid performance in the midst of a difficult environment for asset managers."

The stock market was essentially flat in the three months ended April 30.

Clients poured $4.9 billion into their accounts in the second quarter, boosting investments under management by 4 percent to $159.1 billion.

Faust said Eaton Vance is in a good spot to reap the benefits of a stabilizing market.

Shares of the company added 14 cents to $40.64 in morning trading. (AP)

Posted by globebusiness at 11:02 AM | Comments (0)

Abiomed loss widens on increased expenses

Medical device maker Abiomed Inc. reported a wider-than-expected fiscal fourth-quarter loss today due to a surge in expenses.

The company, which makes heart pumps for cardiac failure and catheters, lost $15 million, or 46 cents per share, compared with $6.3 million, or 22 cents, in the year-ago period. Excluding items, losses totaled 22 cents per share in the latest period.

Revenue rose 26 percent to $17.5 million from $13.9 million in the prior-year period.

The results fell short of estimates from analysts surveyed by Thomson Financial, who expected a loss of 19 cents per share on revenue of $18.8 million.

Abiomed said its costs and expenses in the quarter rose 31 percent to $26.4 million.

For the fiscal year, Abiomed lost $40.9 million, or $1.26 per share, compared with $27.9 million, or $1.03 per share, in fiscal 2007. Excluding charges, 2008 losses totaled 82 cents per share. Revenue rose 16 percent to $58.9 million from $50.6 million.

Analysts expected a fiscal 2008 loss of 95 cents per share on revenue of $60.1 million.

Shares of Abiomed fell 17 cents to $13.74 in morning trading. (AP)

Posted by globebusiness at 10:54 AM | Comments (0)

Talbots profit falls, but chain sees better days ahead

Talbots Inc., the Hingham apparel chain struggling to win the favor of middle-age women more inclined to wear casual clothing, said today that first quarter net income was $1.6 million, down 69 percent from net income of $5.2 million a year ago.

Talbots said total consolidated first-quarter sales were $542 million; at stores open at least a year, sales fell 9.8 percent, and sales at stores open at least a year at the company's J. Jill division were down 20.2 percent.

(Photos accompanying this story were taken from the company's website.)

Talbots is looking to revamp its strategy and exit a number of underperforming businesses; for those reasons, focusing on the company's ongoing core operations gives a better picture of its future outlook, Talbots said.

For example, the company said it "achieved solid first quarter 2008 results from ongoing core operations of 21 cents per share, above last year's 14 cents per share on a comparable basis."

Excluding a loss of $5.9 million from its Talbots Kids, Mens, and U.K. noncore businesses, which the company is closing, and restructuring charges of $3.5 million, net income from ongoing core operations was $11 million, the Associated Press reported.

Talbots also said that Talbots brand merchandise posted solid sales in April.

Trudy F. Sullivan, Talbots president and chief executive, said in a statement: "During the quarter, we focused on the strategic initiatives we put in place to better manage our inventories, control expenses, streamline our operations and innovate our marketing/promotional programs. It was a solid quarter and we are encouraged with our progress, particularly in the Talbots brand, where we have seen a dramatic improvement in our merchandising gross margin."

Sullivan also said in her statement: "April was particularly strong for the Talbots brand.... We also believe that the refreshed visual presentation of our merchandise, consistent across all channels, coupled with a more focused and effective direct marketing campaign was a clear benefit."

Last month, Talbots disclosed that two lenders had canceled letters of credit, news that sent its stock shares tumbling.

In January, Talbots disclosed plans to get out of the children's and men's apparel businesses and to slash 5 percent of its work force.

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

Posted by globebusiness at 8:26 AM | Comments (0)

BJ's reports earnings and sales gains

BJ's Wholesale Club Inc., the Natick-based chain of club stores, today reported first quarter net income of $17.2 million, or $.29 per diluted share, up 26 percent from a year ago.

BJ's earnings release comes as many consumers, stretched by rising food and gas prices, are changing their shopping habits and opting to spend more of their dollars at lower-price chains such as BJ's.

For the first quarter of 2007, the Company reported net income of $13.7 million, or $.21 per diluted share.

  BJ's also announced that it expects to report earnings for fiscal 2008 in the range of $2.04 to $2.14 per diluted share, an increase of $0.06 versus prior guidance of $1.98 to $2.08 per diluted share.

  Net sales for the first quarter of 2008 increased by 12.3 percent to $2.26 billion and sales at stores open at least year rose by 9.6 percent, including a contribution from sales of gasoline of 3.9 percent, BJ's said.

For the first quarter of 2007, net sales increased by 7.5 percent, and sales at stores open at least a year increased by 2.3 percent, including a contribution from sales of gasoline of 1.4 percent, BJ's said.

The company has scheduled a conference call for later this morning to discuss first-quarter results.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:27 AM | Comments (0)

Underwear "system" reduces Top Gun pit stops

MILTON, Vt. - For fighter pilots, the difficulty in answering nature's call is as old as flying itself. After all, there are no rest areas when you're zooming through the sky at 500 mph.

Over the decades, pilots have used bottles and bags - or just held it. Many avoid liquids or make sure their last stop before climbing into the cockpit is a bathroom.

Now a Vermont company has come up with a 21st-century solution that pilots can use without unstrapping themselves from their seats.

The system uses special underwear equipped with a hose linked to a pump the size of a paperback book that drains urine into a collection bag. The men's model uses a pouch; the women's has something that resembles a sanitary napkin.

"As you can imagine, Air Force pilots have many responsibilities during a mission, maintaining their sights, monitoring fuel, navigating the aircraft and monitoring their weapons systems -- and they gotta go so bad they can hardly think," said Mark Harvie, president of the system's maker, Omni Medical Systems Inc. "This takes care of that problem for them." (At left, a product photo from the company's website.)

Some pilots do permanent damage to their bladders by holding it in for hours at a time, which can cause incontinence and other problems.

"The bladder is a muscle," said Dr. Sam Trotter, chair of the Urology Department at Fletcher Allen Health care in Burlington. "If you get this chronic overdistention of the bladder, they can have trouble down the road."

At least twice, F-16s have crashed as their pilots tried to urinate. In 1992, one crashed in Turkey after a belt buckle got wedged between the seat and the control stick, prompting the Air Force to urge pilots not to unbuckle completely.

Fighter pilots can also endanger themselves by avoiding liquids: Even a little bit of dehydration can reduce their ability to withstand heavy G-forces, Harvie said.

The standard equipment for urinating in the air now is the "piddle pack" - a pistol-shaped plastic container filled with chemicals that converts urine into a gelatinous substance to be disposed of later.

"If you're flying during the day in clear weather in the summertime when you're not dressed in seven or eight layers, it's a fairly basic procedure," said Col. Phil Murdock, a Vermont Air National Guard pilot with 3,500 hours of flying time.

"At the other extreme, wintertime flying across the North Atlantic when you're wearing multiple thermal layers... (or) at night when you're trying to fly formation with other airplanes in rough weather, then it's darn near an emergency procedure," said Murdock, who flies F-16s.

The push for a better system began in earnest after female pilots started flying fighters in 1993, Harvie said. In 2000, the Pentagon sent out a request for proposals, and Harvie answered.

"I read it over with a couple of my people and we sort of snickered, and said 'Oh, you've got to be kidding, they must have a solution for this, they've been flying airplanes since the early 1900s,"' he said.

But they didn't.

He applied for a research grant and built a prototype. Omni, which started out as a five-person operation, now employs 44 people working out of a building in an industrial park.

The company has delivered the first 300 units to the Air Force and is negotiating to provide the system to the Air National Guard. The Navy has bought a handful for testing, as have air forces from at least two NATO allies in Europe.

Major Samantha Weeks, 32, of Rome, N.Y., a pilot with the Air Force's Thunderbirds aerial demonstration team, said female pilots have adapted to the situation just like men. Most women now use a commercially available travel john. Weeks said she was comfortable with the current system, but she'd welcome something new.

"It's great to have one or two different options out there and figure out what works best for you," Weeks said. "I'm glad to see more viable options for female fighter pilots."

The control units that contain the pumps cost about $2,000 each. Over their lifetime, the devices should cost an average of $35 a flight, Harvie said.

Harvie said his employees have a sense of humor about what they make, but everyone recognizes it's important work. "You lose one $50 million aircraft and you can pay for this system for every pilot in the world forever," Harvie said. (AP)

Posted by globebusiness at 6:59 AM | Comments (0)

May 20, 2008

Kayem agrees to buy some Tyson meat brands

Kayem Foods Inc., a Chelsea company known locally for its hot dogs, said today it has agreed to acquire several meat brands from Tyson Foods Inc. of Arkansas for an undisclosed amount.

The brands covered by the sales agreement include Jordan’s, Kirschner, Essem, and Tasty Bite; in 2007, they collectively had sales of nearly $20 million, a Kayem spokesman noted in an e-mail.

“Like Kayem, these brands began as corner meat markets and matured into providers of delicious authentic meat products using the highest quality standards," Kayem president and chief executive Ray Monkiewicz said in a statement.

Kayem bills itself as the largest meat processor in New England, and the company is gearing up to mark its 100th anniversary in 2009.

Best known for its Old Tyme Natural Casing franks, Kayem said in a press release that it produces more than 120 varieties of hot dogs and 320 varieties of deli meats, sausage, and dinner hams under the Kayem, al fresco, Schonland’s, Triple M, Genoa, DeCosta, and Meisterchef brand names.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 4:10 PM | Comments (1)

Uno Chicago Grill looks to the Middle East

Uno Chicago Grill, a restaurant chain with a Windy City name but a Boston business address, said today that it has entered into an agreement to open 20 new locations in the Middle East.

The agreement is with Sofra LLC, the master licensee for Uno in the region, to open new locations in nine countries, including Qatar, the United Arab Emirates, Saudi Arabia, Lebanon, and Egypt, said Uno, which currently counts more than 200 company-owned and franchised restaurants in the chain.

Sofra, which is headed by Major General Abdul Aziz Al Bannai, former head of security for Dubai, currently has Uno franchises in Dubai and Jeddah, Saudi Arabia, Uno said.

Uno added that it has other international franchise agreements in Korea and Honduras for the development of eight restaurants, and in the United States, franchisees have signed deals to open 30 restaurants over the next five years in Florida, Pennsylvania, Ohio, California, and Virginia, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:48 PM | Comments (0)

Massachusetts is part of Vioxx settlement

Massachusetts and 29 other states will share in a $58 million settlement with New Jersey drug maker Merck & Co. to resolve allegations that Merck used deceptive marketing tactics to promote its arthritis drug Vioxx, Massachusetts Attorney General Martha Coakley said today.

Massachusetts will receive $1.64 million of that payment, $1 million of which will go into a special fund to benefit low-income consumers of prescription drugs and programs to educate them about the cost differences among medications, Coakley's office said.

A complaint filed today in Suffolk Superior Court alleges that Merck failed to disclose to consumers that Vioxx posed an increased risk of heart attack, Coakley's office said.

The complaint also noted that in 2004, Merck finally admitted that Vioxx caused serious cardiovascular events and withdrew the drug from the market, Coakley's office said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:40 PM | Comments (0)

One Laptop unveils touchscreen model

The One Laptop per Child Foundation, a Cambridge nonprofit organization, is planning a new version of its inexpensive laptop for developing countries.

The new version, due out in 2010, will replace a traditional keyboard with a second touch-sensitive video screen. The screen can be configured as a keyboard or the device can be opened flat and used as an electronic book.

“You can fold it flat and use it as one continuous display,” said Nicholas Negroponte, the foundation’s founder.

Negroponte said the organization hoped to price the new computer at $75 each, compared with the $188 price for the current generation of laptops.

Mary Lou Jepsen, who left One Laptop per Child to launch a for-profit business, will work with Negroponte's organization to design the new laptop.

In addition, Negroponte announced the resumption of the get-one-give- one program to allow people in affluent countries to buy two of the laptops and donate one to a child in a developing country.

Negroponte said the program will resume in August or September and will be open to buyers in North America and Europe.

He said the previous program, which opened last year to people in North America, enabled the One Laptop to distribute 30,000 additional laptops to children in Rwanda, Mongolia, and Haiti.
(By Hiawatha Bray, Globe staff)

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

A new hotline for workplace fraud debuts

Massachusetts Secretary of Labor and Workforce Development Suzanne M. Bump (right) today announced a new toll-free hotline, 1-877-96-LABOR, and a website for the public to report suspected cases of workplace fraud in the Bay State.

These new outreach tools follow Governor Deval L. Patrick’s signing in March of an executive order that established the Joint Task Force on the Underground Economy, chaired by Director of Labor George E. Noel, Bump's office said.

“Stamping out such fraud is a high priority of the Patrick administration,” Bump said in a statement. “The hotline and website are ways to report wrongdoing so that we can restore fairness in our state’s economy and help those who go to work each day to earn an honest day’s wage."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:43 AM | Comments (0)

Fidelity offers new international equity fund

Boston mutual funds giant Fidelity Investments today announced the launch of a new international equity fund - Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund - with retail and advisor share classes.

“Emerging markets have grown significantly in recent years, and if long–term growth forecasts are accurate, these markets could advance beyond the 12 percent share of the global equity market that they now comprise,” Sanjiv Mirchandani (right), president of Fidelity Personal and Workplace Investing Growth Business, said in a statement. “By launching a first-of-its-kind equity fund for US investors dedicated to emerging Europe, Middle East, and Africa markets, we’re working to help those with high risk tolerances and long–term outlooks gain targeted exposure to areas of the world that may be under–represented in their portfolios.”
(By Chris Reidy, Globe staff)

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

Myvu ships new video eyewear lines

Myvu Corp. said some new models of its "video eyewear" will soon be commercially available.

According to the Westwood company, it specializes in optical systems that transform portable media players into "hands-free, full-screen private viewing experiences;" the company said it offers "the thinnest, lightest, and most durable video eyewear available."

The new products are Myvu Crystal, a premium model with a suggested price of about $300, and Myvu Shades, with a suggested price of about $200, the company said.

(At left is a photo from Myvu's website that features a model showing off one of the company's video eyewear products.)

"The introduction of Myvu into the market in 2006 created a brand new consumer electronics category for the masses -- video eyewear," Kip Kokinakis, Myvu president and chief executive, said in a statement. "Crystal and Shades represent a leap forward in form and technology, providing the highest resolution quality with a sleek design that transcends age and gender barriers."

Kokinakis added in his statement: "The market for mobile content is exploding, yet the small screen dilemma remains. Myvu Crystal and Shades solve this problem by offering a lightweight portable media viewer that lets consumers watch their favorite videos anywhere on Myvu's vivid virtual and full-sized screen."
(By Chris Reidy, Globe staff)

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

Dunkin' Donuts eyes the heart of Dixie

Dunkin' Donuts said today that its national expansion plans now include Alabama.

The Canton-based coffee-and-baked-goods chain announced that the state of Alabama is now open for franchise sales with plans to open more than 142 new restaurants over the next several years.

Local markets targeted for franchise development include Birmingham, Mobile, Montgomery, Tuscaloosa, and Huntsville, Dunkin' Donuts said.

The plan is for Dunkin' Donuts to have roughly 15,000 stores by 2020, about three times the number of stores that the chain had in 2006 when its parent company was purchased by a trio of private equity firms for $2.43 billion.

"To fulfill our national expansion goals, Dunkin' Donuts is looking for developers with a strong organization and the ability to manage multiple restaurants effectively and successfully in the state of Alabama," Lynette McKee, vice president of franchising for Dunkin' Donuts parent, Dunkin' Brands Inc. "We also look for some prior restaurant operations and real estate development experience."

   Building a network of stores enables Dunkin' Donuts to invest in a distribution model that ensures consistent, high-quality products, the chain said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:54 AM | Comments (2)

Massachusetts is poised for biotech growth

Massachusetts has the ideal climate for a robust biotechnology industry, Christoph Westphal (right), chief executive of Sirtris Pharmaceuticals Inc., said today.

Biotechnology here is on a "growth trajectory" because of local access to transformative science, talent, and financing, added Westphal, the keynote speaker at a breakfast this morning marking the Globe 100, this newspaper's annual snapshot of top businesses in the Bay State.

This year marked the 20th anniversary of the Globe 100, and this year's breakfast was held at the Westin Boston Waterfront hotel.

Not many other metropolitan areas can make similar claims when it comes to biotechnology, Westphal said. They may have the science but not the access to financing, or they may have access to financing but not the access to the deep reservoir of talent that Greater Boston enjoys, according to an advance outline of his remarks that was made available to Boston.com.

There is evidence to back up Westphal's claim. Just in the last few weeks, the local biotechnology industry has made big news.

Take Westphal's own company for example. Cambridge-based Sirtris looks to develop drugs based on an extract of red wine to fight diabetes and other age-related diseases, and last month it agreed to be purchased by British drug maker GlaxoSmithKline PLC for $720 million.

Only days earlier, another Cambridge biotechnology company, Millennium Pharmaceuticals Inc., said it had been sold to Japanese drug maker Takeda Pharmaceuticals Co. for $8.8 billion, the biggest deal in the history of the state's biotechnology industry.

Those deals make it highly unlikely that Sirtris and Millennium will be on the Globe 100 next year.

One requirement for making the Globe 100 is that a company maintain its corporate headquarters in Massachusetts.

This year, the Globe 100 ranked the state's best-performing publicly traded corporations by how well they increased sales, profits, and returns for shareholders during 2007.

For the second straight year, Perini Corp., a Framingham construction company, topped the Globe 100.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:54 AM | Comments (0)

Smith & Wesson prices stock offering

Smith & Wesson Holding Corp. of Springfield said today it priced a public offering of 6.25 million common shares.

The firearms maker said it will use the approximately $31.9 million in proceeds to repay debt.

The underwriters are Deutsche Bank Securities and Cowen and Company.

The offering is expected to close on Friday. A shelf offering filed with the Securities and Exchange Commission was declared effective on Sept. 15, 2006.

Shares of Smith & Wesson fell 49 cents, or 7.9 percent, to $5.68 in premarket electronic trading. The stock closed at $6.17 yesterday on the Nasdaq Stock Market . (AP)

Posted by globebusiness at 9:28 AM | Comments (0)

Staples profit rises 1.5 percent, reaffirms outlook

Staples Inc.of Framingham posted a slim 1.5 percent increase in its first-quarter profit, after posting small declines the previous two quarters amid slow retail sales of office products.

The world's largest office products supplier said today that its profit rose to $212.3 million, or 30 cents per share, in the three months ended May 3. That compares with a profit of $209.1 million, or 29 cents per share, a year earlier.

The latest profit matches analysts expectations.

Staples says sales rose 6 percent to $4.9 billion from $4.59 billion a year ago, slightly beating analysts' forecast of $4.83 billion.

Staples reaffirms its profit and sales forecast for the full year. It expects a weak economic climate throughout 2008. (AP)

Posted by globebusiness at 7:45 AM | Comments (0)

Stop & Shop unveils discount program

The Stop & Shop Supermarket Co. is the latest retailer to offer consumers an extra boost in an effort to stretch their federal tax rebate dollars farther.

The Quincy-based chain, which operates 378 stores throughout much of the Northeast, said that customers who use their Stop & Shop card and spend $200 or more in one transaction will receive a Checkout Coupon for 10 percent off their next order.

Stop & Shop said it will limit one Checkout Coupon per family per week, and the offer excludes such items as alcoholic beverages, tobacco products, gift cards, lottery
tickets, gasoline, and pharmacy items.

This initiative further leverages the chain's "Low Prices Every Day" campaign, which has lowered prices on thousands of items throughout the store.

“We know our customers have difficult choices to make during these tough economic times,” Jose Alvarez, Stop & Shop's president and chief executive, said in a statement.

Alvarez (left) added, “When families take advantage of our tax rebate discount program, coupled with our new lower prices, they can count on receiving significant savings at the cash register.”

Initially, merchants had hoped that consumers would spend a portion of their tax rebate money on such discretionary items as big-screen TVs or a new spring wardrobe.

But a survey last week from the National Retail Federation offered a more sobering view: A big chunk of the tax rebates will go to paying for necessities such as gas and groceries as many consumers cope with rising prices.

Alvarez said in his statement, “Savvy consumers who want to stock up now on staples to feed their family will see the arrival of their economic incentive payment as a means of getting in front of the changing economic picture we all are facing.”

Last month, Shaw's Supermarkets Inc. disclosed plans to offer its own version of an incentive program for customers who bring their economic stimulus, or tax rebate, checks to one of the West Bridgewater chain's roughly 200 New England stores.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:20 AM | Comments (0)

May 19, 2008

RainDance moving to Lexington

RainDance Technologies Inc., a small life-sciences equipment provider, said it plans to move to Lexington from Guilford, Conn., later this month.

The company said its new 28,000-square-foot facility in Lexington is double the size of its current location and will employ 65 people by the end of the year.

The four-year-old firm's "microdroplet" technology is used to help sequence the human genome at greater speeds.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 6:04 PM | Comments (0)

Brooks settles stock-options case with SEC

Chelmsford semiconductor equipment maker Brooks Automation Inc. failed to properly account for employee stock options, overstating its income by $64.5 million over 10 years, the Securities and Exchange Commission said in a settlement disclosed with the company today.

The SEC previously had charged Brooks' former chief executive Robert Therrien with backdating stock options to make them more valuable. Therrien has denied wrongdoing. In its settlement today the SEC did not fine Brooks and in a statement the agency praised the company for its "swift, extensive, and extraordinary cooperation'' in the agency's investigation.

As part of the settlement Brooks did not admit or deny the agency's allegations. The SEC says that backdating by Therrien and the company's improper accounting resulted in misleading disclosures from 1996 to 2005. In its fiscal year alone 2000 Brooks overstated its profit by as much as 30 percent, the SEC said.
(By Ross Kerber, Globe staff)

Posted by bdinardo at 3:02 PM | Comments (0)

Hedge fund operator accused of bilking investors

The state's top securities regulator is accusing a Wayland man of improperly soliciting investors to put millions of dollars into a hedge fund that now has little cash left.

Massachusetts Secretary of State William F. Galvin (right) says some of the more than 60 investors in a fund run by Michael Regan fear their money may be gone. A civil complaint filed today says Regan last month claimed to have $15 million in his River Stream Fund, but an April 30 financial statement listed just $1,625.

Regan is accused of operating a hedge fund without registering, and selling to unqualified investors.

Investigators say Regan's Natick office is vacant. No phone listing could be found for Regan's company or home.

Hedge funds operate under minimal government supervision, typically catering to wealthy clients. (AP)

Posted by globebusiness at 2:34 PM | Comments (0)

Staples raises bid for Corporate Express

Staples Inc. is raising its offer for Dutch office-supplies distributor Corporate Express to $4.3 billion.

The Framingham office supplies retailer is offering 8 euros per share, or 2.8 billion euros, to buy the company. That includes shares represented by American depository shares.

Previously, Staples offered $2.47 billion, but the Corporate Express said that was too low.

Staples is also launching an all cash offer for preference shares A of 3.15 euros per share and for subordinated convertible bonds due 2010 of 1,164.72 euros per bond.

The deal must be accepted by holders owning at least 75 percent of stock. The acceptance period for tendering shares of convertible bonds begins on May 20.

Staples shares fell 23 cents to $23.60 in trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 2:28 PM | Comments (0)

Deep-water port east of Boston begins operations

A deep-water natural gas port about 18 miles east of Boston has begun commercial operations, Excelerate Energy LLC, a Texas-based liquefied natural gas importer and marketer, said today.

A deep-water port is essentially a connection to a pipeline buried in the ocean floor; a submersible turret-loading buoy, such as the one shown at right, is brought to the surface when an LNG tanker arrives at the location.

The buoy, which also serves as the tanker's mooring, is connected to the buried pipeline by a flexible armored pipe, Excelerate said; the liquid gas is heated on the tanker so it can unload its cargo of gas directly into the pipeline.

Known as the HubLine, this natural gas pipeline is operated by Spectra Energy Corp. of Texas.

The HubLine is part of the region's natural gas grid, and the line comes ashore in Beverly and Weymouth, an Excelerate spokesman said.

This particular deepwater port is called the Northeast Gateway Deepwater LNG Port, and Excelerate said today that a tanker named Excellence has begun offloading its cargo of natural gas at the port.

