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Recession stock: Big Lots
Posted Mar 5th 2009 3:50PM by Jamie Dlugosch
Filed under: Earnings reports, Good news, Stocks to Buy, Recession
Discount retailer Big Lots Inc. (NYSE: BIG) saw its shares surge higher in Wednesday trading after it posted a fourth-quarter profit from continuing operations that came in ahead of analysts expectations and offered a better-than-expected outlook.
Clearly, investors view BIG as a recession stock to own.
Earnings from continuing operations totaled a dollar per share, ahead of the 93 cents per share analysts were expecting, and 3 cents higher than the year-ago quarter. Revenue fell to $1.37 billion from $1.41 billion last year, but beat expectations of $1.36 billion. Same-store sales fell a mild 3.2%, as sales of discretionary items, such as furniture and toys, were challenging.
Big Lots, which specializes in sales of excess inventory, forecast income from continuing operations to range from $1.75 to $1.90 per share this year, compared with analyst expectations for earnings of $1.74 per share.
CEO Steve Fishman attributed the results and outlook to Big Lots offering its customers "better quality merchandise, new brands, and tremendous value at a time when they needed it the most."
He also mentioned that the company controlled costs very diligently and recorded the lowest expense rate in its history, investing for the future in new IT systems, and said that it opened 21 stores during the year.
Fishman said the global economic crisis over the last several months kept the company from performing as well as it could have in 2008, as it did for most businesses.
He also said the company has always believed that if it improved its merchandise offerings, made good real estate decisions and relentlessly attacked the cost structure, good things could happen for the business.
NOTE: any one who believed that merchandise are improved its offerings,
He noted that while sales comps were down in the 3% range for the fourth quarter, it was a continuation of the trends seen in the latter part of September and October. He said the consumer is focused on need-based product right now and is holding off until the last possible moment for bigger discretionary purchases.
Big Lots is not planning any big shifts, according to Fishman. He said that because of the deep, longstanding relationships the company has with its vendor partners, and the continuing struggles of other retailers, Big Lots anticipates more deals will be made available at savings that can then be passed on to customers to create excitement in stores.
NOTE: the big lots is not planning of any shifts, the continuing is struggles of other retailers,
The company will focus on value and savings from a marketing perspective. In-store signage has been overhauled, and its new television commercials will focus on savings and value.
Big Lots expects to open 45 stores this year, with the largest concentration in the coastal areas of the Northeast, the Carolinas and Florida, and in the west. Those were areas where it was the most difficult to find store leases in the company's price range during the past few years.
With retailers like Circuit City and Linens 'n Things closing shop, the company will have leverage in negotiating favorable terms on new stores.
It just goes to show that recessions can be positive for some companies.
Louis Navellier's PortfolioGrader Pro, which offers free ratings for nearly 5,000 Wall Street stocks, BIG an A or Strong Buy.
Jamie Dlugosch is a contributor to InvestorPlace.com.
Tags: big, big lots, BigLots, dlugosch, louis navellier, louis navelliers portfoliograder pro, LouisNavellier, LouisNavelliersPortfoliograderPro, portfolio grader, portfolio grader pro, PortfolioGrader, PortfolioGraderPro, recession stock, recession stocks, RecessionStock, RecessionStocks, retail, retail stocks, retailers, RetailStocks
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Tuesday, March 17, 2009
MARKITING CONCEPT INTERNATIONAL ANNOUNCES APPOINTMENT
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Marketing Concepts International Announces Appointment
Thu. March 05, 2009; Posted: 09:01 AM
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TORONTO, Mar 05, 2009 (MARKET WIRE via COMTEX) -- MCCI | Quote | Chart | News | PowerRating -- Marketing Concepts International (PINKSHEETS: MCCI | Quote | Chart | News | PowerRating) announces Trust Fund Finance Director.
Kenneth W. Mann, President and CEO, announced the appointment of Jim Shelley to oversee the MCCI shareholder trust account. Mr. Shelley is an experienced Corporate and Private banking executive. He began his career with Citibank in New York, served as President and CEO for Bank of America from 1986 to 1992. He then acted as Senior Account Manager for Coutts and Co. in the Bahamas. Since 1998, Jim has independently managed a portfolio of investments for clients with focus on tax efficiency and secured returns. Throughout his career, Mr. Shelley has been recognized for his successful turnaround strategies, employing a hands-on consultative style with both his clients and employees.
NOTE:MR.shelley has been recognized for his succesful turn around strategies,
The shareholders of MCCI will receive a preferred stock dividend, which will be distributed as sales are generated by the MCCI clients being funded. A percentage of the client corporations' net sales will be deposited in a trust account with a Canadian chartered bank.
The trust account will be used to establish a cash value for all outstanding preferred shares. As sales increase, either from existing MCCI clients or from the acquisition of new clients, the trust account will reflect the increase in the value of the preferred shares. All or any part of an MCCI stockholder's preferred shareholdings may be redeemed for its cash value at any time.
For more information, visit our website www.marketingconceptsintl.com or send an email to info@marketingconceptsintl.com
This release may include projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable; it can give no assurances that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.
Contact:
Marketing Concepts International
info@marketingconceptsintl.com
SOURCE: Marketing Concepts International
mailto:info@marketingconceptsintl.com
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Marketing Concepts International Announces Appointment
Thu. March 05, 2009; Posted: 09:01 AM
Stocks RSS
Are you looking to increase you ETF knowledge?
TORONTO, Mar 05, 2009 (MARKET WIRE via COMTEX) -- MCCI | Quote | Chart | News | PowerRating -- Marketing Concepts International (PINKSHEETS: MCCI | Quote | Chart | News | PowerRating) announces Trust Fund Finance Director.
Kenneth W. Mann, President and CEO, announced the appointment of Jim Shelley to oversee the MCCI shareholder trust account. Mr. Shelley is an experienced Corporate and Private banking executive. He began his career with Citibank in New York, served as President and CEO for Bank of America from 1986 to 1992. He then acted as Senior Account Manager for Coutts and Co. in the Bahamas. Since 1998, Jim has independently managed a portfolio of investments for clients with focus on tax efficiency and secured returns. Throughout his career, Mr. Shelley has been recognized for his successful turnaround strategies, employing a hands-on consultative style with both his clients and employees.
