http://blog.washingtonpost.com/washbizblog/ 15 A blog about businesses in the Washington, D.C., metropolitan region, written by The Washington Post's Dan Beyers en Copyright 2008 Thu, 15 May 2008 17:46:46 -0400 http://www.movabletype.org/?v=3.36 http://blogs.law.harvard.edu/tech/rss From staff and wire reports *Constellation Energy Group said it will sell its energy consulting and management subsidiary to the company's co-founder, Andrew R. Fellon. Constellation acquired the unit, Fellon-McCord & Associates, in 2003. Financial terms of the deal weren't disclosed. The companies will maintain a "strategic alliance," Constellation of Baltimore said. The deal is expected to close on June 30. *DuPont Fabros Technology, a real estate investment trust that owns data centers, said its first-quarter profit rose to $5.57 million (16 cents a share) from $497,000 in the corresponding period a year earlier. Funds from operations, which exclude depreciation and amortization, rose to $22.5 million (34 cents), the District company said. The company went public in October. *Capital One Financial's reported losses in its credit card portfolio were relatively stable. The McLean lender wrote off $342.3 million from its $67.87 billion credit card portfolio in April, according to a http://blog.washingtonpost.com/washbizblog/2008/05/roundup_7.html http://blog.washingtonpost.com/washbizblog/2008/05/roundup_7.html Roundup Thu, 15 May 2008 17:46:46 -0400 Real estate agents Beth Doman and her son, Joe, show a foreclosed home in Ashburn that originally sold for $1.2 million. It is on the market for $850,000. (By Michael Temchine For The Washington Post) *Once-popular and riskier mortgages, such as adjustable-rate and interest-only, are beginning to take their toll on affluent neighborhoods, economists and real estate agents said, leading to an increase in foreclosures. The consequences are being seen in places such as Loudoun County, where the rapidly expanding population and income levels meant razing dairy farms for new subdivisions over the past two decades, as well as Fairfax and Montgomery counties, where new subdivisions proliferated and demand drove up prices. One in every 519 U.S. households received a foreclosure filing in April, according to RealtyTrac, an online directory of foreclosed properties. *And problems in the housing market took an increasing toll on Freddie Mac during the first http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_65.html http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_65.html Morning Brief Thu, 15 May 2008 05:00:00 -0400 The printed version of the Post 200 is hot off the presses, but the guide to Washington's largest companies, nonprofits, employers, and law and lobby firms lives on at here at washingtonpost.com. We're busy building out Web pages for each company, adding features like videos and photos, with more to come down the road. Check this space for updates. For a glimpse of our progress so far give a look at the page for Choice Hotels International and watch the video with new CEO Stephen Joyce. Over time, we hope to include videos and other multimedia for each company's page. We are also eager to run as many company photos as we can, so send along any snaps of your favorite Post 200 companies. Be sure to include information about what's in the picture and whom we should credit, as well as your name and phone number in case http://blog.washingtonpost.com/washbizblog/2008/05/from_the_editor_post_200_video.html http://blog.washingtonpost.com/washbizblog/2008/05/from_the_editor_post_200_video.html From The Editor Wed, 14 May 2008 17:46:23 -0400 From staff and wire reports * The Greater Washington Board of Trade said it hired Matt Erskine as executive director of the Greater Washington Initiative, which promotes the area to businesses. Erskine, former president of Richmond-based consulting firm Play and deputy secretary of commerce and trade for Virginia, starts July 7. The Greater Washinton Initiative said Erskine will work on increasing its budget and cultivating relationships with executives and officials. "GWI and the Board of Trade will work closely together to ensure that we are not only focused on maintaining a positive business climate for Greater Washington's existing companies, but effectively telling our story to recruit new companies to the region," said Jim Dinegar, president of the Greater Washington Board of Trade. *Stanley said fourth-quarter profit rose 70 percent, to $7.7 million (33 cents a share) from $4.5 million (20 cents) in the comparable period a year earlier. Revenue at http://blog.washingtonpost.com/washbizblog/2008/05/roundup_greater_washington_ini.html http://blog.washingtonpost.com/washbizblog/2008/05/roundup_greater_washington_ini.html Roundup Wed, 14 May 2008 17:13:50 -0400 * Not long ago, lobbyists regularly entertained lawmakers and their aides in skyboxes at local sports arenas. But after a series of scandals on Capitol Hill, the law was changed to forbid congressional officials from accepting anything of value from lobbyists without repayment -- let alone the best seats in the house. Now the Washington Redskins are talking up a new twist. Their sales force has given a one-page handout to a potential customer that states that congressional officials could accept a free "Suite Guest Pass" to a skybox as long as they have a ticket for anywhere else in the stadium, including a $25 standing-room-only ticket. The document, a copy of which was obtained by The Post, says that such guest passes allow for only a "short visit." It does not define "short visit" or say who would monitor the requirement. Several