Excelerate and Spectra decided to invest in the Northeast Gateway port because "regional energy studies show that New England's demand for natural gas will increase considerably in coming years," Excelerate said.
(By Chris Reidy, Globe staff)

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

Biscotti Man for president?

Some citizens have chosen a presidential candidate by standing up to be counted in a caucus; others by casting a ballot in a primary, and now, thanks to a bakery in Plainville, cookie lovers may cast a vote for the candidate who looks best as a cartoon biscotti.

In non-election years - and in election years too - the logo of Montione's Biscotti Bakery is Biscotti Man, a cheery cartoon character of a chap drawn up in the likeness of a biscotti and created by Norton designer David Pimental.

With the election drawing near, bakery owner Mary T. Montione decided to have cartoon biscotti characters sketched out for each of the remaining likely presidential candidates: Hillary Clinton, John McCain, and Barack Obama.

Alas, this is not a case of Italian dipping cookies serving as a sort of edible Mount Rushmore, with the facial features of the candidates engraved in chocolate and dough. No, the biscotti candidates are simply cartoon characters inked onto campaign buttons.

Nevertheless, the bakery is conducting a straw poll of the candidates on its website.

"It's a fun way to promote the product," Montione said.

And for those more interested in biscotti than politics, the website also serves as an online store for buying biscotti.

So far, the biscotti straw poll has been in the stealth mode, with Montione just beginning a PR offensive to bring it some attention.

Stealth mode or no, Montione was asked which of the biscotti candidates was the early front-runner.

"So far," she said diplomatically, "Biscotti Man is ahead."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:03 PM | Comments (0)

Gas prices up another 7 cents in Mass.

Gasoline prices in Massachusetts have reached another record high, increasing 7 cents a gallon on average from last week.

A statewide survey today by AAA Southern New England found an average price of $3.75 per gallon for self-serve, regular unleaded. That compares with $3.68 a week ago, and marks the sixth consecutive week of higher prices.

The average price in Massachusetts remains 4 cents below the national average of $3.79.

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

A year ago at this time, the average stood at $3.03. (AP)

Posted by globebusiness at 12:32 PM | Comments (0)

Steinway buys online music retailer

Steinway Musical Instruments Inc. of Waltham said today it has acquired ArkivMusic LLC, a Pennsylvania online retailer that sold just over $8 million worth of classical music recordings last year.

Steinway will pay $3 million in cash at closing and three annual payments of approximately $500,000; the transaction involves additional potential consideration based on ArkivMusic's results over the next three years, said Steinway, which added that it does not expect the purchase to have a material impact on earnings in 2008.

"This acquisition will help Steinway promote thousands of musicians who use our instruments around the globe," Steinway chief executive Dana Messina said in a statement.

The company may be best known for its Steinway pianos, but under various brand names, it also makes trumpets, saxophones, and French horns, among other instruments.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:56 AM | Comments (0)

Baskin-Robbins unveils Soft Serve ice-cream line

Baskin-Robbins, sister chain of Dunkin' Donuts, said today it is beginning a national roll-out of Soft Serve ice cream to augment its existing ice cream menu.

The new line will be available this month in more than 1,000 Baskin-Robbins ice cream stores in certain California, New York, Illinois, Texas, and Tennessee markets, and the line should be in all of the chain's 2,700 stores by next spring, a spokeswoman said.

"Soft Serve represents 70 percent of all ice cream servings nationwide," Scott Colwell, Baskin-Robbins vice president of marketing, said in a statement. "With the introduction of our Soft Serve, Baskin-Robbins is now truly a destination that meets everyone's ice cream needs in just one stop."

Adding Soft Serve to its menu will make Baskin-Robbins the only national ice cream chain to offer both Soft Serve and hand-scooped ice cream, said Baskin-Robbins, which concluded from a random nationwide sampling of 1,000 adults that 53 percent of ice cream lovers eat both Soft Serve and hand-scooped ice cream.

Both Baskin-Robbins and Dunkin' Donuts, the coffee-and-baked-goods chain, are operated by Dunkin' Brands Inc. of Canton.

To promote the new Soft Serve line, Baskin-Robbins said it will give a free three-ounce cone to all "moms-to-be" on Wednesday in participating stores, and actress and "expectant mom" Tori Spelling (left) has been selected as the celebrity to help publicize the event, Baskin-Robbins said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:40 AM | Comments (0)

Local consumer confidence falls again

A Massachusetts consumer confidence index has reached its lowest point since 1991, said Mass Insight Corp., the Boston firm that calculates the index.

The index, which is published quarterly, had a reading of 54 in April, down from a reading of 62 that was taken in the index's previous snapshot in January.

"The recent news that Massachusetts is outperforming the national economy seems to have been overwhelmed by sagging home prices and the ongoing credit crisis," William H. Guenther, Mass Insight president, said in a statement.

On its website, Mass Insight describes itself as a research and consulting firm that seeks to keep Massachusetts and its businesses and institutions globally competitive.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:57 AM | Comments (0)

Cabela's taps geoVue

Cabela's Inc., an outdoor retailer that's a Nebraska version of L.L. Bean, has licensed geoVue software to help plot locations for future stores, geoVue said.

Woburn-based geoVue is a provider of optimization software that helps store owners and restaurant owners plan store networks that result in higher returns on capital investment.

With headquarters in Sidney, Neb., Cabela's operates stores that outfit customers with hunting, fishing, and outdoor gear.

A May 1 press release noted that the company had plans to open a store in Scarborough, Maine, earlier this month.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:30 AM | Comments (0)

Pro-Pharmaceuticals announces collaboration

Pro-Pharmaceuticals Inc. of Newton announced today a collaboration with BioCancell Therapeutics Inc. that aims to optimize drug treatments that act like "smart bombs" in destroying certain kinds of tumor cells while leaving healthy cells intact.

According to its website, BioCancell is an Israeli biotechnology company.

Pro-Pharmaceuticals' lead drug candidate is Davanat, which the company hopes to market with multiple chemotherapy drugs; Pro-Pharmaceuticals is currently conducting Phase 2 trials of Davanat for first-line treatment of colorectal and biliary cancer.

The collaboration with BioCancell seeks to determine the effectiveness of using some BioCancell compounds in conjunction with Davanat.

"We look forward to working with Pro-Pharmaceuticals to optimize our compounds to destroy cancer cells," Avraham Hochberg, cofounder and chief scientific officer of BioCancell Therapeutics, said in a statement.
(By Chris Reidy, Globe staff)

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

Teradyne achieves shipping milestone

Teradyne Inc. announced the shipment of the 2,000th test system from its Nextest business unit.

According to the North Reading testing-equipment company, a Korean-based flash manufacturer accepted a Magnum SSV for production testing of a kind of high-density flash devices; typical applications for these device types include memory cards, mobile phones, personal digital assistants, and many other consumer digital products.

"This significant milestone underscores the success of Magnum and its ability to provide customers with compelling test solutions from engineering through the critically important high-volume production process," Tim Moriarty, general manager of the Nextest business unit, said in a statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:05 AM | Comments (0)

May 16, 2008

Dusa Pharmaceuticals files shelf registration

Dusa Pharmaceuticals Inc., a Wilmington company that makes dermatology products, said today that it has filed a shelf registration statement with the Securities and Exchange Commission to offer up to $75 million of securities.

The registration enables the company to raise funds from the sale of its securities in one or more offerings, subject to market conditions and Dusa's capital needs.

Dusa said it has no immediate plans to raise funds.

Shares remained unchanged from yesterday's close at $2.22 in afternoon trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 2:58 PM | Comments (0)

Wal-Mart gears up for opening of Leominster store

Giant discounter Wal-Mart Stores Inc. said it has scheduled a Wednesday grand opening for its new supercenter in Leominster.

With 171,000 square feet of space, the supercenter was constructed with energy efficient technology and environmentally friendly features, Arkansas-based Wal-Mart said.

(Above is a photo supplied by Wal-Mart of the new Leominster store.)

The store will feature a full line of groceries in its product mix and will employ 400 people, said Wal-Mart, which added that leased space within the store will include a nail salon, a hair salon, and a Dunkin' Donuts.

Grand opening ceremonies will include product samples and giveaways, and plans call for $18,000 in donations to be distributed among such local groups as the Boys and Girls Club of North Central Massachusetts and the City of Leominster Public Library, Wal-Mart said.

As of the end April, Wal-Mart said it employed 11,433 people in Massachusetts in 48 stores, including three Sam's Clubs stores.
(By Chris Reidy, Globe staff)

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

HubSpot raises $12 million

HubSpot said today it has raised $12 million in a Series B funding led by Matrix Partners, an investment firm with offices in Boston.

HubSpot of Cambridge describes itself as an inbound marketing system that helps small and medium businesses get found online by search-engine optimization and "leveraging blogs and the blogosphere;" the desired result is that HubSpot customers convert more prospects into leads and customers.

HubSpot said it will use the funding to hire sales and product staff to support its growing customer base and surplus lead flow.

David Skok of Matrix Partners will join HubSpot's board of directors, said the company, which added that it raised $5 million in Series A financing in July.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:31 PM | Comments (0)

J.P. Licks is bringing its ice cream to Harvard Square

J.P. Licks, whose May speciality flavors include Fresh Banana Oreo and Margarita Sorbet, said it plans to open one of its Homemade Ice Cream Cafes in Harvard Square in late June.

A retail concept that was founded in Jamaica Plain in 1981 is returning to Cambridge after a long absence; it briefly had a store in Inman Square, which later became Christina's under different ownership.

At a location in Somerville's Davis Square, J.P. Licks appears to do a brisk trade.

But in Harvard Square, ice cream stores can seem as ubiquitous as espresso drinks and overeducated pedestrians. Among the square's ice cream options is Herrell's Ice Cream.

J.P. Licks founder and owner Vince Petryk is undaunted at the prospect of having his chain's eighth store surrounded by rival ice cream purveyors.

"We never compete," he wrote in an e-mail. "We just do our best, and it's worked for 27 years."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:43 AM | Comments (0)

Wrentham firm is penalized for wage violations

A Wrentham-based construction firm has agreed to pay nearly $110,000 for alleged wage and overtime violations.

The office of Attorney General Martha Coakley (right) today announced the settlement with 44-year-old Kathryn Earls and her firm, Air Safe Contracting Co.

The settlement resolves allegations that Earls and Air Safe failed to pay prevailing wages and overtime for work performed at public construction sites in the state.

The firm agreed to pay restitution totaling about $92,000 to several employees and an additional $17,000 in fines. Air Safe also agreed to refrain from bidding on public construction work for one year.

A phone call seeking comment from Air Safe was not immediately returned. (AP)

Posted by globebusiness at 11:22 AM | Comments (0)

Cabot forms joint venture to build facility in China

Boston specialty chemicals company Cabot Corp. said today that a subsidiary has signed a joint venture agreement with China National Bluestar Group to build a fumed silica manufacturing facility in China.

The joint venture, Cabot Bluestar Chemical Co., will invest about $40 million to build Cabot's fumed silica facility, which will have a manufacturing capacity of about 7,000 metric tons per year.

Fumed silicas are used in a variety of applications such as adhesives, sealants, coatings, inks and toners.

The plant will be located in Tianjin, China.

China National Bluestar is a unit of China National Chemical Corp., a state-owned enterprise better known as ChemChina. Bluestar owns 45 production facilities and 17 research institutes around the world. Cabot and Bluestar have an established relationship that dates back to 2004.

Cabot shares shed 1 cent to $33.35 in morning trading. (AP)

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

Frank: OK seen for Fed to pay interest on reserves

The US Congress is likely to give the Federal Reserve authority to begin paying interest on bank reserves this year, Rep. Barney Frank, chairman of the House Financial Services Committee, said today.

"I got a letter from them the other day and I am favorably inclined," the Massachusetts Democrat said after addressing a Boston business group, referring to a formal request from the US central bank for the authority.

Asked if it was likely approval would be granted this year, Frank responded, "yes."

The authority to pay interest on the reserves banks must hold at the central bank would give the Fed a tool to provide liquidity to financial markets without putting downward pressure on interest rates.

In 2006, Congress authorized the Fed to begin paying interest on reserves, but not until 2011.

If the Fed were able to pay interest on reserves, banks would have no incentive to lend out funds at rates lower than those the central bank was paying. This would enable the Fed to put a floor under interest rates even as it pumped funds into credit markets. (Reuters)

Posted by globebusiness at 10:17 AM | Comments (0)

Ad exhibit is now on display in Brookline

An exhibit titled "Advertising That Changed the Nation" is now on display at the Gallery on the Plaza in Brookline.

The exhibit showcases a history of public service ads, according to its organizers, the New England Institute of Art and the Advertising Council. The exhibit, which runs through June 30, was underwritten by Mullen, the Wenham ad agency.

The public service campaigns, which span a period of 65 years, include TV, print, and outdoor ads, organizers said.

Campaigns on display feature such iconic images as Smokey the Bear, McGruff the Crime Dog, and the Crying Indian, from the 1970s anti-littering campaign that featured Iron Eyes Cody (left).

One of Mullen's campaigns, "Buzzed Driving is Drunk Driving," is also part of the exhibit as are the United Negro College Fund's "A Mind Is a Terrible Thing to Waste" and a wear-your-seatbelts campaign titled "Crash Test Dummies."

"The New England Institute of Art's Gallery on the Plaza is the perfect venue for this show," Cheryl Amantea, chair of the bachelor's degree program in advertising at the college, said in a statement. "This is a wonderful opportunity to show students the history of ads that helped bring about social change as well as a unique opportunity - especially for our students in the advertising degree program - to experience first hand the power of advertising to benefit the common good."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:04 AM | Comments (0)

Rhode Island unemployment rate stays at 6.1 percent

Rhode Island's unemployment rate continues in the doldrums.

The Rhode Island Department of Labor and Training says the unemployment rate in April was 6.1 percent.

That's 1.1 percentage points higher than in April 2007.

It's also significantly higher than the national unemployment rate, which stood at 5 percent in April. The unemployment rate in neighboring Massachusetts dipped to 4.1 percent in April, its lowest level in nearly seven years.

The labor department says April marked the fourth consecutive month of job losses for the Ocean State. Sectors that saw the biggest losses for the month included government and manufacturing. (AP)

Posted by globebusiness at 7:36 AM | Comments (0)

Spalding turns to ace softballer Jennie Finch

The Spalding Group, the Springfield sporting goods brand, said it has signed up softball star Jennie Finch (left) to endorse its Dudley line of softball products.

Finch led the University of Arizona to the National Championship in 2001 and is set to participate in the upcoming Olympics in Beijing, Spalding noted.

Spalding said Dudley will introduce a branded line of Jennie Finch softballs as part of its 2009 product line, and added that she will be involved in product development across the fast-pitch line of products.

"I look forward to developing a line with Dudley that will encourage young girls to become part of the game," Finch said in a statement.

A division of Russell Corp., the Spalding Group consists of two business units, Spalding in Springfield and American Athletic Inc. in Iowa; combined, the two companies claim to be the largest supplier of basketball equipment in the world.

Besides softballs and basketballs, the division produces and markets footballs, volleyballs, and soccer balls, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:17 AM | Comments (1)

May 15, 2008

Strike avoided at Pilgrim nuclear plant

The owner of the Pilgrim nuclear plant in Plymouth and the union representing about 250 workers tonight reached a contract agreement just hours before the current pact expires, averting a threatened strike and lockout.

The settlement followed days of tense negotiations between the Utility Workers Union of America, Local 369, and Entergy Corp., of New Orleans. The union held a strike vote Wednesday, while Entergy had replacement workers ready.

Union officials said the pact increases wages but declined to disclose specifics before presenting them to members, who vote May 23 on ratification.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 8:35 PM | Comments (0)

Two rail companies combine efforts

Two railroad companies are combining efforts to expand freight capacity and improve service between Albany, N.Y., and Boston.

Billerica-based Pan Am Railways and Norfolk Southern Railway Co., of Norfolk, Va., today announced the creation of the Patriot Corridor, which also is expected to improve track quality and boost train speeds and reliability.

Each company will have a 50 percent interest in the new company, called Pan Am Southern.

Pam Am will transfer its 155-mile main line track between Mechanicville, N.Y., and Ayer, along with 281 miles of secondary and branch lines in New England and New York, to the venture.

Norfolk Southern will transfer cash and other property valued at $140 million to the venture.
The project needs approval from the US Surface Transportation Board.
(AP)

Posted by globebusiness at 7:59 PM | Comments (0)

One Laptop Per Child teams up with Microsoft

The One Laptop Per Child Foundation, of Cambridge, will next month start distributing a version of its XO laptop that will run Microsoft Corp.’s Windows operating system. While the move has long been expected, it represents a major shift for OLPC, which has relied on the free Linux operating system.

‘‘It’s not about the operating system, it’s about the educational experience,’’ said OLPC’s chief executive, Chuck Kane. He said the foundation’s Sugar suite of educational software is being modified to run on top of Windows.

The OLPC project aims to persuade developing countries to buy millions of XO laptops and distribute them free to poor children. About 600,000 machines have been purchased so far, for distribution in countries like Nigeria, Peru, and Mexico.

But Kane said that some countries, such as Egypt, want machines that run Windows, the most common personal computer operating system in the developed world. ‘‘They said we would be in a much better position with a Windows-capable machine,’’ he said.

Meanwhile, Microsoft was working on a version of its Windows XP operating system that would work on the relatively low-powered XO computer.

A statement from Microsoft said the Windows XP version of the XO will be capable of using hundreds of thousands of Windows-compatible programs and hardware accessories.

OLPC will start distributing Windows-based laptops in June. They will cost about $10 more than the original Linux-based XO machines; Microsoft is charging just $3 for the Windows software.
At first, XO users will have to insert a memory card to run Windows. Kane said the foundation and Microsoft are working on an XO that will have both operating systems built in. The user will be able to choose either one.

Mike Cherry, lead analyst for Windows at Directions on Microsoft, an independent software research firm, said Microsoft doesn’t want cheap Linux-based computers to threaten the dominance of Windows, and getting Windows onto the XO is a way to prevent this. ‘‘I think it’s along the lines of not allowing anybody else to get a toehold,’’ Cherry said.
(By Hiawatha Bray, Globe staff)

Posted by globebusiness at 7:42 PM | Comments (0)

Top executive leaving Sepracor

Long-time Sepracor Inc. chief financial officer David Southwell said he is resigning next week to pursue “other entrepreneurial activities.” Sepracor said it will replace Southwell with Robert Scumaci, the company’s executive vice president for corporate finance.

The Marlborough drug maker is best known for its Lunesta sleep aid and Xopenex, an asthma treatment.

Southwell has been chief financial officer for 14 years.
(By Todd Wallack, Globe staff)

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

Algae company raises $14m in venture round

A Cambridge firm developing algae farms to recycle carbon dioxide from industrial emissions and provide feedstock for biofuels and other products said it raised nearly $14 million in venture capital. GreenFuel Technologies Corp., founded in 2001, said it is using the money to further develop its farming technology and move toward commercial scale operations.

The lead investors in this fundraising round are venture capital firms Access Private Equity of New York, Draper Fisher Jurvetson, of Menlo Park, Calif.; and Polaris Venture Partners of Boston. Bob Metcalfe, GreenFuel's interim chief executive, said the funding retires $6.3 million in debt and adds $7.6 million in new capital to launch algae farming projects.

The company has successfully tested its concept of using algae, which, like all plants, absorbs carbon dioxide and releases oxygen, to recycle carbon dioxide at several industrial plants. Carbon dixoide is a greenhouse gas contributing to global warming. In addtion, algae grown, harvested and processed using GreenFuel's methods can be used in feeds, food and fuels, including algae biodiesel, the company said.
(By Robert Gavin, Globe staff)

Posted by bdinardo at 3:52 PM | Comments (0)

Salary.com tumbles on loss and new investments

Shares of Salary.com Inc. plunged today after the Waltham software maker reported disappointing fiscal fourth-quarter results, gave a weak first-quarter forecast and shifted its business strategy.

Late yesterday, the company reported a larger-than-expected fiscal fourth-quarter loss on lower than expected sales and forecast fiscal first-quarter revenue below Wall Street expectations.

Shares tumbled $1.91, or 31 percent, to $4.31 in afternoon trading on the Nasdaq Stock Market, having fallen to $3.88 earlier in the sesssion, its lowest price since its initial public offering opened Feb. 15 at $13.50.

The company also said it plans to "significantly increase" its sales and marketing spending in fiscal 2009, which will lead to larger losses. Ultimately the company said the investments will lead to a profit in fiscal 2011 and revenue of $65 million to $72 million.

In fiscal 2009, the company expects to lose between $22 million and $25 million, excluding one-time costs.

The company also changed chief financial officers, replacing Chris Power with Bryce Chicoyne. The company said there were "no known disagreements with Mr. Power on any matters relating to Salary.com's operations, policies or practices."

Power became CFO in January.

Analysts from Needham & Co., Pacific Crest and Wachovia downgraded the stock to the equivalent of "Hold" from "Buy" on the news. Philip Rueppel of Wachovia said the change in strategy is risky, and it will take at least two or three quarters before the results are apparent. (AP)

Posted by globebusiness at 3:24 PM | Comments (0)

A dream job with a pay cut? No problem

Eighty-two percent of US workers would pursue their dream job even if it meant taking a reduction in pay, according to a global poll conducted by Monster.

With a presence in Maynard, Monster is a job-search and job-recruiting website, and it said that 34,140 Monster users in North America and Europe cast votes on its home page on the topic of dream jobs.

(At right, one person's idea of a dream job: Riding shotgun on the Bruins Zamboni.)

According to Monster's reading of the poll, which was released today, Europeans were a bit more cautious about trading off lower pay for a job they could feel passionate about.

Monster said in a press release: "Thirty-four percent of workers in France and 27 percent of workers in Germany are not willing to sacrifice pay for ultimate job satisfaction. Workers in Hungary are least willing to take a cut in pay, with 38 percent answering, 'No.'"

Over the last year or so, Monster has forged relationships with many media companies and newspaper publishers, including The New York Times Co., owner of The Boston Globe, to sell help-wanted advertising.

Monster's parent company is Monster Worldwide Inc. of New York.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:53 PM | Comments (0)

Gas prices surpass highs of early '80s

Average gasoline prices in the Boston area in April topped the prices of the energy crisis of the early 1980s, the Bureau of Labor Statistics said.

The average price of all types of gasoline hit $3.34 a gallon in April, about 7 cents more than the inflation-adjusted price of March 1981, when prices peaked in the aftermath of the Iranian revolution. The average price of unleaded regular in the region, however, remained below the 1981 record. In 2008 dollars, unleaded regular cost $3.45 cents a gallon in 1981, compared to $3.31 cents in April, the BLS said.

Boston gasoline prices, however, were lower than the national average in April. Nationally, the average price of all types of gas hit $3.49 a gallon, 15 cents more than Boston and 12 cents above the inflation adjusted price in March 1981. Unleaded regular prices average $3.44, 13 cents more than Boston and 4 cents above the inflation-adjusted 1981 price.

Prices have continued to rise in May. The average price of a gallon of regular unleaded gasoline in Massachusetts last week was $3.68 a gallon, according to the US Energy Information Administration.

The highest prices for gasoline in Boston were recorded in September 2005, in the aftermath of Hurricane Katrina -- $3.59 a gallon. To find the lowest gas prices in the area, click here.
(By Robert Gavin, Globe staff)

Posted by bdinardo at 1:08 PM | Comments (1)

Mass. employers cut 2,400 jobs in April

Massachusetts employers cut about 2,400 jobs in April, ending a six-month streak of gains in payroll employment, the state Department of Workforce Development reported today. The unemployment rate, however, dropped to 4.1 percent from 4.4 percent in March, according to a separate survey. That's the lowest rate since September 2001 and nearly a point lower than the national rate, 5 percent.

The state economy in recent months has performed better than the nation's because of the strength of its healthcare and technology sectors. Education and healthcare added 3,200 jobs in April, and 14,500 over the past year. Information employment, which includes software publishers, rose 300, and has gained 1,600 jobs in the past year. Another key sector, professional and business services, shed 600 jobs in April, but has gained 7,400 jobs over the year.

Consumer- and housing-related sectors, however, continued to lose jobs. Construction employment fell by 900 jobs in April and is down 3,400 for the year. Retailers cut 1,000 jobs in April and 3,100 since April 2007.

