The Los Angeles area saw a slight drop in unemployment in April, to 6.1 percent from 6.5 percent a month ago, according to the Bureau of Labor Statistics. Unemployment is still a full percentage point higher than it was one year ago in the area defined as Los Angeles-Long Beach-Santa Ana. The numbers for Oxnard-Thousand Oaks-Ventura are better, with April 2008 unemployment at 5.2 percent. The San Fernando Valley is not included as a separate area in the Bureau’s analysis.
Home sales post unexpected April increase
WASHINGTON — Sales of new homes rose in April for the first time in six months, although the unexpected increase still left activity near the lowest level in 17 years. The Commerce Department reported that sales of new homes rose 3.3% in April to a seasonally adjusted annual rate of 526,000 units. But the government revised March activity lower to show an even bigger drop of 11% to an annual rate of 509,000, which was the weakest pace for sales since April 1991. Economists believe that new home sales will remain weak for some time as the housing industry struggles with falling prices and rising mortgage foreclosures, which are dumping even more homes on an already glutted market. For the full story visit http://www.latimes.com/business/la-fi-homes28-2008may28,0,2372957.story
CityWalk in cops’ spotlight
UNIVERSAL CITY – In an effort to stop a gang problem before it starts, police who patrol Universal CityWalk are getting extra help over the next month to keep the San Fernando Valley hilltop tourist attraction safe as the popular summer season heats up. For years, the restaurant, entertainment and shopping strip bordering Universal Studios has been the kind of place Los Angeles-area gang members have brought their girlfriends – but not their guns, police say. But even though gang-related crimes remain a rarity at the neon-lit beacon, the Los Angeles County Sheriff’s Department has received extra officers from the California Highway Patrol to keep gangsters from taking root and declaring it their territory. They will patrol on weekends through June. For the full story visit http://www.dailynews.com/ci_9387506
AFTRA, studios still negotiating
After nearly three weeksof negotiations, representatives of Hollywood studios and the American Federation of Television and Radio Artists talked into the night Monday, apparently moving closer to a deal on a new prime-time TV contract. The contract could be modeled on the agreement that in February ended a 100-day walkout by film and television writers, said two people close to the talks who declined to be identified. Among other things, these people said, the pact under discussion would increase the residual payments actors receive for movies and TV shows sold online and establish a pay structure for programs streamed for free over the Web, a major concern for talent unions as the Internet transforms the way entertainment is delivered. For the full story visit http://www.latimes.com/business/la-fi-aftra27-2008may27,0,3823935.story
DIC, Vivendi Sign Distribution Deal
DIC Entertainment will extend the reach of its animated programming catalogue through a digital distribution agreement with Vivendi Entertainment. Burbank-based DIC will make its programs such as Inspector Gadget, Madeline and Dino Squad available for mobile devices, through video-on-demand, and online downloads. DIC’s content has appeared on virtually every major broadcast outlet and is currently broadcast each Saturday morning on CBS’ television block “KEWLopolis.”
Area HDTV owners with cable service have limited choices
Pity the Los Angeles residents who lug home pricey high-definition television sets only to find that most of their shows don’t look much better. The entertainment capital of the world ranks last among the five biggest U.S. markets in the number of high-definition channels available to cable-TV subscribers. New York, Chicago, Houston and Philadelphia all get far more, as do such smaller cities as San Diego and Charlotte, N.C. Southern California’s No. 1 pay-TV provider, Time Warner Cable Inc., can’t improve its systems fast enough to keep up with demand for the sharper pictures of high-definition. For the full story visit http://www.latimes.com/business/la-fi-hdtv27-2008may27,0,2651157.story
Ex-Employees Pull Together When Health Net Lays Off
