Archive for December, 2010
TASER International (TASR) Receives Five Significant Follow-On Orders
SCOTTSDALE, AZ — (Marketwire) — 12/08/10 — TASER International, Inc. (NASDAQ: TASR) has received five significant follow-on orders of TASER® X26™ electronic control devices (ECDs) and related accessories.
The first order received was from a U.S. federal agency to provide 692 TASER X26 ECDs with 1384 TASER® cartridges.
The other orders were from four separate international customers. These orders include a total of 3110 ADVANCED TASER® M26™ ECDs; 712 TASER X26 ECDs; 712 TASER® CAM™ units; and 65,000 TASER cartridges.
It is anticipated that these orders will ship in the 4th Quarter of 2010.
About TASER International, Inc.
TASER International, Inc. is the global leader in the development of technologies that Protect Life and Protect Truth. More than 15,800 public safety agencies in 40 countries rely on TASER electronic control devices (ECDs) also known in Canada as Conducted Energy Weapons (CEWs) to help protect and serve. TASER innovations benefit individuals and families too; providing personal protection and accountability while maintaining regard for life. TASER is committed to bringing advanced solutions to market, like TASER AXON and EVIDENCE.com — powerful evidence capturing and management platforms. Learn more about TASER International and its products at www.TASER.com or by calling (800) 978-2737.
Note to Investors
To review the TASER International Safe Harbor Statement, please visit our Investor Relations Safe Harbor Statement at www.TASER.com/safeharbor.
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CONTACT:
Steve Tuttle
Vice President of Communications
TASER International, Inc.
Media ONLY Hotline: (480) 444-4000
Texas-Based Healthcare Delivery System Expands Utilization of Streamline (STRM) Health Document Workflow Solutions
CINCINNATI, Dec. 8, 2010 /PRNewswire/ — Streamline Health Solutions, Inc. (Nasdaq: STRM), a leading provider of document workflow solutions for hospitals, today announced that one of the largest faith-based, nonprofit healthcare delivery systems in the United States, will implement Streamline Health’s Suite of Health Information Management document workflow solutions at one of its affiliate acute-care hospitals that has served Texas for more than 20 years. The hospital will integrate Streamline Health solutions into its EpicCare® medical record management system with an eye toward enhancing business processes, improving employee productivity, and promoting improved patient outcomes. The total value of the contract is estimated to exceed $370,000, excluding maintenance services; with the installation and implementation of the health information management document workflows expected to take place in late calendar 2011.
The addition of Streamline Health’s Suite of Health Information Management document workflow solutions will result in an efficient, secure and timelier method to access historical, and real-time, patient health records. The Texas-based institution seeks to advance patient care by creating more operational and financial efficiencies across the entire enterprise via the robust capabilities of Streamline Health’s document workflow solutions.
J. Brian Patsy, president and chief executive officer of Streamline Health, said, “We are pleased to be able to serve such a prestigious healthcare institution in the state of Texas. We recognize the beneficial financial impact of bridging the gaps between the various software systems utilized by the numerous departments of such a large medical institution. The medical staff will now be able to offer well-informed decisions based on patients’ historical health information on a real-time basis. We are pleased to be the solutions provider that delivers this critical value proposition.”
About Streamline Health
Streamline Health is a leading supplier of document workflow and document management tools, applications and services that assist strategic business partners and healthcare organizations to improve operational efficiencies through business process optimization. The Company provides integrated tools and technologies for automating document-intensive environments, including document workflow, document management, e-forms, connectivity, optical character recognition (OCR) and business process integration.
Streamline Health’s solutions create a permanent document-based repository of historical health information that is complementary and can be seamlessly integrated with existing disparate clinical, financial and administrative information systems, providing convenient electronic access to all forms of patient information from any location, including secure web-based access. For additional information, please visit our website at http://www.streamlinehealth.net.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995
Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to risks and uncertainties and are no guarantee of future performance. The forward looking statements contained herein are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements, included herein. These risks and uncertainties include, but are not limited to, the timing of contract negotiations and execution of contracts and the related timing of the revenue recognition related thereto, the potential cancellation of existing contracts or clients not completing projects included in the backlog, the impact of competitive products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell the Company’s products, the ability of the Company to control costs, availability of products obtained from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accountings Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry, the markets in which the Company operates and nationally, and the Company’s ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Company Contact: |
Investor Contact: |
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Streamline Health Solutions |
Lytham Partners, LLC |
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Melissa Vincent |
Joe Diaz, Robert Blum, Joe Dorame |
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Marketing Communications |
(602) 889-9700 |
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(513) 794-7100 |
STRM@lythampartners.com |
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Melissa.Vincent@streamlinehealth.net |
Tower (TOBC) and First Chester (FCEC) Shareholders Approve Acquisition
Dec. 8, 2010 (Business Wire) — Shareholders of Tower Bancorp, Inc. (“Tower”) (NASDAQ: TOBC) and First Chester County Corporation (“First Chester”) (NASDAQ: FCEC) each voted overwhelmingly today to approve the merger of Tower and First Chester.
“We are grateful for our shareholders’ overwhelming support for this merger,” said John A. Featherman III, chairman, president and CEO of First Chester. “In approving the transaction, our shareholders recognize the importance of bringing together the similar cultures and strong commitments to their respective communities of First Chester and Tower. The increased scale, strong regulatory capital, and diverse customer base of the combined company will provide a strong platform for future growth.”
Andrew Samuel, chairman and CEO of Tower, added, “We are pleased by the strong support of Tower and First Chester shareholders for this acquisition, which will provide significant growth and long-term value to employees, customers, shareholders, and the communities we serve.”
The combined organization will have approximately $2.7 billion in assets and include an increased branch network of 49 offices in central and southeastern Pennsylvania.
The parties also announced that upon completion of the transaction, the former First National Bank of Chester County branches will operate as a regional division of Tower’s bank subsidiary, Graystone Tower Bank, under the name “1N Bank, a division of Graystone Tower Bank,” while maintaining the existing “1n” logo and brand. During the initial integration period and until a division President is named, Jeff Renninger, Tower’s Chief Operating Officer, will lead the 1N Bank division team, with support from John A. Featherman III, as Chairman and Chief Executive Officer of the 1N Bank division. Additional regional executives include Dave Roland, SVP and Commercial Loan Manager and Elizabeth Golding, SVP and Retail Executive.
“Our organization continues to attract the top talent in the industry,” commented Samuel. “Dave and Liz bring a tremendous level of in-market experience to the 1N Bank division and we are thrilled to have them on our team as we seek to grow this franchise.”
The transaction is expected to close mid-December 2010, pending the satisfaction of customary closing conditions.
About Tower Bancorp, Inc.
Tower Bancorp, Inc. is the parent company of Graystone Tower Bank, a full-service community bank operating 26 branch offices in central Pennsylvania and Maryland through two divisions, Graystone Bank and Tower Bank. With total assets of approximately $1.6 billion, Tower Bancorp’s unparalleled competitive advantage is its more than 300 employees and a strong corporate culture paired with a clear vision that provides customers with uncompromising service and individualized solutions to every financial need. Tower Bancorp’s common stock is listed on the NASDAQ Global Market under the symbol “TOBC.” More information about Tower Bancorp and its divisions can be found on the internet at www.yourtowerbank.com, www.graystonebank.com and www.towerbancorp.com.
About First Chester County Corporation
First Chester County Corporation and its wholly owned subsidiary, First National Bank of Chester County, is a financial institution with $1.14 billion in assets and 23 branch offices located in Chester, Delaware, Lancaster and Cumberland counties. Founded in 1863, First National Bank of Chester County is the eighth oldest national bank in the country. First National provides quality financial services to individuals, businesses, government entities, nonprofit organizations, and community service groups. Wealth Management and Trust Services are provided through First National Wealth Management, a division of First National Bank of Chester County. For more information, visit www.1nbank.com. Mortgage services are provided through American Home Bank, a division of First National Bank of Chester County. American Home Bank (AHB) has multiple national delivery channels in the retail and wholesale mortgage arena as well as joint venture mortgage partnerships with builders and systems-built manufacturers. For more information visit www.bankahb.com.
Safe Harbor for Forward-Looking Statements
This document may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: ineffectiveness of the company’s business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations, including industry consolidation and development of competing financial products and services; interest rate movements; changes in credit quality; inability to achieve merger-related synergies; difficulties in integrating distinct business operations, including information technology difficulties; volatilities in the securities markets; and deteriorating economic conditions, and other risks and uncertainties, including those detailed in filings by Tower Bancorp, Inc. and First Chester Financial Corporation with the Securities and Exchange Commission (SEC).
Tower Bancorp, Inc.
Andrew Samuel, Chairman and CEO, 717-724-2800
or
First Chester County Corporation
John A. Featherman III, Chairman, President, and CEO, 484-881-4100
EnteroMedics (ETRM) Announces Data From Australian Patient Cohort in EMPOWER Study
ST. PAUL, MN — (Marketwire) — 11/08/10 — EnteroMedics Inc., (NASDAQ: ETRM), the developer of medical devices using neuroblocking technology to treat obesity and other gastrointestinal disorders, today announced clinical results from the Australian patient cohort of its EMPOWER™ study and from a caloric intake study of VBLOC® vagal blocking therapy delivered via the Maestro® System. The data will be presented at the 23rd Scientific Meeting of the Obesity Surgery Society of Australia and New Zealand (OSSANZ), being held November 10 – 12, 2010 in Hobart, Tasmania.
EMPOWER Study Australian Experience
The EMPOWER trial is a multi-center, randomized, double-blind, prospective, placebo-controlled pivotal study designed to evaluate the safety and efficacy of the Company’s first-generation Maestro RF System in the treatment of obesity. In October 2009, EnteroMedics announced that the EMPOWER study did meet its safety endpoint but did not meet its primary and secondary efficacy endpoints. In the Australian cohort, a total of 83 subjects were enrolled at two centers, with 61 subjects implanted. Main outcome measures were morbidity, mortality and excess weight loss (EWL) at 12 months. Results include:
- Mean 12-month EWL was 25% for the treatment group and 17% for the control group;
- Weight loss was linearly related to hours of device use; subjects with greater than or equal to 9 hours/day use achieved 37% and 21% mean EWL (treated versus control, p = .02); and
- No therapy-related serious adverse events or deaths were reported across the entire study population.
“Our experience with VBLOC Therapy in Australia is highly encouraging in that we see significant weight loss without compromise in patient safety,” said James Toouli, M.D., professor of surgery at Flinders University in Adelaide, Australia, and one of the study’s investigators. “VBLOC was found to be particularly effective when therapy was delivered over longer daily durations, with EWL reaching 37% at 12-months among treatment group subjects who used the device for greater than 9 hours each day. These data, along with results from other ongoing studies, suggest that VBLOC Therapy may represent a uniquely safe and effective surgical option for supporting weight loss in obese patients.”
Caloric Intake Study
As part of the VBLOC-DM2 ENABLE trial, a feasibility study was conducted to evaluate satiety and calorie intake in obese patients with type 2 diabetes mellitus that were implanted with the EnteroMedics’ second generation Maestro RC (Rechargeable) System. The Maestro RC System is powered by an internal battery recharged by the patient for a short time each week, providing greater convenience in adhering to recommended daily therapy. Ten obese patients at one center received VBLOC Therapy for 6 months. Follow-up included body weights; 7-day diet records assessed by a nutritionist; calorie calculations; and visual analogue scale (VAS) questions to assess satiety by 7-day or 24-hour recall at the following time periods: baseline, 4 and 12 weeks and 6 months post device initiation. A validated program, Food Works™, was used to determine calorie and nutrition content. Results include:
- Mean EWL for the study was 33% (p < 0.001) at 6 months;
- Calorie intake decreased by 45% (p < .001), 48% (p < .001) and 37% (p = .02), at 4 and 12 weeks and 6 months, respectively, from a baseline of 2,062 kcal/day; and
- VAS recall data, using a repeated measures analysis, documented fullness at the beginning of meals (p = .006) and less food consumption (p = .02) corroborating the reduction in caloric intake.
“Data from the EMPOWER and caloric intake studies demonstrate a clear consistency of weight loss and safety among obese patients using VBLOC Therapy,” said President and Chief Executive Officer Mark B. Knudson, Ph.D. “The caloric intake study in particular provides insight into the direct effects of VBLOC Therapy on diet, satiety and corresponding weight loss over a six month period. We expect that the totality of our clinical experience and the ongoing support of the Australian bariatric surgical community will contribute to our objective of commercializing the Maestro RC System in this major international market.”
EnteroMedics announced in August its plans to commercialize the Maestro RC System in Australia and to file an application for approval and listing with the Australian Therapeutic Goods Administration upon CE Mark certification of the Maestro RC System. The Company also announced that it has entered into a cooperation agreement with the Australian Institute of Weight Control (AIWC), a network of bariatric clinics specializing in laparoscopic weight loss surgery and clinical research for the morbidly obese, to help commercialize and market the Maestro System in Australia, among other efforts.
About Obesity in Australia
According to the Australian Bureau of Statistics, in 2008 sixty-two percent of all adults in Australia were either overweight (BMI > 25) or obese (BMI > 30). It is estimated that by 2025, 7.2 million Australians could be obese. The Australian Federal Minister has declared obesity a national priority, with obesity related costs exceeding $21 billion annually. Approximately 13,900 bariatric surgeries were performed in Australia in 2008.
About VBLOC Therapy
EnteroMedics developed VBLOC® vagal blocking therapy to offer bariatric surgeons and their patients a less invasive alternative to existing surgical weight loss procedures that may present significant risks and alter digestive system anatomy, lifestyle and food choices. VBLOC Therapy is delivered via the Maestro® System through laparoscopically implanted leads to intermittently block the vagus nerves using high-frequency, low-energy electrical impulses. VBLOC Therapy is designed to target the multiple digestive functions under control of the vagus nerves and to affect the perception of hunger and fullness.
About the EMPOWER Trial
The EMPOWER trial is a multi-center, randomized, double-blind, prospective, placebo-controlled pivotal study. On October 2, 2009, EnteroMedics announced preliminary results from the trial indicating that based on an initial analysis, the study met its safety endpoint, but did not meet its primary and secondary efficacy endpoints. The overall study results showed that for all patients (n=253), the average EWL at 12 months was 16.6% EWL (BMI) from implant (12.1% from initiation, MetLife) for the treatment arm and 16.4% EWL (BMI) from implant (12.0% from initiation, MetLife) for the control arm. The review further suggests that patients that used the device for the prescribed amount of time (greater than or equal to 9 hours) had clinically meaningful weight-loss, that both the treatment and control arm subjects experienced comparable, significant, dose-dependent EWL at 12 months, and that there was an unanticipated therapeutic effect in which a low-intensity blocking signal introduced VBLOC therapy in human subjects in the control group. As of October 20, 2010, 159 patients have an average EWL of 19.4% at 24 months.
About the VBLOC-DM2 ENABLE Trial
The VBLOC- DM2 ENABLE trial is an international, open-label, prospective, multi-center study designed to evaluate the efficacy of VBLOC therapy by measuring average percentage EWL, HbA1c (blood sugar) and FPG (fasting plasma glucose) and blood pressure at one week, one month, three, six and 12 months and possibly longer in approximately 30 subjects. The Maestro RC System is powered by an internal battery recharged via an external mobile charger and transmit coil worn by the patient for a short time each week. To date, no deaths or medically serious device related adverse events have been reported during the VBLOC-DM2 ENABLE trial and the safety profile is similar to that seen in the other VBLOC trials. As of October 20, 2010, 25 subjects have an average EWL of 25.3% and a one percentage point reduction in HbA1c levels from 7.6% to 6.6% at 12 months.
About EnteroMedics Inc.
