Bay Biz Buzz: Fremont's Asyst files bankruptcy; will seek sale
Staff and wire reports
Posted: 04/20/2009 09:13:22 AM PDT
Updated: 04/20/2009 09:39:21 AM PDT
Fremont-based Asyst Technologies Inc. has decided to file a voluntary bankruptcy under Chapter 11, facing loan defaults and rising interest payments. The semiconductor equipment maker noted that demand for its products has declined dramatically because of the recession. Asyst Technologies also said it has cut jobs. Official state government files show Asyst has cut 85 jobs this year. The company also said it's reduced benefits, cut salaries of executives, and undertaken mandatory time off.
Asyst intends to pursue a sale of the company or sales of some assets, in order to maximize shareholder value. Lately, though, Asyst has wrestled with delays in customer projects and related cash collections, and is facing higher financing costs because of a default on its loan with KeyBank National Association.
Biotech
The U.S. Supreme Court refused to stop a shareholder suit that says Foster City-based Gilead Sciences Inc. inflated its stock price by concealing its reliance on illegal marketing of its Viread AIDS medicine. The justices, without comment, today turned away Gilead's appeal of a ruling that said the lawsuit's accusations were specific enough for the case to move forward. Viread last year produced $621 million in worldwide sales for Gilead, the biggest U.S. supplier of AIDS drugs. The shareholders say Gilead deceived them in 2003 by not revealing that 75 percent to 95 percent of Viread's sales at that time stemmed from efforts to encourage
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so-called off-label uses, those not approved by the Food and Drug Administration. Although doctors may prescribe medicines for unapproved uses, federal law bars off-label marketing. The suit says the company's deception prevented shareholders from appreciating the significance of an August 2003 FDA letter that ordered the company to cease off-label marketing efforts. In October of that year, Gilead announced sales that fell short of analysts' estimates, and shares fell 13 percent the next day. Gilead stock is down 52 cents to $44.16 in trading thismorning.
Tax Software
Moutnain View-based Intuit Inc., the world's largest maker of tax-preparation software, fell the most in two months in Nasdaq trading after saying sales in the consumer-tax unit will trail its forecast. Fewer customers used the TurboTax program than anticipated toward the end of the tax season, Intuit said today in a statement. The company, which forecast total sales of as much as $3.3 billion for the year ending in July, didn't provide specific figures. Sales of TurboTax programs for desktops fell 11 percent from a year earlier. Tax-preparation software accounts for about 40 percent of Intuit's revenue, making it the company's biggest business. Intuit fell $1.18, or 4.6 percent, to $24.40 this morning. Intuit, whose fiscal year ends July 31, typically makes a profit in its second and third quarters leading up to the U.S. filing deadline of April 15.
Quickly
Darim Vision Corp. has bought a small office building in Livermore's Montevina project. Darim paid $1.2 million for the 3,600-square-foot building, located near Interstate 580 and Airway Boulevard. The building, sold through Cornish & Carey, is the first building sold in Montevina's $40 million first phase. ExTerra Realty developed Montevina. ... Fremont-based WaferGen Biosystems Inc. has raised $1.5 million through a private investment in its Malaya-based subsidiary, the maker of software for genetic analysis said. ... Camping World, the nation's largest RV and outdoor retailer today announced that it will hold a grand opening celebration at its newest SuperCenter in Vacaville from Thursday through Sunday. Camping World of Vacaville is located at 5065 Quinn Road, just off Interstate 80 and is a relocation of the Fairfield store to a larger facility. For more info, call 1-800-448-1253
