Archive for February, 2010

Acme United Corp. (ACU) Reports Fourth Quarter Sales Increase of 7% and Earnings Increase of 22%

Feb. 26, 2010 (Business Wire) — Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the quarter ended December 31, 2009, were $13.4 million compared to $12.6 million in the same period in 2008, an increase of 7% (4% in local currency). Net sales for the year ended December 31, 2009 were $59.1 million, compared to $68.7 million in the same period in 2008, a decrease of 14% (17% in local currency).

Net income for the fourth quarter ended December 31, 2009 was $731,000, or $.22 per diluted share, compared to $634,000, or $.18 per diluted share, for the comparable period last year, an increase of 22%. Net income for the year ended December 31, 2009 was $2,842,000, or $.85 per diluted share, compared to $4,467,000, or $1.24 per diluted share, in the comparable period last year.

Net sales for the year ended December 31, 2009, in the U.S. segment decreased 16% compared to 2008. Net sales in Canada for the year ended December 31, 2009 decreased 13% in U.S. dollars compared to 2008, and 6% in local currency. The decline in net sales for the twelve months ended December 31, 2009 in the U.S. and Canadian segment was principally due to the economic downturn. European net sales for the year ended December 31, 2009 increased 3% in U.S. dollars and 8% in local currency compared to 2008.

Gross margins were 39% for the fourth quarter ended December 31, 2009 and 2008, respectively. Gross margins were 37% for 2009 compared to 40% in 2008. The gross margin decline for the year was primarily due to fixed costs spread over lower sales, the weaker Canadian dollar which raised the cost of products in our Canadian segment, and product mix.

Operating income in the fourth quarter ended December 31, 2009 was $293,000, compared to $795,000 in the fourth quarter of 2008. Operating income in the fourth quarter of 2009 included a $210,000 write-off of medical products donated for relief efforts. The fourth quarter of 2008 included a benefit of $400,000 from the reversal of incentive compensation liabilities. Excluding these items, operating income was $503,000 in the fourth quarter of 2009 compared to $395,000 in 2008.

Pretax income in the fourth quarter ended December 31, 2009 was $266,000 compared to $875,000 in the fourth quarter of 2008. Included in pretax income in the fourth quarter of 2008 was $265,000 in other income related to the Company’s gain on the sale of its former facility in Bridgeport, CT, which had ceased manufacturing in 1996. Excluding the $210,000 charge associated with the donation of medical products and the exceptional items in the fourth quarter of 2008, pretax income was $476,000 in the fourth quarter of 2009 compared to $210,000 in same period in 2008.

In the fourth quarter of 2009, the Company recorded an income tax benefit of approximately $464,000, which was primarily due to $500,000 of tax savings related to the Company’s donation of medical products to AmeriCares and the donation of land to the City of Bridgeport, CT. This donation, which occurred in December 2009, consisted of waterfront property adjacent to the property the Company sold in December 2008.

The full year effective tax rate in 2009 was 18%, compared to 33% in 2008. The decrease in the effective tax rate in 2009 was primarily the result of the $500,000 of tax savings resulting from the donations. Without these credits, the effective tax rate would have been approximately 32% for 2009.

Walter C. Johnsen, Chairman and CEO said, “We completed 2009 with momentum. Our award-winning iPoint pencil sharpeners are gaining wide distribution, the Speed Pak utility knives are building sales, and the Camillus knife sales are growing. Our new proprietary non-stick coatings are broadening our product applications for cutting in the craft, office, industrial, hardware and other markets.”

Mr. Johnsen added that he was pleased with the Company’s substantial reduction in debt during the year, and its new bank facility obtained in January 2010. He emphasized that Acme United enters 2010 with a stronger balance sheet than a year ago, and is well positioned for growth.

The Company’s bank debt less cash on December 31, 2009 was $2.7 million compared to $6.5 million on December 31, 2008. During fiscal year 2009, the Company repurchased 206,000 shares of its common stock for approximately $1.7 million and paid $700,000 in dividends on its common stock; the expenditures were offset by cash flow from operations of $6.6 million.

ACME UNITED CORPORATION is an innovative supplier of cutting devices, measuring instruments and safety products for school, home, office, industrial and hardware use. Its leading brands include Westcott®, Clauss®, Camillus® and PhysiciansCare ®.

Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the following: (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company’s suppliers and customers (iii) the Company’s plans and results of operations will be affected by the Company’s ability to manage its growth, and (iv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
YEAR END REPORT 2009
(Unaudited)
Quarter Ended Quarter Ended
Amounts in $000’s except per share data December 31, 2009 December 31, 2008
Net sales $ 13,422 $ 12,584
Cost of goods sold 8,248 7,701
Gross profit 5,174 4,883
Selling, general, and administrative expenses 4,881 4,088
Income from operations 293 795
Interest expense (32 ) (89 )
Interest income 33
Net interest expense 2 (89 )
Other (expense) income (29 ) 169
Total other (expense) income net (27 ) 80
Pre-tax income 266 875
Income tax (benefit) expense (464 ) 241
Net income $ 731 $ 634
Shares outstanding – Basic 3,208 3,415
Shares outstanding – Diluted 3,305 3,511
Earnings per share basic $ 0.23 $ 0.19
Earnings per share diluted 0.22 0.18
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
YEAR END REPORT 2009 (cont.)
(Unaudited)
Year Ended Year Ended
Amounts in $000’s except per share data December 31, 2009 December 31, 2008
Net sales $ 59,149 $ 68,719
Cost of goods sold 37,075 41,062
Gross profit 22,073 27,657
Selling, general, and administrative expenses 19,047 20,778
Income from operations 3,027 6,879
Interest expense (155 ) (396 )
Interest income 129
Net interest expense (26 ) (396 )
Other (expense) income 452 193
Total other income (expense) net 426 (203 )
Pre-tax income 3,453 6,676
Income tax expense 611 2,209
Net income $ 2,842 $ 4,467
Shares outstanding – Basic 3,289 3,486
Shares outstanding – Diluted 3,353 3,612
Earnings per share basic $ 0.86 $ 1.28
Earnings per share diluted 0.85 1.24
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
YEAR END REPORT 2009
(Unaudited)
Amounts in $000’s December 31, 2009 December 31, 2008
Assets:
Current assets:
Cash $ 6,519 $ 5,225
Accounts receivable, net 10,703 10,564
Inventories 17,400 21,769
Prepaid and other current assets 1,133 1,088
Total current assets 35,755 38,646
Property and equipment, net 2,088 2,269
Long term receivable 1,892 2,000
Other assets 2,574 2,509
Total assets $ 42,309 $ 45,424
Liabilities and stockholders’ equity:
Current liabilities
Accounts payable $ 3,546 $ 3,669
Other current liabilities 3,257 5,157
Total current liabilities 6,803 8,826
Non-current liabilities
Long term debt 9,154 11,750
Other non current liabilities 1,811 1,960
Total liabilities 17,768 22,536
Total stockholders’ equity 24,541 22,888
Total liabilities and stockholders’ equity $ 42,309 $ 45,424
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DTS (DTSI) Partners with Samsung to Deliver Superior Audio to Digital Televisions Worldwide

Feb. 26, 2010 (Business Wire) — DTS, Inc. (Nasdaq:DTSI) today announced significant news in the Digital TV space by entering into a partnership with Samsung Electronics Co., Ltd to integrate DTS audio decoding (or DTS Digital Surround) technology into virtually all Samsung digital televisions worldwide. This global partnership teams the global market leader in televisions with the leading audio technology provider for HD entertainment. Most importantly, it will further enhance the consumer entertainment experience by matching DTS best-in-class audio technology with Samsung’s industry-leading HDTV products.

“DTS is thrilled to partner with an industry leader such as Samsung as we continue our efforts to bring the finest audio experience possible to consumers,” said Brian Towne, Executive Vice President and General Manager, DTS, Inc. “Further, we remain focused on the future as we continue our expansion into new segments of home and portable entertainment.”

The integration of DTS technology in Samsung digital televisions is the latest milestone in the growth of DTS, a company that is quickly becoming a household name in the home entertainment arena. Recognition of DTS’ expansion is evident by the growing popularity of its DTS-HD Master Audio technology in the Blu-ray disc format and its emergence into the PC space with DTS Premium Suite, a new and compelling, high performance technology offering.

About DTS

DTS, Inc. (NASDAQ: DTSI) is a digital technology company dedicated to delivering the ultimate entertainment experience. DTS branded decoders are in virtually every major brand of multi-channel surround sound processors, and there are hundreds of millions of DTS-licensed consumer electronics products available worldwide. A pioneer in multi-channel audio, DTS technology is in home theatre, car audio, PC and game console products, as well as DVD-Video, Blu-ray Disc and surround music software. Founded in 1993, DTS’ corporate headquarters are located in Calabasas, California with its licensing operations headquartered in Limerick, Ireland. DTS also has offices in Northern California, Washington, Canada, China, France, Hong Kong, Japan, South Korea, Taiwan and the United Kingdom. For further information, please visit www.dts.com. DTS and the DTS Symbol are registered trademarks of DTS, Inc. DTS Neural Surround is a trademark of DTS, Inc. All other trademarks are the properties of their respective owners.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause DTS’ results to differ materially from historical results or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words “planned,” “expects,” “believes,” “strategy,” “opportunity,” “anticipates” and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or financial or operating performance; statements of belief and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to, the transition to the next generation optical drives and consumer adoption of such technology, the rapidly changing and competitive nature of the digital audio, consumer electronics and entertainment markets, the Company’s inclusion in or exclusion from governmental and industry standards, continued customer acceptance of the Company’s technology, products, services and pricing, risks related to ownership and enforcement of intellectual property, the continued release and availability of entertainment content containing DTS audio soundtracks, success of the Company’s research and development efforts, risks related to integrating acquisitions, greater than expected costs, the departure of key employees, the current financial crisis and global economic downturn, a loss of one or more of the Company’s key customers or licensees, changes in domestic and international market and political conditions, and other risks and uncertainties more fully described in DTS’ public filings with the Securities and Exchange Commission, available at www.sec.gov. DTS does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof.

Friday, February 26th, 2010 Uncategorized Comments Off on DTS (DTSI) Partners with Samsung to Deliver Superior Audio to Digital Televisions Worldwide

Orckit-Corrigent (ORCT) Strengthens its Presence in India

Feb. 25, 2010 (Business Wire) — Orckit Communications Ltd. (NASDAQ:ORCT), the leading Carrier Ethernet + Transport (CE+T) networking vendor, today announced that Mr. VK Aggarwal has joined the company as Managing Director India. Bringing more than 35 years of sales, business development, marketing and R&D expertise in the telecommunication market, Mr. Aggarwal will be leading the Indian headquarter, based in Gurgaon.

“VK Aggarwal joins Orckit-Corrigent from one of the world’s largest telecommunication vendors, Nokia Siemens Networks, where he served as Account Director for public operators and defense. Prior to this, he served as Executive Vice President, Siemens Communications for public & private operators and defense. His decision to join Orckit-Corrigent is evidence to our success and potential as a company,” said Mr. Oren Tepper, Vice President, corporate sales. “We recently announced the selection of our solutions by a Tier-1 service provider in India, and with the newly extended team we are looking forward to taking an active role in building the next generation transport for India’s networking infrastructure.”

The telecommunication market in India continues to present exceptional growth. For example, analyst firm OVUM has predicted 135 million new mobile connections in India in 2010. Cost optimized solutions are mandatory for building networks on a very large scale, and Orckit-Corrigent was able to introduce a Carrier Ethernet platform that is both scalable and cost efficient.

“Orckit-Corrigent has an excellent track record with innovative technologies. I look forward to joining the company’s talented team and fulfilling our potential in this growing market,” said Mr. VK Aggarwal, Managing Director, India at Orckit-Corrigent. “The company has already gained a significant footprint by building the next generation triple play network that is based on GPON technologies, and upcoming phases of the deployment will rely on Carrier Ethernet + Transport solutions.”

Orckit-Corrigent has also brought on additional employees to its headquarters in Gurgaon, India, to better serve the existing customers and develop new business opportunities.

About Orckit Communications Ltd.

Orckit facilitates telecommunication providers’ delivery of high capacity broadband residential, business and mobile services over wireline or wireless networks with its Orckit-Corrigent family of products. With 20 years of field experience with Tier-1 customers located around the world and sound leadership, Orckit has a firm foothold in the ever-developing world of telecommunication.

Orckit-Corrigent’s product lines include Carrier Ethernet + Transport (CE+T) switches – an MPLS based portfolio enabling advanced packet as well as legacy services over packet networks with a wide set of transport features, and Personalized Video Distribution systems – an advanced video distribution portfolio, optimized for IPTV, enabling multiple HD streams per home. Orckit-Corrigent markets its products directly and indirectly through strategic alliances as well as distribution and reseller partners worldwide.

Orckit was founded in 1990 and went public 1996. Orckit is dually listed on NasdaqGM (ORCT) and the Tel Aviv Stock Exchange and is headquartered in Tel-Aviv, Israel.

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s history of losses, dependence on a limited number of customers, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, exchange rate fluctuations, fluctuation in order size, proprietary rights of the Company and its competitors, need for additional financing, the ability to repay the convertible notes, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, the effect of current global economic conditions, as well as turmoil in the financial and credit markets, and other risk factors detailed in the Company’s United States Securities and Exchange Commission filings. Actual results may materially differ. Orckit assumes no obligation to update the information in this release.

Friday, February 26th, 2010 Uncategorized Comments Off on Orckit-Corrigent (ORCT) Strengthens its Presence in India

Deckers Outdoor Corp. (DECK) Reports Record Fourth Quarter and Fiscal 2009 Financial Results

Feb. 25, 2010 (Business Wire) — Deckers Outdoor Corporation (NASDAQGS: DECK) today announced record financial results for both the fourth quarter and fiscal year ended December 31, 2009.

Fourth Quarter Highlights

  • Net sales increased 14.7% to $348.0 million versus $303.5 million for the same period last year
  • Diluted EPS increased 28.9% to $5.22 versus non-GAAP diluted EPS of $4.05 a year ago, which excluded a pre-tax non-cash impairment of $20.9 million on intangible assets, or $0.98 per diluted share
  • Gross margin increased 450 basis points to a record 49.8% compared to 45.3% for the same period last year
  • UGG® brand sales increased 15.7% to $333.3 million compared to $288.0 million for the same period last year
  • International sales increased 96.0% to $39.3 million compared to $20.1 million for the same period last year
  • Retail sales increased 88.7% to $46.6 million versus $24.7 million for the same period last year
  • eCommerce sales increased 27.0% to $45.9 million compared to $36. 1 million for the same period last year

Fiscal 2009 Highlights

  • Net sales increased 17.9% to $813.2 million versus $689.4 million last year
  • Diluted EPS was $8.89 on a GAAP basis, or $8.94 excluding a pre-tax non-cash impairment of $1.0 million on intangible assets in the second quarter of 2009. The non-GAAP diluted EPS of $8.94 represents an increase of 23.0% versus non-GAAP diluted EPS of $7.27 a year ago, which excluded a pre-tax non-cash impairment of $35.8 million on intangible assets, or $1.67 per diluted share
  • UGG® brand sales increased 22.3% to $711.8 million compared to $582.0 million last year
  • Domestic sales increased 11.1% to $646.0 million compared to $581.5 million last year
  • International sales increased 54.9% to $167.2 million compared to $107.9 million last year
  • Retail sales increased 105.3% to $79.0 million versus $38.5 million last year
  • Cash and cash equivalents and short-term investments increased 75.6% to $342.0 million versus $194.8 million a year ago

Angel Martinez, President, Chief Executive Officer and Chairman of the Board of Directors, stated: “We are extremely pleased with our fourth quarter results and strong finish for the year. During the holiday season, we experienced robust demand for the entire UGG brand product line, with the performance of several new styles far exceeding expectations. Sell-through was particularly strong at our company-owned retail stores and on our eCommerce websites, which helped us increase earnings substantially during the fourth quarter. Our ability to successfully develop new and compelling footwear, penetrate additional categories, profitably grow our consumer direct division, and expand internationally is driving our current performance, while at the same time creating new growth opportunities for the future. 2009 was not without its challenges. The difficult retail environment negatively impacted our other brands as the majority of our accounts carried much less inventory and bought closer to season compared to prior years. That said, the Teva brand experienced better sell-through on the strength of new product introductions and was able to gain market share in a challenging year. In addition, improved inventory management led to lower closeout sales and increased margins. The Simple brand also performed well at retail, especially with major accounts like Nordstrom and Journeys. We are excited about several new product introductions for 2010 and believe a renewed emphasis on balancing style and sustainability will broaden our consumer base and enhance the brand’s market position.”

International Direct Distribution

On January 1, 2010, the Company commenced selling directly to wholesale customers for the Teva brand in the Benelux region and France. The Company also has announced that, in January 2011, following the expiration of existing distribution agreements, the Company will assume control of distributing the UGG, Teva and Simple brands in the United Kingdom and the UGG and Simple brands in the Benelux region and France. As part of the transition, the Company plans to incur incremental expenses in 2010 and will experience a shift in sales from 2010 to 2011. The net impact of this transition in 2010 on pre-tax earnings is estimated to be approximately $8.0 million, of which approximately 65% is a one-time impact. Most of the incremental sales and gross margin benefits resulting from this additional spend will not be realized until 2011. By selling directly to the retailers in the United Kingdom, Benelux and France, the Company expects to capture the additional sales and gross margin previously provided to its distributors.

Mr. Martinez commented, “The international markets represent a significant growth opportunity, and we are excited about the incremental sales and earnings potential by selling directly to our wholesale customers. Starting in 2011, we believe that the incremental sales and gross margin benefits from selling directly to our wholesale customers will more than offset the infrastructure investments in 2010 and drive higher earnings in the future. Furthermore, with control over sales and marketing, we look forward to building on the current momentum and expanding market share for each of the brands in their respective categories.”

Division Summary

UGG® Brand

UGG brand net sales for the fourth quarter increased 15.7% to a record $333.3 million compared to $288.0 million for the same period last year. The sales gain was primarily attributable to an increase in full price selling at company-owned retail stores and on the Company’s eCommerce websites coupled with higher shipments to international distributors versus the same period a year ago. For the full year, UGG brand sales increased 22.3% to a record $711.8 million versus $582.0 million in 2008.

Teva® Brand

Teva brand net sales decreased 14.8% to $10.5 million for the fourth quarter compared to $12.4 million for the same period last year. The decline in sales was primarily the result of lower closeout sales compared with the same period last year. For the full year, Teva brand sales decreased 10.2% to $77.7 million compared to $86.5 million in 2008.

Simple® Brand

Simple brand net sales for the fourth quarter increased 17.9% to $2.7 million compared to $2.3 million for the same period last year, primarily due to an increase in weighted-average selling prices. For the full year, Simple brand sales decreased 17.7% to $14.1 million versus $17.2 million in 2008.

Other Brands

Combined net sales of the Company’s other brands were $1.5 million and $9.6 million for the fourth quarter and full year, respectively.

eCommerce

Sales for the eCommerce business, which are included in the brand sales numbers above, increased 27.0% to $45.9 million for the fourth quarter compared to $36.1 million for the same period a year ago. The increase in sales resulted from higher demand for the fall line of the UGG brand, increased spend in advertising, and a favorable inventory position compared to the same period last year. For the full year, sales for the eCommerce business increased 10.0% to $75.7 million versus $68.8 million in 2008.

Retail Stores

Sales for the retail store business, which are included in the brand sales numbers above, increased 88.7% to $46.6 million for the fourth quarter compared to $24.7 million for the same period a year ago, driven by 5 new stores and a same store sales increase of 29.7%. For the full year, sales for the retail store business increased 105.3% to $79.0 million versus $38.5 million in 2008. For those stores that were open during the full year of 2008 and 2009, same store sales grew by 27.6%.

Balance Sheet

At December 31, 2009, cash and cash equivalents and short-term investments increased 75.6% to $342.0 million compared to $194.8 million at December 31, 2008. Inventories at December 31, 2009 decreased 8.0% to $85.4 million from $92.7 million at December 31, 2008.

Full-Year 2010 Outlook

  • Based upon current visibility, the Company introduced a full year revenue growth target of approximately 11% over 2009.
  • The Company expects full year diluted earnings per share to increase approximately 5% over the non-GAAP diluted EPS of $8.94 in 2009. This guidance assumes a gross profit margin of approximately 47% and SG&A as a percentage of sales of approximately 25%.
  • Fiscal 2010 guidance includes estimates of incremental expenses in 2010 associated with the transition to wholesale sales for the Teva brand in the Benelux region and France and estimates of incremental expenses and a shift in sales from 2010 to 2011 associated with the upcoming transitions in January 2011 to wholesale sales in the United Kingdom, Benelux region and France of approximately $8.0 million, or approximately $0.38 per diluted share. Fiscal 2010 guidance also assumes an effective tax rate of approximately 37% compared to 36.2% in 2009 due to the impact on international income from the aforementioned incremental expenses and shift in profit.

First Quarter Outlook

  • The Company currently expects first quarter 2010 revenue to increase approximately 7% over 2009, and expects first quarter 2010 diluted earnings per share to be down approximately 6% compared to 2009.
  • First quarter guidance includes estimates of $2.0 million for incremental investments associated with the distribution transitions, which results in reducing diluted EPS by approximately $0.10. First quarter guidance also includes improved gross margins compared to 2009 due to a higher retail mix and improved brand margins. In addition, first quarter guidance includes higher levels of fixed overhead for new retail stores, international infrastructure and other general and administrative costs.

The Company’s conference call to review fourth quarter and fiscal 2009 results will be broadcast live over the internet today, Thursday, February 25, 2010 at 4:30 pm Eastern Time. The broadcast will be hosted at www.deckers.com and www.earnings.com.