EnteroMedics is a development stage medical device company focused on the design and development of devices that use neuroblocking technology to treat obesity and other gastrointestinal disorders. EnteroMedics’ proprietary neuroblocking technology, VBLOC® vagal blocking therapy, is designed to intermittently block the vagus nerves using high-frequency, low-energy, electrical impulses. These electrical impulses are delivered by a neuroregulator which is powered either by an external controller (Maestro RF System) or an integrated rechargeable battery (EnteroMedics’ next-generation Maestro RC System). EnteroMedics is currently conducting a feasibility study examining VBLOC Therapy’s effects on blood glucose levels in diabetic patients outside of the United States. For more information, visit www.enteromedics.com.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements about EnteroMedics Inc. Our actual results could differ materially from those discussed due to known and unknown risks, uncertainties and other factors including our limited history of operations; our losses since inception and for the foreseeable future; our lack of regulatory approval for our Maestro® System for the treatment of obesity; our preliminary findings from our EMPOWER™ pivotal trial; our ability to comply with the Nasdaq continued listing requirements; our ability to commercialize our Maestro System; our dependence on third parties to initiate and perform our clinical trials; the need to obtain regulatory approval for any modifications to our Maestro System; physician adoption of our Maestro System and VBLOC® vagal blocking therapy; our ability to obtain third party coding, coverage or payment levels; ongoing regulatory compliance; our dependence on third party manufacturers and suppliers; the successful development of our sales and marketing capabilities; our ability to raise additional capital when needed; our ability to attract and retain management and other personnel and to manage our growth effectively; potential product liability claims; potential healthcare fraud and abuse claims; healthcare legislative reform and our ability to obtain and maintain intellectual property protection for our technology and products. These and additional risks and uncertainties are described more fully in the Company’s filings with the Securities and Exchange Commission, particularly those factors identified as “risk factors” in the Company’s Form 10-K dated March 29, 2010. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
Caution-Investigational device. Limited by U.S. Federal law to investigational use.
The implantation procedure and usage of the Maestro® System carry some risks, such as the risk generally associated with laparoscopic procedures and those related to treatment as described in the EMPOWER clinical trial informed consent.
Contact:
EnteroMedics Inc.
Greg S. Lea
(651) 789-2860
YM BioSciences (YMI) Notice of Analyst Meeting and Conference Call
ORLANDO – YM BioSciences Inc. (NYSE Amex: YMI; TSX: YM) announced that it will hold an analyst meeting and conference call today at 12:30pm ET to discuss the interim results from the first 60 patients enrolled in the 140 patient Phase I/II trial of its JAK1/JAK2 inhibitor, CYT387, in myelofibrosis.
An oral presentation of the interim results will be delivered by the Principal Investigator of the trial, Dr. Animesh Pardanani, Mayo Clinic (Rochester, Minnesota) today at 11:15am ET at the 52nd American Society of Hematology (ASH) Annual Meeting being held in Orlando, Florida. The presentation will be held in the Orange County Convention Center, Valencia B/C as part of the session named Myeloproliferative Syndromes: Clinical and Translational Advances in Myeloproliferative Neoplasms. The presentation is entitled: “A Phase I/II Study of CYT387, an oral JAK-1/2 inhibitor, in Myelofibrosis: Significant Response Rates in Anemia, Splenomegaly, and Constitutional Symptoms”.
Following the presentation, those attending the conference are invited to join YM Management at the Hilton Orlando, Lake Sheen A Room, to discuss these results. The meeting will be hosted by Dr. Nick Glover, President and Chief Executive Officer of YM BioSciences and will include a re-presentation of the results by Dr. Pardanani, joined by the study’s Chair, Dr. Ayalew Tefferi, Mayo Clinic. Also participating will be Dr. Mark Kowalski, Chief Medical Officer and Vice President, Regulatory Affairs, Dr. Gregg Smith, Vice President, Australian Operations and Dr. Chris Burns, Director, Research, YM BioSciences Australia.
Analysts and professional investors may also participate in the meeting by conference call. A webcast of the meeting will be available on YM’s website: www.ymbiosciences.com.
Meeting/Conference Call Details:
DATE: TIME: DIAL IN NUMBER: MEETING LOCATION: |
December 6, 2010 12:30pm Eastern Time (647) 427-7450 or (888) 231-8191 Hilton Orlando, Lake Sheen A Room |
For more information on the CYT387 Phase I/II trial, go to:
http://clinicaltrials.gov/ct2/show/NCT00935987?term=cyt387&rank=1
About CYT387:
CYT387 is an inhibitor of the kinase enzymes JAK1 and JAK2, which have been implicated in a family of hematological conditions known as myeloproliferative neoplasms, including myelofibrosis, and as well in numerous other disorders including indications in hematology, oncology and inflammatory diseases. Myelofibrosis is a chronic debilitating disease in which a patient’s bone marrow is replaced by scar tissue and for which treatment options are limited or unsatisfactory. The U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation to CYT387 for the treatment of myelofibrosis.
YM BioSciences retains the global commercialization rights to CYT387.
About YM BioSciences
YM BioSciences Inc. is a drug development company advancing three clinical-stage products: CYT387, a small molecule, dual inhibitor of JAK1/JAK2 kinase; nimotuzumab, an EGFR-targeting monoclonal antibody; and CYT997, a potent vascular disrupting agent (VDA).
CYT387 is an orally administered inhibitor of both the JAK1 and JAK2 kinase enzymes, which have been implicated in a number of immune cell disorders including myeloproliferative disorders and inflammatory diseases as well as certain cancers. CYT387 is currently in a Phase I/II trial in myelofibrosis. Nimotuzumab is a humanized monoclonal antibody targeting EGFR with an enhanced side effect profile. Nimotuzumab is being evaluated in numerous Phase II and III trials worldwide by YM’s licensees. CYT997 is an orally-available small molecule therapeutic with dual mechanisms of vascular disruption and cytotoxicity, and is currently in a Phase II trial for glioblastoma multiforme. In addition to YM’s three clinical stage products, the Company has a library of more than 4,000 novel compounds identified through internal research conducted at YM BioSciences Australia which are currently being evaluated.
This press release may contain forward-looking statements, which reflect the Company’s current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process or the ability to obtain drug product in sufficient quantity or at standards acceptable to health regulatory authorities to complete clinical trials or to meet commercial demand; and other risks detailed from time to time in the Company’s ongoing quarterly and annual reporting. Certain of the assumptions made in preparing forward-looking statements include but are not limited to the following: that nimotuzumab will continue to demonstrate a competitive safety profile in ongoing and future clinical trials; that our JAK1/JAK2 inhibitor CYT387 and our VDA small molecule CYT997 will generate positive efficacy and safety data in future clinical trials; that YM and its various partners will complete their respective clinical trials within the timelines communicated in this release. Except as required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE YM BioSciences Inc.
Caraco (CPD) Receives Sun Pharma Proposal to Purchase All Outstanding Shares
DETROIT, Dec. 6, 2010 /PRNewswire-FirstCall/ — Caraco Pharmaceutical Laboratories, Ltd. (NYSE Amex: CPD) reports receipt of a proposal from Sun Pharmaceutical Industries Ltd. (“Sun”) and Sun Pharma Global, Inc (“Sun Global”) for a going private transaction by which Sun, Sun Global, and/or one or more of their affiliates would acquire all of the outstanding shares of Caraco common stock not held by Sun or Sun Global for a per share consideration of $4.75 in cash. This represents a 5% premium over the closing price of Caraco Common Stock on Dec 2, 2010.
The Board of Directors will meet on Tuesday Dec 7, 2010 to discuss this proposal and decide the next steps to be taken.
Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops, manufactures, markets and distributes generic pharmaceuticals to the nation’s largest wholesalers, distributors, drugstore chains and managed care providers.
Safe Harbor: This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Without limitation, the words “believe” or “expect” and similar expressions are intended to identify forward-looking statements. Such statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are contained in the Corporation’s filings with the Securities and Exchange Commission, including Part I, Item 1A of our most recent Form 10-K, and include but are not limited to: (i) that the information is of a preliminary nature and may be subject to further adjustment; (ii) not obtaining FDA approval for new products or delays in receiving FDA approvals; (iii) governmental restrictions on the sale of certain products; (iv) dependence on key personnel; (v) development by competitors of new or superior products or cheaper products or new technology for the production of products or the entry into the market of new competitors; (vi) market and customer acceptance and demand for new pharmaceutical products; (vii) availability of raw materials in a timely manner, at competitive prices, and in required quantities; (viii) timing and success of product development and launch; (ix) integrity and reliability of the Company’s data; (x) lack of success in attaining full compliance with regard to regulatory and cGMP compliance; (xi) dependence on limited customer base; (xii) occasional credits to certain customers reflecting price reductions on products previously sold to them and still available as shelf-stock; (xiii) possibility of an incorrect estimate of charge-backs and the impact of such an incorrect estimate on net sales, gross profit and net income; (xiv) dependence on few products generating majority of sales; (xv) product liability claims for which the Company may be inadequately insured; (xvi) subjectivity in judgment of management in applying certain significant accounting policies derived based on historical experience, terms of contracts, our observations of trends of industry, information received from our customers and other sources, to estimate revenues, accounts receivable allowances including chargebacks, rebates, income taxes, values of assets and inventories; (xvii) litigation involving claims of patent infringement; (xviii) material litigation from product recalls; (xix) the purported class action lawsuits alleging federal securities laws violations; (xx) delays in returning the Company’s products to market, including loss of market share; (xxi) excessive dependency for revenues on the Marketing Agreement and Distribution and Sale Agreement, both signed with Sun Pharma; (xxii) excessive dependency on Sun Pharma and other third parties for manufacture of Caraco owned products; and (xxiii) other risks identified in this report and identified from time to time in our periodic reports and registration statements filed with the Securities and Exchange Commission. These forward-looking statements represent our judgment as of the date of this report. We disclaim, however, any intent or obligation to update our forward-looking statements.
SOURCE Caraco Pharmaceutical Laboratories, Ltd.
LaBarge (LB) Awarded $4 Million in Contracts from Atlantic Inertial Systems
Dec. 6, 2010 (Business Wire) — LaBarge, Inc. (NYSE Amex: LB), a provider of electronics manufacturing services (EMS), has been awarded contracts valued at $4 million from Atlantic Inertial Systems (AIS), which is part of Goodrich Corporation. LaBarge will continue to provide AIS with high-reliability printed circuit board assemblies for navigation and guidance systems used in a variety of missile programs. LaBarge anticipates follow-on orders.
The new contracts extend production for AIS at LaBarge’s Tulsa, Okla., manufacturing facility through December 2012.
LaBarge, Inc. is a broad-based provider of electronics to technology-driven companies in diverse markets. The Company provides its customers with sophisticated electronic and electromechanical products through contract design and manufacturing services. Headquartered in St. Louis, LaBarge has operations in Arkansas, Missouri, Oklahoma, Pennsylvania, Texas and Wisconsin. The Company’s Web site may be accessed at http://www.labarge.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. Actual results may differ materially from such statements due to a variety of factors that could adversely affect LaBarge, Inc.’s operating results. These risks and factors are set forth in documents LaBarge, Inc. files with the Securities and Exchange Commission, specifically in the Company’s most recent Annual Report on Form 10-K and other reports it files from time to time. These forward-looking statements speak only as of the date such statements were made, or as of the date of the report or document in which they are contained, and the Company undertakes no obligation to update such information.
LaBarge, Inc.
Colleen Clements, 314-997-0800, ext. 409
Radware (RDWR) Helps SK Group Support Next-Generation Unified Communications Platform
MAHWAH, N.J., Dec. 6, 2010 /PRNewswire-FirstCall/ — Radware (Nasdaq: RDWR), a leading provider of integrated application delivery solutions for business-smart networking, today announced that SK C&C, a leading IT service provider in Korea, has successfully deployed Alteon® 5412 application switches to build a robust, uninterrupted web portal service and reduce total cost of ownership for the SK Group.
With more than 30,000 employees in 113 offices worldwide, SK Group was faced with a challenge to find a single platform that would allow for seamless and effective internal communications and able to best address the latest trends of mobile data and applications – being used more and more within the company. Therefore, SK C&C came to Radware with a request for proven stability as a key factor to provide non-stop service for all of the SK Group employees, in addition to addressing network capacity and availability challenges whilst providing an easy-to-manage solution to further save on operational costs.
SK C&C chose to upgrade and deploy Radware’s Alteon 5412 as it provided the best solution to answer these needs. The Alteon 5412 uniquely provides higher port density with 10GE connectivity which allows SK C&C to design a more flexible and fully-redundant network topology. Additionally, various standard-based network link failover mechanisms help SK C&C prevent physical loop and supports fastest link / traffic failover. As a result, the productivity has greatly improved in light of faster communication. The new infrastructure also equips SK Group to meet the increasing traffic and volatile network demand.
Additionally, total cost of ownership has been significantly reduced as Alteon 5412 utilizes the same Alteon OS as previous versions thus, reducing the learning curve and associated training costs making it easier to deploy and integrate into the existing network. Furthermore, the on demand approach offered by this Radware platform enables SK C&C to overcome capacity planning challenges and further reduce risks associated with data center growth for better investment protection.
“Radware’s Alteon 5412 has enabled us to secure the service stability of the Group portal and reduce operating costs. Also, we believe that the Radware’s on-demand technology and performance superiority will help us tackle the increasing traffic challenges of the future,” said Mr. Kwon Oh-In of the SK C&C NS Team. “This high availability, uninterrupted group portal service and mobile office platform makes internal communications between head quarters and the affiliates more seamless and increases our productivity.”
“The Alteon 5412 is an ideal ADC solution for the integrated service of large data centers in terms of traffic processing, scalability and port density. It provides the market’s most powerful ADC platform with better performance than the competition, as well as a market-first Hypervisor-based ADC virtualization solution which addresses SK C&C future development,” said Mr. Kevin Kim, Country Manager of Radware Korea. “With our professional and well experienced local team, we are confident we will provide the best service and solution to the SK C&C Group.”
Radware has incorporated the Alteon product family into its Business Smart Data Center solutions and strategy. The Alteon 5412 embeds Radware’s on demand infrastructure approach ensuring Alteon customers can gain throughput and service scalability based on business demand.
About SK C&C
Since its foundation in 1991, SK C&C has provided IT consulting, systems integration and maintenance services to financial services, communications, energy, logistics and other industries as well as public institutions throughout Korea. As a growing global IT service leader, SK C&C has also started various new businesses from green IT to ICT convergence focusing on global markets.
About Radware
Radware (Nasdaq: RDWR), the global leader in integrated application delivery solutions, assures the full availability, maximum performance, and complete security of business-critical applications for nearly 10,000 enterprises and carriers worldwide. With APSolute®, Radware’s comprehensive and award-winning suite of application delivery and network security products, companies in every industry can drive business productivity, improve profitability, and reduce IT operating and infrastructure costs by making their networks “business smart”. For more information, please visit www.radware.com.
This press release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the Application Switching or Network Security industry, changes in demand for Application Switching or Network Security products, the timing and amount or cancellation of orders and other risks detailed from time to time in Radware’s filings with the Securities and Exchange Commission, including Radware’s Form 20-F.
Press Relations: |
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Joyce Anne Shulman |
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+1 201 785 3209 |
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joyceannes@radware.com |
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SOURCE Radware Ltd.
Verigy (VRGY) Announces Receipt of Unsolicited Proposal From Advantest
CUPERTINO, CA — (Marketwire) — 12/06/10 — Verigy Ltd. (NASDAQ: VRGY) today announced that it has received an unsolicited proposal from Advantest Corporation (NYSE: ATE) to acquire all of the outstanding Verigy ordinary shares for $12.15 per share in cash.
The Verigy Board has reviewed the Advantest proposal and determined that it is not superior to Verigy’s pending transaction with LTX-Credence (NASDAQ: LTXC). However, the Verigy Board believes the Advantest proposal might lead to a superior transaction so it has determined to engage in discussions with Advantest. There can be no assurances that any definitive agreement or transaction will result from the Advantest proposal or Verigy’s discussions with Advantest.
The Verigy Board continues to believe in the compelling strategic and financial merits of its proposed transaction with LTX-Credence, and continues to recommend the LTX-Credence transaction to its shareholders. The Verigy Board is not withdrawing its recommendation with respect to the LTX-Credence transaction, or proposing to do so, and is not making any recommendation with respect to the Advantest proposal.
