Business & Financial News
Newspapers Are Primary Shopping Medium for Most Americans
According to research by MORI Research for the Newspaper Association of America, almost two-thirds of American adults actively check advertising at least weekly for things they might want to buy, but they are selective about when and where they check advertising.
(A Note on Terms: The terms "inserts," "free-standing inserts," "FSIs," and "preprints" are used more or less interchangeably in the industry. In this report "inserts" and "preprints" refer to newspaper formats of this advertising.)
Sunday is by far the most likely day for about one half of shoppers to consult advertising, while Saturday is a distant second, noted by one-fifth of consumers. The only other days in double figures are Wednesday and Friday, at 13 percent each.
Despite readership declines, newspapers are, by a substantial margin, the leading destination for people interested in checking advertising and shopping information. This pattern is consistent across several indicators, including:
- Usage of different media in both the previous 7 days and previous 30 days
- Primary shopping and advertising information source among media in general
- Primary shopping and advertising source for major store categories individually
- Preferred media source for preprint delivery, and
- Preferred media source for nongrocery coupons.
For example, notes the report summary,
- 53 percent of adults used newspapers to make a shopping or purchase decision in the previous 30 days, while 27 percent used the Internet, which now is the second-leading source.
- Even within the high-income ($100K+) shoppers, almost one-half say that newspapers are their primary shopping medium, compared with one third who rely on the Internet.
- A plurality among those age 18-24 consider the Internet to be their primary advertising source, but reliance on newspapers (including preprints) jumps markedly among the 25-34 age group who are married with children.
Some of the response regarding preprint reading includes:
- Newspaper-insert usage remains substantial. Almost half (46 percent) of adults used newspaper preprints in the previous week for shopping planning, as did 64 percent in the past 30 days. Threefourths of adults (77 percent) read preprints at least occasionally
- Insert readership is especially strong among women and primary household shoppers (who tend to be women). Men, however, lead on some store categories. Minority adults, especially African Americans, also are consistently above average in reading preprints
- Newspaper readers (48 percent) say they look through most inserts. Other readers divide about equally between looking at inserts from their regular stores, plus a few others, and looking at only those from their regular stores.
- Almost one-half (45 percent) of newspaper-preprint readers have played the advocate role in the previous 30 days by suggesting to friends or relatives that they look at a particular insert. Almost as many (41 percent) took an insert with them while shopping in the past month
- Preprint readers keep their preprints for an average of four days.
- Readership of preprints by direct mail is considerably lower than it is for newspapers: 29 percent in the past 7 days and 46 percent in the past 30 days. Consumers also prefer newspaper delivery over direct mail by a more than two-to-one margin. Sunday subscribers feel especially strongly about this
- The leading occasions for using preprints are for checking sales or when one is in the market to buy something (three-fourths of readers). Two-thirds of readers like to browse even when they are not looking for anything in particular, while around one-half use inserts to plan their regular shopping.
- Regarding preferred page size for preprints, 37 percent favor newsweekly size, 30 percent favor tabloids, and 20 percent like broadsheets. On the other hand, preference for glossy pages over newsprint is robust.
- Eight-page inserts are preferred over 24-pages by a two-to-one margin, while very small groups of consumers prefer larger options.
- Newspaper Web site users, who tend to be among the most active online shoppers, favor printed inserts over online versions by a two-to-one margin, which suggests that online preprints are not as convenient or easy to use.
Almost two-thirds of American adults say they "check out advertising or shopping information for things you might want to buy" at least weekly, with 1 in 5 adults conducting this search daily and another 42 percent saying less often, but at least weekly.
- Women (68 percent) lead men (56 percent) in each age group. Primary household shoppers (who tend to be women) also are high at 67 percent. For both genders, regular ad checking increases slowly with age, with the 55+ group leading the 18-to-34 group by 10 points. Middle-income adults (65 percent) are somewhat higher on this measure compared with those above $100,000 or below $35,000 (both at 59 percent)
- Newspaper reading in general drives advertising usage. For example, 71 percent of frequent weekday readers (4-6 issues per week) consult advertising weekly, compared with 61 percent among those who read less often, and only 47 percent for nonreaders
Black Friday Followed by Strong Cyber Monday
PriceGrabber.com Reports 43 Percent Week Over Week Growth
Nov 28 PriceGrabber.com(R), an Experian company, today unveiled "Cyber Monday" shopping data from its site that demonstrates the continued strong growth in comparison shopping and online shopping. First reported on "Black Friday" and continued on "Cyber Monday," the site saw the busiest day year to date with a 15% increase in the traffic sent to online merchants compared with Black Friday and a robust 43% week over week growth compared to the previous Monday. Going into the holiday shopping weekend, PriceGrabber has already experienced 45% growth for November compared to the previous year.
According to Jupiter Research, forecasts predict that 2006 online holiday sales will grow to $32 billion, an increase of 18% over last year's holiday season. Analysts forecast that a record 114 million users will buy online this holiday season. That figure is up 6% over the same period last year.
The "Cyber Monday" phenomenon revealed workers returned to the office from the holiday weekend and took advantage of high-speed internet connections to continue their holiday shopping. A recent survey conducted by PriceGrabber.com indicates that 38% of shoppers will shop online at work to get their holiday shopping done, with males stating they are 20% more likely to shop online at work for the holiday season compared to females. Consumers also stated that they will spend an average amount of $1,195, a 17% increase over last year's average of $1,025.
PriceGrabber.com's statistics show that the peak hour of traffic was approximately at 11 a.m. PST and was consistently busy throughout the typical- day hours from Eastern through Pacific time zones.
While Cyber Monday is the biggest traffic day yet this holiday season based on previous years' performance, PriceGrabber.com expects continued growth in activity on its site through first few weeks of December.
Popular Products on Cyber Monday
The top three most popular products across several product categories included:
Toys -- InterAct Mickey Mouse Clubhouse Play Set, starting at $84.98 -- Fisher-Price Kid-Tough Digital Camera for Preschoolers -- Pink, starting at $89.64 -- Hasbro Furreal Friends Butterscotch Pony, starting at $268.88 Sporting Goods -- Callaway Golf Callaway X-Tour Irons, starting at $124.99 -- Razor Dirt Quad, starting at $297.84 -- Exercise Bike -- Edge 491r Recumbent Exercise Bike, starting at $299.98 Apparel -- The North Face Women's Denali Jacket style A194, starting at $123.71 -- Barrie Pace Beaded Dress with Wrap, starting at $159.00 -- Women's Ugg Australia Classic Tall Boots, starting at $139.95 Jewelry &Watches -- 14k White Gold 1/2 Carat Engagement Setting for Princess Cut Diamond, starting at $935.00 -- Tissot T33758861 T-Touch Men's Titanium Watch, starting at $424.00 -- Citizen JR3090-58L Skyhawk Mens Titanium Watch, starting at $270.75 Musical Instruments -- Casio PX110 Privia Digital Piano, starting at $399.88 -- Yamaha F-310P2 6-String Standard Acoustic Folk Guitar with Starter Kit, starting at $144.50 -- Epiphone Les Paul Standard 6-String Electric Guitar, starting at $354.20
In addition to the above popular products PriceGrabber saw the following increased merchant referrals week over week among the following "hot" products of the season:
-- Canon SD600 Digital Camera 151% increase -- InterAct Mickey Mouse Clubhouse Play Set 90% increase -- Xbox 360 81% increase -- Apple iPod Video 5th Generation 30G 80% increase -- Panasonic 42" Plasma TV 38% increase
To search and compare information on millions of unique products and services from thousands of retailers and sellers, go to www.PriceGrabber.com.
About PriceGrabber.com
PriceGrabber.com, part of Experian Interactive(SM), has established itself as one of the most trusted and effective online comparison shopping services, allowing approximately 21 million consumers each month to search and compare information that enables them to find the right product from the right retailer at the best price. Through continued innovation and a consistent focus on providing the best comparison shopping experience on the Internet, PriceGrabber.com provides savvy shoppers access to millions of unique products and services from thousands of retailers and sellers in 20 product and service channels. The company also powers comparison shopping functionality for a network of leading Internet sites, including MSN Shopping, Ask.com, About.com, iVillage, and Comcast. The company offers comparison shopping in English (at http://www.pricegrabber.com/ ), Spanish (at http://www.preciomania.com/ ) and Portuguese (at http://www.precomania.com/ ) as well as international sites in Canada and the United Kingdom.
PriceGrabber.com is headquartered in Los Angeles, Calif. PriceGrabber is a registered trademark, and PriceGrabber.com and BottomLinePrice are trademarks of PriceGrabber.com, Inc., a Delaware corporation. Other trademarks or registered trademarks are the property of their respective owners.
About Experian
Experian(R) is a global leader in providing analytical and information services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.
Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs more than 12,500 people in 32 countries worldwide, supporting clients in more than 60 countries. Annual sales are in excess of $3.1 billion.
For more information, visit the Group's Web site at www.experiangroup.com.
NOTE: The word "Experian" is a registered trademark in the EU and other countries and is owned by Experian Ltd. and/or its associated companies.
Source: PriceGrabber.com
Pentadyne Receives $2M Follow-On Order From Department of Defense Contractor Beaver Aerospace
Part of the World's Largest Flywheel Deployment ProgramNovember 28, 2006 -- Pentadyne Power Corporation (www.pentadyne.com), the world's leading commercial manufacturer of clean energy storage systems using advanced composite flywheel technology, today announced it has received a follow-on order worth more than $2 million from Beaver Aerospace & Defense for an additional 46 DX-A2-rated (certified for national defense use) Pentadyne VSS+DC systems to be delivered over the course of the next several months.
This third in a series of purchase orders from Beaver Aerospace is part of a procurement contract with Pentadyne to be the exclusive supplier of more than 500 clean energy storage systems that will be deployed in homeland security military defense applications during the next few years.
"I'm proud Pentadyne was selected to be the exclusive supplier of flywheel-based clean energy systems for a vital array of national defense installations," said Pentadyne President & CEO Mark McGough. "The superior performance and reliability of our VSS+DC clean energy storage flywheel systems over competing products was the overriding factor in Pentadyne being designated as the sole supplier in what we believe is the world's largest flywheel energy storage deployment program."
(Click here for details)
Pentadyne Power has received a $2 million follow-on
order from Beaver Aerospace and Defense for 46
additional VSS+DC flywheel power systems.
Beaver Aerospace Program Manager Jim Diroff said, "We evaluated numerous energy storage technologies. Our multi-unit trials of Pentadyne systems over the past two years have confirmed their exemplary performance, exceeding the extremely demanding requirements of this application."
The Pentadyne VSS+DC is an advanced DC flywheel power system that stores energy kinetically instead of chemically, delivering stable, reliable, DC voltage for applications where power continuity is critical. Flywheel energy systems can eliminate the need for hazardous, maintenance-laden batteries in Uninterruptible Power Supply (UPS) systems, or they can be deployed as the first line of defense with battery arrays to dramatically improve battery longevity and reliability. The flywheel system provides sufficient ride-through for short duration utility power outages (98% of which last less than 10 seconds) or until a backup generator can come online.
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Capable of supplying a 225 kVA load for more than 12 seconds (longer for lower demand), each VSS+DC module can be seamlessly paralleled without any communications gear for higher output, redundancy and/or longer duration power requirements.
Exhibiting at data center trade show today in the UK
Outside of the Americas, Pentadyne's VSS+DC product is marketed by UPS manufacturer Socomec Sicon. Socomec Sicon is exhibiting its DELPHYS UPS and VSS+DC power reliability solution -- recently named Product Innovation of the Year by international industry analysis organization Frost & Sullivan -- at their exhibit booth at the DataCenter Facilities & Engineering Conference trade show that opens today in London, England.
About Pentadyne Power Corporation
An ISO-9001-certified company, Los Angeles-based Pentadyne designs, manufactures and markets clean energy storage systems using a high-strength advanced carbon-fiber flywheel to ensure power quality and continuity for mission-critical operations at industrial, commercial, healthcare and military facilities in North America and abroad. Integrated into UPS systems -- with or without battery-based energy storage -- award-winning Pentadyne flywheel systems provide an economic, long-lasting, low maintenance, lightweight and environmentally responsible back-up power solution without any hazardous chemicals or other safety concerns. The company is backed by leading venture capital groups and power industry leaders including Nth Power, Rustic Canyon Partners, DTE Energy, Energy InnovationsPortfolio, Electricité de France, Ben Rosen (co-founder of Sevin Rosen Funds and Chairman emeritus of Compaq Computer) and others. Pentadyne OEM systems are marketed in the Americas under the Liebert (www.liebert.com) brand by Emerson Network Power (www.emersonnetworkpower.com) and by Socomec Sicon (www.socomec.com) in Europe, the Middle East, Africa and Asia.
About Beaver Aerospace & Defense, Inc.
Beaver Aerospace & Defense (www.beaver-online.com), a subsidiary of Phillips Service Industries, provides ballscrew and actuator products for a variety of commercial and military aircraft as well as missiles. With eyes trained on the new and innovative, while maintaining a healthy respect for what has been proven, Beaver's engineers work with the latest design tools to create optimum ballscrew and actuator configurations for any application.
Editors:
For details on Pentadyne becoming an exclusive supplier to Beaver Aerospace, see: http://pentadyne.com/News2006Feb16.htm
For details on Beaver Aerospace's first order of flywheel systems, see: http://pentadyne.com/News2005Sept01.htm
For details on the Frost & Sullivan award noted above, see: http://pentadyne.com/News2006Oct06.htm
Product details are at: http://pentadyne.com/Pentadyne+VSS++Brochure.pdf
EagleTM Adds Premium & Municipal Tax Prep to WINGS PlatformEnhanced Functionality Creates Additional Benefits for Insurers
November 27, 2006 -- Eagle Technology Management, Inc. (EagleTM) has added its Premium and Municipal Tax Preparation product to its WINGS platform. WINGS is an enterprise program for financial and tax-compliance reporting that puts all of its functionality in a single processing environment -- with a common, relational database -- comprising applications for annual statements, state filings and forms, and premium and municipal taxes for insurers.
"This is another forward step in the evolution of EagleTM," said Larry Kane, EagleTM's president. "Because a substantial amount of tax data is present in annual statements, WINGS has historically exported that data for use by other software applications. We will continue to do support that export; but since the tax data is part of the common database, the natural evolution of our processing engine now enables us to prepare domestic and retaliatory reports in the shared processing environment. That means no data entry, accurate returns, ensured compliance, improved operations, and greater concentration on revenue-generating activities and core competencies."
