NSFOCUS Positioned in Gartner Magic Quadrant for Web Application Firewalls

TOKYO, Aug. 5, 2014 /PRNewswire/ — NSFOCUS TECHNOLOGIES, INC., a global provider of distributed denial of service (DDoS) mitigation solutions and Web security, today announced it has been included in Gartner’s first Web Application Firewall (WAF) Magic Quadrant Report. NSFOCUS is positioned for its “completeness of vision” and “ability to execute.”

NEWS FACT:

  • Gartner definition of the Web Application Firewall Market – The Web application firewall (WAF) market is defined by a customer’s need to protect internal and public Web applications when they are deployed locally (on-premises) or remotely (hosted, “cloud” or “as a service”). WAFs are deployed in front of Web servers to protect Web applications against hackers’ attacks, to monitor access to Web applications, and to collect access logs for compliance/auditing and analytics. WAFs are most often deployed in-line, as a reverse proxy, because historically it was the only way to perform some in-depth inspections. Other deployment modes exist, such as transparent proxy, bridge mode, or the WAF being positioned out of band (OOB) and, therefore, working on a copy of the network traffic.

NSFOCUS CAPABILITIES:

  • Dedicated R&D and support teams and competitive price/performance – For more than a decade, NSFOCUS research and development teams have monitored and studied Web attacks, vulnerabilities and DDoS threats, providing mitigation solutions to enterprises, hosting providers and data centers around the globe. The company’s web security solutions detect vulnerabilities and DDoS attacks and mitigate against malicious activity in real time, without affecting the flow of good user traffic.
  • Web Application Firewall collaborates and communicates with NSFOCUS anti-DDoS System – By communicating with the Scrubbing Center of NSFOCUS Anti-DDoS System (ADS), the WAF has the ability to mitigate application-layer DDoS attacks (such as HTTP GET/POST Flood) and small attacks. It redirects incoming Web traffic to the ADS system when congestion is detected and then switches back to normal, protecting website customers from the risks of Web application attacks and DDoS threats while alleviating the challenges of latency issues.
  • The product has earned a number of local and global product certifications – including ISCA WAF certification and the Veracode Level 4 VerAfied security mark.

SUPPORTING QUOTE:

Yonggang Han, Director of Global Business, NSFOCUS, said,

“With the ever-increasing number of threats perpetrated by hackers today, the need for enterprise-grade Web security solutions is greater than ever before. Our extensive product line provides an “all-in-one” solution to data centers, ISPs and enterprises to fight against the most sophisticated Web attacks and DDoS threats.”

Gartner Web Application Firewalls Magic Quadrant by Jeremy D’Hoinne, Adam Hils, Greg Young, Joseph Feiman, June 17, 2014.

Social Media Resources:

LinkedIn: http://linkd.in/Sl8QsN 
Blog: http://nsfocusblog.com/

About NSFOCUS

Founded in 2000, NSFOCUS provides enterprise-level, carrier-grade solutions and services for distributed denial of service (DDoS) mitigation, Web security and enterprise-level network security. With more than a decade of experience in DDoS research and development and mitigation, NSFOCUS has helped customers around the world maintain high levels of Internet security, website uptime and business operations to ensure that their online systems remain available. For more information, visit www.nsfocus.com.

About the Magic Quadrant

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Frost & Sullivan Honors Vitro Biopharma for its Outstanding Technological Innovations and Business Strategy in the Stem Cell Tools Industry

–The company aims to increase the market penetration of its proprietary MSC-based research products, while expanding its stem cell segment to include differentiated cells derived from MSCs

MOUNTAIN VIEW, Calif., Aug. 5, 2014 /PRNewswire/ — Based on its recent analysis of the stem cell tools and technologies industry, Frost & Sullivan recognizes Vitro Biopharma with the 2014 North American Frost & Sullivan Award for Technology Innovation Leadership. Vitro Biopharma has excelled in the development of tools and technologies to support stem cell research and clinical studies of mesenchymal stem cells (MSCs). The company offers different cell culture media for the maintenance and differentiation of growing MSCs, while simultaneously expanding its product line to include measurement tools and technologies that determine the potency, quality, response, and behavior of MSCs.

Vitro Biopharma produces not only native MSC lines, but also fluorescent-labeled MSC lines that can be utilized in tracking studies and in vivo live cell imaging. The company, in partnership with Hemogenix, Inc., has developed a proprietary read-out system for accurate measurement of cellular ATP content to test cellular functionality. Based on the HALO® assay platform for high-sensitivity analysis of hematopoietic stem cells (HSCs), this technology is one of the most sensitive bioluminescent read-out assays and includes fluorescent and absorbance-based cellular functionality analyses.