A copy of Advantest’s proposal to Verigy will be filed with the Securities and Exchange Commission.
Morgan Stanley is acting as financial advisor to Verigy. Wilson Sonsini Goodrich & Rosati is acting as Verigy’s U.S. legal counsel and Allen & Gledhill is acting as Verigy’s Singapore counsel.
About Verigy
Verigy provides advanced semiconductor test systems and solutions used by leading companies worldwide in design validation, characterization, and high-volume manufacturing test. Verigy offers scalable platforms for a wide range of system-on-chip (SOC) test solutions, and memory test solutions for Flash, DRAM including high-speed memories, as well as multi-chip packages (MCP). Verigy also provides advanced analysis tools that accelerate design debug and yield ramp processes. Additional information about Verigy can be found at www.verigy.com.
Additional Information and Where You Can Find It
On November 17, 2010, Verigy and LTX-Credence entered into a definitive agreement providing for a business combination of the two companies. In connection with the proposed transaction, Verigy will file a registration statement on Form S-4 with the SEC containing a joint proxy statement/prospectus. The joint proxy statement/prospectus will be mailed to the shareholders of Verigy and LTX-Credence. Investors and shareholders of Verigy and LTX-Credence are urged to read the registration statement and joint proxy statement/prospectus when it becomes available because it will contain important information about Verigy, LTX-Credence and the proposed transaction. The registration statement and joint proxy statement/prospectus (when they become available), and any other documents filed by Verigy or LTX-Credence with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Verigy and LTX-Credence by contacting, respectively, Verigy Investor Relations by e-mail at judy.davies@verigy.com or by telephone at 1-408-864-7549 or by contacting LTX-Credence Investor Relations by e-mail at rich_yerganian@ltxc.com or by telephone at 1-781-467-5063. Investors and security holders are urged to read the registration statement, joint proxy statement/prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction. Verigy, LTX-Credence and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from their shareholders in favor of the proposed transaction. Information about the directors and executive officers of Verigy and LTX-Credence and their respective interests in the proposed transaction will be available in the joint proxy statement/prospectus. Additional information regarding the Verigy directors and executive officers is also included in Verigy’s proxy statement for its 2010 Annual Meeting of Shareholders, which was filed with the SEC on February 23, 2010. As of February 12, 2010, Verigy’s directors and executive officers beneficially owned approximately 1,595,151 shares, or 2.7 percent, of Verigy’s ordinary shares. Additional information regarding the LTX-Credence directors and executive officers is also included in LTX-Credence’s proxy statement for its 2011 Annual Meeting of Stockholders, which was filed with the SEC on November 8, 2010. As of September 30, 2010, LTX-Credence’s directors and executive officers beneficially owned approximately 1,940,204 shares, or 3.9 percent, of LTX-Credence’s common stock. These documents are available free of charge at the SEC’s web site at www.sec.gov and from Verigy and LTX-Credence, respectively, at the e-mail addresses and phone numbers listed above.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that may be deemed to be forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on Verigy and its Board of Directors’ current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in these statements. These statements include that Advantest proposal might lead to a superior proposal; that the proposed LTX-Credence transaction will have compelling strategic and financial benefits; the Board’s continued recommendation of the LTX-Credence transaction to its shareholders; and other statements regarding the possible transactions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “should,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the inability of Verigy and Advantest to agree on the parameters of their discussions; actions of LTX-Credence in response to any discussions with Advantest; the results of discussions with Advantest; the impact of actions of other parties with respect to any discussions and the potential consummation of the proposed transaction with LTX-Credence; the commencement of litigation relating to the discussions or to the proposed transaction with LTX-Credence; changes in the proposal from Advantest; failure of the Verigy and LTX-Credence shareholders to approve the proposed transaction; the challenges and costs of closing, integrating, restructuring and achieving anticipated synergies from the Verigy and LTX-Credence transaction; the ability to retain key employees; and other economic, business, competitive, and/or regulatory factors affecting the businesses of Verigy and LTX-Credence generally, including those set forth in the filings of Verigy and LTX-Credence with the Securities and Exchange Commission, especially in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of their respective annual reports on Form 10-K and quarterly reports on Form 10-Q, their current reports on Form 8-K and other SEC filings. Verigy and LTX-Credence are under no obligation to (and expressly disclaim any such obligation to) update or alter any forward-looking statements as a result of developments occurring after the date of this press release.
Responsibility Statement
The Directors of Verigy (including any who may have delegated detailed supervision of this press release) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this press release are fair and accurate and that no material facts have been omitted from this press release, and they jointly and severally accept responsibility accordingly.
Where any information has been extracted or reproduced from published or publicly available sources (including, without limitation, in relation to LTX-Credence), the sole responsibility of the Directors of Verigy has been to ensure through reasonable enquiries that such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release.
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Contacts:
Judy Davies
Vice President, Investor Relations and Marketing Communications
408-864-7549
Email Contact
Matt Sherman / Jamie Moser / Jed Repko / Joele Frank
Wilkinson Brimmer Katcher
212-355-4449
Arthur Crozier / Jennifer Shotwell / Scott Winter
Innisfree M&A Incorporated
212-750-5833
China Shen Zhou (SHZ) Announces Operational and Financial Guidance
BEIJING, Dec. 3, 2010 /PRNewswire-Asia-FirstCall/ — China Shen Zhou Mining & Resources, Inc. (NYSE Amex: SHZ) (“China Shen Zhou”, or the “Company”), a Company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that management has set revenue guidance for the 2010 year, and both operational and financial guidance for the next year to end December 31, 2011.
For the 2010 year, net revenues are expected to grow organically to approximately $14.5 million compared with $4.2 million in 2009.
For 2011, China Shen Zhou expects production to reach approximately 60,000 metric tons of fluorite powder and approximately 40,000 metric tons of fluorite lumps. Nonferrous metal production should reach approximately 15,000 metric tons of zinc concentrate (equal to 7,000 metric tons of zinc metal) and nearly 1,500 metric tons of copper concentrate (equal to 280 metric tons of copper metal) in the 2011 year. In the first nine-months of 2010, the Company sold 8,800 metric tons of fluorite powder, 20,356 metric tons of fluorite lumps, 5,400 metric tons of zinc concentrate and 700 metric tons of copper concentrate.
For the year to end December 31, 2011, net revenues are expected to approximate $38.0 million, a 164% increase compared with the 2010 estimated net revenues of $14.5 million. All this anticipated growth is organic from the current product portfolio. Net income for the 2011 year is estimated to reach approximately $11.0 million.
Management set the operating plan for 2011 with a specific strategy to increase nonferrous exploration to acquire future revenue producing assets in this mineral-rich area. The Xingzhen Mining’s exploration area has been designated as a key exploration area in western China’s development strategy. The Company has continuously increased its investment in nonferrous metals exploration over the past few years and made significant progress in 2010. Management expects to accelerate these exploration activities going forward.
Another goal for 2011 is to enhance disclosure of the Company’s assets. The Company has engaged SRK Consulting, a leading global assessment firm for the international mining industry to assess the Company’s assets. It has already begun appraising the fluorite reserves. China Shen Zhou believes a full resource assessment of its explorations and assets can be completed and reported in compliance with the disclosure standards of U.S.- listed companies no later than the second quarter of 2011.
Ms. Yu Xiaojing, the CEO of China Shen Zhou, commented, “The outlook for 2011 is very promising as both nonferrous metals and fluorite are exhibiting strong organic growth. The demand for our nonferrous metals is growing and we are actively exploring for and pursuing new assets to help us become a much larger and more profitable company. Fluorite prices are rising partially due to changing government regulations resulting in structural changes in the fluorite industry.”
SRK Consulting
SKR Consulting is an independent, international consulting practice that provides focused advice and solutions to clients. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. The Group’s independence is ensured by the fact that it holds no equity in any project, and with ownership primarily by staff. SKR is a leading international practice in due diligence, feasibility studies and confidential internal reviews. Formed in 1974, SRK now employs more than 1000 professionals internationally in 43 permanent offices on 6 continents.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a) fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia; (b)zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper exploration, mining and processing in Xinjiang.
For more information, please visit http://www.chinaszmg.com/
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in the People’s Republic of China, variations in cash flow, fluctuation in mineral prices, risks associated with exploration and mining operations, and the potential of securing additional mineral resources, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact: |
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In China: |
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Fulun Song |
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Office of the Board of Directors |
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China Shen Zhou Mining & Resources, Inc. |
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Tel: +86-10-8890-9976 |
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Fax: +86-10-8890-6927 |
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Cell: 13146358911 |
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Email: investors@chinaszky.com |
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Web: http://www.chinaszmg.com |
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In the U.S.: |
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Kevin Theiss |
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Investor Relations |
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Grayling |
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Tel: +1-646-284-9409 |
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Email: kevin.theiss@grayling.com |
Ascent Media Corp. (ASCMA) to Sell AMG’s Content Distribution Business
Dec. 3, 2010 (Business Wire) — Ascent Media Corporation (“Ascent Media” or the “Company”) (Nasdaq: ASCMA) today announced the execution of a definitive agreement to sell the Content Distribution business of its wholly owned subsidiary Ascent Media Group (“AMG”) to Encompass Digital Media, Inc. (”Encompass”) for aggregate cash consideration to Ascent Media of approximately $113 million (after the assumption of certain indebtedness and obligations totaling approximately $7 million). Encompass is a leader in digital media services and operates two of the largest independent broadcast facilities in the U.S.
AMG’s Content Distribution business provides outsourced network origination services to satellite, cable and pay-per-view programming networks through facilities located in the U.S., U.K. and Singapore.
Ascent Media’s Chief Executive Officer, William Fitzgerald said, “Some of the most recognized cable networks and broadcasters worldwide depend upon the technical and operational expertise of AMG’s Content Distribution business. Encompass has emerged as a leader in the sector, and we think the combination represents an opportunity to participate in the growth prospects of the industry.”
The announcement follows Ascent Media’s announcement on November 24, 2010 that the Company has agreed to sell AMG’s Creative Services and Media Services businesses to Deluxe Entertainment Services Group Inc. Following the consummation of both transactions, AMC will have sold the substantial majority of the AMG operating businesses.
Ascent Media will continue to own AMG’s systems integration business. However, the Company continues to pursue strategic alternatives for this business unit. In addition, Ascent Media is committed to pursuing investments in or the acquisition of businesses that provide enhanced shareholder return opportunities.
The Encompass transaction is expected to close in the first quarter of 2011 and is subject to clearance under the Hart-Scott-Rodino Act, approval by the FCC and approval by Ascent Media’s shareholders.
Moelis & Co. served as the Company’s financial advisor and Baker Botts served as legal advisor in connection with the transaction.
Forward Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the sale of the Content Distribution, Creative Services and Media Services divisions, possible strategic alternatives for Ascent Media’s other business unit, potential future acquisitions and other matters that are not historical facts. These forward looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation: Ascent Media’s ability to satisfy the conditions to the sale of any of the Content Distribution, Creative Services and Media Services divisions, the availability of strategic alternatives for Ascent Media’s other business unit and the availability of acquisition opportunities. These forward looking statements speak only as of the date of this press release, and Ascent Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in Ascent Media’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent Media, including the most recent Forms 10-Q and 10-K and any subsequently filed Form 8-K, for additional information about Ascent Media and about the risks and uncertainties related to Ascent Media’s business which may affect the statements made in this press release.
About Ascent Media Corporation and Ascent Media Group
Ascent Media Corporation is a holding company and owns 100 percent of its operating subsidiary, AMG, which is primarily engaged in the business of providing content and creative services to the media and entertainment industries in the United States, the United Kingdom and Singapore. AMG provides solutions for the creation, management and distribution of content to motion picture studios, independent producers, broadcast networks, programming networks, advertising agencies and other companies that produce, own and/or distribute entertainment, news, sports, corporate, educational, industrial and advertising content.
About Encompass Digital Media, Inc.
Encompass, a leader in digital media services, owns and operates two of the largest, independent broadcast facilities in the U.S. in Los Angeles and Atlanta. Total media solutions include network origination; cable neighborhood platforms; centralcasting; disaster recovery; satellite and fiber transmissions (full time and occasional use); a fleet of satellite uplink trucks; digital media encoding services; digital file transfers via satellite, fiber and IP; emergency communications; governmental SATCOM; production studios; and video production services.
Sloane & Company
Erica Bartsch, 212-486-9500
Longwei Petroleum (LPH) Announces $20 Million in New Contracts
TAIYUAN CITY, China, Dec. 2, 2010 /PRNewswire-Asia-FirstCall/ — Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) (“Longwei” or the “Company”), an energy company engaged in the storage and distribution of finished petroleum products in the People’s Republic of China (“PRC”), today announced annual contracts with two new customers for its Gujiao petroleum storage facility representing sales of 19,000 metric tons of petroleum products. The Company estimates that the contracts will be worth approximately $20.1 million based on current pricing levels.
“We are very pleased with the progress and sales development of our Gujiao facility. We are on track with our plan and expect continued strong operating results for our current fiscal year,” stated Mr. Cai Yongjun, Chairman and CEO of Longwei. “We will continue to add new customers, and the recent diesel shortage experienced in the region has benefited our business because we hold long-term supply contracts with our refinery partners that guarantee availability. In addition, we are looking for other strategic opportunities with a similar payback period to the Gujiao facility to support the strong demand for petroleum products from both the industrial and consumer markets. As the leading private petroleum supplier in our region, we believe we are well-positioned to take advantage of opportunities as they present themselves.”
In order to meet China’s energy-saving targets for its 11th Five-Year Plan (2006 – 2010), some municipal governments are cutting off electricity supplies to reduce emissions. The electricity rationing measures have caused a surge in demand for electrical power from diesel generators, creating a widespread shortage of diesel fuel. Some experts, including Dr. Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, do not expect the shortage to improve before the end of 2010, as many businesses are still using diesel to generate power for their operations, and say that power-cutting policies by local governments must be retracted in order for the situation to be resolved.
“We have an opportunity to capitalize on our sixteen-year relationships with our refinery partners to ensure consistent supply for our customers,” stated Michael Toups, CFO of Longwei. “We currently maintain an approximately 30-day supply of inventory on-hand and have supplier advance balances with our refinery partners that represent an additional 60-day supply. This allows us to ensure consistent supply and react quickly to purchase product based on the timing of PRC pricing level adjustments.”
Under the 2009 pricing mechanism established by the National Development and Reform Commission (NDRC), China’s economic policy planner, domestic refined oil prices are adjusted when the moving average of a basket of international crude (Brent, Dubai and Cinta) changes more than 4 percent over a period of 22 working days.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in the storage and distribution of finished petroleum products in the People’s Republic of China. The Company’s oil and gas operations consist of transporting, storage and selling finished petroleum products, entirely in the PRC. The Company’s headquarters are located in Taiyuan City, Shanxi Province. The Company has a storage capacity for its products of 120,000 metric tons located at storage facilities in Taiyuan and Gujiao, Shanxi. The Company’s Taiyuan and Gujiao facilities can store 50,000 metric tons and 70,000 metric tons, respectively. The Company is 1 of 3 licensed intermediaries in Taiyuan and the sole licensed intermediary in Gujiao that operates its own large scale storage tanks. The Company has the necessary licenses to operate and sell petroleum products not only in Shanxi but throughout the entire PRC. The Company’s storage tanks have the largest storage capacity of any non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at competitive prices with timely delivery to coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue under an agency fee by acting as a purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company’s facilities. The Company seeks to continue to expand its customer base and distribution platform through the utilization of its large storage capacity, which allows the Company the flexibility to take advantage of pricing, supply and demand fluctuations in the marketplace.
For further information on Longwei Petroleum Investment Holding Limited, please visit http://www.longweipetroleum.com. You may register to receive Longwei Petroleum Investment Holding Limited’s future press releases or request to be added to the Company’s distribution list by contacting Dave Gentry at info@redchip.com.
