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August 29, 2008

The Colonnade Hotel welcomes a new addition

Boston's Colonnade Hotel put out a press release today in the form of a birth announcement. The new arrival? A "Smaht Cah," weighing in at 1,808 pounds and featuring a "spunky personality," according to the release.

Made by auto maker Mercedes-Benz, the small and fuel-efficient Smart Car is manufactured at an environmentally friendly facility in France, and its frequent presence out in front of the hotel underscores the point that the Colonnade recently underwent a $21 million renovation designed to transform it into an environmentally "smaht" hotel, the release said.

The Colonnade is urging folks to come up with a name for its Smart Car and to send suggestions via e-mail to marketing@colonnadehotel.com.

The winner will receive a "luxe overnight stay at the Colonnade, breakfast at Brasserie Jo, and a ride in the hotel 'Smaht Cah,'" the hotel said in its release.

Please click here to read a recent Globe story about an environmentally friendly cleaning system that the Colonnade and several other hotels have recently installed.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:47 PM | Comments (0)

Court cuts Boston Scientific patent penalty

Boston Scientific Corp., the Natick medical device maker, said today that a US District Court has reduced a patent dispute award owed to rival Medtronic Inc. from $250 million to $19 million.

In May, a Texas jury ruled that several Boston Scientific devices used to clear and prop open arteries infringed three Medtronic patents.

Boston Scientific stated Friday a U.S. District Court in Marshall, Texas, ruled that two of those patents are invalid and reduced Medtronic's award to $19 million.

Natick, Mass.-based Boston Scientific said it planned to appeal the $19 million decision to the U.S. Court of Appeals for the Federal Circuit.

On the New York Stock Exchange, shares of Medtronic Inc. fell 49 cents Friday to $54.72 while shares of Boston Scientific Corp. fell 18 cents to $12. (AP)

Posted by globebusiness at 2:55 PM | Comments (0)

Obama pizza? Layer on the pepperoni

What are the pizza personalities of presidential candidates John McCain and Barack Obama?

That's a question that Uno Chicago Grill, a Boston-based chain of more than 200 restaurants, felt compelled to answer.

Critics have carped that Obama projects a sheen so dazzling that it can be hard to determine whether there is any beef behind all that radiance.

But Uno Chicago didn't stint on the substance in seeking to express the Obama persona in culinary form.

"Since Senator Obama traces his career roots to Illinois, where Uno originated in Chicago, his legacy would be a Chicago Deep Dish Pizza," Uno said in its release. "The Obama Pizza also has a hint of audacity to it, so we suggest a liberal layering of pepperoni to add bite and round out the ticket, delivering a taste you can sink your teeth into. However, if you're not a fan of pepperoni, don't be afraid to change your topping ... after all, the Obama pizza is all about change."

It's good to see that despite some recent challenges, Uno retains its sense of humor.

And what about the pizza sensibility of Obama's Republican rival?

"The McCain Pizza is a no-nonsense, straight talker, so we start by piling on the basics with an extra helping of cheese - perhaps, but not necessarily, of the aged variety," Uno's release said. "But the McCain Pizza is also a maverick, which is willing to function in a bipartisan manner, so there's room here both for meat (pepperoni and sausage) and veggies (green pepper and mushroom). Finally, we add a helping of onions that some will insist is 'not truly conservative,' but which will undoubtedly deliver a surge of flavor and drive out the menacing forces of blandness."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:19 PM | Comments (0)

Study: Golf gives a lift to local economy

Duffers and golfers are doing their part to boost the local economy, a study out today asserts.

In 2006, the latest year for which data were available, golf had a total economic impact of $2.8 billion on the Bay State, said the Alliance of Massachusetts Golf Organizations, which commissioned the research firm SRI International to compile the report.

The alliance's previous report looked at the year 2000. (In the photo above, golfers last month played at the William J. Devine Golf Course at Franklin Park in Boston.)

Between 2000 and 2006, the total economic impact of golf in the commonwealth grew 13.9 percent, said the report, which added that the industry accounted for 29,630 Massachusetts jobs in 2006, an additional 770 jobs over 2000, with a 19 percent increase in average salary over the six-year period, the report said.

The average salary in golf-related industries rose from $24,305 in 2000 to $28,916 in 2006, the report noted.

The commonwealth is not only home to roughly 375 golf courses but also to companies or brands that make golf-related gear, including the Acushnet Co. of Fairhaven and Reebok International Ltd. of Canton, the report said.

The alliance's press release included a statement from Leigh Bader, an owner of multiple golf-related businesses in Massachusetts and a member of the board of directors for Golf 20/20.

"The golf industry as a whole continues to be a major economic force in Massachusetts," Bader said in the statement. "Not only does this industry infuse solid spending in the state's economy, it continues to create thousands of jobs that generate more than $850 million annually in wages in Massachusetts."

The alliance added, "The report analyzes and divides direct spending, total output, total jobs, and total wage income into six different categories: golf facility operations, golf course capital investments, golfer supplies, tournaments and associations, real estate, and hospitality and tourism."
(By Chris Reidy, Globe staff)

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

Virtusa's president will leave the company

WESTBOROUGH - Virtusa Corp. said Danford Smith, its president, operating chief, and board member, is resigning from the information technology services company at the end of September to pursue other opportunities.

Smith had been with Virtusa four years, the company said late yesterday. It did not disclose whether it plans to replace him.

Shares of Virtusa are down 56 percent in the year to date and closed yesterday at $7.62 on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 8:08 AM | Comments (0)

Federal agency offers Labor Day snapshot

The Bureau of Labor Statistics, an arm of the US Department of Labor, highlighted some data this week to put the upcoming Labor Day holiday into some perspective.

"In 2007, union membership rates were lower than the highs of the early 1980s," the bureau said in a news release. "Twelve percent of wage and salary workers nationwide were union members, a steady decline from a high of 20.1 percent in 1983. Among the New England States, New Hampshire (9.7 percent), Vermont (10.4 percent), and Maine (11.7 percent), all fell below the national average, while Connecticut (15.6 percent), Rhode Island (15.0 percent), and Massachusetts (13.2 percent) were all above average."

The photo at right shows then-President Bill Clinton delivering a 1994 Labor Day speech at the Bath Iron Works in Maine.
(By Chris Reidy, Globe staff)

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

Southwick Clothing is moving to Haverhill

Tony haberdasher Southwick Clothing is leasing nearly 92,000 square feet of space at 20 Computer Drive in Haverhill, a broker involved in the transaction said.

The broker is Klemmer Associates LLC of Winchester, a full service commercial real estate firm.

Southwick was recently purchased by Retail Brand Alliance, which also owns the Brooks Brothers clothing brand, Klemmer noted in a press release. (A photo from the Brooks Brothers online catalog is at left; a photo from the Southwick website is at right.)

Klemmer said it represented the landlord of 20 Computer Drive in the transaction, Suffolk Advisors, a developer and a real estate investor based in Lexington.

The release also noted that Southwick was represented in the transaction by a team from Grubb & Ellis, a commercial real estate advisory firm with headquarters in Chicago.

The release included a quote from Tyler Ewing of Grubb & Ellis.

"Southwick's former facility was on five floors in an outdated facility," Ewing said. "The move from Lawrence to Haverhill puts the company all on one level in a relatively new, state-of-the-art facility."
(By Chris Reidy, Globe staff)

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

August 28, 2008

Gillette unveils global partnership with EA Sports

Gillette, the grooming brand with a big local presence, said it will team up with EA Sports, a sports interactive entertainment brand, to market to male consumers between the ages of 18 and 34, a key demographic for both brands.

Tiger Woods (above), the golf star who endorses Gillette razors, was on hand for the announcement of the partnership, the two brands said.

The partnership aims to create a variety of co-promotional marketing opportunities focused on similar male consumers around the world, and the partnership also seeks to "leverage the Xbox 360 LIVE and EA SPORTS in-game environments," Gillette and EA Sports said.

“We’ll be working together to reach consumers with unique programs such as the Gillette-EA Sports Champions of Gaming, a global tournament that will offer gamers the opportunity to compete against the best in the world and then take on the Gillette Champions and other sports legends to see if they have what it takes to be the best,” Peter Clay, vice president of Gillette Grooming, said in a statement.

The live global finals will be conducted in Tampa, Fla., in January, with the Global Champions in each gaming category competing against one of the Gillette Champions - Gillette’s group of global sports superstars that includes Woods, tennis player Roger Federer, and baseball's Derek Jeter, the two brands said.

The Gillette brand is now owned by Procter & Gamble Co. of Ohio, and EA Sports is a label of Electronic Arts Inc. of California.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 2:14 PM | Comments (0)

State Street expands presence in the Middle East

State Street Corp., a Boston company that provides financial services to institutional investors, today announced that it has expanded its presence in the Middle East and has opened a new office in Doha, Qatar.

(Above, a photo of the Doha skyline.)

"The Middle East is home to some of the largest and most sophisticated sovereign wealth funds in the world who stand to benefit from the broad range of solutions that State Street can offer," State Street executive vice president Peter O'Neill said in a statement. "Expanding and deepening our 15-year presence in the Middle East will be key to ensuring we take advantage of the many opportunities in the region."

State Street said it provides a range of investment services and asset management solutions to central, commercial and Middle Eastern banks; government institutions; and investment companies.
(By Chris Reidy, Globe staff)

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

MIT Sloan students are upbeat about the future

A sampling of students beginning their studies at MIT Sloan School of Management is hopeful that the election of a new president will translate into "fresh career opportunities" for MBA graduates, the school's news office said today.

The school's news release included quotes from several new students, including Hassani Turner from Los Angeles, who worked on Capitol Hill and in investment banking before entering MIT Sloan.

"Compared to the current political atmosphere, the future appears to be more hopeful with both candidates," Turner said. "As someone who is interested in sustainability and economic development in poor countries, my career ideals are mostly aligned with Barack Obama's policies. Still, John McCain has proven to be a progressive Republican in terms of clean technology, climate change, and other issues pertaining to sustainability."

The hard-hit financial sector could also benefit from the election, said Murali Govindaswamy, a native of India who held engineering, system design, and project management roles with Ericsson in Boulder, Col., for seven years before coming to MIT Sloan.

"The election may stimulate much needed confidence in the financial markets, which would grow the amount of traditional and alternative finance career routes and potentially allow for a softer venture funding environment," Govindaswamy said in quote included with Sloan's news release.

Sloan added in the release: "India is one of 43 nations represented in this year's incoming MIT Sloan class, 36 percent of which are international students. At 34 percent, the percent of incoming women is the highest ever, as is the percentage of incoming students from underrepresented minorities at 10 percent. Applications were up by 28 percent over last year."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:33 AM | Comments (0)

D'Angelo winner will see the Sox game in NYC today

If all goes according to plan, Lenny Gallant will be in the Bronx this afternoon, presumably rooting for the Boston Red Sox and hoping for a sweep over the New York Yankees in Boston's final regular-season appearance at Yankee Stadium.

Gallant of Chester, N.H., will be there in his capacity as grand prize winner of the "Surf Turf and Win" sweepstakes sponsored by D'Angelo Grilled Sandwiches, the Dedham-based chain. The prize? An all-expense paid, two-day trip to New York to see the Sox for Gallant and three of his pals.

Gallant was selected from more than 4,000 text entries to the sweepstakes, which ran from July 7 through August 22, D'Angelo said in a press release.

“We want to provide our guests with exciting incentives to visit our web site and stop by our restaurants,” Michael McManama, D'Angelo senior vice president of brand development, said in a statement. “D’Angelo Grilled Sandwiches enjoys a strategic marketing relationship with the Red Sox and this relationship enables us to provide great Red Sox experiences for our guests.”
(By Chris Reidy, Globe staff)

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

Fidelity study looks at Generations X and Y

While most don't equate success with wealth, money was named as the biggest concern of members of Generations X and Y, said a report out today from Boston mutual funds giant Fidelity Investments.

The findings were based on a four-month research study of 1,200 adults in those two generations, which are made up of people now between the ages of roughly 20 and 40, Fidelity said; together, the two generations will represent 60 percent of the US workforce by 2010.

"The research indicates that when it comes to how both generations view and make decisions about money, they are often conflicted between their intentions and actions," Fidelity said in a news release.

Conflicts include issues involving career decisions, savings perceptions, Internet adoption, financial guidance, and workplace savings plan usage, said Fidelity, which sells investment products to consumers of all ages.

According to the study, money is the top concern for these two generations, but work/life balance drives career choices.

Many members of Generations X and Y are still paying off school loans, and that fact can influences their thinking about personal finances.

"Debt prevents saving in older generations as well, but it's especially a challenge for Gen X and Y," Pamela Norley, executive vice president of Fidelity Consulting Group, said in a statement. "Our research revealed that younger generations are more likely to use credit than save for short-term purchases, which results in an ongoing struggle with debt management."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:09 AM | Comments (0)

Verizon high-speed Internet comes to more towns

Verizon Communications Inc. said it has just made its high-speed Internet service available to consumers and businesses in nine western Massachusetts communities.

Those communities are Blandford, Becket, Cummington, Goshen, Middlefield, New Marlborough, Sandisfield, Tolland, and Washington, Verizon said.

Earlier this month, Verizon introduced the service in Florida, Mass.

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 7:55 AM | Comments (0)

Pro-Pharmaceuticals gets an FDA OK

Pro-Pharmaceuticals Inc. of Newton said today that the US Food and Drug Administration has granted it an approval to use Davanat in a potential treatment for breast cancer patients.

Specifically, the FDA granted the company an investigational new drug application for use of Davanat in combination with 5-FU to treat a breast cancer patient at the Brown Cancer Center in Louisville, Ky., said Pro-Pharmaceuticals, which describes Davanat as a proprietary carbohydrate drug that is administered with chemotherapies and biologics to treat cancer.

According to the company, pre-clinical studies have shown that Davanat, in combination with chemotherapy, significantly reduced tumor growth in mice implanted with metastatic human breast cancer.

In a press release, Pro-Pharmaceuticals noted that the American Cancer Society estimates that about 180,000 new cases of breast cancer will be diagnosed in the United States this year and about 45,000 deaths will occur.

Pro-Pharmaceuticals also noted that Davanat is being administered in Phase II clinical trials for first-line treatment of colorectal and biliary cancer patients.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:25 AM | Comments (0)

August 27, 2008

Mass. bankruptcy filings up 28 percent in last year

Bankruptcy filings in Massachusetts soared 28.3 percent over the past 12 months, reflecting the slowdown in the economy and housing market, according to the Administration Office of the US Courts.

The state numbers are in line with nationwide increase of 28.9 percent in bankruptcy filings from July 2007 through June 2008. Still, Massachusetts ranked 35th in bankruptcies per capita, indicating it is faring better than the country as a whole.

In Massachusetts, there were 15,047 filings overall in the 12 months ended June 30, including 334 by businesses. By comparison, there were 11,727 filings in the previous 12 months, including 297 by companies. (Todd Wallack)

Posted by globebusiness at 4:37 PM | Comments (0)

New York probes Fidelity, Goldman Sachs connection

New York Attorney General Andrew M. Cuomo's office confirmed today that it is looking into whether Fidelity Investments sold auction-rate securities to its clients at the urging of Wall Street powerhouse Goldman, Sachs & Co.

Goldman Sachs was the fifth-largest issuer of the investments according to Thomson Reuters. But unlike many firms in the auction-rate business, Goldman does not have a traditional brokerage force selling its products. It sold auction-rate securities to wealthy clients through Goldman's high-net-worth advisers and also offered them through outside brokers, including Fidelity.

Fidelity said it did no special favors for Goldman Sachs in selling its auction-rate securities.

"There was no financial incentive for the company to push auction-rate securities over other investments,'' Fidelity spokeswoman Anne Crowley said.

The Boston-based discount brokerage said 600 customers bought auction-rate securities before Feb. 1 -- less than two weeks before the market shut down -- and who continue to own them today. The largest regulatory settlement in the auction-rate probe to date was with UBS Financial Services Inc., which agreed to buy back nearly $19 billion in the investments from 40,000 customers.

Goldman Sachs last week agreed to buy back $1 billion in auction-rate securities from its clients and to pay a $22.5 million fine. The firm neither admitted nor denied wrongdoing as part of the settlement. It declined to comment today.

Cuomo's inquiry into a possible Fidelity-Goldman relationship was first reported by the Wall Street Journal. The inquiry is in its initial stages, a person briefed on the probe told the Globe, and the office has yet to find any evidence of an inappropriate relationship.

Massachusetts Secretary of State William F. Galvin has written a letter to Fidelity, urging the firm to buy back the frozen securities from its clients. Galvin, who oversees the Massachusetts Securities Division, said Fidelity may meet with the division as early as next week to discuss its auction-rate sales activities.
(By Beth Healy, Globe staff)

Posted by globebusiness at 1:59 PM | Comments (0)

Bank of America to return $43m to Pike, housing agency

The Massachusetts Securities Division has obtained a pledge from Bank of America Corp. to buy back auction-rate securities from some government entities, including the Massachusetts Turnpike Authority and the Massachusetts Housing Partnership, according to a person involved in the talks.

The deal will free up $18 million for the financially troubled turnpike, and $25 million for the housing agency, a division spokesman confirmed.

Bank of America declined to comment.

The Turnpike Authority was reimbursed for $4.4 million in auction-rate securities by a different firm, UBS Financial Services Inc., in May. That buyback agreement was reached by state Attorney General Martha Coakley.

The Securities Division's negotiations with Bank of America are ongoing, as it seeks to press the banking giant to buy back auction-rate holdings from all of its retail investors.

The Globe reported last week that Bank of America warned some large clients about looming trouble in the auction-rate market as early as last December, while continuing to sell the bonds to individual investors.
(By Beth Healy, Globe staff)

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

Talbots posts bigger loss

Women's clothing retailer Talbots Inc. posted a wider quarterly loss Wednesday, hurt by aggressive markdowns at J. Jill stores, but affirmed its full-year earnings forecast from continuing operations.

The company, based in Hingham, reported a net loss of $25 million, or 47 cents per share, compared to a loss of $13.3 million, or 25 cents per share, a year earlier.

Talbots, which is majority-owned by Japan's Aeon Co Ltd, said its loss from ongoing core operations was 34 cents per share, in line with analysts' average estimate, according to Reuters Estimates.

Total sales for the quarter, which ended on Aug. 2, fell 7.7 percent to $528.0 million. Same-store sales fell 12 percent.

The company said it was planning for same-store sales for the fall season to range from flat to down slightly from last year, with Talbots sales about flat and J. Jill sales down at a low to mid-single-digit rate.

Talbots reaffirmed its outlook for full-year earnings from ongoing operations, which excludes results and costs associated with its Talbots Kids, Mens and British businesses, which it is closing. Its outlook calls for 2008 earnings of 47 cents to 52 cents per share, excluding items.

On a net basis, however, it said it expects earnings of 15 cents to 25 cents per share, up from its prior expectation for a net loss of 7 cents to 17 cents per share. (Reuters)

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

Lapman retiring from Independence Investments

Mark C. Lapman, chief executive of Independence Investments LLC, will retire after more than 26 years at the Boston money management firm, the company said today.

Lapman, also the chairman of the board, will stay on until his successor is chosen. Jay C. Leu, a senior vice president and senior portfolio manager will succeed Lapman as chairman of the investment committee, effective immediately, the firm said in a release.

Independence Investments, with $3.3 billion in assets under management as of June 30, is an affiliate of Chicago-based Convergent Capital Management LLC, an asset management holding company that is a subsidiary of City National Corp., a publicly traded financial services company based in Los Angeles.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 11:42 AM | Comments (0)

Expressor Software raises another $10 million

Expressor Software Corp. has secured $10 million in a second round of funding, the Burlington company said today. Commonwealth Capital Ventures led the way, with additional funding from Globespan Capital Partners and Sigma Partners, which were already investors in Expressor.

The company said the funding will allow it to move forward with its data integration platform and grow marketing, sales, business development, and product support.

"This round of financing will enable us to aggressively invest in our product and go-to-market strategies and plans, and is a testimony to the confidence our investors have in our company and market opportunity," said Bob Potter, chief executive of Expressor, in a release.
(By Elizabeth Campbell, Globe correspondent)

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

Westfield Bank names Hagan chief executive

Westfield Financial Inc., the holding company for Westfield Bank, has named James C. Hagan as the company and bank's chief executive.

Hagan will succeed Donald A. Williams effective December 31, the company said.

Since June 2005, Hagan served as president and chief operating officer of the company and the bank. Previously, he served as senior vice president and commercial loan department manager of the bank since 1998.

Williams has served as chief executive of the company since its inception in 2001. Williams will continue to serve as chairman of the board of the company and the bank, a position he has held since 2005. Williams served as president of the bank since 1983 and chief executive of the bank since 1987.
(By Elizabeth Campbell, Globe correspondent)

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

August 26, 2008

JumpTap raises $26 million

JumpTap Inc., a Cambridge mobile search and advertising startup, today said it had secured a new round of venture capital worth more than $26 million from a consortium led by investment giant AllianceBernstein L.P. Previous investors in JumpTap, including General Catalyst Partners, Summerhill Venture Partners, Redpoint Ventures, Valhalla Partners, and WPP, also participated in the funding round.

The company said it would use the capital infusion to expand its organization and accelerate development of its mobile search and advertising services. The services are offered to more than 150 million mobile subscribers through partnerships with mobile operators and content publishers.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 2:12 PM | Comments (0)

Big drop in passenger traffic is reported at RI airport

Passenger traffic at T.F. Green Airport in Warwick, R.I., was down 9 percent last month, the sharpest drop in nine straight months of declines.

The Rhode Island Airport Corp. reported that 430,725 people used the airport last month, compared to 475,454 people during the same period last year.

Airport president Kevin Dillon said he attributed the drop to increased fuel prices and a soft economy that is squeezing potential leisure travelers.

Dillon said passenger traffic may rebound in October, when several airlines that serve Rhode Island plan on switching to larger planes and increasing their seating capacity. (AP)

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

Southwest to trim New England flights

Southwest says that it will trim three flights each at Manchester Boston in New Hampshire, Bradley International outside Hartford, and two at T.F. Green near Providence.

The carrier says the cuts are part of a plan to trim its schedule by 190 flights, or 6 percent of its 3,400 daily total, starting Jan. 11.

Southwest slowed growth this year to 4 percent because of record fuel prices and a softening economy, but it has been able to remain profitable because it had locked in fuel-purchase contracts far in advance.

At Manchester, Southwest will cut one of ten daily flights to Baltimore and one of four to both Chicago and Orlando, according to Whitney Eichinger, a company spokeswoman. Bradley will lose one of eight to Baltimore, one of three to Chicago, and one of two to Tampa. Providence loses one of four to Chicago and one of six to Orlando.

Eichinger points out air traffic tends to slow in the winter months and that some of the cuts may be restored in spring.
(By Paul S. Makishima, Globe staff)

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

Hancock marathon program raises more than $3 m

John Hancock, the financial services firm, said its Boston Marathon fund-raising program raised $3.3 million for charitable and community service organizations during the 2008 running of the race.

Nearly 100 employees of John Hancock and Manulife, Hancock's parent company, participated in the employee marathon program.

John Hancock said its associates expanded the company's commitment to summer jobs for teens by raising $116,000; as a result of their efforts, 77 students received internships this summer through the Boston Fund for Neighborhood Development and the Parks and Recreation Departments.

Manulife employees raised more than $18,000 for their nonprofit of choice, Habitat for Humanity Canada.

Each employee in the program agreed to raise at least $1,000 for their designated nonprofit, and this year, employees raised an average of $1,400 per runner, Hancock said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:15 PM | Comments (0)

State Street exceeds $100b in private equity assets

State Street Corp. today said that assets under administration serviced by its private equity fund team surpassed $100 billion as of June 30.

State Street of Boston provides financial services to institutional investors, and its private equity fund services team provides fund administration services to more than 100 private equity and venture capital investment sponsors and fund of fund managers.

During 2008, State Street said it has added $14 billion in private equity assets, representing 27 new funds and eight new client relationships.

"We have been encouraged by the overall growth in our private equity servicing business, despite a slowdown within certain sectors of the industry," Jack Klinck, executive vice president and global head of State Street's Alternative Investment Solutions team, said in a statement. "Our total assets under administration have grown by approximately 20 percent since establishing our dedicated service offering, and we look forward to building on this strong foundation."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:52 PM | Comments (0)

Battle heats up in personal-navigation-device market

Don't place a long-term bet on the enduring popularity of personal navigation devices, or PNDs, from the likes of Garmin and TomTom, suggests a senior lecturer at MIT Sloan School of Management.

The lecturer, Michael A.M. Davies, has studied such devices and while they may have several more years of solid sales, Davies concludes that the PND space could eventually become lucrative territory for rival products and services from cellphone makers and automobile manufacturers.

A three-way battle among brands such as Garmin and TomTom, cellphone makers, and car vendors is "already underway," he said in a press release issued by MIT's news department. "And don't count out the car makers."

Davies also said in the release: "Navigation is about much more than just getting from Point A to Point B. It now involves finding the cheapest gas, the nearest coffee, and even social networking. As we confront drivers with all this new information, how it is presented becomes really critical."

Davies added, "I have a bet that within five years, at least one American-made car will ship with a dedicated navigation button to find the closest Starbucks."
(Chris Reidy, Globe staff)

Posted by globebusiness at 12:19 PM | Comments (0)

Satcon to provide PowerGate inverters to utility

Satcon Technology Corp., the Boston company that makes power generation products for the alternative energy industry, said today that it will deliver its PowerGate Plus inverter to a private European power utility that specializes in renewable energy production.

Satcon said it will deliver 20 megawatts of the 500 kilowatt inverters as part of an agreement with Energy 21.

Energy 21's focus is on the construction and operation of solar plants in the Czech Republic and Slovakia. CE Solar, the project development arm of Energy 21, will deliver and maintain the solar plants beginning in October with completion in spring.

Satcon shares jumped 9.5 percent, or 21 cents, to $2.43 in morning trading today on the Nasdaq Stock Market. The shares have ranged between 98 cents and $3.51 in the past year. (AP)

Posted by globebusiness at 10:58 AM | Comments (0)

Bank of America donates backpacks to Hub school

Local Bank of America officials scheduled an event for this morning to donate backpacks to the James W. Hennigan Elementary School in Boston's Jamaica Plain neighborhood.

Plans call for the bank to donate 300 backpacks, which bank employee volunteers filled with school supplies such as notebooks, markers, and pencils, the bank said.

Scheduled to be at the event were Hennigan principal Eleanor Kearse Perry and Bank of America Massachusetts president Robert Gallery, the bank said.
(By Chris Reidy, Globe staff)

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

Mass. Bar Association officers are set to begin term

The Massachusetts Bar Association said its slate of officers for the 2008-09 term has officially been set, with Edward W. McIntyre assuming the office of the president on Sept. 1.

McIntyre is a solo practitioner in Clinton concentrating in civil litigation in state and federal court, and he concentrates his practice in the areas of spinal cord and brain injury law, the bar association said.

Valerie A. Yarashus (right), a founding partner of Yarashus, Wagner, Cook, Freiberger & Washienko LLC in Boston, will be the association's president-elect; she concentrates in plaintiff’s trial practice and general liability cases, the bar association said.

