Archive for July, 2013

(MTEX) Reports Second Quarter 2013 Financial Results

Mannatech, Incorporated (NASDAQ: MTEX), a leading developer and provider of nutritional supplements and skin care products based on Real Food Technology® solutions, today reported a net income of $0.8 million, or $0.30 per diluted share, for the second quarter ending June 30, 2013, as compared to a net loss of $2.5 million, or $0.93 per diluted share, for the second quarter of 2012. Net sales for the second quarter of 2013 were $44.8 million, an increase of 2.7% as compared to $43.6 million in the second quarter of 2012.

Net sales for North America declined 6.6% to $21.3 million as compared to $22.8 million in the second quarter of 2012. This decline in revenue was primarily due to a decrease in the revenue generated per active associate and member.

Net sales for Asia/Pacific increased 17.1% to $19.9 million as compared to $17.0 million in the second quarter 2012 due to an increase in the number of active associates. This increase in revenue was due to an increase in the number of active associates and members and an increase in the revenue generated per active associate and member.

Net sales for Europe, the Middle East and Africa (“EMEA”) declined 5.2% to $3.6 million as compared to $3.8 million in the second quarter of 2012. This decline was due to the unfavorable impact on net sales of fluctuations in foreign currency exchange rates.

Recruiting increased 31.2% in the second quarter 2013 as compared to the second quarter of 2012. The number of new independent associates and members for the second quarter of 2013 was approximately 36,200, as compared to 27,600 in 2012. The total number of independent associates and members based on a 12-month trailing period was approximately 240,000 as of June 30, 2013, as compared to 230,000 as of June 30, 2012.

Dr. Robert Sinnott, CEO & Chief Science Officer, commented, “We are optimistic the business climate will continue to improve. The net increase in active associates and members appears to be reversing the sales trend and our continual improvement in operating efficiencies is producing profit as well as positive cash flow.”

Mannatech will host a conference call to discuss the quarter’s results with investors on Wednesday, August 7, 2013 at 9 a.m. CDT, 10 a.m. EDT. The live call will be webcast and can be accessed on Mannatech’s website at http://ir.mannatech.com.

For those unable to listen to the live broadcast, a replay will be available shortly after the call. The toll-free replay number is (855) 859-2056 (International (404) 537-3406); the Conference ID to access the call is 25004753.

Individuals interested in Mannatech’s products or in exploring its business opportunity can learn more at Mannatech.com.

CONSOLIDATED BALANCE SHEETS – (UNAUDITED)(in thousands, except share and per share amounts)
June 30,
2013
December 31,
2012
ASSETS (unaudited)
Cash and cash equivalents $ 17,787 $ 14,377
Restricted cash 1,513 1,515
Accounts receivable, net of allowance of $89 and $20 in 2013 and 2012, respectively 246 324
Income tax receivable 19 884
Inventories, net 14,165 15,154
Prepaid expenses and other current assets 3,045 2,487
Deferred tax assets 578 561
Total current assets 37,353 35,302
Property and equipment, net 3,832 4,825
Construction in progress 8
Long-term restricted cash 4,231 3,736
Other assets 2,942 3,187
Long-term deferred tax assets 621 502
Total assets $ 48,979 $ 47,560
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current portion of capital leases $ 906 $ 780
Accounts payable 5,719 4,154
Accrued expenses 7,411 6,348
Commissions and incentives payable 6,235 7,373
Taxes payable 3,684 3,901
Current deferred tax liability 271 179
Deferred revenue 1,504 1,486
Total current liabilities 25,730 24,221
Capital leases, excluding current portion 700 938
Long-term deferred tax liabilities 7 2
Other long-term liabilities 1,679 2,178
Total liabilities 28,116 27,339
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,768,972 shares issued and 2,647,735 shares outstanding
Additional paid-in capital 42,626 42,614
Accumulated deficit (5,492 ) (6,920 )
Accumulated other comprehensive loss (1,475 ) (677 )
Less treasury stock, at cost, 121,237 shares in 2013 and 2012 (14,796 ) (14,796 )
Total shareholders’ equity 20,863 20,221
Total liabilities and shareholders’ equity $ 48,979 $ 47,560
CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED)   (in thousands, except per share information)
Three months ended
June 30,
Six months ended
June 30,
2013 2012 2013 2012
Net sales $ 44,801 $ 43,611 $ 86,467 $ 88,113
Cost of sales 8,694 8,852 16,391 17,127
Gross profit 36,107 34,759 70,076 70,986
Operating expenses:
Commissions and incentives 19,181 18,637 36,722 37,622
Selling and administrative 8,541 9,945 17,172 19,600
Depreciation and amortization 588 921 1,225 3,379
Other operating costs 6,247 6,662 12,752 13,847
Total operating expenses 34,557 36,165 67,871 74,448
Income (loss) from operations 1,550 (1,406 ) 2,205 (3,462 )
Interest income (expense) 17 21 4 (32 )
Other income (expense), net (1,420 ) (805 ) (1,003 ) 87
Income (loss) before income taxes 147 (2,190 ) 1,206 (3,407 )
Provision for income taxes 637 (265 ) 222 (448 )
Net income (loss) $ 784 $ (2,455 ) $ 1,428 $ (3,855 )
Income (loss) per share:
Basic $ 0.30 $ (0.93 ) $ 0.54 $ (1.46 )
Diluted $ 0.30 $ (0.93 ) $ 0.54 $ (1.46 )
Weighted-average common shares outstanding:
Basic 2,648 2,648 2,648 2,648
Diluted 2,655 2,648 2,658 2,648

The approximate number of new and continuing independent associates and members who purchased our packs or products during the twelve months ended June 30 was as follows:

2013 2012
New 108,000 45.0 % 87,000 37.8 %
Continuing 132,000 55.0 % 143,000 62.2 %
Total 240,000 100.0 % 230,000 100.0 %

About Mannatech

Mannatech, Incorporated, develops high-quality health, weight and fitness, and skin care products that are based on the solid foundation of nutritional science and development standards. Mannatech is dedicated to its platform of Social Entrepreneurship based on the foundation of promoting, aiding and optimizing nutrition where it is needed most around the world. Mannatech’s proprietary products are available through independent sales associates around the globe including North America, Asia/Pacific, and EMEA. For more information, visit Mannatech.com.

Please Note: This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as “anticipate,” “believe,” “will,” “intend” or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech’s objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech’s inability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

Wednesday, July 31st, 2013 Uncategorized Comments Off on (MTEX) Reports Second Quarter 2013 Financial Results

(REGI) Completes Mason City Biodiesel Plant Acquisition

Renewable Energy Group® (NASDAQ:REGI) Tuesday completed the purchase of a 30-million gallon per year capacity biodiesel plant in Mason City, Iowa, formerly owned by Soy Energy, LLC.

Former Soy Energy, LLC unit holders approved the sale in a vote Monday, July 29. Pursuant to the purchase agreement, REG acquired the biorefinery for $11 million in cash and the issuance of a $5.6 million promissory note. Due to a post-closing adjustment, the note was reduced to $5.1 million.

“We are very pleased to bring REG Mason City into our fleet of biorefineries because it helps us move forward with our growth strategy,” said Daniel Oh, REG President and CEO. “We are happy to be restoring jobs to the community and look forward to working with local businesses as we work to re-open the plant.”

REG plans to repair and re-start the facility using soybean oil and low free fatty acid feedstocks by the end of the year. The acquisition brings the company’s total annual production capacity to 257 million gallons. REG now owns and operates eight active biorefineries. REG Mason City, LLC joins the company’s nearby plants in Newton and Ralston, Iowa and Albert Lea, Minnesota. REG also owns active plants in Illinois and Texas.

REG has begun the hiring process and expects to employ 15 to 25 full-time employees in family wage jobs when the plant is re-started.

Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 255 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.

For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. We sell REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil. REG-9000® branded biodiesel is distributed in nearly every state in the U.S.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to REG’s plans to repair and re-start the Mason City facility and the expected benefits of the acquisition. Actual results may vary materially due to a number of factors including, but not limited to, the risk that the Mason City facility will not be able to be re-started, the risk of management distraction associated with bringing the Mason City facility back online, as well as other risks that are detailed from time to time in REG’s SEC reports. REG is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Information contained in our website is not incorporated by reference in, or made part of this press release.

 

Wednesday, July 31st, 2013 Uncategorized Comments Off on (REGI) Completes Mason City Biodiesel Plant Acquisition

(EDGW) Reports Second Quarter 2013 Results

WAKEFIELD, Mass., July 31, 2013 (GLOBE NEWSWIRE) — Edgewater Technology, Inc. (Nasdaq:EDGW), a leading consulting firm that brings a blend of classic and product-based consulting services to its clients, reported financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  • 10% growth in second quarter 2013 sequential quarterly service revenue;
  • 25 new customers during the second quarter of 2013; and
  • Repurchased 201,345 shares of common stock at an aggregate purchase price of $852,000, or $4.23 per share.

Second Quarter 2013 Financial Results vs. Same Year-Ago Quarter

  • Total revenue was $27.9 million compared to $27.2 million;
  • Service revenue was $21.6 million compared to $21.6 million;
  • Gross profit was $10.0 million, or 36.0% of total revenue, compared to $9.5 million, or 34.8% of total revenue;
  • Gross profit margin related to service revenue was 37.7% compared to 39.5%;
  • Utilization was 75.0% compared to 73.2%;
  • Net income was $1.4 million, or $0.12 per diluted share, compared to net income of $134,000, or $0.01 per diluted share;
  • Adjusted EBITDA (a non-GAAP measure) was $2.4 million, or 8.7% of total revenue and $0.21 per diluted share (see “Non-GAAP Financial Measures” below for further discussion of this non-GAAP term), compared to adjusted EBITDA of $1.9 million, or 6.9% of total revenue and $0.16 per diluted share; and
  • Cash flow used in operating activities was $(1.4) million compared to cash flow provided by operating activities of $637,000.

First Half of 2013 Financial Results vs. Same Year-Ago Period

  • Total revenue was $51.4 million compared to $52.5 million;
  • Service revenue was $41.3 million compared to $43.4 million;
  • Gross profit was $17.2 million, or 33.4% of total revenue, compared to $18.0 million, or 34.4% of total revenue;
  • Gross profit margin related to service revenue was 35.2% compared to 38.4%;
  • Utilization was 72.5% compared to 74.3%;
  • Net income was $525,000, or $0.05 per diluted share, compared to net income of $309,000, or $0.03 per diluted share;
  • Adjusted EBITDA (a non-GAAP measure) was $2.6 million, or 5.1% of total revenue and $0.23 per diluted share (see “Non-GAAP Financial Measures” below for further discussion of this non-GAAP term), compared to adjusted EBITDA of $2.9 million, or 5.4% of total revenue and $0.24 per diluted share; and
  • Cash flow used in operating activities was $(3.6) million compared to cash flow used in operating activities of $(508,000).

Management Commentary

“We realized a healthy conversion of our sales pipeline to signed engagements in the second quarter after a challenging back half of 2012 that continued into the beginning of the year. This helped drive the improvement in our top and bottom lines for the quarter,” said Shirley Singleton, Edgewater’s chairman, president and CEO.

“During the second quarter, we secured first-time engagements with 25 new customers, compared to 21 in the previous quarter, which helped to drive 10% sequential growth in our quarterly service revenue. Both our EPM and Classic Consulting service offerings posted strong sequential quarterly growth while ERP, our third major offering, had a strong sales quarter.

“Our strategy to design and build intellectual property to augment our mix of strategic offerings is having a positive impact on our lead generation and overall sales activity. During the second quarter, Edgewater unveiled two cloud-based applications, which has ignited numerous sales calls and other marketing activities. We expect to identify, build and introduce critical IP, specifically in the healthcare, insurance and manufacturing space.

“Given the positive momentum we are experiencing in our sales pipeline across all of our major offerings, we anticipate a sequential increase in service revenue in the third quarter.”

Conference Call and Webcast Information

Edgewater has scheduled a conference call today (Wednesday, July 31, 2013) at 10:00 a.m. Eastern time to discuss its second quarter 2013 results.

Date: Wednesday, July 31, 2013
Time: 10:00 a.m. Eastern Time
Dial-in number: 1-877-713-9347
Webcast: http://ir.edgewater.com/

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

A replay of the conference call can be accessed via Edgewater’s investor relations web site at http://ir.edgewater.com/ or by dialing 1-855-859-2056 (Conference ID#: 16567621) after 1:00 p.m. Eastern time through August 14, 2013.

About Edgewater

Edgewater Technology, Inc. (Nasdaq:EDGW) is a strategic consulting firm delivering a blend of classic and product-based consulting services. Edgewater addresses the market both vertically by industry and horizontally by product and technology specialty, providing its client base with a wide range of business and technology solutions. As one of the largest IT consulting firms based in New England, the company works with clients to reduce costs, improve processes and increase revenue through the judicious use of technology. Edgewater’s brand names include Edgewater Technology, Edgewater Ranzal and Edgewater Fullscope. To learn more, please visit www.edgewater.com.

Forward-Looking Statements

This Press Release contains certain 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, including statements concerning our expected third quarter 2013 service revenue, improvements in sales pipeline activity, conversion of our sales pipeline to signed contracts, and future benefits of intellectual property investments in 2013. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on our current plans or assessments which are believed to be reasonable as of the date of this Press Release. Factors that may cause actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecasted, estimated, anticipated, planned or budgeted in such forward-looking statements include, among others, the following possibilities: (1) failure to obtain new customers or retain significant existing customers; (2) the loss of one or more key executives and/or employees; (3) changes in industry trends, such as a decline in the demand for Enterprise Resource Planning and Enterprise Performance Management solutions, custom development and system integration services and/or declines in industry-wide information technology spending, whether on a temporary or permanent basis and/or delays by customers in initiating new projects or existing project milestones; (4) inability to execute upon growth objectives, including new services and growth in entities acquired by our Company; (5) adverse developments and volatility involving geopolitical or technology market conditions; (6) unanticipated events or the occurrence of fluctuations or variability in the matters identified under “Critical Accounting Policies” in our 2012 Annual Report on Form 10-K; (7) delays in, or the failure of, our sales pipeline being converted to billable work and recorded as revenue; (8) termination by clients of their contracts with us or inability or unwillingness of clients to pay for our services, which may impact our accounting assumptions; (9) inability to recruit and retain professionals with the high level of information technology skills and experience needed to provide our services; (10) failure to expand outsourcing services to generate additional revenue; (11) any changes in ownership of the Company or otherwise that would result in a limitation of the net operating loss carry forward under applicable tax laws; (12) the failure of the marketplace to embrace advisory and product-based consulting services; (13) changes in our utilization levels; and/or (14) failure to make a successful claim against the Fullscope escrow account. In evaluating these statements, you should specifically consider various factors described above as well as the risks outlined under “Part I – Item IA Risk Factors” in our 2012 Annual Report on Form 10-K filed with the SEC on March 8, 2013. These factors may cause our actual results to differ materially from those contemplated, projected, anticipated, planned or budgeted in any such forward-looking statements.

Although we believe that the expectations in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, growth, earnings per share or achievements. However, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements. Except as required by law, we undertake no obligation to update any of the forward-looking statements after the date of this Press Release to conform such statements to actual results.

EDGEWATER TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)
 
June 30,
2013
December 31,
2012
 Assets
Cash and cash equivalents $ 11,467 $ 16,651
Accounts receivable, net 23,846 18,281
Prepaid expenses and other current assets 1,605 1,418
Total current assets 36,918 36,350
Property and equipment, net 1,714 1,949
Goodwill and intangible assets, net 13,204 13,243
Other assets 244 247
Total Assets $ 52,080 $ 51,789
Liabilities and Stockholders’ Equity
Accounts payable $ 2,338 $ 593
Accrued liabilities 12,817 14,280
Deferred revenue 3,028 2,969
Total current liabilities 18,183 17,842
Other long-term liabilities 978 1,272
Total liabilities 19,161 19,114
Stockholders’ Equity 32,919 32,675
Total Liabilities and Stockholders’ Equity $ 52,080 $ 51,789
Shares Outstanding 10,795 10,897
EDGEWATER TECHNOLOGY, INC.
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Revenue:
Service revenue $ 21,599 $ 21,587 $ 41,295 $ 43,383
Software 4,331 3,622 6,308 5,006
Reimbursable expenses 1,970 1,978 3,773 4,079
Total revenue 27,900 27,187 51,376 52,468
Cost of revenue:
Project and personnel costs 13,456 13,052 26,766 26,706
Software costs 2,433 2,697 3,656 3,658
Reimbursable expenses 1,970 1,978 3,773 4,079
Total cost of revenue 17,859 17,727 34,195 34,443
Gross profit 10,041 9,460 17,181 18,025
Selling, general and administrative 8,072 7,976 15,569 15,917
Embezzlement costs  38 567  72 570
Changes in fair value of contingent consideration  —  8  — 15
Depreciation and amortization 308 448 623 890
Operating income 1,623 461 917 633
Other expense, net  69  196 173  105
Income before income taxes 1,554  265 744 528
Tax provision 140 131 219 219
Net income $ 1,414 $ 134 $ 525 $ 309
BASIC EARNINGS PER SHARE:
Basic earnings per share $ 0.13 $ 0.01 $ 0.05 $ 0.03
Weighted average shares outstanding – Basic 10,791 11,288 10,834 11,319
DILUTED EARNINGS PER SHARE:
Diluted earnings per share $ 0.12 $ 0.01 $ 0.05 $ 0.03
Weighted average shares outstanding – Diluted  11,428  11,836  11,447  11,682
EDGEWATER TECHNOLOGY, INC.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Cash flow (used in) provided by:
Operating activities $ (1,351) $ 637 $ (3,551) $ (508)
Investing activities (134) (171) (531) (404)
Financing activities (579) (348) (1,097) (522)
Effect of exchange rates on cash 4 (16) (5) (6)
Net (decrease) increase in cash and cash equivalents $ (2,060) $ 102 $ (5,184) $ (1,440)

Non-GAAP Financial Measures

Edgewater reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Management believes, however, that certain non-GAAP financial measures used in managing the Company’s business may provide users of this financial information with additional meaningful comparisons between current results and prior reported results. Certain of the information set forth herein and certain of the information presented by the Company from time to time may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. As noted below, the foregoing measures have limitations and do not serve as a substitute and should not be construed as a substitute for GAAP performance, but provide supplemental information concerning our performance that our investors and we find useful.