Forward-Looking Statements
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei’s industry, management’s beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei’s operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
Contact: |
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At the Company: |
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Michael Toups, Chief Financial Officer |
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U.S. Office +1 727-641-1357 |
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mtoups@longweipetroleum.com |
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http://www.longweipetroleum.com |
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Investor Relations: |
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Dave Gentry |
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RedChip Companies, Inc. |
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407-644-4256, Ext. 104 |
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info@redchip.com |
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http://www.redchip.com |
Zogenix (ZGNX) and Desitin Announce First European Marketing Approval for SUMAVEL(R) DosePro(TM)
SAN DIEGO and HAMBURG, Germany, Dec. 2, 2010 (GLOBE NEWSWIRE) — Zogenix, Inc. (Nasdaq:ZGNX) and Desitin Pharmaceuticals GmbH today announced that the Danish Medicines Agency of Denmark has approved the Marketing Authorization Application (MAA) for SUMAVEL® DosePro™ (sumatriptan injection) Needle-Free Delivery System. Denmark is the first country in Europe to grant marketing authorization for SUMAVEL DosePro for the acute treatment of migraine attacks, with or without aura, and the acute treatment of cluster headache.
SUMAVEL DosePro offers fast acting, easy-to-use, needle-free subcutaneous administration of sumatriptan. SUMAVEL DosePro may offer a treatment alternative to oral and nasal triptans, and simple, convenient administration when compared to traditional, needle-based sumatriptan injection. These unique attributes may be ideally suited for challenging migraine attacks, such as morning migraines, fast onset migraine and migraines with vomiting.
Roger L. Hawley, Chief Executive Officer and Director of Zogenix said, “The MAA approval of SUMAVEL DosePro in Denmark creates a point of entry into the E.U. market. We look forward to the upcoming E.U. commercial launch by our partner Desitin.”
Desitin plans to launch SUMAVEL DosePro in Denmark in early 2011 and is responsible for pursuing additional MAA approvals and broader commercialization on a country-by-country basis under the E.U. decentralized procedure.
Dr. Martin Zentgraf, Desitin’s General Manager, said, “We are pleased to announce the first MAA approval of SUMAVEL DosePro in Europe and anticipate commencing the commercial launch through our CNS-focused sales representatives and partner companies. We also have MAA submissions pending in other E.U. markets and look forward to gaining additional European approvals in the coming months.”
In March 2008, Zogenix and Desitin entered into a license agreement granting exclusive rights in the European Union to Desitin to develop and commercialize SUMAVEL DosePro. Zogenix and its co-promotion partner, Astellas, currently market SUMAVEL DosePro in the United States, where it has demonstrated consistent monthly growth in total prescriptions since its launch in January 2010.
About SUMAVEL DosePro
SUMAVEL DosePro (sumatriptan injection) is indicated for the acute treatment of migraine attacks, with or without aura, and the acute treatment of cluster headache episodes.
SUMAVEL DosePro should only be used where a clear diagnosis of migraine or cluster headache has been established. SUMAVEL DosePro is not intended for the prophylactic therapy of migraine or for use in the management of hemiplegic or basilar migraine and should not be administered intravenously. For a given attack, if a patient does not respond to the first dose of SUMAVEL DosePro, the diagnosis of migraine or cluster headache should be reconsidered before administration of a second dose. For more information about SUMAVEL DosePro, please visit www.SUMAVELDosePro.com.
IMPORTANT SAFETY INFORMATION SUMAVEL DosePro is contraindicated in patients with uncontrolled hypertension, in patients with history, symptoms or signs of ischemic heart disease, coronary artery vasospasm, cerebrovascular or peripheral vascular disease including ischemic bowel disease and in patients with other significant underlying cardiovascular diseases or known hypersensitivity to sumatriptan. SUMAVEL DosePro should not be given to patients in whom unrecognized coronary artery disease is predicted by the presence of risk factors without a prior cardiovascular evaluation.
Serious cardiovascular events, including death, have been reported when taking sumatriptan, including patients with no findings of cardiovascular disease. Considering the extent of use of sumatriptan in patients with migraine, the incidence of these events is extremely low. Cerebrovascular events, some fatal, have been reported in patients treated with sumatriptan. In a number of cases, it appears possible that the cerebrovascular events were primary, sumatriptan having been administered in the incorrect belief the symptoms experienced were a consequence of migraine when they were not. It is important to advise patients not to administer SUMAVEL DosePro if a headache being experienced is atypical.
SUMAVEL DosePro should not be used within 24 hours of other ergotamine-containing or ergot-type medications or other 5-HT1 agonists and is not generally recommended for use with MAO-A inhibitors. The development of a potentially life-threatening serotonin syndrome may occur with triptans, including treatment with SUMAVEL DosePro, particularly during combined use with selective serotonin reuptake inhibitors (SSRIs) and serotonin-norepinephrine reuptake inhibitors (SNRIs). SUMAVEL DosePro should be used during pregnancy only if the potential benefit justifies the potential risk.
In controlled clinical trials with sumatriptan injection, the most common adverse reactions were injection site reactions, tingling, warm/hot sensation, burning sensation, feeling of heaviness, pressure sensation, feeling of tightness, numbness, feeling strange, tight feeling in head, flushing, tightness in chest, discomfort in nasal cavity/sinuses, jaw discomfort, dizziness/vertigo, drowsiness/sedation and headache.
For full prescribing information, go to http://www.zogenix.com/docs/SV0018.0709A_SDP_PI.pdf
About DosePro Technology
The DosePro technology is an easy-to-use, pre-filled drug delivery system designed to enable self-administration of single doses of liquid drug formulations, subcutaneously, without a needle. The DosePro technology has undergone more than 10 years of design, process engineering, clinical evaluation and development work. DosePro is protected by more than 80 patents, issued and applied for, worldwide. Approximately 9,000 injections have been delivered in clinical trials in healthy volunteers using the DosePro needle-free drug delivery system.
About Zogenix
Zogenix, Inc. (Nasdaq:ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix’s first commercial product, SUMAVEL® DosePro™ (sumatriptan injection) Needle-free Delivery System, was launched in January 2010 for the acute treatment of migraine and cluster headache. Zogenix’s lead product candidate, ZX002, is a novel, oral, single-entity controlled-release formulation of hydrocodone currently in Phase 3 clinical trials for the treatment of moderate to severe chronic pain in patients requiring around-the-clock opioid therapy.
For additional information, please visit www.zogenix.com.
About Desitin
Desitin Pharmaceuticals GmbH, based in Hamburg, Germany is an independent, private, fully integrated, German pharmaceutical company focused on the development, manufacturing and distribution of products for the treatment of central nervous system disorders. Desitin, with turnover in 2009/2010 of over $115 million, is one of the leading European companies in the field of epilepsy with additional expertise in Parkinson’s disease and psychiatric disorders. With their pharmaceutical and clinical development capabilities, the company develops innovative products such as controlled-release and high-dose antiepileptics. Desitin’s sales infrastructure offers comprehensive coverage in Germany, Switzerland, Northern and Eastern Europe. The company also has strategic partnerships with other companies covering nearly all of the remaining countries in Europe. For additional information, visit www.desitinpharma.com.
Zogenix™ and DosePro™ are trademarks of Zogenix, Inc.
SUMAVEL ® is a registered trademark of Zogenix, Inc.
Forward Looking Statements
Zogenix cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “indicates,” “will,” “intends,” “potential,” “suggests,” “assuming,” “designed” and similar expressions are intended to identify forward-looking statements. These statements are based on the company’s current beliefs and expectations. These forward-looking statements include statements regarding the attributes of SUMAVEL DosePro, the commercial potential of the product and the prospects for the MAA submissions in other E.U. markets. The inclusion of forward-looking statements should not be regarded as a representation by Zogenix that any of its plans will be achieved. Actual results may differ from those set forth in this release due to the risk and uncertainties inherent in the Zogenix’s business, including, without limitation: the ability of Zogenix and Desitin to ensure adequate and continued supply of SUMAVEL DosePro to successfully launch commercial sales or meet anticipated market demand in the E.U.; the scope, validity and duration of patent protection and other intellectual property rights for SUMAVEL DosePro; whether the approved label for SUMAVEL DosePro is sufficiently consistent with such patent protection to provide exclusivity for SUMAVEL DosePro; Zogenix and Desitin’s ability to operate its business without infringing the intellectual property rights of others; the market potential for migraine treatments, and the companies’ ability to compete within that market; inadequate therapeutic efficacy or unexpected adverse side effects relating to SUMAVEL DosePro that could delay or prevent commercialization, or that could result in recalls or product liability claims; Zogenix’s reliance on Desitin for the commercial sales success and regulatory approval and compliance of SUMAVEL DosePro in the E.U.; and other risks described in the company’s prior press releases and filings with the Securities and Exchange Commission.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Zogenix undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
CONTACT: The Ruth Group Investors: Sara Pellegrino 646.536.7002 spellegrino@theruthgroup.com Media: Jason Rando 646.536.7025 jrando@theruthgroup.com Desitin Pharmaceuticals GmbH Cell: 347-327-2863
SXC Health Solutions (SXCI) to Acquire MedfusionRx, LLC
LISLE, Il, Dec. 2 /CNW/ – SXC Health Solutions Corp. (“SXC” or the “Company”)
(NASDAQ: SXCI, TSX: SXC), a leading provider of pharmacy benefit management (PBM)
services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry, announces that it has entered into a definitive agreement to acquire MedfusionRx, LLC (“MedfusionRx”) for a purchase price of $100 million in cash, subject to certain customary post-closing adjustments, with an additional $5.5 million subject to the achievement of certain performance targets through the 2012 fiscal year.
MedfusionRx is a leading privately-owned specialty pharmacy provider with significant expertise in providing clinical services to over 9,000 patients with complex chronic conditions.
“Specialty pharmaceuticals are the fastest growing area in the PBM space and our clients recognize it as the next critical area of drug spend management. This acquisition will expand our presence and enhance our capabilities in the specialty pharmacy market which differentiates us from our peers in the mid-market PBM sector,” said Mark Thierer, President and CEO of SXC. “Acquiring MedfusionRx increases the size of our specialty operations to approximately $400 million and allows us to better assist our clients and their members in managing complex conditions, such as cancer, with the most supportive and cost-effective care. The MedfusionRx management team adds proven specialty industry experience to our Ascend team and further expands the scale of our platform to capitalize on the opportunity in this rapidly growing segment of the PBM industry.”
MedfusionRx manages approximately $270 million of drug spend annually and has approximately $11.5 million in trailing twelve month adjusted EBITDA. In addition, SXC has identified approximately $4-6 million of cost saving synergies, including the tax benefits of the acquisition, expected to be realized within 18-24 months of the closing of the transaction. The acquisition is expected to be $0.08 to $0.10 accretive to SXC’s GAAP earnings per share (“EPS”) in 2011. Excluding an estimated $7 million in deal-related amortization (or $0.07 per share), the acquisition is expected to generate $0.15 to $0.17 in adjusted EPS in 2011.
“SXC has emerged as a leader in the PBM market for technology innovation and flexible client-focused solutions. Our skill and experience in specialty pharmaceuticals will help enhance the great work SXC has already done to transform how pharmacy benefits are delivered. Our clients, as well as our employees, will benefit greatly from SXC’s operational and financial resources, and we believe that our client-service culture will merge well with SXC’s current specialty offering,” said Jeff Vernon, President of MedfusionRx.
Mr. Thierer continued, “MedfusionRx has a talented team that has expanded its reach into all 50 states. Importantly, MedfusionRx provides services to more than 30 state clients and manages thousands of state Medicaid patients, creating some compelling revenue synergy opportunities for SXC. We are excited with the growth prospects inherent in this transaction and will continue to explore other opportunities to expand our business through acquisitions.”
MedfusionRx is based in Birmingham, Alabama, where its operations will remain. Following the closing of the transaction, SXC plans to maintain the MedfusionRx brand. MedfusionRx specializes in the needs of patients across a variety of disease indications including: bleeding disorders, such as hemophilia; growth hormone deficiency; multiple sclerosis; rheumatoid arthritis; plaque psoriasis; Crohn’s disease; hepatitis C; oncology; and preventative treatment of respiratory syncytial virus.
The acquisition is subject to various closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be completed by the end of 2010.
In connection with the transaction, Healthcare Growth Partners, LLC is acting as financial advisor and Sidley Austin LLP is acting as legal counsel to SXC. CIT Healthcare and its affiliate CIT Capital Securities LLC are acting as the exclusive financial advisors and Morrison & Foerster LLP is acting as legal counsel to MedfusionRx.
About MedfusionRx, LLC
Founded in 2003, privately-held MedfusionRx, LLC (“MedfusionRx”) is a leading independent specialty pharmacy provider with significant expertise in providing high-touch clinical services to patients with complex chronic conditions. MedfusionRx is a licensed, accredited specialty pharmacy providing service in all 50 states. MedfusionRx specializes in the needs of patients with chronic diseases such as bleeding disorders, growth hormone deficiency, multiple sclerosis, rheumatoid arthritis, plaque psoriasis, Crohn’s disease and hepatitis C. MedfusionRx also specializes in medications for patients with cancer and in the preventive treatment of RSV. Based in Birmingham, Alabama, MedfusionRx also has a satellite pharmacy in Alabama and six additional pharmacies in Tennessee, Mississippi, West Virginia, Texas, Louisiana and Kansas. For more information please visit the company’s website located at www.medfusionrx.com.
About SXC Health Solutions Corp.
SXC Health Solutions Corp. is a leading provider of pharmacy benefits management (PBM) services and Health Care Information Technology (HCIT) solutions to the healthcare benefits management industry. The Company’s product offerings and solutions combine a wide range of PBM services and software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as health plans, employers, federal, state and local governments, pharmacy benefit managers, retail pharmacy chains and other healthcare intermediaries. SXC is headquartered in Lisle, Illinois with 13 locations in the US and Canada.
For more information please visit www.sxc.com.
Non-GAAP Financial Measures
SXC reports its financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). SXC’s management also evaluates and makes operating decisions using various other measures. Two such measures are adjusted earnings per share (“EPS”) and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), which are both non-GAAP financial measures.
Adjusted EPS is a non-GAAP measure which takes EPS and adds back the impact of amortization expense related to the acquisition of MedfusionRx, net of tax. Acquisition-related amortization expense is a non-cash expense arising from the acquisition of intangible assets in connection with the acquisition. SXC excludes certain acquisition-related amortization expense from non-GAAP adjusted EPS because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of SXC business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributes to revenue in the period presented as well as future periods and should also note that such expense will recur in future periods. The 2011 guidance of adjusted EPS was computed by taking the estimated GAAP EPS impact and adding back the expected impact of certain acquisition-related amortization expense, net of tax. Management believes that adjusted EPS provides useful supplemental information to management and investors regarding the performance of the Company’s business operations and facilitates comparisons to its historical operating results. Management also uses this information internally for forecasting and budgeting as it believes that the measures are indicative of the Company’s core operating results. Note however, that these items are performance measures only, and do not provide any measure of the Company’s cash flow or liquidity. Non-GAAP financial measures should not be considered as a substitute for measures of financial performance in accordance with GAAP.
Adjusted EBITDA is a non-GAAP measure that management believes is a useful supplemental measure of operating performance prior to net interest income (expense), income taxes, depreciation, amortization, and stock-based compensation. With respect to MedfusionRx, adjusted EBITDA also adds back certain non-market compensation charges. Management believes it is useful to exclude depreciation, amortization and net interest income (expense) as these are essentially fixed amounts that cannot be influenced by management in the short term. In addition, management believes it is useful to exclude stock-based compensation because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of business operations and (ii) such expenses can vary significantly between periods as a result of the timing of grants of new stock-based awards. With respect to MedfusionRx, there was no stock-based compensation and certain non-market compensation charges were excluded because management believes they were not reflective of ongoing operations.