Adding Premium and Municipal Taxes to the WINGS platform enables accounting and tax departments to collaborate in real time, using the same database. In addition to its being the only such system in the insurance industry available in a hosted environment, WINGS offers 24/7 online service, requires minimal training, and lets insurers efficiently prepare, verify, and produce statements, forms, and returns.
About EagleTM
EagleTM is a software and procedures-development firm that specializes in providing financial reporting and tax-compliance application for insurers. EagleTM is dedicated to efficient financial processing and reporting, making its clients more efficient, consistently accurate, and uniformly compliant. For more information, please visit www.eagletm.com, call (800) 975-3245, or e-mail sales@eagletm.com.
GetTix.Net Announces 2 New Arenas Running on Paciolan; Prescott Valley Convention & Events Center and the Santa Ana Star Center
November 27, 2006 -- Paciolan and GetTix.Net announced today that two additional arenas adopted the GetTix.Net system powered by Paciolan; Prescott Valley Convention & Events Center and the Santa Ana Star Center. GetTix.Net now sells tickets for over 50 clients using the Paciolan ticketing system.
With the new Paciolan system GetTix.Net provides both the Prescott Valley Convention & Events Center and the Santa Ana Star Center with increased levels of customer service by enabling them to fully capitalize on their fan relationships. The Prescott Valley Center and the Santa Ana Star Center offer their fans digital ticketing services, based on Paciolan's Access Management technology. Integrated with their core ticketing system, Access Management provides the arenas with automated ticket scanning, validation as well as on-demand attendance reporting. Fans also benefit from the added convenience of instantly receiving print-at-home tickets through the teams and arena websites.
The Prescott Valley Convention & Events Center is a 5,264-seat multi-purpose arena in Prescott Valley, Arizona that opened earlier this month featuring bands such as Godsmack, Clint Black and Chicago. It is also home to the Arizona Sundogs of the Central Hockey League. "The local Prescott Valley region has fully embraced the new arena," said Richard Floco, President of GetTix.Net. "Over the upcoming 12 months the arena will host over 90 events for the local community. We're excited to partner with Paciolan as we jointly provide our fans with a world-class experience."
The Santa Ana Star Center, located in Rio Rancho New Mexico, is a 7,500- seat arena that plays host to a resident professional hockey team, the New Mexico Scorpions, as well as over 100 booked events in the upcoming year. "The Santa Ana Star hosts top-tier events such as Disney on Ice and Big & Rich," said Richard Floco, President of GetTix.Net. "To manage the demand of an ever-growing concert schedule, along with the demand created by a successful hockey team, the building needed a ticketing system that would allow us to surpass the standards set by our promoters while also enabling us to leverage our fan relationships. Paciolan enables us to achieve both objectives -- as evidenced most recently at our sold-out Juan Gabrial concert."
"Our relationship with GetTix.Net is a cornerstone to Paciolan's overall success in the arena market. We could not be happier about our relationship with GetTix.Net and our ability to jointly serve their buildings. GetTix.Net's expertise coupled with the power of the Paciolan ticketing infrastructure enables GetTix.Net's arenas to fully control their relationships with their fans and, in the process, effectively run their business," said Dave Butler, CEO Paciolan.
About GetTix.Net
GetTix.Net is the ticketing subsidiary of Global Entertainment Corporation -- a fully integrated entertainment and sports, multi-purpose event center development and licensing company. Located in Global Entertainment headquarters in Phoenix, Arizona, GetTix.Net provides top of the line software, service, and flexibility to fit every client's specific needs. From coliseums to small clubs, GetTix.Net uses a unique business model to keep fees and service charges among the lowest in the industry.
About Paciolan
Founded in 1980, Paciolan is a leading ticketing enabler, providing ticketing, fundraising and marketing technology solutions for top venues across North America. Paciolan provides a wholly integrated infrastructure that puts venues in direct control of their customer relationships, brands and revenue potential. Primary markets include college athletics, professional sports, performing arts, arenas and museums. Collectively, Paciolan clients sell over 100 million tickets annually representing approximately 25% of all live event tickets sold in the US. Paciolan is a privately held corporation based in Irvine, California.
Representative customers include: Thomas & Mack Center, Louisiana State University, University of Oklahoma, University of Nebraska, The Resch Center, University of Michigan, Florida State University, University of Maryland, University of Southern California, University of North Carolina at Chapel Hill, the Colorado Rockies, San Diego Padres, Philadelphia Phillies, Denver Center for the Performing Arts, The Charlotte Arena, Toronto Symphony, American Museum of Natural History, Boston Museum of Fine Arts, National Aquarium in Baltimore, Dover Downs Entertainment, Inc. and many other leading venues across North America. Visit www.paciolan.com for additional company information.
Resource America, Inc. Reports Operating Results for Fourth Quarter and Fiscal Year Ended September 30, 2006
November 27, 2006 -- Resource America, Inc. (NASDAQ: REXI) (the "Company") reported income from continuing operations of $3.9 million and $17.3 million for the fourth quarter and fiscal year ended September 30, 2006, respectively, as compared to $793,000 and $5.4 million for the fourth quarter and fiscal year ended September 30, 2005, respectively, an increase of $3.1 million (386%) and $11.9 million (220%), respectively. Income from continuing operations per common share-diluted was $0.21 and $0.90 per common share for the fourth quarter and fiscal year ended September 30, 2006, respectively, as compared to income from continuing operations per common share-diluted of $0.04 and $0.28 per common share for the fourth quarter and fiscal year ended September 30, 2005, respectively, an increase of $0.17 (425%) and $0.62 (221%), respectively.
Net income was $4.1 million, or $0.22 per common share-diluted, and $19.9 million, or $1.04 per common share-diluted, for the fourth quarter and fiscal year ended September 30, 2006, respectively, as compared to a net loss of $1.2 million, or $0.06 per common share-diluted, and net income of $16.5 million, or $0.86 per common share-diluted, for the fourth quarter and fiscal year ended September 30, 2005, respectively. Discontinued operations for fiscal 2005 include nine months of operations and spin-off costs related to Atlas America, Inc. (NASDAQ: ATLS), the Company's former 80% owned energy subsidiary, prior to its tax-free distribution to shareholders on June 30, 2005. The fourth quarter ended September 30, 2005 included $144,000 of spin-off costs while the fiscal year ended September 30, 2005 reflected $16.5 million of Atlas America income from discontinued operations, net of tax, including $2.7 million of spin-off costs. Excluding the operations of Atlas America and related spin-off costs, net loss per common share-diluted would have been $0.05 and $0.00 per common share for the fourth quarter and fiscal year ended September 30, 2005, respectively.
Assets under management increased to $12.1 billion at September 30, 2006 from $7.1 billion at September 30, 2005, an increase of $5.0 billion (70%), as follows:
At September 30,
----------------------------------------
2006 2005
------------------ -----------------
Financial fund management $ 10.6 billion (1) $ 6.1 billion (1)
Real estate 0.9 billion (2) 0.6 billion (2)
Commercial finance 0.6 billion (3) 0.4 billion (3)
------------------ -----------------
$ 12.1 billion $ 7.1 billion
================== =================
(1) We value our financial fund management assets at their amortized cost.
(2) We value our managed real estate assets as the sum of: the amortized
cost of our commercial real estate loans; the book value of real
estate and other assets held by our real estate investment
partnerships and tenant-in-common, or TIC, property interests; the
amount of our outstanding legacy loan portfolio; and the book value of
our interests in real estate.
(3) We value our commercial finance assets as the sum of the book value of
the equipment and notes financed by us.
Operating income as adjusted, before depreciation and amortization, was $8.8 million and $30.3 million for the fourth quarter and fiscal year ended September 30, 2006, respectively, as compared to $2.7 million and $10.9 million for the fourth quarter and fiscal year ended September 30, 2005, respectively, an increase of $6.1 million (223%) and $19.4 million (179%), respectively. The following reconciles operating income as adjusted to our operating income for the quarters and fiscal years ended September 30, 2006 and 2005 (in thousands):
Three Months Ended Years Ended
September 30, September 30,
----------------- ------------------
2006 2005 2006 2005
------- ------- -------- -------
Operating income $ 8,100 $ 1,987 $ 27,258 $ 8,643
Plus:
Depreciation and amortization 709 738 3,064 2,209
------- ------- -------- -------
Operating income as adjusted $ 8,809 $ 2,725 $ 30,322 $10,852
======= ======= ======== =======
Management of the Company believes that operating income as adjusted provides additional information with respect to the Company's ability to meet its debt service, capital expenditures and working capital requirements. This measure is similar to EBITDA, a commonly used measure of a business' ability to generate cash flow without consideration of its financing structure. EBITDA is widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards. Neither adjusted operating income nor EBITDA are measures of financial performance under GAAP and, accordingly, should not be considered as a substitute for net income or cash flows from operating activities prepared in accordance with GAAP.
Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial fund management, real estate and commercial finance sectors.
For more information, please visit our website at www.resourceamerica.com or contact investor relations at pschreiber@resourceamerica.com.
Highlights for the Fourth Quarter, Fiscal Year Ended September 30, 2006 and Recent Developments
CORPORATE:
-- The Company increased its managed assets to $12.1 billion at September
30, 2006 from $7.1 billion at September 30, 2005 (70%). Additionally, the
Company closed two CDOs subsequent to September 30, 2006 (of which $793.0
million was included in our year end assets under management) for which it
has been engaged as the collateral manager. These CDOs will begin to
generate management fees at the end of the first quarter of fiscal 2007.
-- The Company increased its revenues to $23.3 million and $78.8 million
for the fourth quarter and fiscal year ended September 30, 2006,
respectively, an increase of $10.8 million (87%) and $31.7 million (67%)
from the fourth quarter and fiscal year ended September 30, 2005,
respectively.
-- The Company repurchased 61,079 shares of its common stock for $1.2
million at an average price of $19.39 in the fourth quarter ended September
30, 2006 and 820,559 shares of its common stock for $14.6 million at an
average price of $17.84 for the fiscal year ended September 30, 2006.
-- As of September 30, 2006, the Company employed 224 full-time workers
(including 76 investment professionals), an increase of 70, or 45%, from
154 employees (including 51 investment professionals) at September 30,
2005.
-- The Company increased its cash balance by $7.3 million to $37.6
million at September 30, 2006 from $30.4 million at September 30, 2005.
Additionally, $8.1 million and $5.0 million of cash was held in escrow
accounts at September 30, 2006 and 2005, respectively.
FINANCIAL FUND MANAGEMENT:
-- The Company's financial fund management division increased its assets
under management to $10.6 billion at September 30, 2006, an increase of
$4.5 billion (73%) from September 30, 2005.
-- Financial fund management revenues increased to $30.8 million for the
fiscal year ended September 30, 2006 from $15.9 million (94%) for the
fiscal year ended September 30, 2005.
-- Apidos Capital Management, LLC ("Apidos"), the Company's wholly owned
subsidiary focusing on investing in financing, structuring and managing
bank loans, increased it managed assets to $1.9 billion at September 30,
2006 from $413.4 million (366%) at September 30, 2005.
-- Ischus Capital Management, LLC ("Ischus"), the Company's wholly owned
subsidiary focusing on investing in financing, structuring and managing
asset-backed securities, including residential mortgage-backed and
commercial mortgage-backed securities, increased its managed assets to $4.4
billion at September 30, 2006 from $2.8 billion (56%) at September 30,
2005.
-- Trapeza Capital Management ("Trapeza"), the Company's fund manager
that originates, structures, finances and manages trust preferred
securities and senior debt securities of banks, bank holding companies,
insurance companies and other financial companies, increased its managed
assets to $4.2 billion at September 30, 2006 from $2.9 billion (46%) at
September 30, 2005.
REAL ESTATE:
-- Resource Real Estate Holdings, Inc. ("RRE"), the Company's real estate
asset manager that invests in and manages investment vehicles that manage
real estate assets and operates the Company's commercial real estate debt
platform, increased its assets under management to $883.7 million at
September 30, 2006, an increase of $264.9 million (43%) from September 30,
2005. Excluding assets managed in our legacy portfolio, RRE's assets under
management increased by $496.0 million (172%) to $784.5 million at
September 30, 2006 from $288.5 million at September 30, 2005.
-- Commercial real estate debt portfolio managed on behalf of Resource
Capital Corp. grew to $439.7 million at September 30, 2006 from $86.9
million (406%) at September 30, 2005.
-- RRE revenues increased to $23.7 million for the fiscal year ended
September 30, 2006 from $17.8 million (33%) for the fiscal year ended
September 30, 2005. The fiscal year ended September 30, 2006 included the
sale of a partial interest in a real estate venture, resulting in a $4.2
million gain. In the fiscal year ended September 30, 2005, we realized a
gain of $6.3 million from refinancing the mortgage on this investment.
-- RRE resolved loans with a combined book value of $43.9 million,
realizing $43.6 million in net proceeds during the fiscal year ended
September 30, 2006.
COMMERCIAL FINANCE:
-- LEAF Financial Corporation ("LEAF"), the Company's commercial finance
asset manager, increased its lease and note originations to $423.6 million
for the fiscal year ended September 30, 2006, an increase of $172.8 million
(69%) from the fiscal year ended September 30, 2005.
-- Commercial finance assets under management increased to $612.7 million
at September 30, 2006, an increase of $273.0 million (80%) from September
30, 2005.
-- LEAF II, a publicly-registered partnership managed by LEAF on behalf
of individual investors, completed its public offering on October 13, 2006
after having raised the maximum of $60.0 million under its registration
statement.
-- LEAF's revenues increased to $23.8 million for the fiscal year ended
September 30, 2006 from $13.4 million (78%) for the fiscal year ended
September 30, 2005.
-- LEAF entered into a $150.0 million revolving warehouse credit facility
with a group of banks led by National City Bank.
-- LEAF filed a $120.0 million registration statement with the Securities
Exchange Commission on October 2, 2006 for LEAF III.
RESOURCE EUROPE:
-- In April 2006, the Company commenced its European leveraged loan
operations, Resource Europe, based in London, England, and hired Rob
Reynolds and four other professionals to manage and develop these
operations.
-- As of November 21, 2006, Resource Europe managed EUR 100.0 million of
bank loan assets.
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release. For information pertaining to risks relating to these forward-looking statements, reference is made to the section "Risk Factors" contained in Item 1 of the Company's Annual Report on Form 10-K.
The remainder of this release contains the Company's consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows.
