Walt's Radiator & Muffler acquired by California company
Walt's had filed for bankruptcy protection in February, saying the region's traffic made it difficult to get parts from its distribution centers to its service centers for same-day service.
It agreed to sell its assets to the highest bidder, said Doug Danstrom, the company's former president. Danstrom, who will now be the chief operating officer, added that Allied didn't assume any of the company's $7 million in debt. There will be few changes made at Walt's and no layoffs associated with the sale, Danstrom said.
$2.5 million loan secured by Epoch Biosciences
SEATTLE — Epoch Biosciences, a Bothell company that speeds up genetic analysis, said it has secured a $2.5 million loan and a $750,000 working-capital line of credit from Silicon Valley Bank.
The company said the money will be used to expand its manufacturing capacity and for general corporate purposes. The company had $5 million in cash at the end of June, according to a filing with the Securities and Exchange Commission.
Kirkland's Hynomics raises $9.6 million in financing
BELLEVUE — Hynomics, an enterprise software company based in Kirkland, announced it has raised $9.6 million in venture capital. The round was led by Frazier Technology Ventures, Ignition Partners and Techno Venture Management.
Although the company was founded in 1995, this was its first institutional round of financing. Jon Roberts, a partner at Ignition Partners, and Michael Nowak, a general partner at Techno Venture, will join the board of directors.
Sonus gets U.S. patent on formulation for Taxol
SEATTLE — Sonus Pharmaceuticals, a Bothell biotech company, said it has received a U.S. patent covering its new formulation technology for Taxol, one of the world's best-selling cancer drugs. Sonus is working on Tocosol, a method for delivering the active ingredient in Taxol more quickly, in more intense doses, and with fewer side effects.
Nation/World
Weak economy, slow demand will hurt Nintendo's profits
LOS ANGELES — Nintendo, creator of the "Super Mario Sunshine" video game, is heading into financially stormy times as sales of its consoles fall short of expectations.
Buffetted by a weak economy in Japan, Nintendo yesterday cut its profit forecast by 11 percent to $652 million for its fiscal year ending March 31, down from previous estimates of $734 million.
It cited slower demand in Japan for its GameCube and Game Boy Advance consoles, coupled with a strong yen that devalues sales from the United States and Europe, where it reaps more than half its revenue.
The announcement cast a shadow on shares of several U.S. game publishers. Shares of THQ, which gets 26 percent of its revenue from Game Boy titles, slumped 8 percent. Activision shares lost 7.6 percent.
Sales in North America, however, remain strong, the company said.
"Things are healthy here in the U.S.," said Perrin Kaplan, vice president of marketing for Redmond-based Nintendo of America. "We continue to expect growth here."
Wal-Mart plans additions and renovations next year
LITTLE ROCK, Ark. — Wal-Mart, the world's largest retailer, announced yesterday that it plans to add as many as 165 new stores in 2003 and expand or relocate about 170 U.S. properties, continuing its aggressive expansion.
The construction will occur in Wal-Mart's fiscal 2004, which starts Feb. 1.
The additions and renovations are planned for the company's discount stores, Supercenters, Sam's Club warehouse stores and its stand-alone groceries called Neighborhood Markets.
The company has 3,335 domestic stores and 1,212 internationally. Wal-Mart has 1.3 million employees in the United States and abroad.
Charter's cash flow won't be as high as expected
NEW YORK — Charter Communications said it expects operating cash flow in the third quarter to rise by less than the 13.7 percent that it previously forecast as the cable-television company loses customers for basic service.
Charter said in a statement that it expects third-quarter revenue to rise by about 13 percent. The company said it still expects to achieve "free cash flow," operating income after capital expenditures and before depreciation and amortization, by the end of next year.
Shares of Charter's, based in St. Louis, have fallen 88 percent this year on concern about the company's rising debt. Charter's majority owner, Microsoft co-founder Paul Allen, said in a regulatory filing last month that he might take the company private or swap some of its debt for equity.
AOL's chairman bullish on future despite struggles
NEW YORK — AOL Time Warner Chairman Steve Case expressed confidence about the troubled media conglomerate's future yesterday and indicated a continuing role for him in the company.
At an investment conference sponsored by Goldman Sachs, Case acknowledged that the past year has been difficult. But he said the company has the right mix of businesses to succeed — despite accounting questions at its America Online division and a struggling stock price.
Case also sounded upbeat about his future at the company, although he did not address speculation that he is under pressure to resign.
Palm's shareholders OK reverse stock split for firm
SAN JOSE, Calif. — Palm's shareholders yesterday authorized the company's board to implement a reverse stock split to bolster the handheld computer maker's sagging share price.
The board can set the reverse split ratio between 1-for-10 and 1-for-20 at any time before April 1, 2003.
Palm, which has seen its stock price plummet from $100 per share at its initial public offering in March 2000 to 66 cents yesterday, has suffered from product-rollout glitches, weak demand and stiff competition from Microsoft.
A reverse split would help Palm prevent delisting from the Nasdaq Stock Market — a possibility if shares continue to trade below $1.
Compiled from Seattle Times business staff, the Los Angeles Times, The Associated Press and Bloomberg News.