(WisBusiness) TUES News Summary — 3 Feb. 2009

From WisBusiness.com …

— The former top exec at Third Wave Technologies warns that the recession will have a negative effect on venture capital funding, but Kevin Conroy says he’s optimistic about the long-term prospects of Madison’s tech sector.

“The venture capital funding situation is terrible, and it will probably remain so for some time,” Conroy told a WisBusiness.com-Madison Magazine luncheon at the Madison Club Monday. Conroy, who was at Third Wave from December 2005 until August 2008, helped focus the company’s medical testing product line and improve its bottom line to the point that it became an acquisition target of Hologic Inc. Hologic paid about $580 million for Third Wave.

Conroy says the major sources of VC funding, such as big pension funds, have been hurt by the stock market tumble, thus limiting capital. And he agrees angel funding may be hard to get given that individual investors, while still rich, may be less willing to divert personal resources that likely have declined in the past six months.

But the former Michigan resident says Wisconsin and Madison have a lot to offer in terms of University of Wisconsin research, the arts, solid educational institutions and quality of life. He urges business leaders to tell the story.

“The opportunity is there,” he says, joking that for too many outside the state Wisconsin equals cheesehead. “They should ban those at the airport.”

See more later in the week at WisBusiness.com, including audio of the luncheon.

— Gov. Jim Doyle wants to make Wisconsin a center of research and development and said he won’t back away from his proposal to offer a dollar-for-dollar tax credit for “companies that increase their research and development substantially” in Wisconsin. He also said he’d like to provide tax exemptions to companies purchasing equipment used for research and development.

“We can make Wisconsin truly a center for R&D, and we cannot back away from that commitment right now and say we’ll get back to that in a few years,” Doyle told a daylong conference aimed at examining long-term solutions to the state’s budget problems. The Monday conference was sponsored by Wisconsin Way, a collaborative effort by numerous groups to look at fixes to Wisconsin’s economy.

Doyle said his top priorities in the state budget are education and health care, but even those areas won’t be immune to cuts as the state wrestles with a projected $5.7 billion budget deficit, he said.

“There is no way to deal with the size and scope of the deficit we’re facing without touching every single part of that budget,” he

See more from Doyle’s speech: http://www.wisbusiness.com/index.iml?Article=147754

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Press Releases
· Coalition to Save Wisconsin Jobs: Opposition to combined reporting
· Dane County: Launches new website to promote locally grown foods
· DDN: DDN Medical Affairs launches in support of product safety, customer service
· Dept. of Commerce: Secretary Leinenkugel makes export education initiative announcement
· Dept. of Revenue: Rolls out “My Tax Account”
· ForeclosureAlarm.com: Wisconsin foreclosures up significantly in January
· IFF: Local community finance leader joins Midwest lender IFF
· Knupp & Watson: Knupp & Watson lands a Bass
· New North: New North sponsors Wisconsin wind energy seminar
· NFIB Wisconsin: Small businesses oppose balancing budget with healthcare tax
· PosiPair: Announces new website; start-up creates unique retail model for local green businesses
· Savant Capital Management: To host seminar to assist business professionals with building ideal 401(k) plans for employees
· UW-Madison: Encouraging entrepreneurs — undergraduate invention competition turns 15
· UWM, WCTC: More engineering degrees expected from new UWM-WCTC agreements
· Wisconsin Bankers Association: Wisconsin banks are strong and lending
· Wisconsin Farmers Union: WFU state convention this weekend: “Innovating, Sustaining, Renewing”

For these and more releases visit http://www.wisbusiness.com/index.iml?Content=82


TOP STORIES
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Midwest cuts 59 management and support staff jobs: Midwest Airlines announced Monday that it would eliminate 59 management and support staff jobs. The move was part of a continuing restructuring of Midwest’s work force to reflect the current size and scope of its operations and the continuing effect that the recession is having on its bookings and revenue.
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily21.html

American Girl lone bright spot in dark Mattel earnings report: Mattel Inc. on Monday reported that its fourth-quarter profit fell 46 percent, hurt by the stronger dollar and the weakest holiday season in decades. The results fell far short of analysts’ expectations and sent shares of the world’s largest toymaker plunging nearly 18 percent in early trading, falling $2.54 per share to $11.65.
http://www.madison.com/tct/business/436105

Anchor gets $110 million in Treasury cash : Anchor BanCorp Wisconsin said Monday it issued 110,000 shares of its senior preferred stock to the U.S. Treasury Department in return for $110 million in cash, effective last Friday. Anchor also issued a warrant to the Treasury Department to buy up to about 7.4 million shares of common stock at a price of $2.23 a share.
http://www.madison.com/wsj/home/biz/436111