RESOURCE AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
September 30,
--------------------
2006 2005
--------- ---------
ASSETS
Cash $ 37,622 $ 30,353
Restricted cash 8,103 5,000
Accounts receivable 1,847 10,677
Receivables from managed entities 8,795 4,280
Investments in commercial finance 108,850 41,394
Assets held for sale 1,312 107,520
Loans held for investment 69,314 97,752
Investments in real estate 50,104 46,049
Investment securities available-for-sale 64,857 38,353
Investments in unconsolidated entities 26,626 24,564
Property and equipment, net 9,525 30,521
Deferred income taxes 6,408 7,086
Other assets 23,390 15,486
--------- ---------
Total assets $ 416,753 $ 459,035
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 12,448 $ 7,794
Accrued expenses and other liabilities 14,341 16,835
Payables to managed entities 1,579 591
Liabilities associated with assets held for sale 1,145 74,438
Borrowings 172,238 147,302
Deferred revenue 1,592 1,239
Deferred income tax liabilities 10,746 7,086
Minority interests 9,602 16,614
--------- ---------
Total liabilities 223,691 271,899
--------- ---------
Commitments and contingencies - -
Stockholders' equity:
Preferred stock, $1.00 par value, 1,000,000 shares
authorized; none outstanding - -
Common stock, $.01 par value, 49,000,000 shares
authorized; 26,401,708 and 26,371,780 shares
issued, respectively 264 264
Additional paid-in capital 259,882 258,019
Retained earnings 25,464 9,845
Treasury stock, at cost; 9,110,290 and 8,312,760
shares, respectively (96,960) (82,556)
ESOP loan receivable (465) (488)
Accumulated other comprehensive income 4,877 2,052
--------- ---------
Total stockholders' equity 193,062 187,136
--------- ---------
$ 416,753 $ 459,035
========= =========
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Years Ended
September 30, September 30,
------------------ ------------------
2006 2005 2006 2005
-------- -------- -------- --------
(unaudited)
REVENUES:
Financial fund management $ 10,165 $ 5,036 $ 30,834 $ 15,944
Real estate 5,316 3,253 23,676 17,791
Commercial finance 7,357 4,191 23,840 13,381
Resource Europe 474 - 474 -
-------- -------- -------- --------
23,312 12,480 78,824 47,116
COSTS AND EXPENSES:
Financial fund management 3,769 3,257 11,104 9,110
Real estate 3,857 1,861 12,122 9,903
Commercial finance 4,061 1,908 14,443 8,884
Resource Europe 566 - 995 -
General and administrative 2,250 2,729 9,838 8,367
Depreciation and amortization 709 738 3,064 2,209
-------- -------- -------- --------
15,212 10,493 51,566 38,473
-------- -------- -------- --------
OPERATING INCOME 8,100 1,987 27,258 8,643
OTHER INCOME (EXPENSE):
Interest expense (4,560) (1,288) (10,119) (2,811)
Minority interest (539) (245) (1,775) (1,403)
Other income, net 1,510 762 5,154 4,550
-------- -------- -------- --------
(3,589) (771) (6,740) 336
-------- -------- -------- --------
Income from continuing operations
before taxes and cumulative effect
of a change in accounting principle 4,511 1,216 20,518 8,979
Provision for income taxes 657 423 3,236 3,591
-------- -------- -------- --------
Income from continuing operations
before cumulative effect of a
change in accounting principle 3,854 793 17,282 5,388
Income (loss) from discontinued
operations, net of tax 254 (1,974) 1,231 11,070
Cumulative effect of a change in
accounting principle, net of tax - - 1,357 -
-------- -------- -------- --------
NET INCOME (LOSS) $ 4,108 $ (1,181) $ 19,870 $ 16,458
======== ======== ======== ========
Basic earnings (loss) per common
share:
Continuing operations $ 0.22 $ 0.04 $ 0.98 $ 0.30
Discontinued operations 0.02 (0.11) 0.07 0.63
Cumulative effect of accounting
change - - 0.08 -
-------- -------- -------- --------
Net income (loss) $ 0.24 $ (0.07) $ 1.13 $ 0.93
======== ======== ======== ========
Weighted average shares outstanding 17,329 18,112 17,627 17,696
======== ======== ======== ========
Diluted earnings (loss) per common
share:
Continuing operations $ 0.21 $ 0.04 $ 0.90 $ 0.28
Discontinued operations 0.01 (0.10) 0.07 0.58
Cumulative effect of accounting
change - - 0.07 -
-------- -------- -------- --------
Net income (loss) $ 0.22 $ (0.06) $ 1.04 $ 0.86
======== ======== ======== ========
Weighted average shares outstanding 18,915 20,437 19,121 19,204
======== ======== ======== ========
Dividends declared per common share $ 0.06 $ 0.05 $ 0.24 $ 0.20
RESOURCE AMERICA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended September 30,
----------------------------
2006 2005 (1) 2004 (1)
-------- -------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 19,870 $ 16,458 $ 18,409
Adjustments to reconcile net income to net
cash used in operating activities:
Cumulative effect of a change in
accounting principle, net of tax (1,357) - -
Depreciation and amortization 3,180 2,247 1,696
Equity in earnings of unconsolidated
entities (8,747) (7,807) (8,679)
Minority interest earnings 1,775 1,403 -
Distributions from unconsolidated entities 12,570 13,899 7,041
Income from discontinued operations (1,231) (11,070) (16,799)
Gain on sale of investment securities
available-for-sale (668) (1,544) (9,453)
(Gain) loss on asset dispositions (7,715) (7,781) 3,802
Deferred income tax (benefit) provision (3,120) 3,591 1,127
Non-cash compensation on long-term incentive
plans 1,739 1,251 753
Non-cash compensation issued 2,396 - -
Non-cash compensation received (1,844) (1,839) -
Tax benefit from exercise of stock options - 2,517 121
Increase in net assets of FIN 46 entities - (2,922) (717)
Increase in commercial finance investments (68,376) (17,886) (16,720)
Changes in operating assets and
liabilities 12,474 (9,471) 6,894
--------- --------- ---------
Net cash used in operating activities of
continuing operations (39,054) (18,954) (12,525)
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (4,141) (2,414) (1,604)
Payments received on real estate loans and
real estate 42,058 7,417 26,441
Investments in real estate (33,004) (16,753) (6,619)
Return of capital from investments in
unconsolidated entities - 9,390 -
Purchases of investment securities
available-for-sale (34,820) (26,800) (10,372)
Proceeds from sales of investment securities
available-for-sale 7,205 5,038 20,170
Increase in restricted cash (3,103) (5,000) -
Dividends received from Atlas America - - 52,133
(Increase) decrease in other assets (13,821) 321 12,066
--------- --------- ---------
Net cash (used in) provided by investing
activities of continuing operations (39,626) (28,801) 92,215
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in borrowings $ 570,448 $ 267,643 $ 142,857
Increase in principal payments on
borrowings (501,088) (258,865) (233,097)
Investor contributions to financial fund
management investments - 10,410 -
Dividends paid (4,251) (3,533) (2,619)
Proceeds from issuance of stock 133 5,819 613
Purchase of treasury stock (14,642) (5,179) -
Tax benefit from exercise of stock options 231 - -
Other - (1,660) (197)
--------- --------- ---------
Net cash provided by (used in) financing
activities of continuing operations 50,831 14,635 (92,443)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating activities $ 1,771 $ 23,566 $ 35,214
Investing activities 37,172 - -
--------- --------- ---------
Net cash provided by discontinued
operations 38,943 23,566 35,214
Net cash retained by entities previously
consolidated (3,825) - -
Increase (decrease) in cash 7,269 (9,554) 22,461
Cash at beginning of period 30,353 39,907 17,446
--------- --------- ---------
Cash at end of period $ 37,622 $ 30,353 $ 39,907
========= ========= =========
(1) Revised presentation to reflect detail of cash flows from discontinued
operations.
Reconciliation of Net Cash (Used In) Operating Activities of Continuing Operations to Net Cash Provided By Operating Activities of Continuing Operations, As Adjusted
Net cash provided by operating activities of continuing operations, as adjusted was $20.8 million for the fiscal year ended September 30, 2006, an increase of $9.5 million (84%) as compared to $11.3 million for the fiscal year ended September 30, 2005. The following reconciles net cash provided by continuing operations, as adjusted to net cash (used in) operating activities of continuing operations for the fiscal years ended September 30, 2006 and 2005, respectively (in thousands):
Fiscal Years Ended
September 30,
--------------------
2006 2005
--------- ---------
Net cash (used in) operating activities of continuing
operations $ (39,054) $ (18,954)
Adjustments:
Increase in commercial finance investments 68,376 17,886
Changes in operating assets and liabilities (12,474) 9,471
Cash proceeds from the sale of a partial partnership
interest 4,000 -
Increase in net assets of FIN 46 entities - 2,922
--------- ---------
Net cash provided by operating activities of
continuing operations, as adjusted $ 20,848 $ 11,325
========= =========
Ford Announces Plans for Debt Financing
DEAR Nov. 27Ford Motor Company (NYSE:F) today announced that it plans to obtain financing totaling approximately $18 billion in order to address near- and medium-term negative operating-related cash flow, to fund its restructuring, and to provide added liquidity to protect against a recession or other unanticipated events.The financing transactions consist of: * new five-year senior secured revolving credit facility of approximately $8 billion that is intended to replace Ford's existing unsecured credit facilities of $6.3 billion; * senior secured term loan of approximately $7 billion; and * unsecured capital market transactions of approximately $3 billion, which may include unsecured notes convertible into Ford common stock.
The size of the individual components of the financing may vary depending on market conditions.
Borrowings under the senior secured revolving and term loan credit facilities will be secured on an equal basis by first-priority liens on principal domestic manufacturing facilities (subject to public debt indenture limitations) and substantially all of the Company's other domestic automotive assets, certain intellectual property, certain real property, all or a portion of the stock of certain subsidiaries (including Ford Motor Credit Company and Volvo), certain intercompany payables and notes, and up to $4 billion of domestic cash without restriction on its use.
The arrangers for the senior secured credit facilities are Citigroup Corporate and Investment Banking, Goldman Sachs Credit Partners L.P., and J.P. Morgan Securities Inc.
Ford expects these transactions to close prior to December 31, 2006.
Upon completion of the transactions, Ford expects to have Automotive liquidity of approximately $38 billion at year end 2006, consisting of gross cash (i.e., cash, cash equivalents, loaned and marketable securities and short-term Voluntary Employee Beneficiary Association assets) and available credit facilities.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 300,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company.
Forward-Looking Statements: Forward-looking statements herein regarding our financial plans are based on expectations and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation, market conditions and the other factors described under the heading "Management's Discussion and Analysis of Financial Condition and Result of Operations - Risk Factors" in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
Source: Ford Motor Company
Black Friday sales up 6 percent over '05
The nation's retailers had a strong start to the holiday shopping season, according to results announced Saturday by a national research group that tracks sales at mall-based stores. One big exception was Wal-Mart Stores Inc., which said it expects to report same-store sales in November below its already lackluster forecast.
According to ShopperTrak RCT Corp., which tracks total sales at more than 45,000 mall-based retail outlets, total sales rose 6 percent to $8.96 billion on Friday, the start of the holiday shopping season, compared to the same day a year ago.
"Although we anticipated a solid consumer turnout for Black Friday, this data shows an even larger increase than expected as consumers proved they were willing to spend," said Bill Martin, co-founder of ShopperTrak, in a statement.
Wal-Mart, however, estimated it will post a 0.1 percent decline in same-store sales, or sales at stores opened at least a year, in November. That's slightly below its original projections for flat sales for the month, compared to the year-ago period. The results cover the four-week period that ended through Friday. Same-store sales are considered a key indicator of a retailer's health.
Wal-Mart and other major retailers are expected to report final same-store results for November on Thursday.
Wal-Mart's disappointing performance in November is the latest in a string of anemic sales gains for the discount store, which is struggling to expand its appeal to higher-income shoppers. According to the International Council of Shopping Centers, Wal-Mart has averaged a meager 2.4 percent gain in same-store sales for the February-October period. That compares with a same-store sales 4.8 percent gain for discount rival Target Corp. Penney has averaged a 4.5 percent gain in same-store sales for the February-October period.
Wal-Mart, which had downplayed its emphasis on discounting, or what it calls rollbacks, stepped up its campaign in mid-October, with price reductions on over 100 toys. The move was followed by price cuts on consumer electronics and small appliances earlier this month.
While Black Friday — so named because it was traditionally when the surge of shopping made stores profitable — starts holiday shopping, it is not considered a bellwether for the season. However, merchants see Black Friday as setting an important tone to the overall season: what consumers see that day influences where they will shop for the rest of the year.
Wal-Mart Stores Inc. had a disappointing start to the holiday shopping season,
despite an aggressive discount campaign. It now expects to report November same-store sales were below its already lackluster forecast
The world's largest retailer said Saturday that it expects to report a 0.1 percent decline in November sales in stores opened at least a year, slightly below its projections for flat sales for the month, compared to the year-ago period. The results cover the four-week period that ended Friday, including the first day of the holiday shopping season.
Wal-Mart and other major retailers are expected to report final same-store results on Thursday.
Wal-Mart's disappointing performance in November is the latest in a string of anemic sales gains for the discount store, which is struggling to expand its appeal to higher-income shoppers. According to the International Council of Shopping Centers, Wal-Mart has averaged a meager 2.4 percent gain in same-store sales for the February-October period. That compares with a same-store sales 4.8 percent gain for discount rival Target Corp.
Wal-Mart, which had downplayed its emphasis on discounting, or what it calls rollbacks, stepped up its campaign in mid-October, with price reductions on over 100 toys. The move was followed by price cuts on consumer electronics and small appliances earlier this month, and bargains reserved for the day after Thanksgiving.
Arik Air Buys a Fourth Bombardier CRJ900 Aircraft
November 24, 2006 -- Bombardier Aerospace announced today that Arik Air of Lagos, Nigeria has placed a firm order for a fourth new Bombardier CRJ900 regional jet. The airline's initial order for two CRJ900 aircraft - the first from an African airline - was announced on May 3, 2006. A subsequent order for a third CRJ900 was placed in August 2006.
Arik Air began operations in October, 2006, flying initially from Lagos to Abuja. The airline began Lagos - Calabar - Abuja services in November and later this year, plans to expand operations leading to a full network of 10 destinations throughout Nigeria and three international routes on the African continent. It will introduce international routes to the US, UK and Far East in 2007.
"After reevaluating our operational plans, we decided that we would require four CRJ900 aircraft sooner rather than later," said Michael McTighe, Chief Executive Officer, Arik Air. "We look forward to offering our passengers a superior in-flight experience with these state-of-the-art aircraft."