Vitro Biopharma has developed a proprietary MSC line culture media, MSC-Gro™, which has been optimized to support growth and differentiation of MSC lines. The major competitive advantages of this media over its peers are increased rate of growth and superior quality and potency of the MSC lines. Studies have shown that yields reach two to three times the number of cells when utilizing MSC-Gro media culture. Moreover, MSC-Gro media formulations can be stored for more than a year at 2 degrees Celsius to 8 degrees Celsius without alterations.

“Diversity is the other important advantage of Vitro’s technology. The media allows the user to prepare additional formulations according to the requirements of various primary cells, such as neurons, hepatocytes, and fibroblasts,” said Frost & Sullivan Industry Analyst Cecilia Van Cauwenberghe. “The level of serum in the media (serum-containing or serum-free) enables customers to design a broader spectrum of applications. In fact, customers can select the media that suits each application, under liquid or powder formulations.”

Beyond commercial products based on stem cell life sciences tools and technologies, Vitro Biopharma is pursuing white space innovation through its proprietary intellectual property tuned to specific inventions and medical applications. It entered into a license agreement for intellectual rights to the production and purification of the pituitary hormone, FSH, to be used in fertility treatments. Similarly, it licensed the rights for the use of a stem cell line for the treatment of infertility. The company is advancing toward the design of a new cell reprogramming technique, with a pending patent application related to novel methods for generation of induced PSCs (iPSCs) from adult stem cells (ASCs).

Currently, Vitro Biopharma is commercializing a series of stem cell-based assays for osteoporosis drug discovery and discovery of stem cell activation agents through assays of ASC proliferation, migration and reprogramming. Among its most relevant services is the customized biomarker panel analysis to quantify the levels of multiple biological molecules in biological samples. Indeed, under its new business perspective, the assay of human serum samples collected from patients from multiple European clinical treatment centers could make the company a leading provider of serial bio-analytical tools and technologies, not only in North America, but also in Central Europe.

Vitro Biopharma is also working on accelerating healing of bone fractures using MSCs and strengthening bones by activating certain protein signals and molecules. Although optimal signaling of pathways to activate MSCs with the goal of repairing or regenerating bone tissue is still under development, preliminary studies demonstrate significant potential for the creation of new drugs to treat osteoporosis. In fact, the company recently launched its initial line of osteoblasts derived from human MSCs for use in drug discovery and development.

Meanwhile, Vitro Biopharma is aligning its scheduled stages of clinical trials to test mobilization of endogenous stem cells in the treatment of traumatic brain injury and autism spectrum disorders (ASD). For this condition, pre-clinical research strongly suggests that activation of certain biochemical pathways increases stem cell proliferation, migration, and regenerative performance. Vitro Biopharma’s approach eliminates stem cell transplantation, while providing a non-controversial, cost- and time-effective alternative to the current methodologies of competitors.

“Vitro Biopharma’s technology platform allows generation of iPSCs from ASCs, including MSCs and other subclasses, avoiding the utilization of transfection mechanisms through environmental conditions and small molecules to induce the expression of some reprogramming factors through promoter activation,” noted Van Cauwenberghe. “The utilization of ASCs, including MSCs, represents a powerful, efficient, and safe alternative to ESCs derived from embryos.”

Vitro Biopharma’s business strategy involves the participation of biopharmaceutical firms, large distributors, and contract research organizations (CROs). One of the most successful decisions of Vitro Biopharma has been its merger with Neuromics Inc. to accelerate growth in the near term. The former’s research products are primarily focused on ASCs and derivative products, while the latter’s product lines include antibodies and biomarkers, as well as an impressive number of products for proteomics and genomics, apoptosis assays, molecular biology reagents, and complementary assays products.

This partnership has enabled Vitro Biopharma to focus on the development of its own pipeline of drug discovery and development products including stem cell-based assays. Vitro Biopharma’s innovative business model facilitates the establishment of diversified sources and well-implemented sales strategies to penetrate research and clinical development markets with its unique stem cell-based technology platform.

Each year, Frost & Sullivan presents this award to the company that demonstrates uniqueness in developing and leveraging new technologies, which significantly impacts both the functionality and the customer value of the new products and applications. The award lauds the high R&D spend toward innovation, its relevance to the industry and the positive impact on brand perception.

Frost & Sullivan’s Best Practices Awards recognize companies in a variety of regional and global markets for outstanding achievement in areas such as leadership, technological innovation, customer service, and product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.