Overall, state employment has grown by 23,000 jobs over the past year, or just under 1 percent. The state still has 93,000 fewer jobs than in early 2001, when employment peaked at the end of the last expansion.
(By Robert Gavin, Globe staff)

Posted by bdinardo at 12:14 PM | Comments (0)

United is changing a frequent flyer policy

United says it will no longer award a minimum of 500 frequent-flier miles on each flight starting with its July 1 flights no matter when they were ticketed.

Now travelers will only get credit for the actual distance flown.

The loss of this little perk will matter little to most of us but will sting many frequent and business customers who used to be able to rack up big miles this way.

It follows a move by US Airways, a United code-sharing partner, which did the same thing back in February.

Oh, and did I mention US Airways and United also happen to be in merger talks?
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 11:27 AM | Comments (0)

Dunkin' Donuts pledges gift to the CIA

The parent of Dunkin' Donuts said today it has pledged $1 million to the Culinary Institute of America to support a CIA program that seeks to "elevate" Latin American cuisine.

The parent of the coffee-and-baked-goods chain is Dunkin' Brands Inc. of Canton.

The Culinary Institute of America is a college offering degrees in culinary and baking and pastry arts. It has a campus at Hyde Park, N.Y., and its alumni include Todd English, a chef well known in these parts. (At left, CIA students.)

Dunkin’ Brands said its gift, to be paid over five years beginning in 2009, will support baking and pastry kitchens at both the CIA’s new campus in San Antonio, Texas, and its main campus in Hyde Park.

With the pledge, Dunkin' Brands said it becomes a founding donor of the college's “El Sueño” initiative.

“El Sueño,” which means “the dream,” has been created by the CIA with a goal of elevating Latin American cuisines to their rightful place among the great cuisines of the world, the college said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:17 AM | Comments (0)

Ocean Spray kicks off Cranergy promotion

Nike has consummate golfer Tiger Woods pushing its products. Dunkin' Donuts has Red Sox closer Jonathan Papelbon. And now, at least for a day, Ocean Spray Cranberries Inc. has Richard Simmons, a man of incomparable, if not indescribable, talents.

Ocean Spray, a $1.7 billion growers cooperative with headquarters in Lakeville and Middleborough, said it has kicked off a campaign that will offer more than a half a million free samples nationwide of its new Cranergy Energy Juice Drink, a naturally energizing beverage whose ingredients include fruit juice and green tea extract.

Ocean Spray said in a press release: "The effort will commence with the dynamic Richard Simmons, who will appear at the Cranergy Fuel Station that is being created in New York City's Penn Station on May 15, 2008. New York commuters can stop by to meet the fitness guru and fuel-up on natural energy at a life-size human filling station. The Cranergy Fuel Station attendants will pump over 35,000 samples from 7:00 a.m. to 6:00 p.m., and Richard will be available to meet visitors and provide invigorating tips and advice from 12:00 p.m. to 2:00 p.m."

Also beginning in May, Ocean Spray said it will provide samples of Cranergy in select Wal-Mart, Sam's Club, Stop & Shop, Giant Foods, and other participating stores across the country.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:21 AM | Comments (0)

Adobe agrees to buy Waltham office building

Adobe Systems Inc., a California software company, said today it has agreed to buy a "green" building under construction in Waltham in a transaction valued at $44.7 million.

The Waltham property on Hickory Drive is called Overlook Center, and it will have just under 110,000 square feet of space when completed, Adobe said.

The seller is Normandy Real Estate Partners, a real estate private equity firm with headquarters in New Jersey.

Upon completion, the new Adobe property will feature contemporary design elements of glass and steel and include approximately 360 spaces of on-site covered parking, a cafe, fitness center, triangular conference facility, abundant natural light, and a courtyard drop-off area, Adobe said.

Adobe said it currently occupies leased office space in Newton, home to about 200 employees; once fully complete, Overlook Center will house those employees and provide Adobe with room for continued growth in the Boston area, Adobe said.

"The Boston area, with its rich ecosystem of technical talent and innovation, is important to Adobe's business and this purchase reinforces our commitment to having a significant presence in the area," Rick Treitman, site leader for Adobe's Boston operations, said in a statement. "Like many of our other sites around the world, the Overlook Center site will be a cutting-edge building that reflects our commitment to eco-friendly operation and community involvement while offering first-class amenities for our employees."
(By Chris Reidy, Globe staff)

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

Herb Chambers will break ground in Burlington

Auto dealer Herb Chambers plans to break ground tomorrow for a new Audi/Porsche dealership in Burlington.

(Above is a rendering of what the new dealership will look like.)

Six weeks ago, Chambers presided over a similar ground-breaking ceremony in Westborough for an Infiniti dealership, and in the next few weeks, he plans to do the same for a new BMW dealership in Sudbury.

The US economy may be sluggish; consumers are fretting about high gas prices, but Chambers is forging ahead and reinvesting in his New England auto dealership empire.

In Burlington, that means relocating the Audi/Porsche dealership he bought about a year ago to larger space nearby.

"I hear everywhere that the auto business is bad," he said, "but we don't experience it."

Domestic auto brands, such as Ford, General Motors, and Chrysler are challenged, Chambers said, but some foreign brands are a different story.

According to Chambers, officials at Honda Motor Co. told him that Honda volume sales in New England were up 18 percent in April compared to a year ago.

Four of Chambers' 44 dealerships are Honda and 15 are for Ford, GM, or Chrysler brands, he said.

With recent ads heavily promoting his used-car business, Chambers said he also saw an uptick in used-car sales in April.

Some people are trading in their gas-guzzling SUVs for more fuel-efficient cars, but others are keeping their SUVs and buying a more fuel-efficient vehicle for every-day use.

"They'll use the SUV when they go on vacation to New Hampshire or the Cape," Chambers said, "but they want something else for the every-commute."

Maybe that's why sales of gas-sipping Vespas are booming.

Last month, Chambers said he sold nearly 80, compared with 35 for April 2007.

Speaking about the auto market in general, Chambers said: "The market hasn't gotten any bigger. We're just getting a bigger piece of it."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:37 AM | Comments (0)

MIT $100K competition awards its top prize

The winning team of the MIT 100K Entrepreneurship Competition. From left: Krishna Yeshwant, Roozbeh Ghaffari, Hayat Sindi, Carol Waghorne, Jon Puz, and Gilbert Tang. Photo was supplied by MIT. Photo credit: Jeremy Gilbert

A team proposing diagnostic-tool technology that aims to improve the health care management of patients in developing countries won the $100,000 prize at the MIT $100K Entrepreneurship Competition awards ceremony held last night on the campus of the Massachusetts Institute of Technology.

This year’s winner is Diagnostics-For-All, a not-for-profit that seeks to deliver affordable point-of-care diagnostic solutions to the global medical community; based on patent-pending technology developed in chemist George Whitesides’ laboratory at Harvard University, DFA’s offering will serve as a platform for simple, portable, low-cost, and easy-to-dispose diagnostic tools for developing countries, the competition's organizers said.

Now in its 19th year, the MIT $100K serves as an economic barometer for emerging markets that are getting funded by venture capitalists. Since its launch, the competition has led to the creation of more than 85 companies with an aggregate market capitalization of approximately $10 billion, the competition's organizers said.

In the competition's "elevator pitch" category, honors went to Convalent Solar, organizers said.

Covalent Solar won the competition’s first ever $10,000 audience prize.

"Using audience response system technology provided by $100K mobile semi-finalist team Poll Everywhere, the crowd morphed into a brainy version of American Idol, texting their votes in immediate response to the seven finalists’ public summaries of their offerings," organizers said in a press release. "Covalent Solar’s product is an MIT-invented solar concentrator photovoltaic technology, based on the redirection of light using dyes, which is simpler and less expensive than existing methods."
(By Chris Reidy, Globe staff)

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

May 14, 2008

Google to blur faces in Street View images

Following privacy complaints, Google is beginning to blur the faces of people captured in photos taken for its Street View service, an Internet mapping program.

Street View was not the first to augment online maps with photos, but the detail and breadth of images on the site unsettled some users when it was launched last year.

Specially equipped vehicles cruised city streets, making panoramic images. The photos revealed people falling off bikes, exiting strip joints, sunbathing — everyday, in-public things but nonetheless, things they might not want preserved for posterity.

Some privacy advocates, including the influential Electronic Frontier Foundation, suggested that Google blur the images of people. That, they said, would not inhibit Street View’s goal of helping people become familiar with the look and feel of a location before they travel there.

Google says it has indeed begun using a facial-recognition algorithm that scans photos for mugs to blur. The changes are happening first in scenes from New York, before slowly expanding to the other 40 cities, including Boston, in Street View.
(AP)

Posted by globebusiness at 7:25 PM | Comments (0)

OSHA alleges violations at plant where 3 died

The owner of the Salem Harbor Power Station, where three workers died in an explosion last year, has been cited by federal regulators for alleged safety violations.

The Occupational Safety and Health Administration today said that Dominion Energy New England failed to take effective steps to protect employees against burn hazards and other injuries.

The company was issued 10 serious citations that carry a proposed fine of $46,800.

A spokesman said the company will contest the citations and has already addressed most of OSHA’s alleged safety violations.

Mark Mansfield, Phil Robinson, and Matthew Indeglia were killed when a boiler tube ruptured on Nov. 6, blasting them with steam.

OSHA said the portion of the boiler where the rupture occurred had not been entered or inspected in more than nine years.
(AP)

Posted by globebusiness at 7:15 PM | Comments (0)

More Fidelity funds reject genocide-linked proposal

Shareholders of six more Fidelity Investments funds rejected today a proposal to halt investments in companies linked to genocide, bringing to 12 the number of funds to block the idea floated by activists.

The rejection of the proxy proposal at the world's biggest mutual fund company demonstrates the difficulty that activists face in linking investments to social and moral issues even as pressure grows on companies and governments to cut investment ties with companies doing business in places such as Sudan.

The non-binding proposal had asked the boards of 32 Fidelity funds in all to "screen out investments in companies that, in the judgment of the board, substantially contribute to genocide, patterns of extraordinary and egregious violations of human rights, or crimes against humanity."

The proposal garnered support ranging from 20 percent to 31 percent from the six funds.

"Proposal No. 3 has not been approved," a Fidelity official told shareholder meetings at its Boston office, referring to the human rights resolution.

Six other Fidelity funds already rejected the proposal in the past two months, making it the first U.S. mutual fund group to hold votes on such as measure.

Fidelity, which manages about $1.5 trillion in assets in 450 funds, had urged shareholders to reject it. The company has long maintained its investments are legal under U.S. laws and it is obligated to achieve the best returns for shareholders.

Company officials said at the meetings today that investors who did not agree with its stand on the issue were free to exit the funds. They said the danger in adopting the proposal was that similar ones around a whole host of issues could crop up.

Eric Cohen, chairman of Boston-based Investors Against Genocide, which spearheaded the resolution, said the proposal was defeated "primarily because Fidelity is actively opposing it and because institutional investors voted with management."

Cohen urged Fidelity's board of trustees at the meeting to remain neutral on the proposal and not recommend its rejection to shareholders. A representative of the independent trustees said the trustees would consider the request.

Human rights activists have been campaigning for the past two years to get Fidelity and other mutual fund firms to divest Sudan-linked holdings in protest against human rights abuses in the Darfur region.

They have targeted Fidelity, Warren Buffett's Berkshire Hathaway Inc and other funds over their holdings of PetroChina and other Asia-based oil companies because of their ties to Sudan.

Experts estimate 200,000 people have been killed and 2.5 million uprooted in the Sudanese region's conflict, which started in 2003 and pits mostly non-Arab rebel groups against the Khartoum government and Arab militias.

The activist campaigns have had some success. Many U.S. universities and states have taken steps to divest Sudan-linked holdings. Last year, a Fidelity fund sold a big chunk of its PetroChina holdings, while Buffett sold his entire holding.

The U.S. Congress passed legislation last year to shield mutual funds and private pension funds from investor lawsuits if they divested shares of companies active in Sudan.

The proposal may surface at other shareholder meetings this year. It has also been filed with money managers such as Vanguard Group, Franklin Resources Inc and Barclays Plc , activists say. (Reuters)

Posted by globebusiness at 3:32 PM | Comments (0)

Deadline looms in talks at Pilgrim Nuclear Station

The operator of Pilgrim Nuclear Station said today that it would run the plant with replacement workers if a contract covering more than 250 employees expires late tomorrow with no new labor agreement or extension.

Negotiators for New Orleans-based plant owner Entergy Corp. were meeting in Plymouth today with representatives for 254 members of Utility Workers Union of America Local 369. Spokesmen for both sides said sticking points remained over wages, benefits and other issues as negotiators tried to replace a four-year pact set to expire at 11:59 p.m. Thursday.

Entergy spokesman Dave Tarantino said more than 100 replacement workers called in from other company locations and from contractors were prepared to keep the plant running if no contract deal or extension were reached by the deadline.

Allowing unionized employees to continue running the plant without a labor agreement could put its operators in violation of federal nuclear plant safety rules, Tarantino said.

"We can't have people working at the plant who could leave at any moment, and leave us subject to violations of our federal license," he said.

Union spokesman Jeremy Crockford questioned whether the plant could be safely run with replacement workers.

"Do you want a nuclear plant run by people who are going to cross picket lines?" he said.

Union members began voting today on whether to authorize leaders to call a strike if talks break down or if no agreement to extend the contract is reached. Results of the balloting were expected Wednesday night.

The contract talks cover nearly half of the 650 workers at the plant. Ninety other members of Local 369 are covered under a different contract.

Pilgrim Station, the only nuclear plant in Massachusetts, can produce 685 megawatts, enough to provide electricity to more than 500,000 homes. Entergy took ownership of the coastal Plymouth plant in 1999 from the former Boston Edison Co. (AP)

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

Press gets sneak peek at Apple Store

Reuters photos

Boston's new Apple Store is made its press debut on a morning of peerless sunshine. The light streams through a vast skylight of tempered glass. The daylight scatters through the glass spiral staircase beneath, rebounds off gray granite floors and gray aluminum walls. Echoes of light seem to fill the place, making the electric lights seem almost unnecessary.

Behold the halo effect, Apple's best friend. At the brink of death a decade ago, Apple's now the company that can do no wrong. The company has earned its gleaming reputation with products like the iPod, the iPhone, and the MacBook Air--devices powerful and beautiful in equal measure.

Each floor of Apple's largest retail store in the United States is stocked with devices to gawk at, try out, and play with -- Macs and related accessories on the first floor, iPods and their accessories on the second floor, and a third floor devoted to services like the Genius Bar. All are connected by a spiral glass staircase at the center of the store.

The biggest-name celebrity at the press opening was Mayor Thomas M. Menino (left). While he admired the gadgets, he didn't try any out -- he occasionally surfs the web, but doesn't own his own computer, hopping onto his wife's when he needs an Internet fix. But this is the guy who didn't become a convert to bicycling until deep into his mayoralty, and has now become an ardent cyclist. So maybe Apple will show the mayor the way.

Time and again, Apple serves up features like touch-screen controls that seem unnecessary, irrelevant -- until you try them. Apple vice president Ron Johnson says the new store's "green roof" is that kind of innovation. A rectangle of lush grass surrounds the skylight. This lucky reporter was taken up to see it; store customers never will, unless they look down at it from a room in one of the nearby hotels.

So what's the point? Johnson admits he has no idea whether growing grass on the roof will make the store more of a friend to nature, or compensate for the megawatts of electricity consumed by over a hundred Mac computers. But, he said, if other new buildings adopt the same policy, it just might add up.

Perhaps. In the meantime, the lawn upstairs will certainly aid the sales environment downstairs, as ecologically-minded consumers clamor to buy from a company that cares. Whatever the benefit to the Boston atmosphere, the grass roof certainly helps buff up the halo.
(By Hiawatha Bray, Globe staff)

Posted by bdinardo at 2:50 PM | Comments (0)

ACC College Championship logo is unveiled

The Atlantic Coast Conference and Fenway Sports Group unveiled the logo for the 2009 ACC Baseball Championship, which will be held next May at Fenway Park.

According to the Fenway Sports Group, this will be the first time that Fenway Park will play host to a collegiate baseball championship.

Made up mostly of Southern schools, the ACC includes Boston College.

Fenway Sports Group is the sales and marketing arm of the company that owns the Boston Red Sox and Fenway Park.

The New York Times, corporate parent of The Boston Globe, owns a minority stake in the Red Sox.
(By Chris Reidy, Boston Globe)

Posted by globebusiness at 2:15 PM | Comments (0)

IBM will offer business intelligence via BlackBerry

Technology giant IBM Corp. said today that it has started selling software that lets customers access its Cognos business intelligence software via BlackBerry mobile devices.

Armonk, N.Y.-based IBM acquired the business intelligence programs in January with its purchase of Canada's Cognos Inc. for about $4.9 billion. Cognos has its US headquarters in Burlington and when IBM first announced the deal late last year, Cognos said it employed nearly 400 people in Massachusetts.

The device maker, Research in Motion, is encouraging businesses to create software specifically for the BlackBerry so that it can boost usage beyond the e-mail, messaging, calendar and phone services for which it is best known.

The Cognos program, which sells at a list price of $300 per user, allows customers to view real-time analytics on the state of their business on their BlackBerrys.

The computing giant has also introduced programs that allow BlackBerry users to quickly locate and communicate with colleagues with expertise in specific business areas.

A third new product from IBM allows users to access personalized content from their corporate websites via the BlackBerry, IBM said. (Reuters)

Posted by globebusiness at 1:49 PM | Comments (0)

Airline launches Logan-to-Milan flight

Italian airline Air One said today it is launching its first flights between the US and Italy, including a flight from Boston's Logan International Airport to Milan.

Air One said its inaugural flight to Boston will arrive at Logan International Airport on June 14; the Boston-Milan connection will fly daily, excluding Tuesday and Thursday.

Air One noted in its press release, "From lift-off, Air One passengers will be immersed in Italian culture, thanks to Italian cuisine, in-flight entertainment offering Italian films, and with onboard outfitting that guarantees maximum relaxation, making the flight an authentic 'Made in Italy' experience."

(At left, a Milan landmark.)

The press release also noted that Milan is "the industrial and financial heart of Italy, as well as the point of departure to some of Northern Italy's top destinations: elegant Turin; romantic Verona, the city of Romeo and Juliet; exclusive Lake Como, and the magnificent Alps."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:43 PM | Comments (0)

Chamber will honor distinguished Bostonians

The Greater Boston Chamber of Commerce said it will induct four people into the Academy of Distinguished Bostonians and welcome its first first woman chair - Bentley College president Gloria Larson (left) - at a ceremony set for tonight.

The inductees to the academy include Micho Spring (right), who was chief of staff for former Boston Mayor Kevin White and deputy mayor; Spring now heads the New England office of Weber Shandwick, a public relations firm.

Also set to be honored at the chamber's 99th annual meeting and dinner tonight at Boston Marriott Copley Place is Ted Cutler, president of GWV Vacations of Needham; he is a noted philanthropist who currently serves as chairman of Hebrew College and has served as chairman for Emerson College, Combined Jewish Philanthropies, Beth Israel Deaconess Medical Center, and other organizations.

Another inductee is Lawrence K. Fish, chairman of the Citizens Financial Group, a Providence company that operates Citizens Bank. Under his leadership, Citizens has grown into one of the largest banking operations in the country. Fish serves as a director of Citizens' parent company, Royal Bank of Scotland Group, as a member of the MIT Corp., and as an overseer of the Boston Symphony Orchestra.

Rounding out the foursome is Peter Meade, who currently serves as chairman of the Rose Kennedy Greenway Conservancy, which manages the parks created as a result of the Big Dig construction project. He is a former executive vice president of Blue Cross Blue Shield of Massachusetts, the state's largest health insurer and, before that, he was the host of a talk show on WBZ-AM radio for a decade.

The chamber created the academy in 1983. Since then, 79 members have been inducted, ranging from sports figures such as Celtics greats Arnold "Red" Auerbach and Bill Russell (right) to politicians such as US Senators Edward M. Kennedy and Paul E. Tsongas to business leaders such as business leaders such as Digital Equipment Corp. founder Kenneth Olsen.
(By Chris Reidy, Globe staff)

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

Is your office making you fat?

Work places are such snack-rich environments that nearly two out of three New Englanders find it a challenge to stick to a healthful diet while on the job, according to a new survey from Peapod LLC.

Illinois-based Peapod is an Internet grocery and delivery service and also a corporate sister of Stop & Shop Supermarket Cos. of Quincy. Both are owned by Royal Ahold NV, a Dutch food company.

When it comes to empty calories and carbohydrates, offices are culinary occasions of sin, not to mention virtually vegetable-free zones where all too many workers yield to the readily available temptations of chips and candy, the Peapod Biz Bites Survey found.

Only 7 percent of respondents to the New England survey claimed to "eat healthier" in the office than at home, said Peapod, which added that workers cited unhealthful snack options as the number one obstacle to "eating healthy" while at work.

So, boss, if you want a truly lean-and-mean work force, stock up the office canteen with plenty of tofu and rain-washed nut meats. Your health-conscious minions will thank you.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:26 AM | Comments (0)

Raytheon says Fish Hawk passes anti-sub test

Waltham defense contractor Raytheon Co. said today that it has successfully demonstrated the Fish Hawk, an anti-submarine weapon system, in the Gulf of Mexico.

The Fish Hawk is a kit that attaches to Raytheon's MK54 lightweight torpedo and enables submarine-hunting aircraft such as the P-8 and P-3 Orion to deploy torpedoes from high altitudes while at a safe distance from a target, Raytheon said.

During the test, an aircraft flying at 15,000 feet jettisoned a Fish Hawk-equipped dummy torpedo, which glided more than 10 nautical miles before splashing down well within the small target area, Raytheon said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:29 AM | Comments (0)

Blu-ray will help turn DVD burners into commodities

The adoption of Sony Corp.'s Blu-ray will accelerate in 2009, but DVD burners will continue to be "the leading volume product until 2012," according to a new report from IDC, a market intelligence firm with headquarters in Framingham.

Earlier this year, the format war over high-definition video disks apparently ended, with Sony and Blu-ray besting the rival HD DVD format championed by Toshiba Corp.

Overall PC market growth, driven by portable PCs, will give the worldwide CD/DVD market a moderately positive outlook in 2008 and lead to increased demand for slim drives, the IDC report said.

"Despite Blu-ray's win over HDD in the format war, Blu-ray drive adoption will be limited in 2008 because of their high price and only moderate consumer interest," Wolfgang Schlichting, the research director for removable storage at IDC, said in a statement.

Another key point made in IDC's report: DVD burners will continue their race to become a commodity market, and aggressive volume manufacturers will continue to drive down the price, pushing technology leaders out of the mainstream optical disc drive market.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:25 AM | Comments (0)

Menino to make pilgrimage to Mac mecca

First we discover that Mayor Thomas M. Menino is a bicycle enthusiast; today we learn he may be an Apple buff.

According to his press office, Menino is scheduled today to get a sneak peek and a tour of the new store from Apple Inc. on Boston's Boylston Street.

The media is advised that there could be photo ops with Menino, presumably posing against a backdrop of iPod Nanos and MacBook Airs.

For the true Apple geek, the opening of the first Apple store in Boston is a case of high excitement only painfully restrained; the store is scheduled to open to the general public tomorrow night. For some background about the store, please click here to read a recent Globe story.

No word yet on whether Menino will leave a memento of his presence during his Apple pilgrimage.

A Globe story from earlier this week chronicled how store neighbor Michael Oh of Tech Superpowers recently planted his company's T-shirt in wet cement while construction workers were putting the finishing touches on the new store.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:46 AM | Comments (0)

May 13, 2008

American Science wins $9.2m deal for X-ray system

American Science and Engineering Inc., a maker of X-ray inspection systems, said it received a $9.2 million contract to supply a Latin American customs agency.

The Billerica company will deliver Z Backscatter vans to the unnamed country’s agency and provide operator training, service, and warranty support.

The Z Backscatter is a portable X-ray system located inside a van that can detect drugs, weapons, contraband, and stowaways. It can X-ray an object while driving past it, and can be operated remotely.