Edgewater views Adjusted EBITDA, Adjusted EBITDA per Diluted Share and Adjusted EBITDA as a Percentage of Total Revenue as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. We believe Adjusted EBITDA measures are important performance metrics because they facilitate the analysis of our results, exclusive of certain non-cash items, including items which do not directly correlate to our business operations.

The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Income tax provision. The exit of our former significant unrelated operations in 2000 and 2001 created significant net operating loss carry-forwards and deferred tax assets, and the tax provisions that we take under GAAP, for which there is no corresponding federal tax payment obligation for us, and the adjustments that we make to our deferred tax asset, based on the prospects and anticipated future profitability of our ongoing operations, can be significant and can obscure, either significantly, or in part, period-to-period changes in our core operating results.

Depreciation and amortization. We incur expense associated with the amortization of intangible assets that is primarily related to the various acquisitions we have completed. We believe that eliminating this expense from our non-GAAP financial measures is useful to investors because the amortization of intangible assets can be inconsistent in amount and frequency, and is significantly impacted by the timing and magnitude of the individual acquisition transactions, which also vary substantially in frequency from period-to-period.

Stock-based compensation expense. We incur stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, “Compensation – Stock Compensation.” We exclude this non-cash expense as we do not believe it is reflective of business performance.  The nature of stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. Edgewater believes that non-GAAP financial measures of profitability, which exclude stock-based compensation, are widely used by analysts and investors.

Adjustments to contingent consideration earned, at fair value. We are required to remeasure the fair value of our contingent consideration liability related to acquisitions each reporting period until the contingency is settled. Any changes in fair value are recognized as a current period operating expense. The Company believes that excluding these adjustments from its non-GAAP financial measures is useful to investors because they are related to acquisition events and make it difficult to evaluate core operating results.

Direct acquisition costs. We incur direct transaction costs related to acquisitions which are expensed in our GAAP financial statements. Our non-GAAP financial measures exclude the effects of direct acquisition-related costs as we believe these transaction-specific expenses are inconsistent in amount and frequency and make it difficult to make period-to-period comparisons of our core operating results.

Fullscope embezzlement costs. During the second quarter of 2010, we discovered embezzlement activities within Fullscope, Inc. The Company, since the discovery, has incurred non-routine professional services-related expenses addressing the embezzlement issue. Our non-GAAP financial measures exclude the effects of the embezzlement-related expenses as we believe excluding these costs from our non-GAAP financial measures is useful to investors because these expenses are not directly associated with the Company’s operations and are inconsistent in amount and frequency, causing difficulties in comparisons of our core operating results.

Lease abandonment charge. During 2011, we recorded a non-cash charge of $2.2 million in connection with the abandonment of certain excess office space at our corporate headquarters. Our non-GAAP financial measures exclude expense associated with the lease abandonment charge as we believe such expense is associated with a non-routine charge, causing difficulties in comparisons of our core operating results.

Interest and other (income) expense, net. We record periodic interest and other (income) and expense amounts in connection with our cash and cash equivalents, capital lease obligations and (gains) and losses on foreign currency transactions. Our non-GAAP financial measures exclude (income) expense associated with these items as we believe such (income) expense is inconsistent in amount and frequency and makes it difficult to make period-to-period comparisons of our core operating results.

We believe that Adjusted EBITDA metrics provide qualitative insight into our current performance; we use these measures to evaluate our results, the performance of our management team and our management’s entitlement to incentive compensation; and we believe that making this information available to investors enables them to view our performance the way that we view our performance and thereby gain a meaningful understanding of our core operating results, in general, and from period to period.

EDGEWATER TECHNOLOGY, INC.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
(In Thousands, except per share amounts)
(Unaudited)
For The Three Months Ended For The Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Reported GAAP net income $ 1,414 $ 134 $ 525 $ 309
Add: Income tax provision 140 131 219 219
Add: Depreciation and amortization 426 472 804 932
Add: Stock-based compensation expense 346 358 838 706
Add: Adjustments to contingent  — 8  — 15
 consideration earned, at fair value
Add: Fullscope embezzlement costs 38 567 72 570
Less: Other expense, net 69 196 173 105
Adjusted EBITDA1 $ 2,433 $ 1,866 $ 2,631 $ 2,856
Adjusted EBITDA per diluted share1 $ 0.21 $ 0.16 $ 0.23 $ 0.24
Diluted shares outstanding 11,428 11,836 11,447 11,682
Adjusted EBITDA as a % of total revenue1 8.7% 6.9% 5.1% 5.4%
Total revenue $ 27,900 $ 27,187 $ 51,376 $ 52,468
Adjusted EBITDA, Adjusted EBITDA Per Diluted Share and Adjusted EBITDA as a Percentage of Total Revenue are Non-GAAP performance measures and are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, GAAP Net Income and Diluted Earnings Per Share. Adjusted EBITDA and Adjusted EBITDA per Diluted Share measures presented may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA is defined as net income less interest and other (income) expense, net, plus taxes, depreciation and amortization, stock-based compensation expense, adjustments to contingent consideration earned, goodwill and intangible asset impairment charges, direct acquisition costs, costs associated with the Fullscope embezzlement issue and the lease abandonment charge. Adjusted EBITDA per Diluted Share is defined as Adjusted EBITDA divided by the diluted common shares outstanding used in Diluted Earnings per Share calculations, while Adjusted EBITDA as a % of Total Revenue is defined as Adjusted EBITDA divided by Total Revenue.
CONTACT: Company Contact:
         Timothy R. Oakes
         Chief Financial Officer
         1-781-246-3343

         Investor Relations:
         Liolios Group, Inc.
         Cody Slach
         1-949-574-3860
         EDGW@liolios.com
Wednesday, July 31st, 2013 Uncategorized Comments Off on (EDGW) Reports Second Quarter 2013 Results

(SODA) Reports Record Second Quarter Results

Second Quarter Revenue Increased 29% to $132.4 Million Second Quarter Net Income Increased 36% to $12.9 Million Second Quarter Diluted Earnings Per Share Increased 33% to $0.60 Second Quarter Adjusted Diluted Earnings Per Share Increased 42% to $0.74

AIRPORT CITY, Israel, July 31, 2013 /PRNewswire/ — SodaStream International Ltd. (NASDAQ: SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three and six month periods ended June 30, 2013.

For the second quarter ended June 30, 2013:

  • Revenue increased 28.5% to $132.4 million from $103.0 million in the second quarter 2012.
  • EBITDA increased 47.6% to $18.0 million from $12.2 million, and Adjusted EBITDA increased 53.9% to $21.0 million from $13.6 million in the second quarter 2012.
  • Net income increased 36.1% to $12.9 million compared to $9.5 million in the second quarter 2012, and Adjusted net income was $15.8 million compared to $10.9 million in the second quarter 2012.
  • Diluted earnings per share increased 33.3% to $0.60, compared to $0.45 in the second quarter 2012 and Adjusted diluted earnings per share were $0.74 compared to $0.52 in the second quarter 2012.

 

Daniel Birnbaum, Chief Executive Officer of SodaStream, commented, “Our business performed very well during the second quarter, with revenue up 29% year-over-year on top of very strong gains a year ago that were fueled by the launch at Wal-Mart. Importantly, operating income grew at a faster pace than revenue as we leveraged expenses to drive earnings per share ahead of expectations. With global first half unit sales of soda makers, gas refills and flavors up 18%, 30%, and 25% respectively, we are making great progress against our plan to grow our installed base and strengthen user loyalty. Our strong momentum in the Americas and Western Europe, combined with improving trends in Asia-Pacific, position us well to achieve our upwardly revised outlook for 2013.”

 

Second Quarter 2013 Financial Review
Geographical Revenue Breakdown
Revenue Three Months Ended
June 30, 2012 June 30, 2013  Increase (decrease)  Increase (decrease)
In Millions USD %
The Americas $ 30.7 $ 47.4 $ 16.7 55%
Western Europe 54.0 68.1 14.1 26%
Asia-Pacific 9.9 10.8 0.9 9%
Central & Eastern Europe, Middle East, Africa 8.4 6.1 (2.3) (27%)
Total $ 103.0 $ 132.4 $ 29.4 29%

 

Product Segment Revenue Breakdown
Revenue Three Months Ended
June 30, 2012 June 30, 2013  Increase  Increase
In millions USD %
Soda Maker Starter Kits $ 39.8 $ 49.9 $ 10.1 25%
Consumables 61.6 78.9 17.3 28%
Other 1.6 3.6 2.0 134%
Total $ 103.0 $ 132.4 $ 29.4 29%

 

Product Segment Unit Breakdown
Three Months Ended
June 30, 2012 June 30, 2013  Increase  Increase
In thousands %
Soda Maker Starter Kits 764 935 171 22%
CO2 Refills 4,230 5,542 1,312 31%
Flavors 7,200 8,505 1,305 18%

 

Gross margin for the second quarter 2013 was 54.3% compared to 54.4% for the same period in 2012, with continued impact of the dependency on manufacturing by subcontractors.

Sales and marketing expenses for the second quarter 2013 totaled $43.6 million, or 33.0% of revenue, compared to $37.1 million, or 36.0% of revenue for the comparable period in the prior year. The 300 basis point improvement in sales and marketing expenses as a percent of revenue is mainly attributable to lower advertising and promotion expense as a percent of revenue of 15.1% compared to 17.8% in the second quarter 2012 driven by higher revenue.

General and administrative expenses for the second quarter 2013 were $13.6 million, or 10.3% of revenue, compared to $9.2 million, or 9.0% of revenue in the comparable period of last year, mainly due to an increase of $1.6 million in share-based compensation expense to $3.0 million in the quarter, compared to $1.4 million in the second quarter 2012, additional expenses related to our Canadian distribution and additional infrastructure to support growth.

Operating income increased 50.8% to $14.7 million, or 11.1% of revenue, compared to $9.7 million, or 9.5% of revenue in the second quarter 2012.

Tax expense was $1.1 million representing a 7.9% effective tax rate compared to $134,000 or a 1.4% effective tax rate in the second quarter 2012. This increase in effective tax rate is primarily due to the release of past-years’ tax provisions in the second quarter 2012 not recurring in the current period.

Balance Sheet Review

 

  • Cash and cash equivalents and bank deposits at June 30, 2013 were $35.2 million compared to $62.1 million at December 31, 2012. The decrease is primarily attributable to the investment in our new production facility, an increase in working capital and the purchase of our Italian distributor’s business.
  • The Company had $16.1 million of bank debt at June 30, 2013 mainly for financing the investments in the new production facility, compared to no bank debt at December 31, 2012.
  • Working capital at June 30, 2013 increased 55.5% to $148.0 million compared to $95.1 million at December 31, 2012. Inventories at June 30, 2013 increased 27.5% to $143.7 million compared to $112.7 million at December 31, 2012, mainly due to additional inventory from the acquisition of our Italian distributor’s business and the increased revenue.

Guidance

 

Based on second quarter results and current projections for the remainder of the year, the Company is raising its outlook.

 

  • The Company now expects full year 2013 revenue to increase approximately 30% over 2012 revenue of $436.3 million, up from its previous guidance of 27%.
  • The Company now expects full year 2013 Adjusted EBITDA to increase approximately 38% over 2012 Adjusted EBITDA of $61.1 million, up from its previous guidance of 36%.
  • The Company now expects full year 2013 Adjusted net income, which excludes share-based compensation expense, to increase approximately 30% over the Adjusted net income of $50.0 million reported in 2012, up from its previous guidance of 27%.
  • The Company expects full year 2013 net income to increase approximately 23% over 2012 net income of $43.9 million, up from its previous guidance of 20%.

Conference Call and Management Commentary

 

Detailed CFO commentary and a supplemental slide presentation have been filed as part of today’s 6-K and will be posted on the Company’s website, http://sodastream.investorroom.com.

The Company has scheduled a conference call for 8:30 AM Eastern Standard Time (U.S. time) today (Wednesday, July 31, 2013) to review the Company’s financial results. The conference call will be broadcast over the Internet as a “live” listen only Webcast. To listen, please go to: http://sodastream.investorroom.com.  Listeners are urged to login approximately 20 minutes before the conference call is scheduled to begin in order to register, as well as download and install any necessary audio software.  An archive of the Webcast will be available for 30 days after the call.

 

About SodaStream International

SodaStream manufactures beverage carbonation systems which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 60,000 retail stores in 45 countries around the world.  For more information on SodaStream, please visit the Company’s website: www.sodastream.com.

To download SodaStream’s investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit http://itunes.apple.com/us/app/soda-ir/id524423001?mt=8 for your iPhone/iPad, or https://play.google.com/store/apps/details?id=com.theirapp.soda for your Android mobile device.

Non-IFRS Financial Measures

This press release contains certain non-IFRS measures, including Adjusted net income, Adjusted Earnings Before Interest, Income Tax, Depreciation and Amortization (“Adjusted EBITDA”), and Adjusted diluted earnings per share (“Adjusted diluted EPS”).

Adjusted net income represents net income calculated in accordance with IFRS as adjusted for the impact of the share-based compensation expense. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of the share-based compensation expense. Adjusted diluted EPS represents earnings per share calculated in accordance with IFRS as adjusted for the impact of the share-based compensation expense.

The Company believes that the Adjusted net income, Adjusted EBITDA and Adjusted diluted EPS, which exclude share-based compensation expense, should be considered in evaluating the Company’s operations. Adjusted net income and Adjusted diluted EPS exclude share-based compensation because it is a non-cash expense that does not reflect the performance of the Company’s underlying business and operations.  Adjusted EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting interest expenses, net), tax positions (such as the impact on periods or companies of changes in effective tax rates) and the age and book depreciation and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively).

These measures should be considered in addition to results prepared in accordance with IFRS, but should not be considered a substitute for the IFRS results. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.

 

Forward Looking Statements
This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management’s current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to expand into our target markets, including the United States; our ability to continue to develop or maintain our presence in retail networks; our ability to develop and implement production and operating infrastructure to effectively support our growth; the success of our marketing campaigns and media spending in terms of increased sales or increased product and brand name awareness; our ability to maintain our customer base in markets where we have an established presence; the risks associated with our reliance on exclusive arrangements for the distribution of our beverage carbonation systems and consumables in each of the markets in which we use third-party distributors; our ability to compete effectively with other companies which currently offer, or may offer in the future, competing products; potential product liability claims if any component of our beverage carbonation systems is misused; our ability to protect our intellectual property rights; our being found to have a dominant position in certain markets which may place limits on our ability to operate; risks associated with our being a multinational corporation, including fluctuations in currency exchange rates; our potential exposure to greater than anticipated tax liabilities; our products being subject to extensive governmental regulation in the markets in which we operate; adverse conditions in the global economy which could negatively impact our customers’ demand for our products; and other factors detailed in documents we file from time to time with the United States Securities and Exchange Commission.  Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Company Contact:
Yonah Lloyd
Chief Corporate Development and Communications Officer
SodaStream International Ltd.
Phone: +972-3-976-2462
yonahl@sodastream.com

 

Investor Contacts (US):
Brendon Frey
ICR
Phone: + 1 203-682-8200
brendon.frey@icrinc.com

 

 

Consolidated Statements of Operations
In thousands (other than per share amounts)
For the six months ended For the three months ended
June 30, June 30,
2012 2013 2012 2013
(Unaudited) (Unaudited)
Revenue $ 190,887 $ 250,029 $ 103,019 $ 132,390
Cost of revenue 86,521 114,006 47,016 60,452
Gross profit 104,366 136,023 56,003 71,938
Operating expenses
Sales and marketing 64,351 82,498 37,083 43,639
General and administrative 18,866 25,226 9,225 13,617
Other income, net (80) (41)
Total operating expenses 83,137 107,724 46,267 57,256
Operating income 21,229 28,299 9,736 14,682
Interest expense, net 5 154 128 129
Other financial expense, net 154 792 24 582
Total financial expense, net 159 946 152 711
Income before income taxes 21,070 27,353 9,584 13,971
Income tax expense 1,509 2,406 134 1,108
Net income for the period $ 19,561 $ 24,947 $ 9,450 $ 12,863
Net income per share
Basic $ 0.97 $ 1.20 $ 0.47 $ 0.62
Diluted $ 0.94 $ 1.17 $ 0.45 $ 0.60
Weighted average  number of shares
Basic 20,217 20,719 20,289 20,756
Diluted 20,913 21,318 20,932 21,416

 

 

Consolidated Balance Sheets as of
December 31, June 30,
2012 2013
(Audited) (Unaudited)
(In thousands)
Assets
Cash and cash equivalents $ 62,068 $ 25,200
Bank deposits 10,000
Inventories 112,679 143,692
Trade receivables 86,650 93,346
Other receivables 28,021 25,794
Derivative financial instruments 803 1,622
Assets classified as available-for-sale 868 879
Total current assets 291,089 300,533
Property, plant and equipment 76,906 92,369
Intangible assets 41,978 45,410
Deferred tax assets 2,133 2,312
Other receivables 271 276
Total non-current assets 121,288 140,367
Total assets 412,377 440,900
Liabilities
Loans and borrowings 16,143
Derivative financial instruments 261
Trade payables 86,431 72,737
Income tax payable 8,866 10,215
Provisions 1,304 1,519
Other current liabilities 37,022 32,912
Total current liabilities 133,884 133,526
Employee benefits 1,939 2,005
Provisions 537 549
Deferred tax liabilities 1,527 2,350
Total non-current liabilities 4,003 4,904
Total liabilities 137,887 138,430
Shareholders’ equity
Share capital 3,330 3,356
Share premium 178,338 185,654
Translation reserve 3,628 (681)
Retained earnings 89,194 114,141
Total shareholders’ equity 274,490 302,470
Total liabilities and shareholders’ equity $ 412,377 $ 440,900

