| South Florida Business Journal -- Broward Edition - July 3, 2000 http://southflorida.bcentral.com/southflorida/stories/2000/07/03/weekinbiz.html |
| Still More | |
 | From the June 30, 2000 print edition |
Dr. Brian Berman, head of clinical studies at the University of Miami, said he has halted testing of Cellasene, a drug that Boca Raton-based Rexall Sundown (Nasdaq: RXSD) announced as the world's first antidote to cellulite. Berman said the 240 women in the study were required to show up six times for the clinical testing but most did not. Sales last year were expected to exceed $300 million but hit only $54 million after negative press. Sales are expected to be $20 million this year.
-- JP Bender, JPBender@bizjournals.com
Developers of the Castillo Grand, a $146 million hotel and condominium project on Fort Lauderdale beach, have closed their transaction to buy 1.76 acres on Castillo Street and A1A for $11 million. Castillo Grand, whose managing partner is John McDonald, plans to start construction in the fall on the 23-story tiered tower with completion anticipated by 2002. Plans call for a 235-room, five-star hotel and 29 penthouse residences.
-- Darcie Lunsford, DLunsford@bizjournals.com
Pace Micro Technology has scored a three-year, 350,000 digital set-top box order from Comcast Cable. The high specification, digital interactive control boxes will be used on both Comcast's Motorola and Scientific Atlanta-based networks. Pace is headquartered in Saltaire, Britain, with U.S. headquarters in Boca Raton. First Comcast box deliveries are scheduled for the end of 2001. Industry sources value the initial order at more than $75 million.
-- Ed Duggan, EDuggan@bizjournals.com
Miami-Dade County Circuit Court Judge Fredricka Smith certified as a class action a lawsuit brought on behalf of America Online's customers who have subscribed to hourly plans since 1994. Named plaintiffs Hampton Booker and Arthur Sweeney, both of Miami, are suing AOL because AOL's pop-up ads block customers from having access to all of AOL's services, including the Internet and e-mail. As a result, hourly plan subscribers are charged for overtime but do not receive the full benefit of their hours. The lawsuit seeks damages in the range of $15 million to $20 million. Judge Smith denied AOL's motion to dismiss. AOL is expected to appeal.
-- Lucy Chabot, LChabot@bizjournals.com
Edward E. Iacobucci, founder and chairman of Fort Lauderdale-based Citrix Systems (Nasdaq: CTXS), resigned from the company June 23, the company announced in a statement. Former CEO Roger W. Roberts became chairman and temporary COO until a new CEO is chosen. The same day, the Philadelphia law firm of Barrack Rodos & Bacine filed suit against Citrix, bringing to more than 16 the number of lawsuits seeking class action status against the company after stock prices dropped more than 40 percent this month on news that quarterly earnings would be lower than expected. Within hours of news of Iacobucci's resignation, shares fell about 20 percent and hit a 52-week low near $19. In other news, Citrix announced a licensing agreement with Yahoo! (Nasdaq: YHOO) allowing Yahoo! to market and demonstrate NFuse business application integration technology to customers of Corporate Yahoo!. The agreement also includes joint enterprise marketing and sales opportunities as well as channel development and education.
- Lucy Chabot, LChabot@bizjournals.com
New York law firm Faruqi & Faruqi filed a class action lawsuit against Aventura-based Columbia Laboratories (Amex: COB) on behalf of people who bought stock between Nov. 8 and June 9. The suit alleges Columbia made misleading public statements concerning the effectiveness of its spermicide Advantage-S to block HIV, the virus believed to causes AIDS. The company announced earlier this month that the drug did not block the virus and stock value dropped 50 percent. The company said it plans to "vigorously" defend itself in this and similar suits.
- Lucy Chabot, LChabot@bizjournals.com
Miami-based IVAX Corp. (AMEX: IVX) announced the U.S. Food and Drug Administration (FDA) has approved its application for isosorbide mononitrate extended-release 60 mg tablets. Isosorbide mononitrate is used to treat angina due to coronary artery disease and is the generic equivalent of Schering Corp.'s Imdur 60 mg tablets. IVAX will begin marketing the product in the near future through its subsidiary, Zenith Goldline Pharmaceuticals.
- Lucy Chabot, LChabot@bizjournals.com
Diageo (NYSE: DEO), the international food and drinks company, says it is developing the option of a partial flotation of Burger King on the NYSE to maximize value for shareholders. Burger King CEO Dennis Malamatinas said he will leave Burger King and resign from the Diageo board Aug. 30. Colin Storm, CEO of Guinness plc, will become CEO of Burger King.
