Santa Monica-based video game developer Climax Group Inc. has been poaching its neighbors, including Activision Inc. and the local offices of competitor Electronic Arts Inc. Climax L.A. just named Erik Gloerson new studio head; he was formerly the L.A. studio manager for Westwood, Mass.-based Turbine Inc. Climax’s new lead artist, Vanessa Miles, used to be at Electronic Arts Inc., Los Angeles, where she was lead artist for “GoldenEye: Rogue Agent,” “Medal of Honor: Rising Sun” and “Medal of Honor: Frontline.” And Lead Designer Jeremy Parker came from Activision subsidiary Treyarch, where he worked on the Spider-Man series. Designer Matt Sophos, another Electronic Arts “Medal of Honor” veteran, rounds out the Climax additions as the team gears up for an undisclosed release for next-generation game consoles.
Past credits for Climax, which also has studios in London, include “Delta Force: Black Hawk Down” for Xbox, “Herbie Fully Loaded” and “Sudeki.”
Securing Losses
Despite heightened security regulations at U.S. ports, OSI Systems Inc. is struggling. The Hawthorne-based security and inspections company reported a loss of $4.0 million for the fourth quarter ended June 30, versus net income of $2.2 million in the year-ago period. Revenues rose to $100.7 million from $95.8 million.
OSI’s stock fell nearly 9 percent on the news last week.
A big factor in the quarterly results, Chief Executive Deepak Chopra said in a statement, was a $2.5 million loss at OSI’s cargo and vehicle inspection security unit, along with $4.4 million in Sarbanes-Oxley-related expenses.
The company has also been spending heavily on research and development of a radiological threat identification system, but Chopra admitted the company is waiting for U.S. government procurement decisions about its cargo products.
“There’s no assurance that those investments are going to bear fruit,” said Tim Quillin, security analyst with Stephens Inc. The company said it expects another loss for the first quarter ending Sept. 30, and anticipates a return to profitability by the second quarter. “They could get an order tomorrow that is very large, then not get another order for a year,” Quillin said.
Not So Fast
On Deloitte & Touche LLP’s list of the fastest growing technology companies in L.A., being small puts entrants at an advantage. Third-place Cyber Merchants Exchange Inc., a garment outsourcing and shipping company, reported 5,284 percent revenue growth over the past five years. Still, it reported just $2 million in revenues and a net loss of $478,000 for the fiscal year ended May 31. Its stock trades at 25 cents per share on the over-the-counter market, for a market-cap of $219,000. Deloitte said it uses strict criteria for the list, including a minimum of $1 million in operating revenues in 2004. The fastest-growing company, Santa Monica-based CaseStack Inc., is private, and reported 39,071 percent revenue growth over five years.
College Movies
USC just inked a deal with Ruckus Network Inc., a file-sharing service for movies and music, to offer its 32,000 students legal downloads for a monthly fee. Herndon Va.-based Ruckus has a network of more than 20 universities around the country. Its subscription service gives students access to 1.2 million songs and a rotating library of 45 “major studio movies” each week, and a social network where students can share files and articles legally.
For music only, USC and Ruckus charge $10 per semester, movies only cost $19.95 per semester, and the music and movie package costs $27.95 per semester.
*Staff Reporter Hilary Potkewitz can be reached at (323) 549-5225 ext. 226, or by e-mail at
[email protected]
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