About Vitro Biopharma

Vitro Diagnostics, Inc. dba Vitro Biopharma (OTCQB: VODG; http://www.vitrobiopharma.com), owns US patents for production of FSH, immortalization of pituitary cells, and a cell line that produces beta islets for use in treatment of diabetes.  In 2011, Vitro Biopharma out-licensed its intellectual property related to treatment of infertility to Dr. James Posillico, a renowned expert in Assisted Reproductive Technologies. Vitro Biopharma also owns a pending patent for methods of mesenchymal stem cell (MSC) generation and related materials. Vitro Biopharma’s mission is “Harnessing the Power of Cells™” for the advancement of regenerative medicine to its full potential. Vitro Biopharma operates within a modern biotechnology manufacturing, R&D and corporate facility in Golden, Colorado. Vitro Biopharma manufactures and sells “Tools for Stem Cell and Drug Development™,” including human mesenchymal stem cells and derivatives, the MSC-Gro™ Brand of optimized media for MSC self-renewal and lineage-specific differentiation. In addition to our FSH patent licensee, Vitro Biopharma maintains several strategic partnerships, including an alliance with Neuromics, Inc. (www.neuromics.com). Neuromics, Inc. is a primary distributor of Vitro Biopharma products and a well-established manufacturer and distributor of a large variety of life science research products especially focused on cell-based assay systems. We jointly manufacture stem cell assay systems with HemoGenix®, Inc. (http://www.hemogenix.com/), known as the MSCglo quantitative assay for determination of MSC quality, potency and response to toxic agents. Also, Vitro Biopharma’s CEO is a consultant on an NSF grant at the City College of New York to advise Dr. Lane Gilcrest, professor of Materials Science and Engineering, and his colleagues regarding the development of novel extracellular materials for use in self-renewal and differentiation of mesenchymal stem cells.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Register:        Gain access to visionary innovation

Contact:

Mireya Espinoza
P: +1-210-247-3870
F: +1-210-348-1003
E: mireya.espinoza@frost.com

Media Contact for Vitro Biopharma:

Dr. Jim Musick
P: +1-303-999-2130
F: +1-303-762-1240
E: jim@vitrobiopharma.com

 

 

AMRI Announces Second Quarter 2014 Results

— Adjusted Diluted EPS of $0.22, up 100%

— Total Revenue of $68.2 million, including Contract Revenue of $61.5 Million, up 15%

— Company Increases 2014 Adjusted EPS Guidance to $0.87 – $0.92 to Reflect Addition of OsoBio and Strengthening Contract Business

ALBANY, New York, Aug. 5, 2014 /PRNewswire/ — AMRI (NASDAQ: AMRI) today reported financial and operating results for the second quarter ended June 30, 2014.

Highlights:

  • Second quarter contract revenue of $61.5 million, up 21% from 2013
  • Second quarter adjusted diluted EPS of $0.22 vs. $0.11 in 2013
  • Expanded second quarter contract margins to 27% from 16% in 2013
  • Acquired Oso Biopharmaceuticals Manufacturing in July 2014, expanding contract manufacturing capabilities to include commercial scale, complex injectable drug product

Updated Financial Guidance 2014:

  • Full year contract revenue guidance increased to between $275 and $283 million, an increase of 33% at the midpoint
  • Royalty revenue guidance of $25 million
  • Adjusted EBITDA between $59 and $63 million, up 24% at the midpoint
  • Adjusted diluted EPS range between $0.87 and $0.92, compared to $0.70 in 2013, an increase of 28% at the midpoint, despite a $10 to $12 million decrease in estimated royalties from Allegra
  • Operating cash flow of $27 to $30 million

Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures, which exclude certain items detailed later in this press release under the heading “Non-GAAP Adjustment Items.”  Reconciliations of these non-GAAP measures to GAAP measures are included in Tables 1 and 2 at the end of this press release.

“We are very pleased with our results this quarter, highlighted by a 34% growth in our large scale manufacturing business and the addition of Cedarburg Pharmaceuticals,” said William S. Marth, AMRI’s president and chief executive officer. “Importantly, contract margins improved across our entire operations as a result of increased capacity utilization and the addition of the higher margin Cedarburg Pharmaceuticals business.”

“We continue to see growth in our pipeline of discovery and development programs, notably the expansion of our innovative Insourcing chemistry program, together with the addition of new development and supply programs in our API and Drug Product divisions,” continued Mr. Marth. “Based on anticipated continued growth of our business and the recent addition of OsoBio, we are raising our outlook for 2014 with contract revenue growth of 33% and adjusted diluted EPS growth of 29% at the midpoint.”

Second Quarter 2014 Results

Total revenue for the second quarter of 2014 was $68.2 million, an increase of 15% compared to total revenue of $59.3 million reported in the second quarter of 2013.

