Business Briefs: Youbet.com, Guess, Computer Sciences, Savacor, Warner Music, Peerless Systems

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– Youbet.com Inc.

agreed to buy privately held United Tote Co. for $34.2 million in cash to add wagering services and terminals for racetracks. The Woodland Hills-based online-betting site for horse racing expects to fund the purchase with cash on hand and proceeds from its shelf registration statement and a new loan facility. Youbet will assume and refinance about $14.4 million in United Tote secured debt. The acquisition, which is expected to add to Youbet’s fiscal 2006 operating results, should close within the next 60 days.


Youbet also announced its fourth-quarter growth in wagers will be “significantly lower” than the growth in the first nine months of the year. The company said its operations will be “adversely impacted” as more than 250 horse races at large tracks were cancelled due to inclement weather in October and November.



– Guess Inc.

said its same-store sales rose 15.8 percent in the month ended Nov. 26, driven by an increase in full-price purchases. The L.A.-based company said total retail sales were $58.2 million, up 25 percent from $46.6 million a year earlier.



– Computer Sciences Corp.

won a $150 million contract from the U.S. Department of Treasury to provide a range of information technology and technical services to the agency and its bureaus. The contract, which has one base year and four one-year options, helps the Internal Revenue Service and other Treasury Department units modernize computer systems and implement initiatives for e-government. El Segundo-based CSC already provided services to the department under a contract awarded in 2000.



– Savacor Inc.

agreed to be acquired by St. Jude Medical Inc. for $50 million. Savacor is an L.A.-based closely held-heart failure diagnostic and therapy guidance products developer that currently has a small implantable sensor device in clinical trials that measures body temperature and pressure in the heart’s left atrium. Additional terms tied to regulatory and sales milestones were not disclosed. The acquisition is expected to close by the end of the year. St. Paul, Minn.-based St. Jude Medical will record a $50 million charge in connection with the transaction.



– Warner Music Group Inc.

reported a fourth-quarter net loss of $30 million (21 cents per share) for the three months ended Sept. 30, compared with a loss of $137 million ($1.27) for the like period a year earlier. Revenue for the Burbank-based music industry recording company rose 13 percent to $905 million.


Excluding charges related to restructuring, a government investigation on payola and the departure of an executive, the company reported adjusted net income of $12 million (8 cents per share), compared with an adjusted net loss of $109 million ($1.01) for the like period a year earlier.



& #8226; Peerless Systems Corp.

reported third-quarter net income of $1 million (6 cents per share) for the three months ended Oct. 31, compared with a loss of $1.3 million (8 cents) for the like period a year earlier. Revenue for the El Segundo-based digital document technologies provider rose 93 percent to $9.6 million.


The company expects fourth-quarter net income in a range of $1.8 million to $2 million and revenue of between $9.8 million and $10.2 million. Full-year net income is anticipated to exceed $4.4 million with revenue of between $36.3 million and $36.7 million.

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