Issue of May 2, 2006
TriStrata receives $41 million award
Mary Kay Inc. must pay TriStrata Technology Inc., based in Princeton, a total of $41.4 million as part of a patent infringement judgement, a U.S. District Court in Wilmington, Del., has ruled.
In March 2005, a jury found Mary Kay liable for $26.4 million in back royalties owed to TriStrata as a result of a patent infringement suit the company brought. On March 31, 2006 the district court denied all of Mary Kay’s post trial motions. The jury judgement plus interest added to $41.4 million. Mary Kay has indicated that it will appeal.
TriStrata, a subsidiary of NeoStrata Co. Inc., is a research-based dermatological and skin care treatment company.
1st Constitution reports results
Cranbury-based 1st Constitution Bancorp announced record first quarter net income. For the quarter ended March 31, 1st Constitution net income increased 20 percent to $ 1.25 million, up from $1.05 million a year ago. At March 31, 1st Constitution had total assets of $369.1 million, a $34.8 million increase in assets in the past year. Traded on the Nasdaq national market (symbol FCCY), 1st Constitution, through its primary subsidiary, 1st Constitution Bank, operates branch banking offices in Cranbury, Hamilton, Jamesburg, Montgomery, Perth Amboy, Plainsboro, West Windsor and Princeton, and a loan production office in Fort Lee.
Tyco pays SEC $50 million
Tyco International Ltd. has paid the U.S. Securities and Exchange Commission a $50 million civil penalty settling SEC allegations that, under the leadership of former CEO Dennis Kozlowski, from 1996 through 2002 Tyco violated the federal securities laws by, among other things, utilizing various improper accounting practices and a scheme involving transactions with no economic substance to overstate its reported financial results by at least $1 billion.
The SEC said Tyco inflated its operating income by at least $500 million as a result of improper accounting practices related to some of the many acquisitions that Tyco engaged in during that time. Tyco’s operating headquarters are based in West Windsor.
High-end pet store for shopping center
A high-end pet supply store has signed a lease to occupy 6,000 square feet at the Princeton Shopping Center, with a scheduled opening in July. Cutters Mill The Natural Pet Place will take over the former Petco location at Princeton Shopping Center.
Cutter’s Mill offers natural, organic and holistic nutritional options along with unique accessories and supplies for pets. Founded in 2005, Cutter’s Mill has stores in Cherry Hill, Norristown, Pa. and Chalfont, Pa.
"Princeton is an ideal location for us. The demographics are terrific for an upscale pet store. We are looking forward to being part of the community," said Barry Lyngard, Cutter’s Mill’s president and CEO, in a prepared statement.
WorldWater losses rise for quarter, year
WorldWater & Power Corp. the Pennington-based developer and marketer of proprietary high-power solar systems, recently reported financial results for the fourth quarter and full year ended Dec. 31, 2005.
Despite accelerated project contract signings for production in 2006, revenue for the fourth quarter was $1.2 million, as compared to the $1.6 million reported in the fourth quarter of 2004. WorldWater posted an operating loss of $ 2 million compared to an operating loss of $1.8 million in the fourth quarter of 2004. For the full year, WorldWater reported revenue of $2 million versus $5.8 million in 2004, reflecting the timing of several projects pushed into 2006. The company reported a net loss for 2005 of $10.2 million versus $ 8.1 million in 2004.
J&J first quarter net grows 17 percent
New Brunswick-based Johnson & Johnson has declared a 13.6 percent increase in its quarterly dividend rate, following its previously announced increase in first quarter profit. J&J’s quarterly dividend increased to 37.5 cents per share, up from 33 cents previously. Earlier, J&J announced sales for the first quarter of $13 billion, an increase of 1.2 percent compared to the first quarter of 2005. Domestic sales were up 1.6 percent, while international sales increased 0.8 percent. Net earnings and diluted earnings per share for the first quarter of 2006 were $3.3 billion and $1.10, a 17 percent increase over net income of $2.84 billion, or 94 cents a share a year ago.
These first quarter results included an after-tax gain of $368 million associated with the termination of the Guidant acquisition agreement. The first quarter also included after-tax in-process research and development charges of $29 million associated with the acquisitions of Hand Innovations LLC and Future Medical Systems S.A.
YNB directors push at annual meeting
HAMILTON-based Yardville National Bancorp (Nasdaq: YANB) announced that Glass Lewis & Co., a leading independent proxy advisory firm, has recommended that YNB shareholders vote for the company’s slate of directors at YNB’s May 3, 2006 annual meeting of shareholders. The company previously announced that another independent proxy advisory firm, Institutional Shareholder Services, also recommended that YNB shareholders support the company’s director nominees. YNB is seeking to fend off a board challenge by a dissident group of nominees.
Previously, YNB announced net income of $5.2 million and diluted earnings per share of 46 cents for the first quarter of 2006, a decrease over net income of $5.6 million and diluted earnings per share of 51 cents for the same period a year ago. Total YNB loans increased 8.8 percent and net interest income increased 6.8 percent for the first quarter of 2006 compared to the same period last year. Total deposits increased $130.8 million, or 7.1 percent, to $1.97 billion at March 31, 2006, compared to $1.84 billion at March 31, 2005, indicating continued progress as a result of the company’s retail network expansion.