Robert L. Holloway, a shareholder and president of MacLean, Holloway, Doherty, Ardiff & Morse PC in Peabody, will serve as vice president, and Denise Squillante, a solo practitioner in Fall River, will assume the role of treasurer, the bar association said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:18 AM | Comments (0)

Home for Little Wanderers picks Jones Lang LaSalle

Jones Lang LaSalle said that it has been named project manager by the Home for Little Wanderers for its new Children and Family Center at 161 South Huntington Ave. in Boston's Jamaica Plain neighborhood.

The project team consists of the architectural firm Einhorn Yaffee Prescott Architecture & Engineering P.C. and construction manager Suffolk Construction Co., said Jones Lang LaSalle, a Chicago-based money management and real-estate services firm.

The 71,000-square-foot multi-building campus, which is currently in the design and zoning permitting stages, will feature a new state-of-the-art Children and Family Center to accommodate the Home's extensive community-based services, Jones Lang LaSalle said.

The Home for Little Wanderers is a private, nonprofit child and family service agency providing services to thousands of children and families through 20 programs.

The photo above, supplied by Jones Lang LaSalle, is of one of the existing buildings on the Home for Little Wanderers' 3.5-acre campus in JP. Long-range plans call for the existing buildings to be torn down to make way for the new Children and Family Center, said Lisa Rowan-Gillis, the home's vice president for development and public relations.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:46 AM | Comments (0)

Report: Mass. home prices post steep July decline

The median price of single-family homes in Massachusetts fell 12.3 percent in July, marking the sharpest decline in monthly home prices since it began tracking the housing market in 1987, the Warren Group reported today.

The Warren Group is the Boston-based publisher of Banker & Tradesman and a provider of local real estate data, and it said today in a monthly report that the median price for Massachusetts single-family homes sold in July dropped to $320,000 from $365,000 in July 2007.

Meanwhile, Massachusetts condo sales continued to fall on a volume basis by double-digit percentages in July, but at less dramatic rates than in previous months this year, the Warren Group said.

Yesterday the National Association of Realtors reported that the sale of existing homes in the Northeast declined nearly 12 percent in July from a year ago, with the sales of distressed properties dragging down prices in the entire region; the median price in the Northeast was $278,700, down almost 5 percent from July 2007.

In Massachusetts, the Warren Group said today that the number of single-family homes sold in July slipped 6.4 percent to 4,495 from 4,800 sold in July 2007. July is the only month this year that monthly Bay State sales haven’t declined by double-digit percentages, the Warren Group added.

As for Massachusetts condos, the number of units sold continued to fall by double-digit percentages, but the drop was less dramatic than in previous months this year. A total of 2,236 condos were sold in July, down 12.5 percent from the 2,556 sales recorded a year earlier. Condo sales have fallen by more than 20 percent for eight consecutive months, said the Warren Group, which added that the median condo price fell 2.5 percent to $287,750 in July 2008 from $295,250 in July 2007.

“The good news in July was that home sales didn’t decline as precipitously as they have in the previous six months of the year," Timothy Warren Jr., chief executive of the Warren Group "Unfortunately, prices dipped even more than they did this past April, when prices were 12 percent lower than a year earlier. The drop is a dramatic turnaround from five to six years ago when prices were escalating by double-digit percentages. Foreclosure activity has certainly dragged down home prices and will continue to affect the overall market.”

The Massachusetts Association of Realtors issued its own monthly report on the local housing market this morning.

There were 3,928 detached single-family homes sold this July, a 10 percent decrease from the 4,363 homes sold the same time last year, according to the association's calculations.

The median selling price for Massachusetts single-family homes in July was $326,500, a decrease of 10.7 percent compared with $365,775 in July 2007, the association said.

The local condominium market experienced a 6.7 percent decrease in the number of units sold this July when compared with the same time last year, from 1,933 units sold in July 2007 to 1,804 units sold in July 2008, the association said.

Condominium median selling prices in July were down 2.9 percent from $293,500 in 2007 to $284,900 in 2008.

“While there has been some positive change in the fact that sales declines narrowed in July compared to other months this year, the economy continues to keep some buyers out of the market,” Massachusetts Association of Realtors president Susan M. Renfrew said in a statement. “With that being said, the condo market has seen a significant increase in activity, especially after the first half of the year when condo sales were down at least 20 percent or more each month.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:19 AM | Comments (0)

August 25, 2008

State launches insurance site for consumers

The Massachusetts Division of Insurance said it has launched a website aimed at helping consumers shop for and buy insurance, including auto, health and home coverage.

The site, insuremass.doi.state.ma.us, features guides and tools to help consumers review plans, find licensed agents and compare some premiums.
(By Ross Kerber, Globe staff)

Posted by globebusiness at 5:11 PM | Comments (0)

Nuance sues Zi in Canada over patents

Nuance Communications Inc. of Burlington and its Tegic subsidiary said today that they have filed a patent infringement lawsuit in Canada against Zi Corp.

Nuance, a provider of speech and imaging solutions for businesses and consumers, and Tegic said the lawsuit claims that Zi's Qix and eZiText products infringe Tegic's intellectual property. A representative for the Canadian company could not immediately be reached for comment.

Zi's software is used in mobile phones for predictive text messaging.

Nuance said it is seeking damages from Zi, but it did not specify how much.

Zi earlier this month rebuffed a Nuance $40.4 million unsolicited takeover offer from Nuance. Nuance called the rejection "perplexing and inappropriate" because it was at a significant premium to Zi's stock price.

Nuance's shares fell 17 cents to $15.48 in afternoon trading on the Nasdaq Stock Market. Shares of Zi fell about 5 cents, or 6.8 percent, to 66 cents. (AP)

Posted by globebusiness at 4:05 PM | Comments (0)

Sidor is named to Colliers post

Colliers International, a global affiliation of independently owned commercial real estate firms, said today that it has named Carolyn J. Sidor as executive vice president of its US operations.

"We are thrilled to announce Carolyn's appointment as executive vice president and leader of our USA headquarters operation in Boston," Walter D. Pinkard Jr., chairman of Colliers USA, said in a statement.

Before joining Colliers International, Sidor was a partner at CB Richard Ellis/New England, and her resume includes a stint as chief operating officer of the Greater Boston Real Estate Board, a trade association, Colliers said.

Earlier this year, local real estate firm Meredith & Grew joined Colliers International USA and said that the 133-year-old Boston firm would henceforth be known as Colliers Meredith & Grew.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 3:05 PM | Comments (0)

City seeks help on small-business energy pool

City officials have put out a "request for responses" from energy brokers or consultants interested in helping small businesses form an energy-buying group to reduce their natural gas and electricity costs.

Businesses participating in the energy pool would still pay the same amount for energy delivery, but would get a discount on the energy itself because of the group's ability to negotiate lower prices through a broker. Boston Mayor Thomas M. Menino proposed the energy pool in June.

Copies of the request for responses are available at the Department of Neighborhood Development's bid counter at 26 Court St. Responses are due by 4 p.m. Sept. 24.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 2:35 PM | Comments (0)

Stride Rite announces new direction for PRO-Keds

The Stride Rite Corp. of Lexington said today announced today that it has reacquired its rights to the PRO-Keds brand from licensee and hip-hop mogul Damon Dash (lower right).

Stride Rite added that it will bring the brand back in-house as part of a new strategic direction for the PRO-Keds business.

PRO-Keds was established in 1949 as a performance athletic footwear line primarily aimed at basketball, and it became synonymous with some of the biggest names in basketball and professional sports; key endorsers for the brand included George Mikan, "Pistol" Pete Maravich, JoJo White, Willis Reed, Kareem Abdul-Jabbar, and Nate "Tiny" Archibald, among others, Stride Rite said.

Stride Rite said it will launch the new PRO-Keds men's collection taking core classic styles , such as the Royal, Court King, and Royal Master, from its archives and refreshing the silhouettes with new materials, colors, and other trend details, as well as enhanced comfort features.

With a suggested retail price range of $50 to $80, the shoes will initially be available in November 2008, with a wider collection forthcoming next spring, Stride Rite said.

Stride Rite is now a unit of Collective Brands Inc. of Kansas.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:22 PM | Comments (0)

Abbey refinances Back Bay apartment complex

The Boston office of Holliday Fenoglio Fowler LP said today that it has secured a $33.5 million refinancing for the St. Germain Apartments, a rental complex with 207 apartments in Boston's Back Bay neighborhood.

Working on behalf of the Abbey Group, the owner of the complex, Holliday Fenoglio Fowler, or HFF, said it placed a fixed-rate loan with Landesbank Hessen-Thuringen Girozentrale.

"Originally built in 1900 and renovated in 1998, St. Germain Apartments has 48 brownstone buildings with studio, one-, and two-bedroom units averaging 705 square feet each," HFF said in a press release.

The Abbey Group is a Boston developer that currently owns Landmark Center and Lafayette Corporate Center, among other properties, HFF noted.
(By Chris Reidy, Globe staff)

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

Millennium signs up tenants for 179 Lincoln

Real estate firm Millennium Partners-Boston said today it has obtained lease commitments for 100,000 square feet of space at 179 Lincoln St., a newly renovated Boston office building in the city's Leather District.

Initial tenants include healthcare software developer TriZetto Group, construction company Bovis Lend Lease LMB, and the energy consulting firm PowerAdvocate Inc., Millennium said.

Millennium described 179 Lincoln as a five-story office building with about 220,000 square feet of space; the property was built in 1899 in the Beaux-Arts style.

“Our firm purchased the former Teradyne Building in 2006 and began a complete renovation in 2007, creating a new main entrance facing The Rose Fitzgerald Kennedy Greenway, a new lobby, and below-grade parking," Anthony Pangaro, principal of Millennium Partners-Boston, noted in a statement.

The building will be at 50-percent occupancy as of November, and CB Richard Ellis is the exclusive leasing agent for the building, Millennium said.

Among the local properties that Millennium Partners-Boston and Pangaro are known for is the Ritz-Carlton Hotel and Residences near the Boston Common.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:00 AM | Comments (0)

Genzyme announces new malaria collaboration

Genzyme Corp., a Cambridge biotechnology company, announced today that is part of a new collaboration that seeks new treatments for malaria.

Genzyme and Medicines for Malaria Venture, or MMV, a not-for-profit virtual research and development organization, announced a new collaboration with India's Advinus Therapeutics Ltd.

"The collaboration seeks to develop new, improved treatments for specific patient groups most at risk for malaria, an often fatal infectious disease of developing countries, particularly affecting pregnant women and infants," the two said in a press release.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:29 AM | Comments (0)

Boston firm agrees to buy Canadian company

Q9 Networks Inc. said today it has agreed to be purchased by an affiliate of ABRY Partners LLC, a Boston private equity, in a deal that values Q9 at $361 million in Canadian dollars.

Q9 of Toronto is a Canadian provider of outsourced data-center infrastructure.

Under the proposed agreement, Q9 shareholders will receive $17.05 in Canadian dollars per common share in cash, representing a premium of 38 percent to the firm's 30 trading-day volume weighted average closing price on the Toronto Stock Exchange.

Q9's press release included a statement from C.J. Brucato, a partner at ABRY.

"We are strong believers in the Canadian data-center infrastructure market and are excited to be participating in it through our acquisition of Q9," Brucato said in the statement.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:08 AM | Comments (0)

AS&E lands government contract

American Science and Engineering Inc., a Billerica company focused on X-ray detection technology, said today that the company has received a $22.2 million order from the US government.

The contract is for 22 Z Backscatter Vans, or ZBVs, a mobile X-ray screening system, the company said.

(The image above, taken from the company's website, shows how the system might detect stowaways hidden among cargo.)

"This sizable order reinforces the continued value the US government places on our proprietary Z Backscatter Vans for critical counterterrorism missions," Anthony Fabiano, company president and chief executive, said in a statement. "With this order, the US government has added to its substantial fleet of ZBVs to secure checkpoints and borders from vehicle-borne explosives and other high-risk contraband."
(By Chris Reidy, Globe staff)

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

Study finds encouraging data for drug class

PAREXEL International Corp. said today that US marketing applications for drug candidates made with new molecular entities, or NMEs, surged 33 percent in 2007.

PAREXEL is a biopharmaceutical services organization with headquarters in Waltham.

Despite a surge of applications in this category of drug candidates, approvals for drugs in the category in 2007 "reached a many-year low of 16" in the United States, PAREXEL said.

The company also looked at drug candidates that use new a active substance, or NAS.

Global launches for this category declined 19 percent to 25 during 2007, but marketing applications for NMEs increased to 28 in 2007, up from 21 filed in 2006, according to PAREXEL's newly-released The US Drug Approval Trends and Yearbook 2008/2009.

"NME and NAS approvals are key measures of new drug productivity in the biopharmaceutical industry, and these measures tend to improve based on the volume of new drug submissions," Mark Mathieu, director of publications at PAREXEL and editor of The US Drug Approval Trends and Yearbook 2008/2009, said in a statement. "The recent increase in the number of NME submissions is an encouraging sign. NMEs are a closely watched category because they are medicines that have never before been approved for any use."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:24 AM | Comments (0)

August 22, 2008

Abiomed sells $42 million in new stock

Medical device maker Abiomed Inc. of Danvers said today that it has completed a public stock offering that raised nearly $42 million.

Abiomed said it sold 2.4 million shares of common stock at just under $17.38 per share, raising about $41.7 million after expenses and the underwriting discount. The company did not specify how it would use the funds.

The offering was underwritten by Morgan Stanley & Co. Inc.

Abiomed is a top provider of medical devices for recovering heart-failure patients, selling products that allow the heart to rest and heal by taking over pumping of the heart or improving blood flow.

Its products include the AbioCor heart, a $250,000 device that the company touts as the world's first completely self-contained replacement heart.

As of Aug. 1, the company had roughly 33.7 million shares outstanding, according to a filing with the Securities and Exchange Commission.

In afternoon trading, shares were up 12 cents at $18.10 on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 2:38 PM | Comments (0)

Brides go wild for cheap gowns

The earliest arrivals were at the Hynes Convention Center last night at 5 p.m., willing to wait 13 hours to secure top spots in Filene's annual Basement Bridal Gown Sale. This morning, when the doors opened, the line stretched around the convention center.

A pair of bridesmaids were all smiles at the Running of the Brides. (Photo by Glenn Yoder / Boston.com Staff)

It's known as the "Running of the Brides" but that leaves out the sprinting to the racks, the hurdling over misplaced hangers, and the tossing of discarded dresses as brides-to-be chant, "Need a size 6 or 8" like amateur auctioneers. Some designer gowns were reduced by as much as $3,500, and bridal brigades traveled from places like the Bahamas or Montreal in search of a deal.

It's survival of the fittest here, with strategies planned out in excruciating detail. Matching team hats tower over the racks to make it easier to spot comrades. Grabbing as many dresses off the rack leaves more to barter with later. Filene's Basement has seen attendance boosted by as much as 54% at some satellite sales in cities like Chicago and Washington, D.C.

"Some of the increase is because of the economy, and people are trying to save money however they can," said Filene's Basement public relations spokesperson Pat Boudrot, before chasing after a rogue bride trying to steal a clothes rack.
(By Erich Schwartzel, Globe staff)

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

Buzzwire gears up for Democratic convention

Buzzwire Inc., a mobile streaming media service that has co-headquarters in Bedford and Denver, said today that it will bring news from the Democratic National Convention to mobile phones across America.

The convention is scheduled to begin next week in Denver.

Buzzwire said that starting Monday, it will provide special DNC coverage within its new “DNC 2008” channel, featuring reports from Barely Political’s Obama Girl, convention news updates from Political Lunch, man-on-the-street interviews, and video from after-hours parties and hot spots around Denver.

“Digital media is changing this election in dramatic ways, bringing consumers closer to the candidates and putting an even brighter light on campaign politics,” Buzzwire chief executive Andrew MacFarlane said in a statement. “Younger generations in particular have jumped back into the political game because information is now available through media that speaks to them. We’ll provide an alternative to the traditional big media coverage and present a unique view of the convention, with a little Obama Girl entertainment along the way.”

Anyone with a video-enabled mobile phone can gain access to the special Buzzwire political channel through m.buzzwire.com on their phone or http://app.buzzwire.com on the Web, Buzzwire said.
(By Chris Reidy, Globe staff)

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

AG Coakley settles housing discrimination case

The office of Massachusetts Attorney General Martha Coakley (right) said today that it has settled a housing discrimination case that involves how the expense of a service animal is factored into determining rent payments under a state voucher program for a tenant with disabilities.

Under the settlement reached earlier this week, the Greenfield Housing Authority and the Massachusetts Department of Housing and Community Development, or the DHCD, have agreed to pay $6,000 in damages to the victim, who requires a specially trained dog to help her perform daily tasks "due to mobility disabilities," Coakley's office said.

In a press release, Coakley's office said that the settlement resolves claims that the Greenfield Housing Authority "improperly denied requests" by the tenant to treat expenses for the care of her service animal as deductible under the Massachusetts Rental Voucher Program.

That program, which is administered by housing authorities and regulated by the DHCD, determines how much rent a tenant must pay based on the tenant’s gross household income, said Coakley's office, which added that DHCD regulations permit tenants to deduct from their income the cost of necessary medical expenses that are not covered by insurance or otherwise reimbursed.

Coakley said in a statement: “Tenants with disabilities who rely on service animals to assist them with their daily lives are entitled to the same treatment and benefits as other tenants. We appreciate DHCD’s working with our office to implement a new policy that clarifies this important standard which will help to ensure fair and equal access for participants in state rental assistance programs.”

Under the agreement, DHCD will publish the new policy regarding the deductibility of service animal expenses, ensure that housing authorities are aware of the policy, and provide ongoing assistance to housing authorities in implementing the policy, Coakley's office said.
(By Chris Reidy, Globe staff)

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

Broker: Cabot buys Northborough industrial park

Cabot Properties Inc., a private equity real estate investment firm with offices in Boston, has bought the I-290 Industrial Park in Northborough, a broker involved in the transaction said.

The broker is Jones Lang LaSalle, a Chicago-based real estate money management and services firm specializing in real estate; it has a big presence in Greater Boston.

Jones Lang LaSalle identified the seller as an institutional investor.

Jones Lang LaSalle described the property in a press release: "The six-building, single-story industrial park has a mix of manufacturing, distribution, research & development, and warehouse tenants. Originally constructed between 1975 and 1980, I-290 Industrial Park also has an excellent location just off Interstate 290, just a few miles from Interstates 495 and 90."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:55 AM | Comments (0)

Menino urges residents to claim stimulus check

Mayor Thomas M. Menino today urged Boston residents to file a tax return in order to claim their federal stimulus payment.

A recent Globe story noted that more than 150,000 Massachusetts residents, mostly low-income retirees and disabled veterans, have yet to file paperwork to receive federal economic stimulus checks that can be worth as much as $600, according to the Internal Revenue Service.

Menino reminded residents that they have until October 15 to file their tax return and claim their stimulus payment.

“Residents should not pass up the opportunity to claim their federal stimulus payment,” Menino said in a statement. “In these tight times, this money could certainly help out many of our families. I urge you to contact our free tax prep sites, which are still open and available to assist those who have yet to claim their payment.”

A press release from the mayor's office noted that Menino kicked off the tax season in February with the opening of 24 free tax prep sites through the help of the Boston Earned Income Tax Credit coalition, a collaboration of government agencies, foundations, community-based nonprofit organizations, and the business community.

Under the federal economic stimulus program, anyone who filed a 2007 federal tax return was automatically considered for a rebate, but many low-wage workers and recipients of Social Security and veterans benefits did not submit tax returns because their incomes were not high enough to require it or their benefits are not normally taxable, the Aug. 18 Globe story said.

Neighborhoods that have had a disproportionate amount of individuals who have not received their stimulus payment check include Dorchester, Roxbury, Jamaica Plain, and Mattapan, Menino's office said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:23 AM | Comments (0)

New England unemployment rate is up from last year

The New England unemployment rate was essentially unchanged in July from the previous month at 5.4 percent, but it was up 0.9 percentage point over the rate from a year ago, the Bureau of Labor Statistics said today.

Nationally, the unemployment rate rose to 5.7 percent in July, a full percentage point higher than a year earlier, said the bureau, part of the US Department of Labor.

Three New England states posted jobless rates different from the US average, with New Hampshire and Vermont at 3.9 percent and 4.8 percent, respectively. Rhode Island, with a rate of 7.7 percent, was "measurably higher" than the national rate, the bureau said.

The bureau added, "Among the remaining New England states, Massachusetts posted a jobless rate of 5.1 percent in July, Maine, 5.4 percent, and Connecticut, 5.8 percent, but statistically, none of these rates differed significantly from that of the nation."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:36 AM | Comments (0)

New casino is set to open at Mohegan Sun

Publicists for Mohegan Sun, a gaming complex in Uncasville, Conn., said that Project Horizon, the facility's third major expansion, is scheduled to debut next week.

Mohegan Sun said in a press release: "On August 29th, one of the largest gaming facilities in the world will get a little bigger as it opens the first portion of its $925 million expansion, the 64,000 square-foot Casino of the Wind, which will offer a 42-table poker room, more than 650 slot machines, 28 table games, Jimmy Buffett’s Margaritaville, and Chief’s Deli - a quick-service restaurant."

In other words, as Massachusetts politicians mull over what to do about gambling in the Bay State, a Connecticut rival appears to be evolving into an even more formidable competitor.

The new Connecticut facility broke ground in June 2007, and Mohegan Sun added that Jimmy Buffett’s Margaritaville is set to open Sept. 29. According to its website, Margaritaville appears to be part dining destination, part theme park.

Connoisseurs of strong drink take note: Festivities to mark the expansion's opening include plans to unveil an eye-popping new cocktail.

The gaming facility said in a press release: "During October, Mohegan Sun will also introduce a new signature drink Windswept. The commemorative drink goes for $15.00 and is a blend of two special hand-crafted spirits – Bull Dog Gin and St-Germain Elderflower liqueur – mixed with a dash of Pama liqueur, pomegranate juice, and garnish served over ice with a topping of Moet & Chandon Imperial Champagne."

Cheers.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:20 AM | Comments (2)

Hub courts young workers with Wiffle ball

Wiffle ball is a safe way for kids to learn to play baseball without risk of getting beaned by a high, hard one. And with a ball that flutters and dips, the game gives every pitcher the potential to be a knuckle-ball ace a la Tim Wakefield of the Red Sox.

But Boston officials also see Wiffle ball as one element of a larger plan to help retain the city's young work force. Connect young folks with the city, and they're more likely to resist the lure of moving away to places where the cost of living is much lower than the Hub's, or so goes the city's reasoning.

Trying to hang onto young folks, including students who came to these parts to get a college education, is one reason why Mayor Thomas M. Menino (left) has scheduled Wiffle Boston 2008, a day-long Wiffle ball tournament for 10:30 a.m. tomorrow at City Hall Plaza.

The tournament is partly organized by ONEin3 Boston, a Menino initiative launched in 2003 that focuses on serving the one-third of Boston's population that is between the ages of 20 and 34.

“Boston’s young people are the key to our city’s vitality," Menino said in a statement. "It’s great that we can host this Wiffle ball tournament on City Hall Plaza as a fun and active way to give back to them. Through ONEin3 Boston, we’ve made great strides in reaching out to the 20-34 year olds who live and work in our city. We’re continually hosting social events to engage with this group and for them to engage with each other – this Wiffle tournament is just another fun and creative way to keep that interaction alive.”

Menino's office said in a press release that registration for Wiffle Boston 2008 "is open for all young people who live, work, and play in Boston. Teams can still register for the tournament at www.SocialBostonSports.com. There is no cost for participation."

The press release added that the games will run seven innings or for 45 minutes.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:33 AM | Comments (0)

August 21, 2008

Regulators to inspect brokers on securities

Security industry regulators are planning a large scale inspection of 40 brokerage firms starting next week to examine their practices of selling auction-rate securities.

The Financial Industry Regulatory Authority has sent letters to the firms requesting in-depth documentation of their practices related to auction-rate securities, and will have inspectors at the brokerages over next week, and the week of Sept. 8, according to a person who was briefed on the regulator's plan.

The industry regulator is conducting the sweep while government investigators continue a national probe of firms involved in the $330 billion auction-rate securities. Auction-rate securities are the debt of nonprofits, municipalities and certain investment funds.

Most were sold to investors as safe, cash-like investments. But the trading market for the securities abruptly seized in February because of the credit crisis, leaving many investors stuck with investments they cannot unload.

The firms being targeted by FINRA include regional and small brokers, and brokers affiliated with banks and insurance companies, the source said. International firms are also included. The sweep will entail agents making visits to the firms to review records, in order to expedite the investigation, the source said.

The sweep is focused on firms that have large amounts of auction-rate securities customer accounts and that have drawn a significant number of investor complaints. The news was first reported by Bloomberg.

So far, six firms have agreed to buy back more than $50 billion in auction-rate securities from investors, in settlements with state and federal regulators.

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

Mass. settles with Merrill Lynch on securities matter

Massachusetts' top securities regulator said today that Merrill Lynch & Co Inc. reached a settlement on auction-rate securities with the state and will soon begin buying back some illiquid auction-rate securities.

The agreement, announced by Secretary of State William F. Galvin (right), is expected to resolve the state's enforcement actions against the Wall Street investment bank.

Massachusetts had charged that Merrill Lynch had misled clients on how liquid the auction-rate securities market was and had published overly optimistic research pieces about the market in order to help sell the securities more aggressively.

Merrill Lynch has told regulators that its customers have about $10 billion in auction-rate securities, the Massachusetts Securities Division told the Globe. (Reuters)

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

AMAG wins Fast Track designation from FDA

AMAG Pharmaceuticals Inc., a Cambridge biopharmaceuticals company, said today that the US Food and Drug Administration has granted Fast Track designation to a diagnostic agent that can be used during vascular-enhanced magnetic resonance imaging procedures.

The agent, called ferumoxytol, improves the assessment of peripheral arterial disease in patients with known or suspected chronic kidney disease, or CKD, the company said.

In a press release, AMAG added that if approved, ferumoxytol, as an iron-based imaging agent, "could offer an alternative to gadolinium-based contrast agents, which are required to contain a black box warning highlighting the risks of using gadolinium-based agents in patients with advanced kidney disease."

"We are very pleased that the FDA has recognized ferumoxytol's potential to address an important unmet medical need for a safe agent that facilitates the diagnosis of arterial abnormalities in patients with compromised kidney function," Brian J.G. Pereira, AMAG's president and chief executive, said in a statement. "We plan to initiate a Phase II study of ferumoxytol for VE-MRI for the detection of clinically significant arterial stenosis or occlusion in subjects with intermittent claudication (leg pain with walking) in the third quarter of 2008."

In its press release, AMAG noted that Fast Track is a designation that the FDA reserves for products intended to treat a serious or life threatening condition and that demonstrate the potential to address unmet medical needs for that condition.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:08 PM | Comments (0)

Mass. businesses battle over Lizzie Borden legacy

Two Massachusetts businesses are battling over the macabre legacy of a former Sunday school teacher who was accused in the hatchet deaths of her wealthy father and stepmother more than 110 years ago.

The owner of the Lizzie Borden Bed and Breakfast in Fall River, which is in the home where the 1892 slayings took place, has filed a federal lawsuit to prevent a new museum and gift shop in Salem from using Borden's name.