Separately, the company reported fiscal fourth-quarter earnings fell more than 50 percent, as research and development costs rose.
(AP)

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

Texas company buys Waltham's AmeriVault

AmeriVault Corp., an online data-backup company in Waltham, has been acquired by PHNS Inc., of Dallas, which makes business process software for the healthcare industry.

Financial terms were not revealed.

AmeriVault was founded 10 years ago and provides data backup and disaster recovery services for small and medium-size businesses. It will remain in Waltham as a PHNS subsidiary.
(By Hiawatha Bray, Globe staff)

Posted by globebusiness at 6:21 PM | Comments (0)

FDA clears two new Boston Scientific defibrillators

The medical device maker Boston Scientific Co. today said that the Food and Drug Administration has approved two of its new heart devices.

The FDA approved the Cognis defibrillator and the Teligen implantable defibrillator, both of which are used to treat heart failure.

Shares of Natick-based Boston Scientific rose 20 cents to $13.21 in after-hours electronic trading, from their close at $13.01 during the regular session.
(AP)

Posted by globebusiness at 6:15 PM | Comments (0)

Corporate Express rebuffs sweetened Staples bid

Corporate Express NV says a sweetened takeover bid from Staples Inc. is still too low.

Netherlands-based Corporate Express says its boards met today to consider the latest $2.47 billion offer from its rival office products supplier. Corporate Express says the bid continues to undervalue the company, even after Framingham-based Staples raised its offer by 10 percent earlier today.

Corporate Express had swiftly rejected Staples' initial usnolicited bid of 7.25 euros per share, made in February. Staples raised that to 8 euros per share today, and threatened to take its proposal directly to Corporate Express shareholders. Corporate Express responded this morning with a statement saying it was willing to talk with Staples. (AP)

For previous coverage of Staples' bid, please click here.

Posted by globebusiness at 3:47 PM | Comments (0)

Velcro marks anniversary with 1.5-mile-long r-r-r-rip

MANCHESTER, N.H. - Plenty of products last for 50 years, but few have the staying power of Velcro fasteners.

The signature sound of Velcro hook-and-loop tape being torn apart rippled along a parade route today to mark half a century since the Velcro brand was trademarked in the United States. Former and current employees of Manchester-based Velcro USA lined up for more than a mile to rip apart 8-inch lengths of the company's famous fasteners.

Lorraine Thiem, who retired after 27 years as a weaving instructor, excitedly ripped and reattached her swatch in anticipation as she waited for the wave to reach her under a tent in the company's parking lot. She left the company 13 years ago but still feels a pang of pride whenever she spots a Velcro product.

"I think, 'I had a hand in making that,"' she said. "It's just wonderful."

The hook-and-loop tape has its roots in Mother Nature - Swiss engineer George de Mestral came up with design in the 1940s after studying burrs that stuck to his dog's fur and his wool pants during a walk in the woods. He named his invention Velcro, a combination of "velour" and "crotchet," the French words for velvet and hook.

Production began in France, but by 1958, administrative and manufacturing operations had moved to Manchester, where textile mills had a long history. Since then, the product has been used in applications ranging from the humble to the high-tech, on everything from sneakers and diapers to astronaut equipment and military body armor.

Though Velcro products are so pervasive that the company's name is virtually synonymous with hook-and-loop tape, Velcro's patent expired in 1978, allowing competitors such as 3M to move into the market. But Velcro remains the industry leader, said company President Joan Cullinane.

"Any place you look, our product is used," she said. "In a day, you probably touch it 10 times in 10 different applications. That's a pretty significant market we're driving."

Velcro USA has a work force of 600 in Manchester and Somersworth, N.H., as well as a manufacturing plant in Mexico, a warehouse and distribution center in Arizona and a marketing office in Michigan.

In recent years, Velcro has expanded into the construction industry, Cullinane said, with products aimed at making it easier to put walls up and floors down. Her personal favorite is the company's "wrap strap" product, which can be used to keep power cords organized inside and plant stems upright outside.

In 1987, a company official told a reporter that Velcro was working on a silent version of its hook-and-loop tape, but Cullinane declined to comment on the status of that goal.

"I can't talk about that," she said. "Good question, and to be determined." (AP)

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

Finale is coming to the North End

Finale Desserterie, a small dessert chain that sprang from a student project at Harvard Business School, plans to open one of its dessert restaurants in the North End in the fall, Mayor Thomas M. Menino said.

The restaurant will face the new Rose Fitzgerald Kennedy Greenway and will be located in some of the space once occupied by a Martignetti liquor store, the Boston Redevelopment Authority said; at the intersection of Salem and Cross streets, Finale will occupy about 2,400 square feet of space.

(At right is a Finale dessert called Magnanimous Molten Cake, which is served with chocolate, vanilla, and coffee gelato. The photo was supplied by Finale.)

Menino made the announcement while marking the opening of Finale's new pastry kitchen and corporate headquarters in Allston.

The restaurant in the North End, long a mecca for food buffs and pastry lovers, will be the fifth in the Finale chain.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:45 AM | Comments (0)

Sprout closes on a financing round

A company called Sprout said today it closed a $5 million Series B financing led by Polaris Venture Partners, a venture capital firm with offices in Waltham.

Mitch Kapor, founder of Lotus Development Corp., also participated in the round, Sprout said.

Sprout is a platform for easily creating, publishing, and managing sophisticated rich media content on the Web; with Sprout, anyone can quickly and easily build widgets, mini-sites, banners, and other rich media content for their blog, social networking profile, or website, said Sprout, which has offices in San Francisco and Honolulu.

A recent Globe story noted that local venture firms that once largely focused on local companies are investing farther afield.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:48 AM | Comments (0)

TJX profit climbs as shoppers looked for bargains

TJX Cos., the Framingham operator of such retail chains as T.J. Maxx and Marshalls, said today that first-quarter profit rose nearly 20 percent as its stores continued to draw shoppers increasingly looking for bargains in a tough economy.

But its pretax profit margin was below company expectations, and TJX shares fell more than 4 percent in morning trading on the New York Stock Exchange.

(At left is a photo of a model wearing T.J. Maxx merchandise that was taken from a company website.)

The operator of nearly 2,600 stores said today that its net income rose to $193.8 million, or 43 cents per share, in the three months ended April 26. That's up from a profit of $162.1 million a year earlier.

While TJX's result a year ago was hurt by a $12 million charge from a massive data breach, this year's first-quarter profit was boosted $12 million from a tax benefit.

Not counting that benefit, TJX's profit in the latest period was 41 cents per share, matching the consensus estimate of analysts surveyed by Thomson Financial.

TJX's revenue rose 6 percent in the latest period to $4.36 billion, just shy of analysts' forecast of $4.39 billion. Sales at stores open at least a year rose 3 percent.

"We are pleased with our first-quarter performance, as we once again drove strong sales, merchandise margins, and profit growth despite the challenges of the consumer environment and unfavorable weather in the first two months," said Carol Meyrowitz, president and chief executive.

TJX said its pretax profit margin dipped slightly below its plan, and slightly below last year's first quarter, as costs from expansion in Europe were mostly offset by improved margins on merchandise. The company added 33 stores in the latest quarter.

TJX reiterated its expectations for a second-quarter profit of 40 cents to 42 cents per share, and full-year earnings of $2.20 to $2.25. Analysts expect a second-quarter profit of 43 cents per share, and $2.22 for the year.

TJX operates T.J. Maxx, Marshalls, HomeGoods, A.J. Wright and Bob's Stores in the United States, Winners and HomeSense stores in Canada, and T.K. Maxx stores in Europe.

Its shares fell $1.47, or 4.5 percent, to $30.67 in morning trading. (AP)

Posted by globebusiness at 10:24 AM | Comments (0)

Dunkin' Donuts will celebrate iced coffee day

Dunkin' Donuts said it will celebrate its second annual free iced coffee day Thursday, and the likely result is that the chain will serve nearly 4 million cups of iced coffee to customers nationwide that day.

From 10 a.m. to 10 p.m. Thursday, customers can walk into any participating Dunkin' Donuts restaurant throughout the country and receive a free 16 oz. cup of Dunkin' Donuts' original or flavored iced coffee, said Dunkin' Donuts, a coffee-and-baked-goods chain based in Canton.

Customers will be encouraged to try Berry Berry Iced Coffee, which combines the seasonal tastes of blueberry and raspberry with Dunkin' Donuts' award-winning coffee, the chain said.

As part of the one-day event, the company is donating $80,000 to the National Police Athletic League's Youth Leadership Program, a nonprofit organization that works with disadvantaged youth across the United States to emphasize the importance of community service and peer leadership, Dunkin' Donuts said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:38 AM | Comments (0)

Shoppers will likely spend tax rebates on necessities

Alas for merchants, "shop till you drop" may not be the mantra for many consumers after they receive their tax rebates, a survey released today suggests.

Discounts are rampant as retailers look to entice consumers to spend the tax rebates that result from a federal economic stimulus package; stores had hoped that consumers would spend a portion of that money on such discretionary items as big-screen TVs or a new spring wardrobe.

But a survey out today from the National Retail Federation offered a more sobering view: A big chunk of the tax rebates could go to paying for necessities such as gas and groceries as many consumers cope with rising prices.

Consumers still plan to spend about forty percent of their tax rebate checks, sending $42 billion back into the economy, but what they plan to buy has shifted slightly from February when the federation conducted an earlier survey, the retailers group said.

Because of the increasing prices of gas and groceries, consumers now plan to spend more of their rebate checks on necessities like gas and food rather than on discretionary items like electronics and apparel, the federation said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:12 AM | Comments (0)

Whole Foods will open store in Medford

Whole Foods Market Inc., the Texas-based grocery chain that specializes in natural and organic foods, said it will officially open a new store in Medford tomorrow.

The store, which was previously a Wild Oats Marketplace and which was acquired by Whole Foods Market, underwent extensive remodeling and renovations including new floors, lighting, bathrooms and fixtures, new seafood and meat prep rooms, an updated kitchen, and additional changes to the layout of the store, Whole Foods said.

The Medford store will be the chain's 18th in Massachusetts, Whole Foods said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:26 AM | Comments (0)

Heritage Partners invests in Arizona company

Heritage Partners and Black Canyon Capital LLC, two investment firms, announced the recapitalization of Saunders & Associates Inc., a Phoenix-based manufacturer of test measurement and production equipment.

Heritage Partners is a Boston-based private equity firm that specializes in providing equity for family-owned businesses and closely-held companies. Black Canyon has its headquarters in Los Angeles.

The dollar amount of the recapitalization was not disclosed.

(At left, a product photo taken from the Saunders website.)

Heritage said that the investment was structured as a "Heritage Private IPO, allowing Saunders’ management to cash out certain founding shareholders while providing ongoing management with personal liquidity and ample capital for future growth while at the same time permitting them to retain operating control of the company."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:03 AM | Comments (0)

May 12, 2008

Foam companies agree to settlement in RI club fire

Several foam manufacturers have agreed to pay $30 million to settle lawsuits brought by survivors and family members of those who died in a 2003 fire in Rhode Island that killed 100 people and hurt more than 200.

The settlement offers were disclosed in court papers filed today.

More than $101 million has now been offered to victims of the Feb. 20, 2003, fire at the Station nightclub in West Warwick from several companies, including Home Depot Inc. and a maker of fireworks. Plaintiffs have yet to approve the settlements.

Investigators blame flammable, egg-crate-style foam on the walls and ceiling of the club for fueling the fire.

The fire was started when a pyrotechnics display for the rock band Great White ignited foam placed around the stage for soundproofing. (AP)

Posted by globebusiness at 3:38 PM | Comments (0)

MIT students show power of open cell phone systems

What do you want your cell phone to be able to do?

Massachusetts Institute of Technology professor Hal Abelson put that question to about 20 computer science students this semester when he gave them one assignment: Design a software program for cell phones that use Google Inc.'s upcoming Android mobile operating system.

In the process, they revealed the power of an open system like Android to shake up the mobile phone industry, where wireless companies are being pressured to loosen the control they have maintained over what devices do. If the brainstorms of these MIT students are an indication, phones will soon challenge the Internet as a source of innovation.

For these students at least, cell phones should be all about location, location, location. Most of the projects produced by the seven teams of students involved programs that let phones track people's physical place - or that of their friends - to help them do things and meet up.

One project named GeoLife gives users a way to set to-do lists and get reminders on their phones. Walk by the market, and the device might buzz with a message that you're supposed to pick up milk. Another effort, named Flare, was designed to help small businesses like pizza shops cheaply track their drivers.

Then there was Locale, which lets users configure their phones to automatically adjust their settings when the devices detect themselves in certain zones. So you might set your phone to automatically go into vibrate mode in the office and silent mode at the movie theater, and ring everywhere else.

The class had about three months to build software for an Android phone. The idea had to have a solid business case, a probable way of making money.

Some of that required conjecture, because there are no Android phones yet. A group called the Open Handset Alliance, with more than 30 wireless companies, has committed to using Android, but phones aren't expected to hit the market until the second half of the year. The students developed their work on a PC program that simulates a phone's operation.

Even so, the possibilities of the new wireless age seemed clear to the class. For example, Clare Bayley, an MIT sophomore on the Locale team, said her group's software eventually should adjust its operation based on factors beyond location. Perhaps calls from certain people in the contact list could go through in some locations, but not in others. Or the phone could tweak its screen brightness depending on remaining battery life.

Such customization would have seemed like a stretch until recently, when the idea began to take hold that cell phones should be as open to new programs as PCs are to Web sites. In addition to Android - which is Google's attempt to extend its online advertising dominance to a new venue - an industry group called the LiMo Foundation is backing open-source phones. Apple Inc. has taken steps to let third-party software developers create new applications for its iPhones.

"This class is a glimpse of the future, and what's nice, the not-so-distant future," Abelson said Friday at a gathering where the students presented their final projects.

In the audience were some of the professional mentors the students had during the semester, including Rich Miner, who's overseeing Android for Google from an office across the street from MIT. Miner said afterward that the students' work - which they are free to continue pursuing - was generally as good as anything other developers are trying.

In fact, the Locale group won $25,000 and advanced to the finals of a $10 million Android developers challenge Google is running.

The other student projects included Re:Public, a social-networking program that helps people make new friends in their area. Loco offers a way to find events around town and invite other people. Snap guides users to interesting places in their vicinity.

And there was KEI, pronounced "key," because that's what it is: software that enables a cell phone to unlock your car. It was the lone entrant not to tap the location craze.

But no matter: Abelson said they all would get an "A." (AP)

Posted by globebusiness at 3:21 PM | Comments (0)

Porter will head state's small business office

Massachusetts Housing and Economic Development Secretary Daniel O’Connell (right) announced today the selection of André M. Porter to head the Massachusetts Office of Small Business and Entrepreneurship.

  Porter is a former deputy director for the city of Boston’s Office of Business Development.

According to state figures, 178,652 employment establishments with fewer than 500 employees were in the state at the end of March 2007; collectively, these establishments employed more than 2.5 million people, or roughly 85 percent of the state's work force.
(By Chris Reidy, Globe staff)

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

Gas prices up another 12 cents in Mass.

Gasoline prices in Massachusetts have surged to another record high that's 12 cents more than last week's mark.

A statewide survey Monday by AAA Southern New England found an average price of $3.68 per gallon for self-serve, regular unleaded. That compares with $3.56 a week ago, and marks the fifth consecutive week of higher prices.

The state remains 3 cents below the national average of $3.71. A year ago, the Massachusetts average stood at $2.95.

Until the recent spike in prices, the state's record price was $3.23 per gallon, set in the aftermath of Hurricane Katrina in 2005. (AP)

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

American Girl store is coming to Natick Collection

Toy maker Mattel Inc. said today that it plans to open a 20,000-square-foot store for its American Girl doll brand at the Natick Collection shopping mall in November.

“Given our unparalleled success in experiential retailing over the past decade, we are eager to bring our next American Girl store to such a premier retail destination" like Natick Collection,
Wade Opland, American Girl’s vice president of retail, said in a statement.

(A doll from the American Girl collection is at left.)

Visitors to Natick Collection’s new American Girl store will find the complete assortment of the company’s popular historical and contemporary dolls, along with a rotating selection of doll outfits, accessories, girl-sized clothing, and a variety of best-selling American Girl books, said Mattel, a California company that is perhaps best known for its Barbie doll line.

To read recent Globe coverage of Natick Collection, please click here.
(By Chris Reidy, Globe staff)

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

More buried treasure: inspired by Ortiz caper, rival plants shirt behind Apple store

Michael Oh of Tech Superpowers slips a company T-shirt into the cement sidewalk in the alley behind the new Apple store on Boylston Street. Photos by Ted Dillard of Tech Superpowers.

Inspired by the Red Sox fan who buried a David Ortiz jersey under the new Yankee Stadium, Apple reseller Tech Superpowers Inc. decided to leave its own subversive treasure under the competition moving in directly behind them on Boylston Street. Yes, that would be the massive new Apple store set to open on Thursday.

So on a sunny morning late last month, Tech Superpowers founder and president Michael Oh slipped out the back door with a shovel in one hand and one of the company's geeky blue shirts emblazoned with the words "Technology for Genius" in the other. He crossed the alley to the wet cement behind Apple and began digging.

"We just walked in and started digging a hole and taking snaps. When approached, we explained what we were doing," Oh said of the Apple construction workers. "Luckily, that was the morning that the guy had bought the Ortiz shirt on eBay for $175K, so everyone just thought it was humorous."

Tech Superpowers has closely followed the progress of Apple with a webcam watching every second of the construction over the past year. (For a time-lapse movie of the building's steel frame being erected, click here.) When they weren't stalking Apple, Tech Superpowers was refining its business model to focus more on professional clients and less on consumers in anticipation of Apple's arrival and dominance in the consumer space.

"We're doing it with a wink," Oh said of the buried Tech Superpowers T-shirt. "We are in business because of the great things Apple has done. But there's also been blood sweat and tears from our side. This T-shirt in the sidewalk is a symbol that there's a connection between the two sides of the alley. I have no idea how this will turn out. Maybe Apple will refer us customers. Or maybe six months from now we'll be moving out to an office park in Waltham. But at least we can say, yeah, we were here."

No word yet on what Apple plans to do with Tech Superpowers' buried treasure.
(By Jenn Abelson, Globe staff)

Posted by globebusiness at 11:29 AM | Comments (0)

Sovereign raising $1.5b in additional capital

Sovereign Bancorp. said it plans to raise $1.5 billion in two public stock offerings, becoming the latest bank seeking capital amid tightening credit markets.

A Sovereign spokesman said it expects Spain's Banco Santander SA to buy shares in the offering, but didn't have details and said that "no special treatment is being given to any shareholder.'' Santander already owns about a quarter of Sovereign, a Pennsylvania savings and loan that is one of the largest banks in New England.

Technically Sovereign will $1 billion shares of common stock, while its Sovereign Bank unit will offer $500 million under the terms of the two offerings. The money is being raised as a prudent decision in case the economic downturn proves deeper than expected, said the spokesman, Ed Shultz, but not because the bank lacks sufficient capital. "We're not taking this action from a position of stress, but rather from a position of strength,'' he said.

According to Bloomberg News, the world's banks and securities firms have rased more than $245 billion in capital to cope with losses that have resulted from deteriorated mortgage and credit markets. Sovereign reported a loss of $1.3 billion in 2007, and omitted its quarterly dividend in January.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 11:04 AM | Comments (0)

Orbitz taps mediaHub for brand planning

Mullen, the Wenham advertising agency, said today that Orbitz Worldwide Inc., the online travel company, has assigned all its US brand planning and media buying to mediaHUB, a division of Mullen.

The media buying assignment includes strategy development, media planning, and purchasing execution for the company's Orbitz and CheapTickets brands, Mullen said.

Orbitz Worldwide' North American media buying was previously managed by Mediacom New York, Mullen said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:03 AM | Comments (0)

"Snakehead" films James Bond dogfight footage

The Concord office of SolidWorks Corp. said today that its 3D computer-aided software was used to design an aerial periscope that has filmed footage for a dogfight sequence in an upcoming James Bond movie, "Quantum of Solace."

The periscope is called "Snakehead," and it was designed by SpaceCam Systems Inc. in collaboration with engineers from another California company Ballista Inc., SolidWorks said.

With a 360-degree remotely controlled spherical range of view, the patented Snakehead is the first plane-mounted gyroscopically stabilized periscope, compatible with various movie and HD cameras and providing super high quality resolution, SolidWorks said.

In filming footage for the new Bond movie, which features Daniel Craig (left) as Bond, a Piper Aerostar 700 with Snakeheads on the nose and tail filmed two planes in a aerial chase sequence and dogfight, SolidWorks said.

With the Snakehead, "pilots for the first time can fly as aggressively as they dare without sacrificing the drama of the shot," SolidWorks said in a statement.

SolidWorks' parent company of Dassault Systemes S.A., a French company that develops and markets software for design, analysis, and product data management.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:16 AM | Comments (0)

Iron Mountain buys DocuVault

Iron Mountain Inc. said today that it has acquired the privately owned DocuVault companies for an undisclosed amount.

Iron Mountain is a Boston company specializing in information protection and storage services.

DocuVault is a records management and information destruction company in Colorado.

As a result of the acquisition, Iron Mountain said it gains two records storage facilities and a secure shredding plant, increasing Iron Mountain's capacity for storing and destroying records in Colorado.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:56 AM | Comments (0)

Staples promotes new stylish accessories line

Forget the pinstripe pants suit or the big lunch tie. In today's economic climate, it's the accessories that define the business person, says Staples Inc., the Framingham-based retailer of office supplies.

As a result, the canny entrepreneur now eschews costly layouts for Brooks Brothers duds - and sees a $16 quilted leather journal as much better investment when it comes to advancing his or her career.

Staples, whose marketing mantra is "That was easy," said it gleaned such findings from a national online survey it commissioned of nearly 1,100 adults.

The survey was conducted in association with the official launch of the new M by Staples collection of high-end journals, notebooks, file folders, stationery, and business essentials such as binder clips, magnets, and push pins, said the company, which added that the new collection should "inspire creativity and style in the work place."

(At left, the humble binder clip.)

According to the survey, US workers believe that "small-ticket items, including stylish notebooks and file folders, are the secret to increased productivity, recognition, and success - more so than dressing in flashy business attire."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:39 AM | Comments (0)

Axis unveils new surveillance camera

Axis Communications today announced the debut of a new high-performance video surveillance camera to its product line.

The camera is the Axis P1311, which the company said is well suited for video surveillance systems used by schools, stores, banks, and office buildings with "demanding storage and bandwidth efficiency requirements."

The AXIS P1311 Network Camera includes video intelligence, such as enhanced video motion detection, audio detection, and detection of camera tampering attempts like blocking or spray-painting, the company said.

Axis is a Swedish company with a presence in Chelmsford.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:12 AM | Comments (0)

Dunkin' franchisees create new board

A large association of Dunkin' Donuts franchise owners announced today the creation of a new board of directors that seeks to better serve franchisees.

The association is DD Independent Franchise Owners Inc., or DDIFO, of Bellingham.

"The DDIFO decision came about because the franchisees wanted to make a change for positive reasons," incoming board chairman Kevin McCarthy said in a statement. "They want to establish a much better communication and a productive relationship with Dunkin' Brands."

Dunkin' Brands Inc. of Canton is the parent company of Dunkin' Donuts, a coffee-and-baked-goods chain.

DDIFO said that Mark Dubinsky will continue in his role as the president of the association.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:33 AM | Comments (0)

May 9, 2008

Are airline surcharges headed for $200?

It's Econ 101. Yesterday, I wrote about how Delta and American -- and later United -- raised fuel surcharges by $20 on many domestic routes. This means that many travelers will be paying as much as $130 in round-trip surcharges on top of base ticket charges.
At what point do people start cutting back on flying?
There's an interesting piece in the Atlanta Journal-Constitution that says we'll probably see as much as $60 more in surcharges -- bringing the total to nearly $200 -- before we hit that point.
A spokesman for Delta says so far his airline hasn't been hurt by the surcharges -- in fact their bookings are running a bit ahead of last year's.

