Saban Admits Tax Shelter
Los Angeles billionaire Haim Saban testified to federal lawmakers in Washington that his involvement in an offshore tax shelter was based on the advice of an adviser who said the transaction was legal. The billionaire also said he paid fees of “close to $50 million” for what he expected would shelter him from federal taxes and also added “my formal education ended when I left high school.” The Senate Permanent Subcommittee on Investigations issued a report today that says individuals in the U.S. evade between $40 billion to $70 billion in taxes through use of shelters.
Teledyne Acquires Florida Tech Company
Teledyne Technologies Inc. said it has agreed to buy a majority stake in privately held Daytona Beach, Fla.-based Ocean Design Inc. for about $30 million. Ocean Design makes military grade sub-sea electrical and fiber-optic systems that are also used by offshore oil-drilling companies, natural gas production and oceanographic research.
CSC Wins Army IT Contract
Computer Sciences Corp. said it won a portion of an Army information technology contract valued at as much as $2 billion over the next nine years. Nine other companies won portions of the total $20 billion award. The contract calls for providing technology services in support of the Army, including securing systems, education and training, as well as maintenance work the El Segundo-based computer services firm said. Nine other companies also won pieces of the larger award.
Global ePoint Delisting Appeal is Sept. 7
Global ePoint Inc., a maker of digital surveillance and detection equipment, said it has been notified that the delisting of the company from the Nasdaq exchange has been stayed pending a written decision by the listing qualifications panel. The company said it requested an appeal following receipt of a letter from Nasdaq two weeks ago stating that the City of Industry-based company is subject to delisting due to violations of the Nasdaq marketplace rules. The panel will consider the appeal at a hearing set for September 7.
Earnings Roundup:
PS Business Parks Inc. reported second quarter net income of $4.4 million, (20 cents per share) down 24 percent (26 cents) for the same period a year earlier. Revenue for the Burbank-based media company rose 7 percent, to $59.3 million.
j2 Global Communications reported second quarter net income of $13.1 million, (26 cents per share), up 12 percent from $11.7 million (23 cents), for the same period a year earlier. Revenue for the Los Angeles-based communications company was up 27 percent to $44.4 million.
IndyMac Bancorp Inc. reported second-quarter net income of $105 million ($1.49 per share), up 28 percent from $82 million ($1.24) for the same period last year. Revenue for the Pasadena-based mortgage lender rose 31 percent to $377 million.
Zenith National Insurance Corp. reported second quarter net income of $54.1 million ($1.46 per share), up 17 percent from $46.4 million ($1.26) for the same period last year. Revenue for the Woodland Hills-based provider of workers’ compensation and reinsurance coverage was down 20 percent to $266.9 million.
Guitar Center Inc. reported second-quarter net income of $13.4 million (47 cents per share), up 4 percent from $12.9 million (46 cents) for the same period a year ago. Revenue for the Westlake Village-based music instrument retailer was up 14 percent to $458 million mainly due to increased sales, the company said.