ethics experts and top lobbying managers said http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_a_return_to_sky.html http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_a_return_to_sky.html Wed, 14 May 2008 07:52:31 -0400 From staff and wire reports *Flo, a Chantilly-based start-up, said it bought the technology it needs to operate its speedy airport security lanes for $5.25 million. Launched last year, Flo has slowly been pushing its way into the "registered traveler" business, offering expedited airport security screening to passengers who voluntarily undergo a Transportation Security Administration background check. Fliers have their personal data, plus iris and fingerprint scans, put into smart cards, and at certain airports this pre-screening allows them to skip the long security lines. In October, Flo had agreed to purchase its partner Unisys Corp.'s rtGO platform, which manufactures the smart cards and the equipment to read them. Separating itself from its parent company, IdentiPHI, and raising sufficient funds had delayed the purchase until now. *Computer Sciences Corp., which manages networks for NASA and the Navy, agreed to pay $1.4 million to settle allegations that it solicited improper payments http://blog.washingtonpost.com/washbizblog/2008/05/roundup_flo_csc_sallie_mae_bea.html http://blog.washingtonpost.com/washbizblog/2008/05/roundup_flo_csc_sallie_mae_bea.html Roundup Tue, 13 May 2008 16:51:03 -0400 In last week's blog/column Tom Heath wrote about one of the Washington region's smallest businesses, an indoor swimming center for dogs only. . .This week we jump to the largest business in the region, Fannie Mae, the home mortgage giant, which probably has more revenues in a minute than the dog pool has all year. I spent some time this spring with Fannie Mae chief executive Dan Mudd, and wrote up this short profile. The piece was written prior to Fannie Mae's most recent quarterly earnings report, which was not great news. The company lost $2.2 billion in three months. Dan Mudd, 49, the son of CBS newscaster Roger Mudd, grew up in Washington and attended Sidwell Friends and later the University of Virginia, where he studied history. Here's the rest of the profile: Daniel Mudd craves the hot seat. He was a finalist for the U.S. Olympic Rowing http://blog.washingtonpost.com/washbizblog/2008/05/value_added_fannie_maes_dan_mu.html http://blog.washingtonpost.com/washbizblog/2008/05/value_added_fannie_maes_dan_mu.html Value Added Tue, 13 May 2008 14:01:31 -0400 * A developer announced plans yesterday to build a luxury hotel and high-end retail on prime downtown property where former mayor Anthony A. Williams had proposed constructing a new central public library. Mayor Adrian M. Fenty, who supported the library when he was a member of the D.C. Council, said the hotel and retail stores are better suited for the vacant District-owned land, which once housed the city's convention center, between Ninth and 10th streets NW and New York Avenue and I Street. The city is leasing the land to the developer. The hotel and retail, which a District official said will cost an estimated $150 million to build, will be part of a 10-acre site that District officials and the developer, Hines-Archstone, are promoting as a new downtown destination. The developer is building a mix of condominiums, offices, restaurants and shops, a half-acre park and a plaza on the http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_a_hotel_for_old.html http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_a_hotel_for_old.html Tue, 13 May 2008 07:03:16 -0400 Stocks overall had their first weekly drop in a month last week, with the S&P 500 dropping 1.8 percent, dragged down by fears of more losses from financial firms. *The biggest loser of the week on our list was Deltek (PROJ), whose shares fell 38 percent to close the week at $8.34. The Herndon software company said Thursday after the market closed that profit fell 21 percent in the first quarter. Shares fell more than 33 percent on Friday. It also said Thursday that Mark Wabschall, most recently finance chief of WebMethods, is joining it as CFO. Two analysts on Friday dowgraded the firm from outperform to the equivalent of hold. *Shares of FBR Capital Markets (FBCM) of Arlington fell 21 percent last week, closing at $5.09. They hit their 52-week low of $5.05 on Friday. Shares have fallen pretty steadily since the company reported a wider loss than expected http://blog.washingtonpost.com/washbizblog/2008/05/up_and_down_2.html http://blog.washingtonpost.com/washbizblog/2008/05/up_and_down_2.html Wall Street Mon, 12 May 2008 12:00:00 -0400 It's Monday, the day that we turn the Business section over to local news. And this Monday, the section is joined by The Post 200, a look at the public and private companies, banks, nonprofits, and law and lobby firms that drive the region's economy. Real estate industry analysts predict that steep price declines and foreclosures will probably be in Prince William, Loudoun and Prince George's counties. (By Tracy A Woodward -- The Washington Post) *It's commonly articulated that the Washington economy, helped by the presence of the federal government and a highly educated workforce, is somewhat insulated from recessions - like after 2001, when even with the concentration of tech companies, employment growth didn't fall as much as in the nation as a whole. But in 1991, the slowdown hit Washington harder than the country. Whether the current downturn feels like '91 or '01 depends on a few factors, http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_the_post_200.html