And Rick Seaney, CEO of the website FareCompare.com, said he doesn't think prices have hit a "tipping point" yet either, but it's getting thisclose. Seaney, who keeps tabs on fare increases, said he estimates "there could be two or three more $20 increases before they really begin to lose customers."
That's when the airlines will either have to stop raising -- or start cutting -- charges.
Here is Seaney's timeline of airfare and surcharge hikes this year:

1. January 3rd, initiated by United, $10 roundtrip, base airfare hike, successful

2. January 11th, initiated by United, $30 roundtrip, fuel surcharge hike, unsuccessful

3. January 17th, initiated by American, $20 roundtrip, fuel surcharge hike, unsuccessful

4. January 24th, initiated by Continental, $20 roundtrip, fuel surcharge hike, successful

5. February 22nd, initiated by United, $10 roundtrip, base airfare hike, successful

6. February 28th, initiated by Delta, $10 roundtrip, base airfare hike, successful

7. March 7th, initiated by United, $10 roundtrip, fuel surcharge hike, successful

8. March 14th, initiated by United, $4-$50 roundtrip, base airfare hike, successful

9. March 19th, initiated by Delta, $10 roundtrip, fuel surcharge hike, unsuccessful

10. March 27th, initiated by Delta, $10 roundtrip, fuel surcharge hike, unsuccessful

11. April 9th, initiated by United, $4-$30 roundtrip, base airfare hike, successful

12. April 15th, initiated by United, $10-$20 roundtrip, fuel surcharge hike, successful

13. April 24th, initiated by United, $4-$70 roundtrip, base airfare hike, successful

14. April 28th, initiated by Delta, $10 and $40 roundtrip, fuel surcharge hike, successful

15. May 7th, initiated by Delta, $20 roundtrip, fuel surcharge hike, pending
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 2:45 PM | Comments (0)

Share of Alnylam rise

Shares of Alnylam Pharmaceuticals Inc. rose today after the biotechnology company posted a smaller-than-expected first-quarter loss and strong revenue growth.

Shares of the Cambridge company surged $2.39, or 9 percent, to $27.75 in afternoon trading on the Nasdaq Stock Market.

The company lost $1.2 million, or 3 cents per share, compared with a loss of $21.6 million in the year-ago period. Revenue tripled to $22.2 million from $7.2 million in the prior year.

The results handily beat estimates of analysts polled by Thomson Financial, who expected a loss of 14 cents on revenue of $19.3 million.

Alnylam said its strong first-quarter results were due primarily to the company's partnership with Roche, which began in the third quarter of 2007 and gave the Swiss drug maker access to Alnylam's gene-silencing technology. Alnylam said it received $13.4 million in collaboration revenue during the quarter as part of the alliance.

The company also has partnerships with Novartis, Biogen Idec and the National Institutes of Health. (AP)

Posted by globebusiness at 1:50 PM | Comments (0)

Boston improves as a bike city

There's hope for the Hub yet as a bicycling mecca.

According to Bicycling magazine, Boston has been a "recurring fixture" on periodic lists it has compiled over the last decade on the worst American cities for bicycling.

But in the magazine's 2008 list of best and worst cities for cycling, Boston rates an honorable mention as a potential candidate for a best list in the future.

"Central to Boston's noteworthy move is Mayor Thomas Menino's newfound love of cycling," the magazine said in a press release today. "After getting hooked on his new Trek Lime (bike), Menino hired former Olympic cyclist Nicole Freedman (right) to serve as Boston's bike coordinator, a position the city had eliminated in 2003. The pair is working on the first significant cycling-friendly development since then: 5-foot-wide bike lanes extending along Commonwealth Avenue."

In compiling lists, Bicycling magazine looks only at biking within city limits and not at the larger bike culture in a metropolitan area, noted executive editor Loren Mooney.

In the past, Mooney said during a phone interview, "Boston has been in the shadow of Cambridge and Somerville when it comes to bike friendliness on the road."

The best cities for bicycling in this year's list are Portland, Ore.; Seattle, Chicago, San Francisco, and Boulder, Colo., the magazine said.

And the worst? Dallas, Memphis, and Miami, the magazine said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:51 PM | Comments (0)

Move over, Egg McMuffin. You've got company

Is the Hub ready for a chicken biscuit breakfast? McDonald's Corp. plans to find out.

Illinois-based McDonald's said it is set to offer customers the opportunity to try its new Southern Style Chicken Biscuit and its new Southern Style Chicken Sandwich during a national sampling event at most of its 14,000 US stores next Thursday.

McDonald's added that the chicken biscuit is its first-ever chicken-for-breakfast offering.

The chicken items are part of the chain's commitment to giving customers a wide variety of meal choices, McDonald's said.

At breakfast, this means that the chicken biscuit will augment old standbys such as the Sausage McMuffin (left).

As part of the chicken launch, the chain has gone live with a new website to help promote the new items.

McDonald's isn't the only chain that's adding new menu items in hopes of attracting a larger share of a consumer's food dollar.

In February, Dunkin' Donuts, the Canton-based coffee-and-baked-goods chain, announced plans to offer a new all-day "oven-toasted menu," whose items include flatbread sandwiches, personal pizzas, and hash browns.

But are New Englanders ready to wash down chicken with their morning coffee?

Krispy Kreme Doughnuts Inc. had high hopes that it could change local eating habits when it came to the region a few years ago. In Krispy Kreme's native South, the doughnut can be viewed as a 24/7 food group, a treat that can be enjoyed at almost any time of day. Most New Englanders, in contrast, regard the doughnut as primarily morning fare. Krispy Kreme's inability to persuade New Englanders to consume doughnuts on a far grander scale was one reason for the chain's disappointing showing hereabouts.

Undaunted, McDonald's expects that customers nationwide will eat 2 million Southern Style Chicken Biscuits during Thursday's sampling event.

Plans call for the chain to give away Southern Style Chicken Biscuits from 7 a.m. to 10:30 a.m. to customers who purchase a medium or large beverage at participating stores while supplies last, McDonald's said.

After breakfast and until 7 p.m., the chain plans to give away Southern Style Chicken Sandwiches under the same rules, McDonald's said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:43 AM | Comments (0)

Former ski resort exec launches wood-pellet venture

With oil prices continuing to rise, a former ski industry mogul who is also a former part-owner of the Boston Red Sox has started a venture that aims to convert thousands of home heating systems in the Northeast from oil to wood pellets.

Les Otten is investing $10 million to launch Maine Energy Systems, which will import pellet-fueled boilers from Europe and install them in homes beginning this summer.

The company initially will focus on Maine, with Otten hoping to switch 10 percent of the state's oil-burning residences - about 44,000 houses - to pellets within five years. The company, of which Otten is the lead investor, also plans to expand to New Hampshire, Vermont, Massachusetts, and New York.

With oil prices topping $125 a barrel, wood pellets provide cheaper energy for those willing to spend money to install a new furnace, Otten said. Currently, about 80 percent of Maine homes are heated with oil or kerosene, the highest share in the nation.

"This is like a giant social experiment," Otten said. "Our surveys show people want to switch from oil, but are they really going to do this?"

(A photo from Maine Energy Systems' website shows a boiler designed to burn pellets.)

There are risks with the venture. Decreases in oil prices could negate the cost advantage of wood heat, and there are questions about whether certified technicians can be trained fast enough to install and service the boilers.

Also unclear is whether buyers will spend $12,000 for pellet heating systems, which is nearly twice as high as a typical oil boiler. The company calculates that an average home, burning seven tons of pellets, will save roughly $2,300 a year.

Energy prices are particularly volatile now, and consumers should be cautious about switching from oil to save money, said Jamie Py, executive director of the Maine Oil Dealers Association.

"Oil prices could drop anytime and wood pellet prices could rise," Py said. "You've got to look past the hype."

Otten bought the Sunday River ski resort in Newry in 1980 and used it as the foundation to create American Skiing Co., which purchased Maine's Sugarloaf ski resort and resorts in five other states. Otten was eventually forced out of American Skiing and became a minority partner of the Red Sox before selling his stake in the club last year.

Most recently, he has been active in real estate development and other business ventures while taking an interest in renewable energy issues and heading a wood-to-energy task force formed by Gov. John Baldacci.

Maine Energy Systems' business plan calls for the sale of fully automated boilers made by Bosch Thermotechnologies, an arm of the large German appliance maker.

The technology is far different from traditional wood boilers, which require users to keep cords of wood and feed the wood into the furnace by hand.

Instead, a fleet of delivery trucks will pump pellets into storage tanks, where they can be automatically fed into the boilers, Otten said. The boilers produce less pollution and less ash residue than outdoor boilers and conventional wood stoves because they use a refined product that is burned at high temperatures, he added. (AP)

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

Beacon Roofing Supply reports loss

Beacon Roofing Supply Inc. of Peabody said today that its fiscal second-quarter loss widened, hurt by a continued decline in residential construction activities in most markets.

For the period ended March 31, the company reported a loss of $8.1 million, or 18 cents per share, compared with a loss of $6.3 million in the year-ago period.

Analysts polled by Thomson Financial, on average, estimated a loss of 14 cents per share on sales of $320.9 million.

Revenue rose 6 percent to $304.3 million from $286.9 million in the first quarter of 2007. Beacon attributed the increase to sales from North Coast Commercial Roofing Systems, which it acquired during last year's third quarter, and four new branches that were opened since the 2007 second quarter. But this was mostly offset by a continued decline in residential construction activities in most markets, Beacon said, and lower levels of residential remodeling and reroofing in some markets.

Cost of goods sold increased 7 percent to $235.9 million, while total operating expenses also rose 7 percent to $75.3 million, primarily due to the inclusion of North Coast Commercial Roofing, the company said.

Beacon, one of the largest US roofing suppliers, operates in more than 30 states and in Canada.

The company's shares, which trade on the Nasdaq Stock Market, declined 45 cents, or 4.1 percent, to $10.45 in premarket trading. (AP)

Posted by globebusiness at 10:01 AM | Comments (0)

Converse launches Chuck Taylor design contest

The Chuck Taylor All Star isn't simply a venerable basketball sneaker or a nostalgic fashion statement; it's also a blank canvas, a clean slate that can serve as a medium for artistic expression.

Or so states Converse, the North Andover sneaker brand, which invites creative types to "Put your world on our canvas."

Along with Utah Jazz basketball star Kyle Korver, Converse is launching a contest that asks shoe artists to come up with designs of their very own All Star.

The contest is called MyChucks, and Converse promises to produce the winning entry and have it sold exclusively by Eastbay, a subsidiary of retailer Foot Locker Inc.

"As part of the contest, Kyle Korver submitted his own design of the Chuck Taylor All Star shoe, which will be featured online, along with a video of him designing his shoe and explaining the process," Converse said in a press release. "Korver's shoe features pinstripes to represent all of the people in his life, and a red stripe to represent himself and his desire to be an original. Converse will produce 226 pairs of the shoe, which pays homage to Korver's jersey number 26, and will be donated to the Kyle Korver Foundation, whose mission is to make a positive impact on the lives of under-privileged children by improving the quality of life for disadvantaged youth and their families."

To enter the MyChucks competition, contestants can visit mychucks.eastbay.com to download the entry kit, which contains a silhouette of the Chuck Taylor All Star shoe and contest instructions, Converse said.

"Participants need to submit a scanned image of their design and a 20- to 30-second video explaining their entry," Converse said. "Submissions will be placed in an online, public gallery where visitors can vote on each design."

"Converse added: "The top five designs with the most votes will enter the final round of judging, which is determined by the total number of votes, and the judging of artistic ability, creative expression, and overall design by a panel from Converse and Eastbay. The grand prize will be announced on or about July 11, 2008 on mychucks.eastbay.com."

Converse is now a subsidiary of Nike Inc.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:35 AM | Comments (0)

State Street museum project is about to debut

"The Children of Hangzhou: Connecting with China," an exhibit supported by State Street Corp., is scheduled to open to the public Wednesday at Boston Children's Museum.

Headquartered in Boston, State Street is a provider of financial services to institutional investors, and last summer, it said it would donate $750,000 to the museum and the exhibit.

"Children of Hangzhou" seeks to explore contemporary Chinese life and culture through the eyes of four children (right) living in the metropolis of Hangzhou.

The exhibit is also sponsored by the National Endowment for the Humanities, the museum said.

The exhibit is scheduled to run through January before traveling throughout the United States and Canada, a museum spokeswoman said.

State Street's presence in China dates to 2000 when it entered an alliance with the Industrial Commercial Bank of China.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:56 AM | Comments (0)

Akamai will give tech support to Pangea Day

Some folks tomorrow will celebrate World Fair Trade Day, and others might enjoy Pangea Day, a film festival of sorts that will unfold in multiple venues around the world and that can be viewed on personal computers and some cellphones.

Akamai Technologies Inc. of Cambridge said it will give technical support to Pangea Day by providing live and on-demand streaming of the event's content to the PangeaDay.org website as well as live streaming of content to mobile phones.

Akamai specializes in using its technology to power rich media, dynamic transactions, and enterprise applications online.

An Akamai press release described Pangea Day this way: "On May 10, 2008, at 18:00 GMT, millions of people all over the world will come together to watch a four-hour program of short films. With live broadcast venues in Cairo, Kigali, London, Los Angeles, Mumbai, and Rio de Janeiro, and thousands of self-organized events planned in over 100 countries, Pangea Day aims to help bring the world together for a unique shared experience. Pangea Day will be broadcast around the globe in eight languages and through multiple forms of media."

Scheduled musical performers include Hypernova, a rock group from Iran. (At left, a photo taken from a Hypernova post on the website MySpace.com.) Queen Noor of Jordan is also expected to be on hand, according to Akamai.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:08 AM | Comments (0)

May 8, 2008

Grid operator asks public to limit power use

Unexpected transmission and power plant outages have prompted a plea from the region’s grid manager to limit electricity use in the Boston area and northeastern Massachusetts.

Holyoke-based ISO New England Inc. declared a ‘‘power watch’’ this afternoon that was expected to remain in effect throughout the day. The declaration is a notch below a more urgent ‘‘power warning,’’ issued when electricity supplies are extremely tight.

ISO New England ordered the watch to prevent overtaxing the grid because of a combination of unexpected transmission and power plant outages.

ISO New England officials didn’t immediately return a call seeking further details.

Consumers are being urged to reduce electricity use as soon as possible throughout the day, both at home and work.
(AP)

Posted by globebusiness at 3:20 PM | Comments (0)

EnerNOC shares soar after results beat expectations

Shares of Boston-based EnerNOC Inc. soared today, after the company said its first-quarter loss widened, but wasn't as steep as Wall Street expected.

In morning trading on the Nasdaq Stock Market, shares of EnerNOC, which makes products that allow utilities and electric grid operators to regulate supply and demand, rose $2.04, or 15 percent, to $15.73, after peaking at $16.95 earlier in the day.

In the past 52 weeks, the company's shares have traded between $9.26 and $50.50.

For the quarter ended March 31, EnerNOC posted a loss of $11 million, or 57 cents per share, compared with a loss of $3.8 million for the same quarter in 2007.

Revenue jumped 87 percent to $18.6 million from $10 million in the year-ago period.

Analysts polled by Thomson Financial expected a loss of 59 cents per share on $17.6 million in revenue. (AP)

Posted by globebusiness at 1:13 PM | Comments (0)

Delta blues: Airline cuts some perks

Hemmed in by surging fuel costs, Delta Air Lines Inc. is cutting back on perks offered to passengers even before they step onto the plane.

The airline is closing nine of its 42 members-only airport lounges, including one at Boston's Logan International Airport.

The Crown Room Club, located between Gates 6 and 7 in three-year-old Terminal A, will shut down May 15, although Delta's club between Gates 17 and 18 will remain open.

Delta spokeswoman Susan Elliott declined to reveal how much its larger lounge was being used by members paying between $300 and $600 a year or how much money the airline expects to save by shuttering it.

However, she said the airline wants to make better use of its reciprocal lounge agreements with other airlines, including Alaska Air, Continental Airlines Inc., and Northwest Airlines Corp.

Logan spokesman Matt Brelis said Continental will sublease Delta's shuttered lounge.

By the end of the month, Delta will have also closed airport clubs in Cincinnati, Denver, Honolulu, Kansas City, London, Phoenix, and Seattle.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 12:24 PM | Comments (0)

Sorry, Mom. You take a pay cut this year

The time spent on "mom job functions" by a stay-at-home mom would equate to an annual salary of $116,805 in the job world, a drop of about $21,000 from last year's calculation of $138,094, said Salary.com Inc.

This is the eighth year that a survey on mothers' pay issues has been conducted by Salary.com, a Waltham company that provides on-demand compensation and talent-management solutions that help businesses and individuals manage pay and performance.

The firm used a different methodology to conduct the survey this year, and that's a reason why perhaps stay-at-home moms took a pay cut.

This year, Salary.com said it "adjusted the mom salary benchmark based on a key factor that affects pay - company size - and provided a more complete view using total cash compensation for the mom job."

Previously, the survey was based on the national median base salary for all company sizes, the company said.

"Smaller organizations typically pay less," Bill Coleman, senior vice president at Salary.com, said in a statement. "By using data for companies with fewer than 25 employees - offset slightly by the addition of annual bonuses - we saw a net decrease in U.S. mom's pay of nearly $21K from 2007. We believe this is a valuable way to help educate the average person about the factors affecting compensation and how employers determine pay."

Salary.com calculated the monetary value of the time an American working mom spends on motherhood jobs at $68,405, down from $85,938 in 2007.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:17 AM | Comments (0)

American Superconductor profit jumps

Energy equipment supplier American Superconductor Corp. said today that its fourth-quarter loss narrowed 84 percent on wind power and electric utility sales.

Net loss dropped to $1.8 million or 4 cents per share from $11.4 million in 2007.

Sales more than doubled to $38.4 million from $19.1 million.

Analysts polled by Thomson Financial expected a loss of 11 cents per share on sales of $34.8 million.

Analysts typically exclude one-time items, which in this quarter included $3.6 million in restructuring charges related to business consolidation in Massachusetts.

Chief executive Greg Yurek said in a statement that the company's strong revenues came from commercial sales in the wind power and electric utility markets.

For the 2008 fiscal year, the company's loss also narrowed on higher sales.

It lost $25.5 million or 65 cents per share, down from $34.7 million or $1.04 per share in fiscal 2007.

Sales jumped to $112.4 million from $52.2 million.

Shares in the Central Massachusetts company fell 3 cents to $24.64 in premarket trading. The company's shares trade on the Nasdaq Stock Market.(AP)

Posted by globebusiness at 9:58 AM | Comments (0)

TJX same-store sales rise 8 percent in April

TJX Cos. Inc., the Framingham retailer that operates off-price apparel and home stores, said today that its April same-store sales rose 8 percent, far higher than Wall Street analysts' anticipated.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly-opened ones.

Analysts polled by Thomson Financial expected a boost of 6.5 percent.

Total sales for the four-week period rose 12 percent to $1.4 billion from $1.3 billion in the year-ago period.

TJX, which operates such chains as T.J. Maxx and Marshalls, said its sales were helped by warmer weather.

For the quarter ended May 3, the company said its sales jumped 6 percent to $4.4 billion from $4.2 billion.

Analysts expected sales of $4.38 billion.

The company said due to the stronger-than-expected sales in April and "effective expense control," it now expects profit for the fiscal 2009 first quarter of 41 cents to 41 cents per share. Previously, the company said its profit would be at or below that range.

The company also said it will record a one-time benefit in the quarter from tax-related adjustments that should raise profit even higher.

Analysts anticipate profit of 40 cents per share. (AP)

Posted by globebusiness at 9:23 AM | Comments (0)

FDA approves Boston Scientific pacemakers

Natick medical device maker Boston Scientific Corp. today announced the Food and Drug Administration's approval of a new family of advanced pacemakers called Altrua.

The announcement comes a day after Boston Scientific said that the product line was approved by European regulators.

The company said that this is the first Boston Scientific-branded pacemaker to treat bradycardia, a condition in which the heart beats too slowly.

In addition, Altrua pacemakers deliver enhanced therapies while maintaining a small size and battery longevity, Boston Scientific said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:12 AM | Comments (0)

BJ's April same-store sales up partly on gas sales

BJ's Wholesale Club Inc. said today that its April same-store sales climbed 17.8 percent on gasoline sales and one extra day in the period, due to a shift in the Easter holiday.

Analysts surveyed by Thomson Financial had expected a same-store sales increase for the Natick-based chain of 10.8 percent.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

The discount warehouse club operator said gas sales made up 5.5 percent of its same-store sales gain, while the extra day contributed about 4 percent. Total monthly sales climbed 20.4 percent to $744.5 million.

BJ's said food sales rose about 16 percent in April, while general merchandise sales rose approximately 7 percent. Categories with the strongest sales included bakery, dairy, health and beauty, fresh meat, pet foods and produce.

First-quarter same-store sales grew 9.6 percent, while total sales climbed 12.3 percent to $2.26 billion. Gas sales comprised 3.9 percent of the same-store sales increase.

The company currently runs 177 BJ's Wholesale clubs in 16 states. (AP)

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

One Beacon Street wins silver LEED designation

Boston office building One Beacon Street has received a silver Leadership in Energy and Environmental Design, or LEED, designation from the US Green Building Council following the installation of environmental friendly features during a recent upgrade, its owner said.

The owner of the roughly 35-year-old building is an affiliate of Beacon Capital Partners LLC, a Boston-based real estate firm.

Saying that it has invested roughly $500,000 in energy-saving measures at the building since 2006, Becaon Capital added that One Beacon is the first existing office building in Boston to receive LEED certification at any level.

One Beacon is managed by the regional office of CB Richard Ellis Group Inc., a Los Angeles-based commercial real estate services firm.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:23 AM | Comments (0)

Talbots reports sales results

Talbots Inc., the embattled retailer of women's clothing, said today that first-quarter sales fell 5.6 percent to $542 million.

The Hingham company only issued preliminary data of its quarterly results; a full report on the quarter's activity is scheduled for release May 21, a company spokeswoman said.

In a statement, president and chief executive Trudy F. Sullivan professed to see a silver lining in the preliminary results.

"Although our total company sales were softer than we had anticipated, we are pleased by our ability to achieve significantly improved merchandise gross margin, as it reflects progress in the implementation of one of our important strategic initiatives," she said in the statement. "Specifically, strong merchandise gross margin was driven by leaner total company inventory, down approximately 7 percent to last year, and better inventory management, which enabled the selling of our markdown merchandise at higher average unit retail values versus prior years."

At stores open for at least a year, overall first-quarter sales declined 9.8 percent, Talbots said. The company also operates the J. Jill brand. At J. Jill, sales at stores open at least year were down 20.2 percent; at stores bearing the Talbots nameplate, sales at stores open at least a year decreased 7.4 percent, the company said.

Talbots is battling several factors. The overall economy is slumping and consumers seem wary about spending money to upgrade their wardrobes. Meanwhile, a more casual attitude toward fashion means that many women are opting for Talbots' classically styled clothing on fewer occasions.

In January, Talbots said it would exit the children's and men's apparel businesses and slash 5 percent of its work force.

Last month, Talbots shares tumbled almost 30 percent on the day after Talbots disclosed that two lenders had canceled letters of credit to the firm.

The company said today: "The Talbots Inc. is in discussions with financial institutions to increase its working capital line of credit and will provide an update on its progress when appropriate. The company expects to be in compliance with all covenants of its acquisition term loan agreement for first quarter fiscal 2008."

Sullivan also said in her statement: "Looking at our Talbots brand, after a solid February and a very difficult March, which was felt across the industry, we experienced a significant improvement in April sales. We had a good customer response to our recent spring deliveries and a very successful response to our annual April best customer event, which led to a positive mid-single digit April comp and a corresponding increase in the brand's direct marketing sales."

The company also reconfirmed its previously announced outlook for fiscal 2008 earnings from continuing operations, excluding Talbots Kids, Mens, and UK operating results and close down costs, to be in the range of $0.47 to $0.52 per diluted share. The company is planning for a loss from discontinued operations in the range of $0.64 to $0.59 per share, for a total loss per share in the range of $0.17 to $0.07, compared with the $3.56 loss per share reported in fiscal 2007.

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

Posted by globebusiness at 8:15 AM | Comments (0)

Staples will scout "Everyday Edisons" audition

Framingham office supplies giant Staples Inc. will be among several retailers scouting for a few good product ideas when the PBS television show "Everyday Edisons" holds a scheduled casting call in Providence on May 17.

The show, which takes its name from the famous inventor Thomas Edison (right), said its goal is to educate viewers about what it takes to transform an idea into a product sold on store shelves.