When Tom Smith and Susan Arcidiacono parted ways with Health Net,he took a voluntary buy out, her job was eliminated,the duo didn’t despair. Instead, they formed Professional Networking Meeting, a group for Health Net’s displaced workers. In the group, which has been up and running since late February, members share resources, network and offer emotional support, to name a few. “It began as a small group, probably about six people in the beginning. Now, it’s about 14 individuals,” said Smith, former director of meetings and special events for Health Net. “Each Monday, we gather. We hug. We share what’s happening in our [job] search. We go around the table as if we were in a hotel conference room. Each person has a spotlight. They share who they have interviews with and who they’re hoping to interview with.” For the past few months, Health Net has been slowly restructuring, offering buyouts to some employees and eliminating the jobs of others. “Business cycles dictate adjustments,” explained Health Net of California spokesman Brad Kieffer of the company’s efforts to reduce its workforce. “What we are doing, we’ve made some voluntary buyouts extended over the past several weeks to a small number of associates here in Woodland Hills. We are making every effort to ease the transition for any affected associate, and we do that by providing career counseling, job search services and continued salary.” Kieffer said that the company’s efforts at attrition will go on indefinitely. “It’s a process that’s continuing,” he said. “There’s no [end] date that’s set in stone.” As more employees transition out of the company, Smith and Arcidiacono, Health Net’s former marketing director, will extend a helping hand to them via Professional Networking Meeting. “The beauty of the group is that we all have a proven track record,” said Arcidiacono, who would like to serve as vice president of marketing for an entertainment or health care company now that she’s no longer with Health Net. “People know how we’ve done our jobs. We’re teambuilding. We’re talking about contacts that we know.” Discussions about contacts have paid off for some group participants, leading to interviews for more than one, though no job offers have been extended to anyone yet. Because each group member specializes in different areas, they are not in competition. “The nice thing about this team, and it wasn’t planned this way, is that it’s a cross section of the workplace,” said Smith, who ideally would like to find a position as a director of community relations and events. “I don’t think two people would be going after the same job, so we’re all the more supportive.” Arcidiacono, for one, has found the advice her former colleagues have given her invaluable, such as when they told her to network with the staff and community members of her child’s school. “I really hadn’t done that and once I did, it opened up a lot of doors,” she said. Another benefit Arcidiacono cites is that she’s picking up new skills by participating in the group. “After every Monday meeting, I’m personally increasing my skill net, my communication skills,” she said. “I’ve got to have much more listening skills. My interpersonal skills are being expanded. You’ve got to have compassion as well as the ability to connect. We’re all rooting for each other, and we’re all wanting to help.” For some, such as Smith, who worked for Health Net for 18 years, help comes in the form of being taught how to job search in a world dominated by the Internet. “My search today is very different than it was 18, 19 years ago,” Smith said. “Everything is electronic. In those old days, you did a little bit of networking and probably a lot of answering advertisements. I don’t know that I even had a computer in 1989 and 1990.” Though Arcidiacono worked for Health Net for a significantly shorter time, four years, she too said that she’s noticed how the Internet has changed the process of job hunting. “The whole online submission seems to be a big piece of the job search,” she said. “It could be e-mail or submissions you’re putting through Career Builder or Monster, whichever job site service you’re using.” As the members of Professional Networking Meeting face the challenges of making an unexpected career transition, they harbor no bitterness towards Health Net, both Arcidiacono and Smith insist. “This is a very positive professional group of men and women 40 and above … Everyone left on a positive note. There’s not a negative thinker here,” Smith said. As for himself, Smith said that he is making a positive transition by acknowledging that companies and cultures change. “Health Net is a wonderful company,” he said. “I’m incredibly grateful for the wonderful 18 years of employment. I’m taking on the approach that change is good. I’m excited about doing the best I can for my new employer. I leave here with nothing but gratitude.” Arcidiacono has such a pleasant view of Health Net that she remains in touch with colleagues who still work for the company. Whenever she learns that more cuts have been made, she makes sure to tell those affected about Professional Networking Meeting. Kieffer isn’t surprised that Arcidiacono and others in the group haven’t cut ties. “Health Net is a tight-knit organization, so it makes sense that these individuals are using their time so productively to find the perfect new situation,” he said. “I think it speaks to the creativity of Health Net associates that they are being so creative and so productive in finding the position that’s right for them.”