Deckers Outdoor Corporation strives to be a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. Teva®, Simple® Shoes, UGG® Australia, TSUBO®, and Ahnu® are registered trademarks of Deckers Outdoor Corporation.

This news release contains statements regarding our expectations, beliefs and views about our future financial performance which are “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. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” or by the fact that such statements relate to future, and not just historical, events or circumstances, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for the Company’s markets and the demand for its products. The forward-looking statements in this news release regarding our future financial performance are based on currently available information as of the date of this release, and because our business is subject to a number of risks and uncertainties, some of which may be beyond our control, actual operating results in the future may differ materially from the future financial performance expected at the current time. Those risks and uncertainties include, among others: the continued decline of the global economy; our ability to anticipate fashion trends; consumer demand or inventory needs; whether the UGG brand will continue to grow at the same rate it has experienced in the past; impairment charges related to our brands’ intangible assets if our product sales or operating performance decline to a point that the fair value of our brands’ intangible assets do not exceed their carrying values; shortages or price fluctuations of raw materials that could interrupt product manufacturing and increase product costs; increased costs of manufacturing in China and actions by the Chinese government; currency fluctuations; our ability to implement our growth strategy; the success of our customers, their ability to perform and obtain credit in an adverse economic environment and the risk of losing one or more of our key customers; our ability to develop and protect our brands and intellectual property; the risk that counterfeiting can harm our sales or our brand image; our dependence on independent manufacturers to supply our products; the risk that retailers could postpone or cancel existing orders; unpredictable events and circumstances and currency risks related to our international operations; a downturn in key market economies; volatile credit markets; liquidity and market risks for our cash equivalents and short-term investments; the risk of losing key personnel; a delay or interruption in the delivery of merchandise to our customers; and the sensitivity of our sales to seasonal and weather conditions. Certain of these risks and uncertainties, as well as others, are more fully described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, which the Company filed with the Securities and Exchange Commission on March 2, 2009, and under “Risk Factors” in any subsequent filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date of this release. The Company undertakes no obligation to publicly release or update the results of any revisions to forward-looking statements, which may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks and uncertainties highlighted herein should not be assumed to be the only items that could affect the future performance or valuation of the Company.

(Tables to follow)

DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
December 31, December 31,
Assets 2009 2008
Current assets:
Cash and cash equivalents $ 315,862 176,804
Restricted cash 300 300
Short-term investments 26,120 17,976
Trade accounts receivable, net 76,427 108,129
Inventories 85,356 92,740
Prepaid expenses and other current assets 7,210 3,691
Deferred tax assets 9,712 13,324
Total current assets 520,987 412,964
Restricted cash 400 700
Property and equipment, at cost, net 35,442 28,318
Intangible assets, net 23,940 24,034
Deferred tax assets 16,704 17,447
Other assets 1,570 258
Total assets $ 599,043 483,721
Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable $ 47,331 42,960
Accrued expenses 33,854 27,672
Income taxes payable 19,685 24,577
Total current liabilities 100,870 95,209
Long-term liabilities 6,269 3,847
Stockholders’ equity:
Deckers Outdoor Corporation stockholders’ equity:
Common stock 129 131
Additional paid-in capital 125,431 115,214
Retained earnings 365,304 268,515
Accumulated other comprehensive income 494 392
Total Deckers Outdoor Corporation stockholders’ equity 491,358 384,252
Noncontrolling interest 546 413
Total equity 491,904 384,665
Total liabilities and equity $ 599,043 483,721
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except for per share data)
Three-month period ended Twelve-month period ended
December 31, December 31,
2009 2008 2009 2008
Net sales $ 347,989 303,506 813,177 689,445
Cost of sales 174,548 166,016 442,087 384,127
Gross profit 173,441 137,490 371,090 305,318
Selling, general and administrative expenses 67,825 52,843 188,843 152,574
Impairment loss 20,925 1,000 35,825
Income from operations 105,616 63,722 181,247 116,919
Other (income) expense, net:
Interest income (37 ) (683 ) (1,010 ) (3,190 )
Interest expense 40 (227 ) (875 ) (142 )
Other, net (37 ) (14 ) (91 ) (251 )
Income before income taxes 105,650 64,646 183,223 120,502
Income tax expense 37,602 24,306 66,304 46,631
Net income 68,048 40,340 116,919 73,871
Less: Net (income) loss attributable to the noncontrolling interest (306 ) 120 (133 ) 77
Net income attributable to Deckers Outdoor Corporation $ 67,742 40,460 116,786 73,948
Net income attributable to Deckers Outdoor Corporation common stockholders per share:
Basic $ 5.27 3.10 8.98 5.67
Diluted $ 5.22 3.07 8.89 5.60
Weighted-average common shares:
Basic 12,851 13,072 13,008 13,042
Diluted 12,987 13,198 13,131 13,195
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
(Unaudited)
(Amounts in thousands, except for per share data)
Three-month period Twelve-month period
ended December 31, ended December 31,
2009 2008 2009 2008
Income before income taxes $ 105,650 64,646 183,223 120,502
Add back impairment charges —- 20,925 1,000 35,825
Income before income taxes, excluding impairment charges 105,650 85,571 184,223 156,327
Income tax expense (1) 37,602 32,214 66,666 60,494
Net income excluding impairment charges 68,048 53,357 117,557 95,833
Less: Net (income) loss attributable to the noncontrolling interest (306 ) 120 (133 ) 77
Net income excluding impairment charges attributable to Deckers Outdoor Corporation $ 67,742 53,477 117,424 95,910
Net income excluding impairment charges attributable to Deckers Outdoor Corporation common stockholders per share:
Basic $ 5.27 4.09 9.03 7.35
Diluted $ 5.22 4.05 8.94 7.27
Weighted-average shares:
Basic 12,851 13,072 13,008 13,042
Diluted 12,987 13,198 13,131 13,195
Friday, February 26th, 2010 Uncategorized Comments Off on Deckers Outdoor Corp. (DECK) Reports Record Fourth Quarter and Fiscal 2009 Financial Results

Republic Airways (RJET) Announces Order for up to 80 Bombardier CSeries Aircraft

Feb. 25, 2010 (Business Wire) — Republic Airways Holdings Inc. (NASDAQ: RJET) announced today it has signed a purchase agreement for 40 CS300 jets, part of the next-generation CSeries aircraft being developed by Bombardier. Republic also has options for up to an additional 40 aircraft. The aircraft, which will be configured in a single-cabin, with two-by-three seating for 138 passengers, including 25 STRETCH seats, is scheduled for delivery beginning in the second quarter of 2015.

The aircraft are powered by Pratt & Whitney PW1000G engines. Republic has signed an exclusive 15-year PureSolution maintenance contract with Pratt & Whitney for the support of the engines.

“Republic is pleased to be the North American launch customer for the CSeries aircraft,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “This aircraft will bring next-generation advantages to all phases of its mission, including passenger comfort, dependability, efficiency and economics.”

“The CS300 will help us dramatically reduce our fuel consumption and impact on the environment. Our customers will also appreciate the generous amount of personal space with wider aisles, increased shoulder room, improved storage bins and extra-large windows,” Bedford added.

“The CSeries aircraft program is a significant part of Bombardier’s future, and we’re delighted that Republic Airways will be part of it,” said Gary R. Scott, President, Bombardier Commercial Aircraft. “This major CSeries order from our first North American customer reflects the confidence Republic Airways has in Bombardier’s ability to deliver a game-changing aircraft and to service the airline’s requirements.”

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Frontier Airlines, Lynx Aviation, Midwest Airlines, Republic Airlines and Shuttle America, collectively “the airlines.” The airlines offer scheduled passenger service on approximately 1,600 flights daily to 118 cities in 44 states, Canada, Costa Rica, and Mexico under branded operations at Frontier, Midwest, and through fixed-fee airline services agreements with five major U.S. airlines. The fixed-fee flights are operated under an airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, and US Airways Express. The airlines currently employ approximately 11,000 aviation professionals and operate 283 aircraft.

Additional Information

In addition to historical information, this release contains forward-looking statements. Republic Airways Holdings Inc. (the “Company”) may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events. Words such as “expects,” “intends,” “believes,” “anticipates,” “may,” “will,” “should,” “plan,” “estimate,” “predict,” “potential,” “continue,” or “likely” and similar expressions as well as the negative of such expressions are used to identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and could differ materially, from those anticipated, estimated, projected or expected in these forward-looking statements for a number of many reasons, including, among others, the risk factors disclosed in the Company’s most recent filing with the Securities and Exchange Commission.

Friday, February 26th, 2010 Uncategorized Comments Off on Republic Airways (RJET) Announces Order for up to 80 Bombardier CSeries Aircraft

CDC Software (CDCS) Provides Guidance of Full Year 2010 Revenue and Non-GAAP EPS

Feb. 25, 2010 (Business Wire) — CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, today announced that, based on preliminary financial projections and estimates, the company expects 2010 non-GAAP earnings per share(a) to be in the range of $1.50 to 1.55, an increase of 15-18 percent from $1.31 reported for 2009; and revenue for 2010 to be in the range of $220 million to $228 million an increase of 8-12 percent from $203.9 million reported in 2009.

“We are pleased that, according to our preliminary estimates, we forecast double digit improvement in our non-GAAP earnings per share,” said Peter Yip, CEO of CDC Software. “We believe we have strong momentum going into 2010 after reporting an excellent fourth quarter. For the fourth quarter of 2009, Adjusted EBITDA(a) nearly doubled to $14.8 million, from $7.8 million in the fourth quarter of 2008 and non-GAAP earnings per share nearly quadrupled to $0.40 compared to $0.11 in the fourth quarter of 2008. We also reported record operating cash flow of $53 million for the full year 2009.

“Even if the slow economic recovery continues throughout 2010, we are cautiously optimistic that we are well positioned, with improved operating metrics and net cash on hand, for organic growth through cross-sell opportunities and expansion in emerging markets such as China and India.”

About CDC Software

CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a provider of enterprise software applications and a full range of services designed to help organizations deliver a superior customer experience, while increasing efficiencies and profitability. Leveraging a service-oriented architecture (SOA), CDC Software offers multiple delivery options for their solutions including on-premise, hosted, cloud-based Software as a Service (SaaS) or blended-hybrid deployment offerings. CDC Software’s solutions include enterprise requirements planning (ERP), manufacturing operations management, enterprise manufacturing intelligence, supply chain management (demand management, order management and warehouse and transportation management), e-Commerce, human capital management, customer relationship management (CRM), complaint management and aged care solutions.

CDC Software’s recent acquisitions are part of its “acquire, integrate, innovate and grow” strategy. Fueling the success of this strategy is the company’s global scalable business and technology infrastructure featuring multiple complementary applications and services, domain expertise in vertical markets, cost effective product engineering centers in India and China, a highly collaborative and fast product development process utilizing Agile methodologies, and a worldwide network of direct sales and channel operations. This strategy has helped CDC Software deliver innovative and industry-specific solutions to more than 6,000 customers worldwide within the manufacturing, distribution, transportation, retail, government, real estate, financial services, health care, and not-for-profit industries. For more information, please visit www.cdcsoftware.com.

About CDC Corporation

The CDC family of companies includes CDC Software (NASDAQ: CDCS) focused on enterprise software applications and services, CDC Global Services focused on IT consulting services, and outsourced R&D and application development, CDC Games focused on online games, and China.com, Inc. (HKGEM:8006) focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.

(a) Adjusted Financial Measures

This press release includes Adjusted EBITDA and non-GAAP earnings per share, which are not prepared in accordance with GAAP (“Non-GAAP Financial Measures”). Non-GAAP Financial Measures are not alternatives for measures such as net income, earnings per share and cash and cash equivalents prepared under generally accepted accounting principles in the United States (“GAAP”). These Non-GAAP Financial measures may also be different from non-GAAP measures used by other companies. Non-GAAP Financial Measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.

Investors should be aware that these Non-GAAP Financial Measures have inherent limitations, including their variance from certain of the financial measurement principals underlying GAAP, should not be considered as a replacement for GAAP performance measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These supplemental Non-GAAP Financial Measures should not be construed as an inference that the Company’s future results will be unaffected by similar adjustments to net earnings determined in accordance with GAAP.

* Special Note Regarding CDC Software Financial Projections and Guidance

The financial estimates and guidance contained herein apply only to CDC Software Corporation, a subsidiary of CDC Corporation. These estimates and guidance amounts do not apply to, and are not indicative of, the expected consolidated financial performance of CDC Corporation, or the expected financial performance of CDC Games Corporation, China.com, Inc. or any of their respective subsidiaries. Investors are cautioned not to place reliance on the financial estimates and guidance set forth herein for purposes of any investment decision with respect to the shares of CDC Corporation, and should read the foregoing in conjunction with the reports and other materials filed with the United States Securities and Exchange Commission by CDC Corporation and CDC Software Corporation, from time to time.

Cautionary Note Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our expectations for 2010 GAAP net income and non-GAAP earnings per share, our beliefs regarding momentum in our corporate performance, our beliefs regarding our sales pipeline and cross-selling opportunities, and other statements that are not historical fact, the achievement of which involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. These statements are based on management’s current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including the following: (a) the ability to realize strategic objectives by taking advantage of market opportunities in targeted geographic markets; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of current, new and potential customers, suppliers and strategic partners; (c) the effects of restructurings and rationalization of operations; (d) the ability to address technological changes and developments including the development and enhancement of products; (e) the entry of new competitors and their technological advances; (f) the need to develop, integrate and deploy enterprise software applications to meet customer’s requirements; (g) the possibility of development or deployment difficulties or delays; (h) the dependence on customer satisfaction with the company’s software products and services; (i) continued commitment to the deployment of the enterprise software solutions; (j) risks involved in developing software solutions and integrating them with third-party software and services; (k) the continued ability of the company’s enterprise software solutions to address client-specific requirements; (l) demand for and market acceptance of new and existing enterprise software and services and the positioning of the company’s solutions; (m) the ability of staff to operate the enterprise software and extract and utilize information from the company’s enterprise software solutions; (n) the continued cooperation of our strategic and business partners; (o) risks relating to economic conditions and other matters beyond our control; and (p) the risk that the preliminary financial results provided herein could differ from our actual results. Further information on risks or other factors that could cause results to differ is detailed in our filings or submissions with the United States Securities and Exchange Commission, and those of our ultimate parent company, CDC Corporation, located at www.sec.gov. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise. Historical results are not indicative of future performance.

Thursday, February 25th, 2010 Uncategorized Comments Off on CDC Software (CDCS) Provides Guidance of Full Year 2010 Revenue and Non-GAAP EPS

TowerJazz (TSEM) Announces Fourth Quarter Financial Results; Surpassing $100 million Revenue

Feb. 24, 2010 (Business Wire) — TowerJazz, the global specialty foundry leader, today announced financial results for the fourth quarter and fiscal year ended December 31, 2009.

Highlights

  • Record revenue of $100.6 million in Q4 2009, growing 30 percent over last year and 26 percent sequentially
  • Guiding for continued sequential growth into Q1 2010, expecting $110-115 million in revenues, 94 percent growth as compared to Q1 2009
  • Gross profit of $38.7 million in Q4 2009 with margins of 39 percent on a non-GAAP basis, as compared to $15.6 million and 20 percent in Q4 2008.
  • Operating profit of $23.3 million in Q4 2009 with margins of 23 percent on a non-GAAP basis, as compared to $1.7 million and 2 percent in Q4 2008.
  • Full year revenues at $298.8 million, up 19 percent over last year, significantly higher than the industry.
  • Strong year-end cash-balance of $81.8 million, as compared to $34.9 million as of December 2008

2009 fourth quarter and full year results summary

Fourth quarter 2009 revenue was $100.6 million, representing a 26 percent increase over third quarter 2009 revenue of $79.6 million and 30 percent over fourth quarter 2008 revenue of $77.5 million. Full year 2009 revenues were $298.8 million, 19 percent higher than $251.7 million recorded in 2008.

On a non-GAAP basis, as described and reconciled below, the gross profit for the fourth quarter 2009 was $38.7 million, a sequential growth 50 percent, and representing 39 percent margins. Comparing to the fourth quarter of 2008, non-GAAP gross margin increased from 20 to 39 percent. Non-GAAP operating profit in the fourth quarter 2009 was $23.3 million, substantially higher than $1.7 million and $13.0 million achieved in the fourth quarter of 2008 and third quarter 2009, respectively.

Calculated in accordance with GAAP, TowerJazz achieved in the fourth quarter 2009 gross profit for the first time since 2000 of $6.6 million, as compared to gross loss of $5.3 million and gross loss of $10.8 million in the third quarter 2009 and fourth quarter 2008, respectively. Net loss for the fourth quarter 2009 was $31.4 million as compared to $30.2 million for the previous quarter, or $0.16 and $0.18 per share, respectively, including for the fourth quarter of 2009 GAAP financing expenses of $18.7 million, resulting mainly from non-cash GAAP financing expenses due to the significant increase in market and fair value of the Company’s tradable securities.

EBITDA for the fourth quarter of 2009 was $23 million, an all time record, and up substantially from $2 million reported in the fourth quarter of 2008 and $15 million in third quarter 2009.

Company’s cash balance, as of December 31, 2009 was $81.8 million, as compared to $34.9 million as of December 2008 and $51.7 million as of September 2009.

“2009 demonstrated an inflection year for the Company, in realizing our strategy of becoming the worldwide specialty foundry leader. All of our business units achieved substantial tactical and strategic customer wins. Breaking the significant milestone of $100 million in quarterly revenue with record EBITDA and record annual design wins while expecting continued 2010 growth, despite foundry seasonality, is evidence of our continued strong positive trajectory,” commented Russell Ellwanger, Chief Executive Officer. “We have on hand many substantive opportunities targeting beyond a $500 million annual revenue run-rate.”

Amir Elstein, Chairman of the Board, commented, “The activities in 2009 and the company’s performance, culminating in 19 percent year-over-year revenue increase against a double-digit downturn for the industry, is confirmation of the vast capabilities of the TowerJazz management and the entire team, and is indicative of a customer-centric company with well-defined strategy and goals. I remain confident and boldly optimistic with regard to the coming quarters. In addition, these accomplishments are a great tribute to our CEO who was recognized and appreciated by fellow industry experts, as the Israeli Hi-Tech CEO of the year, for the TowerJazz business breakthrough.”

Financial Guidance

TowerJazz forecasts revenue in the first quarter of 2010 to range between $110 and $115 million, representing a sequential revenue growth of 9-14 percent and 89-98 percent year-over-year growth in revenues.

Conference Call and Web Cast Announcement

TowerJazz will host a conference call to discuss fourth quarter 2009 results today, February 24, 2010, at 10:00 a.m. Eastern Time (EST) / 5:00 p.m. Israel time.

To participate, please call: 1-888-407-2553 (U.S. toll-free number) or +972-3-918-0609 (international) and mention ID code: TOWER-JAZZ

Callers in Israel are invited to call locally by dialing 03-918-0609. The conference call will also be Web cast live at www.earnings.com and at www.towerjazz.com and will be available thereafter on both Web sites for replay for a period 90 days, starting a few hours following the call.

As previously announced, beginning with the fourth quarter of 2007, the Company has been presenting its financial statements in accordance with U.S. GAAP.

As applied in this release, the term Earnings Before Interest Tax Depreciation and Amortization (EBITDA) consists of loss, according to U.S. GAAP, excluding interest and financing expenses (net), tax, depreciation and amortization and stock based compensation expenses. EBITDA is not a required GAAP financial measure and may not be comparable to a similarly titled measure employed by other companies. EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

This release, including the financial tables below, presents other financial information that may be considered “non-GAAP financial measures” under Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission as they apply to our company. These non-GAAP financial measures exclude (1) depreciation and amortization and (2) compensation expenses in respect of options granted to directors, officers and employees. Non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables also present the GAAP financial measures, which are most comparable to the non-GAAP financial measures as well as reconciliation between the non-GAAP financial measures and the most comparable GAAP financial measures. The non-GAAP financial information presented herein should not be considered in isolation from or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, per share data or other income or cash flow statement data prepared in accordance with GAAP and is not necessarily consistent to the non-GAAP data presented in previous filings.

Following the merger with Jazz, the amounts presented in this release, including the financial tables below, include Jazz’s results commencing September 19, 2008. Amounts presented for periods preceding the merger with Jazz reflect Tower’s results only. The balance sheet as of December 31, 2009, September 30, 2009 and December 31, 2008 includes Jazz’s balances as of such dates.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ: TSEM) (TASE: TSEM), the global specialty foundry leader and its fully owned U.S. subsidiary Jazz Semiconductor, operate collectively under the brand name TowerJazz, manufacturing integrated circuits with geometries ranging from 1.0 to 0.13-micron. TowerJazz provides industry leading design enablement tools to allow complex designs to be achieved quickly and more accurately and offers a broad range of customizable process technologies including SiGe, BiCMOS, Mixed-Signal and RFCMOS, CMOS Image Sensor, Power Management (BCD), and Non-Volatile Memory (NVM) as well as MEMS capabilities. To provide world-class customer service, TowerJazz maintains two manufacturing facilities in Israel and one in the U.S. with additional capacity available in China through manufacturing partnerships. For more information, please visit www.towerjazz.com.