At the casting call set for the Rhode Island Convention Center, inventors will be invited to show off their ideas, and judges will then choose inventions that could be featured on future shows.

An invention featured on a previous show is the SnacDaddy (left), a two-part serving tray designed for serving chicken wings and disposing of the messy bones afterward. The SnacDaddy mantra? "Where the wings have no shame."

Staples is no stranger to TV exposure. Two years ago, one of its products, the MailMate junk-mail shredder, figured in an episode of the NBC sitcom "The Office."

And a year before that, mega mogul and over-the-top impresario Donald Trump gave contestants on his TV show "The Apprentice" the challenge of inventing an office product for Staples that would make it easy for people to clean up their clutter.

Other retailers who plan to be on hand for the Providence casting call of "Everyday Edisons" include the Home Depot Inc. and Dick's Sporting Goods Inc., according to a press release for the show.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:20 AM | Comments (0)

May 7, 2008

New screening program begins test at Logan

The Transportation Security Administration today started physically screening 100 percent of workers and vehicles entering the airfield at Boston's Logan International Airport under a 90-day pilot program funded by Congress.

Previously, employees could access the airfield by showing their airport identification badge, which is issued after passing a criminal background check. Now they also need to get out of their vehicles and spread their arms as a TSA agent uses a metal-detector wand to check for guns or other banned items.

"If we're going to scrutinize our customers, it's only sensible that we screen our employees," said Edward Freni, Logan's director of aviation.

The main reason this "sensible" idea has yet to be fully implemented is "a matter of costs," said George Naccara, the TSA's federal security director overseeing Logan. The pilot program puts 43 extra TSA screeners at five airfield checkpoints.

Naccara estimated physically screening 100 percent of employees entering the airfield and the airport terminals would require 1,300 more TSA agents, but didn’t know how much that would cost. Currently 900 TSA agents work at Logan.

The pilot program is supposed to determine how much 100 percent screening costs and how it impacts airport operations. During a similar 100 percent employee screening pilot program conducted last year inside Logan’s airport terminals, the extra procedures had employees running 15 to 30 minutes late for work, said airport spokesman Matt Brelis.

At Logan airfield’s North Security Gate this morning, equipment operator Jon Clancy jumped out of his triaxle truck and let a TSA agent make sure no contraband was hidden in his orange construction vest.

“It’s a little bit of a hassle,” said Clancy, who works for Bay State Piping and is installing an electrical conduit in an airfield building. However, he added, tightening security is generally a good idea.
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 1:43 PM | Comments (0)

Athenahealth rises on better-than-expected results

Shares of medical billing software maker athenahealth Inc. surged more than 10 percent today after the Watertown company said it swung to a better-than-expected profit in the first quarter.

Net income totaled $1.8 million, or 5 cents per share, compared with a year-ago loss of $2.7 million a year ago. Excluding stock-based compensation costs, the company earned $3.1 million, or 9 cents per share, in the latest period.

Revenue rose 36 percent to $29.8 million from $21.9 million last year.

Analysts surveyed by Thomson Financial expected earnings excluding stock option charges of 6 cents per share on revenue of $28.9 million.

"In our history, the first quarter often involves margin compression due to costs at the start of the year and lower seasonal physician collections, so we were quite pleased to see strength both in revenue growth and in margin expansion this quarter," said Carl Byers, chief financial officer.

The company provides physician practices with Web-based software and services that streamline revenue management, patient information management, billing and collection, and medical record-related functions. (AP)

Posted by globebusiness at 1:33 PM | Comments (0)

Modernista! looks to launch creative hub in Europe

Boston ad agency Modernista! said today it has hired Boyd Coyner as part of a decision to launch a "creative hub" in Europe.

As executive creative director and a managing partner, Coyner has joined Modernista!'s office in Amsterdam, which services the agency's Hummer account in Europe. (At right, a Hummer negotiates some rugged terrain.)

Coyner most recently worked for Wieden+Kennedy, an Oregon-based ad agency known for its work on behalf of sneaker Goliath Nike Inc.; Coyner ran Nike's Europe account, Modernista! said.

Other Modernista! clients include Cadillac, Animal Planet, and the Bill & Melinda Gates Foundation.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:31 PM | Comments (0)

UBS to return $37 million to Mass. communities

Attorney General Martha Coakley's office today reached a $37 million agreement with UBS Financial Services Inc., requiring the Wall Street firm to return funds to the Massachusetts Turnpike Authority and 17 municipalities that it allegedly misled into buying auction-rate securities.

Auction-rate securities are a kind of debt that allowed nonprofits to borrow money at low rates. But these securities relied on weekly or monthly auctions, where investors re-upped their holdings, and those auctions broadly failed in February, leaving investors stuck with illiquid investments they had expected to work like cash.

Coakley said cities and towns were, in some instances, persuaded by UBS to invest their cash accounts in these auction-rate securities. And with the market's collapse, those municipalities have had portions of their cash locked up since February.

“We appreciate that UBS has taken action to return the invested monies to our cities, towns and other government entities. In these tight financial times, Massachusetts municipalities need to have access to their monies and to invest them appropriately,'' Coakley said in a statement.

UBS yesterday announced it was exiting the municipal finance business.

The Massachusetts Turnpike Authority is among those to receive reimbursement and will get $4.4 million.

The affected towns and cities include: Town of Andover, City of Holyoke Contributory Retirement System, Town of Merrimac Light, Town of Needham, City of Holyoke, Town of Whitman, Town of Hudson, Town of Westborough, City of Chicopee, Town of Barnstable, Town of East Longmeadow, Town of Wayland, Town of Boylston, Town of Winchester, Town of Warren, Town of Mattapoisett, Town of Dedham, and Town of Belchertown.
(By Beth Healy, Globe staff)

Posted by globebusiness at 12:28 PM | Comments (0)

Ex-employee files whistle-blower suit against Fidelity

A former Fidelity Investments fund manager has sued the company, claiming he was fired for ''whistle-blowing activities'' after calling attention to alleged violations of federal securities laws.

In his suit filed May 6 in federal district court in Boston the former manager and research analyst, Jonathan M. Zang of Boston, claims he was fired in May 2005 after seven years with the Boston mutual fund giant, serving as portfolio manager of various ''select'' mutual funds that invest in utilities, chemicals, natural gas and other sectors.

A Fidelity spokeswoman, Anne Crowley, said "the claims by this individual are without merit and we will vigorously defend against this suit.''

Crowley also noted that a similar case Zang filed with a branch of the Labor Department that protects whistleblowers was dismissed last year, a decision recently upheld by an administrative law judge. Zang has sought a review of that decision.

According to his complaint, in 2005 Zang claims he was asked to review a securities registration statement and told his Fidelity superiors of "material inaccuracies and omissions,'' problems he felt violated rules meant to protect shareholders against fraud.

Zang told his superiors, and later his collegues in a widely-distributed e-mail memo, that the company's disclosures ''overstated the connection between a Select fund's performance and the compensation of the Select fund's portfolio manager,'' according to his complaint.

Zang also claimed that Fidelity was operating what he called "veiled index funds,'' which charge fees as if they were actively managed but in reality are largely the same as lower-cost index funds.

He later e-mailed his concerns directly to Fidelity's top managers, including Abigail Johnson, a member of the company's controlling Johnson family who at the time ran its investment unit FMR Co.

Fidelity eventually changed some disclosures about compensation as a result of Zang's concerns, his complaint states, but also began to critize his job performance and called his e-mail "unacceptable and unprofessional.''

His e-mail, Fidelity later told Zang in a written warning, violated its rules on electronic communications.

The company terminated him effective July 15, 2005, according to the complaint, which Fidelity later explained was part of a management reorganization of FMR Co.

But while others who left in the reorganization received severance pay, the complaint states, Zang did not, allegedly because of activities that should have been protected under securities rules.

Zang seeks to be reinstated to his prior position and other awards including including back pay, punitive damages, and attorneys fees, the complaint states.
(By Ross Kerber, Globe staff)

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

United Ways look to at-risk homeowners

Several local United Ways said today they have allocated $400,000 to help provide education and counseling services to prevent mortgage foresclosures.

The United Ways said they received $295,000 of that amount from a state grant and combined that with roughly $100,000 of their own money.

Earlier today, ForeclosuresMass.com reported that foreclosure activity in the Bay State surged 38 percent during the first quarter as home owners grappled with resetting adjustable-rate mortgages, sub-prime lows, declining home values, and rising energy prices.

The United Way groups said the $400,000 will enable more than 600 homeowners to gain the "financial education and counseling" that they need to renegotiate their mortgages and stay in their homes.

The investment includes $100,000 that will be earmarked to better equip 2-1-1, the phone number for a telephone hot line dedicated to responding to "calls from residents at risk or in the process of foreclosure," the groups said.

The groups involved include United Way of Massachusetts Way and Merrimack Valley, United Way of Greater New Bedford, and United Way of Greater Plymouth County.

The investment was largely made possible through a grant from the Massachusetts Department of Housing and Community Development and the Massachusetts Division of Banks, the groups said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:59 AM | Comments (0)

Clean Harbors profit rises as revenue climbs

Clean Harbors Inc., a Norwell-based provider of waste-management services, said today that its first-quarter profit more than doubled, helped by higher revenue from both its technical and site services unit.

Quarterly profit rose to $8.9 million, or 43 cents per share, from $3.4 million in the same period last year.

Revenue rose 18 percent to $242.5 million from $205 million last year.

Analysts polled by Thomson Financial predicted a profit of 40 cents per share on revenue of $232.1 million.

The company said growth was broad based and all geographic regions were above plan. (AP)

Posted by globebusiness at 9:34 AM | Comments (0)

Boston Scientific launches pacemaker line in Europe

Natick medical device maker Boston Scientific Corp. announced today the European market launch of its Altrua family of pacemakers following the product line's approval by European regulators.

The company said that this is the first Boston Scientific-branded pacemaker to treat bradycardia, a condition in which the heart beats too slowly.

In addition, Altrua pacemakers deliver enhanced therapies while maintaining a small size and battery longevity, Boston Scientific said.
(By Chris Reidy, Globe staff)

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

Mass. foreclosure activity continues to surge

First-quarter foreclosure activity in Massachusetts set a record for the third straight quarter, ForeclosuresMass.com said today.

During the first three months of 2008, lenders initiated foreclosure action against the home owners of 9,114 Massachusetts properties, a 38-percent jump over the comparable period in 2007, ForeclosuresMass.com said.

“Despite all of the attention being given to the foreclosure issue, nothing has changed. In fact, things have gotten worse,” Jeremy Shapiro (right), president and cofounder of ForeclosuresMass.com, said in a statement. “Homeowners facing foreclosure should not wait for a miracle cure to this problem; rather they should seek the help of qualified professionals to help them avoid foreclosure.”

ForeclosuresMass.com, a Framingham firm that provides Massachusetts foreclosure data for investors, real estate professionals, and mortgage brokers, said it attributes the foreclosure increase to the following factors: The effects of adjustable rate mortgages, sub-prime and other "exotic" loans, the distressed lending market, decreased property values, substantially increased gasoline and home heating costs, and the slumping economy.

In the 12-month period that ended March 31, lenders initiated 32,349 foreclosures statewide against home owners, a year-over-year increase of 45 percent.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:47 AM | Comments (0)

Lowell development plan seeks expedited review

The city of Lowell said that an ambitious plan to redevelop the Hamilton Canal District is the first project to file for environmental approval from the state under a new streamlined review and permitting process.

The city hopes the project will transform "the gateway to Downtown Lowell" through plans to construct environmentally friendly buildings along with the adaptive re-use of old mill buildings.

Plans call for the creation of more than 600 mixed-income housing units along three canals as well as 350,000 square feet of commercial development and more than 50,000 square feet of retail; the developer is Trinity Hamilton Canal Limited Partnership, an affiliate of Boston developer Trinity Financial.

The result of the state's new expedited permitting process is expected to be a better coordinated, more predictable, and more efficient permitting process for priority developments, city officials said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:07 AM | Comments (0)

Frugal vacationers boost Old Sturbridge Village

Year-to-date attendance at Old Sturbridge Village jumped 33 percent over the same period in 2007 as rising gas and air-travel prices prompted many consumers to take cheaper family vacations closer to home, an Old Sturbridge Village official said.

Located in Sturbridge, Old Sturbridge Village bills itself as a "living history museum" with more than 40 restored buildings, including farm houses and churches, on 200 acres of fields and woods; its attributes make it an ideal venue for outings for families with children.

Between Jan. 1 and April 30, the number of Old Sturbridge visitors was 41,157, compared with 30,948 for the same period in 2007, with two school vacation weeks in April 2008 giving the four-month numbers a nice lift, said James E. Donahue, president and chief executive of Old Sturbridge Village.

Donahue noted in a statement that 7 million people live within an hour's drive of Old Sturbridge Village.

His press release also cited results from a recent survey by AAA of Southern New England, which found that 58 percent of respondents plan to book a less expensive vacation this year than last and that 9 percent added that they plan a vacation this year closer to home.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:27 AM | Comments (0)

May 6, 2008

Brian Keane to run a company with a China focus

Brian T. Keane, who left the Boston technology services firm Keane Inc. under a cloud two years ago, has resurfaced as CEO of a private equity-backed Wakefield company focused on outsourcing software applications and services to China.

The company, set to be relaunched Wednesday under the name Dextrys, seeks to be the leader in a fragmented Chinese tech-services market that’s poised for rapid growth.

Dextrys’s motto will be ‘‘Making China Easy’’ for US companies farming out software and services operations. Research firm Gartner Inc. estimates the market in China will be $6.1 billion in revenue this year and projects it will nearly double to $12 billion by 2012.

‘‘This market is just in its infancy,’’ Keane, 46, said. ‘‘Today about 80 or 85 percent of the world’s outsourcing is going to India. But a lot of companies feel they’re overexposed there. China is the new frontier of opportunity.’’

With wage inflation, employee turnover, and the rise of the Indian rupee against the dollar, ‘‘India fatigue’’ is taking hold, said Keane, whose former company had a strong presence in India.

He said China today provides software application and product engineering services for about 10 to 20 percent cheaper, on average, than India. And companies buying technology services in China, where the government is providing subsidies to service providers, often can gain a foothold to sell their own products there, he suggested.

Keane resigned from the company bearing his family’s name in 2006 after two female employees accused him of harassment. He denied the allegations. But the company paid $1.14 million to settle one complaint and an undisclosed sum to settle the other.

Keane Inc. last spring was acquired for $854 million by Caritor Inc., based in San Ramon, Calif., which then took the Keane name.

Dextrys has about 1,400 employees — 200 in Massachusetts, another 200 in San Francisco and Atlanta, and the rest in China. Its management team in Wakefield includes 10 veterans of Keane Inc.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 6:13 PM | Comments (0)

MIT prof: A gas tax cut won't bring much relief

Gas station owners are likely to benefit from cuts to federal and state gas taxes as much as, if not more than, consumers, according to a professor at MIT Sloan School of Management.

Several states are proposing to suspend their gas taxes, and presidential candidates Hillary Clinton and John McCain are recommending a summer suspension of the federal gas tax as a way of providing relief to consumers from record gas prices. Barack Obama, another presidential candidate, opposes the idea.

In a press release today, Joseph Doyle (right), the Jon D. Gruber Assistant Professor of Applied Economics at MIT Sloan, said that drivers hoping for a break from such proposals will likely be disappointed; gas prices would likely fall by significantly less than the full amount of the actual tax cut, assuming that the proposed tax suspensions become reality.

"There is a common misperception that if a state tax of 5 percent per gallon is eliminated, then the price at the pump will fall by 5 percent," Doyle said in a statement. "In fact, our research suggests that retail gas prices drop by as little as 3 percent following the elimination of a 5 percent sales tax. Given tight supply and demand conditions, the benefits of a tax holiday are shared by station owners and consumers. For the federal excise tax, we would expect a reduction in prices at the pump on the order of 10 cents."

Doyle's research was published in the Journal of Public Economics in April, noted MIT Sloan, which added that Doyle's fellow researcher on the project was Krislert Samphantharak of the University of California San Diego.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:32 PM | Comments (0)

Hospitality Properties' results rise on rental income

Hotel real estate investment trust Hospitality Properties Trust said today that its first-quarter results edged up nearly 13 percent on higher rental income, narrowly beating Wall Street's expectations.

(According to the REIT's website, one property in its portfolio is Candlewood Suites in Burlington, shown at right.)

Funds from operations, or FFO, rose to $110.9 million, or $1.18 per share, in the first quarter, from $98.5 million in the year-ago period, the Newton REIT said.

On average, analysts surveyed by Thomson Financial expected FFO of $1.17 per share.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key gauge of REIT strength because it gives a more accurate picture of cash performance.

Quarterly net income after paying preferred dividends increased to $48.3 million from $39 million in the prior year.

Revenue rose nearly 10 percent to $319.2 million from $290.7 million on higher rental income from the REIT's leased hotels and travel centers.

Hospitality Properties shares added 22 cents to $32.18 in afternoon trading on the New York StocK Exchange. (AP)

Posted by globebusiness at 2:30 PM | Comments (0)

Cabot Creamery gets $50,000 fine, probation in spill

Cabot Creamery was fined $50,000 and placed on two years' probation for a "catastrophic" 2005 ammonia spill that killed plants, fish, and macroinvertebrates in the Winooski River.

The well-known Vermont cheese maker, which had a similar incident in 1983, also was ordered yesterday by U.S. District Court Judge William Sessions III to spend $50,000 on a "Supplemental Environmental Project," develop a compliance and ethics program and hire an independent consultant to evaluate its compliance with the federal Clean Water Act.

"Cabot's irresponsible handling of hazardous chemicals caused miles of catastrophic damage to the Winooski River," said Michael Hubbard, a special agent in charge for the US Environmental Protection Agency. "This was not the first time, and although Cabot employees may not have intended to cause this significant harm to the river, their carelessness and the lack of management safeguards was a breach of the public's trust."

The incident occurred beginning on July 17, 2005, when two employees - draining ammonia from an old condenser as part of a refrigeration system replacement - left a water hose in a 55-gallon drum, causing the ammonia to overflow into a storm drain and contaminate the river.

The next day, the same thing happened, even though Cabot had agreed as part of a civil settlement in the 1983 spill to institute policies for the handling of hazardous materials to prevent it from happening again.

The water-ammonia mixture harmed several miles of the river, killing an estimated 14,500 fish

The company, which pleaded guilty to one count of negligently discharging a hazardous material, was also faulted by prosecutors for failing to consult its environmental adviser or an outside environmental consultant as it undertook the refrigeration system upgrade.

Cabot spokeswoman Roberta MacDonald called the sentencing a "technical resolution" of the case but said the company remains committed to protecting the headwaters of the Winooski.

"We've said `mea culpa.' We took complete responsibility immediately. We called all the proper authorities. We know we made a horrible mistake, and we've done nothing for the last three years but try to make the river better," MacDonald said.

US Attorney Thomas Anderson credited Cabot for its cooperation in the spill investigation.

MacDonald said Cabot Creamery wants to help others avoid similar spills.

"Part of what we want to do is commit to making our experience known to everyone who deals with refrigeration in the state, so it doesn't happen to anyone else." (AP)

Posted by globebusiness at 1:59 PM | Comments (0)

Mass. Housing Partnership marks milestone

The Patrick administration plans tomorrow to honor the 10,000th homebuyer under the state's mortgage financing program for residents with low and moderate incomes.

The Massachusetts Housing Partnership, working through housing groups and banks around the state, financed 1,145 home loans for $229.4 million in 2007; last year's number surpassed the partnership's previous record of 913 mortgages in 2004.

(An image from the partnership's website is at left.)

The state's "soft second" loan program, which has been available since 1991, provides subsidized first and second mortgages at fixed, below-market rates to homebuyers who qualify and attend first-time homebuyer classes. The average income for a borrower under the program is $49,639, the partnership said.

Loan No. 10,000 went to Hyacinth and Andrew Doman, who purchased a $220,000 home in Dorchester last summer and pay $1,350 a month. Bank of American Corp. provided their mortgage, the partnership said. The Domans have four children.
(By Kimberly Blanton, Globe staff)

Posted by globebusiness at 1:31 PM | Comments (0)

Patrick to go to India or Israel on trade mission

Governor Deval Patrick, who led his first trade mission to China in November, said he will likely next go to India or Israel to drum up business for Massachusetts.

Patrick, speaking at a medical device industry conference in Boston today, also noted that Lt. Governor Tim Murray plans to make a foreign trade mission to Ireland later this year. He said the state could justify many more excursions to help boost the Massachusetts economy. But Patrick also said he does not want to make so many trips that he draws criticism for spending too much time out-of-state.

“We want to keep it to one [foreign trade mission] a year,” he said. “We planned for a lot of blowback from China, because previous trade missions had been criticized.”

His decision to go to India or Israel comes at a time when Massachusetts venture capital firms are starting to invest more in those countries.

Patrick made the remarks while fielding questions from executives at the Massachusetts Medical Device Industry Council's annual meeting in Boston, which was attended by about 450 people. Other speakers included Larry Lucchino, chief executive of the Boston Red Sox, and executives from two healthcare equipment companies, Covidien Ltd., which has 2,200 Massachusetts employees, and Becton, Dickinson & Co., which employs 400 locally.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:28 PM | Comments (0)

HRPT Properties agrees to sell buildings for $565M

Office real estate investment trust HRPT Properties Trust said today that it agreed to sell 48 medical office, clinic ,and biotech laboratory buildings to Senior Housing Properties Trust for $565 million.

Senior Housing will pay about $554 million in cash at the closings and take on three mortgages on two properties that will total about $11 million, HRPT of Newton said.

HRPT expects the sales to close in phases during the next 12 months.

As of the end of 2007, HRPT's historical investment in the properties was about $397 million and the depreciated book carrying value of the properties was about $350 million. It expects to see capital gains of about $215 million from the sales.

HRPT said its aggregate capitalization rate for the sales is about 7.1 percent, based on $40 million per year in net operating income from the buildings.

HRPT plans to use sale proceeds to purchase properties and to pay down debt.

Senior Housing, which is also based in Newton, was formerly a subsidiary of HRPT that in 1999 was spun off to HRPT stockholders. At that time, the companies began an agreement prohibiting Senior Housing from buying medical office, clinic, and biotech laboratory buildings. The agreement has been changed to allow Senior Housing, rather than HRPT, to make investments in such properties.

HRPT shares rose 6 cents to $7.09, while Senior Housing shares fell 65 cents to $23.40. Shares of both companies trade on the New York Stock Exchange. (AP)

Posted by globebusiness at 12:07 PM | Comments (0)

Fidelity brings back another old hand

Fidelity Investments said Tuesday it hired Larry Renfro to oversee a new division that will include its human-resources services operations, the latest senior executive to return to the Boston mutual fund giant after a long hiatus.

Renfro, 54, worked at Fidelity previously from 1981 to 1988, becoming a managing director of parent FMR Corp. before leaving for a series of jobs elsewhere, most recently as president of AARP Services Inc., which offers benefits to the nonprofit association's 40 million members.

Renfro will report to Fidelity president Rodger A. Lawson, who himself rejoined Fidelity last summer after fifteen years at other companies. In addition to the human-resources work, which provides payroll and benefits services to other companies, Renfro will oversee Fidelity's life insurance company, a charitable services unit, and a division responsible for acquisitions.
By Ross Kerber, Globe staff

Posted by globebusiness at 11:53 AM | Comments (0)

Costly fuel will scrub JetBlue LA-to-Hub flights

Good morning, travelers. While you were sleeping, oil prices went off without you and hit a record $120.93 a barrel on the New York Mercantile Exchange.

And JetBlue decided to call off, at least for now, plans to start flying between LA and Boston and New York because of - let's say it all together - the high cost of jet fuel.

The discounter said in February it would launch service May 21 at LAX with one daily flight to Logan and three to JFK. But Bryan Baldwin at JetBlue said that the discounter decided that high fuel costs made the move too pricey.

The LA Times, which first broke the story, talked to an unnamed JetBlue official who illustrated the conundrum with this bit of math: Last year it cost $9,600 to fill up a JetBlue Airbus A320 for a transcontinental flight and now it's $15,000.