Transportation Planners Take Look at Funding
New ways of funding transportation projects and getting people out of their cars was touted by public officials and land use experts as necessary to reduce demand on roadways already strained to capacity. Proposals under consideration include a half-cent sales tax specifically to fund transportation improvements and turning some freeway lanes into toll roads during times of heavy congestion. The lack of capacity on the freeways is no longer a quality of life issue but has crossed over into an economic imperative because the rising cost of gasoline cuts into discretionary income, said David Rand, an attorney and member of the Sherman Oaks Neighborhood Council at the Mobility 21 conference in Woodland Hills that took place May 21. “More people who were reticent about using public transportation are now looking at using it and modifying their behavior,” Rand said. The conference focused on funding for transportation projects and how land use fits in with planning for transit needs in the San Fernando Valley. Mobility 21 is a coalition of transportation agencies and business organization from a five-county area. Since building new freeways or greatly expanding our existing infrastructure is not an option, city and transportation agencies need to be more efficient with what they already have. That can be achieved through “bold and controversial” ideas such as toll roads, reversible lanes, and giving economic incentives to promote carpooling, use of public transportation and telecommuting, said Gary Toebben, president and CEO of the Los Angeles Chamber of Commerce, a member of the coalition. Much discussion took place about congestion pricing allowing single-occupant vehicles to use carpool lanes for a fee that changes depending on how congested the roadway is. Metro and Caltrans received a federal grant for a pilot project on Interstates 10 and 210 that could be in place by the end of 2010. The money raised from drivers could then be used for other transportation projects. While this method is worth giving a shot, the public will only go so far with radical ideas that cost them money, said Los Angeles County Supervisor and Metro Board member Zev Yaraslovsky. Putting new commercial and residential development close to transportation hubs would help get people to use public transit rather than their cars. That is what is already taking place in North Hollywood where Metro has a Red Line subway station and the Orange Line busway, and in Universal City where there also is a Red Line station. An office and condo project is slated for the Universal Studio property, while the Metro Studio @ Lankershim project atop the Red Line station includes office and commercial space and production and broadcast facilities for NBC Universal. With the Valley lacking infill opportunities, the projects offered a good opportunity to support the viability of NBC, said Tom Smith, senior vice president of West Coast real estate for the entertainment company. NBC is still completing the environmental impact report that will identify the impact of the projects on traffic in the area. They are looking at using area shuttles for employees and future residents, and are in talks with neighboring Burbank on a bus connection with the Metrolink station in that city, Smith said.
Tech Companies Active Throughout Valley Region 2 deck
Scripps Network, the owner of the Food Network and HGTV, selected software from Xytech Systems Corp. to improve workflows at its studios, post-production, and control room operations in New York City and Tennessee. Using software from Burbank-based Xytech will allow Scripps manager to keep operations as efficient as possible, said David Metz, senior vice president, production operations, Scripps Networks. Scripps develops content for television and the Internet. Its lifestyle brands include HGTV, Food Network, DIY Network, and the Fine Living Network. Getting Scripps as a client reiterates Xytech software as the leading media business solution for the media, entertainment, and broadcasting industry, said Executive Vice President Ron Peeters. Eco-Efficiency Manager of data centers will be able to better monitor power consumption with a new test system developed by Ixia. The Calabasas company demonstrated its IxGreen system at Interop Las Vegas in April. IxGreen offers repeatable validation of individual data center elements that enable manager to achieve eco-efficient goals of cooling and power savings and reducing the carbon footprint. In a survey from March, tech consultancy firm IDC reported that half the data center managers interviewed cited power and cooling costs as one of the top three areas of IT operational costs. The goal of Ixia is to provide a product to benefit the environment, reduce energy consumption and offer real business value for our customers, said its President and CEO Atul Bhatnagar. “Looking beyond Interop, Ixia will continue to push the boundaries of innovation in Green IT testing,” Bhatnagar said. Alliance Forms Fulcrum Microsystems joined with nine other technology companies to form the ControlPoint Developer Alliance that allows members to use software for new features and customization to their hardware systems. The alliance serves a variety of equipment providers, from those who want to augment their own development efforts to those who need to acquire a complete software solution, said Mike Zeile, vice president of marketing for Calabasas-based Fulcrum. Alliance members use the ControlPoint Switch Management Software Suite on their hardware platforms, and have rights to develop their own features, or can leverage the work of other Alliance members to gain access to new capabilities. “While others seek to lock customers in with vendor-specific software, Fulcrum, with the Alliance, seeks to offer a flexible solution, with broad licensing terms, that enables equipment providers to get to market quickly with differentiated solutions,” Zeile said. Founding members of the alliance include: Continuous Computing, Green Hills Software, Liquid Computing, Nimbus Data Systems, Open Grid Computing, Panasas, Quadrics, SMC Networks and XORP. Members who develop unique software capabilities can market those capabilities to other alliance members. In Emergency Emergency response dispatchers will have the capability to instantly play back calls and radio transmissions with the Technology Refresh Program from Voice Print International. Camarillo-based VPI designed the program to meet the specific needs of the public safety and emergency services industries and replace obsolete, legacy voice logging systems. The system minimizes risk, ensures regulatory compliance, and boosts productivity. The company often hears complaints that the logger’s uptime is declining, while their maintenance costs keep rising, said Vice President of Sales and Marketing Chris Morrissey. “These outdated systems make it difficult to remain in compliance with increasingly tight regulations, offer very limited functionality, and rarely carry the necessary support,” Morrissey said. The Technology Refresh Program uses Prioriti Voice, which includes an instant recall tool letting front-line call takers and supervisors to quickly playback their most recent calls or radio transmissions with the click of a mouse even while they’re still in progress. Conference Speaker DataDirect Networks CEO Alex Bouzari took part in the JPMorgan Technology Conference on May 20 in Boston. Bouzari discussed how digital video surveillance, video-on-demand, and digital broadcasting and post production creates a demand for next generation data storage. This new digital data requires real-time, purpose-built platforms designed for massive throughput and scalable capacity. Bouzari highlighted the types of storage platforms required to support consistent, massive streams of large image files and unstructured data and how users of those platforms thrive in competitive markets. Partnership Software provider PushMX formed a partnership with Loan Toolbox, an online training and marketing provider in Westlake Village. The partnership brings together PushMX’s expertise in collaborative process management and task automation with Loan Toolbox’s knowledge of the day-to-day challenges faced by loan professionals. PushMX software focuses on coordinating and streamlining the extended mortgage team by maximizing efficiency by structuring the workflow and processing of loans. New Stock Symbol Online forum and message board developer CrowdGather Inc. changed its stock symbol to reflect its name change following a reverse merger in April. The company can now be found as CRWG on the OTC Bulletin Board. Staff Reporter Mark Madler can be reached at (818) 316-3126 or by e-mail at [email protected] .