Arik Air's CRJ900 jets feature a two-class interior with 10 business class seats and 65 economy seats in a spacious cabin. The airline also plans to operate two previously owned Boeing 737 and three previously owned Bombardier CRJ200 regional jets, built in 2003. The CRJ200 aircraft have been reconfigured with 44 seats for greater passenger comfort.
About Bombardier
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2006, were $14.7 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
Bombardier, CRJ200 and CRJ900 are trademarks of Bombardier Inc. or its subsidiaries.
Telestream and Nativ Announce Video Integration Alliance
Partnership offers consulting and integration services to content owners and
distributors, enabling increased revenue opportunities at reduced costs
November 24, 2006 - Nativ, a video consulting, technology and outsourcing company, and Telestream, an industry leader in video transcoding and workflow automation solutions, today announced a partnership whereby the companies offer proven, repeatable turnkey video integration solutions tailored to customer needs. Today's digital television and streaming media technologies offer new opportunities for content owners and distributors to increase revenues and brand awareness by repurposing content for new and emerging video platforms. Nativ and Telestream provide the digital video expertise and systems integration needed to quickly translate these opportunities into practical solutions at competitive prices.
"The emergence of versatile video transcoding and automation technologies, such as those offered by Telestream, offer new business possibilities, including distribution across multiple platforms such as wireless and broadband, enhanced or new product offerings, and delivery to more distribution channels in more formats," said Jon Folland, managing director at Nativ Ltd. "We are delighted to have an agreement in place with Telestream that enables us to work with customers to cost-effectively implement these solutions."
With combined expertise in advanced video transcoding, legacy video formats, automation, asset management, digital rights management and systems integration, Nativ and Telestream help companies grow their business while improving operational efficiency and the bottom-line. Using Telestream's software and Nativ's consulting, outsourcing and integration services, content owners and distributors can increase revenues and the value of their content, while minimizing costs and risks, by effortlessly repurposing content for today's new video platforms.
"A challenge within the digital media industry has been the lack of experience in seamlessly integrating new video technologies into existing workflow infrastructures," said George Boath, EAME business director at Telestream. "Nativ is a specialist in this field with a deep understanding of both broadband and broadcast business and technology issues. We are pleased to be partnering with Nativ to bring new integration solutions to the video marketplace."
Applying business rules and analyses, Nativ and Telestream translate customer needs into practical solutions. They address the technical issues, including: video acquisition and ingest, cross-platform transcoding and interoperability, digital media management and storage, systems integration and workflow, middleware and service development, localization and branding for multiple distribution outlets, distribution and digital rights management.
Nativ and Telestream have worked together in the UK to provide video integration solutions for Getty Images and Channel 4. In these cases, Nativ provided the consulting and integration services, Telestream provided the transcoding workflow automation products, and Boxer Systems, a UK video products supplier, provided the installation services. With the new partnership in place, Nativ and Telestream now offer these proven, repeatable turnkey video implementations to companies anywhere in the world.
For more information, contact Nativ at +44 (0) 20 7580 9488 or info@nativ.tv or visit their website at http://www.nativ.tv and contact Telestream at +1 530 470 1300 or info@telestream.net or visit their website at http://www.telestream.net.
About Nativ (http://www.nativ.tv)
Founded in 2001, Nativ is a consulting, technology and outsourcing company specializing in the delivery of video-centric solutions. Nativ has vast experience of working with broadcasters and video content providers and a strong understanding of the convergent broadcast, telecoms and mobile sectors. Over the past years Nativ's team has successfully designed and developed a large range of video-centric business solutions for major blue chip companies. Through working closely with our clients and applying thorough strategic and project planning we provide expert solutions and increased business performance in a rapidly changing marketplace.
About Telestream (http://www.telestream.net)
Telestream products have set the standard with the world's leading media and entertainment companies, corporations, and government institutions for the encoding, organizing, and delivery of digital media. From plug-in components to desktop craft encoding applications to scalable enterprise-class transcoding-based workflow systems, Telestream's solutions save users time, effort and money while increasing revenues. The company's Workgroup & Enterprise solutions and Flip4Mac digital media tools for the Mac streamline media workflows for content owners, creators, and distributors in any industry segment. Telestream and its team of video experts are based in Nevada City, California USA and in Stockholm, Sweden. The company is privately held. For more information, please visit http://www.telestream.net and http://www.flip4mac.com
November 22, 2006 -- Bharosa, a global provider of proactive, real-time fraud detection and multifactor authentication solutions, today announced Bharosa Tracker 3.5 software to provide enhanced security for financial and eCommerce customers. A best-of-breed solution, Bharosa Tracker provides the most advanced, yet convenient authentication and fraud detection. The new enhancements help companies protect businesses and consumers against click fraud and identity theft without sacrificing convenience.
New features in Bharosa Tracker 3.5 software include:
-- Click fraud and new account fraud protection -- Extended ease of integration -- Expanded proactive security tools -- Increased robustness -- Enterprise email messaging and SSL VPN interoperability
According to recent analyst findings, including reports by Javelin Strategy and Research http://www.javelinstrategy.com/uploads/621.RF_BeyondFFIECCompliance_Brochure.pdf and the 451 Group http://www.bharosa.com/documents/451-SPOTLIGHTREPORT-16NOV2006.pdf, there are few companies that clearly understand the market requirements for authentication and fraud detection solutions. Bharosa was ranked highly in the top tier of providers capable of delivering solutions that successfully achieve the balance between effectiveness and customer convenience in the presence of a continually shifting landscape.
"Bharosa is offering all markets unparalleled functionality for online financial transactions and robust security to protect data and identities," said Thomas Varghese, President and Chief Technology Officer at Bharosa. "By leveraging our proven fraud protection techniques, we are helping restore confidence among consumers, financial institutions and eCommerce vendors alike. The latest version of Tracker further safeguards online transactions against click fraud, phishing and other forms of Internet fraud."
Bharosa Tracker: New Features and Benefits
New enhancements in Bharosa Tracker 3.5 include:
-- Improved fraud detection: Enhancements to Tracker 3.5 help companies deter new account opening fraud by positively identifying customers during the account origination process and prevent click fraud by recognizing suspicious Web surfing patterns and behaviors. -- Extended ease of integration: Tracker successfully interfaces with popular third-party online banking applications and implements seamlessly using a variety of integration methods. Based on integration preferences and deployment deadlines, companies can choose from a Universal Integration Option (UIO) that enables organizations to deploy Tracker with minimal integration effort, a plug n' play preconfigured appliance based option that requires zero integration and drastically reduces deployment time, or a custom development option that enables organizations to leverage Bharosa's APIs to fully integrate Tracker into backend systems. -- Expanded proactive security tools: Through integration with Bharosa's Fraud Intelligence Network (FIN), companies gain access to up-to-the-moment fraud and risk models. Tracker 3.5 customers gain access to aggregated data that details the online fraud patterns from across numerous industries, in addition to analytic capabilities that enable companies to identify new fraud threats. -- Increased robustness: Tracker works seamlessly with Bharosa Authenticators, a suite of highly secure Virtual Authentication Devices, so that companies can employ a range of security options to meet diverse user requirements or upgrade to higher levels of protection as threats increase without reinvesting in infrastructure. -- Enhanced secure enterprise capabilities: Tracker 3.5 advances enterprise functionality with improved security features for web-based applications including email, HR, and SSL VPNs.
About Bharosa
Bharosa is a global provider of proactive, real-time fraud detection and multifactor online authentication solutions for the enterprise. Bharosa's Tracker product works behind the scenes to verify a host of factors used to confirm a user's identity, including the user's computer, location and online behavior. Tracker scores risk through a unique and proprietary "gated" security method and responds to risk in real time by increasing online security. Tracker offers strong asset and transaction authentication security that can be implemented without requiring any change to the online experience.
Another Bharosa enterprise product, Authenticator, protects sensitive credentials data from Phishing, Trojans and Proxy-Based Fraud. Tracker and Authenticator together form the organization's most powerful weapon in the fight against online identity theft.
Bharosa, Inc. is a privately held company founded in May 2003 and headquartered in Santa Clara, California. More information is available at www.bharosa.com.
80% Of American Web Users Plan to Buy Gifts Online This Holiday Season -- Says 2006 AOL Shopping/Zogby Poll
Nearly a Quarter of Net Users to Spend Most of Their Budget Online
Big Apple Takes Biggest Holiday “Byte”
Ranked #1 Online Holiday Spending City
An overwhelming 80% of all American Internet users expect to purchase gifts online during the upcoming holiday season, according to findings from a new national AOL Shopping/Zogby poll.* In addition, nearly a quarter (24%) plan to spend most of their budget online. The poll also found that 80% of respondents expect to spend the same or more online than they did last year. In terms of online purchasing, the data reveals that Web users across the country plan to spend an average of $504.52 - almost 40% of their overall holiday budget ($1,282.13). AOL Shopping (www.shopping.aol.com) commissioned Zogby International to conduct this poll to get a snapshot of Internet users’ holiday spending plans.
Examining the nation’s top 20 markets reveals that New York Web surfers on average will spend the most online this holiday season with a staggering $1,483.36, constituting nearly 70% of the average NYC gift-buying budget ($2,137.26). The Big Apple’s online bite is trailed in a distant second and third by wired residents of Orlando ($645.24) and Cleveland ($577.31).
According to the poll, several issues factor into why Internet users shop online during the holiday season. Nearly three in five (58%) stated online shopping saves time, while 32% say they enjoy the ease of comparison shopping. Another 29% said they found gift items online that are not available in local stores, while 24% cited the value of free shipping. Online sales promotions and easy last minute shopping also garnered support (17% each). Surprisingly, considering concerns about high gas prices, only 9% stated they shop online to save money at the pump.
“These findings clearly show that U.S. Internet users are shopping online more and more during the holiday season because of convenience, selection and price,” said Robert Hayes, AOL VP/GM Marketplace. “The average consumer is starting to see the advantages of online shopping over the traditional brick and mortar store.”
When asked what items they are likely to purchase online rather than in a store, 60% selected books and music, while 35% stated electronics and 31% cited toys or games. Twenty-nine percent said they are more likely to purchase clothing and accessories online rather than in a store, while 23% say they are more likely to purchase computer software online.
Top Online Holiday Spending Cities: | |||||
1. | New York City | average online spend: $1,483.36 | (average overall budget: $2,137.26) | ||
2. | Orlando | average online spend: $645.24 | (average overall budget: $1,995.41) | ||
3. | Cleveland | average online spend: $577.31 | (average overall budget: $1,238.14) | ||
4. | Denver | average online spend: $558.84 | (average overall budget: $1,113.67) | ||
5. | Los Angeles | average online spend: $528.69 | (average overall budget: $1,282.08) | ||
6. | Houston | average online spend: $527.96 | (average overall budget: $1,407.87) | ||
7. | Dallas | average online spend: $525.71 | (average overall budget: $1,202.46) | ||
8. | Miami | average online spend: $509.70 | (average overall budget: $1,157.68) | ||
9. | San Francisco | average online spend: $489.29 | (average overall budget: $1,098.54) | ||
10. | Washington D.C. | average online spend: $484.23 | (average overall budget: $1,371.32) | ||
11. | Tampa | average online spend: $474.70 | (average overall budget: $1,303.43) | ||
12. | Philadelphia | average online spend: $472.48 | (average overall budget: $1,209.64) | ||
13. | Boston | average online spend: $460.70 | (average overall budget: $1,161.95) | ||
14. | Detroit | average online spend: $457.03 | (average overall budget: $1,091.25) | ||
15. | Seattle | average online spend: $428.74 | (average overall budget: $1,086.93) | ||
16. | Minneapolis | average online spend: $420.17 | (average overall budget: $1,008.41) | ||
17. | Chicago | average online spend: $402.64 | (average overall budget: $1,124.19) | ||
18. | Phoenix | average online spend: $399.04 | (average overall budget: $1,070.77) | ||
19. | Atlanta | average online spend: $397.82 | (average overall budget: $1,996.72) | ||
20. | Sacramento | average online spend: $322.32 | (average overall budget: $821.33) | ||
Editor’s Note: In addition to commissioning Zogby International to conduct a national holiday shopping poll, AOL Shopping had the firm conduct similar surveys in the top 20 markets. Detailed national and regional poll results are available upon request.
*Methodology: Zogby International conducted interviews of 37,199 adults online. Panelists who have agreed to participate in Zogby polls online were invited to participate in the survey. The online poll ran from 11/1/06 through 11/6/06. The margin of error is +/- 0.5 percentage points. Margins of error are higher in sub-groups. The top online holiday spending cities were determined by taking the mean averages of overall budgets set for holiday gift purchases (based on local-area responses ranging from 0 to $100,000.00) and cross-referencing them with anticipated percentages of online spending.
About AOL
AOL is a global Web services company that operates some of the most popular Web destinations, offers a comprehensive suite of free software and services, runs the country's largest Internet access business, and provides a full set of advertising solutions. A majority-owned subsidiary of Time Warner Inc., AOL LLC is based in Dulles, Virginia. AOL and its subsidiaries also have operations in Europe, Canada and Asia. Learn more at AOL.com.
Females Aged 25-34 Prepare For Black Friday On The Web
Hitwise recently announced that the market share of US Internet visits for the top five Black Friday advertising websites increased 167 percent for the week ending November 11, 2006 versus the same week last year. The websites showing the strongest growth were BlackFridayAds.com, up 456 percent and The Black Friday, up 425.
Black Friday is the nick name given to the day after Thanksgiving in the United States and the "official" kickoff to the Christmas shopping season. "Black Friday" was originally an inside term amongst retailers, as that was the day their books went from the red to the black. It consists of a combination of people being in the Holiday mood following Thanksgiving, and stores offering tremendous bargains on a number of items for a couple of hours. This year's sale falls on November 24th, and most "door buster" offers run from 6am-11am, while others run throughout the weekend.
The Black Friday advertising website receiving the largest market share of US Internet visits for the week ending November 11, 2006, was Black Friday Advertisements which received 37.65 percent of US Internet visits to the top five Black Friday sites. Black Friday @ GottaDeal.com was the second, followed by Black Friday.info.
Hitwise Clickstream data show that each of the five Black Friday sites sent more than 50 percent of downstream traffic to websites in the Hitwise Shopping and Classifieds category, suggesting that users are finding deals on the Black Friday sites and then linking to retailer websites for more information.