Forward Looking Statements

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements and you should not place any undue reliance on such forward-looking statements. Potential risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) maintaining existing customers and attracting additional customers, (ii) cancellation of orders, (iii) failure to receive orders currently expected (iv) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (v) the large amount of debt and liabilities and having sufficient funds to satisfy our debt obligations and other liabilities on a timely basis, (vi) operating our facilities at high utilization rates which is critical in order to defray the high level of fixed costs associated with operating a foundry and reduce our losses, (vii) our ability to satisfy the covenants stipulated in our agreements with our lenders, banks and bond holders, (viii) our ability to capitalize on potential increases in demand for foundry services, (ix) having customer demand that will exceed our manufacturing capacity, (x) meeting the conditions to receive Israeli government grants and tax benefits approved for Fab2 and obtaining the approval of the Israeli Investment Center for an expansion program, (xi) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles, (xii) the purchase of equipment to increase capacity, the completion of the equipment installation, technology transfer and raising the funds therefor, (xiii) our dependence on a relatively small number of products for a significant portion of our revenue, (xiv) a substantial portion of our revenues being accounted for by a small number of customers, (xv) the concentration of our business in the semiconductor industry, (xvi) product returns, (xvii) our ability to maintain and develop our technology processes and services to keep pace with new technology, evolving standards, changing customer and end-user requirements, new product introductions and short product life cycles, (xviii) competing effectively, (xix) achieving acceptable device yields, product performance and delivery times, (xx) possible production or yield problems in our wafer fabrication facilities, (xxi) our ability to manufacture products on a timely basis, (xxii) our dependence on intellectual property rights of others, our ability to operate our business without infringing others’ intellectual property rights and our ability to enforce our intellectual property against infringement, (xxiii) pending resolution of patent infringement claim against the Company, (xxiv) retention of key employees and retention and recruitment of skilled qualified personnel, (xxv) exposure to inflation, currency exchange and interest rate fluctuations and risks associated with doing business internationally and in Israel, and (xxvi) business interruption due to fire, the security situation in Israel and other events beyond our control.

A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect our business is included under the heading “Risk Factors” in Tower’s most recent filings on Forms 20-F, F-3, F-4, S-8 and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority and Jazz’s most recent filings on Forms 10-K and 10-Q, as were filed with the SEC. Future results may differ materially from those previously reported. The Company does not intend to update, and expressly disclaims any obligation to update, the information contained in this release.

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, September 30, December 31,
2009 2009 2008
unaudited
A S S E T S
CURRENT ASSETS
Cash and cash equivalents $ 81,795 $ 51,708 $ 34,905
Trade accounts receivable 40,604 42,121 45,860
Other receivables 2,520 3,418 2,320
Inventories 32,250 28,746 40,899
Other current assets 11,184 7,519 7,657
Total current assets 168,353 133,512 131,641
LONG-TERM INVESTMENTS 29,361 29,579 29,499
PROPERTY AND EQUIPMENT, NET 371,400 388,234 449,697
INTANGIBLE ASSETS, NET 67,601 70,983 81,034
GOODWILL 7,000 7,000 7,000
OTHER ASSETS, NET 8,002 8,282 8,802
TOTAL ASSETS $ 651,717 $ 637,590 $ 707,673
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of convertible debenture $ $ $ 8,330
Short term bank loan 7,000 4,440 7,000
Trade accounts payable 42,012 39,180 49,462
Deferred revenue 24,696 4,100 6,634
Other current liabilities 23,652 32,228 35,202
Total current liabilities 97,360 79,948 106,628
LONG-TERM DEBT 428,813 416,555 431,501
LONG-TERM CUSTOMERS’ ADVANCES 8,262 12,412 11,138
OTHER LONG-TERM LIABILITIES 60,388 55,020 45,959
Total liabilities 594,823 563,935 595,226
SHAREHOLDERS’ EQUITY 56,894 73,655 112,447
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 651,717 $ 637,590 $ 707,673
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share data)
Three months ended Three months ended Three months ended
December 31, December 31, December 31, December 31, December 31, December 31,
2009 2008 2009 2008 2009 2008
non-GAAP Adjustments (see a, b, c below) GAAP
REVENUES $ 100,616 $ 77,453 $ $ $ 100,616 $ 77,453
COST OF REVENUES 61,868 61,894 32,194 (a) 26,346 (a) 94,062 88,240
GROSS PROFIT (LOSS) 38,748 15,559 (32,194 ) (26,346 ) 6,554 (10,787 )
OPERATING COSTS AND EXPENSES
Research and development 6,694 4,625 317 (b) 654 (b) 7,011 5,279
Marketing, general and administrative 8,711 9,186 1,319 (c) 1,352 (c) 10,030 10,538
Write-off of in-process research and development (500 ) (500 )
15,405 13,811 1,636 1,506 17,041 15,317
OPERATING PROFIT (LOSS) $ 23,343 $ 1,748 $ (33,830 ) $ (27,852 ) $ (10,487 ) $ (26,104 )
BASIC OPERATING PROFIT (LOSS) PER ORDINARY SHARE
Operating profit (loss) per share $ 0.12 $ 0.01 $ (0.17 ) $ (0.17 ) $ (0.05 ) $ (0.16 )
Weighted average number of ordinary shares outstanding – in thousands 194,236 159,747 194,236 159,747
NON-GAAP GROSS MARGINS 39 % 20 %
NON-GAAP OPERATING MARGINS 23 % 2 %
(a) Includes depreciation and amortization expenses in the amounts of $32,046 and $26,150 and stock based compensation expenses in the amounts of $148 and $196 for the three months ended December 31, 2009 and December 31, 2008, respectively.
(b) Includes depreciation and amortization expenses in the amounts of $148 and $532 and stock based compensation expenses in the amounts of $169 and $122 for the three months ended December 31, 2009 and December 31, 2008, respectively.
(c) Includes depreciation and amortization expenses in the amounts of $340 and $325 and stock based compensation expenses in the amounts of $979 and $1,027 for the three months ended December 31, 2009 and December 31, 2008, respectively.
(d) 2008 data are similar to those previously presented, prior to any adjustments following the inventory change method occurred in 2009.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share data)
Three months ended Three months ended Three months ended
December 31, September 30, December 31, September 30, December 31, September 30,
2009 2009 2009 2009 2009 2009
non-GAAP Adjustments (see a, b, c below) GAAP
REVENUES $ 100,616 $ 79,570 $ $ $ 100,616 $ 79,570
COST OF REVENUES 61,868 53,710 32,194 (a) 31,205 (a) 94,062 84,915
GROSS PROFIT (LOSS) 38,748 25,860 (32,194 ) (31,205 ) 6,554 (5,345 )
OPERATING COSTS AND EXPENSES
Research and development 6,694 5,769 317 (b) 288 (b) 7,011 6,057
Marketing, general and administrative 8,711 7,060 1,319 (c) 965 (c) 10,030 8,025
15,405 12,829 1,636 1,253 17,041 14,082
OPERATING PROFIT (LOSS) $ 23,343 $ 13,031 $ (33,830 ) $ (32,458 ) $ (10,487 ) $ (19,427 )
BASIC OPERATING PROFIT (LOSS) PER ORDINARY SHARE
Operating profit (loss) per share $ 0.12 $ 0.08 $ (0.17 ) $ (0.20 ) $ (0.05 ) $ (0.12 )
Weighted average number of ordinary shares outstanding – in thousands 194,236 167,200 194,236 167,200
NON-GAAP GROSS MARGINS 39 % 32 %
NON-GAAP OPERATING MARGINS 23 % 16 %
(a) Includes depreciation and amortization expenses in the amounts of $32,046 and $31,067 and stock based compensation expenses in the amounts of $148 and $138 for the three months ended December 31, 2009 and September 30, 2009, respectively.
(b) Includes depreciation and amortization expenses in the amounts of $148 and $154 and stock based compensation expenses in the amounts of $169 and $134 for the three months ended December 31, 2009 and September 30, 2009, respectively.
(c) Includes depreciation and amortization expenses in the amounts of $340 and $357 and stock based compensation expenses in the amounts of $979 and $608 for the three months ended December 31, 2009 and September 30, 2009, respectively.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three months ended Year ended
December 31, December 31,
2009 2009
GAAP GAAP
(UNAUDITED)
REVENUES $ 100,616 $ 298,812
COST OF REVENUES 94,062 325,310
GROSS PROFIT (LOSS) 6,554 (26,498 )
OPERATING COSTS AND EXPENSES
Research and development 7,011 23,375
Marketing, general and administrative 10,030 31,943
17,041 55,318
OPERATING LOSS (10,487 ) (81,816 )
FINANCING EXPENSE, NET (18,678 ) (45,710 )
OTHER INCOME (EXPENSE), NET (118 ) 2,045
LOSS BEFORE INCOME TAX (29,283 ) (125,481 )
INCOME TAX BENEFIT (PROVISION) (2,128 ) 5,022
NET LOSS FOR THE PERIOD $ (31,411 ) $ (120,459 )
BASIC LOSS PER ORDINARY SHARE
loss per share $ (0.16 ) $ (0.71 )
Weighted average number of ordinary shares outstanding – in thousands 194,236 170,460
Thursday, February 25th, 2010 Uncategorized Comments Off on TowerJazz (TSEM) Announces Fourth Quarter Financial Results; Surpassing $100 million Revenue

FARO Technologies (FARO) Reports Fourth Quarter 2009 Sales of $46 million

Feb. 24, 2010 (PR Newswire) — FARO Reports Fourth Quarter 2009 Sales of $46 million;

LAKE MARY, Fla. — FARO Technologies, Inc. (Nasdaq: FARO) today announced results for the fourth quarter and year ended December 31, 2009.  Sales in the fourth quarter of 2009 increased 28.9%, to $46.0 million, from $35.7 million in the third quarter of 2009.  The Company returned to operating profitability in the fourth quarter of 2009, with operating income of $2.5 million compared to an operating loss of $2.3 million in the third quarter of 2009.

Net loss for the fourth quarter of 2009 was $0.6 million, or $(0.04) per diluted share, a decrease of $2.8 million, compared to net income of $2.2 million, or $0.13 per diluted share, in the fourth quarter of 2008.  The net loss for the fourth quarter of 2009 included a tax settlement with the Internal Revenue Service of $2.6 million, or $.16 per share.  Net loss for fiscal 2009 was $10.6 million, or $(0.66) per diluted share, compared to net income of $14.0 million, or $0.83 per diluted share during 2008.

Sales for the fourth quarter of 2009 decreased $10.3 million, or 18.3%, to $46.0 million from $56.3 million in the fourth quarter of 2008.  New order bookings for the fourth quarter of 2009 were $53.1 million, a decrease of $3.3 million, or 5.9%, compared to $56.4 million in the fourth quarter of 2008.  Fiscal 2009 sales were $147.7 million, a decrease of 29.4% compared to fiscal 2008 sales of $209.2 million.  New order bookings for fiscal 2009 were $151.7 million, a decrease of 28.2% from $211.3 million in fiscal 2008.

“Sales increased 29% quarter over quarter and, as expected, the target markets for our products continued to show improvement.  The cost reductions we made during the first three quarters of 2009 created a leaner, more efficient operation without sacrificing R&D programs.  Ultimately, those moves position us well to execute in 2010,” stated Jay Freeland, FARO’s President and CEO.

Gross margin for the fourth quarter of 2009 was 55.4%, compared to 57.3% in the fourth quarter of 2008. Gross margin decreased primarily due to a change in the sales mix between higher margin product sales and lower margin service revenue. Gross margin for fiscal 2009 was 54.6% compared to 59.8% in fiscal 2008.

Selling expenses as a percentage of sales decreased to 26.4% in the fourth quarter of 2009 from 28.6% in the fourth quarter of 2008, primarily as a result of lower marketing expenses.  Selling expenses in the fourth quarter of 2009 decreased by $3.9 million from the fourth quarter of 2008 to $12.2 million.  Selling expenses as a percentage of sales for fiscal 2009 were 32.9%, compared to 30.1% in fiscal 2008.

General and administrative expenses increased to 13.8% of sales in the fourth quarter of 2009 from 12.2% in the fourth quarter of 2008.  General and administrative expenses in the fourth quarter of 2009 decreased by $0.5 million to $6.4 million from $6.9 million in the fourth quarter of 2008.  General and administrative expenses were 16.9% of sales for fiscal 2009 compared to 12.5% in fiscal 2008.

R&D expenses were $3.0 million in the fourth quarter of 2009, a decrease of $0.5 million from $3.5 million in the fourth quarter of 2008.  R&D expenses were 6.6% of sales in the fourth quarter of 2009 compared to 6.2% of sales in the fourth quarter of 2008. R&D expenses for both fiscal 2009 and 2008 were $12.6 million.

Operating income for the fourth quarter of 2009 was $2.5 million, a decrease of $2.1 million from $4.6 million in the fourth quarter of 2008.  Operating margin for the fourth quarter of 2009 was 5.4% compared to 8.1% in the fourth quarter of 2008.  The operating loss for fiscal 2009 was $11.0 million compared to an operating profit of $18.9 million in fiscal 2008.

Income tax expense increased by $1.9 million to $3.3 million for the fourth quarter of 2009 from $1.4 million in the fourth quarter of 2008 due to a $2.6 million tax settlement with the Internal Revenue Service.  The tax settlement will not impact the Company’s tax rate going forward.

“We feel good about the Company’s prospects in 2010 and believe we are a stronger organization now than we were at the beginning of last year.  We continue to have a strong balance sheet with over $100 million in cash and zero debt and have created a streamlined operating structure from which to execute.  Assuming economic conditions continue to improve, we believe our prospects for 2010 are good,” Freeland concluded.

This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are subject to risks and uncertainties, such as statements about the future state of the economy, FARO’s focus, plans and strategies, , and its future operating results and financial condition. Statements that are not historical facts or that describe the Company’s plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as “intend,” “believe,” “will,” “expect” and similar expressions or discussions of our strategy or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.

Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to:

  • development by others of new or improved products, processes or technologies that make the Company’s products obsolete or less competitive;
  • the cyclical nature of the industries of the Company’s customers and material adverse changes in customers’ access to liquidity and capital;
  • further declines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other general economic, business, and financing conditions;
  • fluctuations in the Company’s annual and quarterly operating results and the inability to achieve its financial operating targets;
  • risks associated with expanding international operations, such as fluctuations in currency exchange rates, difficulties in staffing and managing foreign operations, political and economic instability, compliance with import and export regulations, and the burdens and potential exposure of complying with a wide variety of U.S. and foreign laws and labor practices;
  • other risks detailed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 and in Part II, Item 1A. Risk Factors in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.

Forward-looking statements in this release represent the Company’s judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

About FARO

With approximately 20,000 installations and 10,000 customers globally, FARO Technologies, Inc. designs, develops, and markets portable, computerized measurement and imaging devices and software used to create digital models — or to perform evaluations against an existing model — for anything requiring highly detailed 3-D measurements, including part and assembly inspection, factory planning and asset documentation, as well as specialized applications ranging from surveying, recreating accident sites and crime scenes to digitally preserving historical sites.

FARO’s technology increases productivity by dramatically reducing the amount of on-site measuring time, and the various industry-specific software packages enable users to process and present their results quickly and more effectively.

Principal products include the world’s best-selling portable measurement arm — the FaroArm; the world’s best-selling laser tracker — the FARO Laser Tracker X and Xi; the FARO Laser ScanArm; FARO Photon Laser Scanners; the FARO Gage, Gage-PLUS and PowerGAGE; and the CAM2 Q family of advanced CAD-based measurement and reporting software. FARO Technologies is ISO-9001 certified and ISO-17025 laboratory registered.

                      FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS

                                Three Months Ended        Twelve Months Ended
                                ------------------        -------------------
     (in thousands, except
     share and per share       Dec 31,     Dec 31,       Dec 31,      Dec 31,
     data)                      2009        2008          2009         2008
    -------------------        --------    --------      --------     -------
    SALES
        Product                $38,422     $48,190       $117,714    $179,209
        Service                  7,604       8,125         29,989      30,040
                               -------     -------       --------    --------
        Total Sales             46,026      56,315        147,703     209,249
                               -------     -------       --------    --------
    COST OF SALES
        Product                 15,646      16,931         46,293      60,736
        Service                  4,897       7,112         20,702      23,287
                                ------      ------         ------      ------
        Total Cost of Sales
         (exclusive of
         depreciation and
         amortization, shown
         separately below)      20,543      24,043         66,995      84,023
                                ------      ------         ------      ------

    GROSS PROFIT                25,483      32,272         80,708     125,226

    OPERATING EXPENSES:
        Selling                 12,164      16,130         48,598      63,015
        General and
         administrative          6,365       6,870         24,956      26,144
        Depreciation and
         amortization            1,440       1,212          5,530       4,505
        Research and
         development             3,047       3,502         12,613      12,625
                                ------      ------         ------      ------
        Total operating
         expenses               23,016      27,714         91,697     106,289
                                ------      ------         ------     -------
    (LOSS) INCOME FROM
     OPERATIONS                  2,467       4,558       (10,989)      18,937
                                ------      ------       --------      ------
    OTHER (INCOME) EXPENSE
        Interest income           (28)       (546)          (253)     (2,170)
        Other (income)
         expense, net            (233)       1,460          (592)       2,295
        Interest expense             5           2             14         452
                                 -----       -----          -----       -----
    (LOSS) INCOME BEFORE
     INCOME TAX EXPENSE          2,723       3,642       (10,158)      18,360

    INCOME TAX EXPENSE           3,343       1,443            424       4,408
                                 -----       -----            ---       -----
    NET (LOSS) INCOME           $(620)      $2,199      $(10,582)     $13,952
                                ------      ------       --------     -------
    NET (LOSS) INCOME PER
     SHARE - BASIC             $(0.04)       $0.13        $(0.66)       $0.84
                               -------       -----         ------       -----

    NET (LOSS) INCOME PER
     SHARE - DILUTED           $(0.04)       $0.13        $(0.66)       $0.83
                               -------       -----         ------       -----

    Weighted  average
     shares - Basic         16,101,412  16,654,910     16,125,449  16,632,608
                            ----------  ----------     ----------  ----------

    Weighted average
     shares - Diluted       16,101,412  16,702,090     16,125,449  16,734,403
                            ----------  ----------     ----------  ----------
                    FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS

                                                December 31,    December 31,
    (in thousands, except share data)              2009            2008
    ---------------------------------           -----------     -----------
    ASSETS
    Current Assets:
      Cash and cash equivalents                      $35,078         $23,494
      Short-term investments                          64,986          81,965
      Accounts receivable, net                        42,944          49,713
      Inventories                                     26,582          33,444
      Deferred income taxes, net                       4,473           5,581
      Prepaid expenses and other current assets        6,016           7,879
                                                     -------         -------
        Total current assets                         180,079         202,076
                                                     -------         -------
    Property and Equipment:
      Machinery and equipment                         19,867          16,748
      Furniture and fixtures                           5,225           4,099
      Leasehold improvements                           9,434           9,893
                                                      ------          ------
          Property and equipment at cost              34,526          30,740
      Less: accumulated depreciation and
       amortization                                 (20,788)        (16,604)
                                                     -------         -------
          Property and equipment, net                 13,738          14,136
                                                     -------         -------
    Goodwill                                          19,934          18,951
    Intangible assets, net                             7,985           8,580
    Service inventory                                 12,079          12,843
    Deferred income taxes, net                         1,895           2,728
                                                    --------        --------
    Total Assets                                    $235,710        $259,314
                                                    --------        --------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities:
      Accounts payable                                $8,985         $10,813
      Accrued liabilities                              8,173          14,032
      Income taxes payable                               229           1,988
      Current portion of unearned service
       revenues                                       12,226          11,501
      Customer deposits                                2,173             425
      Current portion of obligations under
       capital leases                                     80              87
                                                      ------          ------
          Total current liabilities                   31,866          38,846
    Unearned service revenues - less current
     portion                                           5,910           6,772
    Deferred tax liability, net                        1,143           1,107
    Obligations under capital leases - less
     current portion                                     193             281
                                                      ------          ------
    Total Liabilities                                 39,112          47,006
                                                      ------          ------
    Commitments and contingencies

    Shareholders' Equity:
      Common stock - par value $.001, 50,000,000
       shares authorized; 16,795,289 and 16,741,488
       issued; 16,115,054 and 16,658,552
       outstanding, respectively                          17              17
      Additional paid-in-capital                     152,380         149,298
      Retained earnings                               46,915          57,497
      Accumulated other comprehensive income           6,361           5,742
      Common stock in treasury, at cost -
       680,235 and 55,808 shares, respectively       (9,075)           (246)
                                                    --------        --------
    Total Shareholders' Equity                       196,598         212,308
                                                    --------        --------
    Total Liabilities and Shareholders' Equity      $235,710        $259,314
                                                    --------        --------
                   FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                         Years Ended December 31,
                                      ------------------------------

    (in thousands)                        2009      2008      2007
    ------------------------------    ---------    -------   -------
    CASH FLOWS FROM:
    OPERATING ACTIVITIES:
      Net (loss) income              $(10,582)     $13,952   $18,093
      Adjustments to reconcile
       net (loss) income to net
       cash provided by operating
       activities:
        Depreciation and amortization    5,530       4,505     4,034
        Compensation for stock
         options and restricted
         stock units                     2,449       2,237     1,216
        Provision for bad debts          1,852       1,092       373
        Deferred income tax
         expense (benefit)               1,986     (1,972)     (464)
    Change in operating
     assets and liabilities:
      Decrease (increase) in:
        Accounts receivable              5,769       2,993   (9,121)
        Inventories, net                 8,301     (6,429)   (7,265)
        Prepaid expenses and
         other current assets            1,964     (1,187)   (3,208)
        Income tax benefit from
         exercise of stock
         options                           (4)        (45)     (963)
      Increase (decrease) in:
        Accounts payable and
         accrued liabilities           (7,891)     (5,317)     9,884
        Income taxes payable           (1,749)       (355)     1,278
        Customer deposits                1,736          82     (269)
        Unearned service
         revenues                        (396)       3,710     8,007
                                         -----      ------    ------
           Net cash provided by
            operating activities         8,965      13,266    21,595
                                         -----      ------    ------

    INVESTING ACTIVITIES:
      Purchases of property
       and equipment                   (3,387)     (9,705)   (2,930)
      Payments for intangible
       assets                            (670)     (3,766)     (359)
      Purchases of short-term
       investments                    (64,986)    (81,965)  (77,375)
      Proceeds from sales of
       short-term investments           81,965      77,375    15,790
                                        ------    --------  --------
           Net cash provided by
            (used in) investing
            activities                  12,922    (18,061)  (64,874)
                                        ------    --------  --------

     FINANCING ACTIVITIES:
      Payments on capital leases          (88)        (11)      (92)
      Income tax benefit from
       exercise of stock options             4          45       963
      Purchases of treasury stock      (8,829)        (95)         -
      Proceeds from issuance of stock,
       net                                  83          92    58,421
                                        ------       -----    ------
            Net cash (used in)
             provided by financing
             activities                (8,830)          31    59,292
                                        ------       -----    ------

    EFFECT OF EXCHANGE RATE CHANGES
     ON CASH AND CASH EQUIVALENTS      (1,473)       2,460   (5,904)
                                       -------       -----   -------

    INCREASE (DECREASE) IN
     CASH AND CASH EQUIVALENTS          11,584      (2,304)   10,109

    CASH AND CASH EQUIVALENTS,
     BEGINNING OF PERIOD                23,494      25,798    15,689
                                       -------     -------   -------

    CASH AND CASH EQUIVALENTS,
     END OF PERIOD                     $35,078     $23,494   $25,798
                                       =======     =======   =======
Thursday, February 25th, 2010 Uncategorized Comments Off on FARO Technologies (FARO) Reports Fourth Quarter 2009 Sales of $46 million

True Religion (TRLG) Announces Financial Results For Fourth Quarter and Full Year 2009

Feb. 24, 2010 (Business Wire) — True Religion Apparel, Inc. (Nasdaq: TRLG) today announced financial results for the quarter and year ended December 31, 2009.