 

 

Consolidated Statements of Cash Flows
For the six months ended For the three months ended
June 30, June 30,
2012 2013 2012 2013
(Unaudited) (Unaudited)
(In thousands)
Cash flows from operating  activities
Net income for the period $ 19,561 $ 24,947 $ 9,450 $ 12,863
Adjustments:
Amortization of intangible assets 687 1,140 344 712
Change in fair value of  derivative financial instruments 504 (537) (774) (537)
Exchange rate differences on bank deposits 1,094
Depreciation of property, plant  and equipment 3,818 5,777 2,167 3,224
Share based payment 2,835 5,354 1,424 2,960
Interest expense, net 5 154 128 129
Income tax expense 1,509 2,406 134 1,108
28,919 39,241 13,967 20,459
Increase in inventories (12,541) (24,784) (2,639) (14,982)
Increase in trade and other receivables (21,798) (19,369) (4,635) (30,558)
Increase (decrease) in trade payables 12,464 (13,232) 11,921 6,001
Decrease in employee benefits (13) (1) (33) (15)
Increase (decrease) in provisions and other current liabilities 4,459 (5,238) 2,668 6,860
11,490 (23,383) 21,249 (12,235)
Interest paid (237) (179) (123) (125)
Income tax received 1,486 3,539 143 91
Income tax paid (2,291) (966) (1,098) (256)
Net cash from (used in) operating activities 10,448 (20,989) 20,171 (12,525)
Cash flows from investing  activities
Interest received 1,079 94 949 36
Investment in bank deposits (10,000) (10,000) (10,000) (10,000)
Proceeds from bank deposits 38,919 38,919
Proceeds from (payments for) derivative financial  instruments, net (554) (543) (760) 562
Acquisition of subsidiary, net of cash acquired (9,758) (1,179) (1,179)
Acquisition of property, plant  and equipment (14,506) (19,328) (10,379) (8,724)
Acquisition of intangible assets (963) (2,489) (723) (1,380)
Net cash from (used in) investing  activities 4,217 (33,445) 18,006 (20,685)
Cash flows from financing  activities
Proceeds from exercise of employee share options 1,274 1,832 686 681
Change in short-term debt (3,873) 16,143 (2,951) 8,070
Net cash from (used in) financing activities (2,599) 17,975 (2,265) 8,751
Net increase (decrease) in cash and cash equivalents 12,066 (36,459) 35,912 (24,459)
Cash and cash equivalents at the beginning of the period 34,769 62,068 11,090 49,888
Effect of exchange rates  fluctuations on cash and cash equivalents (242) (409) (409) (229)
Cash and cash equivalents  at the end of the period $ 46,593 $ 25,200 $ 46,593 $ 25,200

 

 

Information about revenue in reportable segments
The Americas Western Europe Asia-Pacific Central and Eastern

Europe,

Middle East, Africa

Total
(In thousands)
Six months ended:
June 30, 2012 (Unaudited) $ 56,283 99,725 19,868 15,011 $ 190,887
June 30, 2013 (Unaudited) $ 95,712 121,385 20,151 12,781 $ 250,029
Three months ended:
June 30, 2012 (Unaudited) $ 30,650 54,074 9,927 8,368 $ 103,019
June 30, 2013 (Unaudited) $ 47,373 68,087 10,832 6,098 $ 132,390

 

 

Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations
Six months ended June 30,
2012 2013
Reported Share based Reported Share based
(Unadjusted) payment Adjusted (Unadjusted) payment Adjusted
(Unaudited)
In thousands (other than per share amounts)
Revenue $ 190,887 $ $ 190,887 $ 250,029 $ $ 250,029
Cost of revenue 86,521 86,521 114,006 114,006
Gross profit 104,366 104,366 136,023 136,023
Operating expenses
Sales and marketing 64,351 64,351 82,498 82,498
General and administrative 18,866 (2,835) 16,031 25,226 (5,354) 19,872
Other income, net (80) (80)
Total operating expenses 83,137 (2,835) 80,302 107,724 (5,354) 102,370
Operating income 21,229 2,835 24,064 28,299 5,354 33,653
Interest expense, net 5 5 154 154
Other financial expense, net 154 154 792 792
Total financial expense, net 159 159 946 946
Income before income taxes 21,070 2,835 23,905 27,353 5,354 32,707
Income tax expense 1,509 1,509 2,406 2,406
Net income for the period $ 19,561 $ 2,835 $ 22,396 $ 24,947 $ 5,354 $ 30,301
Net income per share
Basic $ 0.97 $ 1.11 $ 1.20 $ 1.46
Diluted $ 0.94 $ 1.07 $ 1.17 $ 1.42
Weighted average  number of shares
Basic 20,217 20,217 20,719 20,719
Diluted 20,913 20,913 21,318 21,318

 

 

Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations
Three months ended June 30,
2012 2013
Reported Share based Reported Share based
(Unadjusted) payment Adjusted (Unadjusted) payment Adjusted
(Unaudited)
In thousands (other than per share amounts)
Revenue $ 103,019 $ $ 103,019 $ 132,390 $ $ 132,390
Cost of revenue 47,016 47,016 60,452 60,452
Gross profit 56,003 56,003 71,938 71,938
Operating expenses
Sales and marketing 37,083 37,083 43,639 43,639
General and administrative 9,225 (1,424) 7,801 13,617 (2,960) 10,657
Other income, net (41) (41)
Total operating expenses 46,267 (1,424) 44,843 57,256 (2,960) 54,296
Operating income 9,736 1,424 11,160 14,682 2,960 17,642
Interest expense, net 128 128 129 129
Other financial expense, net 24 24 582 582
Total financial expense, net 152 152 711 711
Income before income taxes 9,584 1,424 11,008 13,971 2,960 16,931
Income tax expense 134 134 1,108 1,108
Net income for the period $ 9,450 $ 1,424 $ 10,874 $ 12,863 $ 2,960 $ 15,823
Net income per share
Basic $ 0.47 $ 0.54 $ 0.62 $ 0.76
Diluted $ 0.45 $ 0.52 $ 0.60 $ 0.74
Weighted average  number of shares
Basic 20,289 20,289 20,756 20,756
Diluted 20,932 20,932 21,416 21,416

 

 

EBITDA and Adjusted EBITDA
Six months ended Three months ended
June 30, June 30,
2012 2013 2012 2013
(Unaudited)
(In thousands)
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income $ 19,561 $ 24,947 $ 9,450 $ 12,863
Interest expense, net 5 154 128 129
Income tax expense 1,509 2,406 134 1,108
Depreciation and amortization 4,505 6,917 2,511 3,936
EBITDA 25,580 34,424 12,223 18,036
Share based payment 2,835 5,354 1,424 2,960
Adjusted EBITDA $ 28,415 $ 39,778 $ 13,647 $ 20,996

 

The following tables present the Company’s revenue, by product type for the periods presented, as well as such revenue by product type as a percentage of total revenue:
Six months ended Three months ended
June 30, June 30,
2012 2013 2012 2013
(Unaudited) (Unaudited)
Revenue
(in thousands)
Soda maker starter kits (including exchange cylinders) $ 73,314 $ 92,866 $ 39,830 $ 49,914
Consumables 114,050 150,893 61,631 78,831
Other 3,523 6,270 1,558 3,645
Total $ 190,887 $ 250,029 $ 103,019 $ 132,390

 

Six months ended Three months ended
June 30, June 30,
2012 2013 2012 2013
(Unaudited) (Unaudited)
As a percentage of revenue
Soda maker starter kits (including exchange cylinders) 38.4% 37.1% 38.7% 37.7%
Consumables 59.8% 60.4% 59.8% 59.5%
Other 1.8% 2.5% 1.5% 2.8%
Total 100.0% 100.0% 100.0% 100.0%
Wednesday, July 31st, 2013 Uncategorized Comments Off on (SODA) Reports Record Second Quarter Results

(HNSN) Enters Into Agreement With Investors to Receive up to $93 Million in Equity Financing

Company to Receive Upfront $39 Million Upon Closing

Hansen Medical Enters Into Agreement With Investors to Receive up to $93 Million in Equity Financing

Company to Receive Upfront $39 Million Upon Closing

MOUNTAIN VIEW, CA–(Marketwired – Jul 31, 2013) –  Hansen Medical, Inc. (NASDAQ: HNSN), a global leader in intravascular robotics, today announced that, subject to closing conditions, it has entered into a securities purchase agreement for up to $93 million with Oracle Investment Management, leading medical device executive Jack W. Schuler, certain members of the Company’s Board of Directors, and other existing and new shareholders, including several former healthcare executives. Proceeds from this transaction will be used to support Hansen Medical’s efforts to commercialize the Magellan™ Robotic System, drive further adoption of the Sensei® Robotic System and strengthen operations across the Company.

The agreement is structured to provide up to $93 million before expenses. Hansen Medical would receive $35 million upon the closing of the purchase of shares of common stock at a per share price of $1.23. Investors would also purchase warrants to purchase approximately 34 million shares of common stock. All warrants will have a two-year term and will not be transferable. The purchase price for the warrants will be $0.125 for each warrant, totaling an additional $4 million of proceeds. Total gross proceeds to the Company from the initial sale of common stock and warrants will be approximately $39 million.

The warrants will be allocated into three equal tranches of approximately 11.4 million, and, if exercised, could yield the Company additional proceeds of up to $54 million. The Series A Warrants will have an exercise price of $1.23 per share and will be subject to mandatory exercise subsequent to Hansen Medical’s receipt of regulatory approval for the new 6F Magellan catheter in the U.S. The additional proceeds provided to the Company under this Series A Warrant would be approximately $14 million.

The Series B and Series C Warrants will have an exercise price of $1.50 per share, and $2.00 per share, respectively, but will not be subject to mandatory exercise. These warrants, if fully exercised, would provide additional proceeds to the Company of $17 million and $23 million, respectively.

Under the terms of the agreement, each investor will agree to a lockup such that they will not buy (other than through exercise of the Warrants) or sell any shares of common stock for a one year period following the closing date. Following the close of the transaction, Mr. Schuler will be granted a seat on the Company’s Board of Directors.

The closing of the transaction will be subject to customary closing conditions, including approval of the listing of the shares of common stock on the NASDAQ.

The securities offered will not be or have not been registered under the Securities Exchange Act of 1933, as amended, and may not be offered or sold in the U.S., absent registration or an applicable exemption from registration requirements.

Forward-Looking Statements

This press release contains forward-looking statements regarding, among other things, statements relating to goals, plans, objectives, milestones and future events including the closing of the transaction. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words “plan,” “expects,” “potential,” “believes,” “goal,” “estimate,” “anticipates,” and similar words. These statements are based on the current estimates and assumptions of our management as of the date of this press release and are subject to risks, uncertainties, changes in circumstances and other factors that may cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Examples of such statements include statements about the expected closing of the private equity placement transaction and the anticipated receipt of regulatory approval for the new 6F Magellan catheter in the U.S. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others: delays in satisfying or failure to satisfy closing conditions for the financing, including obtaining Nasdaq clearance for the issuance of the shares and warrants in the financing; failure to achieve the milestone for mandatory exercise of the Series A Warrants; engineering, regulatory, manufacturing, sales and customer service challenges in developing new products and entering new markets; the commercial viability of our products in the electrophysiology and vascular markets; potential safety and regulatory issues that could slow or suspend our sales; the effect of economic conditions on capital spending by our potential customers; the uncertain timelines for the sales cycle for newly introduced products; the rate of adoption of our systems and the rate of use of our catheters; the scope and validity of intellectual property rights applicable to our products; competition from other companies; our ability to recruit and retain key personnel; our ability to maintain our remedial actions over previously reported material weaknesses in internal controls over financial reporting; our ability to manage expenses and cash flow, and obtain additional financing; and other risks more fully described in the “Risk Factors” section of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 filed with the SEC on May 10, 2013 and the risks discussed in our other reports filed with the SEC. Given these uncertainties, you should not place undue reliance on the forward-looking statements in this press release. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.

Hansen Medical, Heart Design (Logo), Hansen Medical (with Heart Design), Sensei, Artisan, Artisan Extend and Lynx are registered trademarks, and Magellan is a trademark of Hansen Medical, Inc. in the United States and other countries.

Investor Contacts:
Peter J. Mariani
Chief Financial Officer
Hansen Medical, Inc.
650.404.5800

FTI Consulting, Inc.
Brian Ritchie
212.850.5683
Email Contact

John Capodanno
212.850.5705
Email Contact

Wednesday, July 31st, 2013 Uncategorized Comments Off on (HNSN) Enters Into Agreement With Investors to Receive up to $93 Million in Equity Financing

(EHTH) Federal Government Signs Web-Broker Entity Agreement With eHealth

Paves the Way for eHealth to Help Enroll Uninsured Subsidy-Eligible Individuals in 36 States; eHealth CEO Gary Lauer Says: “We Now Hope That the 14 Remaining States Will Follow the Leadership of the Federal Government and Allow Their Subsidy-Eligible Residents the Same Opportunity”

Federal Government Signs Web-Broker Entity Agreement With eHealth

Paves the Way for eHealth to Help Enroll Uninsured Subsidy-Eligible Individuals in 36 States; eHealth CEO Gary Lauer Says: “We Now Hope That the 14 Remaining States Will Follow the Leadership of the Federal Government and Allow Their Subsidy-Eligible Residents the Same Opportunity”

MOUNTAIN VIEW, CA–(Marketwired – Jul 31, 2013) – eHealth, Inc. (NASDAQ: EHTH), the nation’s leading online health insurance exchange for individual and family health insurance, today announced that it has reached a written agreement with the U.S. government on key requirements that will set the stage for eHealth to help enroll tax-subsidy-eligible residents of 36 states in qualified health insurance plans under the Affordable Care Act (ACA).

The agreement is between eHealth as a “web-broker entity” (WBE) and the federal government’s Centers for Medicare and Medicaid Services (CMS), which supervises the federal government’s health insurance, web-based exchange, called the “Federally Facilitated Exchange” or “FFE.” Under a specific regulation issued by CMS on March 27, 2012, WBEs such as eHealth, after reaching agreement with CMS or individual states operating their exchanges, are authorized to help enroll tax-subsidy-eligible individuals under the Affordable Care Act.

The FFE agreement just signed by eHealth and CMS allows eHealth to access the Federal electronic data hub, which is necessary for a determination of tax subsidy eligibility and the amount of a subsidy. It also provides for additional strict consumer- and privacy-protective requirements and standards beyond those spelled out in regulations. An additional agreement encompassing the federal requirements for agents and brokers will still need to be signed by eHealth and CMS in order for eHealth to begin enrolling subsidy-eligible individuals into qualified health plans made available by the ACA.

“The agreement announced today is an important step in eHealth’s efforts to help deliver on the goals of the Affordable Care Act by giving many Americans the ability to utilize their subsidies when they enroll in quality health insurance at eHealth.com,” said Gary Lauer, Chief Executive Officer and Chairman of eHealth, Inc.

“We applaud CMS for embracing public-private partnerships with marketplaces like eHealth to establish a framework for secure, streamlined and cost-free enrollment of tax-subsidy-eligible people,” Lauer said.

“We now hope that the 14 States and DC that are working hard to develop their own health insurance exchanges will follow the leadership of the federal government and allow their subsidy-eligible residents the same opportunity that is expected to exist in the 36 other states to utilize resources like eHealth.com for enrollment. This will simply result in more enrollments, which is crucial to the Affordable Care Act’s success, and at the same time save the government taxpayer money.”

Lauer said that eHealth has offered every one of these states technical assistance to enable eHealth to sign a similar agreement and be ready to take advantage of eHealth and other WBEs to supplement their enrollment capacity.

“If there are technical concerns by individual states,” Lauer pointed out, “I am confident we can quickly help resolve them.”

The agreement signed by eHealth is with the Centers for Medicare and Medicaid Services (CMS), the federal government agency that is responsible for the management and oversight of the FFE and the Federal electronic data-hub. The data-hub allows the government exchanges to determine tax subsidy eligibility and subsidy amounts. The WBE would receive limited data sufficient to serve as a web-based platform enabling insurance carriers to enroll tax-subsidy-eligible individuals in “qualified health plans,” as defined under the Affordable Care Act. All WBEs must abide by strict consumer-protective and privacy and security requirements and standards under the agreement with CMS in order to be allowed to assist the federally facilitated exchanges in enrolling tax-subsidy-eligible individuals.

eHealth has enrolled over 3 million individuals in coverage since it sold the first health insurance policy online in 1998, approximately 40% of whom were uninsured before they came to eHealth.

About eHealth
eHealth, Inc. (NASDAQ: EHTH) is the parent company of eHealthInsurance, the nation’s first and largest private health insurance exchange where individuals, families and small businesses can compare health insurance products from leading insurers side by side and purchase and enroll in coverage online. eHealthInsurance offers thousands of individual, family and small business health plans underwritten by more than 200 of the nation’s leading health insurance companies. eHealthInsurance is licensed to sell health insurance in all 50 states and the District of Columbia.

eHealth, Inc. also provides powerful online and pharmacy-based tools to help seniors navigate Medicare health insurance options, choose the right plan and enroll in select plans online through its wholly-owned subsidiary, PlanPrescriber.com (www.planprescriber.com) and through its Medicare website www.eHealthMedicare.com.

Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding eHealth’s expectation that it will gain the ability to help enroll tax-subsidy eligible residents of 36 states in qualified health plans, the availability of the electronic data hub and the use of web-based brokers to enroll individuals through government-run health insurance exchanges, the utilization of resources like eHealth resulting in more enrollment and government savings, resolution of state exchange technical concerns and WBE receipt of data sufficient to enroll tax-subsidy eligible individuals in qualified health plans. These forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made, including permission from state and federal governments to operate as a WBE, eHealth’s readiness to act as a WBE and the government’s readiness to permit enrollment from WBEs, eHealth’s ability to comply with the terms of its WBE related agreements and with laws and regulations related to acting as a WBE, the terms of additional agreements relating to eHealth acting as a WBE, technical difficulties and integration issues in connection with the implementation of WBE capability to enroll individuals in qualified health plans and the effectiveness of eHealth in enrolling individuals into qualified health plans. Other risks and uncertainties that can affect actual results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2012 and our most recent Quarterly Report on Form 10-Q, which are on file with the SEC and are available on the investor relations page of the Company’s website at http://www.ehealthinsurance.com and on the Securities and Exchange Commission’s website at www.sec.gov. All information provided in this press release is as of the date of this press release, and we undertake no duty to update this information unless required by law.

For eHealth, Inc. media inquiries, please contact:
Brian Mast
Vice President, Communications
eHealth, Inc.
(650) 210-3149
brian.mast@ehealth.com

Nate Purpura
Director of Public Relations
eHealth, Inc.
(650) 210-3115
nate.purpura@ehealth.com

For investor inquiries, please contact:
Kate Sidorovich, CFA
Vice President, Investor Relations
650-210-3111
kate.sidorovich@ehealth.com

Wednesday, July 31st, 2013 Uncategorized Comments Off on (EHTH) Federal Government Signs Web-Broker Entity Agreement With eHealth

(MGAM) Q3 Revenue Up 19%, New Quarterly Record of $48.1M

Multimedia Games Holding Company, Inc. (Nasdaq: MGAM) (“Multimedia Games” or the “Company”) today reported operating results for its fiscal 2013 third quarter ended June 30, 2013, as summarized below:

 

Summary of 2013 Q3 Results(In millions, except per share and unit data)
Three Months Ended
June 30,
2013 2012
Revenue $ 48.1 $ 40.5
EBITDA (1) $ 25.0 $ 19.2
Operating income (2) $ 14.0 $ 7.7
Net income (2) $ 8.4 $ 7.2
Diluted earnings per share (2) $ 0.28 $ 0.25
Pro-forma diluted earnings per share (3) $ 0.28 $ 0.19
New units sold 647 543
Domestic participation installed units:
Average 11,946 9,981
Quarter-end 12,163 10,149
(1) EBITDA is defined as net income before net interest expense, income taxes, depreciation, amortization and accretion of contract rights. A reconciliation of EBITDA to net income, the most comparable Generally Accepted Accounting Principles (“GAAP”) financial measure, can be found attached to this release.
(2) Operating income, net income and diluted earnings per share (“EPS”) for the three month period ended June 30, 2013, reflects a change in the depreciable lives for the Company’s gaming operations equipment as described later in this release.
(3) Pro-forma diluted earnings per share for the three month period ended June 30, 2012, reflects the following adjustments: (i) a tax expense rate of 38.7%, representing the effective tax rate for the fiscal 2013 third quarter, which results in a $0.09 per diluted share reduction from the reported results; and, (ii) an estimated $0.03 benefit to fully diluted EPS related to the change in depreciable lives of gaming operations equipment (which is described in more detail below).
Three Months Ended
June 30,
2013 2012
Diluted EPS as reported (2) $ 0.28 $ 0.25
Pro-forma at 38.7% tax rate (0.09 )
Normalize depreciation, net of tax 0.03
Pro-forma diluted EPS (3) $ 0.28 $ 0.19

Patrick Ramsey, President and Chief Executive Officer of Multimedia Games, commented, “Our record quarterly revenue and overall strong financial performance reflects our ongoing success in creating great games that resonate with customers. We continue to expand the Company’s total addressable market while simultaneously achieving growth in existing markets. We delivered quarterly revenue of over $48 million as we deployed over 1,000 new revenue units for the fourth consecutive quarter, with products placed in 21 states, and generated operating margins that continue to be at the high end of our industry peer group, coming in at 29.1% of revenues. Combined, these factors enabled us to generate $14 million in free cash flow (definition provided below). Further, the operating leverage in our business was evident in the quarter as EBITDA growth of 30% outpaced the approximately 19% increase in revenue.

“During the quarter we further expanded our addressable markets as Nevada sales and placements began in earnest and we generated our first sales in New Jersey. Our MForce™ gaming platform completed additional Nevada technical field trials, allowing us to address the majority of the potential customers in the state. In addition, we have expanded our portfolio of approved games in Nevada to 22 titles, including TournEvent®, which received final approvals late in the fiscal third quarter. During the fiscal 2013 third quarter, we sold or placed 102 games in Nevada and we expect to continue our penetration into this important market.

“Gaming operations growth also continued as we added 451 net new units to the installed base, including 376 units outside of Oklahoma. Notably, our base of non-Oklahoma premium games increased by 208 units in the quarter as we ended the quarter with 713 premium units installed in a total of 18 markets. Additionally, with the increased geographic diversification of our products, our average revenue per day continues to rise as yields rose 3.0% year over year.

Ramsey concluded, “Awareness of our products has never been higher as we leverage the solid performance of our games in existing markets into new large market opportunities such as Nevada, Illinois and New Jersey. Our games continue to be met with strong acceptance from players and they bring a strong value proposition to our customers. We believe this combination will lead to further growth of our gaming operations and game sales businesses.”

Summary of Fiscal 2013 Third Quarter Operating Results

Multimedia Games’ fiscal 2013 third quarter revenue rose 18.9%, or $7.6 million, to $48.1 million, compared to revenue of $40.5 million in the fiscal 2012 third quarter. Fiscal 2013 third quarter revenue included approximately $34.3 million from gaming operations and approximately $13.5 million from gaming equipment and system sales, compared with $28.4 million from gaming operations and $11.7 million from gaming equipment and system sales in the year-ago period.

Gaming operations revenue in the fiscal 2013 third quarter grew 20.7% to $34.3 million driven by broad-based growth in the Company’s installed base of participation units. Multimedia Games’ domestic ending installed base increased by 2,014 units, or 19.8%, from the fiscal 2012 third quarter and by 451 units, or 3.9%, on a quarterly sequential basis. The installed base grew in substantially all the Company’s existing markets, including Oklahoma. Included in the quarter-end participation base were 713 premium participation units deployed outside of Oklahoma, an increase of 208 units, or 41.2%, on a quarterly sequential basis. Fiscal 2013 third quarter gaming operations revenue also benefited from a $0.4 million year-over-year rise in revenues related to the Company’s operation of the central determinant system for the New York Lottery.

Gaming equipment and system sales in the fiscal 2013 third quarter increased 15.3% to $13.5 million, from $11.7 million in the prior-year period. During the quarter, the Company recorded revenue of $12.4 million related to the sale of 647 new units and $0.8 million in revenue related to parts and equipment sales, compared to $10.4 million in revenue related to the sale of 543 new units and $0.7 million related to parts and equipment sales in the year-ago period. Multimedia Games sold units into 15 markets, including its first sales to casinos in New Jersey. The Company’s top three markets for unit sales in the quarter – Washington, Louisiana and Nevada – accounted for a total of 302 units sold. There was $0.2 million and $0.6 million of deferred revenues for the sale of player stations and a system in a prior-year period recognized in the fiscal 2013 and fiscal 2012 third quarter periods, respectively.

Other revenue, primarily comprised of service revenue, was approximately $0.3 million and $0.4 million in the fiscal 2013 and fiscal 2012 third quarter periods, respectively.

Total operating costs and expenses for the fiscal 2013 third quarter rose by $1.4 million, or 4.3%, to $34.1 million driven primarily by the increase in sales and placements of the Company’s gaming units and higher selling, general and administrative (“SG&A”) costs, partially offset by lower depreciation and amortization reflecting the Company’s decision to change the depreciation schedule for its gaming operations equipment, as previously reported. Total cost of goods sold increased by $1.1 million due to the increase in the number of units sold and the additions to the installed base of participation games. SG&A expenses rose 6.2%, or $0.7 million, to $12.0 million, primarily reflecting higher salary and benefit costs related to the Company’s ongoing entrance into new markets and jurisdictions. SG&A for the fiscal 2013 and fiscal 2012 third quarter periods includes non-cash stock compensation costs of approximately $1.0 million and $1.2 million, respectively. Depreciation and amortization was $8.9 million in the fiscal 2013 third quarter compared to $9.5 million in the prior-year period, primarily reflecting the previously disclosed change in the depreciable lives for gaming operations equipment from 36 months to 48 months, effective as of October 1, 2012. Research and development expenses was $4.1 million in the fiscal 2013 third quarter compared to $3.9 million in the prior-year period.

Operating income rose to $14.0 million and operating margins improved to 29.1% in the fiscal 2013 third quarter compared to 19.1% in the year-ago period, driven by the rise in revenue significantly outpacing the increase in total operating expenses as well as the continued increase in the mix of high-margin recurring revenue. For the fiscal 2013 third quarter, Multimedia Games reported net income of $8.4 million, or $0.28 per diluted share, compared to net income of $7.2 million, or $0.25 per diluted share, in the fiscal 2012 third quarter. Net income and diluted earnings per share for the fiscal 2013 third quarter reflect a tax expense rate of 38.7% while net income and diluted earnings per share in the prior-year period reflect a tax expense rate of 5.9%.

Balance Sheet Review

Multimedia Games ended the fiscal 2013 third quarter with $92.5 million in cash and net cash (total cash in excess of total debt) of $62.0 million, versus net cash of $40.5 million and $33.6 million as of September 30, 2012, and June 30, 2012, respectively. The Company generated free cash flow of $14.0 million in the quarter ended June 30, 2013, compared to $7.3 million in the year-ago period. While capital expenditures fell to $11.1 million from $12.3 million a year ago, the Company continued to invest in its installed base during the quarter.

In the third quarter of fiscal 2013, the Company repurchased approximately 56,000 shares of its common stock at an average price of $20.87 per share, excluding commissions, for total consideration of approximately $1.2 million. As of June 30, 2013, the Company had approximately $35.2 million remaining under its existing $40.0 million share repurchase authorization which was announced in November 2012. Since December 2010, the Company has repurchased approximately 2.5 million shares of its common stock.

Adam Chibib, Chief Financial Officer, commented, “The popularity of our award-winning products and their growing success in the marketplace continue to strengthen our balance sheet and drive strong free cash flow. We also continue to allocate and reinvest capital into our business to effectively enter new markets, efficiently serve existing markets and create great products that attract customer and player attention. Based on the strong financial performance of the first nine months of the fiscal year, we are raising our fiscal 2013 diluted EPS outlook to a range of $1.07 to $1.10 from our prior $0.98 to $1.02 range.”

Updated Fiscal 2013 Outlook

Multimedia Games now forecasts fiscal 2013 revenues in the range of $187.7 to $190.3 million, representing total year-over-year revenue growth of approximately 20.2% to 21.9%. The revised revenue growth forecast assumes unit sales to range from 700 to 800 units in the fiscal 2013 fourth quarter as well as a quarterly sequential increase in the installed base. Fiscal 2013 revenue guidance also includes the previously disclosed early fourth quarter reduction in revenue share percentage on approximately 1,000 units installed at the WinStar World Casino and Resort in Oklahoma which the Company expects will impact fiscal fourth quarter diluted EPS by $0.01. The current unit sales and installed base growth forecast for fiscal 2013 includes an expectation for a measured level of unit deployments in Nevada, New Jersey and Illinois in the fourth quarter as Multimedia Games continues to build its library of approved games in these jurisdictions.

The Company now expects to generate EBITDA, a non-GAAP financial measure, of $95.1 to $96.0 million in fiscal 2013, representing growth of approximately 33.8% to 35.0% over total fiscal 2012 EBITDA of $71.1 million.

Revised Fiscal 2013 Guidance(In millions, except per-share)
Twelve Months Ended
September 30, 2013
Revised Prior
Guidance Guidance((1))
Revenue $ 187.7-190.3 $ 183.2-185.6
EBITDA $ 95.1-96.0 $ 90.0-92.0
Diluted earnings per share $ 1.07-1.10 $ 0.98-1.02
(1) Represents Company guidance for fiscal 2013 provided on April 30, 2013.

Operating margins for the fiscal 2013 fourth quarter are expected to decline on a quarterly sequential basis to a range of 25% to 26% due to higher marketing costs in the quarter related to higher spending for G2E, the annual industry trade show. The Company currently expects its tax rate in the fourth quarter to be 36% to 38% and expects the full year tax rate to range from 36% to 37% compared to a benefit of 11.4% in fiscal 2012. As a result, Multimedia Games now expects to report fiscal 2013 diluted EPS of $1.07 to $1.10, representing a year-over-year increase of approximately 52.9% to 57.1% over fiscal 2012 pro-forma diluted EPS as adjusted for the new depreciation schedule and when applying a 37.0% tax rate for fiscal 2012, as set forth in the table below.

Revised Fiscal 2013
Fiscal 2012 Guidance
EPS Reconciliation: Low High
As reported $ 0.96
Pro-forma at 37.0% tax rate (0.41 )
Impact of change in depreciation, net of tax 0.15
Adjusted, Pro-forma EPS $ 0.70 $ 1.07 $ 1.10

Multimedia Games cautions that market dynamics are constantly changing and as such, actual results could vary materially from the expectations noted above based on various factors, such as changes in the Company’s markets, operations, regulatory requirements, and its estimates and assumptions. See the risk factors in our publicly-filed Form 10-K’s and subsequent filings and other items as more fully described in the section below titled “Cautionary Language.”

2013 Third Quarter Conference Call and Webcast

Multimedia Games is hosting a conference call and webcast today, July 30, 2013, beginning at 9:00 a.m. ET (8:00 a.m. CT). Both the call and the webcast are open to the general public. The conference call number is 720-545-0001 (domestic or international). Please call five minutes prior to the presentation to ensure that you are connected.

Interested parties may also access the conference call live on the Internet at http://ir.multimediagames.com/events.cfm. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.

Non-GAAP Financial Measures

See definitions of EBITDA, net cash, free cash flow, and pro-forma diluted earnings per share included in the discussion of Non-GAAP financial measures below.

About Multimedia Games Holding Company, Inc.

Through its wholly owned subsidiary, Multimedia Games Holding Company, Inc. (“Multimedia Games”) develops and distributes gaming technology. The Company is a creator and supplier of comprehensive systems, content and electronic gaming units for Native American gaming markets, as well as for commercial casinos and charity and international bingo markets. Revenue is primarily derived from gaming units installed on revenue-sharing arrangements. Multimedia Games also supplies the central determinant system for the video lottery terminals (“VLTs”) installed at racetracks in the State of New York. The company is focused on pursuing market expansion and new product development for Class II, Class III and VLT markets. Please visit www.multimediagames.com, twitter.com/MultimediaGames or facebook.com/MultimediaGames, where Multimedia Games discloses important information about the company, its sales, and its business.

Cautionary Language

This press release contains forward-looking statements based on Multimedia Games’ current expectations and projections, which are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “continue”, “intend”, “plan”, “seek”, “estimate”, “project”, “may”, or the negative or other variations thereof or comparable terminology as they relate to Multimedia Games and its products, plans, and markets are intended to identify such forward-looking statements. All forward-looking statements are based on current expectations and projections of future events.

These forward-looking statements reflect the current views, models, and assumptions of Multimedia Games, and are subject to various risks and uncertainties that cannot be predicted or qualified and could cause actual results in Multimedia Games’ performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, the ability of Multimedia Games to expand and maintain its addressable markets; maintain strategic alliances; increase unit placements, installations or its installed-base; grow its revenue, gaming operations or game sales businesses; garner new market share; secure new licenses and game approvals in new and current jurisdictions, including Nevada and New Jersey; successfully develop or place proprietary product such as premium games; comply with regulations; have its games met with approval by customers or players; or reinvest capital. Please refer to the Company’s most recent Form 10-K and subsequent filings with the Securities and Exchange Commission for a further discussion of risks and uncertainties. All forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned that all forward-looking statements speak only to the facts and circumstances present as of the date of this press release. Multimedia Games expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONDENSED CONSOLIDATED BALANCE SHEETS As of June 30, 2013 and September 30, 2012

(In thousands, except share and per-share amounts)

(Unaudited)

June 30, September 30,
ASSETS 2013 2012
CURRENT ASSETS:
Cash and cash equivalents $ 92,484 $ 73,755
Accounts receivable, net of allowance for doubtful accounts of $340 and $266, respectively 24,005 17,503
Inventory 9,592 7,083
Current portion of notes receivable, net 2,076 8,024
Deferred tax asset 8,248 8,248
Prepaid expenses and other 4,044 6,837
Total current assets 140,449 121,450
Property and equipment and leased gaming equipment, net 73,668 57,924
Intangible assets, net 36,168 37,664
Long-term portion of notes receivable, net 4,910 733
Deferred tax asset, less current portion 1,870 2,418
Value added tax receivable, net of allowance of $718 and $722, respectively 2,860 3,511
Other assets 2,181 2,275
Total assets $ 262,106 $ 225,975
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 3,700 $ 3,700
Accounts payable and accrued liabilities 29,978 30,192
Federal and state income tax payable 6,096
Deferred revenue 236 483
Total current liabilities 40,010 34,375
Long-term debt, less current portion 26,825 29,600
Long-term deferred tax liability 6,320 6,320
Other long-term liabilities 511 660
Total liabilities 73,666 70,955
Commitments and contingencies
Stockholders’ equity:
Preferred stock:
Series A, $0.01 par value, 1,800,000 shares authorized, no shares issued and outstanding
Series B, $0.01 par value, 200,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 par value, 75,000,000 shares authorized, 37,364,863 and 36,296,027 shares issued, and 28,948,783 and 28,183,549 shares outstanding, respectively 374 363
Additional paid-in capital 120,764 107,751
Treasury stock, 8,416,080 and 8,112,478, respectively, common shares at cost (66,886 ) (62,048 )
Retained earnings 134,188 109,283
Accumulated other comprehensive loss, net (329 )
Total stockholders’ equity 188,440 155,020
Total liabilities and stockholders’ equity $ 262,106 $ 225,975
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three and Nine Months Ended June 30, 2013 and 2012(In thousands, except per-share amounts)

