CONTRACTINGLockheed Combines Technology Divisions Lockheed Martin of Bethesda said it was combining two of its technology divisions, each of which reported revenue of more than $4 billion last year. Linda R. Gooden was named head of the new Gaithersburg-based unit, to be known as Information Systems & Global Services. It will employ 52,000. This is the second recent promotion for Gooden, who was named executive vice president of the information and technology services unit in December. The unit operates the Social Security Administration's information technology system and is developing an electronic case-management system called Sentinel for the FBI.
EARNINGSOnline Resources Swings to Loss, Will RestateOnline Resources of Chantilly, a provider of Web-based financial services, reported a fourth-quarter loss of $562,000 (11 cents a share), compared with a profit of $16.5 million (60 cents) in the comparable period a year earlier. Revenue grew 86 percent, to $29.4 million. For 2006, profit was $321,000 (a loss of 16 cents), compared with $22.7 million (profit of 88 cents) in 2005. Revenue grew 51.6 percent, to $91.7 million. Preferred-stock accretion caused a net loss available to common shareholders of $2.7 million for the fourth quarter of 2006 and $4 million for all of 2006. It did not affect 2005 numbers.
The firm also said it would restate its third-quarter 2006 results to properly account for convertible preferred stock. It said that it would restate after it files its annual report and that it expects profit to common shareholders to be reduced by 2 cents a share.
REGULATORSXM Says FCC Is Probing Its NetworkXM Satellite Radio Holdings of the District, which agreed to be bought by Sirius Satellite Radio, said the Federal Communications Commission is investigating its network repeaters that differ from approved designs. The probe may force XM to turn off or modify the land-based repeaters on its network, reducing service quality in some areas. BIOTECHEmergent Shares Fall as NIH Contest CanceledThe stock of Emergent BioSolutions of Gaithersburg fell 97 cents, or 6.5 percent, to close at $14.06 as the firm acknowledged that federal health officials had called off a competition to begin early stage development of another anthrax vaccine. Emergent was among the competitors for a $90 million, three-year National Institutes of Health contract to conduct research into a one-dose vaccine that could be stored at room temperature and be administered without a needle. MERGERS & ACQUISITIONSArcelor-Esmark Deal Is OffA deal to sell a division of Arcleor Mittal to Esmark of Chicago Heights, Ill., is dead, Esmark President Craig Bouchard said. Esmark sought to buy the former Weirton Steel when it appeared that Mittal, based in the Netherlands, might sell the mill to secure U.S. regulatory approval for its merger with Arcelor of Luxembourg.
But earlier this week, the Justice Department ordered Mittal to sell its Sparrows Point mill near Baltimore rather than West Virginia-based Weirton. Bouchard said the company told him Wednesday night that it would keep the West Virginia operations.