Fourth Quarter 2009 Financial Results

  • Total net sales were $92.8 million, an increase of 27.2% as compared to $73.0 million in the fourth quarter of 2008.
    • Net sales for the Company’s consumer direct segment, which includes the Company’s branded retail stores and e-commerce site, increased 84.8% to $45.1 million as compared to $24.4 million in the prior year period. Fourth quarter same-store sales for 36 stores open at least 12 months increased 22.3%. The Company operated 70 branded stores as of December 31, 2009, compared to 42 as of December 31, 2008.
    • Net sales for the Company’s U.S. wholesale segment totaled $31.6 million as compared to $36.4 million in the prior year period; the 13.1% decline was due to lower sales to Majors and boutiques.
    • Net sales for the Company’s international segment increased 24.3% to $14.6 million as compared to $11.8 million in the prior year period.
    • Net sales included $1.5 million of licensing revenue as compared to $0.5 million in the same period last year.
  • Gross profit was $58.7 million, or 63.2% of net sales, compared to $43.3 million, or 59.3% of net sales, in the fourth quarter of 2008. The overall improvement in gross margin was primarily due to the ongoing sales mix shift toward the Company’s higher-margin consumer direct segment, with a higher international segment gross margin offset by a reduction in the U.S. wholesale gross margin.
  • Selling, general and administrative (“SG&A”) expense increased 48.6% to $34.8 million as compared to $23.4 million in the prior year period. As a percentage of net sales, SG&A increased 540 basis points to 37.5% from 32.1% in the same period a year ago. The year-over-year growth in SG&A expenses was driven by the costs associated with the opening of 28 new stores since December 31, 2008 and additional in-house resources.
  • Operating income increased 20.4% to $23.9 million as compared to $19.8 million in the prior year period. Operating income was 25.7% of sales in Q4 2009 versus 27.2% in Q4 2008.
  • The effective tax rate for the quarter was 38.9% as compared to 36.5% in the fourth quarter of 2008.
  • Net income increased 15.2% to $14.6 million, or $0.59 per diluted share based on weighted average shares outstanding of 24.8 million, as compared to $12.7 million, or $0.53 per diluted share based on weighted average shares outstanding of 24.1 million in the 2008 fourth quarter.

Management Comments

Jeffrey Lubell, Chairman, Chief Executive Officer and Chief Merchant of True Religion Apparel, commented: “The introduction of new jeans and related sportswear and licensed merchandise was both the foundation and catalyst for another year of record sales and profitability for True Religion. The growth of our U.S. consumer direct platform as well as the ongoing development of the True Religion brand in international markets provided incremental sales and earnings over the past year and should continue to offer our company future growth opportunities. We were also pleased to have exceeded our 2009 sales and earnings goals and delivered against our strategic and financial objectives despite the tremendous changes in the global macro-economy that occurred throughout last year.”

Mr. Lubell continued, “We recognize the importance of always looking to evolve the organization in a manner that will best position the True Religion brand for healthy long-term growth. We believe our performance in 2009 reinforces our strategy: to continually design and introduce trend-setting jeans and related sportswear; to balance our distribution between wholesale and consumer direct; and to increase our presence in the international market, which we believe has the potential of being larger than the domestic market. We also believe the strategic investments in our personnel, systems and infrastructure that we made over the past year will position our organization to take advantage of the many growth opportunities we have in front of us.”

2009 Financial Results

  • Total net sales were $311.0 million, an increase of 15.2% as compared to $270.0 million in the year ended December 31, 2008.
    • Net sales for the Company’s consumer direct segment increased 71.3% to $129.0 million as compared to $75.3 million in the prior year.
    • Net sales for the Company’s U.S. wholesale segment decreased 19.6% to $123.2 million as compared to $153.2 million in the prior year.
    • Net sales for the Company’s international segment increased 36.0% to $54.5 million as compared to $40.0 million in the prior year.
    • Net sales included $4.3 million of licensing revenue as compared to $1.4 million in the prior year.
  • Gross profit increased 24.6% to $195.6 million, or 62.9% of net sales, compared to $157.0 million, or 58.1% of net sales, in 2008. The overall improvement in gross margin was primarily due to the ongoing sales mix shift toward the Company’s higher-margin consumer direct segment.
  • Selling, general and administrative (“SG&A”) expense increased 33.9% to $118.0 million from $88.1 million in the prior year, and as a percentage of net sales, increased 530 basis points to 37.9% from 32.6% in the prior year. The year-over-year growth in SG&A expenses was driven by the costs associated with the significant expansion of the Company’s consumer direct segment and other in-house resources.
  • Operating income increased 12.7% to $77.6 million, or 25.0% of net sales, from $68.9 million, or 25.5% of net sales, in the prior year.
  • The effective tax rate for the year ended December 31, 2009 was 39.1% compared to 36.6% in the prior year.
  • Net income increased 6.7% to $47.3 million, or $1.92 per diluted share based on weighted average shares outstanding of 24.7 million, from $44.4 million, or $1.83 per diluted share based on weighted average shares outstanding of 24.3 million, in the prior year.

Balance Sheet and Liquidity

As of December 31, 2009, the Company had $105.5 million of cash and cash equivalents as compared to $57.2 million as of December 31, 2008. The Company also ended the year with no long-term borrowings. Inventory increased to $34.5 million, or by $8.7 million, from the same time a year ago, to support the expansion of the Company’s branded retail stores. Net cash provided by operating activities during 2009 was $66.5 million compared to $49.1 million in the prior year.

Store Openings

During the 2009 fourth quarter, True Religion opened four new stores, bringing its total store count at December 31, 2009, to 70 stores, compared to 42 stores at December 31, 2008. The Company anticipates opening 30 new retail stores in 2010, including 27 stores in the U.S. and its first three international full-price stores: Tokyo, London, and Toronto.

2010 Guidance

The Company is initiating its guidance for the fiscal year ended December 31, 2010, as follows:

  • Total net sales are expected to be approximately $360 million.
  • EPS is expected to be in the range of $2.00 to $2.10.

The Company’s net sales guidance relies on the following assumptions:

  • Net sales growth within the Company’s consumer direct segment are forecasted to grow between 40% and 45% compared to 2009. This growth assumes 28 new retail stores (27 in the U.S. plus one store in Toronto) and the full year impact of the 28 stores opened in 2009.
  • Net sales in the Company’s U.S. wholesale segment are expected to decrease in the mid-teens on a percentage basis as compared to 2009, mostly driven by management’s decision to reduce sales to the off-price channel by $10 million and instead place a greater emphasis on regular-price wholesale sales.
  • The international segment’s net sales are forecasted to increase by approximately 20% as compared to 2009.
  • The Company’s licensing revenues are expected to increase by approximately 15% as compared to 2009.

The Company’s 2010 EPS guidance reflects fully diluted weighted average shares outstanding of approximately 25.1 million and an effective tax rate of 37.6%, which will be down 150 bps from 2009 due to an increased federal credit rate available to domestic manufacturers in 2010.

Investor Conference Call

True Religion management will host a conference call to discuss the financial results and answer questions today at 4:30 p.m. ET. The conference call will be available to all interested parties through a live webcast at www.truereligionbrandjeans.com and www.earnings.com. Please visit the Web site at least 15 minutes prior to the start of the call to register and download any necessary software. For those unable to listen to the live broadcast, the call will be archived and available online at both sites. A telephone replay of the call will be available for approximately one month following the conclusion of the call by dialing (877) 660-6853 (domestic) or (201) 612-7415 (international) and entering account: 3055 and conference identification: 342908. Please note participants must enter both the account and Conference identification numbers in order to access the replay.

About True Religion Apparel, Inc.

True Religion Apparel, Inc. is a growing, design-based jeans and jean-related sportswear brand. The company designs, manufactures and markets True Religion Apparel products, including its premium True Religion Brand Jeans. Its expanding product line, which includes high-quality, distinctive styling and fit in denim, sportswear, and licensed products, may be found in contemporary department stores and boutiques in 50 countries around the world, including the United States, Canada, Germany, United Kingdom, Japan, Korea, France, Spain, Sweden, Greece, Italy, Mexico, Australia, South Africa and China. For more information, please visit www.truereligionbrandjeans.com.

Q4 & FY 2009 Segment Results

(Dollar amounts in thousands)

Quarters Ended December 31, Years Ended December 31,
% Increase/ % Increase/
Net sales: 2009 2008 Decrease 2009 2008 Decrease
Consumer Direct $ 45,145 $ 24,424 84.8 % $ 129,029 $ 75,314 71.3 %
U.S. Wholesale 31,582 36,358 (13.1 )% 123,203 153,235 (19.6 )%
International 14,617 11,755 24.3 % 54,479 40,044 36.0 %
Other 1,494 453 229.8 % 4,289 1,407 204.8 %
Total net sales $ 92,838 $ 72,990 27.2 % $ 311,001 $ 270,000 15.2 %
Quarters Ended December 31, Years Ended December 31,
2009 2008 2009 2008
Gross Gross Gross Gross
Margin Margin Margin Margin
Gross Profit: Amount % Amount % Amount % Amount %
Consumer Direct $ 33,147 73.4 % $ 18,273 74.8 % $ 95,276 73.8 % $ 57,669 76.6 %
U.S. Wholesale 16,021 50.7 % 18,740 51.5 % 65,882 53.5 % 78,670 51.3 %
International 8,047 55.1 % 5,798 49.3 % 30,115 55.3 % 19,255 48.1 %
Other 1,494 100.0 % 453 100.0 % 4,289 100.0 % 1,407 100.0 %
Total gross profit $ 58,709 63.2 % $ 43,264 59.3 % $ 195,562 62.9 % $ 157,001 58.1 %
Quarters Ended December 31, Years Ended December 31,
2009 2008 2009 2008
Operating Operating Operating Operating
Margin Margin Margin Margin
Operating Income: Amount % Amount % Amount % Amount %
Consumer Direct $ 17,413 38.6 % $ 8,540 35.0 % $ 44,766 34.7 % $ 27,810 36.9 %
U.S. Wholesale 6,253 19.8 % 11,270 31.0 % 30,763 25.0 % 47,452 31.0 %
International 6,374 43.6 % 4,652 39.6 % 25,167 46.2 % 16,761 41.9 %
Other (6,157 ) NM (4,627 ) NM (23,099 ) NM (23,147 ) NM
Total operating Income $ 23,883 25.7 % $ 19,835 27.2 % $ 77,597 25.0 % $ 68,876 25.5 %

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Among these forward looking statements are our 2010 Guidance, Segment Guidance, Store Opening Guidance and the other statements contained in this press release addressing our plans, expectations, future financial condition and results of operations. These forward-looking statements are not historical facts and are inherently uncertain and outside of our control. Any or all of our forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Actual future results may vary materially. Factors that may cause our plans, expectations, future financial condition and results to change are described in our Annual Report on Form 10-K, Reports on Form 10-Q and our other filings with the SEC, and include: the current downturn in the global economy and in particular, the decline in consumer spending generally and in the apparel industry more specifically; the Company’s ability to predict fashion trends; the Company’s ability to continue to maintain its brand image and reputation; competition from companies with significantly greater resources than ours; and the Company’s ability to continue and control its expansion plans.

TRUE RELIGION APPAREL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, expect per share data)
(Unaudited)
Quarters Ended Years Ended
December 31, December 31,
2009 2008 2009 2008
Net sales $ 92,838 $ 72,990 $ 311,001 $ 270,000
Cost of sales 34,129 29,726 115,439 112,999
Gross profit 58,709 43,264 195,562 157,001
Selling, general and administrative expenses 34,826 23,429 117,965 88,125
Operating income 23,883 19,835 77,597 68,876
Interest income, net (75 ) (177 ) (169 ) (1,065 )
Income before provision for income taxes 23,958 20,012 77,766 69,941
Provision for income taxes 9,323 7,305 30,434 25,570
Net income $ 14,635 $ 12,707 $ 47,332 $ 44,371
Earnings per share:
Basic $ 0.61 $ 0.54 $ 1.97 $ 1.89
Diluted $ 0.59 $ 0.53 $ 1.92 $ 1.83
Weighted average shares outstanding:
Basic 24,051 23,686 23,993 23,511
Diluted 24,847 24,050 24,659 24,270
TRUE RELIGION APPAREL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except par value amounts)
(Unaudited)
December 31, December 31,
2009 2008
ASSETS
Current Assets:
Cash and cash equivalents $ 105,531 $ 57,245
Short-term investments 4,948 4,850
Accounts receivable, net of allowances:
From customers 27,214 10,043
From factor 3 23,060
Inventory 34,502 25,828
Deferred income tax assets 8,753 6,498
Prepaid expenses and other current assets 7,000 4,148
Total current assets 187,951 131,672
Property and equipment, net 39,693 28,006
Long-term investments 4,990
Other assets 2,162 1,784
TOTAL ASSETS $ 229,806 $ 166,452
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 11,717 $ 10,633
Accrued salaries, wages and benefits 8,843 6,889
Income taxes payable 826 1,042
Total current liabilities 21,386 18,564
Long-Term Liabilities:
Long-term deferred rent 7,851 4,536
Long-term deferred income tax liabilities 2,715 1,102
Total long-term liabilities 10,566 5,638
Total liabilities 31,952 24,202
Stockholders’ Equity:
Preferred stock, $0.0001 par value, 20,000, shares authorized,
no shares issued and outstanding
Common stock, $0.0001 par value, 80,000 shares authorized,
25,250 and 24,450 issued and outstanding, respectively 3 2
Additional paid-in capital 49,840 38,554
Retained earnings 147,809 103,508
Accumulated other comprehensive income, net 202 186
Total stockholders’ equity 197,854 142,250
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 229,806 $ 166,452
TRUE RELIGION APPAREL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Years Ended December 31,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 47,332 $ 44,371
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 6,492 3,427
Provision for bad debts 99 577
Stock-based compensation 11,899 10,297
Tax benefit from stock-based compensation 55 229
Excess tax benefit from stock-based compensation (55 ) (229 )
Deferred income tax benefit (642 ) (128 )
Other 206 305
Changes in operating assets and liabilities:
Accounts receivable from factor 23,057 (8,271 )
Accounts receivable from customers (17,278 ) 1,914
Inventory (8,719 ) (4,377 )
Prepaid expenses and other current assets (2,861 ) (1,834 )
Other assets (280 ) (448 )
Accounts payable and accrued expenses 2,800 (825 )
Accrued salaries, wages and benefits 1,954 2,831
Income taxes payable (884 ) (2,168 )
Long-term deferred rent 3,315 3,391
Net cash provided by operating activities 66,490 49,062
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (20,082 ) (18,187 )
Sales of investments 4,900 5,550
Expenditures to establish trademarks (128 ) (81 )
Net cash used in investing activities (15,310 ) (12,718 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Statutory tax withholding payment for stock-based compensation (3,032 ) (8,110 )
Excess tax benefit from stock-based compensation 55 229
Proceeds from exercise of stock options 25
Net cash used in financing activities (2,977 ) (7,856 )
Effect of exchange rate changes in cash 83 71
Net increase in cash and cash equivalents 48,286 28,559
Cash and cash equivalents, beginning of period 57,245 28,686
Cash and cash equivalents, end of period $ 105,531 $ 57,245
Thursday, February 25th, 2010 Uncategorized Comments Off on True Religion (TRLG) Announces Financial Results For Fourth Quarter and Full Year 2009

Smith Micro Software (SMSI) to Present at the Jefferies 4th Annual Global Technology Conference

Feb. 25, 2010 (Business Wire) — Smith Micro Software, Inc. (NASDAQ: SMSI), a leading developer and marketer of mobility solutions and services for the wireless market, today announced that William W. Smith, Jr., President and CEO will be presenting at the Jefferies 4th Annual Global Technology Conference on Tuesday, March 9th at 8:00 am ET. The conference is being held at the Mandarin Oriental Hotel in New York City, New York.

Smith Micro will offer a live audio webcast of its presentation at 8:00 am ET on March 9, 2010 at http://www.wsw.com/webcast/jeff42/smsi/, as well as an archived replay, which may be accessed in the investor relations section of Smith Micro’s website at www.smithmicro.com.

Conference Details:

Jefferies 4th Annual Global Technology Conference
March 8-10, 2010
Mandarin Oriental Hotel in New York City, NY
More information can be found at: http://www.jefferies.com/

About Smith Micro Software, Inc.:

Smith Micro Software, Inc., headquartered in Aliso Viejo, California, with offices in Europe and Asia, develops mobility solutions that enable seamless broadband connectivity and next generation media and mobile convergence products over wireless networks. Smith Micro’s complete lines of products are available through its sales groups, direct from its websites, retail distributors, and value-added resellers. Smith Micro’s common stock trades on the NASDAQ Global Market under the symbol SMSI. For more information, please visit: http://www.smithmicro.com.

Safe Harbor Statement:

This release may contain forward-looking statements that involve risks and uncertainties, including without limitation forward-looking statements relating to the company’s net revenues guidance for fiscal 2010, its financial prospects and other projections of its performance, the company’s ability to increase its business and the anticipated timing and financial performance of its new products and potential acquisitions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are changes in demand for the company’s products from its customers and their end-users, new and changing technologies, customer acceptance of those technologies, new and continuing adverse economic conditions, and the company’s ability to compete effectively with other software companies. These and other factors discussed in the company’s filings with the Securities and Exchange Commission, including its filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management regarding future events and business performance as of the date of this release, and the company does not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.

Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.

Thursday, February 25th, 2010 Uncategorized Comments Off on Smith Micro Software (SMSI) to Present at the Jefferies 4th Annual Global Technology Conference

VocalTec (VOCL) Announces Fourth Quarter and Full Year 2009 Results

Feb. 24, 2010 (Business Wire) — VocalTec Communications Ltd. (NasdaqCM: VOCL) (the “Company” or “VocalTec”), a global provider of VoIP and convergence solutions for communication service providers, today reported results for the fourth quarter and full year ended December 31, 2009.

Revenues for the fourth quarter of 2009 were $2.0 million, an increase of 4% over the $1.9 million reported in the third quarter of 2009, resulting from continued growth in product sales.

Gross margin for the fourth quarter of 2009 was 60% compared with 64% for the prior quarter, in line with the Company’s normal expected level of around 60%.

On a non-GAAP basis, excluding the amortization of intangible assets and share based compensation expenses, the operating expenses in the fourth quarter were $1.1 million compared with $1.6 in the prior quarter. Operating expenses were lower in the quarter primarily due to the recording of a R&D grant for 2009 from the Office of the Chief Scientist of the Israeli Ministry of Trade, Industry and Labor amounting to $0.4 million.

The Company reported a non-GAAP operating income in the fourth quarter of 2009 of $0.1 million compared to an operating loss of $0.4 million in the prior quarter.

On a non-GAAP basis, net income for the fourth quarter was $0.7 million or $0.12 per share, compared with a net loss of $0.4 million, or $0.07 per share, in the third quarter of 2009. Net income on a GAAP basis for the fourth quarter of 2009 was also $0.7 million or $0.12 per share, compared with a net loss of $0.7 million, or $0.12 per share, in the third quarter of 2009. Both GAAP and non-GAAP net income for the fourth quarter of 2009 included a tax benefit of $0.6 million.

For the full year, 2009 revenues were $6.4 million compared with $6.1 million in 2008. Non-GAAP gross margin was 64% for 2009 compared with 58% in 2008. Non-GAAP operating loss for 2009 was $2.2 million, compared with an operating loss of $5.5 million in 2008 which excludes a one-time income from the sale of patents and an impairment of intangible assets. The improvement in 2009 was due to a higher gross profit and a significant reduction in operating expenses.

As of December 31, 2009, the Company had net cash and cash equivalents, short-term bank deposits and restricted cash, in the amount of $10.6 million, or $1.82 per share.

Commenting on the results, Ido Gur, VocalTec’s President and CEO, said, “We are pleased with our results, especially since despite a tough year in the Telecom industry, we showed continued growth in revenue and a reduction in costs. This demonstrates that we are very much on the right track to achieving sustained profitability. We also saw a high level of bookings in 2009 and our year-end backlog going into 2010 is strong, providing us with an increased level of visibility.”

Mr. Gur continued, “Our fourth quarter was also eventful from an M&A standpoint. We purchased substantially all of the assets of Outsmart, and we are happy to already report a first order. The acquired technology enables us to capitalize on the convergence between mobile and VoIP – a trend that is becoming increasingly prevalent, with global mobile VoIP users expected to exceed 280 million by 2013.”