NOTE:MR.shelley has been recognized for his succesful turn around strategies,
The shareholders of MCCI will receive a preferred stock dividend, which will be distributed as sales are generated by the MCCI clients being funded. A percentage of the client corporations' net sales will be deposited in a trust account with a Canadian chartered bank.
The trust account will be used to establish a cash value for all outstanding preferred shares. As sales increase, either from existing MCCI clients or from the acquisition of new clients, the trust account will reflect the increase in the value of the preferred shares. All or any part of an MCCI stockholder's preferred shareholdings may be redeemed for its cash value at any time.
For more information, visit our website www.marketingconceptsintl.com or send an email to info@marketingconceptsintl.com
This release may include projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable; it can give no assurances that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.
Contact:
Marketing Concepts International
info@marketingconceptsintl.com
SOURCE: Marketing Concepts International
mailto:info@marketingconceptsintl.com
For full details for MCCI click here.
Trade ETF's with Less Risk! Learn more.
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About TradingMarke | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarket.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.
© 2009 The Connors Group, Inc.
Monday, March 16, 2009
I.D SYSTEM REPORT FINANCIAL RESULT FOR FOURTH QUARTER AND FISCAL YEAR 2008 -- YEAR OVER YEAR REVENUES I NCREASE 58%
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I.D. Systems Reports Financial Results for Fourth Quarter and Fiscal Year 2008-Year Over Year Revenues Increase 58%
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updated 4:10 p.m. ET March 5, 2009
HACKENSACK, N.J., March 5, 2009 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless asset management solutions, today announced financial results for the quarter and year ended December 31, 2008.
For the three-month period ended December 31, 2008, revenues were $7.9 million, compared to $3.7 million for the three months ended December 31, 2007. Net loss for the fourth quarter of 2008 was $1,232,000, or ($0.11) per basic and diluted share, compared to net loss of $2.4 million, or ($0.22) per basic and diluted share, for the fourth quarter of 2007. Non-GAAP net loss for the fourth quarter of 2008 was $550,000, including $682,000 in stock-based compensation, or ($0.05) per basic and diluted share, compared to non-GAAP net loss of $1.6 million, including $853,000 in stock-based compensation, or ($0.14) per basic and diluted share, for the fourth quarter of 2007.
NOTE: the three - month of period ended dec 31 2008, the fourth quarter of 2007 .
Revenues for the fiscal year ended December 31, 2008 were $27.0 million, compared to $17.1 million for 2007. Net loss for 2008 was $4.2 million, or ($0.38) per basic and diluted share, compared to net loss of $7.3 million, or ($0.66) per basic and diluted share, for 2007. Non-GAAP net loss for 2008 was $1.3 million, or ($0.12) per basic and diluted share, compared to non-GAAP net loss of $4.1 million, or ($0.36) per basic and diluted share, for 2007.
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Non-GAAP results are calculated by adjusting GAAP net results for the impact of stock-based compensation, which was $2.9 million and $3.3 million for the fiscal years ended December 31, 2008 and 2007, respectively. A table entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" is included in this press release.
"Our revenues this year were driven primarily by our investment in our sales and marketing organization, as well as expansion of our product offerings," said Jeffrey Jagid, I.D. Systems' chairman and chief executive officer. "We continued to strengthen relationships with core customers, including the U.S. Postal Service, Wal-Mart, Walgreens and Ford, among others. We also added more than 20 prominent new customers and increased our penetration of key vertical markets, including government, consumer packaged goods, retail, and automotive. This success reflects expanded activity on many fronts, including direct sales and marketing initiatives in North America, coordinated efforts with channel partners and the establishment of our first customers in continental Europe."
"Our solutions for controlling, tracking and managing vehicles-such as material handling equipment, airport vehicles and rental cars-continue to offer significant economic benefits for our customers, which is important in this economic climate," continued Mr. Jagid. "We look forward to building on our accomplishments of 2008 and continuing to focus on broadening our customer base, diversifying our revenue sources, and maximizing shareholder value."
NOTE:the offer of significant are economics benefits for our costomer.
Gross margin for the three months ended December 31, 2008, was 48.4%, compared to 44.0% for 2007. For the year ended December 31, 2008, cost of revenues was $13.5 million, resulting in a gross profit margin of 50.2%, up from 47.7% for the year ended December 31, 2007.
For the three months ended December 31, 2008, selling, general and administrative (SG&A) expenses were flat at $4.3 million, including $532,000 in stock-based compensation, compared to $4.3 million, including $662,000 in stock-based compensation, for the same period in 2007.
SG&A expenses for fiscal year 2008 were $16.8 million, including $2.4 million in stock-based compensation, compared to $16.0 million, including $2.5 million in stock-based compensation, for 2007. The increase was attributable primarily to an expansion of staff in sales and customer service and increased insurance costs. As a percentage of revenues, SG&A expenses decreased to 62.0% in 2008 from 93.4% in 2007.
Research and development (R&D) expenditures for the three-month period ended December 31, 2008, were $792,000, including $135,000 in stock-based compensation, compared to $721,000, including $179,000 in stock-based compensation, for the three months ended December 31, 2007.
R&D expenditures for fiscal year 2008 were $2.9 million, including $498,000 in stock-based compensation, compared to $2.8 million, including $741,000 in stock-based compensation, for 2007. As a percentage of revenues, R&D expenditures decreased to 10.7% in 2008 from 16.7% in 2007.
Interest income for fiscal year 2008 was $2.2 million, compared to $3.2 million for 2007. The decrease was due to lower interest rates and a decrease in cash, cash equivalents and marketable securities. Interest income for the fourth quarter of 2008 was $373,000, compared to $894,000 for the same period a year ago. As of December 31, 2008, I.D. Systems had $56.0 million in cash, cash equivalents, marketable securities, auction rate securities and auction rate securities right ($5.14 per share outstanding as of December 31, 2008) and $30.9 million of working capital, compared to $65.0 million ($5.90 per share outstanding as of December 31, 2007) and $31.9 million, respectively, as of December 31, 2007.