Good Swartz Joining With East Coast Firm
By THOM SENZEE Contributing Reporter One of Southern California’s best-known mid-sized accounting firms, Good Swartz Brown and Berns LLP (GSBB), is combining forces with a New Jersey firm ten times its size. But GSBB managing partner, Scott M. Sachs, says the merger is not an acquisition of his firm by another. “Although they are decidedly larger, it is not a purchase,” Sachs said. “It is really a combination of the firms.” However, the larger firm, J.H. Cohn LLP of Roseland, N.J., will be at the front end of post-merger branding, though not initially. “During an initial period of time, that will be at least two years, we will be Good Swartz Brown and Berns, a division of J.H. Cohn LLP,” Sachs said. Actually, said Sachs, depending on how well the company is able to build brand awareness of J.H. Cohn in Southern California, the Good Swartz name might endure even longer, or could be cut sooner than two years , although, he doubts the latter scenario is likely. Operationally, not much will change at the Woodland Hills offices of the new, combined entity, Sachs said. Yet he is sure the company and its employees will be more prosperous as a result of the partnership. “We’re not changing people,” he said. “They are not bringing people from the East Coast to work in this office and live out here permanently.” Sachs, who will continue to lead the firm locally after the merger, says from a customer’s point of view, the merger process will be seamless and transparent. But, he said, his company will be able to offer customers a wider array of services in addition to traditional accounting. “In areas like tax and tax consulting, auditing and accounting work, we will have more brilliant minds to bring to the table, plus we will be able to offer things outside traditional accounting.” Those services include real estate transactions, wealth management, money management, human capital consulting (e.g., executive compensation, etc ), and international issues. “Internally, what we get is better training infrastructure,” he said. Sachs says GSBB’s training programs have been a point of pride at the firm for a long time. But he and the firm’s other partners have wanted to augment training. “We are large enough to need a robust, high-quality internal training program, but not large enough to build the one we want,” Sachs said. “We will be able to do that now.” Stewardship of younger employees is at the core of GSBB’s corporate values, said Sachs, who is himself just 42. Sachs said GSBB had had no interest in merging at first, but was willing to listen when J.H. Cohn proposed the idea. “It’s just good business to have an open mind and listen to ideas,” he said. “But we were pretty intent on staying independent.” However, Sachs said the larger firm’s people impressed him and his partners. “Sometimes you click and there is chemistry between you and the other group,” he said. “I’ve experienced just the opposite many times, but this was unique. There was an instant bond.” Both firms have reviewed ethical issues relative to the merger, and the agreement is a go in principle. Sachs expects documents to be signed in early June. “At this point the due diligence activity has been completed, and it does not appear as if there are any client conflicts,” said Thomas J. Marino, a partner at J.H. Cohn LLP, speaking to NJ Biz magazine. J.H. Cohn was founded in 1919, and has more than 1,000 employees with nine offices in New York, New Jersey, Connecticut, the Cayman Islands, and one in San Diego (also the result of a merger). With FY 2008 revenues of $221.4 million, J.H. Cohn dwarfs Good Swartz Brown and Berns, which had $22 million last year. But the companies compare almost evenly in terms of the ratio of employees to revenue. GSBB has 125 people on staff compared to J.H. Cohn’s 1,000. J.H. Cohn’s strategic growth plans include opening offices in specific major markets, rather than achieving a nationwide presence. Despite that self-imposed limit, the firm is the number 16 accounting firm in the country. Last month, the company was selected as one of the five best places to work in New Jersey by NJBiz. No exchange of cash is involved in the proposed merger.