The marketing campaign for Blue Cross of California’s young adult health insurance program Tonik Health has won a national Gold Effie Award and a AAAA Jay Chiat planning award from the American Marketing Association. The brand identity, website and ad materials were crafted by Grey San Francisco. Earlier this year, the campaign garnered 11 Addy statues from the Greater San Francisco Ad Club. Tonik, offered through Blue Cross affiliate BCL & H; Insurance Co., looked to attract 19- to 29-year-old uninsured people. It was initially launched in California, but expanded into Colorado and Nevada. About 70 percent of those participating in the Tonik insurance program were previously uninsured.
NTS Buys Testing Lab
National Technical Services Inc. has acquired Dynamic Labs, an environmental testing laboratory with locations in two states, the company announced. Dynamic Labs will be included within the engineering and evaluation group of the Calabasas-based company, which provides engineering services to the defense, aerospace, telecommunications, automotive and high technology markets. The purchase continues the strong growth trend the company has established in the past few years, said President and CEO William McGinnis, in a statement. “As organizations outsource more non-core competencies, such as testing services, NTS continues to position itself as the choice for those outsourced services,” McGinnis said. Dynamic Labs has locations in Phoenix and Austin. Its lab deal with space simulation, and thermal vacuums, along with testing temperature, humidity, altitude, rain, salt fog and dust. The Dynamic Labs facilities will complement NTS facilities in Tempe, Ariz., and Plano, Texas, said NTS Director of Corporate Development Derek Coppinger. “Companies may not have the testing capability or capital to invest in large testing programs,” Coppinger said in a statement. “They do, however, need the testing completed and want it locally to help reduce costs and ensure a fast time to market.”
Monday in the Valley
Glendale Chamber of Commerce City & County Action Meeting 200 S. Louise St. Chamber Conference Room 12:00 p.m. – 1:30 p.m. (818) 240-7870
Move Takes Downward Turn
Move Inc. reported net income plummeted 94 percent to $1.7 million or $0.01 per share for the second quarter ended June 30, versus net income of $3.3 million or $0.02 per share for the same period last year. Excluding stock option expenses, the Westlake Village-based online real estate marketing company would have earned $4.3 million for the second quarter. Revenues in the second quarter rose 17 percent to $73.9 million, compared to $63.3 million for the second quarter of 2005.
Judge Strikes Down Blue Cross Suit
A superior court judge has rejected a request by the California Hospital Association that would have prohibited Blue Cross of California from paying different fees to doctors who perform colonoscopies in outpatient surgery centers. The suit charged that the policy of paying an additional fee to network physicians who perform the procedure at ambulatory surgery centers versus hospitals was an unfair business practice and possibly dangerous. They said the guidelines forced doctors to place financial considerations above patient care. Los Angeles County Superior Court Judge Carl West, however, said the policy did not interfere with a doctor’s medical decisions. According to Woodland Hills-based Blue Cross of California, hospitals typically charge as much as three times more for a colonoscopy compared to ambulatory surgery centers.
Health Net Earnings Healthy
Woodland Hills healthcare insurance provider Health Net reported second quarter earnings rose 43.8 percent from a year ago. The company earned $77 million, or $0.65 per diluted shared, compared to $53.6 million, or $0.47 a share, in 2005. Revenue rose 8.2 percent from last year to $3.27 billion, the company said. The company credited the gains to increases in enrollment.
Image Questions Board Nominees
The board of directors of Image Entertainment has urged its stockholders to reject a slate of dissident director candidates put up by Lions Gate Entertainment Corp. when the company’s annual meeting takes place in October. In a filing with the U.S. Securities and Exchange Commission dated Aug. 1, Image raised concerns over the qualifications of the seven Lions Gate-backed nominees. Lions Gate and Chatsworth-based Image have been locked in a struggle for nearly a year over control of the company. Santa Monica-based Lions Gate is the second largest stockholder of the video and music distribution company and failed in a buy out attempt last fall. Lions Gate turned to legal action to slate board nominees at the annual meeting. Four of the nominees “have limited home video entertainment distribution expertise to contribute to our company,” while three others do have managerial experience but may have conflicts of interests due to connections with competing distribution companies, the filing said. One of the Lions Gate nominees is Edward Huguez, of Starz Entertainment, and another is Eric Doctorow, recently named to manage sales of the MGM DVD catalog at 20th Century Fox Home Entertainment. “It appears from their background, current positions and actions that Lions Gate and its nominees may not be most concerned about protecting ALL of our stockholders’ interests, but rather may be concerned with their own potentially conflicting financial and business interests,” the filing said. The other Lions Gate nominees are Duke Bristow, Joachim Kiener, Barry Perlstein, Joseph Incandela, and Jack Crosby.
Superior Income Drops in 2Q
Superior Industries saw a 50 percent drop in it is net income for the second quarter ending June 30, the company reported Thursday. The Van Nuys-based auto parts manufacturer reported a net income of $2.1 million, or $0.08 per diluted share, on revenues of $219.8 million. That is a significant drop from the second quarter of 2005 when the company posted net income of $4.3 million, or $0.16 per diluted share, on revenues of $217.8 million. The company enjoyed unexpectedly strong production volumes in the second quarter as compared to our previous forecast and results were bolstered by the timing of routing summer plant shutdowns, which this year tool place at the beginning of the third quarter instead of falling into the second and third quarters as in past years, said Superior President and CEO Steven Borick. However, it was still premature to assume the current performance marks a turning point for Superior, Borick said. “We expect substantial start-up costs associated with our newest plant in Mexico to affect our third quarter results,” Borick said. “We expect this new plant to begin manufacturing wheels in the fourth quarter of this year.” Superior is making cost reduction programs and evaluating opportunities in emerging market in Asia and India, Borick said. “While we have a lot of work to do to achieve all of the operational improvements we have identified for renewed growth in the years ahead, we are focused on managing Superior for the long term, and we have the resources it takes to stay the course,” Borick said. For the first six months of the year, Superior reported net income of $3.2 million, or $0.12 per diluted share, on revenues of $403.4 million. That is a steep drop from the first six months of 2005 when the company had a net income of $14.2 million, or $0.54 per diluted share, on revenues of $420 million.
Friday in the Valley
Thousand Oaks-Westlake Village Regional Chamber of Commerce The Networking Breakfast of Champions Dr. Barton Goldsmith “Customer Service Keep Them Coming Back” Los Robles Greens Banquet Center 299 S. Moorpark Road Thousand Oaks 7 a.m.-9 a.m. (805) 370-0035 $26
Toyota’s U.S. Sales Edge Past Ford’s
American buyers are again flocking to Japanese companies in the wake of high gasoline prices. Read the New York Times’ Business Section