In fiscal year 2008, approximately $4.4 million of working capital was used to repurchase issued and outstanding shares of I.D. Systems common stock, pursuant to a share repurchase program authorized by I.D. Systems' Board of Directors in May, 2007. The program authorizes the repurchase of shares to an aggregate value of up to $10,000,000 and to date we have repurchased shares having an aggregate value of $9,970,000. During 2008, I.D. Systems purchased approximately 592,000 shares in open market transactions under this program, at an average cost of $7.41 per share. The cumulative value of shares repurchased to date is approximately $9.98 million.
2008 Highlights
* I.D. Systems increased sales of its products and services to core
customers, including:
-- The United States Postal Service (USPS), which, as previously
announced, expanded its deployment of I.D. Systems' Vehicle
Management System (VMS) to a cumulative total of more than 110
USPS facilities nationwide, and which continued to fund
development of new system functions to broaden the system's role
in postal operations.
-- Wal-Mart Stores, Inc., which, as previously announced, expanded
its deployment of I.D. Systems' VMS to a cumulative total of 50
distribution facilities in the U.S.
-- 3M Company, Alcoa, FMC Technologies, Ford Motor Company, Nucor
Corporation, Golub Corporation, Target Corporation, and
Weyerhaeuser Company, among others, all of which expanded their
use of I.D. Systems' technology or extended support contracts
for existing VMS deployments.
* I.D. Systems deployed its wireless VMS technology for more than 20
new customers, including:
-- Xerox Corporation, a Fortune 200 company and the world's leading
document management enterprise with fiscal 2008 revenues of
$17.6 billion.
-- Colgate-Palmolive Company, a Fortune 200 global consumer
products company with dozens of internationally recognized
brands and fiscal 2008 revenues of $15.3 billion.
-- A U.S. division of Nestle S.A., the world's largest food and
beverage manufacturer with fiscal 2008 revenues of approximately
$104 billion.
-- The U.S. subsidiary of Teva Pharmaceutical Industries Ltd., a
top-20 global pharmaceutical company and the world's leading
generic pharmaceutical company with fiscal 2008 revenues of
$11.1 billion.
-- Three major European companies: two leading automotive
manufacturers and a tier-one automotive industry supplier
-- Other leading companies across a wide range of industries,
including:
- One of the world's largest distributors of technology products.
- One of the world's leading manufacturers and marketers of
paper and building products.
- Two of the world's leading heavy equipment manufacturers.
- One of the largest integrated steel companies in the U.S.
- One of the largest food distributors in the U.S.
- A leading U.S. wholesale club.
- A leading global manufacturer of lighting products.
* To broaden its market reach, I.D. Systems further developed key
strategic alliances, including:
-- Strengthening an existing marketing relationship with leading
forklift manufacturer NACCO Materials Handling Group, Inc.,
which distributes and supports I.D. Systems' products through
its Hyster(r) and Yale(r) brand industrial truck dealer networks.
-- Expanding relationships with other lift truck original equipment
manufacturers and their dealers.
-- Executing a strategic agreement with Zetes Industries, a leading
European automatic identification technology systems integrator.
* I.D. Systems also made progress in the continued development of new
markets and applications for its technology, including:
-- The acquisition of PowerKey, the industrial vehicle monitoring
division of International Electronics, Inc., and subsequent
product line expansion targeted at the entry-level segment of
the industrial vehicle management market.
-- Continued development of a wireless VMS with special security
capabilities for the U.S. Department of Defense, which was
deployed in 2008 at the Sierra Army Depot.
-- Continued development of an automated wireless rental fleet VMS,
which was deployed in 2008 on approximately 500 rental vehicles
for a major U.S.-based rental car company.
-- Launch of the AvRamp(tm) system, a VMS branded for airport
ground support equipment, which was funded in part by the
Transportation Security Administration and approved by the
Federal Aviation Administration.
-- The award of a U.S. Patent for a "Robust Wireless Communications
System Architecture," which concerns the "distributed
intelligence" of I.D. Systems' wireless technology.
Investor Conference Call
I.D. Systems will host a conference call for investors and analysts at 4:45 p.m. Eastern Standard Time on March 5, 2009. Jeffrey Jagid, I.D. Systems' chairman and CEO, will lead a discussion on the year's results and highlights. After opening remarks, there will be a question and answer period. The conference call will be broadcast live over the Internet via the Investors section of I.D. Systems' web site at www.id-systems.com. To listen to the live call, go to the website at least 10 minutes early to download and install any necessary audio software.
Non-GAAP Measures
To supplement its consolidated financial statements presented in accordance with GAAP, I.D. Systems provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net income/loss and non-GAAP net income/loss per basic and diluted share. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of I.D. Systems' current financial performance and provide further information for comparative information due to the adoption of the new accounting standard SFAS 123R. Specifically, I.D. Systems believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, I.D. Systems believes the non-GAAP measures that exclude stock-based compensation enhance the comparability of results against prior periods. Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the financial tables included in this press release.
About Vehicle Management Systems
Wireless Vehicle Management Systems for industrial trucks help improve workplace safety and security by restricting vehicle access to trained, authorized operators, providing electronic vehicle safety inspection checklists, and sensing vehicle impacts. The systems also help reduce fleet maintenance costs by automatically uploading vehicle data, reporting vehicle problems electronically, scheduling maintenance according to actual vehicle usage rather than by calendar or manual data entry, and helping determine the optimal economic time to replace equipment. In addition, wireless VMS technology helps improve productivity by establishing accountability for use of equipment, ensuring equipment is in the proper place at the right time, streamlining work flow, and providing management with unique metrics on-and controls over-fleet utilization.
About I.D. Systems(r)
Based in Hackensack, New Jersey, with a European business office in Dusseldorf, Germany, I.D. Systems is a leading provider of wireless solutions for managing and securing high-value enterprise assets. These assets include industrial vehicles, such as forklifts and airport ground support equipment, and rental vehicles. The Company's patented PowerFleet(tm) system, which utilizes radio frequency identification, or RFID, technology, addresses the needs of organizations to control track, monitor and analyze their assets. For more information about I.D. Systems, visit www.id-systems.com.