Donald Woods insists the attraction would infringe on his trademark of "Lizzie Borden Museum" and siphon business away from Fall River, a hardscrabble fishing community 80 miles south of Salem, which is in Boston's far-north suburbs.

Fall River Mayor Robert Correia said the double-murder mystery is one of his community's top tourist attractions. Borden was acquitted but widely believed to be guilty. No one else was ever charged.

"It's not something we are proud of that happened, but it's a fact," he said. "It has become a mystery that enthralls people, and to that extent, I'd love to see businesses here take advantage of that," Correia said.

Leonard Pickel plans to open the Lizzie Borden museum this weekend in Salem, a historic seaport famous for its 17th century witch trials.

"About 600,000 tourists come to Salem looking for the dark side of history," he said.

He said the new museum should help bring more interest to Fall River.

"The majority of the people that are walking past our door have no idea even what state the Borden murders took place, much less what city," Pickel said. "By us explaining to them the place that the murders happened is only 80 miles south of here, it's going to drive traffic to Fall River."

Pickel's group owns the domain name www.lizziebordenmuseum.com and an e-mail address with a similar name, LizzieBordenMuseum@gmail.com.

Woods is asking a judge to prevent the group from using the term Lizzie Borden in a trade name, trademark, domain name or e-mail address.

His attorneys also want the judge to order the Salem business not to represent itself as affiliated with the Fall River business, or to engage in conduct that will cause confusion over the relationship between the two businesses.

Pickel contends his Salem facility would also draw more visitors to the Fall River Historical Society, a nonprofit that maintains the largest collection of artifacts relating to Borden's life and trial.

Woods did not return a call seeking comment, and a tour guide at the bed and breakfast said staff had been instructed not to talk to reporters.

Woods' attorney, Jeremy Blackowicz, declined to comment.

A hearing on the case is not scheduled until after this weekend's planned opening of the new museum in Salem. (AP)

Posted by globebusiness at 11:04 AM | Comments (0)

ESPN signs digital rights deal with baseball

Major League Baseball and ESPN signed a new digital rights agreement that will allow the sports network to put baseball content on multiple platforms, including video game consoles and portable players such as iPods.

The deal announced today extends and expands a previous agreement, which could have expired as early as this year, through 2013. Terms were not disclosed.

(In the photo above, baseball star Manny Ramirez provides some Major League branded content.)

ESPN, which has its headquarters in Bristol, Conn., said the deal with allow for live game streaming and highlights packages on the Internet and mobile platforms. It also will allow ESPN to develop interactive television programming around baseball content.

ESPN will be able to use MLB content on content download services like Apple's iTunes Store and console game systems such as Microsoft Xbox Live.

"Our goal is always to deliver sports to fans across any platform, and this is yet another agreement that fulfills that strategy," George Bodenheimer, president of ESPN and ABC Sports, said in a statement.

Baseball commissioner Bud Selig said in the same statement that the new agreement will "bring our game to our fans in a variety of new and exciting ways."

ESPN360.com and ESPN Mobile TV will be able to simulcast all Sunday Night Baseball, Monday Night Baseball and Wednesday Night Baseball telecasts. The deal allows streaming of the Home Run Derby and other special MLB events.

The network said ESPN.com and its global sites will feature more highlights, and its mobile platforms will have new rights to show video highlights alone and as part of original shows. (AP)

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

Union local taps Putnam

Putnam Investments, a money manager with offices in Boston, said today that it was selected by the International Union of Operating Engineers, or IUOE, Local 3, to manage its $200 million defined contribution plan.

Founded in 1896, the IUOE said that today it has 400,000 members in some 170 local unions, including Local 3, throughout the United States and Canada.

Putnam said it provides Taft-Hartley retirement services, including services to more than 85 defined benefit and defined contribution plans that serve more than 300,000 union members with nearly $10 billion dollars of assets.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:47 AM | Comments (0)

Bose readies updated iPod speaker system

Bose Corp., a Framingham company known for its home entertainment systems, said today that it is ready to introduce an updated version of its SoundDock speaker system for Apple Inc.'s iPod and iPhone.

The SoundDock Series II digital music system combines the same small size and high-quality audio performance of the original SoundDock system, with an enhanced look and added functionality, said the company, which added that this is the first "Works with iPhone" certified SoundDock system from Bose.

The updated system features a new auxiliary input that lets users connect other audio devices, such as an MP3 player, portable CD player, or music-enabled phone, Bose said.

The SoundDock Series II system will be available beginning in early September at a suggested retail price of $299, and it will be sold at authorized Bose dealers, Bose retail stores, and online at www.Bose.com, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:14 AM | Comments (0)

CSN Stores courts Canadian consumers

CSN Stores LLC, a Boston online retailer of home furnishings and housewares, said today that it is now ready to offer Canadian consumers access to its more than 200 "e-boutiques," which are stocked with "branded products ranging from bar stools to bedroom sets and greenhouses to game chairs."

The company said it was responding to demand from Canadian consumers.

Retail websites under the CSN Stores umbrella include AllModern.com, Cookware.com, and BedroomFurniture.com, among others, the company said. (Taken from one of the company's websites, the image above shows a leather love-seat.)

"We believe Canadian consumers have been underserved by their online shopping options," company chief executive and cofounder Niraj Shah said in a statement. "But now we can give Canadians the same wide selection of products, well-trained customer service counselors and savings opportunities that our US customers enjoy."
(By Chris Reidy, Globe staff)

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

Casual Male Retail Group lowers 2008 outlook

Casual Male Retail Group Inc. reported quarterly earning today and lowered its full-year profit outlook, citing continued weakness in the economy and a weak sales outlook.

The Canton-based retailer of apparel for large-size men added that comparable sales for the 13-week period that ended Aug. 2 increased 0.3 percent when compared to the same period of the prior year.

Total sales for the second quarter of fiscal 2008 were flat at $113.5 million when compared with the second quarter of fiscal 2007, the company added, and second-quarter 2008 net income was $1.9 million, or 5 cents per diluted share, compared with net income of $2.5 million, or 6 cents per diluted share, for the comparable quarter last year, the company said.

"Despite the continued weakness in the economy and in the men's apparel business, we saw an improvement in our sales performance trends this past quarter," Casual Male president and chief executive David Levin said in a statement. "Although overall store traffic continues to be down, our conversion rates and average sales transactions are up, which indicates to us we are executing well in this difficult retail environment."

(At right, an image from the company's website shows a model sporting items from the Casual Male catalogue.)

Meanwhile, the company said it expects full-year profit to range from 22 cents to 27 cents per share, a drop from prior guidance of 25 cents to 30 cents per share. Sales are now expected to range from $470 million to $475 million, narrowed from $470 million to $480 million.

Analysts polled by Thomson Financial expect a profit of 23 cents per share on sales of $471.4 million.

Shares of Casual Male Retail Group closed at $3.89 yesterday on the Nasdaq Stock Market.
(Globe staff and AP)

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

Stop & Shop unveils new logo

The Stop & Shop logo is getting a major facelift. The local grocery chain will unveil the new logo at its Quincy headquarters tomorrow.

Gone are the red and green traffic lights that served as the company's symbol since it opened in 1914 In their place: a yellow bowl with three colorful halves that can be interpreted as bowls of fruit, bread or ingredients, the company's spokesperson said.

“Customers talked and we listened,” Andrea Astrachan, consumer advisor at Stop & Shop, said in a news release. “The new look shows customers that we’re making changes and committed to providing great food and meal solutions at low prices everyday.”

Many of the stores will also get advanced product scanning and checkout technology, like handheld scanners that let shoppers keep a running tab of their purchases, and ring them up instantly at automated checkout stations. Stop & Shop has deployed the technology in about 90 of its stores since 2005.; the number will double over the next year, said Jim Dwyer, chief business development officer for Ahold USA, Stop & Shop's parent company.

Dwyer said that the new technology would help reduce labor costs, but that it's mainly intended to make life easier for shoppers.

"The objective is to make it easier for them to get in and out of the store," he said.

Mothers had complained about checkout lines where children are tempted by racks of candy bars and confronted by sexually-suggestive magazines. The new checkout lanes, called "smile aisles," have been purged of these distractions. Each remodeled store will have a few of these aisles.

The Stop & Shop Supermarket Company has more than 59,000 employees in its stores throughout Massachusetts, Connecticut, Rhode Island, Maine, New Hampshire, New York, and New Jersey.
(By Angel Jennings, Globe correspondent)

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

August 20, 2008

NStar's business customers may see prices fall

NStar’s largest business customers can expect a 21 percent drop in electricity costs in the fourth quarter, due to a recent decline in the price of oil and natural gas, the company said.

Boston-area customers, most of whom use more than 50,000 kilowatt-hours a month, will see the price drop to about 11 cents per kilowatt hour, from about 14 cents, a spokeswoman said.

More than 1,000 large customers, such as CambridgeSide Galleria, will see the price cuts. The new rates take effect Oct. 1 if approved by the Massachusetts Department of Public Utilities.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 6:35 PM | Comments (0)

Senior Whole Health wins Inc. magazine honor

Senior Whole Health, a Massachusetts-based health care plan for low-income seniors, earned the top spot as the fastest-growing private company in the latest issue of Inc. magazine.

The annual list, published in the September issue, ranks the country's 5000 up-and-coming companies. The "Inc. 5000" issue hits the newsstands today.

The Cambridge-based Senior Whole Health offers a voluntary program that combines the benefits of Medicare and Medicaid into one comprehensive health services package. It provides 100 percent of prescription drugs, includes dental, and has no co-pays or deductibles. Members set aside their Medicare, Medicaid and Part D plan cards and receive a Senior Whole Health card that takes care of their health care needs.

About 55 percent of Senior Whole Health members do not speak English, and about 20 percent are illiterate. Most have one or more chronic diseases. The average number of prescriptions is six.

"The demographic shift of the 'Boomers' using Medicare and Medicaid will most likely position Senior Whole Health for continued growth in the foreseeable future," Daniel O'Connell, secretary of Massachusetts Housing and Economic Development, said in a news release.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 4:53 PM | Comments (0)

TripAdvisor takes majority stake in FlipKey

TripAdvisor LLC, a Newton-based travel website specializing in user-generated reviews, yesterday said it has taken a majority stake in FlipKey.com, a vacation rental review site based in Boston. The parties did not disclose financial terms.

FlipKey, launched last March, features 50,000 vacation homes in all 50 states. "We believe we can help FlipKey become the leader in the space and, in turn, FlipKey content will satisfy a growing need for Trip Advisor users," Steve Kaufer, the TripAdvisor founder and chief executive, said in a statement.
(By Robert Weisman, Globe staff)

Posted by globebusiness at 4:35 PM | Comments (0)

Nuance to acquire SNAPin

The biggest maker of speech-recognition software, Nuance Communications Inc., has agreed to acquire privately held SNAPin, a provider of mobile device and server self-service technology.

Under the agreement, SNAPin would receive $180 million in Nuance common stock.

Nuance’s technology is used to provide automated customer service, directory assistance, voice-activated commands on wireless devices, and dictation and transcription solutions.

SNAPin’s software lets mobile carriers interact with subscribers in real time.

The deal is expected to close in October.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 3:10 PM | Comments (0)

Study: Non-compete clauses hurt Route 128 growth

Massachusetts' Route 128 was eclipsed by Silicon Valley as the premier region for high-technology companies -- in part because of non-compete clauses, says a new study.

Non-compete clauses limit employees from using information they learned at a company and profiting from it elsewhere. However, two researchers found that while these clauses help industries in their infancy, they ultimately hamper further growth by putting the brakes on labor mobility, an important growth driver.

In 1965, high-technology industry employment along Route 128 was about three times as large as Silicon Valley's. Over the next decade, Silicon Valley grew to have 15 percent more employees; by the 1990s, the growth rate was three times as great. The northeastern region had laws that helped enforce non-compete clauses, while California did not.

These conclusions come in a paper by April Franco and Matthew Mitchell. The husband and wife team are researchers at the University of Toronto’s Rotman School of Management.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 12:40 PM | Comments (0)

LaBarge secures $9.7m deal with Raytheon

LaBarge Inc. secured an initial commitment for a $9.7 million multiyear contract with defense company Raytheon for a missile decoy program.

St. Louis-based LaBarge will produce interconnect harnesses at its Joplin, Mo., plant for Raytheon's miniature air-launched decoy program.

LaBarge said the missiles accurately duplicate the combat flight profiles and signatures of U.S. and allied aircraft, and offers counter air operations to neutralize, or destroy, air defense systems that pose a threat to pilots.

Share of LaBarge rose 10 cents to $15 in midday trading today.

Raytheon Co. is based in Waltham, Mass. Its shares rose 13 cents to $60.47 by midday today. (AP)

Posted by globebusiness at 11:04 AM | Comments (0)

Xprize and MIT hosting energy forum

The Massachusetts Institute of Technology and the California-based X Prize Foundation are hosting a forum Sept. 10 on alternative energy sources that will be videotaped and distributed to the two presidential candidates.

The forum, "Seeking Radical Breakthroughs in Alternative Energy - What I Would Advise the Next President," will be held at the MIT campus at 4:30 p.m. Leading thinkers in the alternative energy sector will speak to faculty members, students, industry experts and members of the media.

Video of the event will be packaged and given to Sen. Barack Obama and Sen. John McCain. It will also be available on the X Prize YouTube channel, www. youtube.com/xprize.

Speakers at the two-hour event include futurist Dr. Ray Kurzweil, biologist Dr. George Church, inventor Dr. Saul Griffith, and X PRIZE Foundation chairman and chief executive officer Dr. Peter Diamandis.

The X Prize Foundation, an educational non-profit that sponsors competitions with $10 million in prizes, will also announce a new partner in the energy and environment sector.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 9:55 AM | Comments (1)

Eaton Vance reports lower quarterly profit

Eaton Vance Corp. reported a lower quarterly profit Wednesday as the company grappled with tumbling stock markets and lower revenue.

The company, known for conservative portfolios such as tax-managed funds that try to minimize the taxable gains passed on to investors, said net income was $49.6 million or 40 cents per share in the third quarter ended July 31. That compares with $55.8 million, or 41 cents a share, a year before. (Reuters)

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

Mass. expects bumper cranberry crop

Massachusetts is expecting a bumper cranberry crop this fall.

Federal agricultural officials say the crop could increase as much as 25 percent this year and yield up to 1.9 million barrels, the best year in the state since 1999.

Gary Keough, director of the U.S. Department of Agriculture's statistical service New England field office, says the wet weather in July and August offset concerns about a hot June.

He says there is also a cyclical nature to the cranberry harvest, and 2007 was a down year.

The forecast was presented Tuesday at the Cape Cod Cranberry Growers' Association's annual meeting in Wareham and was based on survey responses by more than 300 Bay State growers.

Cranberry grower Peter Beaton says a good crop is "just what the industry needed." (AP)

Posted by globebusiness at 8:34 AM | Comments (0)

BJ's posts higher profit, raises outlook

BJ's Wholesale Club Inc. reported today that its profit edged up in the second-quarter and raised its full-year earnings forecast as frugal shoppers look for deals at discounters.

The Natick, Mass.-based retailer said it earned $36.5 million, or 61 cents per share, in the three-month period ended Aug. 2. That's up from $36.3 million, or 55 cents per share, in the year-ago period.

Last year's results included income of $2.4 million post-tax, or 4 cents per share, related to the disposition of a lease for one of the two ProFoods Restaurant Supply locations closed by the company in January 2007 as well as income of $3.6 million after tax, or 5 cents per share, from favorable state income tax audit settlements.

Sales rose almost 18 percent to $2.65 billion from $2.25 billion from the year-ago period. Same-store sales, or sales at stores open at least a year, rose 15.5 percent, including a contribution from sales of gasoline of 8.1 percent. Same-store sales are considered a key indicator of a retailer's health.

Thomson Reuters said analysts it surveyed were expecting BJ's to earn 57 cents per share on revenues of $2.67 billion.

BJ's raised its full-year profit forecast, marking the second upgrade in a matter of months.

The company said it now expects earnings for the year to be in a range of $2.10 to $2.20 per share, up from its May guidance of $2.04 to $2.14 per share. The May forecast was 6 cents per share above the company's previous expectations offered in March.

Analysts surveyed by Thomson Reuters expect earnings of $2.14 per share for the year.

The company also announced that its board has authorized an additional $200 million for share repurchases.

During the second quarter, BJ's purchased approximately 1.4 million shares of BJ'S common stock at an average cost of $37.45 per share, or approximately $54 million in the aggregate.

During the 26-week period ended Aug. 2, BJ's purchased approximately 2.4 million shares of BJ's common stock at an average cost of $35.30 per share, or about $83 million. Including the $200 million authorization announced Wednesday, the company has about $291 million available for share repurchase. (AP)

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

August 19, 2008

TJX to sell off Bob's Stores chain

Framingham-based TJX Cos. says it’s selling its Bob’s Stores chain to a pair of private equity firms.

The discount fashion retailer says the sale to Versa Capital Management and Crystal Capital will allow it to better focus its strategies.

Terms weren’t disclosed. TJX says the deal will result in a third-quarter charge of $15 million, or 3 cents per share.

Bob’s has 34 stores in six Northeastern states that sell casual clothing and footwear.

TX operates T.J. Maxx, Marshalls and other discount retailers.
(AP)

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

Galvin asks Fidelity to buy back auction-rate securities

Massachusetts Secretary of State William F. Galvin today wrote to Fidelity Investments, urging the Boston firm to buy back any auction-rate securities that it sold to its customers.

The letter, addressed to chief executive Edward C. Johnson 3d, cited Galvin’s ‘‘grave concern’’ about the plight of investors who have been unable to sell auction-rate securities since February.

A number of Fidelity’s customers have complained to the state Securities Division, which is part of a national regulatory probe of the $330 billion auction-rate market.

Galvin wrote, ‘‘It is my hope that Fidelity will follow the industry trend and promptly repurchase these securities.’’

Five major Wall Street firms, including UBS Financial Services Inc. and Citigroup, have agreed to $42 billion in settlements with state and federal regulators and will buy back auction-rate securities they sold to clients without disclosing the risks.

Auction-rate securities are debt issued by nonprofits, municipalities, and certain investment funds. They were sold to ordinary investors as alternatives to money markets — as safe, cash-like vehicles. But the auction-rate market shut down Feb. 13 as demand for the bonds dropped off and the brokerage firms stopped supporting trading. Investors have continued to receive interest payments, in most cases, but they have been unable to sell the investments.

Galvin’s demand that Fidelity buy back outstanding auction-rate securities marks a shift from Monday. He had previously suggested that Fidelity might, on behalf of its customers, have to go to the brokerage firms that have multibillion-dollar settlements.

Unlike those firms, Fidelity is a discount brokerage and does not provide investment advice; it mainly puts in buy and sell orders on behalf of customers.

Fidelity had no immediate comment.
(By Beth Healy, Globe staff)

Posted by globebusiness at 5:06 PM | Comments (0)

Garmin to use uLocate's friend-finding technology

Boston-based uLocate Communications, which develops location-enabled applications, has agreed with Garmin Ltd. to add friend-finding capabilities to a number of new and older Garmin GPS devices.

The deal brings uLocate’s Where platform to Garmin users, enabling subscribers to easily find and connect with friends through a network known as Buddy Beacon.

Garmin customers will be able to connect with friends, share their location, and update their status on a variety of social-networking sites, including Facebook.

Unlike other friend-finding applications, Buddy Beacon operates across multiple networks, making it possible to connect with friends who use different phones and carriers.

The Where platform is available on most major phone carriers and is used on mobile devices from Nokia and BlackBerry, as well as on Apple’s iPhone.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 4:07 PM | Comments (0)

Mortgage firm to pay $425,000 to settle charges

A Manchester, N.H., mortgage company that does business in Massachusetts, New Hampshire, and Maine has agreed to pay $425,000 as part of a settlement with regulators.

The Mortgage Specialists, president Michael Gill, and compliance officer Lisa Tracy also agreed to submit to an independent review.

The New Hampshire state banking department accused the company of more than 60 violations, including forging signatures and destroying documents. Massachusetts banking officials accused the company of unfair and deceptive business practices.

Last month, Gill admitted to paperwork mistakes, but denied fraud.
(AP)

Posted by globebusiness at 2:30 PM | Comments (0)

HLM Venture Partners teams with VentureLoop

HLM Venture Partners of Boston announced today that it has launched VentureCareers on its website to promote professional job opportunities at its portfolio companies.

The site, www.vetureloop.com, is used by more than 20 venture firms to advertise open positions at their venture-backed start-up companies. Through the VentureCareers site, portfolio company jobs are posted directly to a career page on HLM's website to solicit candidates. Jobs are then compiled onto VentureLoop.

Currently, more than 5,600 job postings at 726 venture-backed companies are listed on the site.

The site was developed by VentureLoop, which has a number of products and services designed to connect growth companies, talent, entrepreneurs and resources.

"Through our extensive network of relationships with venture capital firms, entrepreneurs and service providers, we develop a valuable pool of talent for clients and save them the time and expense of handling recruitment themselves," Jeremy McCarthy, VentureLoop co-founder, said in a news release. "Many of the job postings found on VentureLoop cannot be found on any other job board."

HLM Venture Partners is a venture capital firm that specializes in funding health care companies. The firm has a second headquarters in San Francisco.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 1:38 PM | Comments (0)

BBN lands $8.8m defense contract

Technology firm BBN Technologies was awarded $8.9 million in funding by the Department of Defense's Defense Advanced Research Projects Agency, the company announced today.

The Cambridge-based company will use the money to fund the third phase of the defense's Disruption Tolerant Networking program. The latest phase will develop and field network services that deliver critical information reliably even when no end-to-end path exists through the network. Tradition networks rely on stable end-to-end connectivity, but terrain, weather, jamming, and movement or destruction of nodes can interrupt the path and halt the follow of message traffic. BBN said the system it created can send and receive data reliably even when no stable end-to-end paths exist.

This latest awards follow BBN's completion of phases one and two, which resulted in a working prototype system.

BBN employs 700 people in seven locations in the United States.
(By Angel Jennings, Globe correspondent)

Posted by globebusiness at 11:10 AM | Comments (0)

New California CEO named by Boston Private

Boston Private Financial Holdings Inc. said today that it has named V. Charles Jackson as chief executive of its Southern California subsidiary, First Private Bank & Trust.

Jackson is replacing the subsidiary's interim CEO, James D. Dawson, the Boston-based wealth management firm said in a news release.

Dawson, who is chief executive of Boston Private Financial's private banking operation, will continue to sit on the firm's board of directors.

Jackson has worked extensively in the banking industry in Southern California, an area particularly hard hit by the economic slump and credit crisis, the firm noted.

He has held senior executive positions with large financial institutions, community banks and wealth management firms. Jackson was CEO of Los Angeles-based Security Pacific Bancorp, which recruited him to lead a major corporate restructuring, before coming to First Private Bank & Trust.

Shares of Boston Private Financial fell 37 cents, or 4.3 percent, to $8.24 in morning trading. (AP)

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

Vertex to start Phase 3 trial of hepatitis drug

Vertex Pharmaceuticals Inc said today that it has received regulatory approval to begin a late-stage trial of its experimental hepatitis C drug telaprevir in patients who have failed previous treatments.

The Cambridge, Massachusetts-based biotechnology company is already testing the drug in patients who have not received previous therapy.

Earlier this year Vertex reported positive interim results from a Phase II, or mid-stage, trial of the drug in patients who had failed previous therapies, leading some analysts to speculate that the U.S. Food and Drug Administration might review the drug based on the Phase II data.

Vertex reiterated that it is on track with its previously stated plan of filing for approval of the drug in the second half of 2010 based on data from a Phase III, or late-stage, clinical trial of the drug in patients who have not previously been treated.

Zachry Barber, a spokesman for Vertex, said the company has not provided a timeline for completing its latest trial, called Realize, but said it expects to complete enrollment of 650 patients with the most common form of the liver-destroying disease in the first quarter of next year.
The trial will be conducted in the United States and Europe and compare two 48-week telaprevir-based regimens with a 48-week control arm.

Results from the mid-stage trial showed that 52 percent of treatment-failure patients who received telaprevir in combination with the standard treatment combination of interferon and ribavirin had undetectable levels of the hepatitis C virus after 36 weeks, compared with 30 percent of patients treated with standard therapy.

Vertex is developing telaprevir in partnership with drugmaker Johnson & Johnson. (Reuters)

Posted by globebusiness at 9:56 AM | Comments (0)

Skyworks wins 5-year contract on Aegis system

Wireless chip maker Skyworks Solutions Inc. said today that it has signed a five-year, multimillion dollar contract with defense contractor Lockheed Martin Corp. to supply components for the Aegis missile-defense system.

Skyworks will be making high-precision technical ceramic toroids and inserts, which are crucial in steering systems.

The Navy's Aegis is the sea-based component of the U.S. missile-defense system and combines radar and missile technology to try to intercept incoming missiles in space.

Further financial details of the contract were not disclosed.

Skyworks also makes products for automotive, cellular and medical applications.

Shares of Skyworks fell 9 cents to $9.31, while Lockheed shares added 20 cents to $115.45 in morning trading. (AP)

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

Linens 'n Things moves forward on Chapter 11

Vendors for the bankrupt home furnishings retailer Linens Holding Co. will allow letters of credit as payment from the company that filed Chapter 11 in May, the company said Monday.

More than 40 vendors, including major suppliers like Springs Global US, the Yankee Candle Company, Croscill Home Fashions, and M. Block & Sons, have agreed to accept credit up to $100 million, Linens Holding Co. said. The United States Bankruptcy Court for the District of Delaware approved the payment program last month, the company said.

The company, based in Clifton, N.J., announced the closing of 120 stores including Massachusetts stores in Kingston, Lanesboro, and Seekonk in May. Last month, the company announced an additional 57 closings, including stores in Burlington, Sturbridge, and Taunton

The initial closings will be completed in the next few weeks, said spokeswoman Susan Kenney.

“Wherever there’s an opportunity to transfer (employees) we will if there’s another store nearby,” Kenney said in a phone interview. Otherwise, layoffs will occur, she said.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 8:21 AM | Comments (0)

Abiomed to offer 2.4m shares of common stock

Cardiac medical devices maker Abiomed Inc. said Monday it would offer 2.4 million shares of common stock.

The offering is being made in connection with a filing that first became effective on Oct. 17, 2006, the company said.

Morgan Stanley & Co. will act as underwriters for the offering.

As of Aug. 1, the company had roughly 33.7 million shares outstanding, according to a filing with the Securities and Exchange Commission.

Shares fell 74 cents, or 3.9 percent, to $18.15 in aftermarket trading, after closing the regular session down 15 cents at $18.89. (AP)

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

Staples warns on earnings

Staples Inc. warned today that its second-quarter results, excluding its acquisition of Corporate Express, would be weaker than anticipated.

The Framingham, Mass.-based office supply company said revenue rose about 3 percent and earnings per share fell about 15 percent in the quarter compared to a year ago. At the end of the first quarter, Staples executives predicted that earnings per share would be flat in the second quarter.

Analysts polled by Thomson Reuters expected earnings per share of 25 cents and revenue of $4.49 billion, on average. That profit estimate assumes flat growth over last year's second quarter.