I myself just shelled out $45 to fill my Subaru on Morrissey. Life is tough. And for travelers prospects for the summer travel season are looking expensive.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 11:26 AM | Comments (0)

Novartis has high hopes for vaccine candidate

The Cambridge office of Swiss drug maker Novartis AG has released encouraging preliminary results for an experimental meningitis vaccine - a vaccine that could be used to treat infants as well as children.

(At right, Novartis offices in Cambridge.)

In a clinical test, Novartis, which has about 2,000 employees in Massachusetts, compared its drug candidate Menveo against a vaccine already on the market called Menactra.

According to Novartis, its test data showed that Menveo produced "a greater immune response" in adolescents 11 to 18 years of age compared to Menactra.

Menveo might also be used to treat infants, an at-risk group for the disease.

The vaccine is designed to treat meningococcal disease, a leading cause of bacterial meningitis, "a rare but contagious and potentially life-threatening infection," Novartis said in a press release. "Infants and adolescents have the highest rates of disease, which can be fatal. Each year, approximately 1,400 to 2,800 cases of disease occur in the US, and about 10-14 percent of patients die. The currently available vaccines are not licensed for use in infants."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:36 AM | Comments (0)

State Street unveils expansion plans in Poland

State Street Corp. said today that it has signed a lease for a new operations center in Krakow, Poland, that can accommodate up to 1,000 employees.

(At right, a popular Krakow vista.)

State Street of Boston, which provides financial services to institutional investors, said it currently has more than 150 employees in Poland, out of 6,000 in Europe and 27,000 worldwide.

The Krakow center will be a new 125,000-square-foot building that is scheduled for completion in June 2009, State Street said.

“Poland is a key component to support our continued growth in Europe,” Tim Caverly, executive vice president of State Street’s investor services business in continental Europe, said in a statement. “Krakow provides access to a highly educated work force and deep labor pool of talent."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:07 AM | Comments (0)

IPG Photonics' profit rises on international sales

IPG Photonics Corp., an Oxford laser supplier, said today that its first-quarter profit rose on higher sales of lasers used for processing materials in microchips, medical devices, and other industries, as well as strong European and Asian sales.

Net income rose to $8.1 million, or 18 cents per share, from $6.6 million in the 2007 first quarter.

Sales rose to $52.9 million from $41.8 million.

Analyst polled by Thomson Financial expected profit of 16 cents per share on sales of $52.4 million.

(At right, an IPG Photonics laser gets down to business.)

Chief Executive Valentin Gapontsev said international sales helped overcome a weak US market.

"Strong shipments in the European Union and continued expansion into the high-growth markets of Russia, India, China, and South Korea more than offset the softness we experienced in the U.S., which accounts for only 18 percent of our sales," he said in a statement.

The company said lasers used for material processing showed the strongest growth.

The company also said today that it expects second-quarter earnings per share to grow at least 7 percent on strong international sales.

The company forecast profit between 15 and 19 cents per share, compared with a profit of 14 cents per share last year.

It also expects of sales of between $52 million and $56 million, compared with $44 million last year. (AP)

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

The Globe's Pfeiffer is moving to WBUR

Pulitzer-Prize winning Boston Globe reporter Sacha Pfeiffer is moving to WBUR-FM, a National Public Radio affiliate in Boston, next month as a health and science reporter.

Pfeiffer, 36, has worked for the Globe for 13 years and covered a variety of beats, from the the state court system to philanthropy.

As a member of the Globe's Spotlight investigative team, she helped expose a pattern of sexual abuse among clergy in the Catholic Church.

She is a co-author of the book "Betrayal: The Crisis in the Catholic Church." She was a John S. Knight journalism fellow at Stanford University from 2004-2005, and currently covers legal affairs and nonprofit organizations as a business reporter.

Pfeiffer is a graduate of Boston University and now works there as an adjunct professor of journalism.
(By Carolyn Y. Johnson, Globe staff)

Posted by globebusiness at 8:36 AM | Comments (0)

Green Mountain Coffee promotes Fair Trade joe

Saturday is World Fair Trade Day, note the folks at Green Mountain Coffee, and these Vermonters are celebrating this red-letter day with a one-day sale on some of their certified Fair Trade coffees.

Green Mountain Coffee is the coffee segment of Green Mountain Coffee Roasters Inc. of Waterbury, Vt.

On Saturday,customers can save 20 percent on purchases of 10-ounce bags of Sumatran Lake Tawar, Kenyan Highland Cooperatives, Colombian Fair Trade Select, and Mexican Decaf Huatusco Cooperative; the discount is available for website and phone orders that day only, and customers must use promo code 7200-2242, Green Mountain Coffee said. (The phone number for placing orders is 888-879-4627.)

The 10-ounce bags typically sell for $7.69 to $8.19 apiece; on World Fair Trade Day, discounted prices will range from $6.16 to $6.56, the company said.

The varieties on sale are Fair Trade Certified, meaning that small-scale farmers were paid a fair price for their beans, the company said.
(By Chris Reidy, Globe staff)

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

Marathon invests in Mascoma, which raises $61 m

Mascoma Corp., a Boston renewable energy company, announced today a $10 million equity investment by Marathon Oil Co. of Houston, an integrated energy company involved in everything from exploration and oil sands mining to refining and transportation.

The investment, which is part of $61 million raised in Mascoma's third round of funding, reflects Marathon's commitment to collaborating on the development of "environmentally friendly and cost-effective next-generation ethanol production," Mascoma said.

Mascoma is working to develop ethanol from wood chips, waste paper sludge, and switch grass. (At right, a Mascoma researcher works to engineer new bacteria capable of producing ethanol from cellulosic materials such as wood chips.)

Last week, auto giant General Motors Corp. said it had taken an ownership stake in Mascoma, though GM did not disclose the extent of its ownership stake. (At left, a GM product.)

Mascoma said today that with the completion of this round of financing, it has raised $100 million in equity investment.

Mascoma also noted that it has received commitments for more than $100 million in state and federal grants, including the recent awarding of a $26-million grant from the US Department of Energy.

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

Posted by globebusiness at 7:22 AM | Comments (0)

May 5, 2008

Boston Scientific reports a win in patent dispute

The medical device maker Boston Scientific Corp., of Natick, today said an arbitration panel with the World Intellectual Property Organization ruled in its favor in a patent dispute with Medinol Ltd., of Israel.

Medinol had argued that its patents were infringed on by Boston Scientific’s Liberte and Taxus stents, used to prop open arteries after they are cleared of blockages.

The companies agreed to arbitration in 2005. Medinol has a right to appeal.
(AP)

Posted by globebusiness at 6:39 PM | Comments (0)

Fashion stores plan Natick Collection openings

The Natick Collection shopping mall said that famed fashion brands Hugo Boss and Ferragamo are bringing their European flair to Boston's western suburbs with new store openings.

Hugo Boss is scheduled to open a store at Natick Collection on Friday, the mall said, and Ferragamo is set to follow suit in July.

"The Hugo Boss brands encompass all key fashion areas, ranging from classic clothing, evening and leisure-wear to functional sportswear and complementary accessories", the mall said in a press release.

As for Ferragamo, the press release noted, "A symbol of consolidated craftsmanship and creative innovation, Salvatore Ferragamo is one of the world's most important and best known 'Made in Italy' luxury brands."

(At right, a young woman models a minimalist creation from the Salvatore Ferragamo Autumn-Winter 2008 collection during a recent fashion show in Shanghai.)

For recent Globe coverage of Natick Collection, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:18 PM | Comments (0)

Frank wants answers on jumbo loan inaction

A key House lawmaker is complaining that the mortgage industry hasn't done its part to make higher-value loans available in costly housing markets after Congress took action in February.

US Representative Barney Frank, a Newton Democrat, said today that the House Financial Services Committee that he chairs will hold a May 21 hearing to try to find out why so-called jumbo mortgages remain difficult to get and often carry high interest rates.

Frank will try to get answers from mortgage bankers, Wall Street financiers, and government-sponsored mortgage firms Fannie Mae and Freddie Mac.

Frank told a Mortgage Bankers Association Convention in Boston that the various players are pointing fingers at one another more than a month after new regulations took effect. Congress passed a bill allowing Fannie and Freddie to buy and guarantee loans up to more than $700,000, compared with the previous cap of $417,000. (AP)

Posted by globebusiness at 12:58 PM | Comments (0)

Shields MRI teams up with the Celtics

The Boston Celtics said today they have designated Shields MRI as the official MRI provider of the team.

The multi-year partnership will provide Shields MRI with a unique marketing platform, the team said.

Shields MRI is part of the Shields Health Care Group, a Quincy company that operates more than 20 imaging and radiation oncology centers.

The photo shows, from left to right, Celtics president Rich Gotham, Shields MRI president Jack Shields, Celtics legend Jo Jo White, and Celtics senior vice president Sean Barror.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:45 PM | Comments (0)

Kadant plans to repurchase $30 million in shares

The board of Kadant Inc. approved $30 million to repurchase shares over the next year, the Westford-based supplier to the paper industry said today.

(At right, an image from the company's website shows a fiber-processing system used in stock preparation.)

At the stock's opening price of $25.94 this morning on the New York Stock Exchange, the allocation would buy about 1.2 million shares. That would be about 8 percent of the 14.3 million shares the company had outstanding on March 29.

Kadant said the move comes on top of the $15.5 million it has spent to buy 583,000 shares through May 2. (AP)

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

First Marblehead cuts 500 jobs, sees $200M savings

First Marblehead Corp. today said that it slashed 500 jobs in a move to save $200 million a year, after the company lost a large client amid turmoil in the secondary market for student loans.

In its most recent annual report, the Boston company said it had 1,028 employees as of June 30.

First Marblehead helps banks package their "private student" loans into bonds and sell them to investors. Last month, Bank of America Corp., which accounted for about 15 percent of First Marblehead's annual revenue, said it would stop doing business with the company.

A nonprofit organization that guarantees to cover losses on student loans, The Education Resources Institute, filed for bankruptcy protection earlier this year. Bank of America had a provision that allowed it to end its relationship with First Marblehead if TERI went out of business.

"This has been an extraordinarily challenging business environment for our company," said Chief Executive Jack Kopnisky in a statement. "The market and credit conditions have not improved and TERI's bankruptcy filing has forced our business situation to change quickly." (AP)

For recent Globe coverage of First Marblehead, please click here.

Posted by globebusiness at 11:03 AM | Comments (0)

Local gas prices continue to rise

Massachusetts gas prices rose two cents over the last week to an average of $3.56 for a self-serve gallon of regular unleaded, AAA Southern New England said today.

It was the fourth consecutive week of increases, but the smallest one-week increase in the last month, said AAA Southern New England, which added the Massachusetts average is currently five cents below the national average of $3.61 a gallon.

A year ago at this time, the Massachusetts average price was $2.93, the association said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:38 AM | Comments (0)

Liberty Mutual reports earnings results

Liberty Mutual Group today reported that net income rose 3 percent for its first quarter to $360 million when compared with the same period from a year ago.

First quarter revenues, meanwhile, increased 12 percent to nearly $6.9 billion from a year ago, Liberty Mutual said.

Late last month the venerable Boston insurer divulged plans to buy Safeco Corp., a Seattle insurance company, for $6.2 billion, the largest acquisition by a Massachusetts company in nearly two years.

In a statement, Liberty Mutual chairman, president, and chief executive Edmund F. Kelly addressed the company's quarterly results.

"Despite significant competition, higher catastrophe losses, and a global credit crisis, our results in the quarter were solid," Kelly said in the statement.

For recent Globe coverage of Liberty Mutual, please click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:54 AM | Comments (0)

EnerNOC acquires Baltimore firm

EnerNOC Inc., a Boston company in the energy-management business, said today that it paid $4.75 million to buy South River Consulting LLC, a privately held Baltimore firm focused on energy procurement and risk management services.

EnerNOC uses technology to automate the so-called demand response process for electricity utilities by signing up commercial and industrial companies to conservation programs; during peak demand periods, such as hot summer days, EnerNOC uses its technology to remotely curtail the electricity consumption of companies that have signed onto the program as a way to lower the likelihood of brownouts and outages.

EnerNOC and South River have previously collaborated in helping mutual clients, and EnerNOC said that the integration of South River's wholesale market knowledge and technology will strengthen the portfolio of energy-management solutions it can offer to customers.

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

Posted by globebusiness at 9:24 AM | Comments (0)

Bruker swings to loss in first quarter

Billerica X-ray technology and molecular analysis company Bruker Corp. said today that it swung to a loss in the first quarter, weighed down by acquisition-related expenses and foreign currency exchange losses.

The company reported a loss of $685,000, or break-even per share, compared with earnings of $14.4 million.

Results include foreign exchange losses, acquisition-related expenses and interest expense, totaling 10 cents per share.

Revenue rose 15 percent to $238.4 million from $207.5 million in the first quarter of 2007.

Analysts polled by Thomson Financial, on average, estimated earnings of 6 cents per share on sales of $241.3 million.

(At left, an image from the company's website shows a product called BruNo, a crystal screening system.)

In February, Bruker BioSciences Corp. bought Bruker BioSpin Group and renamed itself Bruker Corp. (AP)

Posted by globebusiness at 8:18 AM | Comments (0)

Epix is in line for $7.5 million milestone payment

Epix Pharmaceuticals Inc., a Lexington biopharmaceutical company, said today it is entitled to a $7.5 milestone payment from British drug maker GlaxoSmithKline PLC for its work in developing a potential treatment for Alzheimer's disease.

A collaboration agreement between the two companies calls for GlaxoSmithKline to make such a payment when Epix initiates Phase 2b clinical testing of a drug candidate called PRX-03140, Epix said, and the testing has begun.

The hope is that PRX-03140 can be part of a drug cocktail that can manage the progression of Alzheimer's disease and its symptoms, the companies said.

Among other programs, Epix is also working to develop new cystic fibrosis drugs. (At right, an Epix senior scientist works on an experiment related to cystic fibrosis.)

Last month, the company said that it expects to receive as much as $37.7 million from the Cystic Fibrosis Foundation to help continue that research.

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

Posted by globebusiness at 7:14 AM | Comments (0)

May 2, 2008

Critical Therapeutics merging with Cornerstone

Critical Therapeutics Inc.'s stock fell 23 percent today after the Lexington biotech said it will merge with privately held Cornerstone BioPharma Holdings Inc. of North Carolina.

The combined company will be called Cornerstone Therapeutics Inc., be based at Cornerstone’s offices in Cary, N.C. and run by Cornerstone's chief executive, Craig Collard. Cornerstone shareholders will also control 70 percent of the combined firm.

Critical Therapeutics, which owns rights to two asthma drugs, Zyflo and Zyflo CR, had $12.9 million in revenue last year, but lost $37 million, forcing it to consider a sale or merger.

With today's stock decline, Critical had a stock market value of roughly $21 million, suggesting the combined firm will be worth about $70 million.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 5:08 PM | Comments (0)

What's next? Hamburger Helper at Harvard?

Harvard is the world's richest university, yet it recently pulled whole grain pasta from the dining service menu, replaced cherry tomatoes with wedges, and even started using more chicken thighs in lieu of breasts.

Harvard junior Daniel Demetri was outraged when he noticed the changes.

"It was like, who are they kidding?" he said.

Actually, the university with the roughly $35 billion endowment was just doing what many other schools are doing in these tight times. The nation's rising food costs are stirring up problems for dining halls and cafeterias, and institutions serving thousands of people a day are trying to find ways to cut costs while maintaining quality.

At Harvard, it didn't last. In the face of outraged students demanding their whole grains it restored most of the items. But other places have stuck with the changes, or found more affordable ways to feed students.

Several schools have eliminated trays, on the theory that students will grab less if they have to carry the food in their hands. Still other schools, which charge students by the item, are increasing what the cost of healthier choices.

Food prices rose more than 4 percent in the United States last year, the biggest jump since 1990, according to the US Department of Agriculture. A similar hike is predicted this year.

Food costs globally are being driven up by a variety of factors, including the rising price of petroleum products, used not just for transportation, but for fertilizers and processing. Grain prices are increasing as they are used to produce biofuels and to feed livestock to satisfy a growing demand for meat in developing countries.

Dealing with food price spikes is made more difficult by the fact schools generally set their dining hall budgets well before the start of the school year.

"We don't want to compromise quality, and we're not going to compromise nutrition," said Scott Berlin, director of dining and hospitality services at the University of California, Santa Cruz, which experimented briefly with going trayless.

San Diego State University also has done away with trays at its dining room in the Cuicacalli resident hall, a traditional "all-you-care-to-eat" facility. The move, started in September, saved the facility 4.2 percent on food costs, said Paul Melchior, director of dining services, and actually allowed an expansion of the menu.

In addition, no trays mean less washing, cutting energy and soap costs.

Stephanie Savoian, a sophomore accounting major at San Diego State, ate at the facility before it went trayless.

"People would tend to grab as much stuff as they could so they didn't have to go up again, and I know from experience people would waste a lot of food that way," she said.

Now that she lives off campus, she usually brings food from home because buying on campus is too expensive. "I have definitely noticed the increase in prices even from the beginning of the fall," she said.

The University of Massachusetts in Amherst, which has the third largest on-campus dining operation in the country, serving 40,000 meals per day to 13,600 students, has instituted a "small plate/big flavor" program, said Ken Toong, executive director of dining services.

Instead of a 6-ounce piece of chicken, students now get 4 ounces. Instead of 4-ounce bagels, students now get 3-ounce bagels.

Students are welcome to get seconds if they are still hungry, Toong said, but the smaller portions of higher quality food has reduced waste.

Junior Jamie Saengsawang has noticed the changes. "I've felt the food has gotten even better since my freshman year," the hospitality and tourism management major said.

The school listens to student requests and concerns and posts nutritional information with each dish.

"Eating in the dining commons isn't a nightmare option at UMass," he said.

Educating students to take less, and waste less, is a strategy used at many schools. At Harvard, which serves 6,600 undergraduate students in 13 dining halls, posters as well as messages on television screens in the dining facilities encourage conservation.

UMass is also eliminating waste and saving money by streamlining its cooking process, using a computer program that analyzes traffic flow so cooking can be done based on need.

Higher food prices are not just a problem for colleges.

School systems that operate their own dining services are also looking at ways to save, said Jean Saunders, wellness director at the Chicago-based Healthy Schools Campaign.

Schools must meet federal government minimum nutrition standards, so changing menus is often not an option, she said. Instead, many school food service operations are trying to boost revenue with increased sales of supplemental items, including juices, energy bars and other snacks.

She also expects many school systems to look hard at their contracts this summer and try to negotiate better deals for the new school year.

Schools are going to have to become more creative at saving money as food prices continue to rise, said UC Santa Cruz's Berlin. "This is a hot topic throughout the hospitality industry that's not going to go away," he said. (AP)

To read a 2005 Globe story about Harvard's dining halls replacing Frosted Flakes and some other brand name cereals with less expensive options, click here.

Posted by globebusiness at 2:41 PM | Comments (0)

FDA flags Stryker's Hopkinton facility

Michigan medical device maker Stryker Corp. said today that it received a Food and Drug Administration warning letter over quality issues at its Hopkinton manufacturing plant.

The warning letter concerns observations made during an inspection initiated in September, the company said, and cites issues over the company's handling of a past clinical study. Other issues included the company's quality systems, such as its reporting procedures and review board.

Stryker said several corrective actions and changes were made and additional improvements are planned. No products are affected by the letter.

Stryker shares fell $1.68, or 2.6 percent, to $63.98 in afternoon trading on the New York Stock Exchange. The stock has traded between $58.45 and $76.89 over the last 52 weeks. (AP)

Posted by globebusiness at 2:30 PM | Comments (0)

Continental tests electronic boarding pass at Logan

Tech-savvy travelers catching a Continental Airlines Inc. flight at Boston's Logan International Airport now have one less thing to worry about: printing out a boarding pass.

Starting this week, passengers carrying any kind of cell phone or PDA, such as a BlackBerry (right), that receives e-mails and opens Web pages could choose to get an electronic version of the boarding pass when checking in online. They receive an e-mail with a link to a Web page displaying their encrypted, two-dimensional bar code, which looks like a Dalmatian-spotted postage stamp and reveals their name and flight information when scanned at the Transportation Security Administration checkpoint and Continental gate.

Continental began testing this "paperless boarding pass" at the Houston airport in December, expanded the pilot program to Reagan Washington National Airport cq last week, and will introduced it at the Newark International Airport in mid-May.

It is only available to customers who are leaving those airports for another domestic destination and are the sole passengers on their reservations. Families and other groups traveling on a single reservation can't use the electronic boarding passes because it would take too long to pull up multiple barcodes on a single mobile device, the airline said.

Continental, the only US airline employing paperless boarding passes at the moment, would not disclose how much it paid to develop this technology and provide the handheld scanners to the TSA. The airline said it does not expect to cut costs with this initiative, but hopes to improve passengers' travel experience.

"It saves customers the step of stopping by a ticket counter to pick up a boarding pass or printing it out at home," said Jared Miller, Continental's director of customer self-service marketing programs.

It also should save other customers time by reducing the number of customers lining up at the ticket counter or self-serve kiosks to print out boarding passes.

"You hope the rest of the airlines will pick this up too because it'll help the airport flow," said Edward Freni, Logan's director of aviation.

In Houston, 500 to 600 Continental passengers a day are flashing their paperless boarding passes, Miller said. About 20 passengers did so today at Logan.

Business traveler Stef Witteveen, who was holding a paper boarding pass while in line at a Logan security checkpoint this morning, hadn't heard about the electronic initiative but said it sounds good because "you don't always have a printer available."

The chief executive of Randstand USA, who was heading back to Atlanta on a Continental flight, typically checks in at an airport kiosk.

Continental and the TSA will evaluate the pilot program's usage at the four airports before deciding to expand it wider. They're also tweaking the technology, like improving the readability of the bar code on a wider variety of mobile devices. But one thing that likely won't change is the rule that neither the TSA checkpoint agents nor Continental gate agent hold passengers' iPhones, BlackBerrys, Treos, or other mobile devices when scanning the electronic barcodes.

"We don't want to drop it," said Kevin Anzalone, a TSA supervisor at Logan. "Next thing you know is we're discussing how to replace it, and it's $600 or $700."
(By Nicole C. Wong, Globe staff)

Posted by globebusiness at 1:59 PM | Comments (12)

Judge grants injunction in Commerce Bank case

Commerce Bank & Trust Co. of Worcester was granted an injunction today that will prevent the parent of TD Banknorth Inc. from using its new name "TD Commerce Bank'' at least in parts of Massachusetts, said an attorney involved in the case.

In theory, the lawsuit has the potential to influence a name change of TD Banknorth Garden, the Boston arena where the Bruins and the Celtics play their home games.

At a hearing this morning in Worcester, a federal judge allowed a motion seeking an injunction by the Worcester bank, said its attorney David Rich, who argued the new name for TD Banknorth branches following its merger with a New Jersey bank would confuse customers.

The judge scheduled a further hearing next week to discuss exactly what the geographic scope of the injunction would be, Rich said.

But as a practical matter, he added, the judge said the restriction could also limit TD Banknorth's ability to put the new name on TD Banknorth Garden.

A spokesman for TD Banknorth said he couldn't immediately comment. The bank previously had said it was still studying what name it might put on the arena under the terms of a $6 million annual sponsorship agreement.

In April TD Banknorth parent Toronto-Dominion Bank closed on its $8.5 billion purchase of Commerce Bancorp Inc. of New Jersey. It had planned to switch the names of Commerce branches in mid-Atlantic states first later this year, then to change the names on TD Banknorth branches in New England states starting in 2009.

In all the combined company will have 1,100 US branches, dwarfing the Worcester bank's 12 branches, but the Worcester bank argues it has a strong claim on the name based on its operations in Massachusetts since 1955.
(By Ross Kerber, Globe staff)

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

Palomar sales down, and so is its stock

Palomar Medical Technologies Inc. shares fell to a four-year low today, after the Burlington laser company posted a first-quarter loss and an analyst downgraded the stock.

The company, which makes cosmetic lasers to zap away wrinkles and hair follicles, said Thursday it took a loss of $1 million compared with a profit of $5.9 million for the same quarter last year. Revenue fell 27 percent, to $23 million from $31.5 million.

The research firm Lazard Capital Markets downgraded the stock today to "hold" from a "buy."