(Unaudited)

Three Months EndedJune 30, Nine Months EndedJune 30,
2013 2012 2013 2012
REVENUES:
Gaming operations $ 34,314 $ 28,419 $ 97,694 $ 82,363
Gaming equipment and system sales 13,451 11,665 40,242 31,372
Other 340 380 1,043 1,056
Total revenues 48,105 40,464 138,979 114,791
OPERATING COSTS AND EXPENSES:
Cost of gaming operations revenue (1) 3,704 3,167 10,359 9,162
Cost of equipment and system sales 5,461 4,894 17,027 13,227
Selling, general and administrative expenses 12,012 11,308 34,930 34,332
Research and development 4,053 3,852 12,316 11,162
Amortization and depreciation 8,900 9,510 25,007 28,712
Total operating costs and expenses 34,130 32,731 99,639 96,595
Operating income 13,975 7,733 39,340 18,196
OTHER INCOME:
Interest income 85 308 399 1,320
Interest expense (277 ) (330 ) (867 ) (1,059 )
Other income (expense) (10 ) 33 1,038
Income before income taxes 13,783 7,701 38,905 19,495
Income tax benefit (expense) (5,334 ) (452 ) (14,000 ) 354
Net income $ 8,449 $ 7,249 $ 24,905 $ 19,849
Basic earnings per common share $ 0.29 $ 0.26 $ 0.87 $ 0.72
Diluted earnings per common share $ 0.28 $ 0.25 $ 0.82 $ 0.69
Shares used in earnings per common share:
Basic 28,960 27,564 28,781 27,621
Diluted 30,710 29,275 30,487 28,940
(1) Cost of revenues exclude depreciation and amortization of gaming equipment, content license rights and other depreciable assets, which are included separately in the amortization and depreciation line item.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Nine Months Ended June 30, 2013 and 2012

(In thousands)

(Unaudited)

2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 24,905 $ 19,849
Adjustments to reconcile net income to cash provided by operating activities:
Amortization and depreciation 25,007 28,712
Accretion of contract rights 6,034 5,752
Share-based compensation 2,850 2,668
Other non-cash items 1,401 1,052
Interest income from imputed interest (321 ) (1,084 )
Deferred income taxes 548
Changes in operating assets and liabilities (182 ) 247
NET CASH PROVIDED BY OPERATING ACTIVITIES 60,242 57,196
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment and leased gaming equipment (36,623 ) (31,811 )
Acquisition of intangible assets (6,605 ) (4,283 )
Advances under development and placement fee agreements (8,535 ) (13,815 )
Repayments under development agreements 7,689 11,933
NET CASH USED IN INVESTING ACTIVITIES (44,074 ) (37,976 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options, warrants and related tax benefit 10,174 6,828
Principal payments of long-term debt (2,775 ) (2,775 )
Proceeds from capital leases 548
Principal payments of capital leases (67 )
Purchase of treasury stock (4,838 ) (1,884 )
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,561 2,650
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (262 )
Net increase in cash and cash equivalents 18,729 21,608
Cash and cash equivalents, beginning of period 73,755 46,710
Cash and cash equivalents, end of period $ 92,484 $ 68,318

Reconciliation of GAAP to Non-GAAP measures:

This press release and accompanying schedules provide certain information regarding (i) EBITDA, (ii) net cash, (iii) free cash flow, and (iv) pro-forma diluted earnings per share, all of which may be considered non-GAAP financial measures under the rules of the Securities and Exchange Commission. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, or above in this release for pro-forma diluted earnings per share, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. We define (i) EBITDA as net income before net interest expense, income taxes, depreciation, amortization and accretion of contract rights, (ii) net cash as cash and cash equivalents less long-term debt, (iii) free cash flow as cash flow from operating activities less the acquisition of property and equipment and leased gaming equipment, and (iv) pro-forma diluted earnings per share reflects a tax expense rate adjustment and an estimate for a change in depreciable lives of gaming operations equipment. EBITDA, net cash, free cash flow and pro-forma diluted earnings per share are not recognized financial measures under GAAP, but we believe that each is useful in measuring our operating performance. We believe that the use of the non-GAAP financial measure EBITDA enhances an overall understanding of the Company’s past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis and the use of EBITDA by other companies in the gaming equipment sector as a measure of performance. We believe that the non-GAAP measures of net cash, free cash flow and pro-forma diluted earnings per share provide useful information to investors as each enhances the overall understanding of our operating performance.

Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.

For the Three Months Ended June 30,
2013 2012
(in thousands)
Net income $ 8,449 $ 7,249
Add back:
Amortization and depreciation 8,900 9,510
Accretion of contract rights(1) 2,080 1,923
Interest expense (income), net 192 22
Income tax expense 5,334 452
EBITDA $ 24,955 $ 19,156
1) “Accretion of contract rights” relates to the amortization of intangible assets for development projects. These amounts are recorded net of revenues in the Consolidated Statements of Operations.
Net Cash
As of
June 30, 2013 September 30, 2012 June 30, 2012
Cash and cash equivalents $ 92,484 $ 73,755 $ 68,318
Less:
Long-term debt (30,525 ) (33,300 ) (34,706 )
Net cash $ 61,959 $ 40,455 $ 33,612
Free Cash Flow
For the three months ended
June 30, 2013 June 30, 2012
Net cash provided by operating activities $ 25,180 $ 19,561
Less:
Acquisition of property and equipment and leased gaming equipment (11,089 ) (12,279 )
Free cash flow $ 14,091 $ 7,282

Please see definition of “pro-forma diluted earnings per share” at the beginning of this release.

Tuesday, July 30th, 2013 Uncategorized Comments Off on (MGAM) Q3 Revenue Up 19%, New Quarterly Record of $48.1M

(GTLS) $50 Million Plus Contract to Provide LNG Equipment to PetroChina

CLEVELAND, July 30, 2013 (GLOBE NEWSWIRE) — Chart Industries, Inc. (Nasdaq:GTLS), a leading independent global manufacturer of highly engineered equipment used in the production, distribution, storage, and end-use of hydrocarbon and industrial gases, today announced that its Distribution & Storage (“D&S”) business in China has been awarded a contract to provide self-contained liquefied natural gas (“LNG”) station modules to Kunlun Energy Investment, a wholly owned subsidiary of PetroChina’s Kunlun Energy.

The contract value of this order is in excess of $50 million and is in addition to the $45 million PetroChina order the Company received and announced in April 2013. “This is the third major award from PetroChina in the last several quarters which highlights their continuing commitment to the LNG infrastructure build-out in China and we are very pleased they have chosen Chart again in recognition of our quality and product capabilities,” stated Tom Carey, President of Chart’s D&S Group. This new order is not included in the Company’s second quarter 2013 orders and backlog.

Certain statements made in this news release are or imply forward-looking statements, such as statements concerning business plans, objectives, market trends, future revenue, performance, and other information that is not historical in nature. These statements are made based on Chart’s expectations concerning future events and are subject to factors and uncertainties that could cause actual results to differ materially, such as cyclicality of product markets and vulnerability of markets to economic downturns, a delay or reduction in customer purchases, competition, fluctuations in energy prices or changes in government energy policy, management of fixed-price contract exposure, reliance on the availability of key supplies and services, pricing and availability of raw materials, modification or cancellation of customer contracts, fluctuations in foreign currency exchange rates, and economic, political, business and market risks associated with international transactions. For a discussion of these and additional factors that could cause actual results to differ from forward-looking statements, see Chart’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) in Chart’s most recent Annual Report on Form 10-K. Chart undertakes no obligation to update or revise any forward-looking statement.

Chart is a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The majority of Chart’s products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, the largest portion of which are energy-related. Chart has domestic operations across the United States and an international presence in Asia, Australia and Europe.

For more information: http://ir.chartindustries.com/.

CONTACT: Ken Webster
         Vice President, Chief Accounting
         Officer and Controller
         216-626-1216
         ken.webster@chartindustries.com
         or
         Chris Rioux
         Manager of Investor Relations and
         Financial Planning
         216-626-1216
         chris.rioux@chartindustries.com
Tuesday, July 30th, 2013 Uncategorized Comments Off on (GTLS) $50 Million Plus Contract to Provide LNG Equipment to PetroChina

(LCAV) Second Quarter Financial Results Feature EPS of $0.02

CINCINNATI, July 30, 2013 /PRNewswire/ — LCA-Vision Inc. (NASDAQ: LCAV), a leading provider of laser vision correction services under the LasikPlus® brand, today announced financial and operating results for the three and six months ended June 30, 2013.

Second Quarter 2013 Financial and Operating Highlights (all comparisons are with the second quarter of 2012)

  • Revenues were $22.6 million compared with $25.2 million; adjusted revenues were $22.4 million compared with $24.5 million.
  • Procedure volume was 12,994 compared with 14,415.
  • Medical professional and license fees decreased by $1.6 million to $4.2 million from $5.8 million. The decrease resulted from lower procedure volume coupled with lower laser fees. Laser fees were favorably impacted by the company’s purchase in April 2013 of its previously leased excimer lasers, which provided a lower per-procedure fee for all procedures performed in 2013 with this equipment, as well as for enhancement costs.
  • Vision center direct costs decreased by $2.1 million to $9.4 million from $11.5 million. The decrease was a result of lower variable costs associated with the decline in procedure volume along with other savings. These savings primarily included lower laser maintenance fees from managing purchases, lower financing fees from renegotiated rates and a shift in portfolio mix, reductions in employee-related costs and lower insurance costs from favorable claims experience.
  • Marketing expense decreased by $1.2 million to $5.4 million from $6.6 million, bringing marketing cost per eye to $413 from $460.
  • General and administrative expenses decreased by $0.5 million to $2.9 million from $3.4 million, due primarily to reductions in employee-related costs as a result of restructuring initiatives implemented early this year.
  • Depreciation expense decreased by $0.7 million to $0.5 million from $1.2 million, due to lower capital expenditures in recent years.
  • Operating income was $0.3 million, a $3.6 million improvement from an operating loss of $3.3 million; adjusted operating income was $0.1 million, a $4.0 million improvement from an adjusted operating loss of $3.9 million.
  • Net income was $0.5 million, or $0.02 per diluted share, a $3.7 million improvement from a net loss of $3.2 million, or $0.17 per share.

First Half 2013 Financial and Operating Highlights (all comparisons are with the first half of 2012)

  • Revenues were $50.9 million compared with $61.3 million; adjusted revenues were $50.3 million compared with $59.8 million.
  • Procedure volume was 29,266 compared with 35,402.
  • Medical professional and license fees decreased by $3.5 million to $11.0 million from $14.5 million. The decrease resulted from lower procedure volume coupled with the impact from the company’s purchase of its previously leased excimer lasers.
  • Vision center direct costs decreased by $3.9 million to $19.5 million from $23.4 million. The decrease was a result of lower variable costs associated with the procedure volume combined with other cost savings. These savings primarily included lower financing fees from renegotiated rates and a shift in portfolio mix, reductions in employee-related costs, lower insurance costs from favorable claims experience and lower laser maintenance fees from managing purchases.
  • Marketing expense decreased by $1.6 million to $11.9 million from $13.5 million. Marketing cost per eye was $408 compared with $381.
  • General and administrative expenses decreased by $1.0 million to $6.1 million from $7.1 million, due primarily to reductions in employee-related costs and rent from the relocation of the company’s call center as a result of restructuring initiatives implemented in early 2013.
  • Depreciation expense decreased by $1.5 million to $1.0 million from $2.5 million, due to lower capital expenditures in recent years.
  • Operating income was $1.3 million, a $0.9 million improvement from operating income of $0.4 million; adjusted operating income was $0.8 million, a $1.7 million improvement from an adjusted operating loss of $0.9 million.
  • Net income was $1.7 million, or $0.09 per diluted share, a $1.0 million improvement from net income of $0.7 million, or $0.03 per diluted share.
  • Cash and investments were $30.9 million as of June 30, 2013, compared with $34.5 million as of December 31, 2012. The cash use was due primarily to working capital changes from merchant receivables and prepaid license fee purchases in addition to restructuring payments related to severance and lease obligations for previously closed vision centers. The cash use also included start-up losses related to the company’s refractive lens and cataract business.
  • In April 2013, the company purchased for $2.3 million the previously leased excimer lasers used in all of its full-service vision centers. The purchase was financed by the vendor over a three-year term at an interest rate of 3.5%.

The company provides adjusted revenues and operating income (loss) as a means of measuring performance that adjusts for the non-cash impact of accounting for separately priced extended warranties.  A reconciliation of revenues and operating income (loss) as reported in accordance with U.S. Generally Accepted Accounting Principles (GAAP) is provided at the end of this news release.  Management believes that the adjusted information better reflects operating performance and, therefore, is more meaningful to investors.

“We reported positive net income for the quarter due to a combination of cost savings from restructuring initiatives implemented early this year, new cost savings and our purchase of excimer lasers that we previously leased, which lowered the per-use fee for procedures performed with this equipment,” said LCA-Vision Chief Executive Officer Michael J. Celebrezze.  “As a result, we are reducing our estimate of the annual number of procedures to reach cash-flow breakeven for our LASIK business by 2,000 to 56,000, moving us closer to our goal of sustained profitability for this business.

“Our conversion metrics remained strong across the board and we improved average revenue per procedure to $1,722, an increase of $23 year-over-year and $5 sequentially.  We also significantly reduced our year-over-year decline in procedure volume compared with this year’s first quarter, although we anticipate that procedure volume will be negatively impacted throughout 2013 due to the lowering of the maximum contribution to flexible spending accounts mandated by the federal government at the beginning of the year.  We are taking a more integrated, synergistic approach to our advertising, managed care and partner network programs to improve marketing, while continuing to work on optimizing media mix and refining messages.  Currently, we are offering several discount promotions to support patient acquisition.

“We are pleased with the initial success of our partner network of optometrists, which is nearly self-sustaining from a financial perspective with net revenues exceeding our overhead costs.  About 1.7% of our second quarter procedure volume resulted from co-management, up from approximately 1% in the first quarter.  Among the measures underway to fully establish this program, we are focused on improving vision center staff relationships with our partners and managing patient flow.  Our plan is to add more partners throughout the current year and beyond,” added Celebrezze.

Near-Term Financial Outlook
LCA-Vision intends to manage expenses conservatively in 2013; its plans and outlook for the year include:

  • The company plans to open one additional full-service licensed vision center in the second half of 2013, in addition to the two full-service licensed vision centers opened since the beginning of 2013. The company also intends to continue leveraging marketing spend by adding satellite vision centers in established LasikPlus® markets. The company has opened three satellite centers since the beginning of 2013, and plans to open at least one additional satellite center in the current year.
  • The company revised its expectations for annual capital expenditures to be between $0.8 million and $1.2 million, from its prior outlook of $3.1 million to $3.5 million. The previous guidance assumed that the $2.3 million purchase of excimer lasers would be recorded at gross, impacting both capital expenditures and borrowings. As no cash changed hands in this transaction, it was reported at net.
  • For the third quarter of 2013, the company expects marketing and advertising expenses to be between $4.8 million and $5.3 million.

As noted above, the company lowered its estimate for the annual number of procedures companywide necessary to reach cash-flow breakeven from its LASIK business to approximately 56,000, from the prior estimate of 58,000, after capital expenditures and debt service.  This cash-flow estimate does not include restructuring payments, or start-up losses and capital expenditures for its refractive lens and cataract business.  The company expects to continue to incur start-up losses and capital investment for its business expansion initiatives.

Conference Call and Webcast
As previously announced, a conference call and webcast will be held today beginning at 10:00 a.m. Eastern time. To access the conference call, dial 866-322-1352 (U.S. and Canada) or 706-643-6246 (international callers).  A webcast will be available in the investor relations section of LCA-Vision’s website. A replay of the call and webcast will begin approximately two hours after the live call has ended. To access the replay, dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (international callers) and enter the conference ID number: 10544407.

Forward-Looking Statements 
This news release contains forward-looking statements based on current expectations, forecasts and assumptions of LCA-Vision that are subject to risks and uncertainties.  The forward-looking statements in this release are based on information available to the company as of the date hereof.  Actual results could differ materially from those stated or implied in the forward-looking statements due to risks and uncertainties associated with its business.  In addition to the risk factors discussed in the company’s Form 10-K and other filings with the Securities and Exchange Commission, there are a number of other risks and uncertainties associated with its business including, without limitation, the successful execution of cost effective marketing strategies to drive patients to its vision centers; the impact of low consumer confidence and discretionary spending; competition in the laser vision correction industry; the possibility of adverse outcomes or long-term side effects of laser vision correction and negative publicity regarding laser vision correction; the company’s ability to operate profitable vision centers and retain qualified personnel during periods of lower procedure volumes; the company’s success in expanding its services into the cataract market; additional regulatory requirements, such as for Medicare, related to cataract; the continued availability of non-recourse third-party financing for its patients on terms similar to what it has paid historically; the company’s ability to achieve profitability in its developing business expansion initiatives and the future value of revenues financed by the company and its ability to collect on such financings, which will in turn depend on a number of factors, including the consumer credit environment and the company’s ability to manage credit risk related to consumer debt, bankruptcies and other credit trends.

Further, the Food and Drug Administration’s (FDA) advisory board on ophthalmic devices currently is reviewing concerns about post-LASIK quality of life matters, and the FDA is recruiting participants for two studies on LASIK outcomes and quality of life.  The FDA or another regulatory body could take legal action against the company or others in the laser vision correction industry. The outcome of this review or legal action potentially could impact negatively the acceptance of LASIK.  In addition, the acceptance rate of new technologies and our ability to implement successfully new technologies on a national basis create additional risk.

Except to the extent required under the federal securities laws and the rules and regulations promulgated by the Securities and Exchange Commission, the company assumes no obligation to update the information included in this news release, whether as a result of new information, future events or circumstances, or otherwise.