http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_the_post_200.html Morning Brief Mon, 12 May 2008 05:00:00 -0400 Tucked inside your newspaper this Monday will be our latest little project -- the Post 200, our annual guide to Washington's largest companies, banks, nonprofits, employers and law and lobby firms. We've shaken up the publication this year and made several changes to the way we compile the list. Gone are the big Maryland and Virginia enterprises that were not headquartered in our region. In their place, we've included law and lobby firms and added more private companies and nonprofits. Firms earn their place on the list principally by being big. We judge most companies and nonprofits by the revenues they generate and throw in a sample of big out-of-state employers. Law and advocacy firms make the list by the number of lawyers they employ locally, or the lobby dollars they rake in. Banks earn their place by the size of their assets. There's lots of other ways to http://blog.washingtonpost.com/washbizblog/2008/05/from_the_who_would_be_in_your.html http://blog.washingtonpost.com/washbizblog/2008/05/from_the_who_would_be_in_your.html From The Editor Fri, 09 May 2008 12:17:21 -0400 Getty Images Photo *Radio One said it lost $18.3 million in the first quarter, compared with a profit of $744,000 in the first three months of 2007, hurt by a slump in national advertising. Chief executive Alfred C. Liggins III, left, sought to explain stock sales by him and his mother, Radio One founder Cathy Hughes and explain that a planned stock buyback will happen. The chief financial officer, Peter D. Thompson, defended the compensation packages for Liggins and Hughes. Columnist Steven Pearlstein isn't buying it. He writes that Radio One's is "the story of a management team and a tightknit board of directors who have overreached in their strategy, underperformed in executing it and sometimes put their own interests ahead of those of their public shareholders." *New Harman International Industries chief executive Dinesh C. Paliwal announced the hiring of a new chief financial officer and a new head http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_64.html http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_64.html Morning Brief Fri, 09 May 2008 05:00:00 -0400 By Frank Ahrens Discovery Communications LLC reported today that first-quarter revenue was up 12 percent, from $710 million to $795 million, on the strength of advertising and subscriber revenue at its television networks. Discovery Holding Co., controlled by billionaire media mogul John Malone, owns two-thirds of Discovery Communications, home to popular cable television shows such as "MythBusters" and "Man vs. Wild." The remaining third of the television network is owned by Advance/Newhouse Communications and founder John S. Hendricks. Discovery is in the process of becoming publicly traded. The company is soon expected to file its going-public documents at the SEC. For the first quarter, Discovery Holding's operating cash flow increased 51 percent, from $190 million to $286 million. At Discovery's U.S. cable channels, first-quarter revenue was up 3 percent, from $477 million to $491 million. Operating cash flow increased 18 percent, from $210 million to $247 million. The company reports http://blog.washingtonpost.com/washbizblog/2008/05/revenue_up_as_discovery_prepar.html http://blog.washingtonpost.com/washbizblog/2008/05/revenue_up_as_discovery_prepar.html Media Thu, 08 May 2008 13:30:02 -0400 *Argon ST said second-quarter profit grew more than 32 percent, to $5.5 million (25 cents a share) from $4.2 million (18 cents) in the comparable period a year earlier. The Fairfax-based provider of systems and services for what is known as C5ISR -- command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance said revenue grew 37.5 percent, to $88.4 million. *MCG Capital of Arlington, hurt by current credit market conditions, said profit dropped 92 percent, to $2.5 million (4 cents) from $30.5 million (50 cents). Revenue gained 7.1 percent, to $43 million. In its statement, the company said it has depended on collateralized loan obligations, or CLOs, for its investing. MCG said it believes that the problems in the CLO market will continue, forcing it to seek alternate forms of debt capital, most likely with higher costs and less favorable terms. The company reported results last night, and shares http://blog.washingtonpost.com/washbizblog/2008/05/earnings_argon_st_mcg_rcn.html http://blog.washingtonpost.com/washbizblog/2008/05/earnings_argon_st_mcg_rcn.html Earnings Thu, 08 May 2008 11:28:00 -0400 Nicholas Chabraja (Stephen Morton -- Bloomberg News) *Nicholas Chabraja was a somewhat unconventional choice to lead General Dynamics when he assumed the roles of chairman and chief executive in 1997 - he was the company's longtime lawyer, in an industry where engineers and program managers usually rise to become top executives. To succeed him, GD has tapped Jay L. Johnson, chief executive of Dominion Virginia and a retired admiral. *Marriott is evaluating whether to open a hotel in Baghdad's fortified Green Zone, responding to a request from U.S. government officials who are eager to help revive Iraq with foreign investment and economic activity. Chief executive Bill Marriott is considering the deal but is concerned about safety issues, according to someone familiar with his thinking, reports Michael Rosenwald. http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_63.html http://blog.washingtonpost.com/washbizblog/2008/05/early_briefing_63.html Morning Brief Thu, 08 May 2008 05:00:00 -0400