SEC subpoenas Integral Systems
Integral Systems Inc., a maker of satellite systems and software, has been subpoenaed by the Securities and Exchange Commission over an executive's potentially improper role with the company. The SEC had been informally investigating whether Executive Vice President Gary A. Prince, whom the agency in 1997 barred from practicing as an accountant, was serving in that role at Integral. The agency subpoenaed the company and started a formal inquiry March 1, the Lanham company said yesterday in an SEC filing. Prince was placed on administrative paid leave in November.
Martek profit declines 32%
Although first-quarter revenue rose 12 percent, Martek Biosciences Corp.'s profit fell by 32 percent, largely because the Columbia nutritional-supplement maker spent an additional $2 million on its sales and marketing efforts. Martek recorded revenue of $70.3 million for the quarter ending Jan. 31, up from $62.9 million a year earlier. Income was $3.8 million, compared with $5.6 million a year ago. Selling, general and administrative expenses increased to $12 million from $9.9 million, as Martek tried to bolster product sales to markets outside infant formula, which has traditionally supported the company.
Medifast guidance below expectations
Medifast Inc. announced earnings guidance yesterday for 2007 that fell below analysts' expectations, causing shares to drop more than 14 percent in just two hours. The Owings Mills company, which makes ready-to-eat meals for its own weight-loss program, said the forecast includes expenses related to a $20 million marketing plan. For 2007, the company expects earnings of between 45 cents and 46 cents a share and revenue of between $85 million and $88 million. The company is scheduled to release financial results for 2006 on March 16.
SafeNet might face breakup fee
SafeNet Inc., the Harford County technology company that agreed earlier this week to a $634 million acquisition by Vector Capital of San Francisco, could face a breakup fee of as much as $22.2 million should the deal be terminated under specific circumstances, according to documents filed yesterday with the Securities and Exchange Commission. Conversely, the California company could have to pay SafeNet up to $25.4 million if the deal is scratched. SafeNet, which has been under federal investigation for months for its stock option grants, said this week that it would file additional SEC documents discussing what other offers it entertained.
Delta workers to get raises, bonus, shares
Delta Air Lines Inc. said it would give employees pay raises, a cash bonus and shares in the reorganized company later this year, rewarding workers after the carrier exits bankruptcy. The airline disclosed its plan this week in a memo to employees that didn't give specifics on the amounts.
This column was compiled from dispatches by Sun reporters, the Associated Press and Bloomberg News.