Name | Market Share | Percent of Downstream Traffic to Shopping & Classifieds Websites |
Black Friday Advertisements | 37.65% | 50.88% |
Black Friday @ GottaDeal | 27.90% | 65.61% |
BlackFriday.info | 17.74% | 78.94% |
BlackFridayAds.com | 9.75% | 64.07% |
Black Friday Ads | 6.96% | 54.31% |
Source: Hitwise | ||
Note: Data based on market share of visits for the week ending 11/11/06 from a sample of 10 million US Internet users
LeeAnn Prescott, research director, Hitwise, said "Consumers have clearly caught on to the idea of planning their Black Friday shopping by using the Black Friday websites to find the best deals for holiday gifts..."
Visitors to the Black Friday advertising websites were predominantly females aged 25-34, according to Hitwise. For the four week ending November 11, 2006,
- 67% of visitors to Black Friday @ GottaDeal were female
- 60% to BlackFriday.info
- 65% to BlackFridayAds.com,
- 56% to BFads.net
- 62% to The Black Friday
Visitors between the ages of 25 and 34 were largest age group for visitors to BlackFriday.info, BlackFridayAds.com, Black Friday @ GottaDeal.com, and BFads.net, comprising between 36 and 41 percent of visits for the four weeks ending November 11, 2006.
The Black Friday website had 38 percent of its visits coming from those aged 18-24, and only 31 percent of visitors age 24-34.
Young entrepreneurs 'Capture the Market' with Rolls-Royce 20 November 2006
Students from schools in Derbyshire, Nottinghamshire and Yorkshire went head-to-head in an attempt to ‘Capture the Market’ with Rolls-Royce during Enterprise Week. More than 80 students from Years 10 and 11 worked in teams of six to design, manufacture and sell an innovative product.
The results on Social Enterprise Day (16 November) included jewellery, remote controls, mobile phones and multi-media headsets.
The team from Serlby Park, Bircotes, Doncaster, received a trophy for achieving the biggest profit – more than £2,000 - with their multi-function projector with MP3 capability. Another trophy for the most innovative product was presented to one of the teams from Selston Arts & Community College, Selston, Nottingham, for their unusual hair straightners complete with built-in MP3 player.
Alison Bingham, Enterprise Development Manager at East Midlands Development Agency (EMDA) said: "Enterprise Week is an important event in the calendar and highlights the vital link between business and enterprise education. 'Capture the Market' is a great way to engage students in enterprise education by taking them away from the classroom and giving them hands-on experience of working in a competitive environment.
”Encouraging more young people to develop an enterprising streak can help towards creating a flourishing region by 2020 as outlined in the new Regional Economic Strategy (RES)."
Ged Leahy, Director of Workforce and Skills Planning, Rolls-Royce plc said: “We are delighted that this year’s event has attracted so much interest from schools in the region. Rolls-Royce supports Enterprise education throughout the year and being a part of Enterprise Week for the third consecutive year highlights the importance of this initiative.”
Alison Glazier, teacher at Portland School, Worksop, Nottinghamshire said: “Our students really enjoyed the event and have not stopped talking about what they have learned and the skills they have developed.”
Rolls-Royce employees and East Midlands Business Champions were on hand throughout the day and gave guidance on engineering and business enterprise to the students via a series of masterclasses. The Midlands Engineering Industries Redeployment Group Mobile Resource Centre was also at the event, providing tours and giving advice to students on CV writing and interview skills.
Captions for photographs:
A team of students hard at work manufacturing their products at the 'Capture the Market' event.
A student haggles with a buyer at the 'Capture the Market' event.
Notes to editors:
The schools that took part in ‘Capture the Market’ were:
Brookfield Community School, Chesterfield
Dukeries College, New Ollerton, Newark
Joseph Whitaker School, Mansfield
Kirkby College, Kirby In Ashfield, Nottingham
Netherthorpe School, Staveley, Chesterfield
Portland School, Worksop
Selston Arts & Community College, Selston, Nottingham
Serlby Park, Bircotes, Doncaster
Sutton Centre, Sutton In Ashfield, Nottingham
The Bolsover School, Bolsover, Chesterfield
‘Capture the Market’ is a simple business game designed to support enterprise education and enable pupils to practice Keyskills. Pupils work in teams to design, manufacture and sell products, so that they make a profit. Money has to be borrowed and repaid to buy materials and the teams must negotiate a contract with buyers for their products.
Rolls-Royce is investing in education in order to raise standards, promote engineering, business, enterprise, science and technology, develop our employees, influence policy and strategy in education and support future resourcing needs. For more information and access to resources for schools, visit: www.rolls-royce.com/education.
Rolls-Royce employs 37,000 people worldwide, including 7,500 scientists and engineers. Last year the company spent £30 million on the education and training of its employees, recruiting 170 graduates and 109 apprentices. In addition 364 undergraduates worked in the company for periods of between two and 12 months.
Enterprise Week took place between 13 and 19 November 2006 with a whole host of events throughout the region, such as activities in schools, conferences and competitions, to encourage young people to develop their ideas and entrepreneurial skills.
Business Champions are a task-force of business volunteers who are committed to energising the region. Acting as a conduit for the voice of business, they contribute to the development of the regional economic strategy. They act as mentors to new enterprises and provide commercial expertise to the community – including the voluntary and educational sectors – supporting projects and initiatives where the commercial perspective is needed. And they are dynamic ambassadors who fly the flag for the East Midlands. For further information, visit www.businesschampions.org.uk.
Photon Dynamics to Present at the Lehman Brothers 2006 Global Technology ConferenceNovember 17, 2006 -- Photon Dynamics, Inc. (NASDAQ: PHTN), a leading global supplier of integrated yield management solutions for the flat panel display market, today announced that it will be presenting at the Lehman Brothers 2006 Global Technology Conference on Tuesday, December 5, at 4:30 p.m. PST at the Fairmont Hotel, San Francisco, CA.
Presenting for Photon Dynamics will be Michael Schradle, chief financial officer. A live, audio Web broadcast of the presentation will be available at www.photondynamics.com under 'event calendar' in the 'investors' section of the website. The replay of the presentation will be available after the conclusion of the presentation for two weeks.
About Photon Dynamics
Photon Dynamics, Inc. is a leading global supplier of integrated yield management solutions for the flat panel display market. Photon Dynamics develops systems that enable manufacturers to collect and analyze data from the production line, and quickly diagnose and repair process-related defects, thereby allowing manufacturers to decrease material costs and improve throughput. Founded in 1986, Photon Dynamics is headquartered in San Jose, California with sales and customer support offices in Beijing, China; Seoul, Daejeon, Gumi, and Cheonan, Korea; Hsinchu, Tainan, and Taichung, Taiwan; and Tokyo and Tsu, Japan. For more information about Photon Dynamics, visit its website at www.photondynamics.com.
Charged by the Market: Electricity Moves to Retail Competition
November 17, 2006 -- Deregulation of the electricity industry was supposed to produce competition and deliver reduced retail prices. But in states like Maryland, the benefits of deregulation have been slow to materialize. In the cover story of the fall 2006 issue of Region Focus, Vanessa Sumo explains the economic principles of retail power competition, and why consumers in deregulated states may yet see lower bills.
Also in this issue:
-- Credit on Campus: Some college students use credit cards for everything from tuition to car payments. But there is a fairly solid consensus among mainstream economists that reports of out-of-control student debt have been overblown. -- Arrested Development: It's been 20 years since the last big advance in explaining why some countries grow while others stagnate. Is economic growth theory stunted? -- A Penny's Worth: Though many observers are calling for the end of the penny, an economist argues that there is more to the coin's value than the cost of producing it. -- Interview: Martin Baily, chairman of the Council of Economic Advisers under President Clinton and now a senior fellow with the Institute for International Economics.
Region Focus, a quarterly business magazine published by the Federal Reserve Bank of Richmond, covers the economy and business activities of the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.
For free copies of Region Focus, contact the Bank's Public Affairs Department at 804.697.8109. The articles are available online at http://www.richmondfed.org/publications
MoneyTV, Week of 11/17
November 17, 2006 -- MoneyTV is the nationally syndicated television program all about money and what makes it happen, (http://www.moneytv.net), featuring informative interviews by hosts Donald Baillargeon and Skip Lindeman with company CEOs, providing insights into their operations and outlooks for their futures.
Free information packages from the featured companies can be requested by sending an email to info@moneytv.net.
The television program can also be viewed online immediately at www.moneytv.net.
Featured companies on this week's show include:
Cord Blood America, Inc. (OTCBB: CBAI) CEO Matthew Schissler appeared via satellite from the American Stock Exchange in New York, announced a notable acquisition and revealed some financial numbers.
XsunX, Inc. (OTCBB: XSNX) CEO Tom Djokovich announced the company has been conducting client sales meetings at their facility as a result of their recent marketing efforts.
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Spice Depot, Inc. (PINKSHEETS: SDEP) President Darren Donas demonstrated the company's "Always Grind Fresh" line of spices and spice blends.
Semotus Solutions, Inc. CEO Anthony Lapine announced news of a recent merger agreement.
Open Energy Corporation (OTCBB: OEGY) CEO David P. Saltman spoke from Zurich, Switzerland and discussed the company's European sales efforts.
EnXnet Inc. spokesperson Rich Brenner discussed the company's medical technology and their MoxyCard gift card.
Manhattan West Mortgage CEO Roger Schlesinger spoke of low to moderate income homes available in many areas of the country.
Viewers of MoneyTV can receive free information in the mail about featured companies by calling the toll-free phone number on their TV screen. The weekly television program debuted in 1996 and is broadcast nationally in the USA to 70 million U.S. homes on Saturdays at 11:00 AM ET, Sundays at 8:30 AM PT, 8:30 AM ET, 9:30 AM ET, 3:30 PM ET and Mondays at 6:30 PM ET.
MoneyTV is broadcast to 45 million TV homes in Western Europe, Wednesdays at 5:00 PM.
MoneyTV is also broadcast on UPN-TV in the Virgin Islands and Puerto Rico Sundays at 8:00 AM.
A complete menu of TV listings is available at the MoneyTV web site, http://www.moneytv.net.
MoneyTV television program, Copyright MMVI, all rights reserved. MoneyTV does not provide an analysis of companies' financial positions and is not soliciting to purchase or sell securities of the companies, nor are we offering a recommendation of featured companies or their stocks. Information discussed herein has been provided by the companies and should be verified independently with the companies and a securities analyst. MoneyTV provides companies a 3- to 4-month corporate profile with multiple appearances for a cash fee of $11,500.00 to $17,250.00, does not accept company stock as payment for services, does not hold any positions, options or warrants in featured companies. The information herein is not an endorsement by the producers, publisher or parent company of MoneyTV.
Interest in Exotic Cruises Surges
Study From Luxury Cruise News Also Reveals Cruisers Intend to Spend More and Book Farther in Advance
November 16, 2006 -- Exotic cruise destinations such as the Arctic, Australia, the Baltic, Antarctica and the Orient have all seen a surge in popularity within the last year. This is according to a recent survey of 4,205 travel enthusiasts.
Of those surveyed, all subscribers to Luxury Cruise News, a popular e-newsletter published by Thomas, Townsend & Kent, 53.8% cited they're actively planning a cruise vacation. According to the national survey, conducted with market intelligence firm BIGresearch, the number of people planning cruises to the Orient has risen 81% since last year at this time. Other destinations that can expect to see more cruise business in 2007 are Australia/New Zealand (45% increase), the Baltic (37% increase), and the South Pacific with a 30% increase over last year.
The more traditional cruise destinations that have seen decreased interest are Mexico with survey results pointing to a 19% decline since last year's survey and the Caribbean with a 12% decline. Alaska is also down by 7.5%.
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The rise in more exotic cruise vacations is due in part to the level of cruise experience. 28.6% of survey respondents stated they've taken seven or more cruises vs. 18.5% last year.
"The good news for the industry is that cruisers are incredibly loyal to cruising but destination is the main driver to rebook," said Roy Weiss, publisher of Luxury Cruise News. "Lines that offer diverse destinations have the opportunity to increase share among this very profitable segment," he added.
When survey respondents were asked how much they intend to spend on their upcoming cruise vacations, 31.6% stated they're budgeting over $5,000 for their trip -- a 51% increase over last year. They're also booking farther out -- cruisers booking three months or more in advance has risen 16%.
Individuals interested in receiving a complimentary report on the findings of this recent study can request the information at the TTK website, www.thomastownsendandkent.com.
About Thomas, Townsend & Kent: Chicago-based Thomas, Townsend & Kent (www.thomastownsendandkent.com) is an online publisher of popular e-mail newsletters that target affluent Americans and report on their specific interests -- travel, art, fine dining, and consumer electronics. TTK publications include Art Travel Guide, Home Electronics Journal, Luxury Cruise News, Productivity Journal, and Your Travel Insider, which offer a combined average circulation of more than five million each month. As part of the subscription process, readers of TTK publications provide demographic and purchase-intent data, which is continually updated through regular surveys. This information allows marketers to connect with qualified prospects by advertising with the TTK Newsletter Network and sponsoring targeted solo e-mails to subscribers.
4INFO Honored as Winner of the Silicon Valley Emerging Technology AwardsNovember 15, 2006 -- 4INFO, the leading mobile search and services company, today announced that it won the prestigious Emerging Technology Awards (ETA) for the wireless category. Selected as a winner for their overall mobile search capabilities and for their new, Open Platform service, 4INFO emerged as the category winner from over several hundred entrants. Aimed at celebrating tomorrow's leaders today, the Emerging Technology Awards honor Silicon Valley's spirit of innovation and entrepreneurship.
ETA categories include biotechnology, collaboration, customer relationship management, entertainment, green technology, medical devices, mobile technology, security, supply chain management, internet telephony and wireless. The awards were created by the Silicon Valley/San Jose Business Journal.
"It's an honor to be recognized as a leading innovator among our peers and competitors in Silicon Valley," said Zaw Thet, co-founder and CEO of 4INFO. "4INFO delivers a powerful mobile search service, and today's award further underscores our ability, through our natural language search engine, to deliver the best mobile search experience."
The Silicon Valley/San Jose Business Journal is an award-winning newspaper in Silicon Valley. Published each Friday, it reaches more than 64,700 business executives throughout the world's most dynamic business region. For more than two decades, The Business Journal has identified and chronicled the emerging companies and trends that fuel the valley.
