Tuesday’s L.A. News RoundupTuesday, August 21, 2012
LAYOFFS: Qualstar Corp. said in a regulatory filing that it would reduce its workforce by 13 percent to about 61 people. The Simi Valley maker of automated data storage products said the cuts were related to phasing out unprofitable and outmoded product lines, including two tape drive products and its touchless mouse business. The company expects the job cuts to result in annual savings of about $480,000, and help it achieve profitability by the end of the current fiscal year. Qualstar’s share price last week fell 7 percent after the company reported a fiscal fourth quarter net loss on lower sales and higher costs related to a proxy battle. Shares on Tuesday fell 6.5 percent to $1.59 on the Nasdaq.
CFO SHIFT: Response Genetics Inc. said in a regulatory filing that Chief Financial Officer David D. O'Toole left the company last Wednesday, and the company had hired Kevin R. Harris to serve as interim CFO as of Monday. Until earlier this month, Harris was CFO of struggling Los Angeles security software developer CyberDefender Corp., which has been sold to Santa Monica infomercial marketer Guthy-Renker Corp. Shares on Tuesday jumped 14 percent to 91 cents on the Nasdaq, making the stock the biggest mover on the LABJ Stock Index.
RESTATEMENT: Broadway Financial Corp. said in a regulatory filing that it would restate its financial statements for fiscal 2011 and the first quarter of this year. The Los Angeles thrift, which has been a significant lender to churches and has struggled with loan losses for several years, said the restatements were related to corrections and updates to collateral valuations on certain impaired loans. The bank said that it likely will have to increase its allowance for loan losses for the quarter ended March 31. Shares were unchanged at $1.03 Tuesday on the Nasdaq.