Forward-Looking Statements
Certain statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. We caution that such forward-looking statements involve known and unknown risks, uncertainties and other risks that may cause our actual financial results, performance, or achievements to be materially different from our estimated future results, performance or achievements expressed or implied by those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation, the possibility that the pending MedfusionRx transaction will not close; the possibility that the expected synergies, efficiencies and cost savings of the MedfusionRx transaction will not be realized, or will not be realized within the expected time period; the risk that the MedfusionRx business will not be integrated successfully; our ability to achieve increased market acceptance for our product offerings and penetrate new markets; consolidation in the healthcare industry; the existence of undetected errors or similar problems in our software products; our ability to identify and complete acquisitions, manage our growth and integrate acquisitions; our ability to compete successfully; potential liability for the use of incorrect or incomplete data; the length of the sales cycle for our healthcare software solutions; interruption of our operations due to outside sources; our dependence on key customers; maintaining our intellectual property rights and litigation involving intellectual property rights; our ability to obtain, use or successfully integrate third-party licensed technology; compliance with existing laws, regulations and industry initiatives and future change in laws or regulations in the healthcare industry; breach of our security by third parties; our dependence on the expertise of our key personnel; our access to sufficient capital to fund our future requirements; and potential write-offs of goodwill or other intangible assets. This list is not exhaustive of the factors that may affect any of our forward-looking statements. Other factors that should be considered are discussed from time to time in SXC’s filings with the U.S. Securities and Exchange Commission, including the risks and uncertainties discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2009 and subsequent Form 10-Qs, which are available at www.sec.gov. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to SXC or persons acting on our behalf are expressly qualified in their entirety by this notice. We disclaim any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise. Certain of the assumptions made in preparing forward-looking information and management’s expectations include: maintenance of our existing customers and contracts, our ability to market our products successfully to anticipated customers, the impact of increasing competition, the growth of prescription drug utilization rates at predicted levels, the retention of our key personnel, our customers continuing to process transactions at historical levels, that our systems will not be interrupted for any significant period of time, that our products will perform free of major errors, our ability to obtain financing on acceptable terms and that there will be no significant changes in the regulation of our business.
%SEDAR: 00001439E
Jeff Park | Susan Noonan | Dave Mason |
Chief Financial Officer | Investor Relations – U.S. | Investor Relations – Canada |
SXC Health Solutions Corp. | S.A. Noonan Communications | The Equicom Group Inc. |
Tel: (630) 577-3100 | (212) 966-3650 | 416-815-0700 ext. 237 |
investors@sxc.com | susan@sanoonan.com | dmason@equicomgroup.com |
Thomas Group (TGIS) Announces Third Quarter 2010 Results for Quarter Ended September 30, 2010
Nov. 2, 2010 (Business Wire) — Thomas Group, Inc. (NasdaqCM: TGIS), a global change management and operations improvement consulting firm, today announced a net loss of $1.5 million, or negative $0.70 per diluted share, for the third quarter of 2010 on revenues of $0.5 million, compared to a net loss of $1.0 million, or negative $0.48 per diluted share, on revenues of $2.1 million for the third quarter of 2009. Loss from operations before income taxes decreased to $1.5 million on $0.5 million in total revenue for the third quarter of 2010 compared to a loss from operations before income taxes of $1.6 million for the third quarter of 2009 on $2.1 million in total revenue.
On August 13, 2010 we completed a reverse stock split of one new share for each five previous shares. All share numbers and per share numbers in this press release reflect this reverse split.
Third Quarter 2010 Financial Performance
Revenue
Revenue for the third quarter of 2010 was $0.5 million, compared to $2.1 million in the third quarter of 2009. Consulting revenue from US government clients, represented by our Government practice, was $0.4 million, or 85% of revenue, in the third quarter of 2010, compared to $0.5 million, or 23% of revenue, in the third quarter of 2009. We had no consulting revenue from commercial clients, represented by our Commercial and European practices in the third quarter of 2010, compared to $1.3 million, or 62% of revenue, in the third quarter of 2009. Reimbursement of expenses was $0.1 million, or 15% of revenue in the third quarter of 2010, compared to $0.3 million, or 15% of revenue in the third quarter of 2009.
Revenue for the first nine months of 2010 was $3.2 million, compared to $8.0 million in the first nine months of 2009. Consulting revenue from US government clients was $1.3 million, or 41% of revenue, in the first nine months of 2010, compared to $1.9 million, or 24% of revenue, in the first nine months of 2009. Consulting revenue from commercial clients was $1.5 million, or 48% of revenue, in the first nine months of 2010, compared to $5.1 million, or 63% of revenue, in the first nine months of 2009. Reimbursement of expenses was $0.3 million, or 10% of revenue in the first nine months of 2010, compared to $1.1 million, or 13% of revenue, in the first nine months of 2009.
Gross Margins
Gross profit margins for the third quarter of 2010 were 32%, compared to 34% for the third quarter of 2009. Gross profit margins for the first nine months of 2010 were 27%, compared to 38% for the first nine months of 2009. The drop in the quarterly and year-to-date gross margins is related to the significant slowdown of our government and commercial programs during the first nine months of 2010, to lower utilization rates of our consultants in the first nine months of 2010, and to lower pricing on some engagements in this period.
Selling, General & Administrative (SG&A)
SG&A costs for the third quarter of 2010 were $1.7 million, compared to $2.6 million in the third quarter of 2009. The $0.9 million decrease is related primarily to a $0.8 million decrease in payroll costs due to the decline in the number of consultants employed, a $0.1 million decrease in travel related expenses, a $0.1 million decrease in bad debt expense, and a $0.2 million decrease in other costs due to a decline in activity as compared to the same period in 2009, offset by a $ 0.2 million increase in sales commissions and executive bonus due to the reversal of executive bonus in the third quarter of 2009, and $0.1 million increase in stock-based compensation during the third quarter of 2010.
SG&A costs for the first nine months of 2010 were $5.3 million compared to $9.1 million in the first nine months of 2009. The $3.8 million decrease is primarily related to a $2.4 million decrease in payroll costs due to the decline in the number of consultants employed, a $0.2 million decrease in sales commissions and executive bonus, a $0.5 million decrease in travel related expenses, a $0.3 million decrease in legal expenses, a $0.2 million decrease in outside consultants used related to the decrease in activity, a $0.1 million decrease in audit, tax and accounting service costs, a $0.1 million decrease in maintenance and license agreements, a $0.1 million decrease in bad debt expense, a $0.1 million decrease in depreciation and amortization costs, and a $0.1 million decline in other costs due to a decrease in activity and the lower number of consultants employed as compared to the prior year, offset by a $0.3 million increase in stock-based compensation during the first nine months of 2010.
Other Income
Other income for the first nine months of 2010 included the collection of $0.2 million from the final liquidation of a former subsidiary in Europe.
Income Tax (Expense) Benefit
For the first nine months of 2010 we incurred income tax expense of $1.6 million compared to an income tax benefit of $2.1 million in the first nine months of last year. In the first quarter of 2010, our cumulative losses began to exceed our cumulative earnings. Additionally, we are not currently profitable, and we determined that as of the end of March 2010 it was no longer probable that we will recover our deferred tax asset. The combined tax effect was to cause an income tax expense of $1.6 million for the first nine months of 2010. The effect is to increase the net loss as well as the loss per share compared to prior quarters. If we are able to return to sustained profitability and when we can comply with all of the requirements of ASC 740-10-25, we should be able to recover all or part of our deferred tax asset.
Working Capital and Cash Flow
Working capital decreased from $8.1 million at December 31, 2009 to $4.2 million at September 30, 2010, due primarily to our operating loss for the first nine months of 2010.
Our 2009 tax losses were available for carryback for Federal tax purposes, and we received refunds of taxes paid in prior years of approximately $2.7 million in the first nine months of 2010. We do not forecast additional tax refunds at this time. Our 2010 tax losses cannot be carried back to prior years, but may be available to offset taxable income, if any, in future years.
For the first nine months of 2010, net cash decreased $0.7 million, compared to a net decrease of $1.9 million for the first nine months of 2009. For the first nine months of 2010, net cash used by operating activities was $0.6 million, compared to net cash used of $1.7 million for the first nine months of 2009. This decrease in net cash used by operating activities is due primarily to the income tax refund received in the first nine months of 2010 of $2.7 million offset by a non-cash decrease in deferred tax assets of $1.6 million, a decrease in our accrued liabilities, and increased collection of our accounts receivable offset by the net loss for the first nine months of 2010. There were no investing activities in the first nine months of 2010, compared to $5,000 in the first nine months of 2009, related to proceeds from the sale of assets. Cash used for financing activities for the first nine months of 2010 was $0.02 million related to the purchase of stock under our stock repurchase plan, compared to $0.2 million in the first nine months of 2009, related to the $0.1 million purchase of stock under our stock repurchase plan and the net tax effect of stock issuances.
Despite our continuing efforts to reduce costs and control expenses, we expect to continue to operate at a loss until we are able to develop client engagements sufficient to generate revenue to allow us to break even. Until then, we will also continue to use our existing resources.
Although we believe we have the potential to return to profitability, there can be no assurance that we will be able to do so soon enough, given our current, limited available resources. There can be no assurance that we will be able to obtain additional working capital beyond our current resources, if needed.
During the first quarter of 2008, we established a written plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, which provides for the purchase of our common stock in support of our announced share repurchase program. The purpose of this stock repurchase program was to reduce the dilution from potential stock incentive payments for new employees. After a waiting period, repurchases commenced on April 7, 2008. During the first quarter of 2010, we repurchased 5,349 shares for a total of $17,737, or an average of $3.31 per share including commissions and fees.
As of January 31, 2010, we completed the authorized repurchase of 161,090 shares under the plan at a total cost of $1,259,640 or $7.81 per share. At this time we have no plans for additional stock repurchases.
Operations and Business Development
In addition to previously announced efforts, we continue to seek additional ways to reduce costs. As of September 30, 2010, we had 11 consultants on furlough. These furloughed consultants will be offered the opportunity to return to the payroll if and when we develop client engagements that require their individual skill sets. We now employ a “variable cost model” for staffing consulting projects which enables us to minimize our “bench costs.”
In addition to these reductions in payroll costs, we have aggressively worked to reduce other costs wherever possible while we focus on generating increased revenue through new contracts for our services. Effective November 1, 2010 members of the management team also will be partially furloughed to reduce SG&A costs until we can generate higher levels of revenue. As with the consultants on furlough, the work schedules of members of the management team will be reevaluated periodically to ensure that necessary functions are performed during this period and that client service and sales efforts continue uninterrupted.
In the near term, our primary sales focus will be on government related entities, although we will continue to pursue commercial business where we have the opportunity to do so. As a result of this change in focus, Barbara D. Stinnett, Executive Vice President and Chief Customer Officer – Worldwide Customer Operations, resigned effective October 31, 2010, to pursue other opportunities more closely aligned with her interests.
Reverse Stock Split and Nasdaq Listing Update
As previously disclosed, on December 11, 2009, we transferred our stock listing to the Nasdaq Capital Market from the Nasdaq Global Market. We made this transfer because we no longer satisfied the requirement of the Nasdaq Global Market to maintain a market value of publicly held shares of at least $5 million. At that time we met the requirements for listing on the Nasdaq Capital Market with the exception of maintaining a minimum closing bid price of $1 per share. Nasdaq granted a grace period until March 15, 2010 to regain compliance with this requirement. On March 16, 2010, we were notified by Nasdaq that we had not regained compliance with this requirement and that our stock would be delisted from Nasdaq.
We filed a request for an appeal hearing and we were granted an extension of time, as permitted under Nasdaq’s Listing Rules, until September 13, 2010, to evidence a closing bid price of $1.00 or more for a minimum of ten prior consecutive trading days. Under Nasdaq’s rules, this date represented the maximum length of time that we could have been granted to regain compliance.
In order to provide an additional opportunity to regain compliance, at our 2010 annual meeting of stockholders we received stockholder approval for a potential reverse stock split that would reduce the number of shares of our common stock outstanding in an attempt to increase the price of our common stock. Our Board of Directors approved a reverse stock split effective as of the close of business on August 13, 2010, with an exchange ratio of five existing shares to one new share of our common stock. This reverse stock split was effective at 6:01 p.m. ET on August 13, 2010.
As a result of the Reverse Stock Split, every five shares of our issued and outstanding Common Stock, all Treasury shares, and all unawarded or unvested shares under our approved stock plans were combined into one share of Common Stock. The Reverse Stock Split did not change the number of authorized shares or par value of the Common Stock.
On September 7, 2010, we received a letter from The Nasdaq Stock Market (“NASDAQ”) confirming that we had regained compliance with Nasdaq’s minimum $1.00 per share bid price requirement. The Nasdaq letter further stated that at that time we met the other applicable standards for Nasdaq listing, and that the Nasdaq Listing Qualifications Hearings Panel had determined to continue the listing of our common stock on The Nasdaq Stock Market.
Although we believe that we are currently in compliance with all of the applicable standards for continued listing on the Nasdaq Capital Market, there is no assurance that we will be able to maintain compliance in the future.
About Thomas Group
Thomas Group, Inc. (NasdaqCM: TGIS) is an international, publicly-traded professional services firm specializing in organization change management and operations improvement. Thomas Group’s unique brand of process improvement and performance management services enable businesses to enhance operations, improve productivity and quality, reduce costs, generate cash and drive higher profitability. Known for Breakthrough Process Performance, Thomas Group creates and implements customized improvement strategies for sustained performance improvements in all facets of the business enterprise. Thomas Group has offices in Dallas, Boston and Washington, D.C. For more information, please visit www.thomasgroup.com.
Important Notices:
Safe Harbor Statement under the Private Securities Litigation Reform Act:
Any statements in this release that are not strictly historical statements, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements, including general economic and business conditions that may impact clients and our revenues, timing and awarding of customer contracts, revenue recognition, competition and cost factors, lack of profitability and potential delisting as well as other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2009. These forward-looking statements may be identified by words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “could,” “should,” “may,” “would,” “continue,” “forecast,” and other similar expressions. These forward-looking statements speak only as of the date of this release. Except as required by law, we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
THOMAS GROUP, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Consulting revenue before reimbursements | $ | 442 | $ | 1,783 | $ | 2,834 | $ | 6,939 | ||||||||
Reimbursements | 77 | 315 | 330 | 1,067 | ||||||||||||
Total revenue | 519 | 2,098 | 3,164 | 8,006 | ||||||||||||
Cost of sales before reimbursable expenses | 275 | 1,071 | 1,995 | 3,898 | ||||||||||||
Reimbursable expenses | 77 | 315 | 330 | 1,067 | ||||||||||||
Total cost of sales | 352 | 1,386 | 2,325 | 4,965 | ||||||||||||
Gross profit | 167 | 712 | 839 | 3,041 | ||||||||||||
Selling, general and administrative expenses | 1,666 | 2,595 | 5,257 | 9,107 | ||||||||||||
Operating loss | (1,499 | ) | (1,883 | ) | (4,418 | ) | (6,066 | ) | ||||||||
Interest income, net of expense | (1 | ) | – | (2 | ) | 6 | ||||||||||
Other income | – | 302 | 180 | 329 | ||||||||||||
Loss from operations before income taxes | (1,500 | ) | (1,581 | ) | (4,240 | ) | (5,731 | ) | ||||||||
Income taxes expense (benefit) | 2 | (557 | ) | 1,613 | (2,128 | ) | ||||||||||
Net loss | $ | (1,502 | ) | $ | (1,024 | ) | $ | (5,853 | ) | $ | (3,603 | ) | ||||
Loss per share: | ||||||||||||||||
Basic | ($0.70 | ) | ($0.48 | ) | ($2.76 | ) | ($1.69 | ) | ||||||||
Diluted | ($0.70 | ) | ($0.48 | ) | ($2.76 | ) | ($1.69 | ) | ||||||||
Weighted average shares: | ||||||||||||||||
Basic | 2,152 | 2,123 | 2,122 | 2,131 | ||||||||||||
Diluted | 2,152 | 2,123 | 2,122 | 2,131 | ||||||||||||
THOMAS GROUP, INC.