"Safe Harbor" statement:
This press release contains forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as prospects for additional customers and revenues. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. These forward-looking statements are subject to risk and uncertainties, including, but not limited to, future economic and business conditions, the loss of any of the Company's key customers or reduction in the purchase of its products by any such customers, the failure of the market for the Company's products to continue to develop, the inability to protect the Company's intellectual property, the inability to manage the Company's growth, the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2007. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. The Company assumes no obligation to update the information contained in this press release.
I.D. Systems, Inc.
Statements of Operations
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
Revenue:
Products $ 2,556,000 $ 5,988,000 $11,037,000 $20,072,000
Services 1,165,000 1,933,000 6,046,000 6,974,000
----------- ----------- ----------- -----------
3,721,000 7,921,000 17,083,000 27,046,000
Cost of revenue:
Cost of products 1,577,000 3,160,000 5,859,000 9,996,000
Cost of services 506,000 925,000 3,070,000 3,470,000
----------- ----------- ----------- -----------
2,083,000 4,085,000 8,929,000 13,466,000
Gross profit 1,638,000 3,836,000 8,154,000 13,580,000
Selling, general
and administrative
expenses 4,255,000 4,311,000 15,963,000 16,760,000
Research and
development
expenses 721,000 792,000 2,849,000 2,883,000
----------- ----------- ----------- -----------
Loss from
operations (3,338,000) (1,267,000) (10,658,000) (6,063,000)
Interest income 894,000 373,000 3,238,000 2,226,000
Interest expense (1,000) -- (10,000) --
----------- ----------- ----------- -----------
Other income (loss) -- (338,000) 89,000 (338,000)
----------- ----------- ----------- -----------
Net loss $(2,445,000) $(1,232,000) $(7,341,000) $(4,175,000)
=========== =========== =========== ===========
Net loss per
share - basic
and diluted $ (0.22) $ (0.11) $ (0.66) $ (0.38)
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
basic and diluted 11,027,000 10,896,000 11,205,000 10,887,000
=========== =========== =========== ===========
I.D. Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2008 2007 2008
Net loss
attributable
to common
stockholders $(2,445,000) $(1,232,000) $(7,341,000) $(4,175,000)
Stock-based
compensation $ 853,000 $ 682,000 $ 3,288,000 $ 2,898,000
Non-GAAP
net loss $(1,592,000) $ (550,000) $(4,053,000) $(1,277,000)
Non-GAAP net
loss per
share - basic and
diluted $ (0.14) $ (0.05) $ (0.36) $ (0.12)
I.D. Systems, Inc.
Balance Sheets
(Unaudited)
As of December 31,
2007 2008
ASSETS
Current assets:
Cash and cash equivalents $ 5,103,000 $12,558,000
Restricted cash -- 230,000
Marketable securities - short term 21,385,000 8,550,000
Accounts receivable, net of allowance
for doubtful accounts of $239,000
in 2007 and 2008 2,875,000 8,245,000
Unbilled receivables 580,000 168,000
Inventory, net 4,420,000 3,273,000
Interest receivable 142,000 217,000
Prepaid expenses and other current
assets 291,000 261,000
----------- -----------
Total current assets 34,796,000 33,502,000
Marketable securities -long term 38,515,000 34,911,000
Goodwill -- 200,000
Other intangible assets -- 178,000
Fixed assets, net 1,398,000 1,050,000
Other assets 87,000 107,000
----------- -----------
$74,796,000 $69,948,000
=========== ===========
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses $ 2,594,000 $ 2,175,000
Current portion of long term debt 19,000 --
Deferred revenue 291,000 424,000
----------- -----------
Total current liabilities 2,904,000 2,599,000
Deferred revenue 167,000 231,000
Deferred rent 55,000 33,000
----------- -----------
3,126,000 2,863,000
STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000
shares, $0.01 par value; none issued -- --
Common stock; authorized 50,000,000
shares, $.01 par value; 11,561,000 and
12,082,000 shares issued at December
31, 2007 and 2008, respectively, shares
outstanding, 11,015,000 and 10,893,000
at December 31, 2007 and 2008,
respectively 115,000 120,000
Additional paid-in capital 97,076,000 101,437,000
Accumulated deficit (19,492,000) (23,667,000)
Accumulated other comprehensive income 11,000 46,000
----------- -----------
77,710,000 77,936,000
Treasury stock; 546,000 shares and
1,189,000 shares at cost at December 31,
2007 and 2008, respectively (6,040,000) (10,851,000)
----------- -----------
Total stockholders' equity 71,670,000 67,085,000
----------- -----------
Total liabilities and stockholders'
equity $74,796,000 $69,948,000
=========== ===========
I.D. Systems, Inc.