Total contract revenue for the second quarter of 2014 was $61.5 million, an increase of 21% compared to contract revenue of $50.8 million reported in the second quarter of 2013. Contract margins were 26.7% for the second quarter of 2014, compared with 16.4% for the second quarter of 2013, driven by increased capacity utilization and the addition of Cedarburg Pharmaceuticals.

Royalty revenue in the second quarter of 2014 was $6.7 million, a decrease of 21% from $8.5 million in the second quarter of 2013. Royalty revenue for the second quarter of 2014 includes royalties from the Allegra® products as well as $2.5 million from the net sales of certain amphetamine salts sold by Actavis.

Net income under U.S. GAAP was $3.7 million, or $0.11 per diluted share, in the second quarter of 2014, compared to a U.S. GAAP net loss of $(2.5) million, or $(0.08) per basic and diluted share for the second quarter of 2013. Net income on an adjusted basis in the second quarter of 2014 was $7.1 million or $0.22 per diluted share, compared to adjusted net income of $3.6 million or $0.11 per diluted share.  Net income on an adjusted basis excludes the following items that are included under U.S. GAAP:  the impact of restructuring charges, executive transition costs, convertible debt interest and amortization charges, business acquisition costs, litigation settlement charges, write-offs of deferred financing costs,  non-cash long-lived asset impairment charges, losses on disposals of assets related to restructuring activities, insurance demutualization gains, depreciation and amortization of purchase accounting adjustments, non-recurring income tax adjustments, and postretirement benefit plan settlement gains.

Year to Date

Total revenue for the six-month period ended June 30, 2014 was $127.5 million, an increase of 7% compared to total revenue of $118.7 million for the same period in 2013.

Total contract revenue for the first six months of 2014 was $112.5 million, an increase of 16% compared to contract revenue of $97.3 million for the same period in 2013.

Royalty revenue for the first six months of 2014 was $15.0 million, a decrease of 30% from $21.4 million in 2013. Royalty revenue for the six-month period ended June 30, 2014 includes royalties from the Allegra® products as well as $4.8 million from the net sales of certain amphetamine salts sold by Actavis.

Net income under U.S. GAAP for the first half of 2014 was $7.2 million, or $0.22 per diluted share, compared to U.S. GAAP net income of $3.8 million, or $0.12 per diluted share for the first half of 2013. Net income on an adjusted basis in the first half of 2014 was $12.2 million or $0.37 per diluted share, compared to adjusted net income of $10.6 million or $0.34 per share in 2013. For a reconciliation of U.S. GAAP net income (loss) and earnings (loss) per diluted share as reported to adjusted net income (loss) and earnings (loss) per diluted share for the 2014 and 2013 reporting periods, please see Table 1 at the end of this press release. During the second quarter of 2014 we identified certain tax liabilities that should have been recorded as tax expense in various immaterial amounts during the periods from 2007 through 2013. Financial results for the three and six months ended June 30, 2013 have been updated from previously reported amounts to reflect the immaterial prior period income tax adjustments.

Segment Results

Discovery Services and Development/Small Scale Manufacturing

Discovery Services and Development/Small Scale Manufacturing (DDS) contract revenue for the second quarter of 2014 was $19.5 million, consistent with the second quarter of 2013 as decreases in Discovery Services were offset by increases in Development/Small Scale Manufacturing. DDS contract margins were 19.1% for the second quarter of 2014, compared with 13.1% for the second quarter of 2013, driven by a stronger mix of business and the benefit of cost reduction initiatives in both Discovery Services and Development/ Small Scale Manufacturing.

DDS contract revenue for the first half of 2014 was $39.0 million, a decrease of 2% from the first half of 2013 as decreases in Discovery Services were largely offset by increases in Development/Small Scale Manufacturing. DDS contract margins were 17.8% for the first half of 2014, compared with 14.9% for the first half of 2013.

Large Scale Manufacturing
Large Scale Manufacturing (LSM) contract revenue for the second quarter of 2014 was $42.0 million, an increase of 34% from $31.3 million in 2013.  LSM contract revenue for the second quarter of 2014 includes $5.5 million of revenues from the Cedarburg Pharmaceuticals business that was acquired in April 2014. LSM adjusted contract margins were 30.5% in the second quarter of 2014, compared with 18.4% for the second quarter of 2013, driven by increased capacity utilization and improved mix including the Cedarburg business.

LSM contract revenue for the first half of 2014 was $73.5 million, an increase of 27% from $57.7 million in 2013.  LSM adjusted contract margins were 25.9% in the first half of 2014, compared with 19.2% for the first half of 2013.