- David Adlerstein, DAdlerstein@bizjournals.com
A federal grand jury indictment unsealed last week said Hollywood florist Joseph Rotunno, 54, was among the Colombo crime family members involved in loan-sharking, extortion, gambling and money laundering. Rotunno, according to federal prosecutors, worked as muscle for the mob in Broward County. According to the indictment, the group concentrated on illegal gambling but also was involved in money laundering, fencing stolen property, credit card fraud and bribing state workers to get fake driver's licenses. Since 1997, the operation took in as much as $2,000 a day, according to the indictment.
- JP Bender, JPBender@bizjournals.com
A new player, Metromedia Fiber Network, joined the Network Access Point (NAP) planning group. Existing members include AT&T, EPIK Communications, Global Crossing, Level 3 Communications, NetRail and others. Metromedia Fiber Network subsidiaries include Palo Alto, Calif.-based PAIX, an operator of a secure Internet exchange, and AboveNet Communications. Still up for grabs are ownership percentages, the actual NAP site location, financing details, operating procedures and choosing the host carrier.
- Ed Duggan, EDuggan@bizjournals.com
Boca Raton-based RailAmerica (Nasdaq: RAIL), the world's largest operator of short line and regional freight railroads, outlined to shareholders its growth strategy, including a plan to reduce debt by more than $100 million. Goals for 2000 include: to integrate recent acquisitions to achieve cost savings; to grow internally through aggressive sales, marketing efforts and customer service; and to continue to reduce debt. Shareholders approved increasing authorized shares from 30 million to 60 million, and amended the company's executive incentive compensation and non-employee director stock option plans. In other news, the company appointed Terry K. Forsman VP of human resources.
Lucy Chabot, LChabot@bizjournals.com
Republic Services (NYSE: RSG), the Fort Lauderdale-based trash hauler, announced it has received approval from the U.S. Department of Justice to complete the acquisition of 15 facilities and operations in eight markets. The acquisitions are part of an asset exchange with Allied Waste Industries, headquartered in Scottsdale, Ariz. The operations include eight collection companies, four transfer stations, two Material Recovery Facilities (MRFs) and one landfill.
- John T. Fakler, JFakler@bizjournals.com
Miami Beach-based Yupi Internet, a Spanish-language portfolio of Web sites, posted a net loss for the first quarter ended March 31 of $15.3 million, compared to a net loss of $20.7 million in the fourth quarter of 1999. But it recorded record revenue for the quarter $3.6 million, a 20 percent increase over the $3 million recorded in the fourth quarter of 1999.
David Adlerstein, DAdlerstein@bizjournals.com
Sunrise-based Ursus Telecom (Nasdaq: UTCC) had flat revenues and heavy losses for the fiscal year ended March 31. Losses were $5 million, or 75 cents a share in 2000 vs. a $200,000 profit, or 3 cents a share, in fiscal 1999. Total revenue in 2000 was $33.5 million vs. $34.3 million for the previous year. Ursus closed at $7.62 a share, up $1.75, the day before results were announced. The company operates in 45 countries.
- Ed Duggan, EDuggan@bizjournals.com
Miami-based homebuilder Lennar Corp. (NYSE: LEN) reported earnings of $36.4 million or 64 cents a share for the second quarter ended May 31, compared to net earnings of $39.6 million or 63 cents a share for the same quarter last year. Revenues in the second quarter increased 31 percent to $968.2 million, compared to $738.4 million in the same period last year. These earnings reflect one month of activity from U.S. Home, a company Lennar recently acquired. In other news, Lennar announced that executive VP for strategic initiatives Isaac Heimbinder has resigned to head an Internet start-up.
- Lucy Chabot, LChabot@bizjournals.com
Miami-based Vitech America (Nasdaq: VTCH) is making a public offering of 3 million shares at $5.25 a share. The offering, made through underwriters Joseph Charles & Associates and I-Bankers Securities, was expected to close Thursday. In the past year, the stock traded between $4.37 and $12.87 a share. It closed Monday at $5.44 on volume of 57,400 shares.
- Ed Duggan, EDuggan@bizjournals.com
Boca Raton-based Sensormatic Electronics Corp. (NYSE: SRM) announced that Budgens, a food retail chain in the United Kingdom, signed an exclusive three-year contract to install Sensormatic's anti-theft, closed circuit television (CCTV) and digital security technologies in all 200 of its stores. Budgens also will implement a source tagging program.
- Lucy Chabot, LChabot@bizjournals.com
At least two lawsuits were filed against Boynton Beach's Cyber-Care (Nasdaq: CYBR) alleging the company mislead investors, bringing the number of suits seeking class action status to at least eight.
- Lucy Chabot, LChabot@bizjournals.com
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