Selected Consolidated Financial Data (Amounts stated in thousands) |
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Selected Geographical Revenue Data
(Unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||
Revenue: | ||||||||||||
North America | $ | 516 | $ | 1,538 | $ | 2,829 | $ | 5,309 | ||||
South America | – | – | – | 17 | ||||||||
Europe | 3 | 560 | 335 | 2,680 | ||||||||
Total revenue | $ | 519 | $ | 2,098 | $ | 3,164 | $ | 8,006 | ||||
Selected Balance Sheet Data
(Unaudited) |
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September 30,
2010 |
December 31,
2009 |
|||||
Cash and cash equivalents | $ | 4,331 | $ | 5,004 | ||
Trade accounts receivables | 297 | 849 | ||||
Income tax receivable | 109 | 2,835 | ||||
Deferred tax asset (current), net | 0 | 111 | ||||
Total current assets | 4,974 | 9,458 | ||||
Deferred tax asset (non-current), net | 0 | 1,471 | ||||
Total assets | 5,427 | 11,578 | ||||
Total current liabilities | 743 | 1,366 | ||||
Total liabilities | 793 | 1,492 | ||||
Total stockholders’ equity | $ | 4,634 | $ | 10,086 |
Thomas Group, Inc.
Michael McGrath, 972-869-3400
President and Chief Executive Officer
Conn’s, Inc. (CONN) Reports Results for the Quarter Ended October 31, 2010
Dec. 2, 2010 (Business Wire) — Conn’s, Inc. (NASDAQ/NM: CONN), a specialty retailer of consumer electronics, home appliances, furniture, mattresses, computers and lawn and garden products today announced its operating results for the quarter ended October 31, 2010.
Significant items for the quarter include:
- Total revenues were $169.9 million, down 14.0% from the same period in the prior fiscal year;
- Retail gross margin increased to 25.2% for the quarter, as compared to 22.4% for the same period in the prior fiscal year;
- Retail segment loss before income taxes was $2.2 million for the quarter, as compared to a loss of $19.2 million for the same quarter in the prior fiscal year. The prior year loss included a goodwill impairment charge of $9.6 million and a $4.1 million litigation reserve adjustment;
- Credit portfolio annualized net charge-off rate increased to 5.5%, as compared to 4.3% for the same period in the prior fiscal year, and the percentage of accounts 60+ days delinquent increased to 9.6% at October 31, 2010, as compared to 9.3% at October 31, 2009, though the balance of accounts 60+ days delinquent has been reduced since the same time last year;
- Credit segment loss before income taxes was $5.6 million for the quarter, as compared to a loss of $0.1 million for the same quarter in the prior fiscal year, resulting primarily from reduced interest earnings, combined with higher collection expenses and borrowing costs, and a $2.9 million write-off of costs of financing transactions not completed, partially offset by a lower provision for bad debts;
- Diluted loss per share was $0.23 for the third quarter of fiscal 2011, as compared to $0.64 for the same period in the prior fiscal year. The adjusted diluted loss per share was $.14 for the third quarter of fiscal 2011, after excluding the write-off of costs of financing transactions not completed, as compared to an adjusted diluted loss per share of $.18 for the same period in the prior fiscal year, after excluding the goodwill impairment charge and the litigation reserve adjustment; and
- After the conclusion of the quarter the Company completed its previously announced refinancing plan raising $500 million of capital, including an expanded $375 million asset-based loan facility, a $100 million second lien term loan and a $25 million common stock rights offering. A portion of the net proceeds received was used to repay all of the Company’s outstanding obligations under its asset backed securitization program.
The change in total revenues was comprised of a total net sales decline of 15.2% to $136.8 million, and a decrease in finance charges and other of 8.6% to $33.0 million, as compared to the same quarter in the prior fiscal year. Same store sales (revenues earned in stores operated for the entirety of both periods) decreased 16.3% during the third quarter of fiscal 2011, as compared to a 9.3% decrease in the same quarter in the prior fiscal year. The sales results were impacted primarily by:
- Continued challenging economic conditions in the Company’s markets during the quarter;
- Limitations imposed by the Company’s capital structure, prior to the recently completed refinancing, and the resulting impact on its ability to extend credit;
- The Company’s decision to tighten credit underwriting requirements to protect the quality of the credit portfolio; and
- Management’s emphasis on improving retail gross margin while maintaining price competitiveness.
The key credit portfolio performance metrics reported for the quarter included:
- Net charge-offs for the third fiscal quarter of 2011 totaled $9.5 million, or 5.5% of the average balance outstanding. The net charge-off percentage was negatively impacted by the declining portfolio balance as the total portfolio balance outstanding has declined to approximately $677.0 million as of October 31, 2010, from $738.2 million as of October 31, 2009;
- A 60 basis point increase in the 60+ day delinquency rate since July 31, 2010, to 9.6% at October 31, 2010. The 60+ day delinquency rate was 9.3% at October 31, 2009, after increasing 170 basis points during the third quarter of the prior fiscal year. The delinquency rate was also negatively impacted by the declining portfolio balance as the total balance 60+ days delinquent improved to $64.9 million at October 31, 2010, as compared to $68.5 million at October 31, 2009;
- A 30 basis point increase in the percentage of the portfolio reaged to 18.7% at October 31, 2010, from 18.4% at July 31, 2010. The percentage of the portfolio reaged at October 31, 2009 was 18.8%. The percentage of the portfolio reaged was also negatively impacted by the declining portfolio balance as the total balance reaged has decreased to $126.3 million as of October 31, 2010, from $139.1 million as of October 31, 2009; and
- The payment rate (amount collected from customers as a percentage of the portfolio balance) increased for the third consecutive quarter, versus the same quarter in the prior year, increasing to 5.10% for the quarter ended October 31, 2010, from 5.00% for the quarter ended October 31, 2009.
More information on the credit portfolio and its performance may be found in the table included with this press release and in the Company’s filing with the Securities and Exchange Commission on Form 10-Q which is expected to be filed later today.
The Company reported a net loss on a GAAP basis of $5.1 million, or diluted loss per share of $0.23, for the third quarter of fiscal 2011, compared to a net loss on a GAAP basis of $14.4 million, or diluted loss per share of $0.64, for the third quarter of fiscal 2010. The reported results for the quarter ended October 31, 2010, include a $2.9 million write-off of costs of financing transactions not completed, while the reported results for the quarter ended October 31, 2009, include a $9.6 million goodwill impairment charge and a $4.1 million increase in the Company’s litigation reserves, for which no tax benefit was recorded. The reduced loss before income taxes experienced in the retail segment during the quarter was partially offset by a larger loss before income taxes in the credit segment. The adjusted net loss, excluding the write-off of costs of financing transactions not completed, was $3.2 million for the third quarter of fiscal 2011, compared with an adjusted net loss, excluding the goodwill impairment charge and litigation reserve adjustment, of $4.0 million for the third quarter of fiscal 2010.
Completion of Refinancing Plan
On November 30, 2010, the Company completed its previously announced refinancing plan. The Company’s debt facilities now include a $375 million asset-based loan maturing in November 2013 and a $100 million second lien term loan maturing in November 2014. Additionally, the Company issued 9.3 million shares under a common stock subscription rights offering, which raised gross proceeds of $25.0 million. A portion of the net proceeds from the financing transactions and rights offering were utilized to repay all of the Company’s outstanding obligations under its asset-backed securitization program. After the closing of the financing transactions, the Company had $276.0 million outstanding under its asset-based loan, including standby letters of credit issued, and $94 million, net of original issue discount, outstanding under its second lien term loan, leaving the Company with total borrowing capacity of $99.0 million, subject to borrowing base and covenant limitations.
Conference Call Information
Conn’s, Inc. will host a conference call and audio webcast today, December 2, 2010, at 10:00 AM, CT, to discuss its financial results for the quarter ended October 31, 2010. The webcast will be available live at www.conns.com and will be archived for one year. Participants can join the call by dialing 877-754-5302 or 678-894-3020.
About Conn’s, Inc.
The Company is a specialty retailer currently operating 76 retail locations in Texas, Louisiana and Oklahoma: with 23 stores in the Houston area, 20 in the Dallas/Fort Worth Metroplex, nine in San Antonio, five in Austin, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and three in Oklahoma. It sells home appliances, including refrigerators, freezers, washers, dryers, dishwashers and ranges, and a variety of consumer electronics, including LCD, LED, 3-D, plasma and DLP televisions, camcorders, digital cameras, computers and computer accessories, Blu-ray and DVD players, video game equipment, portable audio, MP3 players, GPS devices and home theater products. The Company also sells lawn and garden products, furniture and mattresses, and continues to introduce additional product categories for the home to help respond to its customers’ product needs and to increase same store sales. Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. In the last three years, the Company financed, on average, approximately 61% of its retail sales.
This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “could,” “estimate,” “should,” “anticipate,” or “believe,” or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to be correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to:
- the Company’s ability to fund operations, debt repayment and expansion from cash flow from operations, borrowings on its revolving lines of credit and proceeds from securitizations and from accessing debt or equity markets;
- the ability of the Company to obtain additional funding for the purpose of funding the receivables generated by the Company;
- the ability of the Company to maintain compliance with the covenants in its financing facilities or obtain amendments or waivers of the covenants to avoid violations or potential violations of the covenants;
- reduced availability under the Company’s credit facilities as a result of borrowing base requirements and the impact on the borrowing base calculation of changes in the performance or eligibility of the customer receivables financed by that facility;
- delinquency and loss trends in the receivables portfolio;
- the Company’s ability to offer flexible financing programs;
- the Company’s growth strategy and plans regarding opening new stores and entering new markets;
- the effect of closing or reducing the hours of operation of existing stores;
- the Company’s intention to update, relocate or expand existing stores;
- the Company’s estimated capital expenditures and costs related to the opening of new stores or the update, relocation or expansion of existing stores;
- the Company’s ability to introduce additional product categories;
- the ability of the financial institutions providing lending facilities to the Company to fund their commitments;
- the effect on borrowing costs of downgrades by rating agencies or changes in laws or regulations on the Company’s financing providers;
- the Company’s ability to amend, renew or replace its existing credit facilities before the maturity dates of the facilities;
- the cost of any amended, renewed or replacement credit facilities;
- growth trends and projected sales in the home appliance, consumer electronics and furniture and mattresses industries and the Company’s ability to capitalize on such growth;
- the pricing actions and promotional activities of competitors;
- relationships with the Company’s key suppliers;
- interest rates;
- general economic and financial market conditions;
- weather conditions in the Company’s markets;
- the outcome of litigation or government investigations;
- changes in the Company’s stock price; and
- the actual number of shares of common stock outstanding.
Further information on these risk factors is included in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K/A filed on April 12, 2010 and the Company’s quarterly report on Form 10-Q filed on August 26, 2010. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
Conn’s, Inc. | |||||||||||||||
CONDENSED, CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(unaudited) | |||||||||||||||
(in thousands, except earnings per share) | |||||||||||||||
Three Months EndedOctober 31, | Nine Months EndedOctober 31, | ||||||||||||||
2009 | 2010 | 2009 | 2010 | ||||||||||||
Revenues | |||||||||||||||
Total net sales | $ | 161,382 | $ | 136,839 | $ | 551,832 | $ | 478,780 | |||||||
Finance charges and other | 36,116 | 33,019 | 115,945 | 102,262 | |||||||||||
Total revenues | 197,498 | 169,858 | 667,777 | 581,042 | |||||||||||
Cost and expenses | |||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 120,963 | 99,546 | 407,594 | 343,979 | |||||||||||
Cost of parts sold, including warehousing and occupancy costs | 2,672 | 1,642 | 8,056 | 6,134 | |||||||||||
Selling, general and administrative expense | 65,307 | 56,507 | 192,326 | 178,876 | |||||||||||
Goodwill impairment | 9,617 | – | 9,617 | – | |||||||||||
Costs related to financing transactions not completed | – | 2,896 | – | 2,896 | |||||||||||
Provision for bad debts | 12,651 | 9,372 | 26,321 | 24,694 | |||||||||||
Total cost and expenses | 211,210 | 169,963 | 643,914 | 556,579 | |||||||||||
Operating income (loss) | (13,712 | ) | (105 | ) | 23,863 | 24,463 | |||||||||
Interest expense, net | 5,649 | 7,722 | 16,692 | 20,234 | |||||||||||
Other (income) expense, net | (34 | ) | (17 | ) | (54 | ) | 166 | ||||||||
Income (loss) before income taxes | (19,327 | ) | (7,810 | ) | 7,225 | 4,063 | |||||||||
Provision (benefit) for income taxes | (4,955 | ) | (2,716 | ) | 5,017 | 1,925 | |||||||||
Net income (loss) | $ | (14,372 | ) | $ | (5,094 | ) | $ | 2,208 | $ | 2,138 | |||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (0.64 | ) | $ | (0.23 | ) | $ | 0.10 | $ | 0.10 | |||||
Diluted | $ | (0.64 | ) | $ | (0.23 | ) | $ | 0.10 | $ | 0.10 | |||||
Average common shares outstanding | |||||||||||||||
Basic | 22,459 | 22,493 | 22,453 | 22,484 | |||||||||||
Diluted | 22,459 | 22,493 | 22,658 | 22,487 |
Note: | The Company changed its presentation of the amortization of deferred financing costs. The expense was previously included in Selling, general and administrative expense and is now reflected in Interest expense, net. |
Conn’s, Inc. – Retail Segment | ||||||||||||||||
CONDENSED FINANCIAL INFORMATION | ||||||||||||||||
(unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months EndedOctober 31, | Nine Months EndedOctober 31, | |||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||
Total revenues | $ | 164,326 | $ | 140,533 | $ | 559,894 | $ | 489,141 | ||||||||
Cost and expenses | ||||||||||||||||
Cost of goods and parts sold, including warehousing and occupancy costs | 123,635 | 101,188 | 415,650 | 350,113 | ||||||||||||
Selling, general and administrative expense | 50,360 | 41,379 | 146,569 | 130,984 | ||||||||||||
Goodwill impairment | 9,617 | – | 9,617 | – | ||||||||||||
Provision for bad debts | (22 | ) | 174 | 43 | 467 | |||||||||||
Total cost and expenses | 183,590 | 142,741 | 571,879 | 481,564 | ||||||||||||
Operating income (loss) | (19,264 | ) | (2,208 | ) | (11,985 | ) | 7,577 | |||||||||
Other (income) expense, net | (34 | ) | (17 | ) | (54 | ) | 166 | |||||||||
Segment income (loss) before income taxes | $ | (19,230 | ) | $ | (2,191 | ) | $ | (11,931 | ) | $ | 7,411 |
Conn’s, Inc. – Credit Segment | ||||||||||||||||
CONDENSED FINANCIAL INFORMATION | ||||||||||||||||
(unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months EndedOctober 31, | Nine Months EndedOctober 31, | |||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||
Total revenues | $ | 33,172 | $ | 29,325 | $ | 107,883 | $ | 91,902 | ||||||||
Cost and expenses | ||||||||||||||||
Selling, general and administrative expense | 14,947 | 15,128 | 45,757 | 47,892 | ||||||||||||
Costs related to financing transactions not completed | – | 2,896 | – | 2,896 | ||||||||||||
Provision for bad debts | 12,673 | 9,198 | 26,278 | 24,227 | ||||||||||||
Total cost and expenses | 27,620 | 27,222 | 72,035 | 75,015 | ||||||||||||
Operating income | 5,552 | 2,103 | 35,848 | 16,887 | ||||||||||||
Interest expense, net | 5,649 | 7,722 | 16,692 | 20,234 | ||||||||||||
Segment income (loss) before income taxes | $ | (97 | ) | $ | (5,619 | ) | $ | 19,156 | $ | (3,347 | ) |
Conn’s, Inc. | |||||||||
CONDENSED, CONSOLIDATED BALANCE SHEETS | |||||||||