In a conference call with analysts, Palomar Chief Executive Joseph P. Caruso said the company's sales were hurt by high turnover in its sales force and a slowdown in the economy. "Physicians appear to be postponing major buying decisions,'' Caruso said. "This trend is fueled by a decrease in physician confidence, in consumer spending, and could be with us for a while."

Palomar shares were down 9 percent, or $1.08, to $10.91 as of mid-day Friday after falling 15 percent on Thursday. The stock is trading at its lowest level since January 2004. The company, which has a market value of $200 million, had 252 employees at the end of 2007.
(By Todd Wallack, Globe staff)

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

Raytheon shows off "wearable" robot

Waltham defense contractor Raytheon Co. issued a photograph today of the robotic suit it is developing for the soldier of the future.

Known as an "Exoskeleton," the suit is an "essentially wearable robot that amplifies its wearer's strength, endurance, and agility," said Raytheon, which is working on the suit at its new research facility in Salt Lake City.

Raytheon said in a press release: "Made of a combination of sensors, actuators, and controllers, the futuristic suit enables a test engineer to easily carry a man on his back or lift 200 pounds several hundred times without tiring. Yet it is agile enough to play soccer and climb stairs and ramps without issue."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:04 PM | Comments (0)

CMGI buys consumer-electronics repair services firm

CMGI Inc. said today it has acquired PTS Electronics in an all-cash transaction valued at $45 million as Waltham-based CMGI looks to beef up its portfolio of supply-chain management services.

PTS of Indiana specializes in consumer-electronics service repair and reverse logistics.

Services offered by PTS will "create a strategic extension of the end-to-end supply chain solutions offered through ModusLink," CMGI's supply chain services business, CMGI said.

Nearly a decade ago, CMGI was a high-tech highflier; its Internet venture capital business made it one of the brightest stars of the dot-com boom - and a major victim of the ensuing dot-com bust.

CMGI has since looked to reinvent itself. In 2004, it announced plans to buy Modus Media Inc., then a Westwood-based supply-chain management company.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:28 PM | Comments (0)

Netscout Systems beats expectations

Shares of Netscout Systems Inc., a Westford company that provides network improvement equipment, soared today after its fourth-quarter results beat Wall Street expectations by a wide margin.

The company swung to a loss on acquisition costs, but strong sales helped beat analyst expectations.

It lost $4.9 million, or 13 cents per share, compared with a profit of $2.1 million, or 6 cents per share, in the 2007 fourth quarter.

Excluding one-time costs and gains, the company earned 12 cents per share, compared with 7 cents per share in 2007.

The company's one-time expenses included deferred revenue from its November purchase of network-analysis and data-mining company Network General Corp.

Sales more than doubled to $57.7 million, compared with $27.3 million in 2007, with product revenue jumping to $33.7 million from $17.2 million and service revenue jumping to $24 million from $10.1 million.

Analysts polled by Thomson Financial expected profit of 5 cents per share on sales of $61.4 million. Analysts typically exclude one-time items.

Chief Executive Anil Singhal said the Network General acquisition has been a "watershed event" for the company, with both revenue and profits exceeding Netscout's expectations.

For the 2007 fiscal year, the company also swung to a loss on deferred revenue from its Network General acquisition.

It lost $2.1 million, or 6 cents per share, compared with a profit of $7.7 million, or 23 cents per share, in 2007.

Excluding one-time acquisition costs and other expenses, the company's profit was 48 cents per share.

Sales rose 65 percent to $169 million from $102.5 million last year.

Analysts polled by Thomson Financial expected profit of 42 cents per share on sales of $179.1 million.

Netscout shares jumped $1.89, or 18.5 percent, to $12.09 in morning trading on the Nasdaq Stock Market. They have traded in the past 12 months between $7.22 and $15.54. (AP)

Posted by globebusiness at 11:14 AM | Comments (0)

Hydroid lands order for underwater vehicles

Hydroid LLC of Bourne said today that an Oregon research center has purchased two of its Remus autonomous underwater vehicles to assist in its studies of coastal ecosystems.

According to Hydroid's website, the Remus 100 is an 80-pound, torpedo-shaped vehicle that has a maximum operational depth of 328 feet.

The Science and Technology Center for Coastal Margin Observation and Prediction bought two Remus 100s, Hydroid said in a press release that did not include the financial details of the transaction.

The center looks to observe ecological processes in estuaries, starting with the Columbia River, and the Remus 100s will be deployed in the center's experimental observational network as mobile platforms for oceanographic sensors, Hydroid noted.

The environmental monitoring data they record will play a role in analyzing the impact of humans on estuaries and coastal environments, the firm added.

In a statement, center director Antonio Baptista said the two Remus 100 autonomous underwater vehicles "will add critically to our ability to observe high-gradient regions in the Columbia River plume and perhaps even in the estuary."

The center is a partner with several universities including Oregon State University and it gets funding from the National Science Foundation, an independent federal agency.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:43 AM | Comments (0)

Dunkin' offers Mother's and Father's Day gift cards

Dunkin' Donuts unveiled its latest promotion today - a specially designed Mother's Day and Father's Day gift cards.

The art work on the cards were designed by customers, and for every one of these cards bought on the chain's website during the months of May and June, the Canton-based coffee-and-baked-goods chain said it will donate $1 to the Dunkin' Brands Community Foundation, which supports local heroes who serve their communities.

The art work was chosen from numerous customer submissions, and the two winners each received $500 to donate to their charity of choice, Dunkin' Donuts said.

The Father's Day card was designed by Eileen McCarthy-Keddy of Medford. (Her design is at right.) While the Mother's Day cards can be had immediately, the Father's Day cards won't be available until May 15, the company said.

The Mother's Day card bears the art work of Margot Miller of New York City, Dunkin' Donuts said.

McCarthy-Keddy asked that her donation be made to the Dana-Farber Cancer Institute, Dunkin' added.

The Mother's Day and Father's Day cards, as well as the standard Dunkin' Donuts gift cards, are available in denominations of $5 to $200, the chain said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:40 AM | Comments (0)

Fidelity unveils online tools for college savings

Fidelity Investments has introduced two new online planning tools to help investors make decisions about college savings.

The Boston mutual funds giant offers an array of investment products, including a range of so-called 529 college savings plans.

At the college planning portal on its website, Fidelity has now made available the 529 Plan Comparison Tool, which allows investors to conduct side-by-side reviews of the features and benefits of 529 savings plans, Fidelity said.

The second new online tool is the 529 State Tax Deduction Calculator, which helps investors determine whether there is a significant tax advantage to investing in the 529 college savings plan offered in their state of residence, Fidelity said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:14 AM | Comments (0)

American Tower profit surges

American Tower Corp., a Boston operator and developer of broadcast and wireless communications sites, said today that its first-quarter profit surged 90 percent, helped by strong demand in the U.S., Mexico and Brazil.

For the period ended March 31, net income jumped to $42.2 million, or 10 cents per share, compared with $22.2 million a year earlier.

Analysts polled by Thomson Financial expected earnings of 9 cents per share.

Total operating expenses declined to $237.3 million from $266.4 million.

Quarterly revenue grew 8 percent to $382.2 million from $352.5 million in the prior year, missing Wall Street's estimate of $383.4 million. (AP)

Posted by globebusiness at 7:45 AM | Comments (0)

Walpole gives OK to Verizon FiOS TV service

The board of selectmen in Walpole granted a cable franchise to Verizon Communications Inc. Wednesday for its FiOS TV service, Verizon said.

The board's action will eventually mean that 6,000 Walpole households will have the option of signing up for its FiOS TV service, Verizon said.

By Verizon's count, there are now 69 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 7:32 AM | Comments (0)

NASA taps Kopin for solar-cell project

Kopin Corp. said it has been awarded a $600,000 contract from NASA to participate in a solar-cell development program for future space exploration missions.

The Taunton company produces ultra-small liquid crystal displays that are used in everything from digital cameras to thermal weapon sights and night vision systems.

As part of a team, Kopin will work on a NASA program that seeks to develop a type of high-efficiency solar cells that are resistant to extreme conditions.

According to Kopin, the technology that the program looks to develop "will enable photovoltaic power systems of future NASA space exploration missions to operate in extreme environments with high temperatures and radiation exposure."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:06 AM | Comments (0)

May 1, 2008

Bank settles conflict-of-interest case for $10 million

Two investment units of Bank of America yesterday agreed to pay about $10 million to settle conflict-of-interest charges.

The Securities and Exchange Commission had alleged that from 2002 to 2004, Banc of America Investment Services Inc. and a business that’s now part of the Columbia funds unit steered clients into funds affiliated with the bank — ignoring proper selection criteria and failing to disclose the conflict of interest.

Federal rules require money managers to recommend investments based on clients’ best interests.

A spokeswoman said the bank neither admits to nor denies wrongdoing, but policies and procedures are in place to prevent more such problems.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 6:30 PM | Comments (0)

CVS Caremark profit rises as sales climb

CVS Caremark Corp., the nation's biggest pharmacy chain, said today that first-quarter profit jumped 84 percent, helped by surging sales in the wake of last year's purchase of Caremark.

Profit climbed to $745 million, or 51 cents per share, after preferred dividend payments in the quarter ended March 29, up from $405.4 million, or 43 cents per share, in the prior year, the Woonsocket-based company said. Excluding 4 cents per share for acquisition activities, earnings were 55 cents per share, meeting the expectations of analysts surveyed by Thomson Financial.

Revenue surged 61 percent to $21.3 billion, up from $13.2 billion a year ago, also meeting analysts' estimates.

Shares of CVS rose 9 cents to $40.46 in midday trading on the New York Stock Exchange after trading as low as $39.02 earlier in the session.

CVS purchased pharmacy benefits management company Caremark in March 2007. Chief Financial Officer David Rickard said revenues were $10.8 billion in that segment for the quarter, an increase of 2.3 percent from a year ago.

Stephanie Hoff, a senior retail analyst with Edward Jones, said the results in that segment came in slightly under what analysts had hoped for. But she said the results were still strong, with both sides of the business delivering higher operating margins.

"On a full year basis, they're still generating a pretty healthy level of growth," she said. "The fact that they have a PBM now has certainly helped buffer a weaker economy."

The company said an Easter that came in March rather than in April this year helped same-store sales to grow 3.9 percent from the prior year, with pharmacy sales rising 3.7 percent and front end sales up 4.3 percent.

Rickard said CVS had seen no evidence of a consumer slowdown.

"Consumers are making tough choices on big ticket purchases, but they aren't yet focused on Snickers bars," he said. (AP)

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

Ahern: Ireland positioned to ride out economic woes

Irish Prime Minister Bertie Ahern says years of rapid growth have left his nation in good shape to ride out international economic turmoil that also has spread to Ireland.

Ahern touted his nation's recent rapid expansion in a luncheon speech today to business leaders in Boston, a day after he appeared before Congress.

Ireland has recently been hit by rising inflation and slow growth. But Ahern expressed confidence his nation's economy is now sufficiently diversified to insulate the country from deep financial troubles.

Ireland's fortunes rely heavily on US investment, and Ahern said US-Irish economic relations "have never been better."

Ahern is stepping down May 6, following a judicial investigation into secret payments he allegedly received from businessmen in the 1990s. (AP)

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

Haemonetics reports earnings drop

Haemonetics Corp., a Braintree company that makes blood collection and processing systems, said today that higher costs and fewer gains drove its fiscal 2008 fourth-quarter earnings down 30 percent to miss Wall Street expectations.

Net income fell to $13.8 million, or 52 cents per share, from year-ago profit of $19.8 million, which included tax benefits and a gain on a legal settlement. Excluding one-time items, profit totaled 58 cents per share in the latest period.

Revenue gained 19 percent to $138.8 million from $177 million last year.

Analysts polled by Thomson Financial expected slightly higher earnings per share of 59 cents, on revenue of $128.2 million. Analysts typically exclude one-time items from their estimates.

Shares of Haemonetics dropped $3.93, or 6.9 percent, to $53.30 in afternoon trading on the New York Stock Exchange.

The company said operating costs rose 26 percent for the quarter on acquisitions and research and development investments.

Haemonetics makes systems which automate the collection of blood from donors, and allow blood banks to collect and process whole blood, taking only the parts (such as plasma or red blood cells) they need. Haemonetics also makes systems to collect and re-infuse a patient's own blood during surgery.

The company also issued a fiscal 2009 earnings forecast below Wall Street expectations.

Haemonetics predicts adjusted earnings, excluding an estimated 17 cents to 20 cents per share of restructuring costs, between $2.31 and $2.41 per share. The company sees sales growth of 8 percent to 11 percent, implying revenue of $557.8 million to $573.2 million.

Analysts polled by Thomson Financial expect earnings of $2.47 per share on revenue of $559 million. Analysts typically exclude one-time items from their estimates. (AP)

Posted by globebusiness at 1:53 PM | Comments (0)

Watch Internet video on your HD TV with ZvBox

Littleton start-up ZeeVee Inc. said today it has launched ZvBox, a $499 consumer electronics product that enables people to watch Internet TV and online video on their high-definition television sets.

According to ZeeVee, the explosion of Internet TV and movie downloads has been confined to the personal computer's small screen, and the ZvBox aims to change that.

ZvBox connects to the monitor output of a PC and turns it into a high-definition TV channel called Zv, which is then broadcast across existing cable wiring to all HD TVs in a home, the company said.

The device is available for preorder exclusively at Amazon.com, which is scheduled to begin shipping the product to consumers on June 30, ZeeVee said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:14 PM | Comments (0)

Hologic shares down despite earnings increase

Hologic Inc. shares fell 18 percent in mid-morning trading, despite reporting higher profits and increased revenue. The Bedford women's healthcare company said revenue more than doubled to $431 million in the second fiscal quarter, primarily because of its $6.2 billion acquisition of Cytyc Corp. in October.

Hologic also said it earned $56 million, more than double its earnings of $21.6 million in the same quarter a year earlier.

Shares were trading at $23.98, down $5.21, as of 11:09 a.m. after falling as low as $21.25 earlier in the day, in heavy trading.

Hologic makes women's healthcare products, including mammography machines and pap tests to detect cancer. The firm has roughly 2,800 employees, including about 850 in Massachusetts.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:05 PM | Comments (0)

NStar customers can power homes with wind power

NStar customers willing to pay a premium will soon be able to power their homes with environmentally friendly wind power.

The state Department of Public Utilities last night approved a program, that allows customers to buy half or all of their electricity from wind farms in Maine and upstate New York. Customers who opt for the green power will pay more, $4.25 a month who buy half their electricity from wind farms, $7.25 who want buy it all from these green sources, according to NStar. The program, called NStar Green, is the first of its kind for a Massachusetts utility,

NStar will begin enrolling customers in NStar Green immediately, with service to begin in July, said spokeswoman Caroline Allen. More information is available on NStar's website, www.nstar.com, or by calling 1-800-592-2000.

NStar, with 1.1 million electric customers in Eastern and Central Massachusetts, proposed the program last summer. The Boston utility signed 10-year contracts with two wind farms to buy a total of 60 megawatts, enough to power about 60,000 homes.

“What makes this program unique is the fact that it’s transparent -- customers know exactly where their renewable energy is being generated," said Thomas J. May, NStar chief executive.

Environmentalists praised the program and the decision by the Department of Public Utilities.

“Millions of Massachusetts residents will now have the option to support the development of clean, renewable energy in New England,” said Sue Reid a staff attorney at the Conservation Law Foundation, one of several prominent environmental groups that worked with NStar to create NStar Green. "The long-term contracts that are at the heart of this initiative are key catalysts to bringing renewable energy on-line and are a prime example of how we can use market mechanisms to combat climate change.”
(By Robert T. Gavin, Globe staff)

Posted by globebusiness at 11:39 AM | Comments (1)

GM partners with Hub ethanol firm

General Motors Corp. says it has taken an ownership stake and formed a partnership with a Boston-based renewable energy company.

Mascoma Corp. is working to develop cellulosic ethanol from wood chips, waste paper sludge, and switch grass.

The deal announced today represents GM's second partnership with an ethanol startup this year. GM announced a similar relationship with Illinois-based Coskata Inc. at the North American International Auto Show in Detroit.

GM says its collaboration with Mascoma will help develop non-grain forms of ethanol for flexible-fuel vehicles, which run on a mix of gasoline and ethanol. (AP)

Posted by globebusiness at 11:18 AM | Comments (0)

Blog offers guidance for downtown lunch patrons

The Financial District has been partly off its feed following a water-main break Saturday that cut off gas service to some of its restaurants, and now a public relations firm seeks to offer some real-time lunch guidance to hungry bankers and stock brokers.

Yesterday operatives of Solomon McCown & Co. Inc. of Boston conducted a restaurant reconnaissance mission of about a dozen neighborhood eateries and posted their findings about what restaurant fare is currently available at www.fidoboston.blogspot.com. FIDO stands for Financial District Open for Business. And visitors to the site can get the latest information available on the status of local restaurants, Solomon McCown said.

Famished financial types can rest easy. Many bistros are offering a full menu, and others seem to be operating at just below full capacity, according to the blog.

For example, Central 37 is serving everything but French fries, and patrons will temporarily have to go without steaks at the Italian Cafe, the FIDO blog reported, but then, there's always the Greek tuna, a menu item highly recommended by Solomon McCown chief executive Helene Solomon.

In a statement, Solomon offered the thinking behind the blog: "As an employer in the area who loves the Greek tuna at the Italian Cafe and many other local favorites, all of us at Solomon McCown want to help out our neighbors."

Hopefully, a return to culinary normalcy in the Financial District is imminent. Of the 410 customers whose gas service was shut off, 300 had been restored to service by yesterday evening, the Globe reported this morning; the remaining gas customers are expected to have service restored today.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:00 AM | Comments (0)

Sepracor issues earning, settles patent dispute

It was a busy morning for Sepracor Inc. as the Marlborough drug maker announced earnings, disclosed plans to buy a Canadian firm, and added that it has settled a patent disput involving an asthma drug.

Sepracor, which is known for such products as the insomnia drug Lunests, said today that its first-quarter profit fell 35 percent on buyout charges, but adjusted earnings topped Wall Street expectations.

The company earned $12.2 million, compared with profit of $18.8 million a year ago.

Revenue fell 2 percent to $320.8 million from $327.7 million.

In addition, Sepracor said today that it will buy Oryx Pharmaceuticals Inc., a Canadian marketer of branded prescription drugs to doctors and hospitals, in a move to expand into the Canadian market.

Sepracor said the company's portfolio includes 14 products, such as cholesterol drug Niaspan and skin infection treatment Cubicin, and is projected to record 2008 revenue of about $20 million Canadian dollars ($19.7 million).

Oryx shareholders will receive $50 million and potential payments of up to $20 million upon reaching various regulatory milestones. The deal is expected to close June 1.

"Given the growth in our research and development pipeline and the planned submissions of products such as Lunesta, Brovana and eslicarbazepine for marketing approval in Canada, this acquisition should enable us to fully leverage Sepracor's current and future product opportunities in this market in addition to the Oryx portfolio," said Adrian Adams, Sepracor president and chief executive.

Separately, Sepracor said today that it settled a patent dispute with Arrow Group's Breath Ltd. unit, involving Sepracor's Xopenex inhalation treatment for asthma.

The agreement allows Breath to launch generic versions of certain Xopenex dosages under an exclusive license beginning on Aug. 20, 2012. Upon launch, Breath will pay Sepracor a double-digit royalty on gross profits generated from the sales of these generic versions.

Both Sepracor and Breath are filing to dismiss their litigation without prejudice in the District Court for the District of Massachusetts.

Sepracor also agreed to exclusively supply Breath with the Xopenex products for 180 days and on a non-exclusive basis thereafter. In addition to royalties, Breath will pay Sepracor for these supplies. Breath may launch a generic version earlier than 2012 if a third party launches a generic version or if the companies otherwise mutually agree.

Sepracor said disputes with Dey LP and Barr Laboratories Inc. related to generic Xopenex inhalers remain pending.

In morning trading on the Nasdaq Stock Exchange, Sepracor shares were up $2.40, or 11 percent, to $23.95. (AP)

Posted by globebusiness at 9:42 AM | Comments (0)

Tightwad consumers don't skimp on the tofu

A sluggish economy has not put green consumers off their natural and organic menu choices (right), a new survey contends.

The survey is from Mambo Sprouts Marketing, a New Jersey firm that provides promotions and marketing services for natural and organic food products.

Even with a faltering economy and rising food and gas prices, 88 percent of respondents to the survey said they were buying the same or more environmentally green products than they were six months ago because they put a high priority on such items, Mambo Sprouts said.

Money-saving strategies that some consumers are opting for include having a vegetarian meal at home instead of going out to a hamburger restaurant, Mambo Sprouts suggested.

For a tofurkey roast recipe, click here. You'll need spuds.
(By Chris Reidy, Globe staff)

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

Iron Mountain's profit slips slightly

Data storage and protection company Iron Mountain Inc. of Boston said today that its first-quarter profit slipped 3.5 percent as higher interest expense offset rising revenue.

Net income for the three months ended March 31 fell to $33.5 million from $34.7 million.

Net interest expense climbed 19 percent to $60 million.

Revenue increased 18 percent to $749.4 million from $632.5 million.

Sales rose in the company's North American physical, international physical, and worldwide digital business segments, and benefited from the weaker dollar. (AP)

Posted by globebusiness at 8:52 AM | Comments (0)

Hub ranks high on inner city business list

Boston placed five companies on the annual Inner City 100, a national competition that seeks to find and rank fast-growing companies in the nation's inner cities.

Only San Francisco, with six, had more, said the competition's organizer, the Initiative for a Competitive Inner City, or ICIC, a Boston nonprofit organization that together with Inc. magazine has published the Inner City list for the last decade; the initiative was founded by Michael E. Porter, a professor at Harvard Business School.

One reason that Boston and San Francisco ranked so high is that their political and civic leaders recognize that inner city businesses play a critical role in the social and economic lives of their city, the initiative said.

Topping this year's list is CMR Construction and Roofing of Indianapolis.

In second place is Roxbury Technology Corp., a Boston company that re-manufactures laser-printer cartridges.

The company was founded by the late Archie R. Williams (right) and is now led by his daughter Elizabeth Williams.

With $11.4 million in 2006 revenues and 39 employees that year, Roxbury Technology was honored as the top minority-owned and woman-owned business on the 2008 Inner City 100 list, ICIC said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:36 AM | Comments (0)

JetBlue offers Hub service to Chicago, New Orleans

JetBlue Airways Corp. said that it begins daily service today from Boston to two more cities - Chicago (O'Hare International Airport) and New Orleans.

With these new routes, New York-based JetBlue said it now offers service between Logan International Airport and 30 destinations across the United States, Mexico, and the Caribbean.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:07 AM | Comments (0)

Progressive begins offering local auto insurance

The Progressive Group of Insurance Cos. said it will begin offering auto insurance to Massachusetts drivers at its website Progressive.com, starting today.

Ohio-based Progressive, which claims to be the nation's third largest auto insurer, said visitors to its website can take advantage of its comparison rating feature, which offers individual drivers accurate rates from Progressive and up to three top competitors.

The administration of Governor Deval L. Patrick last year undertook an ambitious overhaul of the Massachusetts auto insurance market, which was the last one in the country where rates were set by regulators. Under the new system, which recently went into effect, companies set their own rates and have greater flexibility to introduce innovative product features and discounts for different drivers.

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

Posted by globebusiness at 7:46 AM | Comments (0)

Bovie will buy some Boston Scientific assets

Bovie Medical Corp. announced today an agreement with Natick medical device maker Boston Scientific Corp. to acquire technology and assets for a radio frequency resection device.

A statement issued by Bovie of Melville, N.Y., made no mention of the financial details of the agreement.

The agreement covers Boston Scientific technology, patents, and assets related to the use of conductive sintered steel as an electrode for radio-frequency cutting and coagulation; the hope is that such technology can lower blood loss, quicken the time of many medical procedures, and provide cost savings to hospitals, Bovie said.

Boston Scientific, meanwhile, has been pursuing a long-term plan of divesting itself of nonstrategic assets so that it can focus on such core businesses as making stents, narrow mesh tubes used to prop up arteries that have been unclogged during a medical procedure; an image of one of the company's stents is seen at right.

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

Posted by globebusiness at 7:22 AM | Comments (0)