Statements of Cash Flows
(Unaudited)
Year Ended December 31,
-------------------------------------
2006 2007 2008
Cash flows from operating
activities:
Net loss $(1,616,000) $(7,341,000) $(4,175,000)
Adjustments to reconcile net
loss to cash (used in)
provided by operating
activities:
Inventory reserve 100,000 517,000 126,000
Accrued interest income (153,000) 20,000 (75,000)
Stock based compensation 2,975,000 3,288,000 2,989,000
Depreciation and amortization 468,000 544,000 540,000
Deferred rent expense (22,000) (22,000) (22,000)
Deferred revenue 109,000 104,000 197,000
Provision for uncollectible
accounts 211,000 -- --
Deferred contract costs 20,000 33,000 --
Change in fair value in
marketable securities -- -- 338,000
Changes in:
Restricted cash -- -- (230,000)
Accounts receivable 756,000 2,226,000 (5,370,000)
Unbilled receivables 251,000 462,000 412,000
Inventory (3,578,000) 1,493,000 1,212,000
Prepaid expenses and other
assets (130,000) (20,000) 10,000
Investment in sales type
leases 467,000 -- --
Accounts payable and
accrued expenses (931,000) (700,000) (843,000)
----------- ----------- -----------
Net cash (used in)
provided by operating
activities (1,073,000) 604,000 (4,891,000)
=========== =========== ===========
Cash flows from investing
activities:
Purchase of fixed assets (703,000) (548,000) (188,000)
Business acquisition -- -- (573,000)
Purchase of investments (68,481,000) (15,691,000) (28,513,000)
Maturities of investments 13,214,000 16,523,000 44,649,000
----------- ----------- -----------
Net cash (used in)
provided by investing
activities (55,970,000) 284,000 15,375,000
=========== =========== ===========
Cash flows from financing
activities:
Repayment of term loan (209,000) (221,000) (19,000)
Proceeds from exercise of stock
options 786,000 367,000 1,377,000
Net proceeds from public
offering 63,961,000 -- --
Collection of officer loan 11,000 8,000 --
Purchase of treasury shares -- (5,583,000) (4,387,000)
----------- ----------- -----------
Net cash provided by
(used in) financing
activities 64,549,000 (5,429,000) (3,029,000)
=========== =========== ===========
Net increase (decrease) in
cash and cash equivalents 7,506,000 (4,541,000) 7,455,000
Cash and cash equivalents -
beginning of period 2,138,000 9,644,000 5,103,000
Cash and cash equivalents -
end of period $ 9,644,000 $ 5,103,000 $12,558,000
=====================================
Supplemental disclosure of
cash flow information:
Cash paid for:
Interest $ 29,000 $ 10,000 $ --
=====================================
Non- Cash Financing Activity:
Shares withheld pursuant to
stock issuance $ -- $ 344,000 $ 424,000
=====================================
CONTACT: I.D. Systems, Inc.
For Financial Press
Ned Mavrommatis, Chief Financial Officer
ned@id-systems.com
For Trade Press
Greg Smith, Vice President Marketing
gsmith@id-systems.com
201-996-9000
Fax: 201-996-9144
GlobeNewswire, Inc.2009
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I.D. Systems Reports Financial Results for Fourth Quarter and Fiscal Year 2008-Year Over Year Revenues Increase 58%
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updated 4:10 p.m. ET March 5, 2009
HACKENSACK, N.J., March 5, 2009 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless asset management solutions, today announced financial results for the quarter and year ended December 31, 2008.
For the three-month period ended December 31, 2008, revenues were $7.9 million, compared to $3.7 million for the three months ended December 31, 2007. Net loss for the fourth quarter of 2008 was $1,232,000, or ($0.11) per basic and diluted share, compared to net loss of $2.4 million, or ($0.22) per basic and diluted share, for the fourth quarter of 2007. Non-GAAP net loss for the fourth quarter of 2008 was $550,000, including $682,000 in stock-based compensation, or ($0.05) per basic and diluted share, compared to non-GAAP net loss of $1.6 million, including $853,000 in stock-based compensation, or ($0.14) per basic and diluted share, for the fourth quarter of 2007.
NOTE: the three - month of period ended dec 31 2008, the fourth quarter of 2007 .
Revenues for the fiscal year ended December 31, 2008 were $27.0 million, compared to $17.1 million for 2007. Net loss for 2008 was $4.2 million, or ($0.38) per basic and diluted share, compared to net loss of $7.3 million, or ($0.66) per basic and diluted share, for 2007. Non-GAAP net loss for 2008 was $1.3 million, or ($0.12) per basic and diluted share, compared to non-GAAP net loss of $4.1 million, or ($0.36) per basic and diluted share, for 2007.
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Non-GAAP results are calculated by adjusting GAAP net results for the impact of stock-based compensation, which was $2.9 million and $3.3 million for the fiscal years ended December 31, 2008 and 2007, respectively. A table entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" is included in this press release.
"Our revenues this year were driven primarily by our investment in our sales and marketing organization, as well as expansion of our product offerings," said Jeffrey Jagid, I.D. Systems' chairman and chief executive officer. "We continued to strengthen relationships with core customers, including the U.S. Postal Service, Wal-Mart, Walgreens and Ford, among others. We also added more than 20 prominent new customers and increased our penetration of key vertical markets, including government, consumer packaged goods, retail, and automotive. This success reflects expanded activity on many fronts, including direct sales and marketing initiatives in North America, coordinated efforts with channel partners and the establishment of our first customers in continental Europe."
"Our solutions for controlling, tracking and managing vehicles-such as material handling equipment, airport vehicles and rental cars-continue to offer significant economic benefits for our customers, which is important in this economic climate," continued Mr. Jagid. "We look forward to building on our accomplishments of 2008 and continuing to focus on broadening our customer base, diversifying our revenue sources, and maximizing shareholder value."
NOTE:the offer of significant are economics benefits for our costomer.
Gross margin for the three months ended December 31, 2008, was 48.4%, compared to 44.0% for 2007. For the year ended December 31, 2008, cost of revenues was $13.5 million, resulting in a gross profit margin of 50.2%, up from 47.7% for the year ended December 31, 2007.
For the three months ended December 31, 2008, selling, general and administrative (SG&A) expenses were flat at $4.3 million, including $532,000 in stock-based compensation, compared to $4.3 million, including $662,000 in stock-based compensation, for the same period in 2007.
SG&A expenses for fiscal year 2008 were $16.8 million, including $2.4 million in stock-based compensation, compared to $16.0 million, including $2.5 million in stock-based compensation, for 2007. The increase was attributable primarily to an expansion of staff in sales and customer service and increased insurance costs. As a percentage of revenues, SG&A expenses decreased to 62.0% in 2008 from 93.4% in 2007.
Research and development (R&D) expenditures for the three-month period ended December 31, 2008, were $792,000, including $135,000 in stock-based compensation, compared to $721,000, including $179,000 in stock-based compensation, for the three months ended December 31, 2007.
R&D expenditures for fiscal year 2008 were $2.9 million, including $498,000 in stock-based compensation, compared to $2.8 million, including $741,000 in stock-based compensation, for 2007. As a percentage of revenues, R&D expenditures decreased to 10.7% in 2008 from 16.7% in 2007.