About LCA-Vision Inc./LasikPlus®
LCA-Vision Inc., a leading provider of laser vision correction services under the LasikPlus® brand, operates 58 LasikPlus® vision centers in the United States: 51 full-service LasikPlus® fixed-site laser vision correction centers and seven pre- and post-operative LasikPlus® satellite centers. Since 1991 more than 1.3 million laser vision correction procedures have been performed at the company’s vision centers.

Earning Trust Every Moment; Transforming Lives Every Day.

For Additional Information

Company Contact:                 Investor Relations Contact:
Barb Kise Jody Cain
LCA-Vision Inc. LHA
513-792-5629 310-691-7100 – jcain@lhai.com
@LHA_IR_PR

 

 

LCA-Vision Inc.
Condensed Consolidated Balance Sheets  (Unaudited)
(Dollars in thousands)
June 30, 2013 December 31, 2012
Assets
Current assets
   Cash and cash equivalents $         30,866 $             31,653
   Short-term investments 2,804
   Patient receivables, net of allowances of $951 and $1,019, respectively 3,195 2,810
   Other accounts receivable, net 1,627 443
   Prepaid expenses and other 3,864 3,318
Total current assets 39,552 41,028
Property and equipment, net 7,447 6,380
Patient receivables, net of allowances of $592 and $634, respectively 1,301 1,059
Other assets 223 501
Total assets $         48,523 $             48,968
Liabilities and Stockholders’ Investment
Current liabilities
   Accounts payable $           7,848 $               8,046
   Accrued liabilities and other 8,628 11,930
   Debt obligations maturing within one year 861
Total current liabilities 17,337 19,976
Other long-term liabilities 2,468 3,454
Long-term insurance reserves, less current portion 5,655 5,741
Long-term debt obligations, less current portion 1,404
Stockholders’ investment
   Common stock ($.001 par value; 25,291,637 shares issued and
     19,240,820 and 19,050,504 shares outstanding, respectively) 25 25
   Contributed capital 180,212 179,543
   Common stock in treasury, at cost (6,050,817 shares and 6,241,133 shares, respectively) (110,093) (111,395)
   Accumulated deficit (48,919) (49,053)
   Accumulated other comprehensive income 434 677
Total stockholders’ investment 21,659 19,797
Total liabilities and stockholders’ investment $         48,523 $             48,968

 

 

LCA-Vision Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
(Amounts in thousands except per share data)
Three months ended June 30, Six months ended June 30,
2013 2012 2013 2012
Revenues $       22,609 $       25,152 $       50,913 $       61,289
Operating costs and expenses
Medical professional and license fees 4,229 5,809 10,963 14,491
Direct costs of services 9,431 11,500 19,492 23,410
General and administrative expenses 2,906 3,407 6,055 7,113
Marketing and advertising 5,367 6,628 11,937 13,479
Depreciation 484 1,209 1,039 2,521
Restructuring and impairment charges 37 219 37
22,417 28,590 49,705 61,051
Gain on sale of assets 108 110 115 188
Operating income (loss) 300 (3,328) 1,323 426
Net investment income and other 235 162 451 278
Income (loss) before taxes on income 535 (3,166) 1,774 704
Income tax expense 72 24 107 48
Net income (loss) $            463 $       (3,190) $         1,667 $            656
Earnings (loss) per common share
   Basic $           0.02 $         (0.17) $           0.09 $           0.03
   Diluted $           0.02 $         (0.17) $           0.09 $           0.03
Weighted average shares outstanding
   Basic 19,117 18,991 19,152 18,943
   Diluted 19,195 18,991 19,301 19,129
Other comprehensive (loss) income, net of tax:
   Foreign currency translation adjustment $          (146) $          (125) $          (243) $            (22)
   Unrealized investment gain 43 30
Total other comprehensive (loss) income, net of tax $          (146) $            (82) $          (243) $                8
Comprehensive income (loss) $            317 $       (3,272) $         1,424 $            664

 

 

LCA-Vision Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
Six months ended June 30,
2013 2012
Cash flow from operating activities:
Net income $             1,667 $                656
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
   Depreciation 1,039 2,521
   Provision for loss on doubtful accounts 276 518
   Loss on sale of investments 8
   Impairment charges 37
   Gain on sale of assets (115) (188)
   Stock-based compensation 669 1,082
   Insurance reserve (98) 100
   Changes in operating assets and liabilities:
     Patient accounts receivable (926) (1,624)
     Other accounts receivable (1,164) (135)
     Prepaid expenses and other (1,376) 520
     Accounts payable (198) (163)
     Deferred revenue, net of professional fees (542) (1,338)
     Accrued liabilities and other (2,291) (1,548)
Net cash (used in) provided by operations (3,059) 446
Cash flow from investing activities:
   Purchases of property and equipment (195) (589)
   Proceeds from sale of assets 137 207
   Purchases of investment securities (36,855)
   Proceeds from sale of investment securities 2,804 59,264
Net cash provided by investing activities 2,746 22,027
Cash flow from financing activities:
   Principal payments on loans (4,004)
   Shares repurchased for treasury stock (231) (357)
   Proceeds from exercise of stock options 57
Net cash used in financing activities (231) (4,304)
Net effect of exchange rate changes on cash and cash equivalents (243) (22)
(Decrease) increase in cash and cash equivalents (787) 18,147
Cash and cash equivalents at beginning of period 31,653 18,568
Cash and cash equivalents at end of period $           30,866 $           36,715

 

LCA-Vision Inc.
Effect of the Change in Accounting for Deferred Revenues on Financial Results
(Dollars in thousands)
(Unaudited)

To supplement its Consolidated Financial Statements presented in accordance with accounting principles generally accepted in the United States, LCA-Vision discusses adjusted revenues and operating income and loss. Management utilizes this information as a means of measuring performance that adjusts for the non-cash impact of the accounting for separately priced extended warranties and believes that including this additional disclosure is meaningful to investors for the same reason.

Accordingly, this news release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of the difference between the non-GAAP measures with the most directly comparable financial measures calculated in accordance with GAAP follows:

Three Months Ended June 30, Six Months Ended June 30,
2013 2012 2013 2012
Revenues
     Reported U.S. GAAP $        22,609 $        25,152 $        50,913 $        61,289
     Adjustments
        Amortization of prior deferred revenue (233) (666) (602) (1,487)
     Adjusted revenues $        22,376 $        24,486 $        50,311 $        59,802
Operating income (loss)
     Reported U.S. GAAP $             300 $         (3,328) $          1,323 $             426
     Adjustments
        Amortization of prior deferred revenue (233) (666) (602) (1,487)
        Amortization of prior professional fees 23 67 60 149
     Adjusted operating income (loss) $               90 $         (3,927) $             781 $            (912)
Tuesday, July 30th, 2013 Uncategorized Comments Off on (LCAV) Second Quarter Financial Results Feature EPS of $0.02

(SPEX) Announces its First Settlement and License Agreement

NEW YORK, July 30, 2013 /PRNewswire/ — North South Holdings Inc. (“North South”) — an intellectual property development company, today reported that its wholly owned subsidiary, CompuFill LLC, has entered into a settlement and license agreement with a leading technology company.

This is the first settlement and license agreement for the CompuFill portfolio since North South’s acquisition of CompuFill in April 2013 and commencement of its licensing campaign.  Ongoing infringement continues, and the CompuFill portfolio is currently being enforced against additional defendants.   

The CompuFill patents, each in the “on-line pharmacy automated refill system” sector, trace priority back to October 1997.

Commenting on the announcement, Anthony Hayes, North South CEO, stated, “The value of having this suite of patents cannot be emphasized enough. Our team of patent monetization experts brought this opportunity to North South only a few short months ago and we have already started generating revenue. This is a great example of how North South is working to drive value for our investors.”

About North South Holdings Inc.
North South Holdings Inc. was formed on November 9, 2012 to seek business opportunities in which to acquire patents from various entities and monetize those patents through sales, litigation or licensing.  North South recently entered into an agreement to be acquired by Spherix Incorporated (NASDAQ: SPEX).

About Spherix Incorporated
Spherix Incorporated (NASDAQ: SPEX) was launched in 1967 as a scientific research company. Spherix presently offers a diversified commercialization platform for protected technologies. The company continues to work on life sciences and drug development and presently is exploring opportunities in nutritional supplement products relying on its D-Tagatose natural sweetener as a GRAS ingredient. Spherix is committed to advancing innovation by active participation in all areas of the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation. Through its recently announced acquisition of several hundred patents issued to Harris Corporation Spherix intends to expand its activities in wireless communications and telecommunication sectors including antenna technology, Wi-Fi, base station functionality, and cellular.

Forward Looking Statements
Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While North South believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties. Thus, actual results could be materially different. North South expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Contact Information:
Anthony Hayes, CEO
North South Holdings Inc.
110 Greene Street; Suite 403
New York, NY 10012
347-855-6146
anthony@northsouthholdings.com
www.northsouthholdings.com

Tuesday, July 30th, 2013 Uncategorized Comments Off on (SPEX) Announces its First Settlement and License Agreement

(GALE) to Present at the 8th Annual JMP Securities Healthcare Conference

LAKE OSWEGO, Ore., July 2, 2013 (GLOBE NEWSWIRE) — Galena Biopharma (Nasdaq:GALE), a biopharmaceutical company developing innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care, today announced that Mark J. Ahn, Ph.D., President & CEO, will present a corporate update at the 8th Annual JMP Securities Healthcare Conference. The presentation will take place on Wednesday, July 10, 2013 at 10:30 a.m. ET at The St. Regis Hotel in New York, NY.

The presentation will be webcast and available on the Investors section of the Company’s website at www.galenabiopharma.com.

About Galena Biopharma

Galena Biopharma, Inc. (Nasdaq:GALE) is a Portland, Oregon-based biopharmaceutical company developing innovative, targeted oncology treatments that address major unmet medical needs to advance cancer care. For more information please visit us at www.galenabiopharma.com.

CONTACT: Remy Bernarda
         Senior Director, Communications
         (503) 405-8258
         rbernarda@galenabiopharma.com

Galena Biopharma, Inc.


				
								
								
				
Tuesday, July 30th, 2013 Uncategorized Comments Off on (GALE) to Present at the 8th Annual JMP Securities Healthcare Conference

(DOVR) Announces Earnings Release Date and Q2 Webcast

LITTLETON, MA–(Marketwired – Jul 29, 2013) – Dover Saddlery, Inc. (NASDAQ: DOVR) will release its second quarter 2013 results after the market closes on Thursday, August 8th, 2013.

Dover Saddlery executives will host a conference call to review results at 4:15pm ET on the same day. Interested parties may access the call by dialing +1-877-712-7037 or may listen to the call live via webcast. To access the webcast please go to http://investor.shareholder.com/DOVR/events.cfm and click on the webcast icon.

About Dover Saddlery, Inc.
Dover Saddlery, Inc. (NASDAQ: DOVR) is the leading multichannel retailer of equestrian products in the United States. Founded in 1975 in Wellesley, Massachusetts, by United States Equestrian team members, Dover Saddlery has grown to become The Source® for equestrian products. Dover offers a broad and distinctive selection of competitively priced, brand-name products for horse and rider through catalogs, the Internet and company-owned retail stores. Dover Saddlery, Inc. serves the English rider and through Smith Brothers, the Western rider. The Source®, Dover Saddlery® and Smith Brothers® are registered marks of Dover Saddlery.

For more information, please call 1-978-952-8062 or visit www.DoverSaddlery.com.

 

Janet Nittmann

Tel 978-952-8062 x218

Email Contact

Monday, July 29th, 2013 Uncategorized Comments Off on (DOVR) Announces Earnings Release Date and Q2 Webcast

(MWIV) Announces 2013 Third Quarter Results and Business Outlook Updates

BOISE, ID–(Marketwired – Jul 29, 2013) – MWI Veterinary Supply, Inc. (NASDAQ: MWIV) (the “Company”) announced financial results today for its third quarter ended June 30, 2013.

Highlights:

  • Total revenues were $606.4 million for the quarter, 9.3% higher than revenues for the same period in the prior fiscal year. Revenue growth was 11.3% in the United States.
  • Gross profit as a percentage of total revenues improved to 12.8% for the quarter, compared to 12.5% for the same period in the prior fiscal year.
  • Operating income was $26.5 million for the quarter, 13.9% higher than operating income for the same period in the prior fiscal year. Operating income as a percentage of total revenues improved to 4.4% for the quarter, compared to 4.2% for the same period in the prior fiscal year.
  • Net income was $16.8 million for the quarter, 15.7% higher than net income for the same period in the prior fiscal year. Diluted earnings per share were $1.32 for the quarter, compared to $1.15 for the same period in the prior fiscal year.
  • We generated cash flow from operations for the nine months ended June 30, 2013 of $60.5 million compared to cash provided by operations of $5.4 million for the same period in the prior fiscal year.
  • Internet sales to independent veterinary practices and producers in the United States grew by 25.8% for the quarter compared to the same period in the prior fiscal year.
  • Revenues from our veterinary pharmacy programs in the United States increased 11.6% to $51.3 million for the quarter compared to the same period in the prior fiscal year.
  • The rollout of our Diagnostics Unlimited program continued to perform very well as revenues to all customers reached approximately $43 million for the quarter.

“Our results for the quarter continued to be strong,” said Jim Cleary, President and Chief Executive Officer. “Our revenue growth in the United States was double-digit. Both our gross margin and cash flow exceeded our expectations. We experienced very positive results from our value-added services, and our diagnostics rollout continued to generate great results and customer service.”

Quarter ended June 30, 2013 compared to quarter ended June 30, 2012

Total revenues increased 9.3% to $606.4 million for the quarter ended June 30, 2013, compared to $554.7 million for the quarter ended June 30, 2012. Revenue growth in the United States was 11.3% for the quarter ended June 30, 2013, compared to the quarter ended June 30, 2012. Organic revenues were flat in the United Kingdom but decreased by 3.0% related to foreign currency translation. Commissions increased 4.8% to $4.8 million for the quarter ended June 30, 2013, compared to $4.6 million for the quarter ended June 30, 2012.

Gross profit increased by 11.5% to $77.5 million for the quarter ended June 30, 2013, compared to $69.5 million for the quarter ended June 30, 2012. Gross profit as a percentage of total revenues improved to 12.8% for the quarter ended June 30, 2013, compared to 12.5% for the quarter ended June 30, 2012 due to an improvement in vendor rebates as a percentage of total revenues. Vendor rebates for the quarter ended June 30, 2013 increased by approximately $3.0 million compared to the quarter ended June 30, 2012 primarily due to the timing of manufacturer rebate programs and growth in revenues.

Operating income increased 13.9% to $26.5 million for the quarter ended June 30, 2013, compared to $23.3 million for the quarter ended June 30, 2012. SG&A expenses increased 10.2% to $48.4 million for the quarter ended June 30, 2013, compared to $44.0 million for the quarter ended June 30, 2012. SG&A expenses as a percentage of total revenues were 8.0% for the quarter ended June 30, 2013, compared to 7.9% for the quarter ended June 30, 2012. The increase in SG&A expenses was primarily due to an increase in compensation and benefit costs.

Net income increased 15.7% to $16.8 million for the quarter ended June 30, 2013, compared to $14.5 million for the quarter ended June 30, 2012. Diluted earnings per share were $1.32 and $1.15 for the quarter ended June 30, 2013 and 2012, respectively, an increase of 14.8%.

As of June 30, 2013, we had $11.8 million outstanding on our credit facilities after acquiring substantially all of the assets of PCI Animal Health for approximately $17 million on December 31, 2012, compared to $48.1 million as of September 30, 2012.

Nine months ended June 30, 2013 compared to nine months ended June 30, 2012

Total revenues increased 14.4% to $1.742 billion for the nine months ended June 30, 2013, compared to $1.524 billion for the nine months ended June 30, 2012. Excluding the revenues resulting from the acquisition of the assets of Micro during the month of October 2012, revenue growth in the United States was 12.7% for the nine months ended June 30, 2013, compared to the nine months ended June 30, 2012. We acquired the assets of Micro on October 31, 2011, and therefore did not own Micro for one month of the comparable nine month period in the prior fiscal year. Revenues resulting from the acquisition of Micro were $28.7 million during the month of October 2012. Revenue growth in the United Kingdom was 11.0% for the nine months ended June 30, 2013, consisting of 11.6% organic growth reduced by 0.6% related to foreign currency translation. Commissions increased 12.1% to $14.2 million for the nine months ended June 30, 2013, compared to $12.7 million for the nine months ended June 30, 2012.

Gross profit increased by 15.3% to $229.1 million for the nine months ended June 30, 2013, compared to $198.7 million for the nine months ended June 30, 2012. Gross profit as a percentage of total revenues improved to 13.1% for the nine months ended June 30, 2013, compared to 13.0% for the nine months ended June 30, 2012 due to an improvement in vendor rebates as a percentage of total revenues, offset in part by a decrease in product margin. Vendor rebates for the nine months ended June 30, 2013 increased by approximately $6.9 million compared to the nine months ended June 30, 2012 primarily due to the timing of manufacturer rebate programs and growth in revenues.

Operating income increased 17.8% to $77.8 million for the nine months ended June 30, 2013, compared to $66.1 million for the nine months ended June 30, 2012. SG&A expenses increased 14.3% to $143.8 million for the nine months ended June 30, 2013, compared to $125.8 million for the nine months ended June 30, 2012. SG&A expenses as a percentage of total revenues were 8.3% for each of the nine months ended June 30, 2013 and 2012. The increase in SG&A expenses was primarily due to an increase in compensation and benefit costs and Micro expenses for the month of October 2012.

Net income increased 19.0% to $48.6 million for the nine months ended June 30, 2013, compared to $40.9 million for the nine months ended June 30, 2012. Diluted earnings per share were $3.83 and $3.23 for the nine months ended June 30, 2013 and 2012, respectively, an increase of 18.6%.

