Corporate News

Tessera Technologies Inc. (NASDAQ: TSRA) will replace Financial Federal Corp. (NYSE: FIF) in the S&P SmallCap 600 index after the close of trading on Thursday, February 18. Financial Federal is being acquired by S&P 500 constituent Peoples United Financial Inc. (NASDAQ: PBCT) in a deal expected to close on or about that date, pending final approvals.@w

RealNetworks, Inc. (NASDAQ: RNWK) and MTV Networks, a division of Viacom International, Inc. (NYSE: VIA-A and VIA-B), today announced plans to restructure their digital music service joint venture, Rhapsody America LLC, into a newly formed corporation that will operate independently from its parent companies. RealNetworks, currently the majority owner and operator of Rhapsody, and Viacom will restructure their ownership and rights in the joint venture to provide the necessary intellectual property rights to launch the new company as an independent entity. RealNetworks will also contribute operating capital as part of the transaction. Under the terms of the restructuring, which is expected to close at the end of the first quarter, RealNetworks will no longer have operating control over the venture, and Rhapsody will have no single majority owner.

"Separating Rhapsody into its own independent company is a significant first step in making RealNetworks a more focused and profitable company," said Robert Kimball, president and acting CEO for RealNetworks. "Rhapsody will be the largest pure play digital music service in the market. We have provided Rhapsody with the right team, and financial and intellectual property assets to succeed in the competitive market for digital music."

In a Form 8-K, Watts Water Technologies, Inc. (NYSE: WTS) disclosed that on February 8, 2010, the Board approved a restructuring program with respect to the Company’s operating facilities in France. The restructuring program is expected to include the shutdown of three facilities, including two manufacturing sites and one distribution center.

The program is expected to include pre-tax charges totaling approximately $12.5 million, including costs for severance, relocation, clean-up and certain asset write-downs, and result in the elimination of approximately 95 positions. Total net after-tax charges for this restructuring program are expected to be approximately $8.3 million ($1.1 million in non-cash charges), with costs being incurred through 2011. The Company expects to spend approximately $6.6 million in capital expenditures to consolidate operations. Annual cash savings, net of tax, are estimated to be $3.9 million, which the Company expects to fully realize by 2012. The Company recorded after-tax charges of approximately $3.0 million, or ($0.08) per share, in the fourth quarter of 2009 for severance and other costs related to this program.

Transcept Pharmaceuticals, Inc. (Nasdaq: TSPT) announced that the first patent covering the composition and method of use of Intermezzo (zolpidem tartrate sublingual tablet), the lead Transcept product candidate, has been issued by the United States Patent and Trademark Office. Transcept announced the issuance of a Notice of Allowance for claims under the application for this patent, U.S. Patent Application Serial No. 11/060,641, on December 14, 2009. The newly issued patent, U.S. Patent No. 7,658,945, titled "Compositions for Delivering Hypnotic Agents Across the Oral Mucosa and Methods of Use Thereof," will expire no earlier than February 2025.

Transcept Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development and commercialization of proprietary products that address important therapeutic needs in neuroscience.

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AAR CORP. (NYSE: AIR) today commented that results for the third quarter ending February 28, 2010, will be unfavorably impacted by approximately $0.10 diluted earnings per share as a result of Mesa Air Group, Inc.'s (Mesa) January 5, 2010 Chapter 11 filing under the United States Bankruptcy Code. The impact mostly reflects the Company's estimated loss on pre-petition trade accounts receivables and the reduction in the carrying value of other contract related assets.

Sales to Mesa prior to the reorganization filing approximated $70 million per year. Based upon the Company's current understanding of Mesa's requirements, the Company expects annual sales to Mesa to now approximate $45 million.

Commenting on the outlook for the third quarter, David P. Storch, Chairman and Chief Executive Officer of AAR CORP., said, "We have not yet seen the uptick in sales to commercial customers in January that we had expected. However, our defense business remains strong and after excluding the unfavorable impact of Mesa, we expect to achieve modest sequential earnings per share improvement in our Fiscal 2010 third quarter results. We also expect continued strong cash flow from operations in our third quarter."