Liquidity and Capital Resources

At June 30, 2014, AMRI had cash, cash equivalents and restricted cash of $136.9 million, compared to $171.0 million at March 31, 2014. The decrease in cash and cash equivalents for the quarter ended June 30, 2014 was primarily due to the use of $38.7 million to acquire Cedarburg Pharmaceuticals, $4.8 million in debt payments, and $3.5 million of capital expenditures, offset by cash flow from operations of $12.4 million. Total common shares outstanding, net of treasury shares, were 32,419,424 at June 30, 2014.  Since the close of the second quarter we subsequently used $109.3 million of cash to acquire the Oso Biopharmaceuticals Manufacturing business.

Second Quarter Results Conference Call

The conference call can be accessed by dialing 888-438-5525 (domestic calls) or 719-325-2354 (international calls) at 9:50 a.m. ET and entering passcode 9752010. The audio webcast will be available live via the Internet and can be accessed on the company’s website at www.amriglobal.com.

Replay of the conference call can be accessed by dialing 888-203-1112 (domestic calls) or 719-457-0820 (international calls) and entering passcode 9752010 from Tuesday, August 5, 2014 at 2:00 p.m. ET to Wednesday, August 6, 2014 at 2:00 p.m. ET.  Replay of the audio webcast can also be accessed for up to 90 days after the call via the investor area of the company’s website at www.amriglobal.com/investor_relations/.

About AMRI

Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization that has been working with the Life Sciences industry to improve patient outcomes and the quality of life for more than two decades. With locations in North America, Europe and Asia, our key business segments include Large Scale Manufacturing (LSM) and Discovery and Development Solutions (DDS). The LSM segment includes Active Pharmaceutical Ingredients (API) and Drug Product Manufacturing, which supports the commercial cGMP manufacturing of complex APIs, starting materials, clinical formulation development and aseptic fill and finish. Our DDS segment provides comprehensive services from hit identification to IND, including expertise with diverse chemistry, library design and synthesis, in vitro biology and pharmacology, drug metabolism and pharmacokinetics, as well as natural products. For more information about AMRI, please visit our website at www.amriglobal.com or follow us on Twitter (@amriglobal).

Forward-looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include, but are not limited to, statements regarding the company’s estimates of revenue, contract revenue, adjusted EBITDA adjusted diluted earnings per share for the full year 2014, statements made by the company’s Chief Executive Officer, including statements under the caption “Updated Financial Guidance,” statements regarding the strength of the company’s business and prospects, statements regarding the impact of recent acquisition activity, and statements concerning the company’s momentum and long-term growth, including expected results for 2014. Readers should not place undue reliance on our forward-looking statements. The company’s actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company’s control. Factors that could cause such differences include, but are not limited to, trends in pharmaceutical and biotechnology companies’ outsourcing of chemical research and development, including softness in these markets; sales of Allegra® and the impact of the “at-risk” launch of generic Allegra®, the OTC conversion of Allegra® and the generic and OTC sales of Allegra in Japan on the company’s receipt of significant royalties under the Allegra® license agreement; the success of the sales of other products for which the company receives royalties; the risk that the company will not be able to replicate either in the short or long term the revenue stream that has been derived from the royalties payable under the Allegra® license agreements; the risk that clients may terminate or reduce demand under any strategic or multi-year deal; the company’s ability to enforce its intellectual property and technology rights; the company’s ability to obtain financing sufficient to meet its business needs; the company’s ability to successfully comply with heightened FDA scrutiny on aseptic fill/finish operations; the results of further FDA inspections; the company’s ability to effectively maintain compliance with applicable FDA and DEA regulations; the company’s ability to integrate past or future acquisitions, including Cedarburg Pharmaceuticals and Oso Biopharmaceuticals Manufacturing , and make such acquisitions accretive to the company’s business model, the company’s ability to take advantage of proprietary technology and expand the scientific tools available to it, the ability of the company’s strategic investments and acquisitions to perform as expected, as well as those risks discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on March 17, 2014, and the company’s other SEC filings. Revenue, contract revenue, adjusted diluted EPS, adjusted EBITDA and other financial guidance offered by senior management today represent a point-in-time estimate and are based on information as of the date of this press release. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. Numerous factors, including those noted above, may cause actual results to differ materially from the guidance provided. The company expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.

