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Thursday, Mar 20, 2025

The Digest

Rexhall Cuts Work Force in Half Motor-home maker Rexhall Industries Inc. of Lancaster has laid off 200 employees in response to a slumping economy that has worsened following terrorist attacks in New York and Washington, D.C. The cuts total more than 50 percent of the company’s payroll. William J. Rex, the company’s chief executive officer, is also taking a 20-percent pay cut and the salaries of other officers were cut 10 percent. For the second quarter ended June 30, Rexhall reported net income of $132,000, or 4 cents a share, on revenues of $17.97 million compared with net income of $360,000, or 11 cents a share, on $14.9 million on revenue in the same period a year ago. DataDirect Gets $9.9 Million in Funding DataDirect Networks of Chatsworth has obtained $9.9 million in first round funding from ClearLight Partners LLC, Digital Coast Ventures and PART’COM. DataDirect Networks, which develops data storage technology for storage area networks, has been self-funded during its first 13 years of business. With a growing revenue stream from its Silicon Storage Appliance, the company decided to take in additional equity capital for further expansion of the sales team, marketing initiatives and customer service support. Homestore.com Expects Pro Forma Loss Homestore.com Inc., which offers online real estate listings, announced it expects to post a pro forma loss in the third quarter as revenue will come in below estimates. The Sept. 11 attacks on the World Trade Center and the Pentagon have compounded an already deteriorating advertising market, and caused a loss of business due to the cancellation of sales visits to professional customers, the company said. Homestore.com said it now expects a pro forma loss, excluding nonrecurring items, of 1 cent to 6 cents on revenue of about $114 million to $118 million. On Sept. 6, the company reaffirmed guidance calling for a pro forma profit of 16 cents a share on revenue of $134 million. GenesisIntermedia Chief Exec Resigns GenesisIntermedia Inc. chief executive Ramy El-Batrawi has resigned since the announcement of an investigation by the Securities and Exchange Commission and Nasdaq into trading of the telemarketing company’s shares by Saudi arms dealer Adnan Khashoggi and others. The Van Nuys-based company also has fired 60 employees, or 15 percent of its 397 workers, since August. Nasdaq is probing trading in the company’s shares by Khashoggi’s Ultimate Holdings, an investment company based in Bermuda, and the SEC has launched a formal investigation. Ultimate controls 75 percent of GenesisIntermedia. Stephen A. Weber, a director, was named interim chief executive. Ground Broken on Library Expansion Construction has begun on the expansion of the West Valley Regional Branch Library. The branch at 19036 Vanowen St. will grow from 12,500 to 14,000 square feet and be outfitted with new computer technology. The branch will be closed for about a year during construction. To mitigate the effect of the construction on service, hours have been increased at branches in Studio City and Panorama City. ROAR Passes in Burbank Burbank voters have approved a measure to limit noise and growth at Burbank Airport, in the city’s first all mail-in election. With 19,092 voters casting ballots, Measure A passed with 58.3 percent of the total votes. Measure A would reduce jet noise, air pollution and traffic congestion by imposing an overnight curfew and capping the number of flights in and out of Burbank. The Burbank City Council may not approve construction or financing of “any new, rebuilt, relocated or expanded airport facility, under any conditions or due to any circumstances” unless a series of conditions are met. In addition to flight caps and a curfew, the conditions include a limit on the number of passengers annually, a new environmental impact report and an airport master plan.

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