Interest income for fiscal year 2008 was $2.2 million, compared to $3.2 million for 2007. The decrease was due to lower interest rates and a decrease in cash, cash equivalents and marketable securities. Interest income for the fourth quarter of 2008 was $373,000, compared to $894,000 for the same period a year ago. As of December 31, 2008, I.D. Systems had $56.0 million in cash, cash equivalents, marketable securities, auction rate securities and auction rate securities right ($5.14 per share outstanding as of December 31, 2008) and $30.9 million of working capital, compared to $65.0 million ($5.90 per share outstanding as of December 31, 2007) and $31.9 million, respectively, as of December 31, 2007.
In fiscal year 2008, approximately $4.4 million of working capital was used to repurchase issued and outstanding shares of I.D. Systems common stock, pursuant to a share repurchase program authorized by I.D. Systems' Board of Directors in May, 2007. The program authorizes the repurchase of shares to an aggregate value of up to $10,000,000 and to date we have repurchased shares having an aggregate value of $9,970,000. During 2008, I.D. Systems purchased approximately 592,000 shares in open market transactions under this program, at an average cost of $7.41 per share. The cumulative value of shares repurchased to date is approximately $9.98 million.
2008 Highlights
* I.D. Systems increased sales of its products and services to core
customers, including:
-- The United States Postal Service (USPS), which, as previously
announced, expanded its deployment of I.D. Systems' Vehicle
Management System (VMS) to a cumulative total of more than 110
USPS facilities nationwide, and which continued to fund
development of new system functions to broaden the system's role
in postal operations.
-- Wal-Mart Stores, Inc., which, as previously announced, expanded
its deployment of I.D. Systems' VMS to a cumulative total of 50
distribution facilities in the U.S.
-- 3M Company, Alcoa, FMC Technologies, Ford Motor Company, Nucor
Corporation, Golub Corporation, Target Corporation, and
Weyerhaeuser Company, among others, all of which expanded their
use of I.D. Systems' technology or extended support contracts
for existing VMS deployments.
* I.D. Systems deployed its wireless VMS technology for more than 20
new customers, including:
-- Xerox Corporation, a Fortune 200 company and the world's leading
document management enterprise with fiscal 2008 revenues of
$17.6 billion.
-- Colgate-Palmolive Company, a Fortune 200 global consumer
products company with dozens of internationally recognized
brands and fiscal 2008 revenues of $15.3 billion.
-- A U.S. division of Nestle S.A., the world's largest food and
beverage manufacturer with fiscal 2008 revenues of approximately
$104 billion.
-- The U.S. subsidiary of Teva Pharmaceutical Industries Ltd., a
top-20 global pharmaceutical company and the world's leading
generic pharmaceutical company with fiscal 2008 revenues of
$11.1 billion.
-- Three major European companies: two leading automotive
manufacturers and a tier-one automotive industry supplier
-- Other leading companies across a wide range of industries,
including:
- One of the world's largest distributors of technology products.
- One of the world's leading manufacturers and marketers of
paper and building products.
- Two of the world's leading heavy equipment manufacturers.
- One of the largest integrated steel companies in the U.S.
- One of the largest food distributors in the U.S.
- A leading U.S. wholesale club.
- A leading global manufacturer of lighting products.
* To broaden its market reach, I.D. Systems further developed key
strategic alliances, including:
-- Strengthening an existing marketing relationship with leading
forklift manufacturer NACCO Materials Handling Group, Inc.,
which distributes and supports I.D. Systems' products through
its Hyster(r) and Yale(r) brand industrial truck dealer networks.
-- Expanding relationships with other lift truck original equipment
manufacturers and their dealers.
-- Executing a strategic agreement with Zetes Industries, a leading
European automatic identification technology systems integrator.
* I.D. Systems also made progress in the continued development of new
markets and applications for its technology, including:
-- The acquisition of PowerKey, the industrial vehicle monitoring
division of International Electronics, Inc., and subsequent
product line expansion targeted at the entry-level segment of
the industrial vehicle management market.
-- Continued development of a wireless VMS with special security
capabilities for the U.S. Department of Defense, which was
deployed in 2008 at the Sierra Army Depot.
-- Continued development of an automated wireless rental fleet VMS,
which was deployed in 2008 on approximately 500 rental vehicles
for a major U.S.-based rental car company.
-- Launch of the AvRamp(tm) system, a VMS branded for airport
ground support equipment, which was funded in part by the
Transportation Security Administration and approved by the
Federal Aviation Administration.
-- The award of a U.S. Patent for a "Robust Wireless Communications
System Architecture," which concerns the "distributed
intelligence" of I.D. Systems' wireless technology.
Investor Conference Call
I.D. Systems will host a conference call for investors and analysts at 4:45 p.m. Eastern Standard Time on March 5, 2009. Jeffrey Jagid, I.D. Systems' chairman and CEO, will lead a discussion on the year's results and highlights. After opening remarks, there will be a question and answer period. The conference call will be broadcast live over the Internet via the Investors section of I.D. Systems' web site at www.id-systems.com. To listen to the live call, go to the website at least 10 minutes early to download and install any necessary audio software.
Non-GAAP Measures
To supplement its consolidated financial statements presented in accordance with GAAP, I.D. Systems provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net income/loss and non-GAAP net income/loss per basic and diluted share. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of I.D. Systems' current financial performance and provide further information for comparative information due to the adoption of the new accounting standard SFAS 123R. Specifically, I.D. Systems believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, I.D. Systems believes the non-GAAP measures that exclude stock-based compensation enhance the comparability of results against prior periods. Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the financial tables included in this press release.
About Vehicle Management Systems
Wireless Vehicle Management Systems for industrial trucks help improve workplace safety and security by restricting vehicle access to trained, authorized operators, providing electronic vehicle safety inspection checklists, and sensing vehicle impacts. The systems also help reduce fleet maintenance costs by automatically uploading vehicle data, reporting vehicle problems electronically, scheduling maintenance according to actual vehicle usage rather than by calendar or manual data entry, and helping determine the optimal economic time to replace equipment. In addition, wireless VMS technology helps improve productivity by establishing accountability for use of equipment, ensuring equipment is in the proper place at the right time, streamlining work flow, and providing management with unique metrics on-and controls over-fleet utilization.