About 4INFO
4INFO enhances the utility of mobile phones by providing users the means to search, discover, and receive relevant information and content. 4INFO's comprehensive suite of mobile services (Text Message Search to 44636, Mobile Web Search at http://mobile.4INFO.net, Text Alerts, and the Mobile Application) provides access to business listings, sports scores, fantasy sports stats, weather, flight information, movie times, horoscopes, hotspot locations, news, stock quotes, hotel reservations, package tracking, mobile downloads, and more. Most services are available free of charge to users on all major U.S. carriers. 4INFO's investment partners include U.S. Venture Partners, Draper Fisher Jurvetson, and Gannett Company, Inc. 4INFO is headquartered in Palo Alto, Calif.
Vision North San Jose Receives Boost From Sony and The Irvine CompanySony Remains in San Jose and The Irvine Company Moves in to Redevelop Sony's Current Site Into Housing
November 14, 2006 -- Sony Electronics announced today it will remain in San Jose and relocate from its current facility at 3300 Zanker Road to 1730 North First Street in North San Jose.
Sony has had a longtime presence in San Jose and now plans to move and occupy 164,000 square feet on six floors in the former Infineon Building, located on the corner of North First Street and Skyport, near Mineta San Jose International Airport and on the VTA light rail line one mile to downtown San Jose. Sony also plans to move into another 55,000 square feet of space at a yet to be named location within San Jose.
"The City of San Jose has demonstrated repeatedly that they understand a global business model, and have worked closely with us to ensure we were able to maintain a scalable operation in the Valley that will allow us to tap into the region's creative and innovative workforce," said Ed Cotter, senior vice president at Sony Electronics.
Sony's new facilities will house approximately 500 employees with several diverse design and development activities ranging from semiconductor design to data storage, intelligent systems development and software solutions.
"Sony is an essential force in the technology industry, and I'm delighted they will continue to call San Jose home because of all the advantages we offer," said San Jose Mayor Ron Gonzales. "I have every confidence the company will continue to thrive here because of the support we provide and the unique talent, tradition, and capital that make Silicon Valley a world leader for technology innovation."
"An investment of $120 million in redevelopment funding has enabled the largest concentration of multinational technology companies to locate and operate in North San Jose's Innovation Triangle," said Harry Mavrogenes, Executive Director, San Jose Redevelopment Agency. "Our relationship with Sony began in 1992 and we are pleased to be able to facilitate Sony's long-term space and investment decisions and continue the partnership."
Sony's move to North First Street will precipitate redevelopment of the Zanker Road site to housing units as part of a long-term plan to evolve the North San Jose area.
"As a company that is committed to San Jose, we too are gratified by Sony's decision," said Max Gardner, president of The Irvine Company Apartment Communities. "We worked closely with the city and Sony to devise a new plan for the site that will convert an outdated office complex into high quality housing close to thousands of jobs. This is an ideal solution for everyone."
The Irvine Company Apartment Communities intends to build an apartment community at the site. Like the company's North Park Apartment Village, the new community will surround a public park. It is expected to include approximately 1,800 apartment homes. Construction could begin as early as 2008.
The momentum created by Sony's move ties into Vision North San Jose, a larger development strategy that evolves North San Jose from a traditional industrial park to a multi-faceted innovation district, involving the upgrading of transportation systems, traffic and pedestrian circulation, creation of opportunities for more San Jose jobs and construction of more homes near those jobs.
Specifically Vision North San Jose provides a framework for greater innovation and prosperity opportunities for businesses and residents alike. Vision North San Jose components include generating 26.7 million square feet of new R&D, office space, 32,000 new high density residential units in close proximity to jobs, 1.7 million square feet of new supporting retail space, $570 million in new transportation improvements, new bicycle and pedestrian facilities as well as parks and open spaces, public safety services, and educational facilities.
According to Paul Krutko, director of the City of San Jose's Office of Economic Development, the plan puts forth a multi-faceted urban environment that will be activated 24/7. "Vision North San Jose strengthens the overall economy and enhances community. Sony is a great example of how the plan reinforces San Jose's economy by retaining high-tech jobs. Plus, with the inclusion of dense housing, restaurants and other amenities, the area will evolve from a corporate office park to a vibrant round-the-clock mid-rise mixed-use urban community," Krutko said.
The new Sony location supports this plan framework with its pedestrian-friendly access to food and fitness outlets and to light rail.
Sony is scheduled to begin operation in its new North First Street facility in 2007.
About the City of San Jose's Office of Economic Development
The City of San Jose's Office of Economic Development (OED) is committed to a vital, competitive San Jose economy that increases prosperity for people and companies and enhances City revenues. The Office guides the City's economic strategy, provides assistance for business success, helps connect employers with trained workers, and provides art and cultural resources to our community. For more information, please visit, www.sjeconomy.com.
About the City of San Jose
From its founding in 1777 as California's first city, San Jose has been a leader, driven by its spirit of innovation. Today, San Jose stands as the largest city in Northern California and the Capital of Silicon Valley -- the world's leading center of innovation. The city, the 10th largest in the U.S., is committed to remaining a top-ranked place to do business, work, live, play and learn. For more information, visit, www.sanjoseca.gov.
Inc. (NASDAQ: GOOG)
announced today that it has closed its acquisition of YouTube, the
consumer media company for people to watch and share original videos.
In connection with the acquisition Google issued an aggregate of
3,217,560 shares, and restricted stock units, options and a warrant
exercisable for or convertible into an aggregate of 442,210 shares, of
Google's Class A common stock. The number of shares of Class A common
stock issued and issuable by Google was calculated by dividing $1.65
billion less certain amounts (approximately $15 million) funded to
YouTube by Google between signing and closing by the average closing
price for the 30 trading days ending on November 9, 2006. 12.5% of
the equity issued and issuable in the transaction will be subject to
escrow for one year to secure certain indemnification obligations.
"We are excited to have closed the acquisition in order to begin
collaborating to offer the best in quality and depth of content, user
experience and new business opportunities for our partners," said Eric
Schmidt, Chief Executive Officer of Google. "YouTube and Google will
together provide innovative and exciting services for our users that
will add a new dimension to on-line media entertainment. We look
forward to working with content creators and owners large and small to
harness the power of the internet to promote, distribute and monetize
their content."
"Google's expertise, technology leadership, and resources will provide
us with the flexibility to innovate and build the best, most
entertaining service on the Internet. In the coming months, we will
roll out many new exciting features and programs to benefit the
creativity and participation of our community," said Chad Hurley, CEO
and Co-Founder of YouTube. "The community will remain the most
important part of YouTube and we are staying on the same course we set
out on nearly one year ago. We will continue to gather and listen to
its feedback and are looking forward to the many opportunities that lie
ahead."
About Google Inc.
Google's innovative search technologies connect millions of people
around the world with information every day. Founded in 1998 by
Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a
top web property in all major global markets. Google's targeted
advertising program provides businesses of all sizes with measurable
results, while enhancing the overall web experience for users. Google
is headquartered in Silicon Valley with offices throughout the
Americas, Europe and Asia. For more information, visit www.google.com.
About YouTube
Founded in February 2005, YouTube is a consumer media company for
people to watch and share original videos worldwide through a Web
experience. YouTube allows people to easily upload and share video
clips on www.YouTube.com and across the Internet through websites,
blogs, and e-mail. YouTube currently delivers more than 100 million
video views every day with 65,000 new videos uploaded daily and it has
quickly become the leading destination on the Internet for video
entertainment.
IBM Internet Security Systems Introduces New Security Management Appliance
New Appliance Eases Complexity of Centralized Security ManagementNovember 13, 2006 -- IBM (NYSE: IBM) today announced its Internet Security Systems division will offer customers a new hardware solution for centralized security management. Based on the existing IBM Proventia® Management SiteProtector™ software, the new appliance is designed to make it easier for companies of all sizes to achieve centralized control of their various security components.
"Obtaining the robust management functionality of SiteProtector in an easy-to-install, easy-to-manage appliance will definitely help us to reduce costs and complexity," said Jim Burris, Network Administrator at Kenco Group, Inc. "The ability to centrally manage all of our security technologies through SiteProtector has already had a positive impact on our security posture and bottom line, and the new appliance will streamline our security operations even further."
"The security landscape continues to grow in complexity as attackers develop new, more sophisticated means of infiltrating corporate networks," said Greg Adams, vice president of product development for IBM Internet Security Systems. "IBM Internet Security Systems therefore continues to develop ways to make managing network threats as simple and effective as possible, and we are confident that this new SiteProtector appliance will increase security efficiencies for many companies."
Proventia Management SiteProtector helps to alleviate the burden and high costs associated with security management through comprehensive, centralized control of an organization's various network and host security components. Unlike many competitive offerings, SiteProtector allows companies to centrally manage their entire range of Internet Security Systems technologies -- including network-based intrusion prevention, multi-function systems, server and desktop security, vulnerability management, anomaly detection and email security -- through a single product. With this new release, SiteProtector now also includes management capabilities for antivirus technology. This comprehensive coverage can eliminate the need to purchase and implement multiple management consoles and enables companies to achieve more effective security, reduce costs, maximize business uptime and more easily maintain regulatory compliance standards.
The new appliance form of this product will simplify security management procedures and decrease time spent installing, configuring, maintaining and upgrading the product. Average estimated set-up time for the appliance, which ships pre-configured, is less than 30 minutes. Additional new features include a more intuitive policy management process, enhanced options for traffic analysis and filtering and an "update now" feature for applying immediate security content updates.
"SiteProtector is a great example of why IBM acquired Internet Security Systems," said Julie Donahue, vice president of security and privacy services, IBM. "Incorporating Internet Security Systems' proactive, integrated security platform into IBM's portfolio will simplify security management and provide customers with the protection they expect from an industry leader."
The IBM Proventia product line is a multi-layered security solution that is designed to provide comprehensive protection from network- and host-based attacks before they impact business assets. IBM Internet Security Systems technology is backed by the world-renowned IBM X-Force® research and development team, which consistently rivals independent researchers and other security vendors with cutting-edge vulnerability analysis.
The Proventia Management SiteProtector hardware is scheduled to be available by the end of the month. Further information on SiteProtector can be found at: http://iss.net/products/Proventia_Management_SiteProtector/product_main_page.html
ISS threat protection systems complement IBM's Tivoli identity and access management software, addressing and managing customer security and privacy needs.
About IBM Internet Security Systems
IBM Internet Security Systems is the trusted security advisor to thousands of the world's leading businesses and governments, providing pre-emptive protection for networks, desktops and servers. An established leader in security since 1994, the IBM Proventia® integrated security platform is designed to automatically protect against both known and unknown threats, keeping networks up and running and shielding customers from online attacks before they impact business assets. IBM Internet Security Systems products and services are based on the proactive security intelligence of its X-Force® research and development team -- the unequivocal world authority in vulnerability and threat research. The Internet Security Systems product line is also complemented by comprehensive Managed Security Services and Professional Security Services. For more information, visit the Internet Security Systems Web site at www.iss.net or call 800-776-2362.
Internet Security Systems and SiteProtector are trademarks and Proventia and X-Force are registered trademarks of International Business Machines Corporation in the United States, other countries, or both. All other companies and products mentioned are trademarks and property of their respective owners.
GuestMetrics, Inc. Signs Additional Restaurant Customers
November 13, 2006 -- Tammy L. Posten, Chief Operating Officer of GUESTMETRICS, INC. (PINKSHEETS: GESM), a software provider and data mining company for the hospitality industry, announced today it had signed contracts with seven additional restaurant groups, representing over forty individual locations.
Stated Ms. Posten, "Our sales channels have been successful in delivering qualified leads in our target markets. We are currently focusing our restaurant sales efforts on the East Coast and are pleased to report a significant expansion in this market."
In its primary market, GuestMetrics signed restaurant contracts with Café Tu Tu Tango, Gilligan's Management Company, Holy City Hospitality, Marlow's Tavern, R.J. Gator's and Southeast Entertainment Restaurant Group. In addition, GuestMetrics recently signed Bartlotta Restaurant Group, its first contract in Wisconsin. These represent independent and regional chains specializing in American, Italian and French cuisines.
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About GuestMetrics
GuestMetrics, Inc. (GuestMetrics) is a software provider and data mining company for the hospitality industry. The company provides a suite of applications, Guest360, which enables restaurateurs to increase their top and bottom line by driving customer loyalty and improving business operations. The technology developed by GuestMetrics provides the infrastructure for restaurateurs to implement gift card and advanced loyalty programs, disseminate and measure targeted promotional campaigns and analyze their daily operations through a secure web-based application. By integrating directly with a restaurant's Point of Sale system, GuestMetrics collects check-level spending data. This information is sold in aggregate to food and alcohol beverage manufacturers, distributors or other companies interested in analyzing customer spending trends. More information about GuestMetrics may be found online at www.guestmetrics.com.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.
Maine & Maritimes Corporation Announces Third Quarter Results
November 13, 2006 -- Maine & Maritimes Corporation (Company or MAM) (AMEX: MAM) today announced a net loss of $3.1 million or ($1.90) per share for its third quarter ended September 30, 2006. This loss is principally attributable to non-recurring expenses totalling $2.3 million*, which are listed in the table below by category. The net loss for the comparable quarter in 2005 was $920,000 or $0.56 per share.
Non-Recurring Charges in Third Quarter Results (in thousands)*: TMGNE Goodwill Impairment and Restructuring Charge $ 1,632 Costs Related to Staff Reductions 328 Write-off of acquisition costs 211 Write-off and Amortization of Cancelled Transmission Plant 126 ------- Total Non-Recurring Charges in Third Quarter 2006 $ 2,297 ======= * Note that all amounts are listed after taxesMAM also announced that it will pause the Company's growth strategy while it evaluates the strategic direction of the Company and selects a new chief executive officer. The Board is reviewing the Company's diversification strategy, which has been in place since 2003, as part of the strategic review process. The desire of the Board is to provide MAM's management with a clear mandate to execute the Company's strategic plan. The Board has enlisted the services of an independent third party to aid in the assessment of the strategic plan and to recommend any changes that might be necessary.
Nathan Grass, Vice Chairman of the Board and MAM's Interim President and Chief Executive Officer, commented, "I am pleased that MAM's senior management is continuing to act quickly and responsibly to address the challenges the Company faces. Their expertise has been directed to manage the Company's operations with the view to achieve improved earnings, cash flow, working capital and leverage, while working closely with all stakeholders." Mr. Grass added, "We are closely monitoring all of our investments with the objective of making changes, if and when necessary, to improve profitability."