Non-GAAP Adjustment Items

To supplement our financial results prepared in accordance with U.S. GAAP, we have presented non-GAAP measures of income (loss) from operations, net income (loss) and income (loss) per diluted share, as adjusted to exclude certain restructuring charges, executive transition costs, convertible debt interest and amortization charges, business acquisition costs, litigation settlement charges, write-offs of deferred financing costs,  non-cash long-lived asset impairment charges, losses on disposals of assets related to restructuring activities, insurance demutualization gains, depreciation and amortization of purchase accounting adjustments, non-recurring income tax adjustments, and postretirement benefit plan settlement gains in the 2014 and 2013 periods.  We have also presented non-GAAP measures of adjusted EBITDA, which in addition to the items excluded above, further excluded the impact of interest income and expense, depreciation and amortization expense, and income tax expense or benefit.  Exclusion of these non-recurring items allow comparisons of operating results that are consistent over time.  We believe presentation of these non-GAAP measures enhances an overall understanding of our historical financial performance because we believe they are an indication of the performance of our base business. Management uses these non-GAAP measures as a basis for evaluating our financial performance as well as for budgeting and forecasting of future periods. For these reasons, we believe they can be useful to investors. The presentation of this additional information should not be considered in isolation or as a substitute for income (loss) from operations, net income (loss) or income (loss) per diluted share prepared in accordance with U.S. GAAP.  Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are set forth in Tables 1 and 2.  Our projected 2014 adjusted EPS and EBITDA, however, are only provided on an adjusted basis.  It is not feasible to provide GAAP EPS guidance because the items excluded are difficult to predict and estimate and are primarily dependent on future events.

 

Albany Molecular Research, Inc.
Condensed Consolidated Statements of Operations (unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands, except for per share data)

June 30, 2014

June 30, 2013

June 30, 2014

June 30, 2013

Contract revenue

$ 61,474

$ 50,764

$ 112,512

$ 97,257

Recurring royalties

6,705

8,528

14,988

21,441

          Total revenue

68,179

59,292

127,500

118,698

Cost of contract revenue

45,038

42,450

86,648

80,272

Technology incentive award

424

569

1,017

1,683

Research and development

128

171

207

276

Selling, general and administrative

12,747

12,454

23,376

22,003

Postretirement benefit plan settlement gain

(1,285)

Restructuring charges

1,042

4,953

1,272

5,832

Property and equipment impairment charges

3,718

906

3,718

1,440

          Total operating expenses

63,097

61,503

114,953

111,506

Income (loss) from operations

5,082

(2,211)

12,547

7,192

Interest expense, net

(3,065)

(137)

(5,681)

(274)

Other (expense) income, net

(192)

377

(232)

884

Income (loss) before income taxes

1,825

(1,971)

6,634

7,802

Income tax (benefit) expense

(1,899)

504

(590)

4,000

Net income (loss)

$ 3,724

$ ( 2,475)

$ 7,224

$ 3,802

Basic income (loss) per share

$ 0.12

$ (0.08)

$ 0.23

$ 0.12

Diluted income (loss) per share

$ 0.11

$ (0.08)

$ 0.22

$ 0.12

 

Albany Molecular Research, Inc.
Selected Consolidated Balance Sheet Data
(unaudited)

(Dollars in thousands)

June 30,
2014

December 31,
2013

Cash and cash equivalents……………………..

$        130,417

$            175,928

Restricted cash……………………………..

6,467

714

Accounts receivable, net. …………………….

58,480

52,216

Royalty income receivable…………………….

6,541

7,523

Inventory………………………………….

44,277

31,991

Total current assets………………………….

260,818

279,019

Restricted cash…………………………………………

3,810

Property and equipment, net…………………..

131,619

127,775

Total assets………………………………..

520,150

445,268

Total current liabilities……………………….

50,168

48,849

Long‑term debt, excluding current installments, net of unamortized
   discount…….

122,154

123,135

Total liabilities……………………………..

266,877

204,511

Total stockholders’ equity…………………….

253,273

240,757

Total liabilities and stockholders’ equity………….

520,150

445,268

 

Table 1:  Reconciliation of three and six months ended June 30, 2014 and 2013 reported income (loss) from operations, net income (loss) and earnings (loss) per diluted share to adjusted income from operations, adjusted net income and adjusted earnings per share:

(Dollars in thousands, except for per share data)
Non-GAAP Measures

Second Quarter

Second Quarter

YTD

YTD

2014

2013

June 30, 2014

June 30, 2013

Income (loss) from operations, as reported

$              5,082

$              (2,211)

$           12,547

$           7,192

Impairment charges

3,718

906

3,718

1,440

Restructuring charges

1,042

4,953

1,272

5,832

Executive transition costs

(14)

386

626

386

Business acquisition costs

1,346

1,668

Purchase accounting depreciation and amortization

275

275

Postretirement benefit plan settlement gain

(1,285)