Staples said North American sales fell 1 percent while comparable store sales fell about 7 percent over 2007, due to lower customer traffic and smaller orders. International sales rose 17 percent, with a big boost from a weak dollar, and rose 6 percent when measured in local currency.

Staples will report final results on Sept. 3 for the quarter ended Aug. 2. Those results will include Corporate Express results for July, when Staples completed its acquisition of the Dutch office supply company.

Excluding Corporate Express, Staples said it expected low single-digit sales growth and flat earnings per share for 2008. (AP)

Posted by globebusiness at 8:16 AM | Comments (0)

August 18, 2008

Fenway Sports Group opens West Coast office

Fenway Sports Group will open a West Coast office as part of its first-ever expansion, the agency announced today.

Opening the office in San Diego, Calif. is a "natural progression" for the sales and marketing arm of New England Sports Ventures, said Mike Dee, FSG president.

In February 2007, FSG bought a 50 percent stake in Roush Racing, creating Roush Fenway Racing. Later that year, the agency became the managing partner in a group to acquire Salem Avalanche, a minor league baseball franchise in December.

Pat Connors will direct the new office as senior vice president, the company said. Previously, Connors worked for 19 years as a marketing vice president at Liquid Investments Inc., a beverage distributor based in San Diego.

In addition to FSG, New England Sports Ventures owns the Boston Red Sox, Fenway Park, and 80 percent of New England Sports Network.
(By Elizabeth Campbell, Globe correspondent)

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

Nuance criticizes Zi for rebuffing takeover bid

Nuance Communications Inc., which makes speech recognition software, slammed Zi Corp.’s management today for rebuffing its $40.4 million unsolicited takeover offer, calling the decision by Zi’s board ‘‘perplexing and inappropriate’’ because of the significant premium Nuance offered.

Burlington-based Nuance, whose software is found in cars, dictation systems, and consumer electronics, made its all-cash, 80-cents-per-share bid last week — a 150 percent premium over Zi’s closing stock price the day before the offer was announced.

Zi is a Canadian firm whose software helps people send text messages and e-mails by predicting their typing habits and correcting commonly misspelled words.

Zi said it wouldn’t negotiate with Nuance over a potential deal.

Zi reported a wider quarterly loss of $1.5 million, or 3 cents per share, as revenue slumped 22 percent to $2.7 million.
(AP)

Posted by globebusiness at 2:49 PM | Comments (0)

Boston Acoustics launches iPod speaker system

Boston Acoustics Inc., a Peabody audio system manufacturer, has unveiled a new speaker system for Apple iPods. The Horizon i-DS2 iPod Speaker System with a price tag of $179.99 can fill a room with "crisp clean stereo sound," the company said.

The system sports dual 3 1/2" full-range speakers and 60 watts of power, allowing users to dock and charge their iPods while listening to tunes.

To provide maximum bass sound, the i-DS2 offers an acoustically tuned chamber. The speaker system accommodates any model iPod and is designed with a remote to give users "across the room" access, the company said. The speaker system can also connect to TV with any video-capable iPods to show off photos and videos.

The Horizon i-DS2 comes in gloss black or gloss white with matching perforated metal grilles, but users can customize the system by selecting different colored speaker grilles.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 2:44 PM | Comments (0)

Prudential additions to get shorter

The owner of the Prudential Center is reducing the size of a proposed office tower and residential building to try to placate Back Bay neighbors who said the height of the buildings would have adverse affects on wind and sunlight in the area, according to new plans filed with the city.

Boston Properties LLC. wants to cut the height of its tower at 888 Boylston Street to by two floors, to 17 stories, a reduction of 23 feet. The firm is also proposing to trim three stories off Exeter Residences, dropping the building to 27 stories from an earlier plan that called for 30.

The changes to the project were outlined today in new plans filed with the Boston Redevelopment Authority, which must sign off on the new design. The building at 888 Boylston, to be built in front of the Prudential Tower, will be the final office building in the Prudential Center complex.

The Prudential Center project has gone through a series of alterations over the course of 22 years, with developers struggling to reach agreement with the city and neighbors over a final design.
(Casey Ross)

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

First Marblehead falls to loss; brings back co-founder

Student lender First Marblehead Corp. said today that it swung to a loss in both the fourth quarter and fiscal 2008.

The Boston-based firm said its fourth-quarter loss amounted to about $57 million, or 57 cents per share. That compares with a profit of $78 million, or 83 cents per share, in the year-ago period.

The loss includes a $60 million charge from increasing discount rates used in determining the fair value of the company's service receivables, the company said.

For the full year, the company said it will post a loss of about $235 million, or $2.46 per share, down from a profit of $371.3 million, or $3.92 per share.

First Marblehead plans to release its results for the quarter ended June 30 later this week.

For the quarter ending June 30, analysts polled by Thomson Reuters, on average, expect the company to report a loss of 22 cents per share. For fiscal year 2008, analysts project a loss of $1.86 per share. Analyst estimates typically exclude one-time items.

In May, the company slashed 500 jobs in a move to save $200 million a year amid what it called "an extraordinary challenging business environment."

First Marblehead receives fees for initiating and processing student loans for banks and other lenders. It also packages such loans and sells them as securities.

Shares of First Marblehead shot up $1.27, or 42.3 percent, to $4.28, in morning trading.

On Monday, the company also announced that co-founder Daniel Meyers will return to lead the firm.

Meyers will take on the role of president and chief executive, as well as be a part of the First Marblehead's board, beginning Sept. 1, the company said.

Jack Kopnisky, the company's current chief, will resign Aug. 31.

Meyers helped co-found the company, which receives fees for initiating and processing student loans for banks and other lenders, in 1991.

"We believe there is no better person to now lead First Marblehead than our co-founder Dan Meyers," said Lead Director William R. Berkley, speaking on behalf of the board and the company. "Dan provides extraordinary strategic, market and product leadership and is uniquely qualified to guide the Company through this challenging operating environment."

In September 2005, Meyers, who held the CEO role, resigned following his admission that he had given gifts valued at $32,000 to a former employee of a major client, the company said.

At the time, Meyers told First Marblehead's board of directors that he purchased the gifts with his own money, but the board concluded he violated the firm's ethics policy.

Under the terms of his employment agreement, Meyers will receive an annual base salary of $1, though he will get $1 million and stock options if certain targets are met. (AP)

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

Dyax says drug was effective in angioedema trial

Dyax Corp. said today that its lead drug candidate DX-88 met its goals in a late-stage clinical trial, reducing symptoms of a genetic blood disorder more effectively than a placebo.

In the trial, 96 patients with hereditary angioedema were given either an injection of DX-88, also called ecallantide, or a placebo. The main goal of the trial was a reduction in symptoms, and 93.8 percent of patients who received DX-88 reported reduced symptoms after four hours. Only 58.3 percent of patients who took a placebo reported improvement.

Hereditary angioedema is a potentially fatal genetic disorder involving a deficiency of a certain type of protein in blood plasma. Its symptoms include swelling of the face, hands, feet and throat.

Secondary goals of the trial included sustainability and durability of response. In total, 43.8 percent of the DX-88 patients said their improvement lasted 24 hours, while only 20.8 percent of the placebo group experienced the same improvement.

DX-88 was given in a 30-milligram injection. Dyax said the drug was well-tolerated and there were no serious side effects.

DX-88 is being tested as a treatment for moderate to severe attacks of the condition. Based on the trial results, Dyax said it plans to complete its application to the Food and Drug Administration early in the fourth quarter.

In premarket trading, Dyax shares jumped $1.07, or 24.7 percent, to $5.40, which put them on pace to open at an annual high. The stock closed at $4.33 on Friday. (AP)

Posted by globebusiness at 9:58 AM | Comments (0)

August 15, 2008

Hynes Convention Center will start renovation phase

The Massachusetts Convention Center Authority said today that recent state legislation will allow work to begin on the construction of 20,000 square feet of new restaurant space at the John B. Hynes Veterans Memorial Convention Center in Boston's Back Bay.

The construction is part of an $18 million renovation plan for the Hynes Convention Center and will take about six months to complete, the authority said.

The authority said the work will include "demolishing the existing administration space on the east side that faces the Prudential Plaza, as well as rooms on the corner of Boylston and Dalton Street. Crews will install new plumbing, electric, mechanical, heating and air conditioning systems, in order to support the restaurant operations."

"Construction will not interrupt or negatively impact convention bookings or business," the authority added.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:22 PM | Comments (0)

State launches reverse-mortgage website

The commonwealth of Massachusetts said today it has launched a new website to help educate older home owners about the pros and cons of reverse mortgages and the desirability of seeking financial counseling when considering one.

The website's address is www.mass.gov/reversemortgage, and according to state officials, such mortgages are increasingly popular among older residents looking to supplement a Social Security income.

"Reverse mortgages are loans that enable senior homeowners, typically 62 years and older, to convert the equity in their home into income," officials noted in a press release.

In a statement included with the release, Daniel C. Crane, undersecretary of consumer affairs and business regulation, said: “Reverse mortgages are extremely complicated products and consumers, beyond the required counseling, should make every effort to obtain independent legal and financial advice when considering one. It is important to appreciate the costs associated with these loans and that, over time, the loan will deplete the accumulated equity in your home.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:18 AM | Comments (0)

Jordan's will support Komen breast cancer 5k walk

The Massachusetts affiliate of the Susan G. Komen for the Cure organization announced that Jordan's Furniture is the presenting sponsor of "Sleep in for the Cure," part of the 2008 Komen Massachusetts Race for the Cure.

On its website, Komen for the Cure describes itself as a grassroots network of breast cancer survivors and activists devoted to saving lives through promoting regular screening and raising money to research cures and to provide quality care for women with breast cancer.

The Massachusetts affiliate of the group has scheduled the Annual Komen Massachusetts Race for the Cure for Sept. 7 at the University of Massachusetts Boston, and Jordan's Furniture, a Taunton-based chain, will help augment the affiliate's fund-raising efforts.

As the presenting sponsor, Jordan's will donate $50 to the Massachusetts affiliate in the name of each participant who purchases a mattress from Jordan's by October 19, the company said.

"Breast cancer touches the lives of just about everyone, in one way or another, and we wanted to do our part to help those in Massachusetts impacted by this terrible disease," Eliot Tatelman (left), president and chief executive of Jordan's Furniture, said in a statement. "If you aren't able to walk or run 5K on Sunday morning, no problem! Just sleep in on your comfortable mattress, knowing that you are still a part of this wonderful event, raising money for this great cause."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:16 AM | Comments (0)

Verizon: Florida, Mass., now has high-speed Internet

Verizon Communications Inc. said that the Western Massachusetts community of Florida now has access to Verizon's high-speed Internet service.

Until this week, Florida was one of 24 Western Massachusetts communities where broadband Internet access had been unavailable, Verizon said.

Verizon added that it is planning to offer the service to the 23 other communities this year.

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 8:35 AM | Comments (0)

UMass-Boston joins city retail-card program

The University of Massachusetts Boston and the Boston Main Streets program announced a partnership to promote the Boston Community Change card among the university's more than 75,000 students, faculty and staff, and alumni.

The partnership was announced by Mayor Thomas M. Menino and Chancellor J. Keith Motley (right).

The Boston Community Change affinity card, when used at participating businesses throughout Boston’s 19 Main Streets neighborhoods, provides customers with an earned cash rebate and directs a portion of each purchase toward the Boston Main Streets Foundation and a nonprofit or school of the cardholder’s choosing, the mayor's office said in a press release.

The Boston Community Change program was founded in 2006, and the card is now accepted by more than 200 businesses in neighborhoods from West Roxbury and Dorchester to East Boston and Allston/Brighton, the mayor's office said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:54 AM | Comments (0)

August 14, 2008

N.H. regulators say UBS misled student loan agency

New Hampshire regulators say they believe there is another type of victim in the auction-rate scandal: an issuer of the bonds that have ensnared investors since February.

In a lawsuit against UBS Financial Services Inc., the New Hampshire Bureau of Securities Regulation alleged today that the Swiss bank misled a nonprofit New Hampshire student loan agency about the auction-rate market. UBS violated its fiduciary duty to the lender, a longtime client, the bureau alleged, by encouraging it to continue to issue debt through the auction market when UBS knew the market was on the verge of collapse.

‘‘It’s very clear to us that UBS was managing its way out of this auction-rate market in a way that it was not fully informing their client about the risks and what consequences there could be to them in this failed market,’’ said Mark Connolly, director of the bureau.

UBS said it would vigorously defend itself against the lawsuit: ‘‘This complaint attempts to link a single client interaction with overall market conditions which affected all student loan issuers, and as such we believe there is no basis for these specific allegations.’’

The lender, the New Hampshire Higher Education Loan Corp., was warned about trouble in the market long before the investors in its bonds.

As previously detailed by the Globe, UBS told the loan group by mid-December last year that the auction-rate market was faltering. Its executives signed an agreement that took effect Dec. 17 to pay dramatically higher interest on its bonds in the event the market did fail in order to keep attracting investors. The agreement was disclosed in a memo to investors posted on the lender’s website.

René A. Drouin, the lender’s chief executive, said his group filed a complaint against UBS with New Hampshire securities officials within the past two weeks. UBS last week agreed to buy back $19 billion in auction-rate securities from investors, in a settlement with federal and state regulators. The latest New Hampshire action is separate from that settlement.

Auction-rate securities are a form of debt that student lenders and other nonprofits used to fund their operations because it was inexpensive. For years, rates were reset at weekly or monthly auctions, which drew investors looking for returns slightly better than money market funds. But on Feb. 13, auction markets all shut down, as trouble in the credit markets spooked investors and Wall Street’s giants all decided to stop supporting the trades.
(By Beth Healy, Globe staff)

Posted by globebusiness at 3:05 PM | Comments (0)

Boston Scientific recalls NexStent products

Boston Scientific Corp. is recalling its NexStent carotid artery products because part of the stent's delivery system can detach and cause injury, US health regulators said today.

The recall, which includes NexStent products made from June 2007 to May 2008, does not affect stents that have already been implanted, the Food and Drug Administration said.

Representatives for the company were not immediately available to comment. (Reuters)

Posted by globebusiness at 1:01 PM | Comments (0)

Raytheon wins $34m contract from US Army

Waltham defense contractor Raytheon Co. said today that it won a $34.4 million contract from the US Army to provide additional upgrades to its Patriot anti-ballistic missile system.

The contract calls for Raytheon to provide hardware upgrades to Patriot radars, engagement control stations, and launchers, as well as improved logistics capability, the company said.

The contract is part of a larger $310 million "Pure Fleet" equipment modernization contract the Army awarded to Raytheon in December.

Shares of Raytheon rose 16 cents to $60.58 in midday trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 12:39 PM | Comments (0)

Electrochem is moving to larger facilities

Electrochem said it will relocate 230 employees this week from Canton to a much larger "green" facility in Raynham (above).

Electrochem is a subsidiary of Greatbatch Inc., a Clarence, N.Y., company that develops batteries, capacitors, and related components that are used in such products as implantable medical devices.

A ribbon-cutting ceremony for the new 82,000-square-foot facility in Raynham is scheduled for Friday, the company said.

Double-digit growth since 2005 has caused Electrochem to outgrow its current space, and the new $30 million facility is almost triple the size of the Canton facility, the company said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:47 AM | Comments (0)

Boston Scientific falls on new stent questions

Shares of Natick medical device maker Boston Scientific Corp. fell today as researchers raised new questions about the effectiveness of drug-coated stents, which are used to treat clogged arteries.

Boston Scientific shares fell 64 cents, or 4.8 percent, to $12.74 in morning trading on the New York Stock Exchange.

On Tuesday, researchers reported that drugs are just as effective as artery-opening stents at treating patients with long-term chest pain who are not at risk of heart attack.

Research published in the New England Journal of Medicine showed the advantage of stents versus drugs at relieving pain in these non-emergency cases fades within six months and vanishes after three years.

Boston Scientific reported $382 million in sales from its Taxus stents last quarter.

Stents are tiny tubes mesh tubes used to hold open arteries after they have been cleared of fatty plaque.

Shares were also pressured by a Wall Street Journal report claiming that the company's studies of its next-generation Taxus Liberte stent are based on flawed data. According to the Journal, Boston Scientific's analysis of its clinical trials gave undue advantage the stent, which is sold in Europe.

Using over a dozen other methods of calculation, the Taxus Liberte would have failed to meet the company's goal of showing 'non-inferior' results compared with an older Boston Scientific stent, the newspaper reported.

Company spokesman Paul Donovan said that U.S. regulators, who are reviewing the stent for approval, have already signed off on the quality of the company's work.

"The FDA has reviewed the trial results and the analysis and has validated both," said Paul Donovan in a statement. "While this may be an interesting statistical debate, it has no bearing on the performance." (AP)

Posted by globebusiness at 11:37 AM | Comments (0)

Iraq vet wins state's first Home for the Brave loan

An Army sergeant who has logged three tours of duty in Iraq is the first person to receive a loan through the state's new "A Home for the Brave" mortgage program, MassHousing said today.

MassHousing, the state's affordable housing bank, played a role in developing the program unveiled last month by Governor Deval L. Patrick.

Among other benefits, the program provides loans with discounted interest rates to veterans of the US Armed Forces who live in Massachusetts.

The program's first loan went to Sgt. Joshua Brett and his wife, Tracy, who will use the money to purchase their first home, MassHousing said; the home is in Freetown, where Tracy Brett and the couple's two children had been living with her parents.

Joshua Brett is scheduled to be honorably discharged from the Army in January, and "the couple had difficulty finding a conventional mortgage because it looked to lenders like he did not have steady employment," MassHousing said.

Supplied by MassHousing, the photo above shows, from left, real estate agent Dawn Devlin; Joshua Brett; his wife, Tracy Brett. To the couple's right is Peter Muise, president and chief executive of First Citizens' Federal Credit Union, which originated the loan; and attorney Joseph Michaud, MassHousing said.

In order to fund the loan program, MassHousing said it sought lending commitments from Massachusetts banks and credit unions. More than 50 lending institutions have so far committed approximately $216 million in private funding. No taxpayer funds or MassHousing bond funds will be used for the program, MassHousing said.

"Brave men and women from Massachusetts are serving their country overseas to fight for our freedom and to protect our way of life," Patrick said in a statement. "They deserve every opportunity to live the American Dream, and this program will help deserving veterans do just that."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:19 AM | Comments (0)

Bay State lost nearly 3,000 jobs in July

Massachusetts employers shed nearly 3,000 jobs in July as the state economy continues to feel the effects of the national economic downturn.

The state unemployment rate slipped to 5.1 percent from 5.2 percent in August.

Massachusetts has so far avoided the worst of the national economic downturn because of its technology and health science sector. For most of the past several months, the state has added jobs even as the nation lost them.

July's job losses were the first since April and the latest sign that national slowdown is taking a toll. Over the past year, employment has grown less than a half percent, compared to 1 percent the previous year. And despite the slight decline in July, Massachusetts jobless rate has risen sharply in recent months, up a percentage point since April.

Leisure and hospitality, which includes hotels and restaurants, led the losses in July, cutting 2,500 jobs. Manufacturing shed 2,400; professional and business services, 700; and retailers, 100.

On the other side, education and health services, which includes universities and hospitals, added 3,600 jobs, and financial services added 100. Employment in information, a technology sector that includes software, was flat.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 10:50 AM | Comments (0)

Hub's consumer price index rises sharply

The consumer price index for Greater Boston has risen 6.3 percent since July 2007, the highest annual inflation increase recorded since 1990, the Bureau of Labor Statistics said today.

Nationwide, the Greater Boston increase was also the biggest for all metropolitan areas that posted data for July, said the bureau, which is part of the US Department of Labor; the national annual increase was 5.6 percent.

The increase in Greater Boston was "largely attributable" to increases in the housing costs and higher prices for gas and utilities, the bureau said.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:16 AM | Comments (0)

Concord ranks high as literary destination

Forget Paris. The city of light - and the haunt of Hugo and Left Bank literati - is eclipsed by Concord and the Walden Pond crowd when it comes to top literary vacation destinations.

So decrees TripAdvisor, a travel community operated out of Newton.

In ranking the top 10 literary destinations, Concord, which is also beloved as the zip code where Louisa May Alcott penned "Little Women," placed sixth, and Paris was seventh, TripAdvisor said.

London, a venue for novels and poems by such greats as Dickens and Keats, was tops on the list. Shakespeare's Stratford-upon-Avon was second. And thanks to Sherlock Holmes and Harry Potter, Edinburgh placed third, TripAdvisor said.

Dublin is a swell place for devotees of double-meaning books, and lovers of Kerouac and the Beat Generation can't go wrong in New York and San Francisco, the list suggests.

Dickens, incidentally, was a great believer in travel - and the importance of getting out of the house.

"Sometimes," he once observed, "it is better to be found out than found at home."
(By Chris Reidy, Globe staff)

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

Toth lands fashion account

Toth Brand Imaging said it has been tapped by New York & Company, the New York-based specialty retailer, to develop a new brand platform and marketing campaign.

Billings for the account were not disclosed, said Toth, which has offices in Cambridge.

Working with New York & Company’s marketing department, the Toth team said it will "refine the brand positioning and develop a print, outdoor, and online advertising campaign."

At right, a model shows off some New York & Company fashion. The photo was taken from the retailer's website. According to the special fall fashion issue of "Town & Country" magazine, wide-leg pants are "the working woman's new best friend."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:14 AM | Comments (0)

Boston Properties prices offering of $650m notes

Boston Properties Inc., a real estate investment trust whose local portfolio includes such signature buildings as Prudential Tower, said that its subsidiary Boston Properties Ltd. Partnership priced an offering of $650 million in notes.

The notes are exchangeable senior notes due 2014 with a coupon of 3.625 percent. The maturity date of these notes is Feb. 15, 2014.

The company expects net proceeds of $636.1 million. An additional $97.5 million aggregate principal amount of notes may be issued within 30 days to cover over-allotments.

Boston Properties expects to use net proceeds for a capped call transaction -- designed to reduce the potential dilution of the notes -- with some initial purchasers, which increases the effective exchange price of the notes to $137.17. The stock closed at $97.98 on Wednesday.

A capped call is an option with a pre-established profit cap.

It will also use net proceeds to repay debt, for real estate development opportunities, real estate asset acquisitions and other real-estate investment opportunities. (AP)

Posted by globebusiness at 7:58 AM | Comments (0)

August 13, 2008

Fidelity: Workers continue funding 401k plans

Most Americans are continuing to contribute to their workplace savings plans, such as 401k plans, despite all the recent economic upheaval, Fidelity Investments said in a report issued today.

The Boston mutual funds giant sells a range of investment products, including 401k and other products designed to help consumers save for retirement.

Across all contributing Fidelity participants, the average pre-tax amount employees contributed in the first half of 2008 increased by 1.4 percent to $3,187, compared with $3,142 in the first half of 2007, Fidelity said.

While workers continued to fund their workplace savings accounts, the average account balance was down 7.5 percent to $64,000 at the end of June 2008 from $69,200 at the end of June 2007, due to market impacts, Fidelity said.

Scott B. David, president of retirement services at Fidelity Investments, said in a statement: “There is no doubt that American workers are feeling the pressure from escalating energy and food prices as well as a slumping real estate market, but the majority are making retirement a priority and staying the course. What we’re seeing in the first half of this year is similar to what we saw during the last period of market volatility that began in 2001. During that turbulent market period, workers also continued to fund their workplace accounts, recognizing the importance of saving for retirement even during a down market.”

One other highlight from the report: As of the end of 2007, only 9 percent of workers contributing to their workplace savings plans reached the annual maximum of $15,500.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 1:02 PM | Comments (0)

Pilots union honors Logan

See, the thing about flying is that I like landing in one piece, and I appreciate anyone who helps make that happen.

It's both easy and fun to take whacks at the folks at Logan for all kinds of stuff, from problems with on-time arrival and departure rates to problems with baggage and parking -- both when it's warranted as well as when it isn't (it's kind of like being a Red Sox fan that way).

But credit where credit is due. This week the Air Line Pilots Association named Logan as its Airport of the Year. Why, you ask?

The ALPA, the world's biggest pilot union, cited Logan's efforts to reduce runway incursions and excursions through enhanced markings and technologies and its new physical improvements to reduce congestion and delays. All good things.

So, at least for today, we tip our caps to Logan. Tomorrow, as they say, is another day.
(By Paul S. Makishima, Globe staff)

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

SatCon Technology shares drop after loss widens

Shares of SatCon Technology Corp., a Boston firm that makes electronics, generators and motors for the alternative energy industry, plunged today after the company said its second-quarter loss widened due in part to a jump in operating costs.

The stock tumbled 39 cents, or 15.7 percent, to $2.08 in midday trading on the Nasdaq Stock Market.

For the three-months ended June 28, the company posted a net loss attributable to common stockholders of $9.1 million, or 18 cents per share, compared with $3.7 million, or 9 cents per share, in the year-ago period.

Revenue jumped 45 percent to $16.9 million from $11.7 million a year earlier.

Total operating costs and expenses increased to $22.4 million from $15.2 million.

Additionally, the company recorded a $2.4 million loss from the change in the fair value of convertible notes and warrants, compared with a gain of $385,035 a year earlier.

"Looking ahead, we are focused on positioning SatCon as a worldwide leader in commercial and utility scale power solutions within the renewable energy market," president and chief executive Steve Rhoades said in a statement. "Based on these initiatives, and the ongoing support of our customers, channel partners, shareholders, and employees, we believe these aggressive actions will enable us to build a growing and profitable company."

So far this year, the stock is up about 40 percent. (AP)

Posted by globebusiness at 12:07 PM | Comments (0)

Molecular Insight reports larger loss

Molecular Insight Pharmaceuticals Inc., a Cambridge biotechnology company, reported a larger second-quarter loss today, as it spent more money to develop its drug candidates.

Molecular Insight lost $21 million, or 84 cents per share, compared with a loss of $11.5 million, or 47 cents per share a year earlier. All the development-stage company's revenue comes from grants by the National Institute of Health, and those grants increased to $88,000 from $17,000. However, its total expenses increased 36 percent, to $16.4 million.

On average, analysts expected a loss of 81 cents per share on $17,000 in revenue, according to Thomson Reuters.

Molecular Insights is a development stage company, meaning it does not have any products on the market. The company is developing cancer drugs including Azedra and Onalta, and imaging agents such as Trofex.

Research and development costs rose to $10.1 million during the quarter, from $7.7 million, and general expenses climbed to $6.4 million from $4.4 million. Interest income increased but did not keep up with interest expenses.

The company said it finished an early-stage trial of Azedra against adrenal gland tumors, and began a midstage trial of the drug against cancers that affect nerve tissue. It completed enrollment in a midstage trial of its imaging agent Zemiva in the detection of cardiac ischemia, a condition in which blood flow and oxygen are blocked from a particular part of the body. It also started an early-stage trial of Trofex in prostate cancer.

That trial is also evaluating two cancer drug candidates Molecular Insight has discovered.

In morning trading on the Nasdaq Stock Market, Molecular Insight shares fell 23 cents, or 2.7 percent, to $8.16. (AP)

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

Sheraton Boston debuts Microsoft Surface technology

The Sheraton Boston, located on Dalton Street in the Back Bay, is one of five Sheraton properties that today will introduce a version of Microsoft Surface, a table-like computer.

The 30-inch display, which will be in the Sheraton's lobby, allows people to interact with content and information by using their hands and gestures.