Mr. Gur concluded, “For 2010, we expect to continue growing our revenues organically compared to 2009, and also capitalize on sales into the convergence and mobile VoIP markets. While we expect the first quarter to show the normal seasonal decline in revenues, we believe that our 2010 revenues will show accelerated annual growth. At the same time, we continue exploring M&A opportunities that will provide us with additional growth engines for the long-term.”

Conference Call

Mr. Ido Gur, President and CEO of VocalTec, invites investors to participate in a conference call scheduled for later today, Wednesday, February 24, 2010. The conference call will be held at 9:00am ET. On the call, VocalTec’s management will review and discuss the fourth quarter and full year results of operations and will be available to answer questions.

To participate, please call one of the following teleconferencing numbers, 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1 888 281 1167

ISRAEL Dial-in Number: 03 918 0644

INTERNATIONAL Dial-in Number: +972 3 918 0664

For those unable to listen to the live call, a replay of the call will be available from a link in the investor relations section of VocalTec’s website, at: www.vocaltec.com

About VocalTec

VocalTec Communications (NasdaqCM: VOCL) is a global provider of carrier-class Voice-over-IP and Convergence solutions for fixed and wireless service providers. A pioneer in VoIP technology since 1994, VocalTec develops and markets an extensive VoIP offering enabling the flexible deployment of next-generation networks (NGNs). Partnering with prominent system integrators and equipment manufacturers, VocalTec serves an installed base of dozens of leading carriers worldwide. VocalTec is led by a management team comprised of respected industry veterans.

www.vocaltec.com

Forward Looking Statements

This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of VocalTec. The words “believe,” “expect,” “intend,” “plan,” “should” and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the telecommunications and VoIP markets and in general economic and business conditions, loss of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. Should one or more of these or other risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. The Company does not intend or assume any obligation to update these forward-looking statements.

CONSOLIDATED STATEMENT OF OPERATIONS
Reconciliation of GAAP to non GAAP results *
All data in thousands of U.S. dollars
Three months ended Twelve months ended
December 31, September 30, December 31,
2009 2009 2009 2008
GAAP results(as reported) GAAP results(as reported) GAAP results(as reported) GAAP results(as reported)
Sales
Products 1,573 1,270 4,218 3,980
Services 415 644 2,189 2,134
1,988 1,914 6,407 6,114
Cost of sales
Products 655 552 1,768 2,027
Services 137 142 569 580
792 694 2,337 2,607
Amortization of intangible assets 328
792 694 2,337 2,935
Gross profit 1,196 1,220 4,070 3,179
Operating Expenses
Research and development, net. (22 ) 624 2,056 4,154
Selling and marketing 610 778 3,020 3,374
General and administrative 498 535 2,147 2,704
Income from sale of Patents, net (14,913 )
Impairment of goodwill and intangible assets 3,993
Amortization of intangible assets 6 6 24 180
Total Operating Expenses 1,092 1,943 7,247 (508 )
Operating income (loss) 104 (723 ) (3,177 ) 3,687
Financial Income, net 2 27 132 90
Net income (loss) before income taxes 106 (696 ) (3,045 ) 3,777
Income taxes (tax benefit) (590 ) (590 ) 69
Net income (loss) 696 (696 ) (2,455 ) 3,708
GAAP net income (loss) 696 (696 ) (2,455 ) 3,708
Adjustments
Impairment of goodwill 3,993
Amortization of intangible assets
included in cost of sales 328
included in operating expenses 6 6 24 180
Equity based compensation expense (income)
included in cost of sales (6 ) 5 9 17
included in research and development (160 ) 94 120 357
included in sales and marketing (58 ) 62 127 263
included in general and administrative 189 158 680 532
Non-GAAP net income (loss) 667 (371 ) (1,495 ) 9,378

*To supplement our consolidated financial statement presented in accordance with generally accepted accounting principles (GAAP), we use NON-GAAP measures of operating results, net income, which are adjusted from results based on GAAP to exclude the expense we  recorded for share-based compensation and amortization of intangible assets. These NON-GAAP financial measures are provided to enhance overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the NON-GAAP  results provide useful information to both management and investors as these NON- GAAP results exclude matters that we believe are not indicative of our core operating results. Further, these NON-GAAP results are one of the primary indicators management uses for assessing our performance, allocating resources and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. These NON-GAAP measures may be different than the NON-GAAP measures used by other companies.

VOCALTEC COMMUNICATIONS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
December 31 December 31
2009 2008
Current Assets
Cash and Cash equivalents 7,510 5,090
Short term deposits 3,049 9,900
Restricted cash 23 554
Trade receivables, net 199 214
Other receivables 459 483
Severance pay funds 3 489
Inventories 63 38
Work in progress 762
Total Current Assets 12,068 16,768
Severance pay funds 823 618
Equipment, net 487 614
Intangible assets, net 480 160
Total Assets 13,858 18,160
Current Liabilities
Trade payable 851 1,707
Accrued expenses 2,053 3,300
Accrued severance pay 3 756
Deferred revenues 1,313 885
Total Current Liabilities 4,220 6,648
Long Term Liabilities
Accrued severance pay 1,027 870
Other long term liabilities 107
Total Long Term 1,134 870
Total Liabilities 5,354 7,518
Shareholders Equity
Share capital 216 213
Other comprehensive income 76
Additional paid-in capital 95,820 94,761
Treasury stock (669)
Accumulated deficit (86,863) (84,408)
Total Shareholders Equity 8,504 10,642
Total Liabilities and Shareholders Equity 13,858 18,160
Wednesday, February 24th, 2010 Uncategorized Comments Off on VocalTec (VOCL) Announces Fourth Quarter and Full Year 2009 Results

Salix Pharmaceuticals, Ltd. (SLXP) – FDA Advisory Committee Recommends Approval Of XIFAXAN(R) (rifaximin) Tablets

Feb. 23, 2010 (Business Wire) — Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) today reported that the Gastrointestinal Drugs Advisory Committee of the FDA has recommended by a vote of 14 to 4 in favor of the approval of XIFAXAN® (rifaximin) Tablets, 550 mg for the maintenance of remission of hepatic encephalopathy (HE).

“We are very pleased with the advisory committee’s support for the approval of XIFAXAN 550 mg tablets. If approved, XIFAXAN 550 mg will be the first new option for the management of hepatic encephalopathy in over 30 years,” stated Bill Forbes, Pharm.D., Senior Vice President Research and Development and Chief Development Officer, Salix. “We believe the availability of XIFAXAN 550 mg has the potential to change the treatment paradigm for HE. Today’s independent recommendation from the outside experts comprising the advisory committee reinforces the Company’s confidence in the potential for XIFAXAN 550 mg to provide a solution for patients suffering from this serious condition.”

The committee reviewed data from the Company’s 299-subject, double-blind, placebo-controlled, multinational, Phase 3 study. This study demonstrated a statistically significant and clinically meaningful reduction in the risk of recurrent overt HE.1 The primary endpoint – the risk of experiencing a breakthrough overt HE episode – was reduced by 58 percent in XIFAXAN 550 mg-treated subjects compared with placebo (p<0.0001). The key secondary endpoint – risk of experiencing HE-related hospitalization – was reduced by 50 percent in XIFAXAN 550 mg-treated subjects compared with placebo (p=0.0129). The committee also reviewed supporting evidence from the Company’s long-term, open-label, Phase 3 study, as well as evidence derived from clinical studies in acute HE, three-month and six-month studies from the published literature and meta-analyses.

The FDA convenes the Gastrointestinal Drugs Advisory Committee to obtain independent expert advice on a broad scope of issues relating to gastrointestinal drug products. The committee provides non-binding recommendations which will be considered by the FDA in its final review; however, the final decision on approval of the drug is made by the FDA.

The FDA has issued an action date of March 24, 2010 under the Prescription Drug User Fee Act for the XIFAXAN 550 mg HE NDA. XIFAXAN has been granted Orphan Drug designation by the FDA for use in hepatic encephalopathy. Salix believes this designation will provide seven years of marketing exclusivity in the United States if XIFAXAN 550 mg gains approval from the FDA for HE.

Hepatic encephalopathy occurs frequently in patients with cirrhosis as a result of their end-stage liver disease. Typically the cirrhosis is caused by a number of factors, such as alcohol and/or drug abuse, chronic viral hepatitis and autoimmune disease. There are more than 600,000 cases of cirrhosis in the United States and it is a leading cause of death in the United States.2 The number of cases of liver disease in the United States and around the world is rapidly increasing, with the estimated prevalence of chronic liver disease in the United States believed to be between 6 and 7 million cases. There are reported to be approximately 200,000 patients in the United States with overt HE.

About Hepatic Encephalopathy

Hepatic encephalopathy (HE) is a neurological disorder caused by chronic liver failure resulting in cognitive, psychiatric and motor impairments. The condition encompasses a wide spectrum of often reversible neuropsychiatric abnormalities caused by the inability of the liver to remove toxic products in the gut, most notably ammonia produced by bacteria in the GI tract. When toxins reach the central nervous system, this condition can result in symptoms ranging in severity from mild cerebral function deficits to coma and characterized by disruption in sleep patterns, changes in personality and intellectual capacity, high blood ammonia levels, altered neuromuscular activity and electroencephalogram (EEG) abnormalities.

About XIFAXAN® (rifaximin)

Rifaximin is a gut-selective antibiotic with negligible systemic absorption (<0.4%) and broad-spectrum activity in vitro against both gram-positive and gram-negative pathogens. Rifaximin has a similar tolerability profile to that of placebo.

Rifaximin tablets 200 mg, which Salix markets in the United States under the trade name XIFAXAN® (rifaximin) tablets 200 mg, currently is approved for the treatment of patients, 12 years of age or older, with travelers’ diarrhea (TD) caused by non–invasive strains of Escherichia coli. XIFAXAN (rifaximin) is a gut–selective antibiotic with negligible systemic absorption (<0.4%) and broad–spectrum activity in vitro against both gram–positive and gram–negative pathogens. Rifaximin has a similar tolerability profile to that of placebo and has activity against the most common TD pathogens. XIFAXAN should not be used in patients with diarrhea complicated by fever or blood in the stool or diarrhea due to pathogens other than Escherichia coli. XIFAXAN should be discontinued if diarrhea symptoms get worse or persist more than 24–48 hours and alternative antibiotic therapy should be considered. In clinical trials, XIFAXAN was generally well tolerated. The most common side effects (vs. placebo) were flatulence 11.3% (versus 19.7%), headache 9.7% (versus 9.2%), abdominal pain 7.2% (versus 10.1 %) and rectal tenesmus 7.2% (versus 8.8%).

Rifaximin has been used in Italy for 24 years and is approved in 33 countries. Salix acquired rights to market rifaximin in North America from Alfa Wassermann S.p.A. in Bologna, Italy. Alfa Wassermann markets rifaximin in Italy under the trade name Normix®.

About Salix Pharmaceuticals

Salix Pharmaceuticals, Ltd., headquartered in Raleigh, NC, develops and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases. Salix’s strategy is to in-license late-stage or marketed proprietary therapeutic drugs, complete with any required development and regulatory submission of these products, and market them through the Company’s gastroenterology specialty sales and marketing team.

Salix also markets MOVIPREP® (PEG 3350, Sodium Sulfate, Sodium Chloride, Potassium Chloride, Sodium Ascorbate and Ascorbic Acid for Oral Solution), VISICOL® (sodium phosphate monobasic monohydrate, USP, and sodium phosphate dibasic anhydrous, USP) Tablets, OSMOPREP® (sodium phosphate monobasic monohydrate, USP and sodium phosphate dibasic anhydrous, USP) Tablets, APRISO™ (mesalamine) extended-release capsules 0.375 g., METOZOLVTM ODT (metoclopramide HCl), PEPCID® (famotidine) for Oral Suspension, Oral Suspension DIURIL® (Chlorothiazide), AZASAN® Azathioprine Tablets, USP, 75/100 mg, ANUSOL-HC® 2.5% (Hydrocortisone Cream, USP), ANUSOL-HC® 25 mg Suppository (Hydrocortisone Acetate), PROCTOCORT® Cream (Hydrocortisone Cream, USP) 1% and PROCTOCORT® Suppository (Hydrocortisone Acetate Rectal Suppositories) 30 mg. Crofelemer, budesonide foam and rifaximin for additional indications are under development.

For full prescribing information and important safety information, including BOXED WARNINGS for VISICOL, OSMOPREP and METOZOLV, on Salix products, please visit www.salix.com where the Company promptly posts press releases, SEC filings and other important information or contact the Company at 919 862-1000.

For more information, please visit our Web site at www.salix.com or contact the Company at 919-862-1000. Information on our Web site is not incorporated into our SEC filings.

Please Note: The materials provided herein contain projections and other forward-looking statements regarding future events. Such statements are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others: the unpredictable nature of the duration and results of regulatory review of new drug applications; market acceptance for approved products; generic and other competition; the possible impairment of, or inability to obtain, intellectual property rights and the costs of obtaining such rights from third parties; our need to return to profitability; and the need to acquire new products. The reader is referred to the documents that the Company files from time to time with the Securities and Exchange Commission.

1. Barbaro. In: Hepatology: Flumazenil for Hepatic Encephalopathy Grade III and IVa in Patients With Cirrhosis: An Italian Multicenter Double-Blind, Placebo-Controlled, Cross-Over Study 1998: 374-378. AASLD publication Vol. 28, No. 2.

2. DuFour. In: Everhart, ed. Digestive Diseases in the United States: Epidemiology and Impact. 1994: 613-646. NIH publication No. 94-1447.

Wednesday, February 24th, 2010 Uncategorized Comments Off on Salix Pharmaceuticals, Ltd. (SLXP) – FDA Advisory Committee Recommends Approval Of XIFAXAN(R) (rifaximin) Tablets

FedFirst Financial Corp. (FFCO) Announces Adoption of Plan of Conversion and Reorganization

Feb. 24, 2010 (Business Wire) — FedFirst Financial Corporation (the “Company”) (Nasdaq Capital: FFCO), holding company for First Federal Savings Bank (the “Bank”), announced today that the Board of Directors of the Company has unanimously adopted a Plan of Conversion and Reorganization pursuant to which the Bank will reorganize from the two-tier mutual holding company structure to the stock holding company structure and will undertake a “second-step” stock offering of shares of common stock of a new state chartered corporation formed in connection with the conversion. The Bank converted from a mutual savings bank to the two-tier mutual holding company structure in 1999 and completed a public offering of shares of the mid-tier stock holding company in 2005.

FedFirst Financial Mutual Holding Company (the “MHC”), which owns approximately 57.5% of the outstanding common stock of the Company, will be merged with and into the Bank as part of the reorganization and its shares in the Company will be retired. The new holding company will offer and sell shares of common stock in an amount representing the percentage ownership interest currently held by the MHC, to be based on an appraisal of the Bank, as converted, which will be performed by an independent appraiser. The new holding company will offer shares of its common stock for sale to the Bank’s eligible account holders and borrows and to members of the general public in a subscription and community offering in the manner and subject to the priorities set forth in the Plan of Conversion and Reorganization. The highest priority will be depositors with qualifying deposits as of January 31, 2009. In addition, existing shareholders of the Company, other than the MHC, will receive shares of common stock of the new holding company pursuant to an “exchange ratio” designed to preserve their aggregate percentage ownership interest. The exchange ratio will be determined based upon the appraisal and the results of the offering.

The conversion and reorganization will be subject to approval of the Bank’s depositors and certain borrowers, the Company’s shareholders (including the approval of a majority of the shares held by persons other than the MHC), and the Office of Thrift Supervision.

Information, including the details of the offering and business and financial information about the Company and the Bank, will be provided in proxy materials and a prospectus when the offering commences, which is expected to be during the second quarter of 2010.

FedFirst Financial Corporation is the parent company of First Federal Savings Bank, a community-oriented financial institution operating nine full-service branch locations in southwestern Pennsylvania. First Federal offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance services through Exchange Underwriters, Inc., its 80% owned subsidiary.

This release is neither an offer to sell nor a solicitation of an offer to buy common stock. The offer is made only by the prospectus when accompanied by a stock order form. The shares of common stock of the new holding company are not savings accounts or savings deposits, may lose value, and are not insured by the Federal Deposit Insurance Corporation or any other government agency.

This press release contains certain forward-looking statements about the conversion and reorganization. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include delays in consummation of the Plan of Conversion and Reorganization, difficulties in selling the conversion stock or in selling the conversion stock within the expected time frame, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and Bank are engaged.

Wednesday, February 24th, 2010 Uncategorized Comments Off on FedFirst Financial Corp. (FFCO) Announces Adoption of Plan of Conversion and Reorganization

PositiveID Corp. (PSID) Enters Into Partnership to Launch Next Generation of its Health Link Personal Health Record

Feb. 24, 2010 (Business Wire) — PositiveID Corporation (“PositiveID” or the “Company”) (NASDAQ:PSID) announced today that it has entered into a partnership with FIS (NYSE:FIS), one of the world’s largest providers of banking and payments technology, to launch the Company’s next generation Health Link personal health record (“Health Link”). The new Health Link, which is now live, will be interoperable with Microsoft HealthVault and Google Health, as well as numerous electronic medical records systems in use throughout the country.

To launch the next generation of Health Link, PositiveID partnered with FIS and their HealthManager product to build a robust, interoperable personal health record to offer patients the best of breed for storing and accessing their vital data. Health Link connects patients to a multitude of customized material such as personalized health education and online connectivity to caregivers. Through reminders and alerts that can be tailored to suit an individual’s unique circumstances, members are reminded of important actions and receive suggestions to better manage their health. This includes everything from refilling prescriptions on time, appointment reminders, drug interaction warnings, and tips for preventative actions.

Scott R. Silverman, Chairman and CEO of PositiveID, said, “The next generation of our Health Link personal health record will put consumers in charge of their health information, enabling them to manage all of their health data from one centralized, interoperable location. Health Link’s partnership with FIS will give patients the ability to connect to their healthcare providers, pharmacies, caretakers, and even their medical devices.”

About FIS

FIS delivers banking and payments technologies to more than 14,000 financial institutions and businesses in over 100 countries worldwide. FIS provides financial institution core processing, and card issuer and transaction processing services, including the NYCE® Network. FIS maintains processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. FIS is a member of Standard and Poor’s (S&P) 500® Index and consistently holds a leading ranking in the annual FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 on a global basis. FIS is listed on the New York Stock Exchange under the “FIS” ticker symbol. For more information about FIS see www.fisglobal.com.

About PositiveID Corporation

PositiveID Corporation develops and markets healthcare and information management products through its RFID-based diagnostic devices and identification technologies, and its proprietary disease management tools. PositiveID operates in two main divisions: HealthID and ID Security. For more information on PositiveID, please visit www.PositiveIDCorp.com.

Statements about PositiveID’s future expectations, including the ability of Health Link to be interoperable with Microsoft Health Vault and Google Health and numerous electronic medical records systems in use throughout the country, the capabilities of Health Link, the ability of Health Link to put consumers in charge of their health information, enabling them to manage all of their health data from one centralized, interoperable location, the ability of the Company’s partnership with FIS to give patients the ability to connect to their healthcare providers, pharmacies, caretakers and medical devices, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and PositiveID’s actual results could differ materially from expected results. These risks and uncertainties include the capabilities of Health Link and Health Link’s interoperability; as well as certain other risks. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s various filings with the Securities and Exchange Commission, including those set forth in the Company’s 10-K filed on February 12, 2009, under the caption “Risk Factors.” The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.

Wednesday, February 24th, 2010 Uncategorized Comments Off on PositiveID Corp. (PSID) Enters Into Partnership to Launch Next Generation of its Health Link Personal Health Record

Scania (ITI) Signs 3-Year Contract Extension for Iteris’ Lane Departure Warning Systems

Feb. 23, 2010 (Business Wire) — Iteris, Inc. (NYSE Amex:ITI), a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced that Scania, one of the world’s leading manufacturers of trucks and buses for heavy transport applications, has signed a three-year contract extension to continue to offer Iteris’ AutoVue® Lane Departure Warning (LDW) Systems as a factory-installed option on its heavy trucks. The contract period began at end of 2009 and extends through 2012.

The LDW system that Iteris provides to Scania is an active safety system that has been specially developed to take into account driver behavior as well as adverse weather conditions. This intelligent system warns the driver if the vehicle unintentionally crosses lane markings on the road. By monitoring steering wheel movement the system can also discern between intentional lane positioning as opposed to drifting caused by inattention.

“I am pleased that Scania has chosen to extend its contract to continue to provide Iteris’ AutoVue LDW Systems,” said Mr. Abbas Mohaddes, president and chief executive officer of Iteris. “Since the initial agreement in 2006, Scania has made the Iteris AutoVue LDW System a part of its safety offering for heavy commercial trucks. I believe this contract extension is another important step in solidifying our European LDW heavy truck business as we now have agreements with two of the largest European heavy truck OEM’s, Scania and MAN, through 2012.”

AutoVue LDW System

Iteris’ AutoVue LDW system is a small, integrated unit consisting of a camera, onboard computer, and sophisticated image processing algorithms. The system’s camera tracks visible lane markings and its algorithms detect when a vehicle drifts toward an unintended lane change. If this occurs, the system automatically emits a distinctive rumble strip or other audible warning, alerting the driver to make a correction. LDW is a proven, reliable technology that is well positioned to become an integral part of any comprehensive vehicle safety solution. A pioneer in vehicle safety technology, Iteris developed the world’s first production Lane Departure Warning System and is available as an OEM option in passenger cars and as an OEM and aftermarket option on heavy trucks worldwide.

About Scania

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company’s operations consist of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 32,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2009, invoiced sales totalled SEK 62 billion and net income amounted to SEK 1.1 billion. Scania press releases are available on www.scania.com.

