Business Review

Daily Record, The (Baltimore), May 19, 2006 by Daily Record Staff

Searching for answers

The state legislature's top two officials this week launched a new effort to get information about electricity price increases from Constellation Energy Group and its subsidiary, Baltimore Gas and Electric Co. House Speaker Michael Busch and Senate President Thomas V. Mike Miller said in letters to the companies' top executives they need more information to determine if the rate increase for BGE's 1.1 million residential customers is justified.

Pension fund increases

The Maryland Retirement and Pension System said its pension fund reached an all-time record high of $35.4 billion in assets as of April 30, an increase of $3.3 billion for the first 10 months of the fiscal year. "The fund continues to benefit from strong performance in the real estate and U.S. and International equities asset classes," officials said.

IRS calling

Nearly 20,000 Marylanders might be forced to find a new credit counselor as the Internal Revenue Service seeks to pull the nonprofit status of every credit counseling firm it has audited so far. The IRS said it was taking the move after finding the largest players in the industry are masquerading as charities to make a quick buck.

MedChi head to leave

T. Michael Preston, executive director of MedChi, the Maryland State Medical Society, has told the organization's board he will leave the post he has filled for the past 10 years in July. Preston said his family is relocating to the New York City area because his wife, Margaret, a banker, has a new career opportunity. MedChi officials said the board is conducting a search for a new executive director.

Windfall coming

Germantown-based Advancis Pharmaceutical Corp. has received approval from federal regulators to go forward with a new line of Keflex, its popular antibiotic that targets skin infections, which company officials believe could recapture some of the market share it has lost to generics. The company has revised its financial forecast, predicting $16 million to $17 million in revenue for 2006, a steep increase from the previous $5 million projection.

Underserved city

It is Maryland's largest city and home to scores of major businesses, but by federal standards Baltimore is still an "underserved" area. As such, early-stage technology companies in the city are eligible for a new Working Capital Loan Fund from the Maryland Technology Development Corp. Baltimore-based BA Systems LLC is the first recipient under the program.

Charitable disclosures

Gov. Robert L. Ehrlich Jr. this week signed Maryland Charitable Solicitations Act-Solicitations Disclosure Statement into law. The law, which takes effect Oct. 1, 2006, requires a charitable organization to be in total compliance with the Office of the Secretary of State's Division of Charities and Legal Services, and to receive a registration status letter from that office prior to soliciting the public. It also expands the definition of charitable contributions beyond monetary donations to include in-kind gifts, cars and property.

Anne Arundel County

Planning for pandemic

The Anne Arundel County Department of Health said its pandemic flu plan, "Response Plan for Pandemic Influenza and Highly Infectious Respiratory Diseases," is now on its Web site, www.aahealth.org. The plan follows federal and state public health guidelines, adapted for Anne Arundel County, and outlines procedures that the department will use to prepare for and respond to a flu pandemic or other respiratory illness outbreak.

Baltimore City

MuniMae expands

MuniMae, of Baltimore, which originates, services and asset- manages investments in multifamily debt and equity for its own account and on behalf of others, said it has acquired Renewable Ventures LLC, of San Francisco, a third-party financer and operator of renewable energy generation facilities. Terms were not disclosed. Renamed MMA Renewable Ventures, the company will provide third- party financing for the creation of renewable energy facilities throughout North America.

Learning with Zizzle

Educate Products, of Baltimore, which owns Hooked on Phonics, and Illinois-based Zizzle, a popular toy developer, announced an agreement to enter the educational toy category, estimated to be a $1.4 billion market in the United States alone. Zizzle will design and market a creative and educational line of portable devices and advanced learning systems under the Hooked on Phonics brand. The products, designed for children ages 3-12, will debut in 2007.

Baltimore County

Medifast boosts profit

Medifast Inc., of Owings Mills, which manufactures and markets dietary supplements, reported first-quarter net income of $1.7 million, or 13 cents per diluted share, on revenue of $19.2 million, versus net income of $507,000, or 4 cents per diluted share, on revenue of $8.3 million in 2005's first quarter.

Avatech's profit drifts

Avatech Solutions Inc., of Owings Mills, a provider of design automation software and technical support for the manufacturing, building design and engineering markets, reported net income for its fiscal third quarter ended March 31 of $1.3 million, or 7 cents per diluted share, on revenue of $11 million, versus net income of $2 million, or 14 cents per diluted share, on revenue of $10.4 million for the same period last year.