Litigation settlement

1,920

1,920

Income from operations, as adjusted

$               11,449

$                 5,954

$         18,821

$         16,770

Net income (loss), as reported

$              3,724

$              (2,475)

$         7,224

$         3,802

Adjustments, net of tax:

Impairment charges

2,417

906

2,417

1,253

Restructuring charges

653

3,553

850

4,182

Executive transition costs

(9)

251

407

251

Business acquisition costs

875

1,084

Purchase accounting depreciation and amortization

179

179

Postretirement benefit plan settlement gain

(835)

Convertible debt interest and amortization charges

1,641

3,257

Write-off of deferred financing costs

286

286

Non-recurring income tax adjustments

(2,715)

46

(2,715)

92

Litigation settlement

1,248

1,248

Insurance demutualization gain

(252)

Loss on disposal of assets

63

63

Net income (loss), as adjusted

$                 7,051

$                 3,592

$         12,154

$         10,639

Income (loss) per diluted share, as reported

$                0.11

$                (0.08)

$            0.22

$            0.12

Adjustments, net of tax:

Impairment charges

0.07

0.03

0.07

0.04

Restructuring charges

0.02

0.11

0.03

0.14

Executive transition costs

0.01

0.01

0.01

Business acquisition costs

0.03

0.03

Purchase accounting depreciation and amortization

0.01

0.01

Postretirement benefit plan settlement gain

(0.03)

Convertible debt interest and amortization charges

0.05

0.10

Write-off of deferred financing costs

0.01

0.01

Non-recurring income tax adjustments

(0.08)

(0.08)

Litigation settlement

0.04

0.04

Insurance demutualization gain

(0.01)

Loss on disposal of assets

Earnings per diluted share, as adjusted

$                0.22

$                0.11

$             0.37

$             0.34

 

Table 2:  Reconciliation of three and six months ended June 30, 2014 and 2013 reported income (loss) from operations to adjusted EBITDA:

QTD

QTD

YTD

YTD

June 30,
2014

June 30,
2013

June 30,
2014

June 30,
2013

Income (loss) from operations, as reported

$ 5,082

$ (2,211)

$ 12,547

$ 7,192

Impairment charges

3,718

906

3,718

1,440

Restructuring charges

1,042

4,953

1,272

5,832

Executive transition costs

(14)

386

626

386

Business acquisition costs

1,346

1,668

Postretirement benefit plan settlement gain

(1,285)

Litigation settlement

1,920

1,920

Income from operations, as adjusted

11,174

5,954

18,546

16,770

Add: Non-operating (expense) income net, as reported

(192)

377

(232)

844

Deduct: insurance demutualization gain

(388)

Add: Loss on disposal of assets

97

97

Add: Depreciation and amortization

4,263

3,949

8,024

8,012

Adjusted EBITDA

15,245

10,377

26,338

25,335

 

Frost & Sullivan Applauds F Cubed for its Game-Changing MRSA Screener, the NESDEP IU

— As the technology measures the DNA and not the vector, it can be deployed to screen multiple pathogens

MOUNTAIN VIEW, Calif., Aug. 5, 2014 /PRNewswire/ — Based on its recent analysis of the methillicin-resistant Staphylococcus aureus (MRSA) screening market, Frost & Sullivan recognizes F Cubed, LLC. with the 2014 North America Frost & Sullivan Award for Technology Innovation Leadership. F Cubed’s portable device, the NESDEP IU, can rapidly and cost-effectively screen patients suspected of having contracted MRSA. This screening tool can help eliminate unwanted side effects, time, anxiety, and the huge costs associated with the treatment of MRSA.

The NESDEP IU can be operated by laymen with minimal staff training The device operates on a biochip that measures 7 millimeters (mm) by 14 mm and comprises nano-scale electrodes and microfluidic structures that contain a mix of carbon nanotubes characterized to hybridize with very specific DNA molecules.

Importantly, the NESDEP IU and its associated screening test are 10 times less expensive than competing medical equipment in the market. The NESDEP IU can screen a MRSA-suspect patient within two hours, thereby accelerating the delivery of an appropriate treatment.

“The device is highly durable and portable, and comes in a durable MIL-SPEC plastic case with wheels. It weighs approximately 35 kg and can fit on a 3-foot table top,” said Frost & Sullivan Saju Mathew, Industry Analyst. “In the future, F Cubed plans to integrate several biochips into the system to enable the simultaneous detection of a wider range of pathogens.”