Business Outlook

The Company estimates that for the fiscal year ending September 30, 2013, revenues will be from $2.330 billion to $2.360 billion, which represents growth of 12.3% to 13.7% compared to revenues in fiscal year 2012. The Company estimates that diluted earnings per share will be from $4.89 to $4.94 per share, which represents growth of 15.6% to 16.8% compared to diluted earnings per share in fiscal year 2012. The Company’s previous guidance for the fiscal year ending September 30, 2013 was revenues from $2.320 billion to $2.360 billion and diluted earnings per share of $4.79 to $4.89. These estimates are based on the Company’s current calendar-year and quarterly vendor contracts which typically undergo annual renegotiation and which may include terms such as rebates, commissions and exclusivity requirements.

Conference Call

The Company will be hosting a conference call on July 29, 2013 at 10:00 a.m. Eastern time to discuss in greater detail these results and its fiscal year 2013 business outlook. Participants can access the conference call by dialing (877) 638-4561 and international callers can access the conference call by dialing (720) 545-0002. The conference call will also be carried live on the Company’s web site at www.mwivet.com. Audio replay will be made available through August 5, 2013 by calling (855) 859-2056 for calls within the United States or (404) 537-3406 for international calls using the passcode 19215654. The conference call will also be available on the Company’s web site, www.mwivet.com.

MWI is a leading distributor of animal health products across the United States of America and United Kingdom. MWI sells both companion animal and production animal products including pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, supplies, pet food, capital equipment and nutritional products. MWI also is a leading innovator and provider of value-added services and technologies used by veterinarians and producers. For more information about MWI, please visit our website at www.mwivet.com. For investor relations information please contact Mary Pat Thompson, Senior Vice President of Finance and Administration, and Chief Financial Officer at (208) 955-8930 or email investorrelations@mwivet.com.

Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Important assumptions and other important factors that could cause actual results to differ materially from those set forth in the forward-looking information include the impact of vendor consolidation on our business; changes in or availability of vendor contracts or rebate programs; exclusivity requirements with certain vendors that may prohibit us from distributing competing products manufactured by other vendors or margin reductions if we become a non-exclusive distributor; transitional challenges associated with acquisitions, including the failure to achieve anticipated synergies; vendor rebates based upon attaining certain growth goals; changes in the way vendors introduce/deliver products to market; a disruption caused by adverse weather (i.e. drought) or other natural conditions or disasters; possible changes in the use of feed additives (antibiotics, growth promotants) used in the production animal markets due to trade restrictions, consumer concern and/or government regulations; seasonality; unforeseen litigation; risks associated with our international operations; financial risks associated with acquisitions and investments; the impact of general economic trends on our business; the recall of a significant product by one of our vendors; extended shortage or backorder of a significant product by one of our vendors; the timing and effectiveness of marketing programs or price changes offered by our vendors; the timing of the introduction of new products and services by our vendors; our intellectual property rights may be inadequate to protect our business; the ability to borrow on our credit line, extend the terms of our credit line or obtain alternative financing on favorable terms or at all; risks from potential increases in variable interest rates; the impact of tightening credit standards and/or access to credit on behalf of our customers and suppliers; inability to ship products to the customer as a result of technological or shipping disruptions; and competition. Other factors include changes in the rate of inflation; changes in state or federal legislation or regulation; the continued safety of the products the Company sells; and changes in the general economy. Investors should also be aware that while we do, from time to time, communicate with securities analysts, it is against our policy to disclose any material non-public information or other confidential commercial information. Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Furthermore, we have a policy against issuing or confirming financial forecasts or projections issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the responsibility of MWI Veterinary Supply, Inc.

MWI Veterinary Supply, Inc.
(Unaudited – Dollars and shares in thousands, except per share amounts)
Condensed Consolidated Quarter Ended June 30, Nine Months Ended June 30,
Statements of Income 2013 2012 2013 2012
Revenues $ 606,443 $ 554,669 $ 1,742,405 $ 1,523,740
Cost of product sales 528,932 485,150 1,513,286 1,325,089
Gross profit 77,511 69,519 229,119 198,651
Selling, general and administrative expenses 48,432 43,959 143,820 125,799
Depreciation and amortization 2,545 2,273 7,450 6,739
Operating income 26,534 23,287 77,849 66,113
Interest expense (173 ) (249 ) (599 ) (684 )
Other income 229 241 820 771
Income before taxes 26,590 23,279 78,070 66,200
Income tax expense (9,809 ) (8,776 ) (29,438 ) (25,323 )
Net income $ 16,781 $ 14,503 $ 48,632 $ 40,877
Net income per share – diluted $ 1.32 $ 1.15 $ 3.83 $ 3.23
Weighted average common
shares outstanding – diluted 12,713 12,662 12,705 12,638
Condensed Consolidated Balance Sheets June 30,
2013
September 30,
2012
Assets
Cash $ 531 $ 514
Receivables, net 310,303 288,922
Inventories 283,589 251,375
Prepaid expenses and other current assets 6,006 10,094
Deferred income taxes 2,853 1,580
Total current assets 603,282 552,485
Property and equipment, net 37,772 35,784
Goodwill 70,588 61,841
Intangibles, net 40,428 38,706
Other assets, net 8,119 7,567
Total Assets $ 760,189 $ 696,383
Liabilities
Credit facilities $ 11,781 $ 48,080
Accounts payable 308,987 258,741
Accrued expenses and other current liabilities 20,070 19,952
Current portion of capital lease obligations 127 337
Total current liabilities 340,965 327,110
Deferred income taxes 8,690 7,180
Long-term debt and capital lease obligations 33 104
Other long-term liabilities 2,290 2,687
Stockholders’ Equity 408,211 359,302
Total Liabilities and Stockholders’ Equity $ 760,189 $ 696,383

Contact:
Mary Pat Thompson
Senior Vice President of Finance and Administration and Chief Financial Officer
(208) 955-8930

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(NSPR) Announces First Patient Enrolled in U.S. Registration Trial for MGuard™ Prime EPS

BOSTON and TEL AVIV, Israel, July 29, 2013 /PRNewswire/ — InspireMD, Inc. (NYSE MKT: NSPR) (“Inspire” or the “Company”), a leader in embolic protection stents, said the first patient has been enrolled in the Master II IDE clinical trial to evaluate the safety and effectiveness of the MGuard™ Prime Embolic Protection Stent (EPS) in patients suffering from ST Elevation Myocardial Infarction (STEMI).

The multi-center, randomized trial is expected to include up to 70 sites in the U.S. and Europe and as many as 1,114 patients. The results are intended to support the Company’s Investigational Device Exemption (IDE) application with the U.S. Food and Drug Administration (FDA) to market the MGuard™ Prime MicroNet™ covered coronary stent system in the U.S.

The trial has two co-primary endpoints: superiority in complete ST resolution and non-inferiority in death and target vessel myocardial infarction. In addition, a 356 patient sub-study will be conducted to assess the effect of the MGuard Prime™ EPS on infarct size, as measured by Magnetic Resonance Imaging (MRI).

The trial’s principal investigators are Gregg Stone, M.D. of New York Presbyterian Hospital and Columbia University Medical Center in New York City, and Jose P. S. Henriques, M.D. of the Academic Medical Center in Amsterdam.

The first procedure was performed at ZNA Middelheim by Stefan Verheye, M.D. “Distal embolization and no-reflow are severe concerns when treating our STEMI patients. From our experience over the last two years, the MGuard Prime EPS has improved patient outcome and led to brilliant results, thanks to its unique protective mesh,” said Dr. Verheye. “I am excited about participating in the MASTER II Trial and enthusiastic about its potential impact on patient care worldwide.”

“Enrolling our first patient in MASTER II is a very important milestone for the company. We are committed to advancing patient care through robust clinical research,” said Alan Milinazzo, InspireMD’s CEO and President. “MASTER II provides another important opportunity for us to demonstrate the safety of MGuard EPS and to validate its effectiveness compared to current standard of care treatment for STEMI patients.”

The FDA trial, known as MASTER II (MGuard™ for Acute ST Elevation Reperfusion), is the second in a series of randomized clinical studies intended to validate the safety and effectiveness of the MGuard™ EPS platform and achieve registration with appropriate regulatory authorities worldwide.

InspireMD’s MGuard™ EPS technology previously yielded positive results in the MASTER Trial findings, showing a statistically and clinically significant acute advantage with regard to ST segment resolution. As a result, the MGuard™ EPS may hold the potential to lower the incidence of adverse events and improve the survival of patients suffering from acute myocardial infarction.

About Stenting and MGuard™ EPS

Standard stents were not engineered for heart attack patients. They were designed for treating stable angina patients whose occlusion is different from that of an occlusion in a heart attack patient.

In acute heart attack patients, the plaque or thrombus is unstable and often breaks up as the stent is implanted causing downstream blockages (some of which can be fatal) in a significant portion of heart attack patients.

The MGuard™ EPS is integrated with a precisely engineered micro net mesh that prevents the unstable arterial plaque and thrombus (clots) that caused the heart attack blockage from breaking off.

While offering superior performance relative to standard stents in STEMI patients with regard to ST segment resolution, the MGuard™ EPS requires no change in current physician practice – an important factor in promoting acceptance and general use in time-critical emergency settings.

About InspireMD, Inc.

InspireMD seeks to utilize its proprietary MGuard technology to make its products the industry standard for embolic protection stents and to provide a superior solution to the key clinical issues of current stenting in patients with a high risk of distal embolization, no reflow and major adverse cardiac events.

InspireMD intends to pursue applications of this technology in coronary, carotid and peripheral artery procedures. InspireMD’s common stock is quoted on the NYSE MKT under the ticker symbol NSPR.

MGuard™ EPS is CE Mark approved. It is not approved for sale in the U.S. by the FDA at this time.

Forward-looking Statements:

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) market acceptance of our existing and new products, (ii) negative clinical trial results or lengthy product delays in key markets, (iii) an inability to secure regulatory approvals for the sale of our products, (iv) intense competition in the medical device industry from much larger, multi-national companies, (v) product liability claims, (vi) our limited manufacturing capabilities and reliance on subcontractors for assistance, (vii) insufficient or inadequate reimbursement by governmental and other third party payers for our products, (viii) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (ix) legislative or regulatory reform of the healthcare system in both the U.S. and foreign jurisdictions, (x) our reliance on single suppliers for certain product components, (xi) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain and (xii) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Transition Report on Form 10-K/T and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

For additional information:
InspireMD Desk
Redington, Inc.
+1-212-926-1733
+1-203-222-7399
inspiremd@redingtoninc.com

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(PRAN) Doses First Patient in PBT2 Alzheimer’s Extension Study

MELBOURNE, AUSTRALIA–(Marketwired – Jul 29, 2013) – Prana Biotechnology (NASDAQ: PRAN) (ASX: PBT) today announced that the first patient has been dosed in the 12-month open-label extension study with Alzheimer’s Disease patients participating in Prana’s Phase 2 IMAGINE trial.

Patients who have completed the full 12-month term of the IMAGINE trial are eligible for participation in the open-label Extension study. All participants in the Extension study will receive a 250mg once daily oral dose of PBT2 for an additional 12 months.

The IMAGINE trial is a 12-month double-blind Phase 2 clinical trial of PBT2 in mild or prodromal Alzheimer’s patients. The Extension study does not alter the completion and reporting on the IMAGINE trial with results expected in March 2014.

Prana’s Chairman and CEO, Geoffrey Kempler, said: “We anticipate a high level of patient interest in participating in this Extension study given the support expressed from the physicians involved.”

About Prana Biotechnology Limited
Prana Biotechnology was established to commercialise research into age-related neurodegenerative disorders. The Company was incorporated in 1997 and listed on the Australian Securities Exchange in March 2000 and listed on NASDAQ in September 2002. Researchers at prominent international institutions including The University of Melbourne, The Mental Health Research Institute (Melbourne) and Massachusetts General Hospital, a teaching hospital of Harvard Medical School, contributed to the discovery of Prana’s technology.

For further information please visit the Company’s web site at www.pranabio.com.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. The Company has tried to identify such forward-looking statements by use of such words as “expects,” “intends,” “hopes,” “anticipates,” “believes,” “could,” “may,” “evidences” and “estimates,” and other similar expressions, but these words are not the exclusive means of identifying such statements. Such statements include, but are not limited to any statements relating to the Company’s drug development program, including, but not limited to the initiation, progress and outcomes of clinical trials of the Company’s drug development program, including, but not limited to, PBT2, and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to the difficulties or delays in financing, development, testing, regulatory approval, production and marketing of the Company’s drug components, including, but not limited to, PBT2, the ability of the Company to procure additional future sources of financing, unexpected adverse side effects or inadequate therapeutic efficacy of the Company’s drug compounds, including, but not limited to, PBT2, that could slow or prevent products coming to market, the uncertainty of patent protection for the Company’s intellectual property or trade secrets, including, but not limited to, the intellectual property relating to PBT2, and other risks detailed from time to time in the filings the Company makes with Securities and Exchange Commission including its annual reports on Form 20-F and its reports on Form 6-K. Such statements are based on management’s current expectations, but actual results may differ materially due to various factions including those risks and uncertainties mentioned or referred to in this press release. Accordingly, you should not rely on those forward-looking statements as a prediction of actual future results.

Contacts:
PranaBiotechnology Limited
+61 3 9349 4906

USA:
Vivian Chen and Christopher Chu
Grayling
T: +1 646-284-9472, +1 646-284-9426
E: Vivian.Chen@grayling.com, Christopher.chu@grayling.com

Media:
Ivette Almeida
T: 646-284-9455
E:
Ivette.almeida@grayling.com

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(URRE) Announces Second Quarter Conference Call and Webcast

LEWISVILLE, Texas, July 29, 2013 (GLOBE NEWSWIRE) — Uranium Resources, Inc. (Nasdaq:URRE) (“URI”) will host a conference call and webcast on Friday, August 9, 2013 at 11:30 a.m. ET. During the call, Christopher M. Jones, President and CEO, and Jeffrey L. Vigil, Vice President and Chief Financial Officer, will provide an update on URI’s strategies, outlook, and progress in advancing its Texas and New Mexico properties. A question-and-answer session will follow.

The URI conference call can be accessed by calling (201) 689-8471. The live webcast can be monitored at www.uraniumresources.com.

A telephonic replay will be available from 2:30 p.m. ET the day of the teleconference until Friday, August 16, 2013. To listen to the archived call, dial (858) 384-5517 and enter replay pin number 417986. Alternatively, the webcast replay can be heard on the Company’s website and a transcript will also be posted, once available.

About Uranium Resources, Inc.

Uranium Resources, Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced uranium by in-situ recovery (ISR) methods in the state of Texas and currently has a number of initiatives underway to return the Company to production. URI has over 206,600 acres of uranium mineral holdings and 144.8 million pounds of in-place mineralized uranium material in New Mexico and an NRC license to produce up to 3 million pounds of uranium per year. URI has an additional 664,000 pounds of in-place reserves in Texas. The Company acquired these properties over the past 20 years along with an extensive information database of historic drill hole logs, assay certificates, maps and technical reports.

Uranium Resources routinely posts news and other information about the Company on its website at www.uraniumresources.com.

CONTACT: Investor Contact:
         Deborah K. Pawlowski
         Kei Advisors LLC
         Phone: 716.843.3908
         Email: dpawlowski@keiadvisors.com
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(SPEX) Closes Rockstar Patent Acquisition Transaction

Spherix Closes Rockstar Patent Acquisition Transaction and Enhances Its Patent Portfolio in Wireless Communications and Telecommunication Sectors — Rockstar Acquires Equity Stake in Spherix-Venture to Be Headed by Seasoned Monetization Executive

TYSONS CORNER, VA–(Marketwired – Jul 29, 2013) – Spherix Incorporated (NASDAQ: SPEX) an intellectual property development and life sciences company, today announced that it has closed the previously announced agreement to acquire a group of seven patents in the mobile communication sector, from Rockstar Consortium, the owner of over 4,000 patents formerly owned by Nortel Networks.

Under the terms of the agreement, Spherix acquired four families of mobile communication patents in exchange for initial consideration of up-front cash and $1,000,000 in Spherix common stock issued at $5.65 per share. Rockstar will also receive a percentage of future profits after recovery of patent monetization costs and an initial priority return on investment to Spherix. The shares are subject to a lockup agreement restricting future sales, subject to the satisfaction of certain price and volume targets.

Spherix Interim CEO Harvey Kesner stated, “We believe that we have entered a new phase of our development and are pleased to announce successful completion of our recent patent and monetization partnership with Rockstar. We have been working with our colleagues at Rockstar to identify opportunities for collaboration between us and this resulted in the selection of this suite of seven patents that cover mobile communication devices. We selected a suite of patents with well documented and easily understandable technology so that we can quickly proceed to seek agreements to support commercialization efforts and enforcement, if required. This acquisition, coupled with our recently announced acquisition of several hundred patents issued to Harris Corporation, allows us to expand our activities in the wireless communications and telecommunication sectors including antenna technology, Wi-Fi, base station functionality, and cellular. Our incoming CEO Anthony Hayes was instrumental in negotiating these contracts and securing appropriate patents for enforcement. As has been widely reported, Anthony is a seasoned monetization executive with numerous ‘wins’ under his belt, who will oversee our licensing and enforcement efforts and has broad access to patent owners and inventors.”

About Rockstar

Rockstar Consortium was launched in 2011 as an intellectual property (IP) licensing company. Based on Nortel Networks’ groundbreaking innovation engine, Rockstar manages a highly valued patent portfolio relevant to virtually all telecom and high tech services and devices. Rockstar is deeply committed to advancing innovation worldwide through its patent licensing program. To learn more about Rockstar please visit www.ip-rockstar.com.

About Spherix

Spherix Incorporated was launched in 1967 as a scientific research company. Spherix presently offers a diversified commercialization platform for protected technologies. The company continues to work on life sciences and drug development and presently is exploring opportunities in nutritional supplement products relying on its D-Tagatose natural sweetener as a GRAS ingredient. Spherix is committed to advancing innovation by active participation in all areas of the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation. Through its recently announced acquisition of several hundred patents issued to Harris Corporation Spherix intends to expand its activities in wireless communications and telecommunication sectors including antenna technology, Wi-Fi, base station functionality, and cellular.