About I.D. Systems(r)
Based in Hackensack, New Jersey, with a European business office in Dusseldorf, Germany, I.D. Systems is a leading provider of wireless solutions for managing and securing high-value enterprise assets. These assets include industrial vehicles, such as forklifts and airport ground support equipment, and rental vehicles. The Company's patented PowerFleet(tm) system, which utilizes radio frequency identification, or RFID, technology, addresses the needs of organizations to control track, monitor and analyze their assets. For more information about I.D. Systems, visit www.id-systems.com.
"Safe Harbor" statement:
This press release contains forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as prospects for additional customers and revenues. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. These forward-looking statements are subject to risk and uncertainties, including, but not limited to, future economic and business conditions, the loss of any of the Company's key customers or reduction in the purchase of its products by any such customers, the failure of the market for the Company's products to continue to develop, the inability to protect the Company's intellectual property, the inability to manage the Company's growth, the effects of competition from a wide variety of local, regional, national and other providers of wireless solutions and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2007. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. The Company assumes no obligation to update the information contained in this press release.
I.D. Systems, Inc.
Statements of Operations
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
Revenue:
Products $ 2,556,000 $ 5,988,000 $11,037,000 $20,072,000
Services 1,165,000 1,933,000 6,046,000 6,974,000
----------- ----------- ----------- -----------
3,721,000 7,921,000 17,083,000 27,046,000
Cost of revenue:
Cost of products 1,577,000 3,160,000 5,859,000 9,996,000
Cost of services 506,000 925,000 3,070,000 3,470,000
----------- ----------- ----------- -----------
2,083,000 4,085,000 8,929,000 13,466,000
Gross profit 1,638,000 3,836,000 8,154,000 13,580,000
Selling, general
and administrative
expenses 4,255,000 4,311,000 15,963,000 16,760,000
Research and
development
expenses 721,000 792,000 2,849,000 2,883,000
----------- ----------- ----------- -----------
Loss from
operations (3,338,000) (1,267,000) (10,658,000) (6,063,000)
Interest income 894,000 373,000 3,238,000 2,226,000
Interest expense (1,000) -- (10,000) --
----------- ----------- ----------- -----------
Other income (loss) -- (338,000) 89,000 (338,000)
----------- ----------- ----------- -----------
Net loss $(2,445,000) $(1,232,000) $(7,341,000) $(4,175,000)
=========== =========== =========== ===========
Net loss per
share - basic
and diluted $ (0.22) $ (0.11) $ (0.66) $ (0.38)
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
basic and diluted 11,027,000 10,896,000 11,205,000 10,887,000
=========== =========== =========== ===========
I.D. Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2008 2007 2008
Net loss
attributable
to common
stockholders $(2,445,000) $(1,232,000) $(7,341,000) $(4,175,000)
Stock-based
compensation $ 853,000 $ 682,000 $ 3,288,000 $ 2,898,000
Non-GAAP
net loss $(1,592,000) $ (550,000) $(4,053,000) $(1,277,000)
Non-GAAP net
loss per
share - basic and
diluted $ (0.14) $ (0.05) $ (0.36) $ (0.12)
I.D. Systems, Inc.
Balance Sheets
(Unaudited)
As of December 31,
2007 2008
ASSETS
Current assets:
Cash and cash equivalents $ 5,103,000 $12,558,000
Restricted cash -- 230,000
Marketable securities - short term 21,385,000 8,550,000
Accounts receivable, net of allowance
for doubtful accounts of $239,000
in 2007 and 2008 2,875,000 8,245,000
Unbilled receivables 580,000 168,000
Inventory, net 4,420,000 3,273,000
Interest receivable 142,000 217,000
Prepaid expenses and other current
assets 291,000 261,000
----------- -----------
Total current assets 34,796,000 33,502,000
Marketable securities -long term 38,515,000 34,911,000
Goodwill -- 200,000
Other intangible assets -- 178,000
Fixed assets, net 1,398,000 1,050,000
Other assets 87,000 107,000
----------- -----------
$74,796,000 $69,948,000
=========== ===========
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses $ 2,594,000 $ 2,175,000
Current portion of long term debt 19,000 --
Deferred revenue 291,000 424,000
----------- -----------
Total current liabilities 2,904,000 2,599,000
Deferred revenue 167,000 231,000
Deferred rent 55,000 33,000
----------- -----------
3,126,000 2,863,000
STOCKHOLDERS' EQUITY
Preferred stock; authorized 5,000,000
shares, $0.01 par value; none issued -- --
Common stock; authorized 50,000,000
shares, $.01 par value; 11,561,000 and
12,082,000 shares issued at December
31, 2007 and 2008, respectively, shares
outstanding, 11,015,000 and 10,893,000
at December 31, 2007 and 2008,
respectively 115,000 120,000
Additional paid-in capital 97,076,000 101,437,000
Accumulated deficit (19,492,000) (23,667,000)
Accumulated other comprehensive income 11,000 46,000
----------- -----------
77,710,000 77,936,000
Treasury stock; 546,000 shares and
1,189,000 shares at cost at December 31,
2007 and 2008, respectively (6,040,000) (10,851,000)
----------- -----------
Total stockholders' equity 71,670,000 67,085,000
----------- -----------
Total liabilities and stockholders'
equity $74,796,000 $69,948,000
=========== ===========
I.D. Systems, Inc.