About Iteris, Inc.

Iteris, Inc. is a leader in the traffic management market focused on the development and application of advanced technologies that reduce traffic congestion, minimize the environmental impact of traffic congestion, and improve the safety of surface transportation systems infrastructure. Combining outdoor image processing, traffic engineering, and information technology, Iteris offers a broad range of Intelligent Transportation Systems and driver safety solutions to customers worldwide. Iteris is headquartered in Santa Ana, California, with offices throughout North America and in Europe and Asia. Investors are encouraged to contact us at 888-329-4483, or at www.iteris.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “can,” and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the performance, acceptance and expected benefits of our technology including our AutoVue Lane Departure Warning Systems, our market opportunities both domestically and abroad and our strategies and our future prospects. These statements are subject to change and we undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to the market acceptance of our technologies and of the products that incorporate our technologies; commercial vehicle and automotive production schedules and agendas; the timing and successful completion of customer qualification of our products and the risks of non-qualification; market acceptance of our LDW system and the vehicles that incorporate our systems; our ability to specify, develop, complete, introduce, market, and transition our products and technologies to volume production in a timely manner; the potential unforeseen impact of product offerings from competitors and other competitive pressures; and the general economic and political conditions and specific conditions in the markets we address, including the general economic slowdown and volatility in the automotive and commercial vehicle sector. Further information on Iteris, Inc., including additional risk factors that may affect our forward-looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and our other SEC filings that are available through the SEC’s website (www.sec.gov).

Tuesday, February 23rd, 2010 Uncategorized Comments Off on Scania (ITI) Signs 3-Year Contract Extension for Iteris’ Lane Departure Warning Systems

NIVS (NIV) Announces Preliminary Results of Operations for 2009

Feb. 23, 2010 (PR Newswire) — NIVS Announces Preliminary Results of Operations for 2009

HUIZHOU, Guangdong, China — NIVS IntelliMedia Technology Group, Inc. (“NIVS” or the “Company”) (NYSE Amex: NIV), a consumer electronics company that designs, manufactures and sells intelligent audio and visual products, today announced preliminary results of operations for its fiscal 2009 year end.

Preliminary results from the Company’s 2009 fiscal year ended December 31, 2009 include:

    -- Estimated revenue of $184 million to $186 million for the year
       ended December 31, 2009 as compared to $143.6 million for the year
       ended December 31, 2008.

    -- Estimated net income for the year ended December 31, 2009 of $23.5
       million to $25.5 million as compared to $13 million for the year
       ended December 31, 2008 - of note is that net income for 2009 was
       positively affected by the reversal in 2009 of $2.7 million of bad
       debt allowance. This reversal in 2009, combined with $2.5 million of
       bad debt expense recorded in 2008 resulted in $5.2 million of the
       estimated $10.5 to $12.5 million increase in estimated net income
       for 2009. The Company believes the reversal of its bad debt allowance
       was justified due to an improvement in the Chinese economy in late
       2009, stable collection of accounts receivable in 2009 and the
       Company's efforts to collect outstanding old accounts receivables
       in 2009.

    -- General and administrative expense for the year ended December 31, 2009
       are estimated to be $1.5 million to $1.7 million as compared to $8.7
       million for the year ended December 31, 2008 - of note is that the
       substantial portion of such decrease relates to the above-referenced
       $5.2 million decrease in general and administrative expense resulting
       from the $2.7 million reversal of bad debt allowance in 2009 and the
       $2.5 million bad debt expense recorded in 2008.

    -- Cash and cash equivalents at December 31, 2009 were approximately $6.0
       million with a working capital deficit of $4.6 million as compared to
       $0.5 million of cash and cash equivalents and an $18.6 working capital
       deficit for the period ended December 31, 2008

“We are encouraged to report strong estimated revenue and net income growth for fiscal 2009. The improvement in our working capital position at year-end as compared to the previous year-end period is also encouraging,” commented Mr. Tianfu Li, NIVS’ Chairman and Chief Executive Officer.

About NIVS IntelliMedia Technology Group, Inc.

NIVS IntelliMedia Technology Group is an integrated consumer electronics company that designs, manufactures, markets and sells intelligent audio and video products in China, Greater Asia, Europe, and North America. The NIVS brand has received “Most Popular Brand” distinction in China’s acoustic industry for three consecutive years, among numerous other awards. NIVS has developed leading Chinese speech interactive technology, which forms a foundation for the Company’s intelligent audio and visual systems, including digital audio, LCD televisions, digital video broadcasting (“DVB”) set-top boxes, peripherals and more.

Safe Harbor Statement

This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward looking terminology such as “believes, expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including, but not limited to completion and audit of the Company’s financial statements for the fourth quarter and year end 2009; the Company’s ability to remediate the significant deficiencies and/or material weakness(es) in its internal controls; the Company’s ability to effectively integrate the operations and management of acquisition targets; the Company’s ability to timely deliver products; the Company’s ability to timely develop and market new products; the Company’s ability to continue to borrow and raise additional capital to fund its operations; the Company’s ability to accurately forecast amounts of supplies needed to meet customer demand; exposure to market risk through sales in international markets; the market acceptance of the Company’s products; exposure to product liability and defect claims; fluctuations in the availability of raw materials and components needed for the Company’s products; protection of the Company’s intellectual property rights; and changes in the laws of the PRC that affect the Company’s operations. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the discussed above and in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume an obligation to update these forward-looking statements.

Tuesday, February 23rd, 2010 Uncategorized Comments Off on NIVS (NIV) Announces Preliminary Results of Operations for 2009

PharmAthene (PIP) Awarded up to Additional $78.4 Million Under Existing Contract

Feb. 23, 2010 (PR Newswire) — PharmAthene Awarded up to Additional $78.4 Million Under Existing Contract for Advanced Development of SparVax(TM) Anthrax Vaccine

ANNAPOLIS, Md. — PharmAthene, Inc. (NYSE Amex: PIP) a biodefense company specializing in the development and commercialization of medical countermeasures against chemical and biological threats, announced today that the Department of Health and Human Services (HHS), through the Biomedical Advanced Research and Development Authority (BARDA) has modified its existing research and development contract with PharmAthene providing for up to a total of $78.4 million in additional funding, provided that certain milestones are achieved and that all contract options and extensions are exercised by the government, to support the continued advanced development of SparVax™, a second generation recombinant protective antigen (rPA) anthrax vaccine targeted for future procurement in the U.S. Strategic National Stockpile (SNS).

“We are pleased to be awarded additional development funding for our SparVax™ anthrax vaccine program, which may offer a promising improved alternative to existing anthrax vaccine options,” commented David P. Wright, President and Chief Executive Officer. “There is widespread acknowledgement among various government agencies that the United States must develop and stockpile a second generation anthrax vaccine employing modern vaccine technology that offers the potential for improved safety, convenience and enhanced cost effectiveness.  New and improved anthrax vaccines, based on modern state-of-the-art recombinant vaccine technology, incorporate significant product development and technological advancements and ultimately may provide meaningful health and economic advantages.”

In addition to the funding announced today, on February 1, 2010 PharmAthene also submitted a White Paper seeking further development funding for SparVax™, in response to a Broad Agency Announcement (Solicitation Number: BAA-BARDA-09-34).

“We believe that, if awarded, funding provided under the BAA, along with the additional funding announced today, could be sufficient to advance SparVax™ to a stage where it will be eligible for consideration for a Project BioShield procurement contract,” said Mr. Wright.

SparVax™ is a highly purified recombinant protective antigen vaccine being developed for pre and post exposure protection against anthrax infection.  Phase I and Phase II clinical trials involving 770 healthy human subjects have been completed and demonstrated that SparVax™ appears to be well tolerated and immunogenic in humans.  These studies suggest that three doses of SparVax™, administered over a 56 day period, are sufficient to induce protective immunity.  The vaccination regimen for the currently licensed anthrax vaccine, BioThrax®, requires five doses over a period of eighteen months.

The contract modification, which is effective February 22, 2010 and extends until December 31, 2012, provides for up to $61 million during a “base period” of performance with options for an additional $17 million on a cost reimbursement plus fixed fee basis in additional advanced development funding for SparVax™.  Provided that certain milestones are achieved, and that all contract options and extensions are exercised by the government, the contract has a total potential value of $78.4 million. The activities outlined under the contract modification are designed to continue existing development activities already under contract (HHSO100200900103C).  The modification will include non-clinical safety and efficacy studies, assay development and qualification, and process scale up and validation.

“PharmAthene has a strong track record of successfully collaborating with a number of U.S. government agencies, including, the National Institutes of Health (NIH), BARDA, the United States Army Medical Research Institute for Infectious Diseases, and the Department of Defense, to advance the development of our biodefense product portfolio to address biological and chemical threats and preserve the security and well-being of our military personnel and citizens.  We are deeply committed to providing improved medical countermeasures for anthrax, which is considered to be the number one biological threat facing the Nation.  We applaud President Obama’s renewed commitment to protecting our Nation against the threat of bioterrorism and look forward to continuing our work with the government.  It is our shared goal to develop the medical countermeasures necessary to successfully deter or quickly respond to a biologic attack and save American lives,” said Mr. Wright.

Including the additional funding announced today, PharmAthene’s SparVax™ program has been awarded funding commitments from the U.S. government totaling up to $213.2 million.

The rPA contract modification was announced via a Special Notice (Solicitation Number: HHSO100200900103C) rPA Anthrax Vaccine Advance Development, issued by HHS on December 29, 2009. The original development contract for rPA vaccine (N01-Al-30052) was issued in 2003 and transferred to BARDA on April 1, 2009.

About SparVax™

SparVax™ is a novel second generation recombinant protective (rPA) anthrax vaccine being developed for pre and post exposure protection against anthrax infection.  SparVax™ is a highly purified, well characterized, sub unit vaccine comprised of a single protein (recombinant PA) manufactured in E.coli. Phase I and Phase II clinical trials involving 770 healthy human subjects have been completed and showed that SparVax™ appears to be well tolerated and immunogenic in humans.  These studies suggest that three doses of SparVax™, administered several weeks apart, should be sufficient to induce protective immunity.  In non-clinical studies SparVax™ has also demonstrated the capability to protect rabbits and non-human primates against a lethal aerosol spore challenge of the anthrax Ames strain.

About PharmAthene, Inc.

PharmAthene was formed to meet the critical needs of the United States and its allies by developing and commercializing medical countermeasures against biological and chemical weapons. PharmAthene’s lead product development programs include:

  • SparVax™ – a second generation recombinant protective antigen (rPA) anthrax vaccine
  • Third generation rPA anthrax vaccine
  • Valortim® – a fully human monoclonal antibody for the prevention and treatment of anthrax infection
  • Protexia® – a novel bioscavenger for the prevention and treatment of morbidity and mortality associated with exposure to chemical nerve agents

For more information about PharmAthene, please visit www.PharmAthene.com.

Statement on Cautionary Factors

Except for the historical information presented herein, matters discussed may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements.  Statements that are not historical facts, including statements preceded by, followed by, or that include the words “potential”; “believe”; “anticipate”; “intend”; “plan”; “expect”; “estimate”; “could”; “may”; “should”; or similar statements are forward-looking statements.  PharmAthene disclaims, however, any intent or obligation to update these forward-looking statements.  Risks and uncertainties include risks associated with the reliability of the results of the studies relating to human safety and possible adverse effects resulting from the administration of the Company’s product candidates, unexpected funding delays and/or reductions or elimination of U.S. government funding for one or more of the Company’s development programs, the award of government contracts to our competitors, unforeseen safety issues, challenges related to the development, scale-up, and/or process validation of manufacturing processes for our product candidates, unexpected  determinations that these product candidates prove not to be effective and/or capable of being marketed as products  as well as risks detailed from time to time in PharmAthene’s Form 10-K and 10-Q under the caption “Risk Factors” and in its other reports filed with the U.S. Securities and Exchange Commission (the “SEC”).  In particular, the funding provided for under this contract modification is not sufficient to complete the development work needed for SparVax™ to meet the criteria for procurement into the Strategic National Stockpile or to achieve FDA licensure.  There can be no assurance that the government will provided additional funding to support the further advanced development of this product candidate to achieve these objectives.   Furthermore, significant additional non-clinical animal studies, human clinical trials, and manufacturing development work remain to be completed for SparVax™. At this point there can be no assurance that this product candidate will be shown to be safe and effective and approved by regulatory authorities for use in humans. Copies of PharmAthene’s public disclosure filings are available from its investor relations department and our website under the investor relations tab at www.PharmAthene.com.

Tuesday, February 23rd, 2010 Uncategorized Comments Off on PharmAthene (PIP) Awarded up to Additional $78.4 Million Under Existing Contract

Cimatron Ltd. (CIMT) Reports Non-GAAP Net Profit of $1 Million in the Fourth Quarter of 2009

Feb. 22, 2010 (PR Newswire) — Cimatron Reports Non-GAAP Net Profit of $1 Million in the Fourth Quarter of 2009

GIVAT SHMUEL, Israel, February 22, 2010 /PRNewswire-FirstCall/ — Cimatron Limited (NASDAQ: CIMT) (“Cimatron” or the “Company”), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year 2009.

The following provides details on Cimatron’s GAAP and non-GAAP results for the fourth quarter and full year 2009:

GAAP:

Revenues for the fourth quarter of 2009 were $9.8 million, compared to $10.4 million recorded in the fourth quarter of 2008. In the full year ended December 31, 2009, revenues were $33 million, compared to $41 million in 2008.

Gross Profit for the fourth quarter of 2009 was $8 million as compared to $8.3 million for the same period in 2008. Gross margin in the fourth quarter of 2009 was 82% of revenues, compared to a gross margin of 79% in the fourth quarter of 2008. In 2009, gross profit was $26.8 million, compared to $33.2 million in 2008. Gross margin in 2009 constituted 81% of revenues, reflecting no change relative to 2008.

Operating Profit in the fourth quarter of 2009 was $773 thousand, compared to an operating profit of $652 thousand in the fourth quarter of 2008. In 2009, Cimatron recorded an operating loss of $(957) thousand, compared to an operating profit of $526 thousand in 2008.

Net Profit for the fourth quarter of 2009 was $1.4 million, or $0.15 per diluted share, compared to a net profit of $706 thousand, or $0.08 per diluted share recorded for the same quarter of 2008.

In 2009, net profit was $14 thousand, or $0.00 per diluted share, compared to a net profit of $724 thousand, or $0.08 per diluted share, in 2008.

Non-GAAP:

Revenues on a non-GAAP basis for the fourth quarter of 2009 were $9.8 million, compared to $10.5 million recorded for the fourth quarter of 2008. In the full year ended December 31, 2009, revenues were $33 million, compared to $41.8 million in 2008.

Gross Profit on a non-GAAP basis for the fourth quarter of 2009 was $8.2 million as compared to $8.5 million for the same period in 2008. Gross margin in the fourth quarter of 2009 was 84% of revenues, compared to 81% in the fourth quarter of 2008. In 2009, gross profit on a non-GAAP basis was $27.4 million, compared to $34.6 million in 2008. Gross margin on a non-GAAP basis in 2009 constituted 83% of revenues, reflecting no change relative to 2008.

Operating Profit on a non-GAAP basis in the fourth quarter of 2009 was $1 million, compared to an operating profit of $977 thousand in the fourth quarter of 2008. In 2009, Cimatron recorded an operating profit of $31 thousand, compared to operating profit of $2.3 million in 2008.

Net Profit on a non-GAAP basis for the fourth quarter of 2009 was $955 thousand, or $0.10 per diluted share, compared to net profit of $553 thousand, or $0.06 per diluted share recorded in the same quarter of 2008. In 2009, net profit was $46 thousand, or $0.01 per diluted share, compared to net profit of $2.2 million, or $0.23 per diluted share, in 2008.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said “We are very pleased with the fourth quarter results. The combination of higher revenues (relative to previous quarters in 2009) and continued tight budget control has resulted in a strong bottom line in the fourth quarter, and positive cash flow for the entire year. 2009 was one of the toughest years for our industry, ever. In spite of a steep drop in global demand, we were able to generate a significant amount of cash in 2009, and even show small non-GAAP operating and net profits for the year. We are confident that our strong market position, strong balance sheet, and healthy cash reserves, together with continued investment in marketing and product development, will help us take advantage of new business opportunities. We are witnessing some signs of market recovery, and look forward to a hopefully less turbulent 2010”, concluded Mr. Haran.

Conference Call

Cimatron’s management will host a conference call tomorrow, February 23rd, 2010 at 9:00 EST, 16:00 Israel time. On the call, management will review and discuss the results, and will answer questions by investors.

To participate, please call one of the following teleconferencing numbers. Please begin placing your call at least 5 minutes before the conference call commences.

                              USA: +1-800-994-4498
                          International: +972-3-9180644
                               Israel: 03-9180644

For those unable to listen to the live call, a replay of the call will be available from the day after the call at the investor relations section of Cimatron’s website, at: http://www.cimatron.com

Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income included herein. Non-GAAP financial measures consist of GAAP financial measures adjusted to include recognition of deferred revenues of acquired companies and to exclude amortization of acquired intangible assets and deferred income tax, as well as certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges and other items that are considered by management to be outside our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. We believe that these non-GAAP measures help investors to understand our current and future operating performance, especially as our two most recent acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP results. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Cimatron

With over 25 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers, as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron’s subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.

Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit the company web site at: http://www.cimatron.com.

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act Of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company’s plans, objectives and expected financial and operating results. The words “may,” “could,” “would,” “will,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company’s filings with the Securities and Exchanges Commission. The Company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

                               CIMATRON LIMITED
                       CONSOLIDATED STATEMENTS OF INCOME
             (US Dollars in thousands, except for per share data)

                                 Three months ended      Twelve months ended
                                     December 31,            December 31,
                                  2009        2008        2009        2008

    Total revenue                9,762      10,404      32,957      40,975

    Total cost of revenue        1,719       2,142       6,186       7,769

    Gross profit                 8,043       8,262      26,771      33,206

    Research and development
    expenses, net                1,347       1,657       5,736       6,930

    Selling, general and
    administrative expenses      5,923       5,953      21,992      25,750

    Operating income (loss)        773         652        (957)        526

    Financial income
    (expenses), net.                38        (207)         19         (80)

    Taxes on Income                639         263         949         237

    Other                          (41)          5         (41)          -

    Net income (loss)            1,409         713         (30)        683

    Less: Net loss (gain)
    attributable to the
    noncontrolling interest        (18)      (*)(7)         44       (*)41

    Net income attributable to
    Cimatron's shareholders    $ 1,391       $ 706        $ 14       $ 724

    Net income per share -
    basic and diluted           $ 0.15      $ 0.08      $ 0.00      $ 0.08

    Weighted average number of
    shares outstanding

              Basic EPS
              (in thousands)     9,128       9,274       9,156       9,341

              Diluted EPS
              (in thousands)     9,128       9,274       9,156       9,360

              (*) Reclassification due to the adoption of SFAS 160

                                    CIMATRON LIMITED
                  RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                  (US Dollars in thousands, except for per share data)

                                          Three months ended
                                              December 31,
                                   2009                       2008
                           GAAP     Adj.   NON-GAAP     GAAP   Adj.  NON-GAAP

    Total revenue (1)     9,762       -      9,762    10,404    77    10,481

    Total cost of
    revenue (2)           1,719    (147)     1,572     2,142  (148)    1,994

    Gross profit          8,043     147      8,190     8,262   225     8,487

    Research and
    development expenses,
    net                   1,347       -      1,347     1,657     -     1,657

    Selling, general and
    administrative
    expenses (2)          5,923    (100)     5,823     5,953  (100)    5,853
    Operating income
    (loss)                  773     247      1,020       652   325       977

    Financial income
    (expenses), net.         38       -         38      (207)    -      (207)

    Taxes on Income (3)     639    (726)       (87)      263  (478)     (215)

    Other (4)               (41)     43          2         5     -         5

    Net income (loss)     1,409    (436)       973       713  (153)      560

    Less: Net loss
    (gain) attributable
    to the noncontrolling
    interest                (18)      -        (18)    (*)(7)    -    (*) (7)

    Net income (loss)
    attributable to
    Cimatron's
    shareholders        $ 1,391  $ (436)     $ 955     $ 706 $(153)    $ 553
    Net income per share
    - basic and diluted  $ 0.15             $ 0.10    $ 0.08          $ 0.06

    Weighted average
    number of shares
    outstanding

    Basic EPS
    (in thousands)        9,128              9,128     9,274           9,274

    Diluted EPS
    (in thousands)        9,128              9,128     9,274           9,274

                                         Twelve months ended
                                              December 31,
                                   2009                        2008
                           GAAP     Adj.   NON-GAAP     GAAP    Adj. NON-GAAP

    Total revenue (1)    32,957       -     32,957    40,975    821   41,796

    Total cost of
    revenue (2)           6,186    (588)     5,598     7,769   (588)   7,181

    Gross profit         26,771     588     27,359    33,206  1,409   34,615

    Research and
    development
    expenses, net         5,736       -      5,736     6,930      -    6,930

    Selling, general
    and administrative
    expenses (2)         21,992    (400)    21,592    25,750   (400)  25,350

    Operating income
    (loss)                 (957)    988         31       526  1,809    2,335

    Financial income
    (expenses), net.         19       -         19       (80)     -      (80)

    Taxes on Income (3)     949    (999)       (50)      237   (358)    (121)

    Other (4)               (41)     43          2         -      -        -

    Net income (loss)       (30)     32          2       683  1,451    2,134

    Less: Net loss (gain)
    attributable to the
    noncontrolling interest  44       -         44     (*)41      -    (*)41

    Net income (loss)
    attributable to
    Cimatron's
    shareholders           $ 14    $ 32       $ 46     $ 724 $1,451  $ 2,175

    Net income per share
    - basic and diluted  $ 0.00             $ 0.01    $ 0.08          $ 0.23

    Weighted average
    number of shares
    outstanding

            Basic EPS
           (in thousands) 9,156              9,156     9,341           9,341

            Diluted EPS
           (in thousands) 9,156              9,156     9,360           9,360

    (*) Reclassification due to the adoption of SFAS 160

    (1) Non-GAAP adjustment related to Gibbs' assumed support contracts
        that were not recognized on a GAAP basis in fiscal 2008 or thereafter
        due to business combination accounting rules.
    (2) Non-GAAP adjustment to exclude non-cash amortization of acquired
        intangible assets.
    (3) Non-GAAP adjustment to exclude the effect of deferred taxes.
    (4) Non-GAAP adjustment to exclude loss from discontinued operations.