(in thousands) | |||||||||
January 31, | October 31, | ||||||||
2010 | 2010 | ||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 12,247 | $ | 12,422 | |||||
Other accounts receivable, net | 23,254 | 26,025 | |||||||
Customer accounts receivable, net | 368,304 | 344,482 | |||||||
Inventories | 63,499 | 83,729 | |||||||
Deferred income taxes | 15,237 | 13,508 | |||||||
Prepaid expenses and other assets | 16,198 | 14,044 | |||||||
Total current assets | 498,739 | 494,210 | |||||||
Non-current deferred income tax asset | 5,485 | 6,685 | |||||||
Long-term customer accounts receivable, net | 318,341 | 288,738 | |||||||
Total property and equipment, net | 59,703 | 51,615 | |||||||
Other assets, net | 10,198 | 22,101 | |||||||
Total assets | $ | 892,466 | $ | 863,349 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Current Liabilities | |||||||||
Current portion of long-term debt | $ | 64,055 | $ | 7,665 | |||||
Accounts payable | 39,944 | 39,997 | |||||||
Accrued compensation and related expenses | 5,697 | 4,896 | |||||||
Accrued expenses | 31,685 | 27,779 | |||||||
Other current liabilities | 17,236 | 14,185 | |||||||
Total current liabilities | 158,617 | 94,522 | |||||||
Long-term debt | 388,249 | 419,932 | |||||||
Other long-term liabilities | 6,437 | 5,677 | |||||||
Total stockholders’ equity | 339,163 | 343,218 | |||||||
Total liabilities and stockholders’ equity | $ | 892,466 | $ | 863,349 |
CALCULATION OF GROSS MARGIN PERCENTAGES
(dollars in thousands) |
|||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
October 31, | October 31, | ||||||||||||||||||
2009 | 2010 | 2009 | 2010 | ||||||||||||||||
A | Product sales | $ | 148,463 | $ | 127,035 | $ | 508,669 | $ | 443,778 | ||||||||||
B | Repair service agreement commissions, net | 7,320 | 6,035 | 25,968 | 22,293 | ||||||||||||||
C | Service revenues | 5,599 | 3,769 | 17,195 | 12,709 | ||||||||||||||
D | Total net sales | 161,382 | 136,839 | 551,832 | 478,780 | ||||||||||||||
E | Finance charges and other | 36,116 | 33,019 | 115,945 | 102,262 | ||||||||||||||
F | Total revenues | 197,498 | 169,858 | 667,777 | 581,042 | ||||||||||||||
G | Cost of goods sold, including warehousing and occupancy cost | (120,963 | ) | (99,546 | ) | (407,594 | ) | (343,979 | ) | ||||||||||
H | Cost of parts sold, including warehousing and occupancy cost | (2,672 | ) | (1,642 | ) | (8,056 | ) | (6,134 | ) | ||||||||||
I | Gross margin dollars (F+G+H) | $ | 73,863 | $ | 68,670 | $ | 252,127 | $ | 230,929 | ||||||||||
Gross margin percentage (I/F) | 37.4 | % | 40.4 | % | 37.8 | % | 39.7 | % | |||||||||||
J | Retail margin dollars (A+B+G) | $ | 34,820 | $ | 33,524 | $ | 127,043 | $ | 122,092 | ||||||||||
Retail margin percentage (J/(A+B)) | 22.4 | % | 25.2 | % | 23.8 | % | 26.2 | % |
MANAGED PORTFOLIO STATISTICS | |||||||||||||||||||||||||
For the periods ended January 31, 2007, 2008, 2009 and 2010 and October 31, 2009 and 2010 | |||||||||||||||||||||||||
(dollars in thousands, except average outstanding balance per account) | |||||||||||||||||||||||||
January 31, | October 31, | ||||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2009 | 2010 | ||||||||||||||||||||
Total accounts | 459,065 | 510,922 | 537,957 | 551,312 | 544,196 | 521,316 | |||||||||||||||||||
Total outstanding balance | $ | 569,551 | $ | 654,867 | $ | 753,513 | $ | 736,041 | $ | 738,197 | $ | 676,994 | |||||||||||||
Average outstanding balance per account | $ | 1,241 | $ | 1,282 | $ | 1,401 | $ | 1,335 | $ | 1,356 | $ | 1,299 | |||||||||||||
Balance 60+ days delinquent | $ | 37,662 | $ | 49,778 | $ | 55,141 | $ | 73,391 | $ | 68,512 | $ | 64,934 | |||||||||||||
Percent 60+ days delinquent | 6.6 | % | 7.6 | % | 7.3 | % | 10.0 | % | 9.3 | % | 9.6 | % | |||||||||||||
Percent of portfolio reaged | 17.8 | % | 16.6 | % | 18.7 | % | 19.6 | % | 18.8 | % | 18.7 | % | |||||||||||||
Net charge-off ratio (YTD annualized) | 3.3 | % | 2.9 | % | 3.2 | % | 3.9 | % | 3.6 | % | 4.9 | % |
NON-GAAP RECONCILIATION OF NET INCOME (LOSS), AS ADJUSTED | ||||||||||||||||||
AND DILUTED EARNINGS (LOSS) PER SHARE, AS ADJUSTED | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
(in thousands, except earnings per share) | ||||||||||||||||||
Three Months EndedOctober 31, | Nine Months EndedOctober 31, | |||||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||||
Net income (loss), as reported | $ | (14,372 | ) | $ | (5,094 | ) | $ | 2,208 | $ | 2,138 | ||||||||
Adjustments: | ||||||||||||||||||
Goodwill impairment charge | 9,617 | – | 9,617 | – | ||||||||||||||
Litigation reserve adjustment | 4,100 | – | 4,850 | – | ||||||||||||||
Costs related to financing transactions not completed | – | 2,896 | – | 2,896 | ||||||||||||||
Tax impact of adjustments | (3,385 | ) | (1,019 | ) | (3,508 | ) | (1,019 | ) | ||||||||||
Net income (loss), as adjusted | $ | (4,040 | ) | $ | (3,217 | ) | $ | 13,167 | $ | 4,015 | ||||||||
Average common shares outstanding – Diluted | 22,459 | 22,493 | 22,658 | 22,487 | ||||||||||||||
Earnings (loss) per share – Diluted | ||||||||||||||||||
As reported | $ | (0.64 | ) | $ | (0.23 | ) | $ | 0.10 | $ | 0.10 | ||||||||
As adjusted | $ | (0.18 | ) | $ | (0.14 | ) | $ | 0.58 | $ | 0.18 |
Basis for presentation of non-GAAP disclosures:
To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles (“GAAP”), the Company also provides adjusted net income (loss) and adjusted earnings (loss) per diluted share information. These non-GAAP financial measures are not meant to be considered as a substitute for comparable GAAP measures but should be considered in addition to results presented in accordance with GAAP, and are intended to provide additional insight into the Company’s operations and the factors and trends affecting the Company’s business. The Company’s management believes these non-GAAP financial measures are useful to financial statement readers because (1) they allow for greater transparency with respect to key metrics the Company uses in its financial and operational decision making and (2) they are used by some of its institutional investors and the analyst community to help them analyze the Company’s operating results.
CONN-F
Conn’s, Inc., Beaumont
Chief Financial Officer
Michael J. Poppe, 409-832-1696 Ext. 3294
CAMAC Energy (CAK) Announces Early Commencement of Oyo #5 Well Intervention
Dec. 1, 2010 (Business Wire) — CAMAC Energy Inc. (NYSE Amex: CAK), a U.S.-based energy company engaged in the exploration, development and production of oil and gas, today announced that it has been notified by its partner, Nigerian Agip Exploration Limited (“NAE”), that the well intervention planned on the Oyo #5 well, located in the Oyo Field located offshore Nigeria, is scheduled to commence on December 4, 2010 with the mobilization of the Transocean Marianas to the field. The mobilization is commencing earlier than previously anticipated due to the availability of the Marianas, a fourth generation Earl & Wright Sedco 700 design semi-submersible drilling unit that will be performing the intervention. CAMAC Energy acquired a 60% contractual interest in the Oyo Field in April 2010 and NAE is the Oyo Field’s operator and a subsidiary of ENI SpA, one of the world’s largest international energy companies.
Following commencement of production from the Oyo Field in December 2009, oil production from the Oyo #5 well has been decreasing due to higher than expected gas production from the well. The intervention program is designed to address this gas breakthrough and improve oil production from the well. The intervention program will include the running of a suite of Schlumberger production logging tools, which will seek to determine the source of gas breakthrough, into the horizontal section of the wellbore. This will be followed by an engineered polymer injection in zones with identified gas breakthrough which is designed to decrease gas production and increase oil flow from these zones. The total work program, from rig up on location, to rig down, is expected to be completed in approximately 35 days.
The well intervention is expected to allow Oyo #5’s oil production to increase from approximately 3,500 Bopd currently to approximately 7,500 to 9,500 Bopd for the next 12 months following completion of the intervention, with estimated combined production from the Oyo #5 and Oyo #6 wells to between 9,500 and 11,500 Bopd following the Oyo #5 well intervention. The intervention is also anticipated to provide valuable reservoir information that will assist in the completion design of new drilling in the Oyo Field.
About CAMAC Energy Inc.
CAMAC Energy Inc. (NYSE Amex: CAK) is a U.S.-based energy company engaged in the exploration, development and production of oil and gas. The Company focuses on early cash flow and high-return global energy projects and currently has operations in Nigeria and, through its Pacific Asia Petroleum subsidiaries, in China. The Company’s principal assets include interests in the Oyo Oilfield, an offshore oil asset in deepwater Nigeria that started production in December 2009, a 100% interest in the Zijinshan Block gas asset located in the Shanxi Province, China, and the Enhanced Oil Recovery and Production business in Northern China. The Company was founded in 2005 and has offices in Hartsdale, New York, Houston, Texas, Beijing, China, and Lagos, Nigeria.
Forward-Looking Statements
This press release may contain certain “forward-looking statements” relating to the business of CAMAC Energy Inc. and its subsidiaries. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding: the Oyo #5 well intervention; the general ability of CAMAC Energy Inc. to achieve its commercial objectives; the business strategy, plans and objectives of CAMAC Energy Inc. and its subsidiaries; and any other statements of non-historical information. Words such as “anticipates,” “expects,” “plans,” “projects,” “believes,” “seeks,” “estimates,” and similar expressions are intended to identify such forward-looking statements. The statements are based upon management’s current expectations, estimates and projections, are not guarantees of future performance, and are subject to a variety of risks, uncertainties and other factors, some of which are beyond CAMAC Energy Inc.’s control and are difficult to predict, including those discussed in CAMAC Energy Inc.’s periodic reports that are filed with the SEC and available on its website (http://www.sec.gov). You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, CAMAC Energy Inc. undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Media:
CAMAC Energy Inc.
Bonnie Tang, 713-364-4114
or
IR:
ICR
832-209-1419
AdCare Health Systems (ADK) to Acquire Three Skilled Nursing Centers in Georgia
SPRINGFIELD, OH–(Marketwire – 12/01/10) – AdCare Health Systems, Inc. (AMEX:ADK – News), a recognized innovator in senior living and health care facility management, has signed a definitive purchase agreement for three skilled nursing facilities in Georgia for $18 million. Two are located near Atlanta, with one near Dublin.
The facilities have on aggregate 335 beds that generate an estimated $16.4 million in annualized revenues. The acquisition is anticipated to be immediately accretive to AdCare’s earnings upon closing, which is expected in the first quarter of 2011.
Combined with other transactions closed earlier this year, plus the Mountain Trace skilled nursing facility expected to close by year’s end, AdCare’s estimated annualized revenue run-rate would exceed $140 million. This would represent an increase of more than 424% over the company’s annual revenues of $26.7 million in 2009.
“This purchase agreement brings the total number of facilities we’ve put under contract to seventeen since we began our M&A campaign at the end of last year,” said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. “They would expand our presence in Georgia, adding to the 10 facilities we already operate in the state.”
AdCare plans to finance the acquisition through bank loans, with the loan for one of the facilities to be guaranteed by the United States Department of Agriculture (USDA). The guarantee is provided through a program developed by the government to supply long-term financing for rural projects at favorable rates.
“Choice opportunities continue to emerge in the southern region of the U.S., as well as around our home base in the Midwest,” notes Brogdon. “Our M&A pipeline will remain a major focus as we complete the year and begin 2011.”
Brogdon joined AdCare in September 2009 when the company announced a new M&A growth strategy to build upon its strong reputation for operational efficiency and high-quality living environments.
About AdCare Health Systems
AdCare Health Systems, Inc. (AMEX:ADK – News) is a recognized innovator in senior living and health care facility management. AdCare develops, owns and manages assisted living facilities, nursing homes and retirement communities, as well as provides home health care services. Since its inception in 1988, AdCare’s mission has been to provide the highest quality of healthcare services to the elderly. For more information about AdCare, visit www.adcarehealth.com.
Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “plans,” “intends,” “anticipates” and variations of such words or similar expressions, but their absence does not mean such statements are not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, the expectation that when combined with other transactions closed or placed under contract earlier this year, AdCare’s estimated annualized revenue run-rate would exceed $140 million upon closing of these three facilities in Georgia, which would represent an increase of more than 424% over revenues in 2009, and that they are expected to be immediately accretive to AdCare’s earnings. Such forward-looking statements reflect management’s beliefs and assumptions and are based on information currently available to management. The forward-looking statements involve known and unknown risks, results, performance or achievements of the Company to differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by the Company with the Securities and Exchange Commission and include the Company’s ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs, and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
GT Solar (SOLR) Receives First Orders for Sapphire Crystallization Furnaces
Dec. 1, 2010 (Business Wire) — GT Solar International, Inc. (NASDAQ: SOLR), a global provider of polysilicon production technology, and sapphire and silicon crystalline growth systems and materials for the solar, LED and other specialty markets, today announced that it has received its first two orders totaling more than $84 million for sapphire crystallization systems. The orders come from Jiangsu Jixing New Material Co., Ltd and Jiujiang Sapphire Tech Co., Ltd. Total annual production capacity of the two orders is approximately eight million two-inch equivalents (TIE) of sapphire substrates.
“GT Solar is pleased that both Jiangsu Jixing New Material Co., Ltd and Jiujiang Sapphire Tech Co., Ltd, affiliates of two highly valued long term PV customers, have selected our sapphire crystallization equipment for their new production facilities,” said Tom Gutierrez, president and CEO of GT Solar. “The response to our sapphire equipment strategy from customers has been very positive and we are pleased to be able to announce our first orders. We continue to talk with other potential customers in the Asia region for our sapphire crystallization systems and believe we are on track to meet our projected $100 million in revenue in our FY12 from sapphire crystallization equipment sales.”
The two orders represent GT Solar’s entry into the LED equipment market, which GT Solar stated it would pursue when it announced its acquisition of Crystal Systems in July of 2010. Both Jiangsu Jixing New Material Co., Ltd and Jiujiang Sapphire Tech Co., Ltd are positioning themselves to capitalize on the expected growth of the LED market over the coming years by building the capacity to produce high quality, large area sapphire substrates. These initial customers will be targeting the high brightness LED market segment.
“Our advanced sapphire crystallization systems are built on a highly scalable and reliable architecture that lets customers quickly ramp to volume production with a lower capital investment compared with other competing crystallization technologies,” continued Mr. Gutierrez. “The combination of our technology and the depth of our regional service and installation expertise deliver compelling value to our customers by reducing the risks of equipping and commissioning a new manufacturing facility.”
The two orders in combination with other DSS and polysilicon orders bring GT Solar’s Q3 quarter-to-date bookings to more than $245 million and strengthen the company’s view for a strong FY 2012 based on the pipeline of orders still under discussion with customers.
About GT Solar International, Inc.
GT Solar International, Inc. (NASDAQ: SOLR), is a global provider of polysilicon production technology, and sapphire and silicon crystalline growth systems and materials for the solar, LED and other specialty markets. The company’s products and services allow its customers to optimize their manufacturing environments and lower their cost of ownership. For additional information about GT Solar, please visit www.gtsolar.com.