A Massachusetts-based company is also marketing a large, horizontal computer display. The DiamondTouch "tabletop computer" is chasing some of the same ideas as the Microsoft version. (You can watch a video and read previous Globe coverage of this emerging computer genre here.)

The Microsoft Surface at the Sheraton is loaded with applications designed to provide entertainment and information about local attractions. For example, it contains satellite maps and tools that allow users to search for local restaurants and bars, entertainment, recreation, shopping, transportation and services, such as banks and pharmacies.

“We’re excited to be working with Sheraton in its efforts to feature innovation and redefine the guest experience in its hotel properties,” said Pete Thompson, general manager, Microsoft Surface. “Surface takes a common activity, such as looking up information about a local city, and transforms it into an intuitive and social way for hotel guests to plan their visit. We believe this is just the beginning of how Surface will completely change the hotel guest experience.”

Posted by globebusiness at 10:07 AM | Comments (0)

PatientKeeper closes $7.5 million round of financing

PatientKeeper, Inc., a developer of physician information systems, today announced that it has closed a $7.5 million round of funding. The round was led by new investor Flybridge Capital Partners and included existing leading healthcare investors Frazier Healthcare Ventures, New Enterprise Associates, and Whitney & Company. The funding will be used to increase the company's investment in research and development and support expanded operations as it continues to grow at a rapid pace.

PatientKeeper's Physician Information System provides physicians with a single software environment to manage their patients across all care settings using any computing device, including PCs, tablets, smartphones and PDAs.

PatientKeeper is based in Newton, Mass.

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

Insulet loss widens as operating costs soar

Insulet Corp., which makes an insulin infusion system for diabetics, said Tuesday its second-quarter net loss widened as operating expenses soared.

Its shares fell $2.31, or 15.5 percent, to $12.60 in aftermarket trading.

For the period ended June 30, the company reported a loss of $23.9 million, or 87 cents per share, compared with a loss of $12.7 million, or 99 cents per share, in the year-ago period.

The number of outstanding shares jumped to 27.6 million from 12.8 million between the periods.

Revenue more than doubled to $7.4 million from $3.2 million, as did operating expenses, which leapt to $19.8 million from $8.7 million.

Analysts polled by Thomson Reuters expected a loss of 70 cents per share on revenue of $7.6 million. Analysts typically exclude one-time charges.

"Looking ahead, we continue to believe that our innovative and easy-to-use product is well positioned to address a significant, unmet need in the diabetes therapy market," Duane DeSisto, president and chief executive officer, said in a statement.

Meanwhile, Insulet lowered its 2008 revenue outlook to a range mostly below Wall Street's expectations, citing slower-than-expected conversion of referrals to patient shipments.

During regular trading, the stock gained 2 cents to close at $14.91. (AP)

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

Altus hits all-time low on Trizytek trial results

Shares of Altus Pharmaceuticals Inc. plunged to an all-time low Tuesday as Wall Street reacted negatively to preliminary results from a late stage trial of its Trizytek enzymes.

Late Monday, the Cambridge, Mass., company said Trizytek significantly improved fat absorption for cystic fibrosis patients who suffer from pancreatic insufficiency, a condition that leaves them unable to properly absorb nutrients from food. However, the improvement was smaller than some analysts had expected, and Altus said patients in several countries did not experience any improvement compared to a placebo.

Cystic fibrosis is a genetic disease that causes serious lung infections and digestive difficulties.

Altus shares dropped $2.44, or 49.4 percent, to $2.50 and set an all-time low of $2.12. The stock began trading in January 2006, and has ranged between $14.30 and $3.65 in the past year.

The primary goal of the trial was improvement in fat absorption, which was determined using a measurement called coefficient of fat absorption. On average, the CFA of patients taking Trizytek improved 36 percent, and patients taking a placebo improved only 4 percent. Patients with severe absorption problems improved by 80 percent, compared with a 24-percent improvement for patients given the placebo.

Altus said patients in the U.S. experienced stronger results. But the drug was also tested in six other countries, and in three of them, there was no difference between the Trizytek group and the placebo group. The drug is given as a capsule to be taken with meals and snacks.

Results for 138 patients were reported Monday, with 68 in the U.S. and 70 elsewhere.

Patients taking Trizytek also experienced better protein absorption, but carbohydrate absorption did not improve significantly.

Cowen & Co. analyst Eric Schmidt downgraded the stock to "Neutral" from "Outperform."

The improvement, he said, was not as strong as Altus management hoped. The average improvement in Trizytek patients compared to a placebo was 15.1 points, and management felt the Food and Drug Administration required a 30-point improvement.

The FDA might want more data on Trizytek before approving it for sale, he said.

Altus did not immediately return calls seeking comment. (AP)

Posted by globebusiness at 8:21 AM | Comments (0)

Mass. gas prices fall

Gas prices are continuing to fall in Massachusetts.

The latest weekly survey by AAA Southern New England finds an average price of $3.78 per gallon for self-serve, regular unleaded gasoline. That's an 11 cent drop from a week ago and marks the fifth straight week that the average price has fallen.

Massachusetts is currently one cent below the national average of $3.79 per gallon.

The latest survey found a price range of 70 cents, with the lowest price being 3.59 per gallon and the highest $4.29 per gallon. AAA urges motorists to continue shopping around for the best prices in their area. (AP)

Posted by globebusiness at 8:17 AM | Comments (0)

August 12, 2008

A Raytheon VP's suit alleges race, sex bias

A vice president of defense contractor Raytheon Co. sued the Waltham company and one of its top executives today, contending she is a victim of race and sex discrimination.

Cassandra Matthews alleges that Raytheon and her superior, chief information officer Rebecca Rhoads, subjected her to a hostile work environment for not conforming ‘‘to a meek and subservient stereotype.’’

‘‘Raytheon is proud of its record of employee relations and believes there is no merit to these claims,’’ said spokesman Jon Kasle.

Matthews, an employee of the company since March 2005, said in papers filed in US District Court in Boston that Rhoads ‘‘disrespected’’ her by canceling meetings and refusing to speak with her. She also contended that after she reported the situation to management in July 2005 and again in May 2007 her supervisors retaliated, including giving her a pay raise that trailed corporate recommendations.

The suit seeks an injunction to stop discriminatory practices and unspecified monetary damages.
(Reuters)

Posted by globebusiness at 4:15 PM | Comments (0)

Study: Most corporations pay no federal income tax

Most US and foreign companies doing business in the United States pay no federal income tax, according to a study by the Government Accountability Office.

It said two-thirds of US corporations paid no federal income taxes between 1998 and 2005, and about 68 percent of foreign companies doing business in the country avoided corporate taxes over the same period.

‘‘It’s shameful that so many corporations make big profits and pay nothing to support our country,’’ said Senator Byron Dorgan, Democrat of North Dakota, who asked for the study with Senator Carl Levin, Democrat of Michigan.

An outside tax expert, Chris Edwards of the libertarian Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called S corporations pay taxes under individual tax codes.

‘‘Half of all business income in the United States now ends up going through the individual tax code,’’ Edwards said.

The study by the GAO, the investigative arm of Congress, did not investigate why corporations weren’t paying federal income taxes or corporate taxes and it did not identify any corporations by name. It said companies may escape paying such taxes due to operating losses or because of tax credits.

More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million US companies paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of the US corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.

Dorgan and Levin have complained about companies abusing transfer prices — amounts charged on transactions between companies in a group, such as a parent and subsidiary. In some cases, multinational companies can manipulate transfer prices to shift income from higher to lower tax jurisdictions, cutting their tax liabilities.

‘‘It’s time for the big corporations to pay their fair share,’’ Dorgan said.
(AP)

Posted by globebusiness at 3:07 PM | Comments (0)

Boston chooses Bilt-Rite as developer for foreclosed properties

Boston housing officials today selected a Roxbury-based developer to renovate four three-decker properties on foreclosure-ravaged Hendry Street, the epicenter of the city's real estate crisis.

The Boston Redevelopment Authority chose Bilt-Rite Construction, Inc. to fix up the boarded-up three-family Dorchester buildings and sell them to owner occupants who would rent out the other units.

The decision is seen as a key development in Boston Mayor Thomas Menino's innovative effort to stabilize struggling neighborhoods by buying the city's "worst of the worst" foreclosed properties and reselling them to motivated developers.

The city's Foreclosure Intervention Team is working to expand the initiative into other hard-hit areas. City officials already have targeted two neighborhood Roxbury communities for intervention - one along Dacia and Quincy streets and one in the area of Langdon and Clarence streets.

The staff picked Bilt-Rite Construction out of four developers under consideration. The company has completed 35 projects since 2000, a city report said, including the construction of the Modern, a 25-unit residential building in the South End and the renovation of the Dartmouth Hotel in Roxbury.

John Sullivan, co-owner of the 26-year-old business, said he needed to work out details with the city but was eager to get started.

"We are anxious to get it going, get it moving and get it done,'' said Sullivan. "And hopefully do more of them.''
(By Jenifer B. McKim, Globe staff)

Posted by globebusiness at 1:14 PM | Comments (0)

Monotype Imaging income rises 63 percent

Text imaging technology provider Monotype Imaging Holdings Inc. of Woburn said today that its net income rose 63 percent in the second quarter, meeting analysts' estimates on a drop in interest expenses.

Income grew to $3.2 million from $2 million in the same period last year. On a per-share basis, the company recorded a profit of 9 cents compared with a year-ago loss of $4.95.

The second quarter of 2007 included a $16.5 million reduction to per-share net income available to common shareholders for accretion of convertible redeemable preferred stock.

In the latest quarter, the company's earnings were reduced by 4 cents per share because of a mainly non-cash loss of $1.2 million associated with foreign currency exchange losses and about $700,000 related to increased expenses associated with the recently completed secondary offering of its securities.

Revenue gained 12 percent to $28.8 million from $25.8 million.

On average, analysts polled by Thomson Financial expected earnings of 9 cents per share on sales of $28.3 million.

Interest expense fell to $1.9 million from $5.3 million.

Shares slid 15 cents to $12.96 in morning trading on the Nasdaq Stock Market. (AP)

Posted by globebusiness at 12:56 PM | Comments (0)

Landlord is cited in housing discrimination case

The office of Massachusetts Attorney General Martha Coakley (right) said today that it has obtained a consent judgment against a Fitchburg landlord in a housing discrimination case.

According to Coakley's office, the property owner, Farag Mohamed, discriminated against a tenant and her children by terminating her tenancy because he did not want to comply with laws requiring him to de-lead the apartment for the safety of the children.

The judgment, entered late last week in Worcester Superior Court, permanently prohibits Mohamed from discriminating against tenants or any person applying for housing and requires the landlord to pay the victim $4,000, Coakley's office said.

Coakley said in a statement, “By attempting to terminate the victim’s tenancy because she had children under the age of six and by refusing to abate lead paint after it was discovered, Mr. Mohamed violated his legal duties as a landlord.”
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:06 PM | Comments (0)

Altus hits all-time low on Trizytek trial results

Shares of Altus Pharmaceuticals Inc. plunged to an all-time low today as Wall Street reacted negatively to preliminary results from a late stage trial of its Trizytek enzymes.

Late yesterday the Cambridge company said Trizytek significantly improved fat absorption for cystic fibrosis patients who suffer from pancreatic insufficiency, a condition that leaves them unable to properly absorb nutrients from food. However, the improvement was smaller than some analysts had expected, and Altus said patients in several countries did not experience any improvement compared to a placebo.

Cystic fibrosis is a genetic disease that causes serious lung infections and digestive difficulties.

In morning trading on the Nasdaq Stock Market, Altus shares dropped $2.34, or 47.4 percent, to $2.60 and set an all-time low of $2.12. The stock began trading in January 2006, and has ranged between $14.30 and $3.65 in the past year.

The primary goal of the trial was improvement in fat absorption, which was determined using a measurement called coefficient of fat absorption. On average, the CFA of patients taking Trizytek improved 36 percent, and patients taking a placebo improved only 4 percent. Patients with severe absorption problems improved by 80 percent, compared with a 24-percent improvement for patients given the placebo.

Altus said patients in the U.S. experienced stronger results. But the drug was also tested in six other countries, and in three of them, there was no difference between the Trizytek group and the placebo group. The drug is given as a capsule to be taken with meals and snacks.

Results for 138 patients were reported Monday, with 68 in the U.S. and 70 elsewhere.

Patients taking Trizytek also experienced better protein absorption, but carbohydrate absorption did not improve significantly.

Cowen & Co. analyst Eric Schmidt downgraded the stock to "Neutral" from "Outperform."

The improvement, he said, was not as strong as Altus management hoped. The average improvement in Trizytek patients compared to a placebo was 15.1 points, and management felt the Food and Drug Administration required a 30-point improvement.

The FDA might want more data on Trizytek before approving it for sale, he said.

Altus did not immediately return calls seeking comment. (AP)

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

Gas prices fall in Massachusetts

Gasoline prices in Massachusetts fell 11 cents a gallon in the most recent survey from AAA of Southern New England.

The latest survey found that self-serve, regular unleaded gas averaged $3.78 a gallon, down from $3.89 the previous week and down from a record high of $4.08 set in the July 7 survey, AAA said.

The national average for a gallon of unleaded regular is $3.79, and a year ago, the average price for a gallon of unleaded regular in Massachusetts was $2.75, AAA said.
(By Chris Reidy, Globe staff)

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

Survey clocks Internet speeds and guess who's tops

Rhode Island may be known for PawSox baseball, four-flusher pols, and see-through chowders, but it's the place to be if you want fast Internet connections.

The Ocean State was tops for the second straight year in a survey that ranks states and US territories by real-time Internet connection speeds. Massachusetts ranked fifth, and Alaska was 51st in a survey commissioned by the Communications Workers of America, a union that represents more than 700,000 workers in such industries as telecommunications.

According to the survey, the same file that takes 30 seconds to download in Rhode Island would take more than four minutes for someone logged onto the Internet from Alaska. Other states with fast Internet connections include Delaware, New Jersey, and Virginia, the survey found.

A key finding of the survey: The United States has not made significant improvements in deploying high-speed broadband networks in the last year, and the United States continues to lag behind many other industrial countries.

Those interested in learning more details about the survey can click here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 10:41 AM | Comments (0)

Stop & Shop will stop selling certain kinds of fish

The Stop & Shop supermarket chain says it will stop selling some species of fish that are threatened by overfishing.

Stop & Shop Supermarket Co. of Quincy announced last month that it would stop buying fresh shark. Tracy Taylor, a senior buyer for the largest supermarket chain in New England, says stores also won't restock frozen Chilean sea bass and orange roughy.

Senior manager Ken Pentheny says it's the first time the company has removed fish from its inventory for conservation reasons.

Heather Tausig, director of conservation at New England Aquarium, says Stop & Shop's example could encourage other grocers to pull certain fish from their shelves.

Stop & Shop is owned by Ahold USA, a unit of Dutch company Royal Ahold NV. Royal Ahold's Giant Food chain in the U.S. will also stop selling the threatened fish. (AP)

Posted by globebusiness at 10:07 AM | Comments (0)

TJX reports solid results

TJX Cos., the Framingham operator of such off-price retail chains as T.J. Maxx and Marshalls, reported today that second-quarter sales rose 7 percent as penny-pinching consumers hunt for bargains in lower-priced stores.

Sales for the second quarter were $4.6 billion, TJX said, and net income jumped to $200 million, or 45 cents a share, from $59 million a year ago. Net income for last year's second quarter included an after-tax charge of $118 million related to the theft of customer credit and debit-card information from the company's computer systems, TJX said.

Second-quarter results this year include a $10-million after-tax impairment charge, or 2 cents per share, related to the company's troubled Bob's Stores chain. Published reports have indicated that TJX is seeking a buyer for its Bob's chain.

Excluding charges, adjusted diluted earnings per share for the second quarter were 47 cents, or a 24-percent increase over the adjusted 38 cents a share for the comparable quarter the previous year, the company said.

At stores open at least a year, a key measure of a retailer's health, sales were up 4 percent in the most recent second quarter when compared with the same period a year ago.

TJX president and chief executive Carol Meyrowitz: "We are very pleased with our second quarter performance. In a very challenging retail environment, we delivered strong sales, merchandise margins, and profit increases on top of very strong operating results last year."

Also today TJX raised its full year outlook.

For the third quarter of this year, TJX said it expects diluted earnings per share in the range of 59 to 62 cents, a 9 to 15 percent increase over 54 cents for the comparable quarter last year.

For the full fiscal year, TJX said it is raising its guidance of diluted earnings per share to a range of $2.26 to $2.31; last year, the company earned $1.66 a share, which included a charge of $119 million, or 25 cents per share, related to the computer intrusion.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:34 AM | Comments (0)

Watch out, Zipcar. Hertz may be on the prowl

Hertz, which had been testing rentals by the hour, says that it is planning to launch a major push into the car-sharing market later this year - a market in which Zipcar of Cambridge is a player.

What does this mean to you, dear travelers? The prospect of a multinational concern like Hertz getting into the business is potentially huge.

Rich Broome, senior vice president for corporate affairs and communications, wouldn’t offer much in the way of details, but said that the company would initially roll out the program in a handful of major US cities.

Boston, he said, would "probably be part of a second wave."
Broome said, “Many people think of Hertz being primarily at airports but we also have 1,600 off-airport locations in the United States, and when we roll this thing out we will have leading-edge technology in place to be able to get customers what they want where they want it.’’

For travelers the potential upside is clear. Hertz has 8,100 locations in 147 countries, so it’s not hard to imagine that eventually customers will be able to sign up in Boston, but use car-sharing services around the nation and the world. Sweet, yes?

It's also a safe bet that this will juice up competition, a good thing for consumers. Right now, the leader in the field is Zipcar, which has seen a tremendous amount of growth and currently has more than 200,000 members in 50 cities in North America as well as a presence in London.

But others will also be interested. As my pal Scott Kirsner wrote a story detailing this a few months ago, UHaul and Enterprise, noting Zipcar’s success, have been testing the car-sharing waters.

UHaul launched a pilot program, UCar Share. Cars were initially only available at certain rental centers and during regular business hours.

Mike Coleman, a program manager at UHaul, says in the next few weeks the company plans to expand the program, which is available in about 10 cities, with more cars and introduce Zipcar-like technology.

And Enterprise launched a service called WeCar in St. Louis. Enterprise public relations manager Lisa Martini says that the company is looking at expanding their program but currently have no firm plans.

Stay tuned. This is going to get interesting.
(By Paul S. Makishima, Globe staff)

Posted by globebusiness at 8:46 AM | Comments (0)

Plexus will close Ayer plant

Plexus Corp. said today that it will close its Ayer manufacturing plant and transfer work to other facilities, primarily in Neenah, Wis., where the company is headquartered.

Plexus says it expects to close the Ayer plant by March, resulting in the loss of about 170 jobs.

Chief financial officer Ginger Jones says the company expects to save $4 million to $5 million annually by closing the plant.

Plexus provides electronic manufacturing services, including mechanical, electronic, and software design. (AP)

Posted by globebusiness at 8:09 AM | Comments (0)

August 11, 2008

Arbella will be a sponsor of foundation concert

Arbella Insurance Group, through its Arbella Foundation, said today that it is a $10,000 sponsor of the Hot Stove Cool Music Summer Session, a fund-raising event for the Foundation to be Named Later.

According to its website, the foundation, a branch of the Red Sox Foundation, was launched three years ago by Paul Epstein, a social worker in the Brookline Public School system, and his brother, Theo Epstein (right), executive vice president and general manager of the Red Sox.

The mission of the Foundation to be Named Later is to raise funds and awareness for nonprofit agencies working with disadvantaged youth and their families in Greater Boston, Arbella of Quincy said.

To date, the foundation has given out almost $1 million in grants and $1 million in in-kind donations to more than 150 nonprofit groups, Arbella noted.

The Hot Stove Cool Music is scheduled to begin Aug. 17 at the Boston waterfront's Bank of America Pavilion; the biannual charity concert and musical will feature Buddy Guy (left) and George Thorogood, Arbella said.

More information about the concert can be found by clicking here.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 12:22 PM | Comments (0)

Eastern Insurance buys Kittredge Insurance

Eastern Bank said today that its Natick-based insurance subsidiary, Eastern Insurance Group, has acquired Kittredge Insurance Agency Inc., which is headquartered in Northborough.

A press release issued by Eastern did not include financial details of the transaction.

The acquisition will give Kittredge customers access to a broader range of insurance products and services, and it will also increases Eastern Insurance's customer base west of Boston, where it already has eight locations, Eastern said.

The company added that it will retain Kittredge Insurance employees and that Kittredge president Francis J. Kittredge will hold a senior executive position at Eastern Insurance.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 11:46 AM | Comments (0)

PerkinElmer partners with Mia Hamm

A subsidiary of PerkinElmer Inc., a Waltham firm that provides instruments and services to the life sciences and other industries, today unveiled a partnership with global soccer star Mia Hamm (above) and the Mia Hamm Foundation.

The partnership aims to raise awareness of the value and benefits of umbilical cord blood banking and to support the foundation's mission of supporting cord blood or bone marrow transplant patients and their families, said the PerkinElmer subsidiary, ViaCord.

Through the agreement, the company said it will provide funding to the Mia Hamm Foundation, and both parties will work together on a broader national campaign focused on education and awareness of critical issues surrounding the benefits of cord blood banking and transplants.

ViaCord noted in a press release that cord-blood is a valuable, noncontroversial source of stem cells with proven effect in treating more than 70 serious diseases, including many cancers and immunodeficiencies, and to date, more than 10,000 cord blood transplants have been performed worldwide.

When her twins were born in 2007, Hamm and her husband made the decision to save their cord blood with ViaCord, the company said.

As local baseball fans know, Hamm is married to former Red Sox shortstop Nomar Garciaparra.
(By Chris Reidy, Globe staff)

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

Inverness Medical gets USDA approval for flu test

Inverness Medical Innovations Inc., a Waltham company that makes diagnostic products, said today that the US Department of Agriculture has issued Inverness a license to make and sell its avian flu test kit for veterinary use.

The kit called BinaxNOW, gives test results within 15 minutes, compared with traditional methods which can take days. The company already has a kit for human use approved by the Food and Drug Administration.

Shares of Inverness rose 50 cents to $36.20 in morning trading on the New York Stock Exchange. (AP)

Posted by globebusiness at 10:14 AM | Comments (0)

Allegro MicroSystems cancels IPO

Allegro MicroSystems Inc., a Worcester company that makes semiconductors for the automotive industry and other markets, said today that it will not go through with its initial public offering of common stock due to current market conditions.

The company said it withdrew its registration statement for the offering that it had filed with the Securities and Exchange commission. The statement pertains to the offering of common shares that would be newly issued by Allegro and common shares held by its sole shareholder, Sanken Electric Co.

The company had initially filed for the IPO in August 2007, and was planning to list its shares on the Nasdaq Stock Market under the symbol "ALGM."

At the time, Allegro did not disclose its expected number or price range for the shares it would offer, but indicated the offering price could total up to $115 million.

Since then, "the capital markets have experienced significant deterioration, leading us to conclude that this is not the best time to conduct our initial public offering," said Allegro chief executive and president Dennis H. Fitzgerald in a statement.

Fitzgerald said the company will look at going forward with the offering "when market conditions improve." (AP)

Posted by globebusiness at 9:53 AM | Comments (0)

Staples taps Patriarca for Quill post

Staples Inc., the Framingham office supplies company, said today it has appointed Michael Patriarca as senior vice president of its Quill division, a catalog and online business unit serving small and medium-sized business customers.

In his new job, Patriarca will have overall responsibility for Quill's marketing, sales, merchandising, finance, and customer-relations functions, said Staples, which noted that Patriarca was previously vice president of merchandising at Quill.

Last month, Staples acquired Corporate Express NV, a Dutch company that delivers office supplies to large corporate customers.

A Globe story in June noted that the then-proposed $2.6 billion acquisition had the potential to shift more of the company's business mix away from selling office supplies to individuals and onto selling office supplies to business customers of all sizes.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 9:23 AM | Comments (0)

Metacafe and Quattro Wireless team up

Metacafe, a video entertainment site, has teamed up with Quattro Wireless, a Waltham-based mobile ad network, the companies said today.

"Metacafe has chosen Quattro Wireless to provide its 30 million monthly viewers access to short-form original content on the strength of its proprietary mobilization technology and its deep inventory of brand advertisers," the companies said.

Lars Albright, a Quattro Wireless vice president, added in a statement: "Metacafe's differentiated business model, fantastic content, and engaged audience have made it one of the most attractive video destinations on the Web. We are pleased to give Metacafe users a premier experience on any mobile device and match the audience with relevant, targeted, and engaging advertisements from Quattro's leading Ad Network."

Metacafe is headquartered in Palo Alto, Calif.
(By Chris Reidy, Globe staff)

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

Alnylam enters a collaboration

Alnylam Pharmaceuticals Inc., a Cambridge biotechnology company, said today it has formed a collaboration with the Max Planck Institute in Germany.

Alnylam seeks to develop novel technologies based on RNA interference, or RNAi, a naturally occurring mechanism within cells for selectively silencing and regulating specific genes. Since many diseases are caused by the inappropriate activity of specific cells, the ability to silence genes selectively through RNAi has great potential, according to Alnylam.

In a press release, Alnylam said it has "formed an exclusive research agreement with the Max Planck Institute of Molecular Cell Biology and Genetics in Dresden, Germany, to investigate and characterize the molecular mechanisms underlying intracellular transport of small interfering RNA, (siRNA), the molecules that mediate RNAi."
(By Chris Reidy, Globe staff)

Posted by globebusiness at 8:12 AM | Comments (0)

ArQule loss widens on costs

Woburn biotechnology company ArQule Inc., which focuses on cancer therapies, said today that its second-quarter loss widened on higher clinical development costs.

The company lost $16 million, or 37 cents per share, compared with a loss of $13.4 million, or 36 cents per share, during the same period a year prior. Revenue rose to $2.6 million from $2.2 million.

Analysts polled by Thomson Financial expected a loss of 39 cents per share.

ArQule gets its revenue through drug development partnerships. Costs and expenses rose to $19.3 million from $16.9 million.

Shares of ArQule closed at $3.56 Friday on the Nasdaq Stock Market.

Arqules also reaffirmed its full-year outlook today.

The company expects a loss between $1.57 and $1.68 per share in 2008, on revenue between $10 million and $10.5 million.

Analysts polled by Thomson Financial expect a 2008 loss of $1.59 per share on revenue of about $10.4 million. (AP)

Posted by globebusiness at 7:57 AM | Comments (0)

Cross plans to open Hub pen shop

A.T. Cross Co., the Rhode Island company that bills itself as "America's oldest pen manufacturer," said that it will open a new retail location this month at Boston's Prudential Center.

The company said in a press release: "The new Cross location at the Prudential Center will be a 163-feet micro shop designed with signature Cross fixtures. Hues of chocolate and silver signify the Cross brand with a combination of open-sell fixtures for convenience and glass cases to present its offerings. Situated in the Boylston Arcade wing, in front of Saks Fifth Avenue, the new Cross shop will open on August 23."

