The Daily Record News Briefs: March 5, 2009

Daily Record, The (Baltimore), Mar 5, 2009

Martek sees profit rise

Columbia-based Martek Biosciences Corp., which makes an infant formula supplement derived from algae, said net income for its fiscal first quarter that ended Jan. 31 was $9.6 million, or 29 cents per diluted share. Last year, in the corresponding quarter, net income was $8.7 million, or 26 cents per diluted share. Revenue rose to $87.4 million in the past quarter, up 5 percent from the $82.9 million recorded in the first quarter of fiscal 2008. Higher sales to infant formula customers and other clients accounted for much of the increase, the company said.

GP Strategies reports loss

GP Strategies Corp., of Elkridge, the parent of General Physics Corp., reported a fourth-quarter net loss of $931,000, or 6 cents per diluted share, versus net income of $2.7 million, or 16 cents per diluted share, for the corresponding period in 2007. The company attributed the loss partly to a one-time, $5.5 million charge for goodwill impairment related to its 2007 acquisition of the Sandy Corp. GP's fourth-quarter revenue dropped to $63 million from $70.4 million in the prior-year period. GP is a provider of sales and technical training, e-learning, management consulting and engineering services.

BPW slashes state jobs

The Board of Public Works, the powerful panel that approves state spending, officially slashed $82 million from the state's current budget Wednesday, including about 892 vacant positions and two filled jobs. The filled positions that will be eliminated are in the governor's office and the Historic St. Mary's City Commission. The Department of Public Safety and Correctional Services will lose nearly 250 vacant positions, more than any other department. State Budget Secretary T. Eloise Foster said the cuts stemmed from a December recommendation to eliminate 1,000 vacant positions to help balance the current year's budget.

New Market landmark closes

A landmark restaurant has closed in the town known as the "antiques capital of Maryland." Mealey's Restaurant served its last meal Sunday after nearly a century of offering upscale lunches and dinners on the Main Street of New Market. Owner Chim Butt told The Frederick News-Post that the sour economy and a lack of flexibility by banks contributed to the restaurant's demise. Local art and gift shop owner David Price says the loss will be felt by other merchants in New Market who counted on Mealey's to attract visitors from out of town. The closure put 15 people out of work.

ACAS ratings downgraded

When American Capital Ltd. announced the increase in its non- performing investments, Standard & Poor's and Moody's responded by taking away investment-grade status. The action by Moody's was a five-notch downgrade. For S&P, it was only three.

Bethesda-based American Capital, a publicly traded, private equity investor and asset manager, disclosed that past-due and non- accruing investments on Dec. 31 were 14.5 percent, compared with 10.7 percent as of Sept. 30. Non-performing assets were 7.5 percent at the end of 2007. The company, which had year-end assets of $7.9 billion, owes $942 million on notes and $1.4 billion on its revolving credit line.

Lockheed work worth up to $5B

Bethesda- based Lockheed Martin Corp. said it won a 10-year defense contract potentially worth $5 billion to provide logistics help to special operations forces around the world.

The contract was awarded by the U.S. Special Operations Command. It would cover services ranging from aircraft and vehicle maintenance to information technology and electronics.

Lockheed Martin said it will repair and maintain aircraft, ground vehicles, weapons and electronics equipment. It will also manage inventories, warehouses and depots, and upgrade infrastructure including secure IT networks. The command said payment provisions would include fixed prices, incentives, and cost-reimbursement arrangements. The minimum amount guaranteed is $2.5 million, it said.

Paper ballots? Not likely

The General Assembly authorized a switch to paper ballots two years ago, but state elections officials say no vendor will be able to meet the law's requirements by Thursday's deadline for bids. Without emergency legislation, State Board of Elections officials say they won't be able to purchase a new system.

Fiscal conservatives say the estimated $39 million cost over five years is too great. Lawmakers are considering several bills concerning the 2007 decision to abandon touch-screen equipment in response to complaints that it was unreliable and susceptible to tampering.

MoCo official's action probed

Montgomery County's economic development director is on paid leave while a $25,000 grant his department awarded to his son's company is investigated. Chief Administrative Officer Timothy Firestine said Pradeep Ganguly was placed on leave Tuesday for an indefinite period while officials investigate whether he violated the county's ethics law. Ganguly has said he did not take part in any discussions or the final decision in 2007 to award the grant to WeddingWire, the Bethesda company where Ganguly's son is chief marketing officer. Ganguly said he signed a formal letter notifying the company of the grant because senior managers told him he was the only person authorized to sign it.