Best Buy Co. Inc., the nation's largest consumer electronics retailer, said that cost-cutting and sales of big-ticket items powered a fiscal first-quarter profit increase of nearly 38 percent. Its shares jumped more than 5 percent.
In the three months ended May 27 it earned $234 million, or 47 cents per share, up from $170 million, or 34 cents per share, during the same period last year. Analysts were expecting 36 cents a share. Revenue jumped almost 14 percent to $6.96 billion.
Sales at stores open 14 months grew 4.9 percent. Best Buy said the gain was driven by an increase in the average size of each transaction, as customers spent more on flat-panel televisions, music players, and laptop computers. Sales of older televisions, music, desktop computers and printers all declined.
Associated Press
NTN Buzztime names CEO
NTN Buzztime of Carlsbad named Dario L. Santana as president and chief executive officer, replacing Stanley Kinsey, who will remain on the company's board.
Santana most recently was president of Tyco Fire & Security – Latin America, a services and technology company with annual revenues of nearly $300 million. Prior to that, he was the president and chief operating officer of Aerocast, a streaming media startup. He also worked as an executive with General Instrument/Motorola Broadband from 1992 until 2000.
NTN develops and distributes interactive trivia games to restaurants and cable companies. Kinsey said last year that he would not seek renewal of his employment contract. Barry Bergsman, the current lead outside director, will become chairman of the company's board.
Cytori, Cambrex form alliance
San Diego-based Cytori Therapeutics, which derives stem cell from fatty tissue, said it and Cambrex Bio Science Walkersville Inc. have entered into a strategic marketing agreement.
The companies will provide fat-derived stem cell products for use in research. Under terms of the agreement, Cambrex will manufacture and market products to the research community. Cytori will receive royalties on all cells, media, and related future research products based upon the licensed technology. Financial terms of the deal were not disclosed.
Sequoia receives venture funding
Sequoia Communications has received $25 million in its latest round of venture funding. The money will be used to bring the company's chip into volume production.
The funding round was led by BlueRun Ventures, formerly Nokia Venture Partners. In addition, existing investors increased their holding in the semiconductor company, including Tallwood Venture Capital and Motorola Inc.
The new funding round brings the total venture capital invested in the San Diego startup to about $45 million.
Sorrento Mesa complex sold
The two-building, 128,296-square-foot Wateridge Technology Center in Sorrento Mesa has sold for $32.75 million, according to Brian Driscoll of Colliers International, which worked on the transaction. The office and corporate headquarters buildings fetched $255 on a square foot. The buyer was Legacy Partners of Foster City; seller was The Allen Group of San Diego.
American Mortgage Network, a wholly owned subsidiary of Wachovia Corp., is the major tenant.
Placer Sierra completes deal
Placer Sierra Bancshares has completed its $175 million all-stock acquisition of Southwest Community Bancorp of Carlsbad, which will retain its name and become wholly owned subsidiary. Placer Sierra is headquartered in the Bay Area.
Holders will receive 1.58 shares of Placer Sierra for each share of Southwest Community Bancorp.
Southwest Community has nine branches in San Diego, Orange and Riverside counties. Placer Sierra has nearly 50 branches statewide. As part of the transaction, former Southwest Community Chief Executive Frank Mercardante and board member Allen Arendsee were named to Placer's board of directors.
Placer Sierra's shares rose 8 cents to close at $23.46.
SAIC gets new credit facility
Science Applications International Corp. said it entered into a new five-year credit facility that provides for borrowing up to $750 million. The arrangement replaces two credit lines set to expire over the next three years. SAIC is a San Diego-based, employee owned research and engineering company.