With a history of more than 160 years, the Cross brand now includes such products as "fine writing instruments, business bags for women, timepieces, cufflinks, leather accessories, wallets and money pieces, journals, and eyewear," said the company, which is headquartered in Lincoln, R.I.
(By Chris Reidy, Globe staff)

Posted by globebusiness at 7:10 AM | Comments (0)

August 8, 2008

EnerNOC ramps up forecast

EnerNOC, Inc. a Boston-based company that pays its customers to cut their energy use at times of peak demand, expects its estimated yearly revenue to total between $101 million and $107 million for 2008 -- up from previous estimates of $99 million to $105 million, the company said in a recent statement.

The company also reported a revenue of $23.7 million for the second quarter of 2008, an $11.7 million or 97.1 percent increase from the same period last year, and said it expects 2010 to be its first full year of profitability. EnerNOC said the higher estimates are, in part, the result of the enrollment of 400 new megawattts of capacity to its system from the PJM Interconnection service region, the nation's largest electricity control region.
(By Erin Ailworth, Globe staff)

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

UBS makes it official: $19b buyback deal unveiled

UBS Financial Services Inc. said today it would buy back about $19 billion in auction-rate securities from its customers, under a settlement with the New York attorney general, the Massachusetts Securities Division, other state agencies and the Securities and Exchange Commission.

Under the agreement, reported in today's Globe, the Swiss Bank would reimburse clients with less than $1 million in the investments starting Oct. 31. Clients with more than $1 million in the securities will be able to sell them back to UBS over a two-year period starting Jan. 1, 2009. The settlement comes on top of $3.5 billion in investments that UBS previously has offered to buy back, for a total of more than $22 billion it will help customers exit.

UBS said those customers hold a total of $8.3 billion in auction-rate securities. The firm said it will buy back up to an additional $10.3 billion of the investments from corporate and other institutional clients -- but some could have to wait until June 2010. UBS said it would make no-cost loans to customers starting in September.

The company also will pay $150 million in fines; $75 million of which will go to New York. Massachusetts and other state agencies will split the rest.

The full cost of the proposed settlement is estimated to be about $900 million on a pre-tax basis, to be booked in the second quarter results. That includes reimbursements to all clients for losses incurred from sales of auction-rate securities between Feb. 13 and Aug. 8, 2008.

The auction-rate securities market froze in February, amid wider problems in the credit markets and as Wall Street firms that had handled the trading of the investments stopped doing so. As a result, individual and large investors have more than $200 billion trapped in the investments across the country, an ordeal that has spurred a nationwide regulatory probe of the industry.

This settlement is in response to fraud charges brought against UBS by Massachusetts and New York regulators. Massachusetts Secretary of State William F. Galvin, who oversees the Securities Division, had alleged that UBS executives knew the auction-rate market was collapsing and yet did not tell its brokers and did not warn individual investors. UBS executives also were dumping the investments, even as they continued to push them on customers, according to complaints filed by Galvin's office and by the New York attorney general, Andrew Cuomo.

“Today’s solution provides further relief, beginning in September, to investors who have been understandably frustrated by the industry-wide failure" of the auction-rate market, said Marten Hoekstra, head of UBS Wealth Management Americas.

Cuomo, in a press conference today, said, "I'm heartened by the fact i think the industry finally gets it." He added, "This is an intolerable situation."
(By Beth Healy, Globe staff)

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

Mass. official plans serious charges against Merrill

Charges by Massachusetts against Merrill Lynch & Co Inc are more serious than those against Swiss bank UBS because they involved the manipulation of research of auction-rate securities, the state's top securities regulator said today.

Massachusetts Secretary of State William Galvin added that he would proceed "fully" with the state's complaint that charges Merrill with fraud and "dishonest and unethical" conduct despite Merrill's plan announced Thursday to buy back its auction-rate securities.

"In Merrill's case, it's as serious and in a sense more serious because there was a clear effort at manipulation of research which is even a greater issue than the misleading sales of these auction rate securities instruments," he told Reuters in a telephone interview.
(Reuters)

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

New deadline set in Verizon contract talks

The deadline for Verizon Communications and thousands of the company's unionized employees to reach a new contract agreement has been re-set for 12:01 a.m., August 11. Without an agreement by then, workers could go on strike, union officials said today.

Last Saturday, a 5-year contract covering union members with the International Brotherhood of Electrical Workers and the Communications Workers of America who work on Verizon's landlines was temporarily extended to continue negotiations.

Verizon, based in New York, has about 65,000 unionized employees nationwide, including more than 9,000 in New England.

Union spokesman Rand Wilson said "the two unions have been making slow progress." Critical issues, according to union officials, include healthcare and retirement security, and wages.

Verizon officials could not immediately be reached for comment.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 2:00 PM | Comments (0)

Staples shares climb after positive analyst note

Shares of Staples Inc. climbed today as an analyst said the office supply chain will likely remain a sector leader.

Deutsche Bank analyst Mike Baker told investors in a research note that the Framingham, Mass.-based company should fare better than its competitors and report second-quarter earnings in line with expectations when it presents results next month.

Analysts surveyed by Thomson Financial expect a profit of 25 cents per share on revenue of $4.5 billion.

Meanwhile, the world's largest office supplier is scheduled to hold a conference call with investors Aug. 19 to offer an update on its acquisition of Dutch office supply chain Corporate Express NV.

"We believe these events will show (Staples) as the leader in the space, generating share gains and margin improvements, helped by Corporate Express accretion," Baker wrote. "These themes underpin our Buy rating."

Staples shares climbed 80 cents, or 3.4 percent, to $24.07 in midday trading today.

Its shares have a 52-week range of $19.69 to $25.85. (AP)

Posted by globebusiness at 12:18 PM | Comments (0)

Beacon Roofing profit up nearly 60 percent

Beacon Roofing Supply Inc. said today that its fiscal third-quarter profit jumped nearly 60 percent as it passed along price hikes, held down costs of some goods and sold more high-margin residential roofing products, all of which offset sharply higher fuel costs.

For the three months ended June 30, net income jumped to $18.3 million, or 41 cents per share, compared with $11.5 million, or 26 cents per share, in the year-earlier quarter.

Analysts polled by Thomson Financial expected earnings per share of 31 cents.

Revenue climbed 6 percent to $514.6 million from $484.9 million, topping analysts' estimate of $480.3 million.

Beacon said in a statement that the quarter's improvement stemmed mostly from its ability to pass through increases in residential shingle prices as they were announced by vendors.

"However, cost of goods sold did not increase at the same time or rate due to favorable buying programs and the lower-cost inventory on hand before the price increases."

Additionally, there was a 13 percent increase of higher-margin residential roofing products in Beacon's sales mix.

Chief Executive Robert Buck, in a statement, said he is seeing "growth in residential roofing sales after a prolonged period of softness in that market."

Shares of Beacon Roofing rose 84 cents, or 6.2 percent, to $14.38 in morning trading. The stock earlier hit a new year high of $15.35. It has ranged between $6.70 and $14.96 over the past year. (AP)

Posted by globebusiness at 11:04 AM | Comments (0)

Analogic completes restructuring initiatives

Analogic Corp. said today that it completed its restructuring initiatives on July 31 and expects its cost structure to be lowered.

The medical and security imaging equipment maker reorganized its engineering staff, reduced its workforce and instituted a voluntary retirement program for its U.S. personnel.

The restructuring will result in a one-time charge of about $4 million in the fourth quarter. The company expects to save at least $5 million annually.

About 40 employees were laid off.

The company will also amortize intangible assets and inventory fair value adjustments related to its recent acquisition of Copley Controls Corp., which makes parts for MRI machines. Analogic said it would record a $3.1 million charge in the fourth quarter, a $1.6 million charge in the first quarter of the 2009 fiscal year and an ongoing charge of about $700,000 in following quarters.

Analysts polled by Thomson Financial, on average, forecast earnings of 65 cents per share on sales of $121.5 million in the fiscal fourth quarter ending July 31.

Shares added $1.33 to $72.83 in morning trading. The stock has ranged from $50 to $79.02 in the last 52 weeks. (AP)

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

A123 Systems files for IPO

A123 Systems Inc. filed a registration statement with the Securities and Exchange Commission relating to the proposed initial public offering of its common stock, the Watertown maker of high-efficiency batteries said today.

The registration statement, though filed, has not yet become effective, the company said. (By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:53 AM | Comments (0)

Archemix grants rights to Japanese firm

Archemix Corp., a Cambridge biotechnology company, has granted a Japanese bio-venture company intellectual property rights in developing aptamers, short nucleic acid sequences.

The agreement with Tokyo-based Ribomic Inc. will give Archemix an upfront payment of $6 million. Ribomic has the option to convert the licenses from nonexclusive to exclusive on a target-by-target basis, upon payment of an added fee. If this happens, Archemix could receive milestone payments and a royalty on any marketed products developed under the agreement. The total milestone payments could exceed $200 million. Other terms of the deal were not released. Aptamers are therapeutic agents that may help treat a variety of human diseases, according to Archemix.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:49 AM | Comments (0)

Reebok launches Monopoly-themed sneaker

Two New England companies have collaborated on an unlikely fashion mash-up: Monopoly and sneakers.

Canton-based Reebok and Rhode Island toymaker Hasbro Inc. are launching a Monopoly-inspired footwear collection featuring a variety of styles based on the Monopoly game. Monopoly dice, tokens, cards, houses and hotels, and the Monopoly money inspired the details for the laces, prints, colors and overall design of the shoes, the company said.

"Monopoly has global recognition as one of the most iconic board games of all time, and Reebok is excited to be able to translate this fun into footwear," said Christian Stegmaier, Reebok's head of lifestyle product marketing.

The line will debut worldwide in late August with a suggested retail price range of $40 for toddler sizes and $75 to $85 for women's and men's sizes. The second wave of the collection is scheduled to launch in November 2008.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 8:23 AM | Comments (1)

Sapient posts higher 2Q profit

Technology consulting company Sapient Corp. said Thursday its second-quarter profit and revenue jumped sharply, beating Wall Street's expectations.

The company earned $11.6 million, or 9 cents per share, up from $847,000, or 1 cent per share, in the same period a year earlier. Adjusted earnings, which exclude stock options costs and other items, were 13 cents per share in the latest quarter.

Revenue rose 28 percent to $170.3 million from $133.1 million.

Analysts, on average, were expecting a profit of 6 cents per share on revenue of $158.4 million, according to a poll by Thomson Financial. The estimates include stock options costs.

Shares rose 71 cents, or 10 percent, to $7.78 in after-hours electronic trading. The stock had closed down a penny at $7.07. (AP)

Posted by globebusiness at 8:16 AM | Comments (0)

August 7, 2008

Former Biopure exec to pay $150,000 penalty

A former Biopure Corp. executive, Howard Richman, agreed to pay a $150,000 penalty to settle allegations that he misled investors about the Cambridge biotechnology company's efforts to obtain approval for its synthetic blood product, Hemopure.

Richman, Biopure's former head of regulatory affairs, will also be permanently barred from serving as an officer or director of any public company under the final judgment entered into US District Court in Boston.

The pact resolves a 2005 lawsuit by the Securities and Exchange Commission that accused Richman, 56, and two other Biopure executives of telling investors it was making progress toward gaining federal approval for Hemopure, while hiding the fact that the Food and Drug Administration barred Biopure from proceeding with clinical trials because of safety concerns.

The SEC has already struck deals with the two other Biopure executives who were sued. Former Biopure chief executive Thomas Moore agreed to a $120,000 penalty, while the company's general counsel, Jane Kober, agreed to pay $40,000.

Separately, the SEC also settled a separate case with a fourth Biopure executive in 2006. Carl Rausch, a former senior technology officer of the company, agreed to pay a $40,000 civil penalty.

"When public biotech companies make representations about the FDA approval process, their executives must ensure that those statements are complete and accurate so investors are not misled,” said David Bergers, director of the SEC's Boston office.
(By Todd Wallack, Globe staff)

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

Winthrop Realty Trust reports loss

Winthrop Realty Trust said today that it swung to a loss in the second quarter but did increase the cash it has available for investment.

The real estate investment trust reported a loss of $24.1 million, or 33 cents per share, compared with net income of $12.8 million, or 16 cents per share, in last year's second quarter.

The company attributed most of the loss to $50.4 million impairment charge recognized by Concord Debt Holdings LLC, a venture between Winthrop Realty Trust and Lexington Realty Trust, relating to its bond portfolio.

The company said Aug. 1 that it took the charge due to concerns with bond market conditions and "its view of the absence of any near or midterm recovery in that market, as well as a review of the performance and quality of the underlying loan collateral."

Winthrop did report an increase in cash from $141.3 million on June 30 to $225 million on Wednesday. That includes a $70 million draw on a line of credit in July and $37 million from a rights offering in May.

The company also said that Lex-Win Acquisition LLC, of which Winthrop holds 28 percent interest, sold its shares in Piedmont Office Realty for $32.3 million, or $8.31 per share.

"With our increased cash position and the other transactions we have undertaken thus far this year, we continue to believe we are well positioned in this very challenging environment to capitalize on future investment opportunities," said Chief Executive Michael L. Ashner.

Shares slid 20 cents, or 4.7 percent, to $4.07 in midday trading. (AP)

Posted by globebusiness at 12:39 PM | Comments (0)

Covidien buys CardioDigital monitoring technology

Medical device and diversified health care company Covidien Ltd. said today that it bought monitoring technology from CardioDigital Inc. for an undisclosed amount.

Covidien, wihch is based in Mansfield, said it purchased signal processing technology that could be used to add new monitoring capabilities to its Nellcor pulse oximetry platform. A spokesman for Covidien declined to detail the potential functions.

Pulse oximeters are sensors that monitor oxygen in the bloodstream. Instead of drawing blood, oximeters are placed on the ear or fingertip.

Covidien said the technology will be used by its Respiratory and Monitoring Solutions business.

CardioDigital is based in Portland, Ore., and is a unit of Scotland-based CardioDigital Ltd.

In morning trading, Covidien shares gained 8 cents to $51.50. (AP)

Posted by globebusiness at 12:05 PM | Comments (0)

Mass. says Morgan Stanley to reimburse $1.5 million

Massachusetts authorities said today that Morgan Stanley has agreed to pay $1.5 million to reimburse investments in auction-rate securities by the cities of New Bedford and Hopkinton.

"We appreciate Morgan's cooperation and are pleased that it has agreed to perform this thorough review of all its city and town clients in the Commonwealth in order to determine whether additional reimbursements are appropriate," said Massachusetts Attorney General Martha Coakley in a statement. (Reuters)

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

James Pallotta leaving Tudor Investment

Boston money manager James Pallotta, who invested billions in stocks for hedge fund firm Tudor Investment Corp., is leaving to start his own firm.

Pallotta joined Tudor 15 years ago and is best known as manager of the firm's $5 billion Raptor Global Fund. He also manages Tudor's smaller Altar Rock funds and part of the firm's main BVI Global Fund Ltd. Pallotta plans to leave Tudor Investment Corp. Jan. 1 but his new firm will continue to manage the same funds for Tudor.

"Tudor will support Jim in the creation of his new fund and anticipates that it will invest capital in new funds Jim launches," the firm said in a letter to clients yesterday. The new firm will focus initially on public equity management and, over time, will build a mix of opportunistic investment ventures in the public and private investment space." The letter was signed by Pallotta, Tudor chairman Paul Tudor Jones and president Mark Dalton.

Pallotta, among Boston's best known hedge fund managers, opened the Raptor fund 15 years ago and has earned an average of 16 percent annually since then, outperforming the broader stock market by a wide margin. But Raptor has struggled in the last year as the stock market sunk. The firm has dropped 21 percent since May 2007, according to Bloomberg News.
(By Steven Syre, Globe staff)

Posted by globebusiness at 10:23 AM | Comments (0)

Ariad's loss widens; COO resigns

Drug developer Ariad Pharmaceuticals Inc. said today that its second-quarter loss widened slightly on higher research and development costs.

The company lost $17.3 million, or 25 cents per share, compared with a loss of $17 million, or 25 cents per share, during the same period last year. Revenue rose to $1.5 million from $189,000, mainly from the company's collaboration with Merck & Co. on the potential cancer treatment deforolimus.

Analysts polled by Thomson Financial expected a loss of 27 cents per share on revenue of just under $2.8 million.

"In the second quarter of 2008, we made important progress in expanding and advancing our clinical programs, and we are executing well in all areas of our business," Chairman and Chief Executive Harvey J. Berger said in a statement.

Operating expenses rose 8 percent to $18.9 million during the quarter.

Separately, Ariad said that Senior Vice President and Chief Operating Officer Richard W. Pascoe resigned to take a position elsewhere.

Pascoe resigned, effective Friday, to accept the chief executive position at a specialty pharmaceutical company focused on psychiatric and neurological diseases.

Meanwhile, Ariad said it promoted Matthew E. Ros, the current vice president of oncology marketing, to the new position of vice president of commercial operations.

It also appointed Maria E. Cantor to the new position of vice president of corporate communications and investor relations. She recently worked as senior director of corporate communications at Genzyme Corp.

Shares of Ariad rose 3 cents to $3.16 in morning trading. (AP)

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

Boston area income rose 6 percent in 2007

Personal income rose more than 6 percent in metropolitan Boston last year, growing faster than income nationally, the Commerce Department reported.

Boston's per capita, or per person, income rose to $53,763 from $50,542 in 2006, a 6.4 percent increase. Nationally, income rose 5.2 percent.

The Boston area has the seventh highest income among 363 US metropolitan areas, nearly 40 percent higher than the national per capita income, which is just under $39,000, the Commerce Department said.

The Stamford, Conn. area, home to many Wall Street executives and investment fund managers, had the nation's highest per capital income last year, $80,192, up 8 percent from 2006. The Naples, Fla. area ranked second, with per capital income of $61,788, up 7.6 percent from the previous 2006.
(By Robert Gavin, Globe staff)

Posted by globebusiness at 10:05 AM | Comments (0)

Quattro builds Patriots wireless site

Quattro Wireless is kicking off a new mobile site with the New England Patriots to bring football fans real-time game updates, the Waltham company said today.

Quattro's expanded relationship with the NFL will launch for the 2008 season. The site will provide in-depth Patriots content including breaking news, podcasts, team updates, rosters, schedules, and a photo gallery. NFL mobile, powered by Quattro, will also be included. The Quattro technology allows the site to be updated frequently with real-time game statistics and handle high traffic on game days.

To access the site, fans will go to www.patriots.mobi on their mobile phone browser.

(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:24 AM | Comments (0)

Nuance upgrades speech recognition software

Nuance Communications Inc. unveiled a new release of its speech recognition software, the Burlington company said today.

Dragon NaturallySpeaking 10 software allows people to write documents and emails, search the Internet, and control their computer entirely by voice, the company said. The new software is immediately available on the company's Web site and at software retailers.

The new software is nearly twice as fast as the previous release and delivers up to 99 percent accuracy with zero spelling mistakes, the company said. Software improvements make this version more than 20 percent more accurate than the previous version. Nuance said that most people talk about 120 words a minute but type fewer than 40 words. The new software allows users to create documents about three times faster than typing, according to the company.

The software is certified for hands-free use for those with disabilities or carpal tunnel syndrome.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:12 AM | Comments (0)

TJX reports sales gain, raises outlook

The TJX Cos. said today that same-store sales rose 3 percent in July, just short of what analysts were expecting.

Analysts polled by Thomson Financial, on average, expected same-store sales to rise 3.3 percent. The company said the results met its own expectations.

Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.

Total sales for the four-week period ended Aug. 2 rose 6 percent to $1.4 billion from $1.3 billion last year.

Year-to-date, total sales rose 7 percent to $9 billion.

TJX Cos. also raised its fiscal second-quarter outlook today, but also added an expected impairment charge.

The company expects earnings of 44 cents to 45 cents per share, including an impairment charge of 2 cents per share related to Bob's Stores. That matches the previous outlook, but previous forecast did not include the charge. (AP)

Posted by globebusiness at 9:03 AM | Comments (0)

BJ's July sales jump 16.7 percent

Warehouse club operator BJ's Wholesale Club Inc. said today that its July sales at stores open at least a year, or same-store sales, rose 16.7 percent, with gasoline sales contributing 9.7 percent of the increase.

Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones. In July 2007, same-store sales rose just 1.5 percent.

Analysts polled by Thomson Financial had expected a 12.9 percent jump.

BJ's said same-store sales increased the most during July at its Southeast and Upstate New York stores, with metro New York and New England having the lowest sales gains.

BJ's also said food sales rose 10 percent, driven by strong sales of perishable foods and consumables.

Total sales for the month rose 18.9 percent to $773.2 million from $650.5 million in July 2007.

For the fiscal second quarter ended Aug. 2, same-store-sales rose 3.7 percent while total sales rose 17.9 percent to $2.65 billion.

The company currently operates 178 BJ's Wholesale clubs in 16 states. (AP)

Posted by globebusiness at 8:41 AM | Comments (0)

The Talbots affirms 2008 earnings outlook

Apparel retailer The Talbots Inc. today reaffirmed its outlook for fiscal 2008 but said it remains cautious about the retail sector.

Hingham, Mass.-based Talbots continues to expect earnings between 47 cents and 52 cents per share for fiscal 2008, excluding Talbots Kids, Men's and U.K. results and closedown costs.

Analysts polled by Thomson Financial, on average, predict a profit of 45 cents per share. Analysts typically exclude one-time charges.

It expects a loss from noncore operations of about 59 cents to 64 cents per share, for a total loss of about 7 cents to 17 cents per share.

The company expects to complete closing its Talbots Kids, Men's and U.K. business in the third quarter.

"We remain cautious about the retail sector given the continued uncertainty in the macroeconomic environment and the consumer's judicious purchasing behavior," said Trudy F. Sullivan, president and chief executive. "While we are maintaining our previously announced outlook for the full year 2008 earnings, we will continue to closely monitor our performance and the macro environment." (AP)

Posted by globebusiness at 8:40 AM | Comments (0)

Caliper maintains 2008 revenue guidance

Caliper Life Sciences Inc., which makes software used for drug development, maintained its full-year 2008 guidance Wednesday, despite reporting a wider loss for the second quarter.

The company said it still expects full-year revenue between $142 million and $148 million.

Analysts polled by Thomson Financial expect revenue of $145.6 million.

The company reported Wednesday its second-quarter loss widened to $6.7 million, or 14 cents per share, from $6.3 million, or 13 cents per share.

Chief Executive Kevin Hrusovsky said he expects the company's imaging and discovery product lines to bolster growth in the next two quarters.

"Additionally, we plan to further focus our resources in the second half to improve gross margins and operating efficiencies," he said in a statement.

Shares of Caliper fell 5 cents Wednesday to $3.79 in after-hours trading. (AP)

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

Alnylam loss edges higher on research costs

Biotechnology company Alnylam Pharmaceuticals Inc. said today that its second-quarter loss increased slightly, as rising expenses canceled out improved revenue from collaborations.

Alnylam, which is developing drugs designed to fight diseases by turning off the genes that cause them, lost $12.8 million in the second quarter, compared to $12.7 million a year ago. On a per-share basis, the loss decreased to 31 cents from 34 cents because the company now has a larger share count.

Revenue from collaborations more than doubled to $23.8 million, from $9.1 million a year ago. Most of the revenue came from a partnership with Swiss drug maker Roche Holding AG of Switzerland. Its other partners include Novartis AG, Biogen Idec Inc., the National Institutes of Health, the U.S. Department of Defense and Takeda Pharmaceutical Co. of Japan.

On average, analysts expected Alnylam to post a smaller loss of 15 cents per share on $22.5 million in revenue.

For the three months ended June 30, research and development costs climbed 57 percent, to $29.6 million from $18.8 million. Part of the increase came from a $5 million license payment to Isis Pharmaceuticals Inc., which has a joint venture with Alnylam called Regulus Therapeutics LLC.

General and administrative costs rose to $7.1 million from $5.3 million.

The company boosted its cash forecast for the year, saying it now expects to finish 2008 with about $500 million in cash and cash equivalents, up from $390 million. The increase was due to payments from new research partnerships.

Alnylam said it expects to ask the Food and Drug Administration to approve its lead drug candidate, designated ALN-VSP, in 2008. The drug is designed to treat liver cancer using RNA interference technology. The company is also enrolling patients in a trial of ALN-RSV01, a drug candidate designed to treat respiratory syncytial virus. (AP)

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

August 6, 2008

Heating oil drops 41 cents a gallon

The average retail price of home heating oil in Massachusetts has dropped 41 cents a gallon since last month, to $4.30, according to the latest survey by the state Department of Energy Resources.

The department in July logged home heating oil at average price of $4.71 a gallon.
(By Erin Ailworth, Globe staff)

Posted by globebusiness at 5:09 PM | Comments (0)

One Laptop expands in Asia

One Laptop per Child, a Cambridge nonprofit organization, is strengthening its presence in Asia, the company said Monday.

The organization appointed Anthony Wong as president of OLPC China and Satish Jha as president of OLPC India.

"With 40 percent of the world's children located in China and India, these two countries are obviously important targets for OLPC," said Nicholas Negroponte, founder and chairman of One Laptop per Child, which sells its XO laptops mainly to governments in developing countries where they are given free to children.

For his whole career, Wong has worked in the Hong Kong government, including as commissioner for innovation and technology. Jha has held executive positions at pharmaceutical companies and a consulting firm.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 5:01 PM | Comments (0)

Under Armour store opens in Natick

The first Under Armour speciality-retail store in New England opens at the Natick Collection Mall tomorrow.

"Boston is one of the great sports towns in America and also the home of great colleges and universities," said Chris Hufnagel, vice president of retail. "We think it's going to be a fantastic market for Under Armour."

As part of the opening festivities, professional trainer Todd Durkin will be in the store on Saturday, conducting training clinics for kids. Pre-registration for this free event is available on the company's Web site.

Athletic performance apparel, footwear, and accessories are all available at the brand store. Customers will encounter a stadium-like tunnel as they enter the store, which is a "physical manifestation of Under Armor," Hufnagel said, adding that customers will be "completely immersed in the brand." With heating dressing room floors and a touch-screen kiosk displaying performance training information, the store delivers a comfortable and educational experience, Hufnagel said.

The brand has other speciality-retail store locations in Annapolis and Aurora, Ill. and plans to expand further in the next couple years.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 4:53 PM | Comments (0)

Painting firm to pay $60,000 after wage violations

A Peabody painting company and its owner have agreed to pay $60,000 in restitution and penalties for multiple wage violations, the Massachusetts attorney general’s office said today.

Olympic Painting and Roofing Co. pleaded guilty to failing to obtain workers compensation insurance for its employees, a criminal charge. For that, it will pay a fine of $1,000 and can’t do any work for the state for three years.

On the civil side of the case, George Vasiliades, 44, of Ipswich, and Olympic agreed to pay more than $48,700 to 69 employees and nearly $10,300 in penalties.

The violations included misclassification of workers as independent contractors, failure to properly pay workers, and failure to pay overtime wages.

The attorney general’s office began investigating after a complaint was filed in October 2005.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 3:21 PM | Comments (0)

Gillette's Devens plant closing, 215 Boston jobs cut

Procter & Gamble Co. said today that it will close the second of its two Gillette packaging plants in Devens by the end of 2010 and trim 215 jobs at its manufacturing plant in South Boston.

The Devens facility -- which packages razors and other hygiene products -- uses about 400 independent contractors daily, but temporary help sometimes boosts that to 800. P&G contracts the jobs through a third party employer, SONOCO.