Apart from being applied for the rapid identification of pathogenic bacteria in medical diagnostics, F Cubed uses the NESDEP IU in food safety and environmental science applications as well. It is also looking into pathogens such as E. coli, Listeria, and Salmonella due to the recent passage of the Food Safety Modernization Act in 2011. As the regulatory hurdles in the food safety industry are not as stringent as in the medical diagnostics industry, Frost & Sullivan expects strong traction for F Cubed in this segment.

“F Cubed’s technology rests on exclusive licenses obtained from the University of Notre Dame (Notre Dame, Indiana) and the Technion-Israel Institute of Technology,” noted Saju Mathew. “Through careful, strategic patent planning, F Cubed has isolated critical features and pursued strategies that are most likely to protect the company’s value.”

Furthermore, to ensure an efficient and healthy relationship with its customers, initially, F Cubed will only serve those regions where service personnel are only a day’s drive away from the customer’s location. The low requirements for device functioning and maintenance are allowing F Cubed to consider penetrating countries with inadequate resources, infrastructure, or trained medical staff.

The company’s technology will truly go a long way in saving lives as well as ensuring safer food and water. For these important technological advances, Frost & Sullivan is proud to present the 2014 North America Frost & Sullivan Award for Technology Innovation Leadership to F Cubed.

Each year, Frost & Sullivan presents this award to the company that has demonstrated uniqueness in developing and leveraging new technologies, which significantly impacts both the functionality and the customer value of the new products and applications. The award lauds the high R&D spent toward innovation, its relevance to the industry and the positive impact on brand perception.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.

About F Cubed LLC

F Cubed LLC was founded in 2010 in South Bend, Indiana to create a molecular diagnostic method taking a raw sample to a full assay in less than two hours.  The company licensed the AC Dielectrophoretic technology from the University of Notre Dame.  F Cubed is divided into three separate companies, Food Safety, Environmental and Medical.  Tests have been developed to detect MRSA, lymphatic filariasis, E.coli, listeria and salmonella. Future tests include cryptosporidium, C.difficile, enterococcus and campylobacter.

Trials for water testing are set to begin with the City of South Bend Water Treatment Facility, food testing with Purdue University and FDA 510K trials with 4 U.S. hospitals.

For more information, visit www.fcubed.biz.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Contact:

Mireya Espinoza
P: +1.210.247.3870
F: +1.210.348.1003
E: mireya.espinoza@frost.com 

F Cubed, LLC
Robert C. Williams
Vice President, Sales & Marketing
1441 N. Michigan Street, Suite 2000
South Bend, IN  46617
Office:  +1-574-234-2611
bwilliams@fcubed.biz 
www.fcubed.biz

Apple TV Sales Slowing in Crowded OTT Field, says Strategy Analytics

BOSTON, Aug. 5, 2014 /PRNewswire/ — Apple TV sales growth has slowed significantly this year, down to a 12 percent annual growth rate at an estimated 1.9 million units sold in Q2 2014 according to Strategy Analytics Connected Home Devices (CHD) service report, “CE Vendor Quarterly Analysis Apple (AAPL): Q2 2014.”

Logo – http://photos.prnewswire.com/prnh/20130207/NE56457LOGO-b

Click here for the report:
CE Vendor Quarterly Analysis Apple (AAPL): Q2 2014

Other key findings from the report include:

  • OTT Streamer shipments are forecast to rise 54 percent in 2014, reflecting strong demand for affordable delivery of OTT content on TV screens.
  • Strategy Analytics estimates that Apple TV market share in the OTT Streamer segment has fallen about 10 points from 38 percent in 2012 down to 27 percent in 2014.
Global OTT Streamer Unit Shipments.

Global OTT Streamer Unit Shipments.

Photo – http://photos.prnewswire.com/prnh/20140804/132964

Quotes:

David Watkins, Service Director, Connected Home Devices commented: “Google and Amazon have staked their claims on the OTT Streamer segment and now the aging Apple TV is lacking features like voice control, gaming support, and most of all, an open app store. Many of those features are rumored to be part of the next generation Apple TV, but delays are impeding its chance to succeed before Google’s Android TV and Amazon’s Fire TV grab a foothold in the market.”

Eric Smith, Analyst, Connected Home Devices said: “To be fair, the next generation Apple TV would be revolutionary if Apple’s negotiations with service providers like Comcast clear the way for 4K video delivery or integrated Pay TV and OTT delivery through a single box. To the latter point, technology giants like Intel have unsuccessfully spent hundreds of millions of dollars to break into the Pay TV business; convincing Pay TV providers and content owners to share control of lucrative video content with non-traditional players will continue to be challenging.”

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

US Contact: Eric Smith, +1-617-614-0700, esmith@strategyanalytics.com
European Contact: David Watkins, +33-5-33-05-00-53, dwatkins@strategyanalytics.com