Forward-Looking Statements
Some of the statements in this press release are forward-looking in nature, including statements regarding expected revenue from customer contracts for sapphire crystallization systems and for expected orders in the Company’s current third fiscal quarter of FY2010. These statements are based on management’s current expectations or beliefs. These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the Company’s control, which could cause actual events to differ materially from those expressed or implied by the statements. Factors that may cause actual events to differ materially from those expressed or implied by our forward-looking statements include the possibility that the Company is unable to recognize revenue on customer contracts, that technological changes could render existing products or technologies obsolete, the Company may be unable to protect its intellectual property rights, competition from other manufacturers may increase, exchange rate fluctuations and conditions in the credit markets and economy may reduce demand for the Company’s products and various other risks as outlined in GT Solar International, Inc.’s filings with the Securities and Exchange Commission, including the statements under the heading “Risk Factors” in the Company’s annual report on Form 10-K for the fiscal 2010 filed on June 4, 2010 and quarterly report on Form 10-Q for the second fiscal quarter filed on November 9, 2010. GT Solar International, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
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Sify (SIFY) Reports Revenues of US $ 38.16 Million for Second Quarter of Fiscal 2010-11
Sify Technologies Limited (NASDAQ Global Markets: SIFY), a leader in Enterprise and Consumer Internet Services in India with global delivery capabilities, today announced its consolidated unaudited results under International Financial Reporting Standards (IFRS) for the second quarter of fiscal year 2010-11. The Company reported revenue of US$38.16 million and net loss for the quarter of US$ 3.38 million. This compares with revenue of US$ 38.69 million and net loss of US$ 2.62 million in the year-ago quarter. The revenue and net loss for prior quarter were at US$ 38.46 million and US$ 3.33 million respectively. Gross margins improved to 38%, up from 37% for the previous quarter.
“We are pleased with the positive momentum generated by the recently launched Cloud Services and the increasing maturity of our new Enterprise Model,” said Raju Vegesna, CEO of Sify Technologies Ltd. “Our efforts to configure the Company as a delivery vehicle for Managed services by vertical integration of Sify’s Private Cloud, technology infrastructure and Business Operations is progressing well. Our new alliances with world-class partners enhance our core competencies and enable us to deliver best-in-class solutions to our customers and our partners and their customers as we continue to focus on improved financial results. These alliances with major industry partners have been a matter of great satisfaction for us and with the start of our fully owned subsidiary, Sify Software Ltd. (SSL), we will begin to offer in-house products developed over open-source to our Enterprise customers. We want to create solutions for our Customers and elevate our services up by a notch”.
Sify launched its Cloud Services for Data Storage and Computing in a tie-up with Hitachi and HP in fourth quarter of fiscal 2009-10.
“Our International business has scaled up and is now contributing to 10% of the Company’s revenue,” said CVS. Suri, Chief Operating Officer. “Both the Infrastructure Management business and the eLearning business are venturing into new lines of activities; while the IMS business has added in its portfolio, hardware sales and systems integration along with IMS services, the eLearning business has started seeing traction with its customized LMS platform, having signed on its first customers. In the Enterprise segment our effort is to deepen our relationship with existing customers with Cloud offerings. On the Consumer side, we have reached out with value packages to the SOHO and mini-business segments. Our residential Broadband strategy will be around providing wireless services, following the success of our pilot in Chennai.”
“We are pleased to announce positive cash flows from operations amounting to US$ 0.62 million this quarter,” said MP Vijay Kumar, CFO of the Company. “Positive cash flows from operations have been sustained over the last three quarters through better working capital management, and continued focus on better cost control, increasing productivity by better utilization of existing resources and ensuring profitability of on-going projects. A zero-based approach to every dollar of expenditure drives our efforts to generate better financial performance. We are increasingly focusing on tax-refunds, collections and quality procurement to give added support to our business teams. The Company’s liquidity position is expected to be satisfactory with the infusion of capital.”
Sify reported in August 2010 that its promoter will infuse capital of US$ 86 million towards liquidity and expansion of the Company’s operations.
Unaudited Consolidated income statement as per IFRS (( In $ million, all translated at $1 = Rs.44.92)
Description Quarter ended Quarter Ended September September 2010 2009 Unaudited Enterprise 31.30 30.27 * Consumer 3.03 5.24 Others 3.83 3.18 Revenue 38.16 38.69 Cost of Revenues (23.63) (23.45) * Selling, General and Administrative Expenses (13.91) (14.11) EBIDTA 0.62 1.13 Depreciation and Amortisation expenses (3.89) (3.34) Net Finance Expenses (1.30) (1.53) Other Income 0.45 0.67 Share of Affiliates 0.74 0.45 Profit / (loss) Before tax (3.38) (2.62) Income Taxes - - Profit / (loss) for the period (3.38) (2.62) Profit attributable to: Owners of the parent (3.38) (2.62) Non-controlling interests - - Net income / (loss) - After minority interest (3.38) (2.62) (table continued) Description Quarter ended Year Ended June March 2010 2010 Unaudited Unaudited Enterprise 32.13 118.77 Consumer 3.20 18.81 Others 3.13 11.80 Revenue 38.46 149.38 Cost of Revenues (24.05) (91.20) Selling, General and Administrative Expenses (13.08) (54.90) EBIDTA 1.33 3.28 Depreciation and Amortisation expensese (3.89) (15.69) Net Finance Expenses (1.39) (5.92) Other Income 0.42 15.43 Share of Affiliates 0.20 2.03 Profit / (loss) Before tax (3.33) (0.87) Income Taxes - 1.81 Profit / (loss) for the period (3.33) 0.94 Profit attributable to: Owners of the parent (3.33) 0.73 Non-controlling interests - 0.22 Net income / (loss) - After minority interest (3.33) 0.94 * Reflects an immaterial error correction to report revenue and cost of revenue of USD 2.24 million relating to certain trading transactions on net basis. This adjustment did not have any impact on the reported net income or earning per share. Non Financial Indicators Qtr Ended Year Ended Sep 10 Sep 09 Jun 10 Mar 10 e Port Subscribers active (000s) 104 306 134 165 No of e Ports (Operational) 1,141 1,500 1,081 1227 Broadband Subscribers (000s) 79 137 82 106 No of CTOs 1,645 1,994 1,767 1967 ARPU 36 303 273 285 Technology No of PoPs 622 573 615 604 BUSINESS HIGHLIGHTS Enterprise Business
Sify’s Enterprise business has successfully added several large enterprise customers in all its business verticals. Riding on the back of growing demand for Cloud and Data Center services and backed by alliances with some of the industry’s leading players, Sify consolidated its position as a Managed Services Provider.
Connectivity:
Sify has successfully closed the quarter with significant wins from sectors like IT, Telecom, Retail, Manufacturing and Govt. Some of the major wins during the quarter were from Videocon Mobile Services, Planet M, Meggit, Toshiba, Maruti Suzuki etc.
The SME market is growing and in order to address this segment, Sify has launched “Just Connect” which provides Clean Internet Bandwidth with robust RF last mile connectivity.
Hosting:
The Hosting business has grown by 18% over the same quarter previous year. The Cloud Computing Services launched in Q1 have shown very high acceptance in market. This has helped Sify to win many contracts including Getit, ABP (Ananda Bazaar Patrika) etc. The Government of Maharashtra has also awarded a contract to Sify for providing Cloud Computing Services to its departments. All the customer contracts include IaaS (Infrastructure as a Service) i.e. On-demand Compute, On-demand Storage and Managed Services.
The growth in the Hosting business has been driven both through the addition of new customers as well as existing customers have increased their capacities. Some of these contracts include PACNET, L’Oreal, Kelloggs etc. Sify is actively working with ISV communities to host their applications on the Cloud platform.
Managed Voice services:
Business Volume (in minutes) of International Long Distance (ILD) business (India Termination) has grown by a little over 24% this quarter over the previous quarter and the revenue grew by around 12%. 10 new carriers have been added as customers in the last quarter for voice termination.
System Integration Business:
Sify has been awarded the contract for the Kerala State Data Center. With this win, the total number of State Data Center projects won by Sify will reach five. Sify’s Data Center Build-practice in the Enterprise segment is also gaining momentum. During the last quarter we won the contract to build a Data Center for Vodafone.
CONSUMER SERVICES
Launch of India’s first Consumer Cloud Services – Sify mylife – In July 2010, Sify launched India’s first Consumer Cloud Services, branded as Sify mylife. Sify mylife is a rich ecosystem which enables consumers to access a whole new world of services, application developers to build and host solutions on Sify mylife and advertisers to talk to people who access the net, either at cafes, at home or on mobile internet devices like smart phones.
End consumers can connect to Sify mylife from the new model of cyber cafes. While Sify ePorts (cybercafes) are cloud-access-ready, any other cybercafe can also connect to Sify mylife either through a Sify Broadband connection or a specially designed ‘Sify Edge’ device. Sify mylife empowers cyber cafes with a host of benefits – cyber security tools, cafe management software, lifestyle enhancing services for consumers, online test center, economical International calling facility, advertising & brand engagement platform and lots more. Based on the initial campaign, 500+ cyber cafes have signed on to this initiative.
“Hi5 from Sify” promotion campaign for new broadband portfolio – In line with the introduction of a refreshed and more competitive broadband portfolio, Sify launched a focused registration drive, with an attractive and competitively priced multi-month plan in the range. The marketing campaign ran across 5 major markets – Delhi, Mumbai, Kolkata, Hyderabad and Pune, with the key product driver for the campaign being the 3 months 384 kbps day/ 512 kbps night unlimited plan.
Broadband to SMB/ SOHO crosses the 300 mark – To capitalize on the large SMB (Small & Medium Businesses) population in India, Sify recently launched wireless broadband for the SMB/ SOHO segment under the name Platinum. With uninterrupted connectivity, dedicated speeds up to 2 Mbps, value added features and a dedicated helpline, the product provides a superior Internet connectivity to the SMB customer. Along with superior Internet connectivity, SMB customers get a superior voice product – Sify Talk.
Launch of Sify Talk, a “Voice over Broadband” service – September 2010 saw the launch of Sify Talk, a VoIP (Voice over Internet Protocol) service, targeted at Small and Medium Businesses (SMBs) and Small Office/Home Office (SOHO) businesses. Sify Talk enables customers to make International calls from any standard telephone device to any phone – saving up to 70% on their international call bills. The leading advantage is that neither does the caller need a computer to make a call nor does the recipient have to be connected to the Internet to receive the call. Further, Sify Talk is designed to work on any pre-existing broadband connection at the customer’s premise. Registration for Sify Talk is free and can be done by visiting http://www.talk.sify.com.
Sify Talk offers a wide range of plans ranging from Rs. 50 to Rs. 4000. Customers can even select plans specific to their international call destinations.
Sponsorship of Media Marketing round-table – In recognition of the increasing online audience visiting sports portals and as part of our trade marketing initiative, sify.com sponsored a Media Marketing round-table in Delhi (Gurgaon). The highlight of the event was the panel discussion which had as panelists : Joy Bhattacharjya, Chief Executive Officer, Kolkatta Knight Riders; Sandeep Singh Arora, Executive VP – Marketing, Pepsico India; Arnab Mitra, Director – India, Havas Digital and Arun Rajamani, GM Portals Business, Sify. The forum also afforded an opportunity for Sify to share and communicate its strengths in the Sports portals genre.
Launch of Sify optimized IE8 (Internet Explorer 8) – Sify-optimized IE8 comes with two key features – Web slices and Accelerators. Web Slices enable users to view the latest news, stock market updates or cricket scores just by a single click on the Favorites bar.
About Sify Technologies
Sify is among the largest Managed Enterprise and Consumer Internet Services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common telecom data network infrastructure reaching more than 600 cities and towns in India.
A significant part of the company’s revenue is derived from Corporate Services, which include corporate connectivity, network and communications solutions, security, network management services, enterprise applications and hosting. Sify is a recognized ISO 9001:2008 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP solutions and integrated security solutions, and ISO / IEC 20000 – 1:2005 certified for Internet Data Center operations. Sify has licenses to operate NLD (National Long Distance) and ILD (International Long Distance) services and offers VoIP back haul to long distance subscriber telephony services. The company is India’s first enterprise managed services provider to launch a Security Operations Center (SOC) to deliver managed security services. A host of blue chip customers use Sify’s corporate service offerings.
Sify also caters to global markets in the specialized domains of eLearning Services and Remote Infrastructure Management Services. The eLearning Services designs, develops and delivers state-of-the-art digital learning solutions for non-profit, for-profit organizations and governmental organizations in the fields of Information technology, engineering, environment, healthcare, education and finance. The Remote Infrastructure Management Services provides dependable and economical solutions around managed services, hosting and monitoring.
Consumer services include broadband home access and the ePort cyber cafe chain across more than 200 cities and towns in India. Sify.com, the popular consumer portal, has channels on news, entertainment, finance, sports, games and shopping. Samachar.com is the popular portal aimed at non-resident Indians around the globe. The site’s content is available in 8 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil, Punjabi and Gujarati in addition to English.
For more information about Sify, visit http://www.sifycorp.com.
Forward Looking Statements
Sify: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Sify undertakes no duty to update any forward-looking statements.
For a discussion of the risks associated with Sify’s business, please see the discussion under the caption “Risk Factors” in the company’s report on Form 6-K for the quarter ended September 30, 2009, which has been filed with the United States Securities and Exchange Commission and is available by accessing the database maintained by the SEC at http://www.sec.gov.
For further information, please contact Sify Technologies Limited Mr. Praveen Krishna Corporate Communications +91-44-22540777 (extn.2055) praveen.krishna@sifycorp.com Mr. Pijush Das Investor Relations +91-44-2254-0777 (ext. 2703) pijush.das@sifycorp.com Grayling Investor Relations Ms. Truc Nguyen (ext. 418) Mr. Christopher Chu (ext. 426) +1-646-284-9400 truc.nguyen@grayling.com christopher.chu@grayling.com
SOURCE Sify Technologies Limited
Sify Technologies Limited: Mr. Praveen Krishna, Corporate Communications, +91-44-22540777 (extn.2055), praveen.krishna@sifycorp.com; Mr. Pijush Das, Investor Relations, +91-44-2254-0777 (ext. 2703), pijush.das@sifycorp.com; Grayling Investor Relations, Ms. Truc Nguyen (ext. 418), Mr. Christopher Chu (ext. 426), +1-646-284-9400, truc.nguyen@grayling.com, christopher.chu@grayling.com
Uranium Energy Corp (UEC) Initiates Operations at Hobson Processing Facility in South Texas
CORPUS CHRISTI, TX – Uranium Energy Corp (NYSE AMEX: UEC, the “Company”) is pleased to announce that the Company has started the processing of the first shipment of uranium-loaded resins at its Hobson processing plant. This shipment and the start of processing follows the Company’s announcement on November 17, 2010 of the initial in-situ recovery (ISR) of uranium at Palangana in South Texas. The shipment, received at the Hobson plant on Sunday, November 28, consisted of 500 cubic feet of uranium-loaded resins contained within one of the Company’s two U.S. Department of Transportation-approved tanker trailers specially built for this purpose.
Harry Anthony, Chief Operating Officer, stated, “Hobson is a state-of-the-art processing facility now operating under the supervision of experienced staff headed by VP Production Bob Underdown and Hobson Superintendent Greg Kroll. We are confident of standard and secure operations here. We will continue to ramp up production at the Palangana ISR project and the Hobson processing facility over the ensuing weeks and months.”
The process of converting uranium loaded resin beads to marketable yellowcake (U3O8) at Hobson is as follows: stripping the uranium from the resin beads using a salt solution, precipitating the yellowcake slurry from the salt solution, filtering it from the remaining solution, then vacuum drying and packaging the yellowcake into drums for delivery. For more information on ISR mining, visit www.uraniumenergy.com and view the animated video noted on the home page.
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium production, development and exploration company operating North America’s newest uranium mine. The Company’s fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, which has just initiated production, and the Goliad in-situ recovery project which is in the final stages of mine permitting for production. The Company’s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining.
Stock Exchange Information:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission. For forward-looking statements in this new release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. ‘This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement Offering have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.
SOURCE Uranium Energy Corp
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