Chico’s cuts jobs, could close 25 stores: The company operates multiple branded locations at Bayshore Mall in Glendale and at Mayfair Mall in Wauwatosa, along with a Chico’s store at Harvard Square in Brookfield. It also has an outlet location in Pleasant Prairie.
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily14.html

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WISBUSINESS FEATURED COLUMNISTS

– GREGG HOFFMANN: Contributor, WisBusiness.com

– TOM STILL: President, Wisconsin Technology Council

– JENNIFER SERENO: Senior manager, Wood Communications Group

– STEVE JAGLER: Executive editor, Small Business Times

– TOM BURZINSKI: IT executive and consultant
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TECHNOLOGY (back to top)
– Best Buy to expand electronics recycling program
http://www.madison.com/wsj/home/biz/436129

– People just can’t give up cell phones
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily18.html

– Johnson Controls gets Ford hybrid deal
http://www.jsonline.com/business/38842077.html

– Claims for specialized software tax refunds are lower than expected
http://www.jsonline.com/news/statepolitics/38840607.html

ECONOMY (back to top)
– State to give lessons in exporting
http://www.madison.com/tct/business/436104

– Macy’s cutting 7,000 jobs in restructuring
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily11.html

– Economic crisis could jumpstart health care reform
http://www.jsonline.com/news/statepolitics/38842092.html

LABOR (back to top)
– Stimulus job creation claims uncertain
http://www.leadertelegram.com/story-news.asp?id=BJ38V5HCI6A

– Brown Deer to consider sick-day ordinance
http://www.jsonline.com/news/milwaukee/38826122.html

SMALL BUSINESS (back to top)
– Lavish portable toilets a plush flush
http://www.greenbaypressgazette.com/article/20090203/GPG03/902030575/1247

– Steve Cahalan: Etched 4Ever opens in small business incubator
http://www.rivervalleynewspapers.com/articles/2009/02/01/business/00cahalan.txt

– Artist brings virtual gallery right to the customer
http://www.bizjournals.com/milwaukee/stories/2009/02/02/smallb1.html?b=1233550800^1769219

– Madison start-up goes national with FlameDisk grilling product
http://www.jsonline.com/business/38840702.html

INVESTING (back to top)
– Confessions of a Money Manager: ‘Dr. Doom’ becomes a sage
http://www.madison.com/tct/business/435886

REAL ESTATE (back to top)
– Fox Valley home sales below average
http://www.postcrescent.com/article/20090203/APC0101/902030471/1979

– Milwaukee committee OKs another $350,000 for West Pointe project
http://www.jsonline.com/news/milwaukee/38810202.html

AGRIBUSINESS (back to top)
– January Milk Prices Likely to Drop by $3.40 Cwt.
http://www.wisconsinagconnection.com/story-state.php?Id=136&yr=2009

TRANSPORTATION (back to top)
– Waukesha, Milwaukee to work together on transit
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily19.html

RETAIL (back to top)
– General Growth, owner of Mayfair, gets another loan extension
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily13.html

REGULATION (back to top)
– Manpower France fined $53.8M
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily5.html

– Oriental Theatre seeks liquor license
http://www.jsonline.com/business/38821242.html

FINANCIAL SERVICES (back to top)
– North Shore Bank gets more personal
http://www.postcrescent.com/article/20090203/APC03/902030461/1028

– Capital Credit Union to mark 75 years
http://www.postcrescent.com/article/20090203/APC03/902030474/1028

– Wells to pay $371.5M dividend to feds
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily16.html

– Study ranks Associated top Wisconsin bank
http://www.bizjournals.com/milwaukee/stories/2009/02/02/daily15.html

– Bank Mutual to buy back 1 million shares
http://www.jsonline.com/business/38827647.html

MANAGEMENT (back to top)
– Green Bay’s Cornerstone hires director of operations
http://www.greenbaypressgazette.com/article/20090203/GPG03/902030578/1247

– Foley hires former Bush administration patent official
http://www.jsonline.com/business/38821787.html

Media Partners
—Channel3000
—Small Business Times
—Madison Magazine
—BusinessWeek

National Business Roundups ( back to top)
–YAHOO FINANCE: http://finance.yahoo.com/
–CNBC BUSINESS NEWS: http://www.cnbc.com
–ABC BUSINESS NEWS: http://abcnews.go.com/sections/business/
–GOOGLE NEWS: http://news.google.com/news/en/us/business.html

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