* United Defense Industries, an Arlington military contractor, reported higher revenue for the quarter and the year as the acquisition of a ship-repair business offset the Pentagon's cancellation of the Crusader artillery system. For the quarter ended Dec. 31, United Defense posted net income of $43.2 million (82 cents per share), up from $6 million (14 cents) in the year-earlier period. The maker of tanks and weapons reported quarterly revenue of $521.2 million, up from $404.6 million. Most of the boost came from its July acquisition of United States Marine Repair, now the company's largest business unit. Excluding the acquisition, revenue would have declined to $371.8 million. For the year, net income rose to $134.6 million ( $2.55) from $8.8 million (20 cents). Revenue increased 31 percent, to $1.73 billion from $1.32 billion in 2001, with the ship-repair business accounting for most of the growth. Shares of the company closed at $24.03, up $1.73.
* Ciena chief executive Gary B. Smith collected a $3 million bonus last year as part of a retention agreement the company offered him in 1999, according to a statement filed with the Securities and Exchange Commission. Smith was the only Ciena executive to receive a retention bonus in 2002; the company cut 2,300 jobs because its sales fell 77 percent that year. Ciena did not pay annual bonuses last year; in 2001, annual bonuses ranged from $70,000 to a high of $700,000 for Patrick H. Nettles, chairman and former chief executive. Smith, who was president and chief operating officer before taking over as CEO of the Linthicum, Md.-based firm in May 2001, also received a salary of $650,000 last year, up from $569,231 in 2001, according to the proxy statement. Nettles' salary dropped to $561,538 from $700,000 in 2001, the statement said.
* Psychiatric Genomics, a Gaithersburg biotechnology company, has laid off about half its staff of 40. Chief executive Richard E. Chipkin said the cost-cutting campaign, completed last week, was needed to keep the private firm alive. Psychiatric Genomics is developing gene-based drugs for mental illnesses including bipolar disorder, schizophrenia and autism. Its strategy is to first identify the genes and biological processes that underlie mental illness and then test thousands of chemical compounds on laboratory brain cells to discover substances that may be used for treatment. Chipkin said the company is seeking a partnership with larger drugmakers to take future treatments through the costly and time-consuming human tests needed to gain regulatory approval.
* Vocus, a privately held Lanham public relations software firm, acquired Public Affairs Technologies (PAT), a private Alexandria company that sells similar technology. Terms of the deal were not disclosed, but Vocus chief executive Rick Rudman described it as a "multimillion-dollar" cash-and-stock transaction. Rudman said most of PAT's 15-person staff will be added to Vocus' 110-person payroll. Matthew Siegal, chief executive of PAT, was a founder of Vocus who left to establish PAT in 1992. He plans to rejoin Vocus as vice president of corporate development. Rudman said the company will not maintain an office in Alexandria.
* DigitalNet, a Herndon firm that provides information technology and network services to government clients, filed for an initial public offering of its common stock that could raise up to $75 million. The company said in its filing with the Securities and Exchange Commission that it plans to use the offering's proceeds to repay debt as well as for working capital. The filing also said that the company had $367.8 million in revenue for the year ended Dec. 31 and that it has more than 60 government customers, including the state and defense departments and the National Security Agency. In October, the company acquired the government technology unit of Getronics for $223 million. The filing listed Salomon Smith Barney, Banc of America Securities, Legg Mason Wood Walker, and Raymond James and Associates as underwriters of the offering.
Compiled from reports by Washington Post staff writers, washingtonpost.com and Dow Jones News Service