Early actions resulting from the business review include a reduction of the Company workforce by approximately 4%. Aggregate costs related to staff reductions during the quarter totaled $547,000 ($328,000 after tax). The staff reductions will allow MAM to reduce cost by approximately $1.0 million per year beginning in 2007. In addition, the pension benefits for staff at Maine Public Service will be frozen as of December 31, 2006. In the transition, participants in the current defined benefit plan will receive supplemental payments to their 401(K) accounts, which will help to offset their change in benefit levels. The pension change is expected to reduce the Company's risk to pension costs of market fluctuations and is expected to reduce expense by approximately $200,000 annually beginning in 2007. The operation of the Hudson, Massachusetts office of The Maricor Group New England has been consolidated into the Boston office to help control costs. An acquisition of an engineering company by The Maricor Group was discontinued, resulting in $211,000 in previously deferred acquisition costs being expensed during the quarter.
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MAM's regulated utility business, Maine Public Service Company (MPS), performed well during the third quarter 2006. The third quarter normally has lower electricity delivery volumes and lower rates than the first and fourth quarters. MPS experienced an operating loss of $89,000 in the current quarter compared to a loss of $47,000 in the prior year third quarter. Third quarter revenue of $8.0 million at MPS was up 7.9% from third quarter 2005, primarily due to contract construction work done for Evergreen Wind Power LLC's generation project in Mars Hill, Maine and an increase in residential rates effective July 15, 2006. However, revenue increases in the third quarter 2006 were offset by higher costs incurred by the ongoing tree-cutting program and higher administrative expenses, which included accruals related to the staff reduction of $344,000. MPS successfully recovered 90% of the costs associated with a transmission line project; however, a $191,000 charge to stranded costs, representing the year-to-date amortization of the recoverable portion, plus an $81,000 charge in non-operating expense for the unrecoverable portion also increased third quarter 2006 costs.
The net loss from The Maricor Group, MAM's unregulated engineering service businesses, was $1.9 million for the quarter, compared to a loss of $285,000 for the same period last year. The current quarter results were negatively impacted by a $1.5 million goodwill impairment loss charge (after tax) taken following an assessment of the long-term prospects for the Boston division of The Maricor Group's engineering assets. The Maricor Group Canada has a solid sales pipeline and is performing well; therefore, no impairment was recognized for this division. The Canadian operations increased revenue in the third quarter to over $1.0 million, up 34% over the third quarter 2005, due in part to the acquisition of Pace Engineering in May 2006, the strengthening of the Canadian dollar against the U.S. dollar, as well as increased service delivery to Atlantic and other parts of Canada.
Maricor Technologies incurred a net loss of $187,000 for the third quarter 2006, compared to a net loss of $76,000 in the third quarter 2005. Maricor Technologies completed the bulk of software development in the spring of this year, resulting in no capitalization of costs in the current quarter. The Company is continuing to invest in marketing of the newly released product with a focus on strategic partners.
A summary of Maine & Maritimes Corporation and Subsidiaries Statement of Consolidated Operations for the third quarters and nine months ended September 30, 2006 and September 30, 2005 is presented as follows.
MAINE & MARITIMES CORPORATION AND SUBSIDIARIES Summary Statements of Consolidated Operations (Unaudited) (dollars in thousands except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 --------- --------- --------- --------- Regulated Operating Revenues $ 8,033 $ 7,445 $ 25,499 $ 24,833 Unregulated Operating Revenues 1,491 1,299 4,370 4,100 --------- --------- --------- --------- Total Operating Revenues $ 9,524 $ 8,744 $ 29,869 $ 28,933 Loss from Continuing Operations Allocable to Common Shareholders $ (3,110) $ (920) $ (2,888) $ (437) Income from Discontinued Operations - - 1 5 --------- --------- --------- --------- Total Consolidated Net Loss $ (3,110) $ (920) $ (2,887) $ (432) ========= ========= ========= ========= Basic Loss per Common Share from Continuing Operations $ (1.90) $ (0.56) $ (1.76) $ (0.26) Basic Income per Common Share from Discontinued Operations - - - - --------- --------- --------- --------- Total Loss per Common Share $ (1.90) $ (0.56) $ (1.76) $ (0.26) ========= ========= ========= ========= Diluted Loss per Common Share from Continuing Operations $ (1.90) $ (0.56) $ (1.76) $ (0.26) Diluted Loss per Common Share from Discontinued Operations - - - - --------- --------- --------- --------- Total Loss per Common Share $ (1.90) $ (0.56) $ (1.76) $ (0.26) ========= ========= ========= ========= Average Shares Outstanding 1,638,027 1,636,437 1,637,627 1,636,170 --------- --------- --------- ---------About Maine & Maritimes Corporation
Maine & Maritimes Corporation (MAM) is the parent of a group of companies providing regulated electricity transmission and distribution services in the State of Maine, and providing engineering, technology and other services to companies focused on efficient use of energy and sustainable development in new facility construction or existing facility redevelopment in the U.S. and Canada. MAM employs its engineering and technical expertise to also invest in public or private real estate development projects involving renewal of existing structures or development of new facilities where infrastructure already exists.
Maine & Maritimes Corporation is publicly owned and its shares trade on the American Stock Exchange (AMEX: MAM). MAM's headquarters are in Presque Isle, Maine, and its subsidiaries maintain offices in Boston, Massachusetts, and Portland, Maine in the U.S.A. and in Moncton and Saint John, New Brunswick, and Halifax, Nova Scotia, in Canada.
Operating entities within the MAM group include: Maine Public Service Company, a regulated electricity transmission and distribution utility; The Maricor Group and its subsidiaries, The Maricor Group Canada, Ltd, and The Maricor Group New England, Inc., which provide engineering, energy efficiency, asset development and sustainable lifecycle asset management services; Maricor Technologies, Inc., a sustainable asset governance and facility performance management software firm; and Maricor Properties Ltd., a Canadian real estate development and investment company, 50% owned by Ashford Investments, Inc.
Cautionary Statement Regarding Forward-Looking Information
Except for historical information, all other information provided in this news release consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1935. Although Maine & Maritimes Corporation (MAM) believes that in making such statements its expectations are based on reasonable assumptions, any such statements involve uncertainties and risks that may cause actual results to differ materially from those projected, anticipated or implied. MAM cautions that there are certain factors that can cause actual results to differ materially from forward-looking information that has been provided, including, without limitation, potential changes in applicable laws and regulations, potential changes in management, its ability to raise necessary operating and growth capital, increased interest costs, its ability to execute its business plans in a timely and efficient manner, potential costs and difficulties related to integration of potential acquired businesses, the loss of customers and other factors that are more detailed in MAM's filings with the Securities and Exchange Commission. MAM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that may or may not occur after the date of this news release.
SurfControl Warns Internet Users of a Malicious Trojan Keylogger Inside Spoofed Adobe E-mail Message
November 13, 2006 -- SurfControl (LSE: SRF), the leading provider of global on-demand, network and endpoint IT security solutions, is currently tracking a malicious Trojan keylogger concealed in a spoofed e-mail message claiming to be from Adobe. The e-mail asks users to download the latest version of Adobe Reader 7.0.8.
Clicking on the link in the e-mail downloads a Trojan keylogger that, after executing, will then download additional malicious files and will monitor the user's browser, potentially stealing the user's confidential data. The threat then opens the relevant Adobe read me page in the browser in order to appear legitimate. Additionally, the threat also installs malware that utilizes the infected user's computer as a zombie, to send out spam e-mails that appear to come from Microsoft advertising Windows Live Messenger. These spammed e-mails link to malware files on another server, similar to the malware in the original Adobe spoof e-mail.
SurfControl's Threat Analysis and Research department is uniquely positioned to provide protection through its Adaptive Threat Intelligence Service that spans the globe and across all products. Around-the-clock exchange of information on new threats allows SurfControl's Threat Experts to be at the forefront of Internet protection. SurfControl adds any new signatures, rules and/or URLs to all products in the SurfControl Enterprise Protection Suite.
About SurfControl
SurfControl provides a portfolio of security solutions to protect our customers from Internet threats, deliver business and regulatory compliance, and enable business continuity. SurfControl believes that security should be treated as a science, delivering protection at multiple points -- "in the cloud" with on-demand security services, on the network with software and appliances, and on the desktop and mobile client. All of SurfControl's solutions for Web, e-mail and endpoint security are backed by industry-leading threat detection technologies, delivered by SurfControl's Global Threat Experts who work 24/7 to provide customers with dynamic zero-day protection. The company protects more than 14.5 million users in over 23,000 customers worldwide, and employs more than 600 people in offices across Europe, the Americas, and Asia/Pacific. For further information and news on SurfControl, please visit www.surfcontrol.com.
Woodward Reports Fourth Quarter and Fiscal 2006 Results
November 13, 2006 -- Woodward Governor Company (NASDAQ: WGOV) today reported financial results for its fourth quarter and fiscal year 2006.
Highlights
-- Record sales of $855 million in 2006 -- GAAP earnings for 2006 were $1.99 per share, including $0.24 per share from items highlighted below -- Industrial Controls' segment earnings improved to 10.3 percent of sales for 2006, from 5.4 percent of sales in the previous year -- Aircraft Engine Systems' segment earnings continued to exceed 20 percent of sales for 2006 -- Net cash provided by operating activities for 2006 increased 16 percent over the prior year to $81 million
Net sales for the quarter were $232.9 million, up 7 percent from $217.5 million for the fourth quarter of the prior year. Net earnings for the quarter were $17.1 million, or $0.49 per share, compared with $11.3 million, or $0.32 per share, in the previous year's fourth quarter (all per share amounts are diluted).
Net sales for the full fiscal year were $854.5 million, up 3 percent from $827.7 million in the prior year. Net earnings for the year were $69.9 million, or $1.99 per share, compared with $56.0 million, or $1.59 per share in the previous year, which included the items highlighted below:
In Millions, Net Per Of Income Taxes Share Items that increased (decreased) earnings for 2006: Change in valuation allowance for deferred tax assets $13.7 $0.39 Expense accruals for certain legal matters (5.3) (0.15) Items that increased earnings for 2005: Gain on retirement healthcare benefit curtailment $4.9 $0.14 Gain on sale of product rights 2.4 0.07
Woodward adopted the new accounting standard for stock compensation in 2006. As a result of adopting the new standard, net earnings decreased by $0.4 million, or $0.01 per share, for the fourth quarter of 2006 and by $1.8 million, or $0.05 per share, for the full year.
"A key objective for 2006 was to increase earnings by significantly raising Industrial Controls' profitability, while maintaining Aircraft Engine Systems' profitability despite significantly higher investment in R&D," said President and Chief Executive Officer Thomas A. Gendron. "We achieved that goal, and in doing so, we strengthened our competitiveness and further enhanced our ability to serve customers and win new business in the future."
Gendron continued, "Industrial Controls' segment earnings nearly doubled to 10.3 percent of sales for the year, driven by a manufacturing consolidation in 2005 and early 2006, supply chain productivity initiatives, and market and management-initiated changes in our product mix. The Aircraft Engine Systems segment delivered earnings of 20.4 percent of sales, within the target range of 20 to 22 percent. The substantial increase in R&D to support recent program wins, including the GEnx™ engine and the PW600 family of engines, was largely offset by the beneficial effects of higher volume and operating leverage."
Cash Flow and Financial Position
Net cash provided by operating activities was $80.5 million for the year compared with $69.4 million last year. Capital expenditures were $31.7 million for the year compared with $26.6 million last year. Purchases of treasury stock, primarily made in connection with repurchase authorizations by the Board of Directors, totaled $22.3 million for the year compared with $7.3 million last year. The debt to total capitalization ratio was 13.3 percent at the end of the year, compared to 18.1 percent at the end of the prior year.
Segment Results
Industrial Controls' net sales for the fourth quarter were $146.6 million, an increase of 3 percent from $142.0 million for the fourth quarter a year ago. Segment earnings for the quarter were substantially higher at $14.7 million compared to $4.2 million for the same quarter a year ago.
Industrial Controls' net sales for the full year were $541.0 million, an increase of 1 percent from $536.9 million last year. Segment earnings for the year increased 93 percent to $55.7 million from $28.8 million last year.
Aircraft Engine Systems' net sales for the fourth quarter were $86.4 million, an increase of 14 percent from $75.6 million for last year's fourth quarter. Segment earnings for the quarter increased 18 percent to $18.2 million from $15.5 million for the same quarter a year ago.
Aircraft Engine Systems' net sales for the full year were $313.5 million, an increase of 8 percent from $290.8 million last year. Segment earnings for the year were $63.9 million compared to $64.1 million last year. Last year's results included a $3.8 million pre-tax gain from the sale of product rights highlighted earlier.
Nonsegment expenses for the full year were $32.7 million compared to $17.9 million last year. This increase primarily relates to the pre-tax amount of accruals for certain legal matters highlighted earlier and the effects of the new accounting standard for stock compensation.
Business Acquisition
As previously announced, Woodward acquired SEG Schaltanlagen-Elektronik-Geräte GmbH & Co. KG on October 31, 2006, which will be part of the Industrial Controls segment. The acquisition provides Woodward with technologies and products that complement our power generation system solutions. SEG offers a wide range of protection and comprehensive control systems for power generation and distribution applications, power inverters for wind turbines, and complete electrical systems for gas and diesel engine-based power stations.
The acquisition also expands Woodward's relationships with several key customers. SEG's sales were approximately $60 million in calendar year 2005. We anticipate SEG will be accretive to our earnings in its first year of operations.
In line with our overall growth strategies, SEG adds dimension and range to our core technologies and product portfolio.
Outlook
Mr. Gendron continued, "Our future growth of sales and earnings will be based on the sustained demand by OEMs for fuel-efficient, low-emission components and systems meeting exacting requirements. Over the next few years, we will continue to develop new products and pursue strategic acquisitions and alliances in order to gain market share and expand into adjacent markets. Throughout, we will remain focused on profitability, and managing our resources effectively and prudently to moderate the effects of short-term economic and market volatility."
Mr. Gendron concluded, "For 2007, we are currently anticipating company-wide sales growth of 12 to 15 percent, including the effects of the SEG acquisition and earnings of $2.05 to $2.15 per share. For Industrial Controls, we expect sales will grow 13 to 16 percent and generate segment earnings of 10 to 12 percent of sales. For Aircraft Engine Systems, we expect sales growth of 10 to 12 percent and segment earnings of 20 to 22 percent."
Conference Call
Woodward will hold an investor conference call at 7:30 a.m. CT on Tuesday, November 14, 2006, to provide an overview of the fourth quarter and 2006 financial performance, business highlights, and outlook for next year. You are invited to listen to the live webcast of our conference call or a recording and view or download accompanying presentation slides at our website, www.woodward.com.