                           CIMATRON LIMITED
                     CONSOLIDATED BALANCE SHEETS
                      (US Dollars in thousands)

                                                   December 31,  December 31,
                                                          2009          2008

                           ASSETS

    CURRENT ASSETS:
      Total cash, cash equivalents and
      short-term investments                           $ 6,684       $ 5,727
      Trade receivables                                  5,422         7,108
      Other current assets                               3,308         2,697
        Total current assets                            15,414        15,532

        Deposits with insurance companies
        and severance pay fund                           2,935         2,719
        Net property and equipment                       1,046         1,312
        Total other assets                              13,285        14,307
          Total assets                                $ 32,680      $ 33,870

             LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
      Short-term bank credit                             $ 456         $ 155
      Trade payables                                     1,064         1,865
      Accrued expenses and other liabilities             6,991         7,348
      Deferred revenues                                  2,397         2,348
        Total current liabilities                       10,908        11,716

    LONG-TERM LIABILITIES:
      Accrued severance pay                              4,104         3,933
      Long-term loan                                       204           293
      Deferred tax liability                             1,365         1,729
      Total long-term liabilities                        5,673         5,955

      Total shareholders' equity                        16,099     (*)16,199

      Total liabilities and shareholders' equity      $ 32,680      $ 33,870

      (*) Reclassification due to the adoption of SFAS 160

                                CIMATRON LIMITED
                  STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

                             (US Dollars in thousands)

                                                                 Accumulated
                                                    Additional         other
                            Non-controlling   Share    paid-in comprehensive
                                   Interest capital    capital income (loss)
    Balance at
    December 31, 2008                 $ (4)   $ 304   $ 18,131          $ 65

    Changes during the
    twelve months ended
    December 31, 2009:

    Net gain (loss)                    (44)

    Unrealized loss on
    derivative instruments                                               (81)

    Stock option
    compensation                                            73

    Investment in treasury
    stock

    Foreign currency
    translation adjustment                                                91

    Total comprehensive loss

    Balance at
    December 31, 2009                $ (48)   $ 304   $ 18,204          $ 75

                             Retained
                             earnings            Comprehensive         Total
                         (accumulated  Treasury         income  shareholders'
                             deficit)     stock          (loss)       equity
    Balance at
    December 31, 2008       $ (1,908)    $ (389)                    $ 16,199

    Changes during the
    twelve months ended
    December 31, 2009:

    Net gain (loss)               14                       (30)          (30)

    Unrealized loss on
    derivative instruments                                 (81)          (81)

    Stock option
    compensation                                                          73

    Investment in
    treasury stock                         (153)                        (153)

    Foreign currency
    translation adjustment                                  91            91

    Total comprehensive
    loss                                                   (20)

    Balance at
    December 31, 2009        $ (1,894)   $ (542)                    $ 16,099

                              CIMATRON LIMITED
                           STATEMENTS OF CASH FLOWS
                           (US Dollars in thousands)

                                                 Twelve months ended
                                                      December 31,
                                               2009                  2008

    Cash flows from operating activities:

    Net (loss) gain                           $ (30)             (*)$ 683

    Adjustments to reconcile net loss
    to net cash provided by operating
    activities:
    Depreciation and amortization             1,575                 1,584
    Increase in accrued severance pay           138                     4
    Gain from sale of property and
    equipment, net                                -                    (3)
    Stock option compensation                    73                   115
    Loss on disposal of businesses -
    discontinued operations                      43                     -
    Deferred taxes, net                        (984)                 (359)

    Changes in assets and liabilities:
    Increase in accounts receivable and
    prepaid expenses                          1,854                 2,475
    Decrease (increase) in inventory            (15)                   26
    Increase in deposits with insurance
    companies and severance pay fund           (216)                  (16)
    Decrease in trade payables, accrued
    expenses and other liabilities           (1,164)               (1,739)
    Net cash provided by operating
    activities                                1,274                 2,770

    Cash flows from investing activities:
    Proceeds from sale of property and
    equipment                                     -                     2
    Proceeds from sale and redemption of bonds    -                 1,245
    Purchase of property and equipment         (262)                 (438)
    Cash and cash equivalents disposed of
    discontinued operations                     (46)                    -
    Additional payment for acquisition of
    subsidiary                                    -                (1,268)
    Acquisition of newly-consolidated
    subsidiaries (Appendix A)                     -                (4,761)
    Net cash used in investing activities      (308)               (5,220)

    Cash flows from financing activities:
    Short-term bank credit                      301                  (637)
    Long-term bank credit                      (104)                    4
    Proceeds from issuance of shares upon
    exercise of options                           -                    14
    Investment in treasury stock               (153)                 (230)
    Net cash provided (used) in financing
    activities                                   44                  (849)

    Net increase (decrease) in cash and cash
    equivalents                               1,010                 (3,299)
    Effect of exchange rate changes on cash     (53)                     -
    Cash and cash equivalents at beginning of
    period                                    5,727                  9,026
    Cash and cash equivalents at end of
    period                                  $ 6,684                $ 5,727

    Appendix A - Acquisition of subsidiary, net of cash acquired
               Working capital - excluding cash                       (879)
               Goodwill                                              4,035
               Other intangible assets                               5,432
               Property and equipment                                  158
               Tax Asset                                               302
                                                                     9,048

               Issuance of shares                                   (4,287)

                                                                   $ 4,761
    Appendix B - Non-cash transactions
               Purchase of property on credit  $ 10                    $ 5

    (*) Reclassification due to the adoption of SFAS 160
Tuesday, February 23rd, 2010 Uncategorized Comments Off on Cimatron Ltd. (CIMT) Reports Non-GAAP Net Profit of $1 Million in the Fourth Quarter of 2009

Man Sang International (MHJ) Ltd. Subsidiary and China Metro-Rural Limited to Merge

NEW YORK, NY — (Marketwire) — 02/19/10 — Man Sang International (B.V.I.) Limited (NYSE Amex: MHJ) (“MSBVI”) today announced that it and Creative Gains Limited, its wholly owned subsidiary, have entered into a definitive merger agreement with China Metro-Rural Limited (“China Metro”) to combine the companies in an all stock transaction. The transaction is expected to be completed by March 31, 2010. This strategic transaction, unanimously approved by the independent members of the Board of Directors of MSBVI and unanimously approved by the Board of Directors of China Metro, will expand MSBVI’s commercial and real estate portfolio to include properties in New District, Tieling, Liaoning Province in the People’s Republic of China, where China Metro is currently devoted to the development and completion of an integrated, agricultural logistics and multi-functional project, known as China Northeast Logistics City, that will facilitate exhibition, trading, logistics, warehousing, commercial and residential housing in Tieling.

“The combination of MSBVI’s subsidiary and China Metro will further enhance MSBVI’s real estate portfolio and give MSBVI the opportunity to become an integral part of the exciting development that is already in progress in Tieling,” said Cheng Chung Hing, Ricky, President and Chairman of the Board of Directors and Chief Executive Officer of MSBVI. “We believe that China Metro has identified a key niche market and that China Northeast Logistics City is an excellent opportunity to actively expand MSBVI’s overall business in growing North East China while simultaneously popularizing to a worldwide market.”

Under the terms of the merger agreement, China Metro shareholders will receive approximately 574,432 ordinary shares of MSBVI for each ordinary share of China Metro they own. MSBVI will issue up to 57,443,238 ordinary shares at $5 per share (representing a premium of approximately 150% of the closing share price of MSBVI ordinary shares at $2 each on February 18, 2010) to the China Metro shareholders in order to acquire China Metro. This represents a total consideration of approximately $287 million. MSBVI shareholders will retain their shares. Upon completion of the transaction, China Metro shareholders will own approximately 90% of the ordinary shares of MSBVI and MSBVI shareholders will own approximately 10% of the ordinary shares of MSBVI. The $5 per share imputed price is not intended to serve as a projection by MSBVI of the trading price of MSBVI’s ordinary shares upon or immediately following completion of the merger.

MSBVI will maintain its corporate headquarters in Hong Kong and offices and subsidiary operations in the PRC. China Metro will operate as a wholly owned subsidiary of MSBVI and maintain its offices in Hong Kong, as well as its subsidiary operations in the PRC.

Following the close of the transaction, Mr. Cheng Chung Hing, Ricky, MSBVI’s current Chairman, President and Chief Executive Officer, will be the Chairman and President of MSBVI and Mr. Sio Kam Seng, China Metro’s current Chairman and Director, will become Vice Chairman and Chief Executive Officer of MSBVI. In addition, Ms. Leung Wai Yan will join the board of directors of MSBVI. The remaining members of the management team for MSBVI will be comprised of executives from each organization.

The transaction is subject to approval by each of MSBVI’s and China Metro’s shareholders, the approval of the listing of the shares to be issued in the transaction by the NYSE Amex, as well as customary closing conditions. The transaction is expected to be completed by March 31, 2010.

ABOUT MAN SANG INTERNATIONAL (B.V.I.) LIMITED

Man Sang International (B.V.I.) Limited, formerly Man Sang Holdings, Inc., is principally engaged through subsidiaries in the purchasing, processing, assembling, merchandising and wholesale distribution of pearls, pearl jewelry products and jewelry products. In addition, Man Sang International (B.V.I.) Limited, through its subsidiaries, owns and operates commercial real estate for lease and sale in Hong Kong and the People’s Republic of China.

IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION

In connection with the proposed Merger of Creative Gains Limited, a wholly owned subsidiary of MSBVI, and China Metro (the “Merger”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), MSBVI will file with the U.S. Securities and Exchange Commission (the “SEC”) a current report on Form 6-K, which will include a notice of a special meeting at which MSBVI’s shareholders will be asked to, among other things, adopt the Merger Agreement and approve the Merger, and a proxy statement of MSBVI and other relevant materials in connection with the proposed transactions. MSBVI expects to file the Form 6-K with the SEC on or about February 26, 2010 and mail the notice of a special meeting and proxy statement to its shareholders on or about March 2, 2010. The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, which will be included in the proxy statement. MSBVI’s shareholders are urged to read the proxy statement, when it becomes available, because it will contain important information about MSBVI, China Metro and the proposed transactions. The proxy statement and other relevant materials (when they become available), and any and all documents filed with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. Free copies of the documents filed with the SEC by MSBVI will be available on the investor relations portion of MSBVI’s website at http://www.man-sang.com.

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND THE OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTIONS.

Forward-Looking Statements

The information above includes forward-looking statements about Man Sang International (B.V.I.) Limited. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Man Sang International (B.V.I.) Limited from time to time in its filings with the U.S. Securities and Exchange Commission. As a result of these factors, Man Sang International (B.V.I.) Limited’s actual results may differ materially from those indicated or implied by such forward-looking statements. Man Sang International (B.V.I.) Limited disclaims any intent or obligation to update these forward-looking statements.

Monday, February 22nd, 2010 Uncategorized 1 Comment

Deer Consumer Products, Inc. (DEER) Announces Sales Expansion in the China Domestic Markets

Feb. 22, 2010 (PR Newswire) — Deer Consumer Products, Inc. Announces Sales Expansion in the China Domestic Markets

NEW YORK — Deer Consumer Products, Inc. (“Deer”) (Nasdaq: DEER) (website: www.deerinc.com), one of the world’s largest designers and OEM/ODM manufacturers of home and kitchen electronics marketing to both global and Chinese domestic consumers, announced today that Deer has initiated product sales to Wal-Mart Stores in China.

“Deer” branded kitchen electronic products will be immediately available at local Chinese Wal-Mart stores located in the Guangdong province, China’s most economically developed region.

Bill He, Chairman & Chief Executive Officer of Deer commented: “While Deer continues to maintain healthy profit margins across all product lines, we anticipate significant revenue increases through various expanding distribution channels in the China domestic markets. Deer’s fully integrated model of aligning product design, internal manufacturing and quality control, supply chain and customers has helped establish Deer as an effective distribution platform for expanded product offerings in China’s fast growing small household appliance industry. We look forward to reporting our 2009 annual results by mid March of 2010.”

About Deer Consumer Products, Inc.

Deer Consumer Products, Inc. (www.deerinc.com) is a NASDAQ Global Market listed U.S. public company headquartered in China. Deer has a 15-year operating business. Supported by more than 103 patents, trademarks, copyrights and approximately 2,000 company-trained seasonal and full-time staff, Deer is a leading designer, ODM/OEM manufacturer and global marketer of quality small home and kitchen electric appliances. Deer’s product lines include blenders, juicers, soy milk makers and a large variety of other home appliances designed to make today’s lifestyles simpler and healthier. With more than 100 global clients/branded products such as Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics and Wal-Mart, Deer has enjoyed rapid sales and earnings growth in recent years.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company’s expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer’s filings with the Securities and Exchange Commission.

Monday, February 22nd, 2010 Uncategorized Comments Off on Deer Consumer Products, Inc. (DEER) Announces Sales Expansion in the China Domestic Markets

TowerJazz (TSEM) Rolls Out Full Library of Patented Y-Flash Non-Volatile Memory Blocks

Feb. 22, 2010 (Business Wire) — TowerJazz, the global specialty foundry leader, today announced its full library of Y-Flash Non-Volatile Memory (NVM) building blocks at the Applied Power Electronics Conference (APEC), Booth #413, in Palm Springs, Calif., Feb. 22-24, 2010. This patented Y-Flash technology, not available from any other foundry in the industry, is designed to give customers flexibility on memory size, allowing optimization of performance/cost for any given application. TowerJazz invented its Y-Flash building blocks to meet the ever expanding customer needs for NVM in today’s power supplies for consumer, medical, industrial and automotive applications. VDC Research forecasts worldwide shipment of power management ICs to grow more than 10% annually through 2012.

Y-Flash is the leading solution for NVM in the market today due to its small cell size, zero mask adder and flexibility to implement various memory sizes. Current competing NVM solutions for medium density memories add 11 or more masks to the process flow, over the standard ~20 masks, making it impossible to have a one-chip solution for digital power management. Y-Flash can support a variety of memory densities from a few bits for trimming and chip ID applications up to 256Kb and more for code storage. NVM blocks that utilize this proprietary technology include array sizes that are up to five times smaller than other competitive solutions and can be built using only one gate oxide allowing for ultra low cost designs. Y-Flash is well-suited for applications such as digital controlled power, portable products and products requiring very tight and well matched IOs.

TowerJazz’s Y-Flash module was recently integrated into Exar Corporation’s latest digital power management design, and Richard Randlett, Division Vice President, Advanced Analog Design, commented, “TowerJazz has long experience and expertise in NVM technology and is well known in the industry and highly appreciated by Exar. We will definitely gain a great deal by using this technology in our new line of digital power products.”

“Our new Y-Flash memory blocks are an industry leading solution for NVM technology and further validate our business strategy and commitment to providing the most complete power management platform in the industry,” said Dr. Avi Strum, Vice President and General Manager, Specialty Business Unit at TowerJazz. “We developed this proprietary technology to further enhance our power management offerings, allowing for faster design cycles and lower cost designs for the emerging digital power applications.”

Availability

The Y-Flash IP is available in the TS35PM/TS18PM design kits. This IP combined with TowerJazz’s continuously customizable LDMOS from 20V to 80V process provides design flexibility and optimization demanded by today’s power management ICs.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ: TSEM) (TASE: TSEM), the global specialty foundry leader, and its fully owned U.S. subsidiary Jazz Semiconductor, operate collectively under the brand name TowerJazz, manufacturing integrated circuits with geometries ranging from 1.0 to 0.13-micron. TowerJazz provides industry leading design enablement tools to allow complex designs to be achieved quickly and more accurately and offers a broad range of customizable process technologies including SiGe, BiCMOS, Mixed-Signal and RFCMOS, CMOS Image Sensor, Power Management (BCD), and Non-Volatile Memory (NVM) as well as MEMS capabilities. To provide world-class customer service, TowerJazz maintains two manufacturing facilities in Israel and one in the U.S. with additional capacity available in China through manufacturing partnerships. For more information, please visit www.towerjazz.com.

Safe Harbor Regarding Forward-Looking Statements

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect Tower and/or Jazz’s business is included under the heading “Risk Factors” in Tower’s most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority and Jazz’s most recent filings on Forms 10-K and 10-Q, as were filed with the SEC, respectively. Tower and Jazz do not intend to update, and expressly disclaim any obligation to update, the information contained in this release.

Monday, February 22nd, 2010 Uncategorized Comments Off on TowerJazz (TSEM) Rolls Out Full Library of Patented Y-Flash Non-Volatile Memory Blocks

Green Plains Renewable Energy, Inc. (GPRE) Reports Fourth Quarter and Year-End 2009 Results

Feb. 22, 2010 (GlobeNewswire) —

Results for the Fourth Quarter of 2009

  • Net income of $23.1 million
  • Diluted earnings per share of $0.91

Results for the Full Year of 2009

  • Net income of $19.8 million
  • Diluted earnings per share of $0.79

OMAHA, Neb., Feb. 22, 2010 (GLOBE NEWSWIRE) — Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today its financial results for the fourth quarter and full-year ended December 31, 2009. Net income attributable to Green Plains was $23.1 million, or $0.91 per diluted share, for the quarter ended December 31, 2009, compared to a net loss attributable to Green Plains of $1.8 million, or $0.08 per share, for the same period of 2008. Revenues were $436.7 million for the fourth quarter of 2009, compared to revenues of $183.2 million for the same period in 2008. For the twelve months ended December 31, 2009, revenues were $1.3 billion, with net income attributable to Green Plains of $19.8 million, or $0.79 per diluted share.

“All of our businesses performed well in the fourth quarter,” said Todd Becker, President and Chief Executive Officer. “We generated significantly higher operating income during the quarter primarily due to a strong performance from our ethanol production segment. In the fourth quarter, we produced 122 million gallons of ethanol which exceeds our expected capacity. The combination of higher production volumes, a stronger margin environment, and harvest activities for agribusiness resulted in a record quarter.”

“During 2009 and more recently, we have continued to see demand for ethanol increase driven by expanded mandates and positive blend margins.  This combined with a record corn harvest resulted in an improved margin environment in late 2009 and early 2010. While we are pleased with these trends, our focus remains on risk management, operational excellence, safety and expanding our platform in the coming year as opportunities present themselves,” commented Becker.

“I am proud of the many accomplishments our team achieved during 2009. We fortified our operating, administrative and commercial activities while at the same time demonstrated our ability to significantly grow our operating segments. Our business model has been tested through one of the most challenging environments the ethanol industry has seen and continues to prove itself. As a result, we were able to reach profitability for the full year. We believe our industry, and more importantly, our company is on solid footing for the coming years,” said Becker.

EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $37.8 million for the quarter ended December 31, 2009, compared with $6.5 million for the same period in 2008. Green Plains had available liquidity of $138.7 million, including $102.3 million total cash and equivalents, and $36.4 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at December 31, 2009. EBITDA for the twelve months ended December 31, 2009 was $67.7 million.

2009 Business Highlights

  • On October 14, 2009, Green Plains unveiled BioProcessAlgae, LLC’s Phase I Grower Harvester TM pilot project. BioProcessAlgae has completed the installation of Phase I of the multi-phase pilot project and algae production has commenced at the company’s Shenandoah ethanol plant.
  • Green Plains Trade Group LLC, a wholly-owned subsidiary, entered into an agreement to provide third-party ethanol marketing services to Lincolnway Energy, LLC at the end of the third quarter. The addition of Lincolnway, located near Nevada, Iowa, increased our third-party marketing services to four plants with annual expected ethanol production totaling 360 million gallons.
  • On July 2, 2009, Green Plains completed the acquisition of two Nebraska ethanol plants located near Central City and Ord. The addition of these plants increased the company’s expected ethanol production capacity by 45%. Green Plains acquired the ethanol plants from a lender group for $121.0 million which provided debt financing to fund the purchases.
  • On January 15, 2009, Green Plains Trade entered into an agreement to provide third-party ethanol marketing services to Bushmills Ethanol, Inc. of Atwater, Minnesota.
  • Green Plains acquired majority interest in Houston-based biofuel terminal operator Blendstar, LLC as of January 1, 2009. The transaction involved a membership interest purchase whereby Green Plains acquired 51% of Blendstar for $8.9 million. Blendstar currently operates nine blending and terminaling facilities in the south central United States.

Conference Call

On February 22, 2010, Green Plains will hold a conference call to discuss its financial results for the fourth quarter and full-year ended December 31, 2009. Green Plains’ participants will include Todd Becker, President and Chief Executive Officer, Jerry Peters, Chief Financial Officer and Steve Bleyl, Executive Vice President – Ethanol Marketing. The time of the call is 11:00 a.m. ET / 10:00 a.m. CT. To participate by telephone, the domestic dial-in number is 877-868-1833 and the international dial-in number is 914-495-8604. The conference call will be webcast and accessible at www.gpreinc.com. Listeners are advised to go to the website at least 10 minutes prior to the call to register, download and install any necessary audio software. The conference call will also be archived and available for replay through March 8, 2010.

About Green Plains Renewable Energy, Inc.

Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) is North America’s fourth largest ethanol producer, operating a total of six ethanol plants in Indiana, Iowa, Nebraska and Tennessee with annual expected operating capacity totaling approximately 480 million gallons. Green Plains also markets and distributes ethanol for four third-party ethanol producers with annual expected operating capacity totaling approximately 360 million gallons. Green Plains owns 51% of Blendstar, LLC, a biofuel terminal operator which operates nine blending or terminaling facilities with approximately 495 million gallons per year of total throughput capacity in seven states in the south central United States. Green Plains operates grain storage facilities and complementary agronomy and petroleum businesses in northern Iowa and southern Minnesota.

Safe Harbor

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements are identified by the use of words such as “anticipates,” “estimates,” “expects,” “will,” “predicts,” “intends,” “plans,” “believes,” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such statements are based on management’s current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. Green Plains may experience significant fluctuations in future operating results due to a number of economic conditions, including, but not limited to, competition in the ethanol and other industries in which the company competes; commodity market risks, financial market risks, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in the company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-KT/A and any amendments thereto for the nine-month transition period ended December 31, 2008 and in the company’s subsequent filings with the SEC. Green Plains assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The cautionary statements in this report expressly qualify all of our forward-looking statements. In addition, the company is not obligated, and does not intend, to update any of its forward-looking statements at any time unless an update is required by applicable securities laws.

Consolidated Financial Results

The following are our consolidated statements of operations (in thousands, except per share amounts):

Three Months Ended

December 31,

Year Ended

December 31,

Nine-Month

Transition Period

Ended December 31,

2009 2008 2009 2008
Revenues $436,714 $183,221 $1,304,174 $188,758
Cost of goods sold 392,449 167,898 1,221,745 175,444
Gross profit 44,265 15,323 82,429 13,314
Selling, general and administrative expenses 14,501 14,444 44,923 18,467
Operating income (loss) 29,763 879 37,506 (5,153)
Other income (expense)
Interest income 80 121 225 150
Interest expense, net of
amounts capitalized (6,048) (3,871) (18,049) (3,933)
Other, net (197) 783 563 887
Total other income (expense) (6,165) (2,967) (17,261) (2,896)
Income (loss) before income taxes 23,598 (2,088) 20,245 (8,049)
Income tax provision 280 91
Net income (loss) 23,318 (2,088) 20,154 (8,049)
Net (income) loss attributable to
noncontrolling interests (268) 239 (364) 1,152
Net income (loss) attributable to Green Plains $23,050 $(1,849) $19,790 $ (6,897)
Earnings (loss) per share:
Basic $0.92 $(0.08) $0.79 $(0.56)
Diluted $0.91 $(0.08) $0.79 $(0.56)
Weighted average shares outstanding:
Basic 24,930 22,048 24,895 12,366
Diluted 25,313 22,048 25,069 12,366

The merger with VBV, the startup of our Bluffton and Obion plants, the acquisition of Blendstar and the acquisitions of our Central City and Ord ethanol plants affected comparability of results for the periods presented. The nine-month transition period reflects only the activity for VBV prior to the merger on October 15, 2008, and the results of the combined entity for the period following the merger through December 31, 2008. As a result, the nine-month transition period includes less than four months of activity at our Bluffton ethanol plant, along with the results of our Shenandoah and Superior ethanol plants and Green Plains Grain from October 15, 2008 to the end of the year, and less than two months of activity at our Obion ethanol plant. The year ended December 31, 2009 includes a full year of activity at our Bluffton, Obion, Shenandoah and Superior ethanol plants, as well as at Green Plains Grain and Blendstar, and approximately five months of activity at our Central City and Ord ethanol plants. Similarly, the comparison of the fourth quarter of 2009 to the fourth quarter of 2008 are affected by the timing of the above mentioned plant startups and acquisitions.

The events described above account for most of the overall increase in revenues of $253.5 million, the increase in gross profit of $28.9 million and the increase in operating income of $28.9 million when the fourth quarter of 2009 is compared with the same period of 2008. Interest expense increased $2.2 million for the fourth quarter of 2009 as compared to the same quarterly period in 2008, due to interest expense relating to businesses developed or acquired. Income tax expense was $0.3 million during the quarter ended December 31, 2009. Current period income tax expense reflected a tax benefit for the reversal of a valuation allowance for deferred tax assets established in prior periods due to the uncertainty of realizing these assets. At December 31, 2009, Green Plains had approximately $5.1 million in valuation allowances remaining for federal deferred tax assets which may be available to reduce future income tax expense.

Operating Segment Information

Green Plains’ operating segments are as follows: (1) production of ethanol and related co-products (collectively referred to as “ethanol production”); (2) grain warehousing and marketing, as well as sales and related services of agronomy and petroleum products (collectively referred to as “agribusiness”); and (3) marketing and distribution of company-produced and third-party ethanol and distillers grains (collectively referred to as “marketing and distribution”). Corporate operating expenses not directly related to a specific operating segment are reflected in the table below as “corporate activities.”

The following are revenues, gross profit and operating income by segment for the periods indicated (in thousands):

Three Months Ended Three Months Ended Year Ended
December 31, 2009 December 31, 2008 December 31, 2009
Revenues
Ethanol production $235,888 $131,114 $731,253
Agribusiness 71,068 68,785 220,615
Marketing and distribution 368,615 71,408 1,096,091
Intersegment eliminations (238,857) (88,086) (743,785)
Total revenues $436,714 $183,221 $1,304,174
Gross profit
Ethanol production 31,121 6,674 49,155
Agribusiness 9,245 8,554 21,210
Marketing and distribution 3,904 192 11,975
Intersegment eliminations (5) (97) 89
Total gross profit $44,265 $15,323 $82,429
Operating income (loss)
Ethanol production $28,653 $11 $40,435
Agribusiness 4,592 5,310 7,654
Marketing and distribution 1,524 (48) 2,761
Intersegment eliminations (9) (97) 85
Segment operating income 34,760 5,176 50,935
Corporate activities (4,996) (4,297) (13,429)
Total operating income $29,763 $879 $37,506

Intersegment revenues and corresponding costs were eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current presentation.

Ethanol Production Segment

The chart below presents key operating data within our ethanol production segment for the periods indicated:

Three Months Ended Three Months Ended Year Ended
December 31, 2009 December 31, 2008 December 31, 2009
Ethanol sold 121,794 61,547 379,393
(thousands of gallons)
Distillers grains sold 353 174 1,098
(thousands of equivalent dried tons)
Corn consumed 43,930 23,169 136,569
(thousands of bushels)

Revenues for the ethanol production segment increased $104.8 million to $235.9 million for the quarter ended December 31, 2009. The company sold 121.8 million gallons of ethanol within the ethanol production segment during the quarter, an increase of 60.2 million gallons over the same period of 2008. This increase is primarily due to the commencement of production at certain ethanol plants and several acquisitions summarized above. Ethanol production during the fourth quarter of 2009 represented 101% of the company’s average daily operating capacity.

Cost of goods sold in the ethanol production segment during the quarter ended December 31, 2009 increased $80.3 million to $204.8 million. This increase was primarily due to the consumption of 20.8 million more bushels of corn during the fourth quarter of 2009 when compared to the same period in 2008. Operating income for the quarter ended December 31, 2009 increased by $28.6 million from breakeven during the same quarter of 2008. The improvement in operating income was a result of improved margins and higher production volumes as mentioned above. Depreciation and amortization expense for the ethanol production segment was $7.9 million during the fourth quarter of 2009 compared to $6.1 million during the same period of 2008.

The following chart summarizes the approximate percentage of forecasted production or usage, as applicable, for the next 12 months under fixed-price contracts as of December 31, 2009:

Portion Subject to

Fixed-Price Contracts

Ethanol Production 15%
Distillers Grains Production 19%
Corn Usage 16%
Natural Gas Usage 15%

Agribusiness Segment

The agribusiness segment revenues increased $2.3 million to $71.1 million for the quarter ended December 31, 2009. The company sold 10.5 million bushels of grain and 22.8 thousand tons of fertilizer during the fourth quarter of 2009. Cost of goods sold in the agribusiness segment during the quarter ended December 31, 2009 was $61.9 million, an increase of $1.6 million over the same period of 2008. Operating income was $4.6 million during the quarter ended December 31, 2009, compared to operating income of $5.3 million during the same period of 2008.

Marketing and Distribution Segment

Revenues of the marketing and distribution segment increased $297.2 million to $368.6 million during the quarter ended December 31, 2009 when compared to the same period of 2008. The increase is driven by the volumes marketed from our ethanol production segment as well as production from the third-party plants. The company sold 186.8 million gallons of ethanol within the marketing and distribution segment during the quarter ended December 31, 2009, compared to 61.6 million gallons sold during the same period of 2008. Operating income was $1.5 million during the quarter ended December 31, 2009 compared to a slight loss during the same period of 2008.

EBITDA

Management uses EBITDA to compare the financial performance of its business segments and to internally manage those segments. Management believes that EBITDA provides useful information to investors as a measure of comparison with peer and other companies. EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with generally accepted accounting principles. EBITDA calculations may vary from company to company. Accordingly, our computation of EBITDA may not be comparable with a similarly-titled measure of another company. The following sets forth the reconciliation of net income attributable to Green Plains to EBITDA for the periods indicated (in thousands):

Three Months Ended Three Months Ended Year Ended
December 31, 2009 December 31, 2008 December 31, 2009
Net income (loss) attributable
to Green Plains $23,050 $(1,849) $19,790
Net (income) loss attributable
to noncontrolling interests 268 (239) 364
Interest expense 6,048 3,871 18,049
Income taxes 280 91
Depreciation and amortization 8,151 4,675 29,414
EBITDA $37,797 $6,458 $67,708

Summary Balance Sheets

The following is condensed consolidated balance sheet information (in thousands):

December 31, December 31,
2009 2008
ASSETS
Current assets $252,446 $190,655
Property and equipment, net 596,235 495,772
Other assets 29,400 6,694
Total assets $878,081 $693,121
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities $174,332 $108,304
Long-term debt 388,573 299,011
Other liabilities 4,468 5,821
Total liabilities 567,373 413,136
Total stockholders’ equity 310,708 279,985
Total liabilities and stockholders’ equity $878,081 $693,121

At December 31, 2009, Green Plains had $102.3 million in total cash and equivalents and $36.4 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants). Green Plains had total assets of approximately $878.1 million and total stockholders’ equity of approximately $310.7 million. As of December 31, 2009, Green Plains had approximately 25.0 million common shares outstanding.

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SinoCoking (SCOK) Provides Update on Coal Mining Sector Consolidation in Henan Province

Feb. 19, 2010 (Business Wire) — SinoCoking Coal and Coke Chemical Industries, Inc. (NASDAQ:SCOK) (the “Company” or “SinoCoking”) today announced its plans to consolidate local area coal mines as a part of the government-directed consolidation of the coal mining industry in the Pindingshan region of Henan Province, China.

According to government sources, Henan province in central China is in the process of consolidating coal mines with a production capacity below 300,000 tons per year, and will only approve new mines with an output capacity of at least 450,000 tons per year. The Henan plan is a part of a general policy in China to consolidate its coal industry in order to improve production efficiency and reduce coal mine accidents. The plan is modeled after a pilot consolidation program in Shanxi province that was conducted last year. In 2009, Shanxi province, one of the nation’s key coal-producing regions, reduced the total number of its coal mines to 1,053 from 2,600 after consolidating all coal mines with a production capacity below 300,000 tons per year. The consolidation also caused coal output in Shanxi to decline by 6% in 2009. Smaller coal mines reportedly make up approximately one-third of China’s total coal output.

SinoCoking is a supplier of the vital commodities of thermal and metallurgical coal and coke to industrial users such as power plants, steel mills, plant and factory operators and manufacturers in China. The Company is a vertically-integrated processor that uses coal from both its own mines and that of third-party mines to provide basic and value-added coal products to its customer base. Excluding any of its planned acquisitions, SinoCoking currently holds mining rights to extract 300,000 tons of coal per year from mines located in the Henan Province in central China. SinoCoking began producing metallurgical coke in 2002, and since then has expanded its production to become an important supplier to regional steel producers in central China.

“The coking coal produced in the Pingdingshan region has particularly high agglutinating value combined with low levels of ash, sulfur and phosphor, which sets our region’s coal resources apart from other coal-producing provinces in China,” said Jianhua Lv, the Chief Executive Officer of SinoCoking. “In order to increase our annual coke production and ensure a steady supply of raw material for our coke chemical projects, SinoCoking intends to make acquisitions of local mining operations that will increase the total reserves directly available to the company. While we have engaged in preliminary dialogues with acquisition targets over the past couple of years, we believe the government’s imperative for consolidation of the coal mining sector this year has now come to fruition, and this creates acquisition opportunities for us that are strategically and financially compelling.”

SinoCoking has entered into discussions with ten distinct private companies in the region, and intends to acquire a majority interest in each of these companies, or their mining assets, within the next six months. The target companies are:

  • Baofeng Yuxiang Coal Ltd., based in Qingliangsi Village of Daying town in Baofeng County;
  • Baofeng Xingsheng Coal Ltd., based in Zhaozhuang Village of Daying town in Baofeng County;
  • Pingdingshan Shilong Zhaoling Industries Coal Ltd., based in Zhaoling Village in the Shilong area of Pingdingshan;
  • Pingdingshan Shilong Yuantong Coal Ltd., based in Dazhuang Village in the Shilong area of Pingdingshan;
  • Pingdingshan Shilong Tianyuan Coal Ltd., based in Nanzhangzhuang Village in the Shilong area of Pingdingshan;
  • Ruzhou Changsheng Coal Ltd., based in Fangwan Village of Xiaotun Town of Ruzhou;
  • Baofeng Hongjiu Coal Ltd., based in Yudong Village of Zhouzhuang Town in Baofeng County;
  • Baofeng Zhouzhuang Dinglou Dongfang Coal Ltd., based in Dazhuang Village in the Shilong area of Pingdingshan;
  • Ruzhou Xiaotun Jialingnan Coal Ltd., based in Jialing Village of Xiaotun Town of Ruzhou; and
  • Baofeng Shuangrui Coal Ltd., based in Liping Village of Daying Town in Baofeng County.

The aggregate licensed production capacity of the mines operated by these target companies is 1.5 million metric tons per year. In addition, the aggregate coal reserves of these companies is estimated to be 25 million metric tons, based on Chinese geological standards. The Company is conducting its own due diligence investigation of each prospective target.

“The opportunities presented to SinoCoking by these potential acquisitions extend beyond their licensed production capacity or reserves,” Mr. Lv added. “Assuming we can complete most if not all of the acquisitions we described in today’s announcement, SinoCoking would then directly control all of the feedstock that is necessary for both our current and planned coke manufacturing facilities. As a result, this vertical integration is expected to enable us to achieve significantly higher profit margins than previously anticipated. In the past, we relied heavily on washed coal produced by third parties for our coking feedstock.”

SinoCoking believes it can acquire each of these targets at an attractive purchase price and without the need for significant outside capital, using internally-generated cash flow and its own common stock, noting that the target companies are required to either agree to consolidate or face government-mandated closure. SinoCoking also noted that its acquisition opportunities are only one element of its expansion plan, and that SinoCoking remains focused on the financing and construction of its newly planned state-of-the-art coking plant with an expected production capacity of 900,000 metric tons per year.

“The moment has now arrived for the inevitable consolidation of the coal mining sector in Henan province, and we believe SinoCoking is very well-positioned to benefit from this consolidation,” Mr. Lv stated. “Our company is a profitable, efficient operator, with a strong record in worker safety, and a vertically-integrated business model that produces important coal products in an environmentally-conscious manner. Our common stock is listed on NASDAQ in the U.S., offering our shareholders access to liquidity while providing us an important source of currency to pursue our acquisition program. While we cannot predict with certainty the outcome of these negotiations, we are committed to prudently pursuing any opportunity that enables SinoCoking to better serve our customers, reduce our production costs and fortify our business model while creating incremental value for our shareholders. I look forward to providing updates to our shareholders of tangible progress towards these goals.”

About SinoCoking

SinoCoking Coal and Coke Chemical Industries, Inc., a Florida corporation (NASDAQ: SCOK) is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking currently holds mining rights to extract 300,000 tons of coal per year from mines located in the Henan Province in central China. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking, a Florida corporation, owns its assets and conducts its operations through its subsidiaries, Top Favour Limited, a British Virgin Islands holding company, Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd. (“Hongyuan”), Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd. (“Hongli”), Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd. and Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd.

For further information about SinoCoking, please refer to the Definitive Proxy Statement of the Company (previously named Ableauctions.com, Inc.) filed on Schedule 14A with the Securities and Exchange Commission on November 27, 2009.

This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company’s financial position and business strategy. The words or phrases “plans”, “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company’s expectations and estimates. The Company provides no assurances that any potential acquisitions will actually be consummated, or if consummated that such acquisitions will be on terms and conditions anticipated on the date of this press release, and the Company makes no assurances with regard to any results of any such acquisitions.

Monday, February 22nd, 2010 Uncategorized Comments Off on SinoCoking (SCOK) Provides Update on Coal Mining Sector Consolidation in Henan Province

InfoLogix (IFLG) Joins Industry Leaders Presenting at SAP Insider’s Conference

Feb. 19, 2010 (PR Newswire) — InfoLogix Joins Industry Leaders Presenting at SAP Insider’s Logistics and Supply Chain Management Conference in Orlando, Feb 22-26, 2010

HATBORO, Pa. — InfoLogix, Inc. (Nasdaq: IFLG), a leading technology provider of enterprise mobility solutions for the healthcare and commercial industries, announced today that it will be presenting and exhibiting at the SAP Insider Logistics and Supply Chain Conference in Orlando, Florida on February 22-26, 2010.

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As a rapidly rising leader in SAP® supply chain execution and mobility solutions, InfoLogix will be delivering a three-hour “jumpstart” session on Monday, February 22 from 9:00-12:00 EST, placing InfoLogix among an elite group of thought leaders from SAP, eBay, IBM Global Business Services and PricewaterhouseCoopers that will be kicking off the conference.  InfoLogix will present “A Comprehensive Guide to Warehouse Management Functionality from SAP” from 9:00-12:00 on Monday, February 22.  More information on the conference session is available at: http://www.scm2010.com/session.cfm?id=3893.

“In a very short span, InfoLogix has become a specialized leader in SAP supply chain execution and implementation services that deliver increased supply chain velocity and efficiencies across the enterprise,” says Brian Thorn, Senior Vice President of Enterprise Solutions at InfoLogix.  “It’s an honor to be recognized among the key organizations in the space, as we continue to help customers boost the performance of their external and internal supply chain operations.”

InfoLogix’s SAP consultants will also be available for discussion at Booth #210 during regular show hours from Tuesday, February 23rd through Thursday, February 25th.

Discounted registration for InfoLogix customers is available at http://www.sapinsidervendors.com/eventRegistration.aspx?vendorId=Infologix2010. For more information on InfoLogix’s solutions, or to reserve a meeting with one of our SAP consultants, please visit www.infologix.com/enterprise.

About InfoLogix, Inc.

InfoLogix is a leading provider of enterprise mobility solutions for the healthcare and commercial industries. InfoLogix uses the industry’s most advanced technologies to increase the efficiency, accuracy, and transparency of complex business and clinical processes. With 19 issued patents, InfoLogix provides mobile managed solutions, on-demand software applications, mobile infrastructure products, and strategic consulting services to over 2,000 clients in North America including Kraft Foods, Merck and Company, General Electric, Kaiser Permanente, MultiCare Health System and Stanford School of Medicine. InfoLogix is a publicly-traded company (Nasdaq: IFLG). For more information visit www.infologix.com.

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Neuralstem (CUR) Completes $5.25 Million Financing

Press Release Source: Neuralstem, Inc. On Thursday February 18, 2010, 1:40 pm EST

ROCKVILLE, Md., Feb. 18 /PRNewswire-FirstCall/ — Neuralstem, Inc. (NYSE AMEX: CUR) announced today that it has raised a total of $5,228,000 since the beginning of the year, comprised of a previously disclosed $1.5 million private placement of 646,551 common shares at $2.32, priced at a 30 percent premium over the market on the closing, and approximately $3.7 million from warrant exercises.

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Neuralstem also is pleased to announce that it received notice from the NYSE Amex that the Company is now in compliance with its listing requirements.

“These funds will help to support the development of our stem cell technology, including our ongoing clinical trial at Emory University,” stated Richard Garr, President and CEO of Neuralstem. “We are also pleased that the NYSE Amex has recognized the improvement in Neuralstem’s financial position.”

About Neuralstem, Inc.

Neuralstem’s patented technology enables, for the first time, the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities, and the ability to control the differentiation of these cells into mature, physiologically relevant human neurons and glia. The company is targeting major central nervous system diseases including: Ischemic Spastic Paraplegia, Traumatic Spinal Cord Injury, Huntington‘s disease and Amyotrophic Lateral Sclerosis (ALS), often referred to as Lou Gehrig‘s disease. ALS is a progressive fatal neurodegenerative disease that affects nerve cells in the brain, leading to the degeneration and death of the motor neurons in the spinal cord that control muscle movement. Pre-clinical work has shown that Neuralstem’s cells extended the life of rats with ALS (as reported in the journal TRANSPLANTATION, October 16, 2006, in collaboration with Johns Hopkins University researchers), and also reversed paralysis in rats with Ischemic Spastic Paraplegia (as reported in NEUROSCIENCE, June 29, 2007, in collaboration with researchers at University of California San Diego).

Cautionary Statement Regarding Forward Looking Information

This news release may contain forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements in this press release regarding potential applications of Neuralstem’s technologies constitute forward-looking statements that involve risks and uncertainties, including, without limitation, risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward- looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Neuralstem’s periodic reports, including the annual report on Form 10-K for the year ended December 31, 2008 and the quarterly report on form 10-Q for the period ended September 30, 2009.

Friday, February 19th, 2010 Uncategorized Comments Off on Neuralstem (CUR) Completes $5.25 Million Financing