The job cuts at South Boston represents about 9 percent of the 2,400 Massachusetts workers employed by P&G. Fifty to 60 employees will be transferred to a P&G plant in Andover, but most of the operations are being moved to Mexico and Poland.

The Andover plant, which manufactures aerosols and shave care products, will add packing and warehousing operations once the second Devens factory closes.

In 2006, the company closed its first Gillette factory in Devens, a year after it bought the razor company for $53 billion. The plants at Devens, formerly a military base, were criticized by labor groups that alleged the company used temporary workers instead of making permanent hires.

"All of these moves are critical to the future success of the blades and razor business," said Kelly Vanasse, a P&G spokeswoman. "These changes make us able to better serve the needs of the regions where these products are going to be sold and also bring some cost efficiencies."

Vanasse said the job cuts in South Boston are the result of shifting the manufacturing of its older shaving systems -- like Mach3 and some Venus products -- to P&G sites in Poland and a newly built facility in Mexico. The South Boston site will serve as the home for new shaving technologies, like Fusion and Venus Embrace, she said.

The Gillette facility in Mexico will take over the majority of the packaging and warehouse operations from the Devens plant . The remaining operations will be shifted to Mexico in 2010, when P&G's lease expires in Devens and the plant will officially be closed, the company said.

(By Angel Jennings, Globe correspondent, and Jenn Abelson, Globe staff)

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

Spire lands Chinese contract

Spire Corp., a Bedford maker of solar, biomedical, and optoelectronic products, won a contract for the factory expansion of a Chinese manufacturer, the company announced today.

Spire will provide machines to aid ChengDu Tianwei New Energy PV Module Co. Ltd. in the production of solar cells. Terms of the deal were not disclosed.
(By Elizabeth Campbell, Globe correspondent)

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

Mass. pension fund fires Legg, 4 others

Massachusetts' $50.6 billion pension fund today fired Legg Mason Capital Management, a Legg Mason Inc unit run by fund manager Bill Miller, and four other fund firms from managing a $1.8 billion U.S. stocks portfolio due to poor performance.

The pension fund, at a board meeting, approved transferring about $1.4 billion of the $1.8 billion portfolio to asset manager State Street Global Advisors, a unit of State Street Corp.

Separately, it also approved the transfer of a $300 million inflation-linked bonds mandate to BlackRock Inc.

The four other fund firms whose mandates to manage U.S. stocks were terminated by the pension fund are Ariel Investments, NWQ, Mazama Capital Management and Gardner Lewis. (Reuters)

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

Charles River buys German firm, raises outlook

Charles River Laboratories International Inc. raised its full-year profit outlook late Tuesday, as demand for drug development services remains strong.

Charles River, which does contracted clinical research for pharmaceutical companies, now expects 2008 profit between $2.94 and $3 per share, excluding charges, up from prior guidance of $2.87 to $2.97 per share. Analysts polled by Thomson Financial expect profit of $2.97 per share.

Revenue is now expected to rise by 12 percent to 14 percent, up from a prior range of 10 percent to 13 percent. The guidance implies a range of $1.38 billion to $1.4 billion. Analysts expect revenue of $1.38 billion.

Separately, Charles River said it is buying privately held NewLab BioQuality AG for $53 million in a move that will help expand the company's clinical service offerings. Germany-based NewLab's 2008 revenue is expected to range from $20 million to $23 million.

The cash buyout is expected to close during the third quarter and will be neutral to earnings per share in 2008.

Shares fell $2.27, or 3.4 percent, to $64.36 in midday trading Wednesday as investors expressed disappointment over weaker-than-expected preclinical service revenue during the second-quarter. Still, the company topped profit and overall revenue expectations. (AP)

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

CombinatoRx loss grows on higher research costs

Biotech drug developer CombinatoRx Inc. said its second-quarter loss widened as the company spent more money to develop its drug candidates Synavive and CRx-401 and revenue decreased.

For the quarter, CombinatoRx lost $17.6 million, or 51 cents per share, compared with a loss of $10.5 million, or 36 cents per share a year earlier. The company's revenue fell to $3.4 million from $5.3 million, and research and development costs rose to $17.5 million from $12.7 million.

On average, analysts were expecting a loss of 44 cents per share and $4 million in revenue, according to Thomson Financial.

CombinatoRx is a development-stage company and does not have any products on the market. Its revenue comes from payments by development partners, and CombinatoRx said several one-time payments increased its revenue in last year's second quarter.

Those included the extension of its development partnership with medical device maker Angiotech Pharmaceuticals Inc. and a payment from Fovea Pharmaceuticals SA.

For the full year, CombinatoRx maintained a forecast of $15 million to $20 million in revenue. Analysts expect $16.4 million.

The company's most advanced drug candidate is Synavive, which is being tested as a treatment for osteoarthritis of the knee. CombinatoRx said it has completed enrollment in a midstage clinical trial, and plans to release data in October.

CombinatoRx is also conducting clinical tests of CRx-401, a treatment for type 2 diabetes, and two drug candidates designed to treat skin conditions.

In morning trading, its shares rose 3 cents to $4.33. (AP)

Posted by globebusiness at 11:54 AM | Comments (0)

LoJack profit falls on auto industry woes

LoJack Corp., which makes vehicle-tracking devices, said today that its second-quarter profit plummeted 85 percent on a drop in sales stemming from a weak U.S. automotive market.

LoJack earned $1 million, or 6 cents per share, compared with $6.7 million, or 35 cents per share, for the same quarter last year.

Revenue dropped 12 percent to $51.4 million from $58.2 million in the year-ago period.

The results fell short of Wall Street predictions. Analysts polled by Thomson Financial expected a profit of 17 cents per share on $52.5 million in revenue.

Domestic revenue dropped 20 percent to $32.6 million on a 16 percent decline in unit volume, while international revenue rose 7.3 percent to $13.3 million on a 7 percent increase in unit volume, LoJack said.

The company blamed the drop in domestic sales on the ongoing steep decline in U.S. vehicle production and sales, adding that it is working to better align its business with the changing automotive market.

LoJack shares fell 11 cents to $5.87 in morning trading. (AP)

Posted by globebusiness at 11:49 AM | Comments (0)

DynaTrace Software raises $12.9 million

DynaTrace Software, a Boston-based software company, has raised $12.9 million in funding, the company announced today.

The financing led by Bay Partners, joined by original investor Bain Capital Ventures, will be used to expand sales, marketing, and other business development activities, the company said.

"This investment validates our early success, and enables us to accelerate our market leadership," said DynaTrace CEO Bernd Greifeneder.

DynaTrace Says its software allows IT personnel to better see and understand where and why performance issues exist.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 10:58 AM | Comments (0)

Hedge swindler wants to plead guilty for fleeing

The hedge-fund swindler who faked his suicide rather than report for his 20-year prison term in Massachusetts tried to plead guilty today for going on the lam, but a federal magistrate wouldn't let him.

Samuel Israel III's guilty plea was likely to be accepted eventually, possibly later today, and it will mean as much as 10 more years added to the sentence he received for fleecing investors of nearly half a billion dollars.

Israel, 49, said "Guilty" this morning when Magistrate Judge Lisa Margaret Smith asked him how he pleaded to a charge of failure to surrender. But the magistrate said, "It has to be `Not guilty' at this point," apparently because some federal judges prefer not to have the magistrate judge accept guilty pleas.

The case was then assigned to Judge Kenneth Karas, and Smith said, "Judge Karas is taking his own guilty pleas at this time." An afternoon session with Karas was then scheduled.

On June 9, the day he was supposed to report to a federal prison hospital in Ayer, Mass., Israel left his SUV on a bridge north of New York City with the words "Suicide is Painless" etched into the dust on the hood.

He then took off in an RV and apparently spent the next few weeks at a Granville, Mass., campground while police and federal agents, not fooled by the fake suicide, searched for him. While he was missing, his girlfriend, Debra Ryan, was arrested and charged with aiding and abetting his failure to surrender. Her case is pending.

On July 2, Israel drove up to a police station in Southwick, Mass., on a motor scooter and surrendered. He was returned to Manhattan, and the next day a furious judge ordered him to forfeit his $500,000 bail.

Israel said he had tried to commit suicide for real after becoming a fugitive but it didn't work "and I realized God didn't want me to do that and I turned myself in." (AP)

Posted by globebusiness at 10:55 AM | Comments (0)

Survey: 3.9 percent raises planned for Bostonians

Boston area employers plan to offer average pay increases of 3.9 percent next year as will employers in the US and Canada, according to the annual WorldatWork salary budget survey. Both increases matches the actual increases in 2008.

The survey results show pay budgets growing steadily from 2008 to 2009 across all employee categories, regions, and industries. Washington, D.C. reported a 4.0 percent increase, the highest US 2008 salary budget increase. On the low end, employers in Cincinnati, Detroit, Minneapolis, Pittsburgh and St. Louis reported an average pay budget increase of 3.7 percent. Nine out of ten employees in the US and Canada can expect to receive base pay increases this year.

More than 2,700 organizations, representing 13.6 million North Americans, were surveyed. The survey data, collected in April 2008, has a 3 percent margin of error.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 10:27 AM | Comments (0)

Ariad to receive $2.5 million from partner Merck

Ariad Pharmaceuticals Inc. said today that it will receive a $2.5 million payment from partner Merck & Co. for moving a cancer drug into midstage clinical trials.

The drug, called deforolimus, is being studied in various stages as a treatment for a range of cancers. Ariad is a development-stage company and relies mainly on partnerships for its revenue, which reached $3.6 million in 2007.

The $2.5 million payment comes as Ariad moves an oral version of the drug candidate into Phase II studies as a endometrial cancer therapy, which affects the lining of the uterus.

The goal of the study will be progression-free survival, or the amount of time a patient survives without the cancer progressing. It will involve 150 patients spread throughout 50 sites in North America, Europe, Asia, and Australia.

Shares of Ariad closed at $2.97 Tuesday, while shares of Whitehouse Station, N.J.-based Merck closed at $34.70. (AP)

Posted by globebusiness at 10:25 AM | Comments (0)

American Superconductor gets Turkish contract

American Superconductor Corp. said today that it had licensed a wind turbine design to Turkish manufacturer Model Enerji Ltd.

Model Enerji plans to begin mass production of the 1.65-megawatt turbine at the end of 2009. In addition to an upfront license fee, Devens-based AMSC will receive a royalty payment for the first 425 turbines. It didn't disclose the value of the contract.

In premarket trading today, AMSC shares were up 38 cents, or 1.2 percent, at $31.31. (AP)

Posted by globebusiness at 10:21 AM | Comments (0)

Veveo extends partnership with Verizon

Veveo, an Andover technology company, is extending its partnership with Verizon to provide search and discovery options to Verizon's more than 1.2 million FiOS TV customers, the Andover-based company said today.

Veveo delivered more than 170 million video searches to FiOS TV customers in June alone, the company said. FiOS service is intended to offer a better quality picture, more high-definition, and on-demand programs, according to Verizon.

Using a standard television remote, FiOS subscribers with Veveo's video search technology can find video content across Verizon's channels, video-on-demand, and DVR content.

As TV viewers have millions of videos and programs to choose from, Veveo's content discovery helps the overall user experience, the company said.
(By Elizabeth Campbell, Globe correspondent)

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

Alnylam gets $7.5m funding to fight bio threats

Alnylam Pharmaceuticals Inc. received $7.5 million in continued government funding to develop antiviral therapy against biological threats, including the Ebola virus, the Cambridge company said today.

The National Institute of Allergy and Infectious Disease, part of the National Institutes of Health, has continued the funding of its 2006 contract with Alnylam for an RNAi anti-viral therapy to treat the virus which poses potential a bioterrorism risk. Ebola virus can cause a severe, often fatal infection.

To date, Alnylam has received more than $63 million in federal contracts for biodefense work, said Barry Greene, president and chief operating officer of the company.

In September 2006, Alnylam won a federal contract for up to $23 million over a four-year period to develop anti-viral drugs targeting the Ebola virus. To date, the government has committed to paying up to $14.2 million for the first two years, and as a result of the program's progress, the government committed to today's announcement for year three of the contract.

Alnylam produces drug candidates and sends them to the United States Army Medical Research Institute of Infectious Diseases for testing against the virus.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 10:09 AM | Comments (0)

Lionbridge issues bullish guidance

Lionbridge Technologies Inc. on Tuesday said it expects third-quarter sales to rise within a range whose top end is in line with Wall Street estimates.

Lionbridge, which translates software and Web content to help companies operate internationally, expects sales of $118 million and $122 million for the July-September period.

Three analysts surveyed by Thomson Financial forecast revenue of $122.03 million, or 9 percent above Lionbridge's revenue in last year's third quarter.

The Waltham-based firm on Tuesday also reiterated expectations that full-year revenue will reach the high end of its previous guidance of 6 percent to 10 percent growth. That range equates to revenue of $479 million to $497 million, based on last year's revenue of nearly $452 million.

Lionbridge, which also announced second-quarter earnings Tuesday, did not update its earnings expectations.

Shares of the company added 34 cents, or 12.6 percent, to close at $3.04. (AP)

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

Business closings in Conn. hit 8-year high

Business closings Connecticut have hit an eight-year high, while new company startups have dropped to an eight-year low, the secretary of the state's office reported Tuesday.

Nearly 3,000 businesses in the state closed during the second quarter of this year, the highest number of shutdowns of any first or second quarter since at least 2000.

The new data also show that about 7,200 new businesses began operating in the state in the three months ending June 30. That's 766 fewer startups than in the first quarter. Officials said such a month-to-month decline hasn't been seen since at least 2000.

"Businesses throughout the nation are struggling to cope with escalating energy prices, health care costs and the national credit crisis," Secretary of the State Susan Bysiewicz said, "and Connecticut's businesses are no exception."

But Peter Gioia, an economist for the Connecticut Business and Industry Association, said the state's economy appears to be in much better shape than the national economy. For example, the state has been adding jobs over the past couple months, after three months of job losses in February, March and April.

The U.S. economy has seen seven straight months of job losses.

"The economy is still in a challenging state in Connecticut, likely not in recession," Gioia said. "The U.S. economy is in a much more challenging state and most likely in recession."

Connecticut has experienced job growth across many different sectors, including manufacturing, educational services and exports. That's a good sign, Gioia said. Also, the state's housing market and consumer base are not as bad as in other parts of the U.S.

But he said Bysiewicz's report shows that Connecticut's business climate should be watched closely.

"There are going to be some companies that are going to be struggling," Gioia said. "I think it shows we don't want to do anything locally to damage the economy."

Don Klepper-Smith, chief economist at DataCore Partners, a New Haven-based professional services firm, and a member of Gov. M. Jodi Rell's Council of Economic Advisers, said there are signs that credit is tightening for Connecticut businesses.

"As a result, it's not too surprising that business starts would be tapering off and that business failures would be on the rise," he said. "It's consistent with the picture we're seeing nationally and across Connecticut." (AP)

Posted by globebusiness at 8:24 AM | Comments (0)

IPG Photonics profit jumps on laser sales gains

IPG Photonics Corp. said Tuesday its second-quarter profit rose 34 percent on surging demand for fiber lasers used for processing materials in microchips, medical devices and other industries.

The performance narrowly beat Wall Street estimates, and the stock rose 5 percent in midday trading.

The Oxford-based firm said net income for the March-June period rose to $8.55 million, or 19 cents per share, from $6.39 million, or 14 cents per share, in the same quarter a year ago.

Sales rose 27 percent to $56 million from $44 million.

Analysts surveyed by Thomson Financial had forecast a slightly smaller profit in the latest period of 18 cents per share on $54.51 million in sales, on average.

Chief Executive Valentin Gapontsev said sales in European and Asian markets continued to show strength in the latest quarter, while sales in Japan and North America, which had previously been weak, turned around.

"Demand for our energy-efficient, cost-saving and high performance products remained strong in the second quarter, despite a challenging macroeconomic environment," Gapontsev said.

Lasers used for material processing showed the strongest growth, with a 42 percent quarterly revenue gain to $46.9 million. (AP)

Posted by globebusiness at 8:11 AM | Comments (0)

August 5, 2008

Mass. consumer, business confidence drops

Consumer and business confidence fell in Massachusetts, according to two surveys released today.

The Massachusetts Consumer Confidence Index dropped to the lowest levels in the survey's history, according to the latest report from Mass Insight, a research and consulting firm. The state's consumer confidence index fell four points since April to an all-time low of 50, continuing a decline that began in April 2007.

But compared with a 12-point fall in national confidence and 22-point regional plunge, the Massachusetts drop looks minor. The New England consumer confidence index of 27 is just two points shy of the all--time low recorded in October 1990. "Bad as it is, Massachusetts is actually faring better than many other places," said Mass Insight President William Guenther.

Business confidence fell to recessionary levels, with the lowest reading in Massachusetts since May 2003 and the second-lowest reading since late 2001, according to the Associated Industries of Massachusetts Business Confidence Index. The index dropped 4.3 points in July to 44.6. The survey's national index, which measures local businesses' view of the US economy, fell to 35, the lowest in its 17-year history.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 6:03 PM | Comments (0)

11 charged in theft of 40 million account numbers

The Department of Justice today said that 11 people allegedly involved in the hacking of nine major US retailers and the theft and sale of more than 40 million credit and debit card number have been charged.

The scheme is believed to represent the largest hacking and identity-theft case ever prosecuted by the department. The charges include conspiracy, computer intrusion, fraud and identity theft.

The indictment alleges the defendants hacked into the wireless computer networks of major retailers including TJX Cos., BJ’s Wholesale Club, OfficeMax, Boston Market, Barnes & Noble, Sports Authority, Forever 21, and DSW.

‘‘While technology has made our lives much easier it has also created new vulnerabilities,’’ said US Attorney Michael J. Sullivan. ‘‘This case clearly shows how strokes on a keyboard with a criminal purpose can have costly results.’’

The indictment alleges the hackers installed programs to capture card numbers, passwords, and account information, and then concealed the data in encrypted computer servers that they controlled in Eastern Europe and the United States.

Three of the defendants are US citizens, one is from Estonia, three are from Ukraine, two are from China, and one is from Belarus. One individual is only known by an alias online, and his place of origin is unknown.

In an indictment returned today by a federal grand jury in Boston, Albert ‘‘Segvec’’ Gonzales of Miami was charged with computer fraud, wire fraud, access device fraud, aggravated identity theft, and conspiracy.

Also, indictments were unsealed in San Diego against Maksym ‘‘Maksik’’ Yastremskiy of Kharkov, Ukraine, and Aleksandr ‘‘Jonny Hell’’ Suvorov of Sillamae in Estonia. The indictments charge them with crimes related to the sale of the stolen credit card data.

Indictments against Hung-Ming Chiu and Zhi Zhi Wang, both of China, and a person known only by the online nickname Delpiero were also unsealed in San Diego.
(AP)

Posted by globebusiness at 1:35 PM | Comments (0)

Lin TV issues sales outlook below estimates

Lin TV Corp., a television and online news company, today issued third-quarter revenue guidance below Wall Street's expectations.

The company, which is based in Providence, expects total revenue in the quarter to range between $97 million and $99.5 million. This represents an increase of 3.5 percent to 6.2 percent over revenue of $93.7 million in the third quarter of last year.

Analysts polled by Thomson Financial, on average, anticipate sales of $103.7 million in the third quarter.

The increase reflects projected political advertising sales and digital revenue growth, the company said. Lin TV, however, expects a continued decline in local and national advertising spending, based on the current market environment and the pacing of sales orders.

Shares rose 86 cents, or 14 percent, to $6.84 in morning trading. Shares have traded between $4.52 and $15 in the past 12 months. (AP)

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

Portland officials say port offers fuel savings

A shipment of wind turbines headed for New Hampshire has brought some good news to officials in Portland, Maine.

Officials say the shipping company saved in fuel costs by diverting to Portland instead of traveling to its original destination in Pennsylvania. City Manager Joe Gray says the shipment underscores an opportunity for Portland for shipments bound for the Northeast and Canadian Maritimes.

Portland's International Marine Terminal was forced to shut down in late June because Columbia Coastal Transport of New Jersey stopped barge service after losing a key customer.

The wind turbines are headed for Lempster, N.H., where a commercial wind farm is being built.
(AP)

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

Study: financial compliance on the upswing

Large public companies in the United States reported dramatically fewer weaknesses in their financial accounting last year compared to 2006, according to an analysis by Boston-based trade publication Compliance Week released today.

Eleven companies reported a total of 14 weaknesses in the study of 426 of the S&P 500 companies, the analysis said. In the 2006 study, almost every single one of the more than 400 randomly selected companies reported at least one material weakness with more than 800 weaknesses reported.

This year's results showcase the progress of the Sarbanes-Oxley Act, which enacted financial reporting rules, said Matt Kelly, editor-in-chief of Compliance Week.

"Companies took a hard look at their accounting systems immediately after SOX was passed, found all sorts of nasty problems, and spent a lot of money to fix them," Kelly said in a press release. "Now we're seeing fewer mistakes and less effort to comply with SOX because the systems to report financial results are working well."
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 11:17 AM | Comments (0)

ASMC raises 2008 loss estimate

Energy equipment supplier American Superconductor Corp. said today that it expects to post a greater loss during 2008 than it initially anticipated.

The company updated its net loss guidance to between $13 million and $15 million, or 30 cents to 35 cents per share, from its previous estimate of $9 million to $12 million, or 21 cents to 28 cents per share.

That exceeds the estimates of analysts surveyed by Thomson Financial who, on average, expect a loss of 21 cents per share.

American Superconductor attributed its guidance adjustment to the significant increase in its first-quarter stock valuation and the resulting increase in non-cash charges associated with stock compensation, the mark-to-market adjustment on its warrant and other non-operating factors.

The company also increased its revenue guidance by $10 million to a range of $175 million to $185 million.

Shares of American Superconductor fell $5.91, or 16.4 percent, to $30.16 in morning trading.
(AP)

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

Analysts dampen sales expectations for MS drug

Financial analysts are predicting the number of patients using Tysabri will fall far below Biogen Idec Inc.'s forecast, following the Cambridge biotech company's disclosure last week that two more patients using the multiple sclerosis drug contracted a potentially fatal brain disease.

In an investor note today, Deutsche Bank analyst Mark Schoenebaum said that even under his best scenario, Tysabri will only have about 75,000 patients by 2013, far short of the company's goal of 100,000 by 2010. In a more conservative scenario, Schoenebaum predicts just 56,000 patients will use the drug by 2013. And in the worst case, he said, the drug could get pulled from the market if more safety problems emerge.

Close to 32,000 patients are currently using the treatment, which has been approved by the Food and Drug Administration to treat both multiple sclerosis and severe forms of Crohn's disease.

Still, JP Morgan analyst Geoffrey Meacham wrote in a note last week that even before the news of two new cases of the brain disease, called PML, Wall Street's forecasts for the numbers of Tysabri patients by 2010 had been half of Biogen Idec's predictions. Based on that, Meacham wrote, analysts' estimates will probably not fall dramatically further.

Biogen Idec shares rights to Tysabri its Irish partner, Elan Corp. Both companies stocks were pounded last week after the disclosure of the new PML cases, even though Biogen Idec and has long warned that PML is a possible side effect of Tysabri use.
(By Todd Wallack, Globe staff)

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

Clinical Data buys Adenosine Therapeutics

Biotechnology company Clinical Data Inc. said today that it bought privately held Adenosine Therapeutics LLC for about $11 million in cash, with plans for future payments, in a move to boost its development pipeline.

The future payments include a $22 million, five-year promissory note and a separate $3.2 million, 32-month promissory note. The deal also includes possible milestone payments up to $30 million.

The deal gives Clinical Data a developing stress agent used in myocardial perfusion, or heart scans that evaluate function and blood flow. It also gives the company a pipeline with treatment candidates for heart conditions, diabetes, inflammatory diseases, and sickle cell anemia.

"This transaction broadens our portfolio of drug candidates in selected specialty markets," said Drew Fromkin, president and chief executive of Clinical Data.

Shares of Clinical Data rose 32 cents, or 2 percent, to $16.79 in morning trading. The stock has traded between $12.74 and $28.90 over the last 52 weeks. (AP)

Posted by globebusiness at 10:23 AM | Comments (0)

RLM Software is now FlightView

Real-time flight information provider RLM Software officially became FlightView today. The change reflects the core business of the 28-year old company - which delivers information on flights en route to help anyone who flies, meets travelers, and delivers the operational services that support airlines and airports.

The Boston-based company also launched a new Web site today, at www.flightview.com.

"We've had a rich history delivering superior products and services that help air travel-related businesses," said Michael Benjamin, CEO of FlightView. "Now as FlightView, we'll continue to innovate and push the market forward with solutions that empower travelers."

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

3Com lifts guidance on strong China business

3Com Corp., which makes computer networking gear, today raised its financial forecasts for the current quarter, saying sales in China have been better than expected.

The Marlborough, Mass.-based company said it expects an adjusted operating profit of $28 million to $32 million, or 6 cents to 8 cents per share, for the fiscal first quarter ending Aug. 29. The company previously forecast $15 million to $20 million, or 3 cents to 5 cents per share.

The three analysts polled by Thomson Financial had on average project earnings of 4 cents per share.

3Com projects revenue of $335 million to $340 million for the quarter, up from a previous forecast of $325 million to $330 million. Analysts expect $327.7 million in revenue.

The estimates exclude proceeds from a patent suit that was resolved in the quarter. 3Com said in July that it would receive $70 million from Realtek Semiconductor Corp. as a settlement.

3Com said sales in China would be up 10 percent, mainly because of strong orders from Huawei.

In morning trading, shares of 3Com climbed 24 cents, or 12.9 percent, to $2.10. The stock has ranged from 41.76 to $5.11 over the past year. (AP)

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

US Labor Dept. to help N. Andover workers

The US Department of Labor will provide a $758,714 grant to assist workers affected by the ongoing layoffs at the Alcatel-Lucent plant in North Andover.

Awarded to the Massachusetts Department of Workforce Development, the grant will provide approximately 170 workers with full access to dislocated worker services that are not available through the Trade Adjustment Assistance program, including skills assessment, counseling, case management, and job search assistance.

On Dec. 10, 2007, Alcatel-Lucent workers became eligible for TAA. The plant is scheduled to close on Dec. 31, 2008.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:25 AM | Comments (0)

Study finds frustration with innovation efforts

More company executives are frustrated with returns on innovation investments and fewer companies plan to raise their innovation spending, according to the Boston Consulting Group's fifth annual global survey and report on innovation.

The study, conducted with BusinessWeek earlier this year, surveyed nearly 3,000 executives worldwide. The report reveals that 43 percent of executives surveyed said they were satisfied with their return on innovation spending. This is down from 46 percent last year and 52 percent in 2006. The number of executives who said their company will increase investments in innovation continued to fall. This year, 63 percent of executives said innovation investment will rise at their workplace, compared to 67 percent last year and 72 percent in 2006.

Innovation that leads to new products and services for existing customers is the most critical type of innovation to their company's future success, according to 89 percent of executives surveyed.

The report cites lengthy development times and risk-averse corporate culture, along with the difficulties of finding the right idea and the lack of internal coordination as the top four factors driving down the return on innovation spending.

This could have serious effects on "corporate competitiveness," said James P. Andrew, BCG senior partner, in a press release.