You may also listen to the call by dialing 1-866-818-1223 (domestic) or 1-703-639-1376 (international). Participants should call prior to the start time to allow for registration; the Conference ID is 990546. An audio replay will be available by telephone from 10:30 a.m. CT on November 14 until 11:59 p.m. CT on November 16, 2006. The telephone number to access the replay is 1-888-266-2081 (domestic) or 1-703-925-2533 (international), reference access code 387581.
About Woodward
Woodward is the world's largest independent designer, manufacturer, and service provider of energy control solutions for aircraft engines, industrial engines and turbines, and power generation and mobile industrial equipment. The company's innovative control, fuel delivery, and combustion systems help customers worldwide operate cleaner, more reliable, and cost effective equipment. Woodward is headquartered in Rockford, Illinois, and serves global power generation, transportation, process industries, and aerospace markets from locations worldwide. Visit our website at www.woodward.com.
The statements in this release concerning the company's future sales, earnings, business performance, prospects, and the economy in general reflect current expectations and are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from projections or any other forward-looking statement and we have no obligation to update our forward-looking statements. Factors that could affect performance and could cause actual results to differ materially from projections and forward-looking statements are described in Woodward's Annual Report and Form 10-K for the year ended September 30, 2005 and Form 10-Q for the quarter ended June 30, 2006. Woodward's Form 10-K for the year ended September 30, 2006 will be issued by mid-December 2006.
Woodward Governor Company and Subsidiaries CONSOLIDATED STATEMENTS OF EARNINGS Three months ended Year ended September 30, September 30, -------------------- -------------------- (In thousands except per share 2006 2005 2006 2005 amounts) --------- --------- --------- --------- Net sales $ 232,911 $ 217,530 $ 854,515 $ 827,726 --------- --------- --------- --------- Costs and expenses: Cost of goods sold 164,208 164,020 612,263 623,680 Sales, general, and administrative expenses 22,465 22,175 92,013 79,858 Research and development costs 18,089 14,890 59,861 49,996 Amortization of intangible assets 1,723 1,761 6,953 7,087 Curtailment gain - - - (7,825) Interest expense 1,188 1,459 5,089 5,814 Interest income (755) (644) (2,750) (2,159) Other income (982) (1,004) (4,245) (9,322) Other expense 353 583 834 1,489 --------- --------- --------- --------- Total costs and expenses 206,289 203,240 770,018 748,618 --------- --------- --------- --------- Earnings before income taxes 26,622 14,290 84,497 79,108 Income taxes 9,533 3,039 14,597 23,137 --------- --------- --------- --------- Net earnings $ 17,089 $ 11,251 $ 69,900 $ 55,971 ========= ========= ========= ========= Per share amounts: Basic $ 0.50 $ 0.33 $ 2.03 $ 1.64 Diluted $ 0.49 $ 0.32 $ 1.99 $ 1.59 ========= ========= ========= ========= Weighted-average number of shares outstanding: Basic 34,145 34,377 34,351 34,200 Diluted 34,966 35,298 35,191 35,127 ========= ========= ========= ========= Woodward Governor Company and Subsidiaries CONSOLIDATED CONDENSED BALANCE SHEETS At September 30, At September 30, (In thousands) 2006 2005 ---------------- ---------------- Assets Current assets: Cash and cash equivalents $ 83,718 $ 84,597 Accounts receivable 117,254 107,403 Inventories 149,172 149,336 Income taxes receivable 1,787 5,330 Deferred income taxes 23,526 18,700 Other current assets 5,777 4,207 ---------------- ---------------- Total current assets 381,234 369,573 Property, plant, and equipment-net 124,176 114,787 Goodwill 132,084 131,035 Other intangibles-net 71,737 78,564 Deferred income taxes 10,439 2,310 Other assets 9,579 9,197 ---------------- ---------------- Total assets $ 729,249 $ 705,466 ================ ================ Liabilities and shareholders' equity Current liabilities: Short-term borrowings $ 517 $ 8,419 Current portion of long-term debt 14,619 14,426 Accounts payable 38,978 37,015 Accrued liabilities 66,877 68,647 ---------------- ---------------- Total current liabilities 120,991 128,507 Long-term debt, less current portion 58,379 72,942 Other liabilities 71,190 71,548 ---------------- ---------------- Total liabilities 250,560 272,997 Shareholders' equity 478,689 432,469 ---------------- ---------------- Total liabilities and shareholders' equity $ 729,249 $ 705,466 ================ ================ Woodward Governor Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS September 30, September 30, (In thousands) 2006 2005 ------------- ------------- Net cash provided by operating activities $ 80,536 $ 69,432 ------------- ------------- Cash flows from investing activities: Payments for purchase of property, plant, and equipment (31,713) (26,615) Proceeds from sale of property, plant, and equipment 698 3,706 ------------- ------------- Net cash used in investing activities (31,015) (22,909) ------------- ------------- Cash flows from financing activities: Cash dividends paid (13,742) (11,861) Proceeds from sales of treasury stock 4,163 6,674 Purchases of treasury stock (22,306) (7,292) Excess tax benefits from stock compensation 3,305 - Net proceeds (payments) from borrowings under revolving lines (8,025) 2,899 Payments of long-term debt (14,510) (923) Other payments (318) - ------------- ------------- Net cash used in financing activities (51,433) (10,503) ------------- ------------- Effect of exchange rate changes on cash 1,033 (318) ------------- ------------- Net change in cash and cash equivalents (879) 35,702 Cash and cash equivalents, beginning of year 84,597 48,895 ------------- ------------- Cash and cash equivalents, end of year $ 83,718 $ 84,597 ============= ============= Woodward Governor Company and Subsidiaries OTHER SELECTED INFORMATION Three months ended Year ended September 30, September 30, -------------------- -------------------- (In thousands) 2006 2005 2006 2005 --------- --------- --------- --------- External net sales: Industrial Controls $ 146,556 $ 141,959 $ 540,975 $ 536,937 Aircraft Engine Systems 86,355 75,571 313,540 290,789 Segment earnings: Industrial Controls 14,646 4,202 55,704 28,821 Aircraft Engine Systems 18,240 15,497 63,859 64,052 Earnings reconciliation: Total segment earnings 32,886 19,699 119,563 92,873 Nonsegment expenses (5,831) (4,594) (32,727) (17,935) Curtailment gain - - - 7,825 Interest expense and income, net (433) (815) (2,339) (3,655) --------- --------- --------- --------- Consolidated earnings before income taxes $ 26,622 $ 14,290 $ 84,497 $ 79,108 ========= ========= ========= ========= Capital expenditures 12,052 10,290 31,713 26,615 Depreciation expense 4,954 5,491 22,064 24,451 ========= ========= ========= ========= Woodward Governor Company and Subsidiaries RECONCILIATION OF EARNINGS BEFORE INCOME TAXES TO EBITDA Three months ended Year ended September 30, September 30, -------------------- -------------------- (In thousands) 2006 2005 2006 2005 --------- --------- --------- --------- Net earnings $ 17,089 $ 11,251 $ 69,900 $ 55,971 Income taxes 9,533 3,039 14,597 23,137 Interest expense 1,188 1,459 5,089 5,814 Interest income (755) (644) (2,750) (2,159) Amortization of intangible assets 1,723 1,761 6,953 7,087 Depreciation expense 4,954 5,491 22,064 24,451 --------- --------- --------- --------- EBITDA $ 33,732 $ 22,357 $ 115,853 $ 114,301 ========= ========= ========= ========= EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure. The use of this measure is not intended to be considered in isolation of or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Securities analysts, investors, and others frequently use EBITDA in their evaluation of companies, particularly those with significant property, plant, and equipment, and intangible assets that are subject to amortization. At September 30, 2006, property, plant, and equipment, and intangible assets subject to amortization represented 27 percent of our total assets.
Eddie Bauer Agrees to Be Acquired by an Affiliate of Sun Capital Partners, Inc. and Golden Gate Capital
Nov. 13 -- Eddie Bauer Holdings, Inc. (NASDAQ:EBHI) and Eddie B Holding Corp., a company owned by affiliates of Sun Capital Partners, Inc. and Golden Gate Capital, today announced that they have entered into a definitive agreement under which Eddie B Holding Corp. has agreed to acquire Eddie Bauer for $9.25 per share in cash. The per share consideration represents an approximate 12% premium to the prior four weeks' average closing price of Eddie Bauer's common stock. The total transaction value is approximately $614 million, including debt to be repaid of approximately $328 million, as of September 30, 2006. The sale is the culmination of an exploration of strategic alternatives initiated by Eddie Bauer in May 2006.
Fabian Mansson, Chief Executive Officer of Eddie Bauer, commented, "Following a comprehensive review process, our Board of Directors has unanimously determined that the transaction announced today is in the best interests of our Company and its stockholders. We believe that the transaction will provide Eddie Bauer with new resources and the time necessary to execute our turnaround strategy. We look forward to partnering with Sun Capital and Golden Gate, who bring extensive experience in the retail and catalog sectors, to take our Company to the next level and to capitalize on the potential of the Eddie Bauer brand."
Gary Talarico, Managing Director of Sun Capital Partners, Inc., added, "We are pleased to join with Golden Gate Capital in signing this definitive agreement to acquire one of the best known brands in the apparel industry. We are particularly excited about the combination of the considerable experience of our respective firms in retailing, apparel and direct marketing and look forward to working with the management of Eddie Bauer to continue the success and growth of the brand."
"We are very pleased to have reached an agreement with the Eddie Bauer Board of Directors, and we look forward to working with the Company to continue to serve its customers with outstanding products consistent with the Eddie Bauer heritage," said Stefan Kaluzny, a Managing Director at Golden Gate Capital.
Affiliates of Sun Capital Partners, Inc. and Golden Gate Capital are active investors in the retail and consumer products industries. Among Sun Capital's current affiliated portfolio companies are Mervyn's, Shopko Stores, Lillian Vernon, Marsh Supermarkets, Anchor Blue Retail Group, Dim Branded Apparel, and Most. Among Golden Gate Capital's current investments is Catalog Holdings, a $1.1 billion revenue direct marketer of women's apparel whose brands include Spiegel, Newport News, Appleseed's, Norm Thompson, Drapers and Damons, Venus, and Haband, among other titles. Other consumer products investments include Herbalife, Eye Care Centers of America, Neways, and Leiner Health Products.
The transaction, which is anticipated to close in the first quarter of 2007, is subject to the approval of Eddie Bauer stockholders and other customary closing conditions, including Hart-Scott-Rodino antitrust review. The transaction is not subject to a financing condition.
The Board of Directors of Eddie Bauer has unanimously approved the merger agreement and recommends that Eddie Bauer's stockholders vote to approve the agreement. The Company expects to file its preliminary proxy statement with respect to the transaction within ten days. A Form 8-K with a copy of the merger agreement will be filed with the Securities and Exchange Commission later today.
Goldman Sachs & Co. served as Eddie Bauer's financial advisor in connection with the transaction and Goldman Sachs & Co. and William Blair & Company each rendered separate fairness opinions to the Eddie Bauer Board of Directors as to the fairness, from a financial point of view, of the consideration to be received by Eddie Bauer's stockholders in the merger.
As previously announced, Eddie Bauer plans to report third quarter and year-to-date 2006 financial results on Tuesday, November 14, 2006. The Company will host a conference call on November 14, at 1:30 p.m. PT (4:30 p.m. ET) to discuss the Company's financial results for the third quarter ended September 30, 2006.
-- To access the live conference call, participants may dial 800-565-5442 or 913-312-1298. -- Webcast participants may sign up at the investors section of Eddie Bauer's website (http://investors.eddiebauer.com/events.cfm). -- A recorded replay of the conference call may be accessed through the Web site, or by dialing 888-203-1112 or 719-457-0820 and entering the code 9156428. The call will be rebroadcast through November 17, 2006 and will be available on the Company's website. About Sun Capital Partners
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 135 companies worldwide with combined sales in excess of $30.0 billion since Sun Capital's inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, New York, London, and Shenzhen.
About Golden Gate Capital
Golden Gate Capital is a private equity firm with over $2.6 billion of capital under management dedicated to investing in change-intensive opportunities. The firm's charter is to partner with world-class management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value. The principals of Golden Gate Capital have a long and successful history of investing with management partners across a wide range of industries and transaction types. For more information, please visit www.goldengatecap.com.
About Eddie Bauer
Established in 1920 in Seattle, Eddie Bauer is a specialty retailer that sells casual sportswear and accessories for the modern outdoor lifestyle. Eddie Bauer believes the Eddie Bauer brand is a nationally recognized brand that stands for high quality, innovation, style and customer service. Eddie Bauer products are available at approximately 380 stores throughout the United States and Canada, through catalog sales and online at www.eddiebauer.com and www.eddiebaueroutlet.com. Eddie Bauer also participates in joint venture partnerships in Japan and Germany and has licensing agreements across a variety of product categories.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential" and similar expressions. All of the forward-looking statements contained in this press release are based on estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known factors. Although we believe such estimates and assumptions are reasonable, they are inherently uncertain and involve risks and uncertainties. In addition, management's assumptions about future events may prove to be inaccurate. We caution you that the forward-looking statements contained in this press release are not guarantees of future events, and we cannot assure you that such statements will be realized. In all likelihood, actual results will differ from those contemplated by such forward-looking statements as a result of a variety of factors, including our inability to hire, retain and train key personnel; delays in enhancement of our disclosure controls and procedures; our inability to revitalize Eddie Bauer as a premium quality brand; changes in general economic conditions, consumer confidence and consumer spending patterns; risks associated with legal and regulatory matters; risks associated with rising energy costs; risks associated with reliance on information technology; challenges as a result of our involvement in our former parents bankruptcy process; the diversion of management's attention from operations while establishing post-emergence infrastructure and evaluating strategic alternatives; our inability to improve profitability of our retail stores, catalogs and website operations; our inability to source our requirements from our current sourcing agents; a significant disruption in our back-end operations; the inability of our joint venture partners to operate our joint ventures effectively; our inability to protect our trademarks and other proprietary intellectual property rights; unseasonable or severe weather conditions; our inability to use our net operating losses to reduce taxes; our ability to obtain stockholder approval for the proposed transaction; limitations on our ability to take actions pursuant to the merger agreement; employee attrition or distraction resulting from the proposed transaction; loss of vendors due to uncertainty surrounding the proposed transaction; and the other risks identified in our periodic reports filed pursuant to the Securities Exchange Act of 1934, as amended. Except as required by law, we undertake no obligation to update any of these forward-looking statements.