Forward Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission (the “SEC”), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Investor Relations
Phone: (703) 992-9325

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(BKR) Enters into Agreement to Be Acquired by Integrated Mission Solutions

Michael Baker Corporation (“Baker”) (NYSE MKT:BKR) announced today that it has entered into a definitive merger agreement to be acquired by Integrated Mission Solutions, LLC (“IMS”), an affiliate of DC Capital Partners, LLC (“DC Capital”).

Under the terms of the agreement, which has been unanimously approved by Baker’s Board of Directors, Baker shareholders will receive $40.50 in cash for each share of common stock that they own, in a transaction valued at $396.9 million. The per share price represents a 37% premium to Baker’s closing share price of $29.60 on July 26, 2013, a 55% premium to the average 90-day share price, and a 93% premium to the share price on December 18, 2012, the day before DC Capital publicly proposed to acquire Baker.

Under the terms of the agreement, a subsidiary of IMS will commence a tender offer to acquire all of the outstanding Baker common shares. Baker’s Board of Directors unanimously approved the offer. Any shares not tendered in the offer will be acquired in a merger at the same cash price as paid in the tender offer. Closing of the tender offer is conditioned upon customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close late in the third quarter or early in the fourth quarter of 2013.

“Baker is a well-known and highly regarded firm in the architecture, engineering and construction services industry. The transaction, which we believe delivers outstanding value to shareholders, results from a thorough, extensive strategic assessment process initiated by the Board early this year,” said Baker’s Robert N. Bontempo, Chairman of the Board of Directors. “We believe that this union with IMS will provide substantial value to shareholders, while reinforcing our commitment to our customers to continuously provide them with excellent service and high quality professional services.”

In an effort to preserve Baker’s heritage and culture, IMS has agreed to retain the Baker name, maintain Baker’s presence in the Pittsburgh area, and keep the current organization and staff of Baker essentially intact.

Thomas J. Campbell, Chairman of IMS and Founder of DC Capital, said, “This is a significant step for both companies. The combination of Michael Baker and IMS will create a company with over $1.0 billion in revenue, approximately 5,000 employees, and a platform with global reach. IMS has a strong presence internationally with a history of operating on all five continents. This geographic footprint in support of our customers in growth areas such as infrastructure, development, intelligence, and technology combined with Michael Baker’s complementary capabilities, highly certified, security cleared workforce, and distinctive North American presence will greatly enhance our collective ability to manage and execute larger projects.”

Mr. Campbell also stated, “Michael Baker and IMS share a common employee and community-oriented culture. We both believe that our people are our most important asset and we share a commitment to investing in their professional development. Similarly, we believe our collective mission is to help our customers achieve their goals and objectives. Michael Baker has a depth of talent in all ranks within the organization. Michael Baker has a talented management team and we have been impressed by the interim leadership provided by H. James McKnight, Chief Legal Counsel, and Michael J. Zugay, Chief Financial Officer, who together form the Office of the Chief Executive. Our goal is to ensure a continuity of Michael Baker’s over 70 year legacy and culture. As such, the Michael Baker name and brand will remain, three members of the Michael Baker Board of Directors will join the combined company Board, and the headquarters for Michael Baker will remain in Moon Township, Pennsylvania. As a Pennsylvania company we have been impressed by Michael Baker’s commitment to supporting the Pennsylvania community and we support the protection of this tradition.”

The transaction will be financed through a combination of cash provided by IMS as well as debt financing that has been committed, subject to the terms of a commitment letter, by Jefferies Finance LLC. Jefferies LLC is also serving as exclusive financial advisor to IMS and DC Capital. Arnold & Porter LLP is serving as legal advisor to IMS and DC Capital.

Houlihan Lokey is serving as financial advisors to Baker in this transaction. Jones Day and K&L Gates are serving as legal advisors to Baker.

About Baker

Michael Baker Corporation (www.mbakercorp.com) provides engineering, design, planning and construction services for its clients’ most complex challenges worldwide. The firm’s primary business areas are architecture, aviation, defense, environmental, geospatial, homeland security, municipal & civil, oil & gas, rail & transit, telecommunications & utilities, transportation, urban development and water. With more than 3,000 employees in over 100 offices across the United States, Baker is focused on creating value by delivering innovative and sustainable solutions for infrastructure and the environment. Learn more at www.mbakercorp.com.

About Integrated Mission Solutions, LLC

Integrated Mission Solutions, LLC (“IMS”) is a rapidly growing, global provider of a comprehensive continuum of mission critical services and solutions including, but not limited to: Engineering and Construction, Technical and Professional Services, Full Life Cycle Support, Strategic Consulting and Competitive Intelligence, Intelligence Operational Support and Training, Intelligence Community Information Technology Solutions, Research, Test, Evaluation, Procurement, and Software Development, and Enterprise and Communications Solutions. IMS has a diverse customer base with a primary focus on the United States Intelligence Community, Department of State, Department of Defense, Department of Homeland Security, United States Army Corps of Engineers, and other federal agencies. Learn more at www.integratedmissionsolutionsllc.com.

About DC Capital Partners, LLC

DC Capital Partners, LLC is a private investment firm headquartered in Washington, DC focused on making control investments in middle market companies that provide differentiated and innovative services and solutions to the United States government. DC Capital’s investment strategy emphasizes sectors that it believes offer the most compelling growth opportunities including, but not limited to, Intelligence, Information Technology, Development, Security, Infrastructure, Construction, and Environmental services. Learn more at www.dccapitalpartners.com.

Important Information About the Tender Offer

This news release is not an offer to purchase or a solicitation of an offer to sell securities of Baker. The planned tender offer by Integrated Mission Solutions for all of the outstanding shares of common stock of Baker has not been commenced. On commencement of the tender offer, Integrated Mission Solutions will mail to Baker’s shareholders an offer to purchase and related materials and Baker will mail to its shareholders a recommendation statement with respect to the tender offer. Integrated Mission Solutions will file its offer to purchase with the Securities and Exchange Commission (“SEC”) on Schedule TO, and Baker will file its recommendation statement with the SEC on Schedule 14D-9. Baker shareholders are urged to read these materials carefully when they become available, since they will contain important information, including the terms and conditions of the offer. Baker shareholders may obtain a free copy of these materials (when they become available) and other documents filed by Integrated Mission Solutions or Baker with the SEC at the website maintained by the SEC at www.sec.gov. These materials also may be obtained (when they become available) for free by contacting the information agent in the tender offer (when one is selected).

Note with respect to Forward-Looking Statements:

(This press release contains forward-looking statements with respect to the tender offer and related transactions, including the benefits expected from the acquisition and the expected timing of the completion of the transaction. When used in this press release, the words “can,” “will,” “intends,” “expects,” “is expected,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including uncertainties regarding the timing of the closing of the transaction and the risk that the transaction will not close. Factors that could cause actual results to differ materially include the following: the risk that a majority of Baker shares do not tender their stock in the tender offer, the risk that the company experiences a material adverse change giving IMS the right not to close the transaction, the risk that IMS is unable to close on its financing and the risk that Baker’s businesses will suffer due to uncertainty related to the transaction, the competitive environment in our industry and competitive responses to the transaction. Baker does not assume any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors that could affect Baker’s financial results is provided in documents filed by Baker with the SEC, including Baker’s recent filings on Form 10-Q and Form 10-K.)

Monday, July 29th, 2013 Uncategorized Comments Off on (BKR) Enters into Agreement to Be Acquired by Integrated Mission Solutions

(SNTA) Announces ENCHANT-1 Breast Cancer Results

Synta Pharmaceuticals Corp. (NASDAQ: SNTA) announced today that preliminary results from the ENCHANT-1 clinical trial, which evaluates ganetespib monotherapy in patients with newly diagnosed locally advanced or metastatic HER2 positive or triple-negative breast cancer (TNBC), achieved the prespecified criteria for advancing to the second stage of the trial.

Of the initial five HER2-positive patients enrolled in the study, two achieved objective tumor response and two achieved stable disease (SD) within the three cycles of treatment on study (12 weeks). Of the initial ten TNBC patients enrolled and evaluable for response, two achieved objective tumor response and three achieved SD following treatment with ganetespib monotherapy.

ENCHANT-1 is a ‘window-of-opportunity’ study designed to evaluate the clinical activity of single-agent ganetespib over a 12-week period preceding standard first line treatment. The protocol specifies advancing to the second stage of enrollment in each cohort if there was at least one objective tumor response out of the initial fifteen evaluable patients specified for Stage 1. This criterion was achieved in both cohorts, and therefore both cohorts will continue to enroll patients up to a total of 33 evaluable patients per cohort.

Metabolic response was also assessed in the study, by comparing baseline and week 3 PET scans. Of the five HER2-positive patients, four achieved metabolic responses. Of the 13 TNBC patients with post-baseline PET scans, six achieved metabolic response.

“Ganetespib appears to be what many of us in the Hsp90 field have been seeking for many years: a well tolerated, highly potent Hsp90 inhibitor that is clinically active in tough-to-treat cancers,” said Dr. Neil Spector, Co-Director of Developmental Therapeutics Program, Duke University and an investigator on the trial. “Given the known role of Hsp90 in fueling breast cancer growth and metastasis, and the single-agent activity seen with ganetespib, I believe this compound has potential to be an important new therapy for women with breast cancer.”

Among the patients enrolled in the study is a 68 year old woman diagnosed with inoperable TNBC, including extensive disease that had spread to her lymph nodes. The week 3 PET scan showed metabolic response in all lesions and the week 12 physical exam showed no evidence of tumor. Treatment was adjudicated a complete clinical response, and her disease was restaged from inoperable to operable. Earlier this month, she successfully completed a mastectomy with curative intent.

“It is quite remarkable to see such a strong clinical response in this devastating disease, particularly with a single-agent regimen this well tolerated,” said Dr. Tamas Hickish, Professor at the Royal Bournemouth Hospital, Dorset, UK, the treating physician and an investigator on the study. “This outcome strongly supports the further investigation of ganetespib either as a single-agent or in combination with standard of care treatments used in this setting.”

Consistent with prior experience in over 700 patients treated with ganetespib to date, the most common adverse event seen with ganetespib in the ENCHANT-1 trial was mild to moderate, transient diarrhea, which was generally manageable with standard medication.

“These encouraging findings confirm prior signals of clinical activity seen with ganetespib in breast cancer,” said Dr. Iman El-Hariry, Vice President of Clinical Research at Synta. “The favorable safety profile, clear single-agent clinical activity, and strong rationale for combination therapy suggest ganetespib may have broad potential utility in breast cancer. Taxanes in particular are widely used in breast cancer. The positive results for the combination of ganetespib with docetaxel in lung cancer provide strong rationale for exploring the taxane combination regimen in breast cancer as well.”

The expansion of the ENCHANT-1 trial will also allow for evaluation of the combination of weekly paclitaxel and ganetespib. Separately, an investigator-sponsored study evaluating the combination of ganetespib, paclitaxel, and trastuzumab in HER2-positive patients is initiating at MSKCC and NYU.

Results from ENCHANT-1 are expected to be presented at a medical meeting later this year.

About Ganetespib

Ganetespib, an investigational drug candidate, is a selective inhibitor of heat shock protein 90 (Hsp90), a molecular chaperone which controls the folding and activation of a number of client proteins that drive tumor development and progression. Many solid and hematologic tumors are dependent on Hsp90 client proteins including proteins involved in “oncogene addiction” (ALK, HER2, mutant BRAF and EGFR, androgen receptor, estrogen receptor, JAK2); proteins involved in resistance to chemotherapy and radiation therapy (ATR, BCL2, BRCA1/2, CDK1/4, CHK1, survivin, and WEE1); proteins involved in angiogenesis (HIF-1alpha, VEGFR, PDFGR, and VEGF); and proteins involved in metastasis (MET, RAF, AKT, MMPs, HIF-1alpha, and IGF-1R). In preclinical models, inhibition of Hsp90 by ganetespib results in the inactivation, destabilization, and eventual degradation of these cancer-promoting proteins. Ganetespib is being evaluated in over 20 clinical trials including a Phase 3 trial in non-small cell lung adenocarcinoma, as well as additional trials in lung, breast, colorectal, and hematologic malignancies. Information on these trials can be found at www.clinicaltrials.gov.

About the ENCHANT-1 Clinical Trial

ENCHANT-1 is a proof-of-concept, ”window-of-opportunity” trial designed to evaluate single-agent ganetespib safety and clinical activity in locally advanced or first line metastatic HER2-positive and triple-negative breast cancer. The trial will also evaluate the combination of ganetespib with paclitaxel. More information about this trial can be found at www.clinicaltrials.gov (NCT01677455)

About Breast Cancer

Breast cancer is the most frequent cancer in women, accounting for 458,000 deaths worldwide in 2008, according to the World Health Organization. In the U.S., the American Cancer Society estimates that about 297,000 cases of breast cancer will be diagnosed in 2013. Breast cancer is often characterized in the context of three biomarkers: ER/PR positive, HER2-positive, or negative for all three (triple-negative). Standard treatment for the first two categories includes therapies targeting hormonal or HER2 signaling pathways. There are no established targeted therapies for patients with triple-negative disease, which accounts for approximately 15% of all breast cancer and is associated with poor patient prognosis.

About Synta Pharmaceuticals

Synta Pharmaceuticals Corp. is a biopharmaceutical company focused on discovering, developing, and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions, including cancer and chronic inflammatory diseases. Synta has a unique chemical compound library, an integrated discovery engine, and a diverse pipeline of clinical- and preclinical-stage drug candidates with distinct mechanisms of action and novel chemical structures. All Synta drug candidates were invented by Synta scientists using our compound library and discovery capabilities. For more information, please visit www.syntapharma.com.

Safe Harbor Statement

This media release may contain forward-looking statements about Synta Pharmaceuticals Corp. Such forward-looking statements can be identified by the use of forward-looking terminology such as “will”, “would”, “should”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “may”, “estimates”, “predicts”, “projects”, or similar expressions intended to identify forward-looking statements. Such statements, including statements relating to the developments and progress of our clinical and preclinical programs, reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including those described in “Risk Factors” of our Form 10-K for the year ended December 31, 2012 as filed with the Securities and Exchange Commission. Synta undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise, except as required by law.

Monday, July 29th, 2013 Uncategorized Comments Off on (SNTA) Announces ENCHANT-1 Breast Cancer Results

(MNTA) Announces Potential for 2014 Market Entry of Generic Copaxone®

Federal Circuit Invalidates 2015 Copaxone Patent

CAMBRIDGE, Mass., July 26, 2013 (GLOBE NEWSWIRE) — Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA) today announced that the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”) invalidated several Copaxone patents asserted against the company by Teva Pharmaceuticals, including the only asserted patent to expire in September 2015. Today’s decision narrows a 2012 decision by the District Court for the Southern District of New York (the “District Court”) and potentially clears the way for market entry of generic Copaxone as early as May 2014, the expiration date of the remaining asserted patents, pending U.S. Food and Drug approval (FDA).

“We are extremely pleased with today’s ruling,” said Craig Wheeler, President and Chief Executive Officer of Momenta. “Given the decision, we and Sandoz will continue to work with FDA to advance review of the ANDA for generic Copaxone in order for this product to be approved and available to patients as soon as possible.”

The case involved nine patents asserted by Teva for patent infringement associated with submission of an Abbreviated New Drug Application (ANDA) to FDA for generic Copaxone. The asserted patents included seven FDA Orange Book patents and one non-Orange Book patent expiring in May 2014 and one non-Orange Book patent expiring in September 2015. The case is Teva Pharmaceuticals v. Sandoz and Momenta and Mylan et al., case numbers 2012-1567, -1568, -1569, -1570.

In 2012, the District Court found all nine patents valid and infringed and issued injunctions enjoining FDA from approving any ANDA for generic Copaxone until May 2014, and enjoining parties in the case from making, using, offering for sale, or selling generic Copaxone until September 2015. Today’s decision means that the injunctions will be modified to reflect the Federal Circuit’s decision, potentially permitting generic Copaxone to be available to patients when remaining asserted patents covering Copaxone expire in 2014.

The ANDA for generic Copaxone is under FDA review and continues to advance. Momenta and Sandoz remain confident that the ANDA will be approved under the 505(j) pathway as an interchangeable generic Copaxone.

About M356, a generic version of Copaxone (glatiramer acetate injection)

M356 (glatiramer acetate injection) is a generic version of Copaxone, a synthetic polypeptide medicine, developed in collaboration with Sandoz and currently under review by FDA. Copaxone is prescribed for patients with relapsing-remitting multiple sclerosis, a chronic disease of the central nervous system characterized by inflammation and neurodegeneration. Copaxone is one of the leading products marketed for treating multiple sclerosis.

About the Orange Book

The “Orange Book” is officially recognized as the FDA’s list of Approved Drug Products with Therapeutic Equivalence Evaluations.

About Momenta

Momenta Pharmaceuticals is a biotechnology company specializing in the detailed structural analysis of complex mixture drugs and is headquartered in Cambridge, MA. Momenta is applying its technology to the development of generic versions of complex drugs, biosimilars and potentially interchangeable biologics, and to the discovery and development of novel medicines.

To receive additional information about Momenta, please visit the website at www.momentapharma.com, which does not form a part of this press release.

Our logo, trademarks, and service marks are the property of Momenta Pharmaceuticals, Inc. All other trade names, trademarks, or service marks are property of their respective owners.

Special Note Regarding Forward-Looking Statements

Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to its beliefs and intentions related to the outcome of litigation with Teva Pharmaceuticals and our ability to achieve approval of generic Copaxone (M356) product, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “hope,” “target,” “project,” “goals,” “potential,” “predict,” “might,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors referred to in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by Momenta from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. Momenta is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Lora Pike
         Senior Director, Investor Relations and
         Corporate Communications
         lpike@momentapharma.com
         617-395-5189
Friday, July 26th, 2013 Uncategorized Comments Off on (MNTA) Announces Potential for 2014 Market Entry of Generic Copaxone®