"Companies remain staunch believers in the importance of innovation," said Andrew, lead author of the report. "But many are growing increasingly frustrated with their lack of payback on innovation spending, and some firms are apparently starting to think twice."
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:12 AM | Comments (0)

Upromise teams with Barclays

Upromise Investments Inc., the Newton-based college savings plan administrator, has teamed up with global firm Barclays Global Investors to provide a low-cost 529 college savings plan with exchange traded funds.

The iShares 529 Plan will be available exclusively to fee-based advisors, who will be able to handle the investment work on behalf of their clients, said Derek DeLorenzo, vice president at UPromise Investments. Previously, fee-based advisors did not have this level of access, and instead their clients would have to deal with 529 plans themselves or use commission-based savings programs that can cost more in fees, DeLorenzo said. The cost of the iShare plan currently averages around 63 basis points, said Liz Robinson, vice president at UPromise Investments.

"People are very overwhelmed with how much college today costs, and the help and guidance of their financial advisor is their security," Robinson said. "It's hard to make those big decisions all by yourself."
(By Elizabeth Campbell, Globe correspondent)

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

Mass. AG opposes portions of utility rate plan

Attorney General Martha Coakley is urging the state to reconsider portions of a recent order designed to encourage consumers to reduce energy consumption.

The plan by the Department of Public Utilities allows utilities to separate sales of electricity or gas from the revenues needed to maintain distribution systems, a process known as "decoupling."

Coakley is concerned about a part of the plan allowing three natural gas utilities -- Berkshire Gas Company, Bay State Gas Company, and National Grid -- to unilaterally end existing 10-year rate plans.

Coakley said the plans provide customers with certainty in the distribution portion of their rates.

She said ending the plans would lead to higher rates. (AP)

Posted by globebusiness at 8:21 AM | Comments (0)

Altra Holdings lifts forecast, shares jump

Shares of Altra Holdings Inc., which makes brakes for elevators and wheelchairs, jumped in afterhours trading Monday after the company raised its 2008 earnings estimate.

Altra, which also reported second-quarter profit doubling from the year-earlier level, forecast net 2008 sales of $640 million to $650 million, up from earlier guidance of $630 million to $645 million. Analysts polled by Thomson Financial expect, on average, sales this year of $643.9 million.

Altra forecast diluted earnings per share of $1.28 to $1.37, up from earlier guidance of $1.20 to $1.35. Analysts expect $1.35 per share.

For the three months ended June 28, Altra earned $9.9 million, or 38 cents per share, compared with $4.8 million, or 21 cents per share, in the year-earlier period.

Excluding one-time items, Altra earned 39 cents per share. Analysts, whose estimates typically exclude one-time items, expected, on average, earnings per share of 36 cents, according to a Thomson Financial poll.

The company, which is based in Quincy, used a higher number of shares outstanding to calculate earnings for the recently completed quarter.

Sales in the second quarter rose 9.4 percent to $167.9 million from $153.5 million. Analysts expected revenue of $164.8 million.

Altra cited higher sales, improved productivity, "low-cost country sourcing" and the ability to pass along higher material cost.

In aftermarket trading, Altra's shares jumped $1.32, or 8.2 percent, to $17.40. The shares dipped 20 cents to $16.08 in regular-session trading. (AP)

Posted by globebusiness at 8:17 AM | Comments (0)

August 4, 2008

Spherics goes out of business

Spherics Inc., a Mansfield biotech company that received a state-funded loan to move to the Massachusetts three years ago, has shut down.

The company's remaining assets, primarily intellectual property, are slated to be auctioned off to benefit creditors on Oct 10, according to Joseph Finn, the Wellesley accountant who has been tapped to oversee the liquidation.

In 2005, Spherics received a $2.5 million loan from MassDevelopment to help finance its new headquarters in Mansfield. At the time, the company had 25 employees and planned to double its employment over the next three years.

A MassDevelopment spokeswoman said the loan has not yet been paid off, but could not say how much is still owed.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 4:40 PM | Comments (0)

Gov. Patrick signs broadband expansion bill

Governor Deval Patrick signed legislation today, making high-speed Internet available to areas of Massachusetts currently without access.

Within the next three years, the law calls for the expansion of broadband into 32 communities throughout the state.

"Broadband is an essential resource in today's world and economy," Patrick said in a release. "Expanding access to broadband will create substantial opportunities for economic, academic, and cultural growth."

The law, providing $40 million in bonds, establishes the Massachusetts Broadband Institute, within the Massachusetts Technology Collaborative, which will procure federal, and private support to expand access and create a broadband infrastructure for the underserved areas, predominately in western Massachusetts.

The Institute will also assess existing Internet service conditions throughout the commonwealth, especially the 63 towns with only partial service.

In the 95 communities with limited or zero broadband availability, more than 220,000 households and more than 25,000 businesses lack adequate Internet access.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 4:38 PM | Comments (0)

Boston Private raises stake in Bingham, Osborn

Wealth management firm Boston Private Financial Holdings Inc. said today that it has raised its investment in Bingham, Osborn, & Scarborough LLC, another asset manager.

Boston Private's stake in the San Francisco Bay area firm now stands at 70 percent. That is up from its 64 percent stake as of December 31, 2007, and up from its initial 20 percent interest acquired in February 2004.

Shares of Boston Private slipped 2 cents to $8.22 in early afternoon trading. (AP)

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

Former Boston Scientific unit gets new name, headquarters

Boston Scientific Corp.'s former fluid management business has a new name and headquarters.

Avista Capital Partners, a private equity firm that bought Boston Scientific's fluid management and venous access business for $425 million in February, said the unit will now be called Navilyst Medical, with its corporate headquarters in Marlborough.

The fluid business makes medical devices used to manage fluids and measure pressure in angiography procedures. The venous access business makes implantable devices used to provide regular access to a patient's bloodstream, such as for intravenous delivery of antibiotics.

The company has about 800 employees, largely at a manufacturing plant in Glen Falls, NY. And it had roughly $170 million in revenue last year.
(By Todd Wallack, Globe staff)

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

Mass. gas prices drop 6 cents

Gas prices in Massachusetts have dropped 6 cents on average in the past week, and drivers are paying 19 cents less than just three weeks ago.

The latest weekly statewide survey by AAA of Southern New England found an average price of $3.89 per gallon for self-serve, regular unleaded gasoline. Massachusetts is one penny above the national average of $3.88.

The survey shows prices ranging from as low as $3.61 to as high as $4.33 per gallon in the state. The average price for diesel in Massachusetts also fell four cents in the last week to $4.77 per gallon. (AP)

Posted by globebusiness at 12:05 PM | Comments (0)

Alkermes alcohol drug gets Russian approval

A drug to treat alcoholism, manufactured by Alkermes Inc. has received marketing approval in Russia, the Cambridge-based company said today.

Russian regulatory authorities approved the marketing of Vivitrol, a once-monthly, extended-release injectable medication for the treatment of alcohol dependence. The drug will be manufactured by Alkermes and commercialized by Janssen-Cilag, an affiliate company of Cilag GmbH International, a subsidiary of Johnson & Johnson.

Approximately 10 million people in Russia are dependent on alcohol, according to a company release.

In April 2006, the US Food and Drug Administration approved Vivitrol. In the US, the drug is commercialized mainly by Cephalon Inc.
(By Elizabeth Campbell, Globe correspondent)

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

Inland American invests in Concord Debt Holdings

Inland American Real Estate Trust Inc. has agreed to invest up to $100 million in Concord Debt Holdings LLC, which originates and acquires real estate securities and loans.

Concord, a venture between real estate investment trusts Winthrop Realty Trust and Lexington Realty Trust, said today it is set to receive up to $100 million over the next 18 months, with an initial investment of $20 million.

Under the agreement, additional contributions by Inland American are to be used to originate and acquire additional loans. If certain conditions are satisfied, including payment of Inland American's 10 percent priority return, both Winthrop and Lexington may reduce their investment in Concord to $200 million through distributions of principal payments from the retirement of existing loans and bonds in Concord's portfolio.

Inland American Real Estate Trust Inc. was represented in the transaction by subsidiary Inland Institutional Capital Partners Corp., which raises private equity for Inland's real estate companies and trusts. (AP)

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

Idera Pharmaceuticals posts profit

Idera Pharmaceuticals Inc. today reported a profit for the fiscal second quarter, beating Wall Street's expectations for a loss.

The developer of experimental biotechnology treatments for infectious and autoimmune diseases posted quarterly net income of $1.3 million, or 5 cents per share, compared with a loss of $3 million, or 14 cents per share, in the year-ago quarter.

Revenue rose to $7.9 million from $1.9 million, an increase the Cambridge-based company attributed to higher license fees and reimbursed expenses under a collaboration agreement with Merck KGaA that began in February.

On average, analysts surveyed by Thomson Financial forecast a loss of 9 cents per share on revenue of $5.2 million

The higher revenue was partly offset by rising quarterly research and development expenses, which increased to $3.8 million from $3 million a year earlier. General and administrative expenses rose to $3.2 million from $2.4 million in the year-ago period.

Idera said that as of June 30, it had cash, cash equivalents and investments totaling $59.5 million, up from $23.7 million at the end of last year. The company expects its current total is sufficient to fund operations through at least March 2010.

Idera is developing experimental treatments targeting infectious, autoimmune and respiratory diseases, as well as cancer. The company's work focuses on so-called toll-like receptors that direct immune system responses.

Shares of Idera Pharmaceuticals slipped 9 cents to $14.89 in morning trading. (AP)

Posted by globebusiness at 10:23 AM | Comments (0)

Raytheon announces two contracts

Raytheon Co., the Waltham-based defense contractor, won a $412 million U.S. Air Force contract for production and delivery of air-to-air missiles, the company said in a news release today.

Delivery of the missiles is schedule to start in 2010 and continue through 2011. Raytheon employs 72,000 people worldwide.

Raytheon also announced that it landed a $31.6 million contract from the U.S. Air Force to make laser-guided bomb components..

For the fiscal year 2008, Raytheon will provide the Air Force with computer control groups and air foil groups that turn unguided bombs into guided bombs.
(By Elizabeth Campbell, Globe correspondent with wire services)

Posted by globebusiness at 10:18 AM | Comments (0)

Schering-Plough drug results send Vertex down

Schering-Plough Corp. said today that interim results from a mid-stage study of its experimental hepatitis C drug showed promising results, sending shares of rival Vertex Pharmaceuticals Inc down more than 10 percent in early trading.

Schering-Plough, whose shares rose 0.3 percent, said its analysis showed that at 48 weeks, 74 percent of patients receiving boceprevir in combination with standard treatment had sustained undetectable levels of the hepatitis C virus in their bloodstream, compared to 38 percent of patients receiving standard treatment alone.

The results were achieved by first giving patients a four-week "lead-in" time where they received the standard current treatment alone.

The company also tested a group of patients who did not receive "lead-in" treatment. In those patients, 66 percent saw the virus eliminated from the blood-stream.

Vertex is further ahead in the development process with its rival experimental drug telaprevir and is expected to be first to the market, but investors are closely watching the competitive environment.

Hepatitis C is a viral infection of the liver. An estimated 170 million people worldwide are chronically infected with the virus, according to the World Health Organization.

Schering-Plough said that in two 28-week groups of the study, 56 percent of patients who received the lead-in treatment had not experienced a return of their virus 24-weeks later, while 55 percent of patients who did not receive the lead-in treatment continued to be virus-free.
(Reuters)

Posted by globebusiness at 10:11 AM | Comments (0)

SiCortex appoints new chief executive

SiCortex Inc. has appointed Christopher Stone as president and chief executive officer, the Maynard high performance computing company said today.

The company's founding CEO John Mucci will continue to serve on the board of directors.

"High performance computing is in an exciting period of innovation underpinned by a growing need for higher performing, increasingly energy-efficient and more accessible machines," Stone said in a press release.

Previously Stone served as president and CEO of StreamServe Inc., a Burlington-based software company. Stone also worked at Novell Inc. in a number of executive positions. In 1999, he founded the software company, Tilion Inc.

Stone graduated with a bachelor's degree in computer science from the University of New Hampshire and holds an AMP/MBA from Harvard Business School.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:56 AM | Comments (0)

AS&E lands mobile X-ray system order

American Science and Engineering, Inc. has received an order from a South American government, the Billerica company said today.

The order for ten Z Backscatter vans, a mobile X-ray detection system, will expand the government's existing fleet of ZBVs, said Anthony Fabiano, president and CEO of AS&E, in a press release. The order includes operator training, service, and warranty.
(By Elizabeth Campbell, Globe correspondent)

Posted by globebusiness at 9:35 AM | Comments (0)

Environmentalists celebrate big wins in Mass.

So who was the biggest winner on Beacon Hill this session: Massachusetts Gov. Deval Patrick? House Speaker Salvatore DiMasi? Gay marriage activists?

Guess again.

Tally up the crush of bills passed during the Legislature's 19-month formal session and it's hard to find a politician or interest group with bigger bragging rights than environmentalists.

From ocean management to global warming, "green jobs" to clean energy, the environmental lobby racked up win after win at the Statehouse, helped along by a sympathetic governor, powerful House speaker and worries about soaring energy prices and the state's iffy economy.

Activists hope the successes not only burnish the state's reputation as a green leader, but pay long-term dividends, from preserving open spaces to reversing the emission of greenhouse gases into the atmosphere.

"It's been the greatest session in recent history," said Jennifer Ryan, Mass. Audubon's Legislative Director.

There have been so many environmentally friendly bills, it's been hard to keep them straight at times. Some are still awaiting Patrick's signature.

Some of the biggest include:

-- The Oceans Act of 2008. The new law, signed by Patrick in May, ensures Massachusetts lives up to its Bay State nickname by becoming the first state in the nation to create a single document to cover a myriad of ocean activities, from wind farms and ocean fishing to whale watching and environmental conservation.

-- Green Jobs Bill. The bill, now on Gov. Patrick's desk, would spur the growth of jobs in the green economy in part by funneling $13 million a year over the next five years into a new Massachusetts Clean Energy Technology Center to develop the renewable energy sector.

-- Green Communities Bill. The initiative is intended to help Massachusetts wean itself off fossil fuels and other polluting forms of energy while cutting down on emissions that lead to global warming in part by requiring utilities and other electricity suppliers to procure an increasing percentage of their energy from renewable sources.

-- Global Warming Bill. The bill requires the state over the next dozen years to reduce greenhouse gas emissions to 20 percent below 1990 levels. By 2050, the goal is to have emissions drop 80 percent below 1990 levels.

-- Biofuels Law. The measure, signed by Patrick last week, signed Monday gives preferential tax treatment to non-corn-based alternatives to ethanol. It also requires biofuel content in all the diesel and home heating fuel sold in the state.

-- Environmental Bond Bill. The bill authorizes the state to borrow $1.7 billion in part to help conserve green spaces and rebuild parks. It also includes tax credits to private landowners who permanently protect their farms or forest lands from development.

There were also smaller victories, including funding for the state's endangered species program for the first time in five years and a bill banning phosphorus from dishwater detergent.

"The public has demanded action to protect our environment and our health and clearly the Legislature has listened," said Lora Wondolowski, executive director of the Massachusetts League of Environmental Voters.

Not everyone was cheering.

Some business groups said the added regulations included in some of the environmental bills would drive up costs and could discourage economic growth at a time when the state needs jobs and increased revenues.

But supporters of the bills, including Patrick, say the state needs to sow the seeds for a new economy that puts Massachusetts at the forefront of green technology, even as it works to clean its environment.

Legislative leaders also saw soaring gas prices as an opening to push through bills that they said would save money and energy by making the state more fuel efficient.

House Speaker Salvatore DiMasi championed the "green jobs" bill, an initiative he said would "not only bolster our efforts to change the way we consume, produce and deliver energy in the commonwealth, but also grow jobs and provide new opportunities for our work force." (AP)

Posted by globebusiness at 9:25 AM | Comments (0)

Magic Hat merges with Seattle brewer

PMID Merger Sub, Inc., a wholly owned subsidiary of Independent Brewers United, Inc., the parent of Magic Hat Brewing Company & Performing Arts Center, Inc., announced today the completion of its tender offer for all of the outstanding common shares of Pyramid Breweries Inc. for $2.75 per share in cash.

Magic Hat Brewing Company & Performing Arts Center, Inc., headquartered in Burlington, VT, is one of the largest craft brewers on the east coast.

Pyramid Breweries Inc. is a leading brewer of specialty beers produced mainly under the Pyramid and MacTarnahan's brand names.

Pyramid owns two alehouse restaurants adjacent to its full production breweries under the Pyramid Alehouse and MacTarnahan's Taproom brand names in Berkeley, California and Portland, Oregon, respectively, and three alehouse restaurants in Walnut Creek and Sacramento, California and Seattle, Washington.

Posted by globebusiness at 8:52 AM | Comments (0)

SensAble tech powers award-winning project

SensAble Technologies, Inc, a leading provider of touch-enabled modeling solutions and haptic devices, announced that its customer, the Ohio Supercomputer Center (OSC), a publicly-funded research partner to Ohio universities and industries, has won national recognition for its Virtual Temporal Bone Project, which utilizes a SensAble PHANTOM haptic device. SensAble is based in Woburn.

The system, developed by OSC in partnership with Nationwide Children's Hospital and The Ohio State University Department of Otolaryngology, received the prestigious Dr. Frank H. Netter Award for Special Contributions to Medical Education from the Vesalius Trust for Visual Communication in Health Sciences during the annual meeting of the Association of Medical Illustrators, held July 16-20, in Indianapolis.

The Virtual Temporal Bone simulator creates a true-to-life experience encountered in ear surgery. The temporal bone contains the structures for hearing and balance, and the simulator allows future surgeons to practice delicate surgical drilling techniques on a computer-based teaching system instead of cadavers or as apprenticeships in operating rooms. A multi-institutional validation study is now underway to determine if surgical residents taught by this simulator achieve better surgical results compared to traditional methods.

The system's realism is enhanced with a SensAble PHANTOM haptic device, which allows surgeons to "feel" the surgery they are performing, as well as see and hear it. SensAble's device and accompanying software employ force-feedback technology to literally push back on the trainee's hand as they look through a binocular viewer that replicates the view that a surgeon would see through a microscope during surgery. Drilling sounds are then modulated based upon the pressures and area of bone being removed.

Posted by globebusiness at 8:41 AM | Comments (0)

Bus travel grows as airfares leap

It's a tale of two cities: Nikita Bernstein, 29, a dyed-in-the-wool New Yorker with a business in Boston, was in need of a cheap way to travel between his two homes. And a place to plug in his laptop, store his bike and stretch his legs along the way.

Bernstein is an example of a growing number of people, often young professionals, that are jumping on the bus as their primary method of travel. The service Bernstein uses most often, discount carrier BoltBus, offers amenities including wireless internet, electrical outlets, extra leg room and flushable toilets.

Once considered the travel choice of last resort, some say the confluence of rising gas prices, airline headaches and the rise of discount carriers is creating a kind of renaissance in the bus industry.

Joseph P. Schwieterman, a professor of public service management at DePaul University, said growth in the bus industry has accelerated recently -- reversing steady declines since 1960 -- as low-cost carriers such as Coach USA's Megabus and Greyhound's Boltbus take aim at the lucrative curbside business of so-called Chinatown operators.

Chinatown buses, which run from one city's Chinatown to another, offer an extremely popular curbside service, especially among 20-somethings looking for an inexpensive way to get wherever they are going. They also operate outside of terminals, saving companies millions in building and labor costs.

Megabus was first launched in the U.S. in April 2006. It offers cheaper fares the longer a ticket is booked in advance, with perks comparable to BoltBus. The highest fare tops out at $27. The Chicago-based service expanded to the East Coast in May of this year, adding routes from New York to Washington D.C., Boston, Washington D.C., Philadelphia, Baltimore, Buffalo, N.Y. Atlantic City, N.J. and Toronto.

But the carrier closed its hub in Los Angeles last month citing low ridership.

Coach USA President and Chief Operating Officer Dale Moser said the company saw the number of day passengers on its service surge 137 percent last year. He attributed part of the jump to the U.S. launch of Megabus.

Overall industry growth has been concentrated on the East Coast, where carriers are vying for the thriving business in major cities including New York, Washington and Boston.

"There is a remarkable, cutthroat battle for market share on the East Coast like nothing we've ever seen before," Schwieterman said.

While growth in bus service has been seen nationwide, Schwieterman said the eastern market is considered the most intense because of the presence of heavily populated cities that are more concentrated than in other parts of the country. He believes that one of the culprits that led to the shutdown of Megabus' Los Angeles hub was the fact that people without cars couldn't easily access the terminals.

Greyhound launched its low-cost service Boltbus earlier this year. The service began in late March from New York to Washington D.C., and in April from Philadelphia and Boston, running routes between the cities and New York. A ticket tops out at between $15 and $25 depending on the origination city. Both services say at least one seat (out of 50-plus) on each bus is $1, but note there are sometimes more than one depending on the route.

Greyhound spokesman Dustin Clark said BoltBus is an answer to growing demand from students and other young people, but also a growing number of business travelers. And while BoltBus became profitable in May -- ahead of the company's expectations -- Greyhound's mainline ridership has remained flat over last year.

But Schwieterman noted that last year was a strong year for Greyhound, and for the nation's largest carrier, perhaps holding onto riders is a feat in itself.

"Its an achievement, nonetheless, to be flat in this economy," he said.

Schwieterman said Greyhound is also becoming "more aggressive and ambitious" following a major overhaul last year. The company closed routes across the country in an effort to improve efficiency throughout its network.

The company is also spending more to advertise than ever before, he noted.

But the biggest recent move by Greyhound is undoubtedly the launch of BoltBus, he said, with those alluring $1 fares.

But in the bitter battle for the East Coast, Schwieterman said it does not appear that Chinatown operators have pulled back either.

"It's a consumer's paradise right now, with cheap fares galore," Schwieterman said. "The incentives for taking the bus have never been better. And it comes at an interesting time, with airfares shooting up like a rocket."

Schwieterman said rising airfares are adding to existing concerns among consumers about rising gas prices. With gas topping $4 per gallon, buses -- especially discount carriers -- are becoming increasingly attractive.

American Bus Association spokesman Eron Shosteck suggested that riders are also increasingly focused on reducing their carbon footprint, looking at buses as a greener alternative to cars.

Shosteck said this trend has continued as bus services revamp their fleets with more fuel-efficient motorcoaches with added creature comforts.

According to the association, motorcoaches get 184 passenger miles to the gallon, domestic air carriers reach about 42 passenger miles to the gallon and the average automobile gets 28 miles to the gallon.

Coach's Moser said the company is keenly focused on maintaining a fleet of newer, fuel-efficient fleet to reduce emissions.

Moser said the bus company is primarily getting people out of their cars, although he also sees frustration among his riders with the current state of the airlines.

And as the economy gets tighter, Moser suggests that the demand for bus services will continue to grow.

"People are looking for a simple way to get from Point A to Point B, and in this economy, buses are a great way to stretch that dollar." he said. (AP)

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

August 1, 2008

Boston law firm tops in employee satisfaction survey

Boston law firm Nutter McClennen & Fish ranked No. 1 in the country for associate satisfaction, according to a survey by The American Lawyer, a trade publication.

With responses from more than 7,000 associates from 180 firms, Nutter scored particularly well in areas of partner-associate relations, work satisfaction, collegiality, and benefits and compensation.

Nutter associates ranked the quality of work they are assigned 17 percent higher than the national average, the survey said. Also, Nutter scored 20 percent higher than the national average on the question of tenure at the firm with most associates expecting to be with the firm in two years.

"Nutter's success depends on the success of the lawyers who practice here, and we believe that in order for them to succeed, they must be inspired, challenged, and supported," said Michael Mooney, Nutter's managing partner, in a press release.

Founded in 1879, Nutter has more than 150 lawyers in offices in Boston and Hyannis.
(By Elizabeth Campbell, Globe correspondent)

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

Senators urge Patrick to act on student loans

Late yesterday, 39 state senators signed a letter urging Governor Deval Patrick to act quickly to assist the Massachusetts Educational Finance Authority, the quasi-public lending concern that this week announced it has no money for private student loans this fall.

The news affects about 40,000 students and their families who have counted on MEFA in the past. The group said in April that it was suspending federal student loans as well.

The senators suggested that the governor act to help loosen up funds for MEFA; the lender has been unable to refinance its outstanding bonds, due to turmoil in the credit markets, and thus has no new money to lend. They said Patrick should try to persuade college administrators to either lend MEFA funds, purchase MEFA bonds, or offer credit to MEFA for use in the sale of its bonds.

At the same time, the legislators urged the governor's office to use its leverage with financial institutions, to encourage them to invest in MEFA's student-loan bonds.

Senator Brian A. Joyce, Democrat of Milton, said the student-loan crisis is complicated in Wall Street terms, but locally, its effect is "starkly simple.'' He said there are "thousands of Massachusetts families, already struggling with higher fuel prices, higher grocery bills, and in many cases higher mortgage and tax bills on depreciating homes, who now must scramble to obtain higher cost loans from for-profit institutions. And heaven help them if their credit scores aren’t very high.”

The governor's office had no immediate response to the letter.
(By Beth Healy, Globe staff)

Posted by globebusiness at 12:43 PM | Comments (0)

Convention center, Hynes accounted for $494.2m

The Boston Convention & Exhibition Center and the Hynes Convention Center generated $494.2 million in economic impact in the 2007 fiscal year ended June 30, according to a report released by the Massachusetts Convention Center Authority today.

The 247events at the two venues attracted 852,728 attendees, up 22.5 percent from the prior year. Attendees on average each spent $40 per day on shopping and nearly $50 per day on dining.

They booked 602,112 hotel roomnights -- an industry measure of one room occupied for one night -- and accounted for 14 percent of all the city's hotel roomnights for the year. It cost $41.8 million to run the two venues.
(By Nicole C. Wong, Globe staff)

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

Biogen may be looking for more space in suburbs

Biogen Idec Inc. is searching for as much as 300,000 square feet of additional office space in the Boston suburbs, including Waltham and Weston, according to the Boston Business Journal.

The biotechnology company currently has more than 1,500 employees at its Cambridge headquarters and research center. it has another 150 marketing, sales and administrative jobs in Wellesley -- the company moved those jobs from Cambridge to Wellesley in April 2007.

In January, Biogen Idec chief executive Jim Mullen (photo) said it makes sense to move some business-related jobs to the suburbs, where rents are less expensive, but he also said it was important to maintain Biogen Idec's research operations near Cambridge's Kendall Square, considered the heart of the region's biotech cluster.
(By Todd Wallack, Globe staff)

Posted by globebusiness at 12:15 PM | Comments (0)

Vertex reports good trial results for hepatitis drug

Vertex Pharmaceuticals Inc. said its hepatitis C drug candidate telaprevir was both safe and prompted a response in patients during a midstage study.

Interim results from a Phase IIa clinical trial showed that doses of telaprevir taken two and three times a day -- in combination with standard hepatitis C treatments -- were effective in treatinf the disease. More than 80 percent of 160 patients had undetectable levels of hepatitis C after four-week and 12-week periods.

A complete analysis will be performed upon the conclusion of this study in 2009, the company said.
(AP)

Posted by globebusiness at 10:50 AM | Comments (0)