Statements of Cash Flows
(Unaudited)
Year Ended December 31,
-------------------------------------
2006 2007 2008
Cash flows from operating
activities:
Net loss $(1,616,000) $(7,341,000) $(4,175,000)
Adjustments to reconcile net
loss to cash (used in)
provided by operating
activities:
Inventory reserve 100,000 517,000 126,000
Accrued interest income (153,000) 20,000 (75,000)
Stock based compensation 2,975,000 3,288,000 2,989,000
Depreciation and amortization 468,000 544,000 540,000
Deferred rent expense (22,000) (22,000) (22,000)
Deferred revenue 109,000 104,000 197,000
Provision for uncollectible
accounts 211,000 -- --
Deferred contract costs 20,000 33,000 --
Change in fair value in
marketable securities -- -- 338,000
Changes in:
Restricted cash -- -- (230,000)
Accounts receivable 756,000 2,226,000 (5,370,000)
Unbilled receivables 251,000 462,000 412,000
Inventory (3,578,000) 1,493,000 1,212,000
Prepaid expenses and other
assets (130,000) (20,000) 10,000
Investment in sales type
leases 467,000 -- --
Accounts payable and
accrued expenses (931,000) (700,000) (843,000)
----------- ----------- -----------
Net cash (used in)
provided by operating
activities (1,073,000) 604,000 (4,891,000)
=========== =========== ===========
Cash flows from investing
activities:
Purchase of fixed assets (703,000) (548,000) (188,000)
Business acquisition -- -- (573,000)
Purchase of investments (68,481,000) (15,691,000) (28,513,000)
Maturities of investments 13,214,000 16,523,000 44,649,000
----------- ----------- -----------
Net cash (used in)
provided by investing
activities (55,970,000) 284,000 15,375,000
=========== =========== ===========
Cash flows from financing
activities:
Repayment of term loan (209,000) (221,000) (19,000)
Proceeds from exercise of stock
options 786,000 367,000 1,377,000
Net proceeds from public
offering 63,961,000 -- --
Collection of officer loan 11,000 8,000 --
Purchase of treasury shares -- (5,583,000) (4,387,000)
----------- ----------- -----------
Net cash provided by
(used in) financing
activities 64,549,000 (5,429,000) (3,029,000)
=========== =========== ===========
Net increase (decrease) in
cash and cash equivalents 7,506,000 (4,541,000) 7,455,000
Cash and cash equivalents -
beginning of period 2,138,000 9,644,000 5,103,000
Cash and cash equivalents -
end of period $ 9,644,000 $ 5,103,000 $12,558,000
=====================================
Supplemental disclosure of
cash flow information:
Cash paid for:
Interest $ 29,000 $ 10,000 $ --
=====================================
Non- Cash Financing Activity:
Shares withheld pursuant to
stock issuance $ -- $ 344,000 $ 424,000
=====================================
CONTACT: I.D. Systems, Inc.
For Financial Press
Ned Mavrommatis, Chief Financial Officer
ned@id-systems.com
For Trade Press
Greg Smith, Vice President Marketing
gsmith@id-systems.com
201-996-9000
Fax: 201-996-9144
GlobeNewswire, Inc.2009
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Saturday, March 14, 2009
THIS WEEK'S 5 SMARTEST STOCK MOVES
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This Week's 5 Smartest Stock Moves
By Rick Aristotle Munarriz
February 27, 2009 | Comments (0)
Recs
4
If you're feeling down this week, take my hand as we go over some of the more uplifting headlines of the week. Yes, it wasn't all layoffs, missed earnings, and guidance knockdowns.
1. Heart-to-heart at Medtronic
You're stealing hearts, Medtronic (NYSE: MDT). The medical device giant announced not one -- but two -- acquisitions on Monday. It will acquire CoreValve and Ventor Technologies, a pair of companies that make systems for heart valve replacement procedures.
If you have the means, now is a great time to be a buyer. Stock prices are low on public companies. A chilly IPO market will keep promising companies from raising capital by going public.
As long as the deals make sense -- and clearly it makes sense for Medtronic to broaden its product offerings in the fragmented medical device industry -- buyouts are worth applauding.
2. Earning the exclamation point
They're doing more than just moving the deck chairs on the S.S. Yahoo!. New CEO Carol Bartz announced a radical shakeup at the company last night, installing fresh faces among key executives at Yahoo! (Nasdaq: YHOO).
Yahoo! isn't a broken company. It's just moldy. It needs fresh eyes, brains, and ideas. I can't vouch for any of the new visionaries and thinkers at the company. I do know that playing it safe in the past only invited stagnancy into the VIP room.
Yahoo! will never be Google (Nasdaq: GOOG), but it certainly isn't valued as such. The Internet is a big enough pie to carve between several search engines and online advertising platforms. Now that investors know that Bartz isn't simply going to phone it in as CEO, it's time to begin dusting off those dreams and expectations.
3. Orange you glad
Tropicana is ditching the orange juice packaging it introduced just a few weeks ago, and coming back with its original carton graphics.
PepsiCo's (NYSE: PEP) citrus giant is proving that it can still be nimble. The new packaging was bland, baby. When I first saw it, I thought it was a generic supermarket brand. I didn't realize I was so attached to a silly orange with a straw, until I was left woefully unimpressed with the "100% Orange" logo accompanied by an ordinary glass of OJ.
NOTE: the new packging was blind , baby.
Was this a clever marketing ploy to trick penny-pinching orange lovers into thinking they were trading down to a generic brand? Did PepsiCo know the move would create an uproar, having the old packaging ready for rediscovered appreciation? Will the cartons being phased out over the next few weeks become collectibles?
4. Iron supplements
Marvel (NYSE: MVL) better hope it can keep Robert Downey, Jr. in its magnetic grip. Downey's Iron Man was huge on DVD for the superhero studio this past quarter, helping the company blow past Wall Street expectations for the sixth consecutive time.
With so many media and entertainment companies stumbling last year, it's hard to scoff at Marvel's results for all of 2008. Revenue soared 39% higher. Earnings climbed by 54%. DC Comics parent Time Warner (NYSE: TWX) certainly didn't keep pace.
2008 will be a hard act to follow for Marvel in 2009, but the company clearly is leaving 2008 with far more confidence in its comic book character-milking ability than when it started.
5. Keep the change
Microsoft (Nasdaq: MSFT) took some heat this past weekend, when it overpaid the severance for a few dozen of the 5,000 employees it recently laid off and asked for it back.
Well, Microsoft rightly backed off this week. It will let the affected ex-employees keep the extra compensation.
It's the right thing to do, from a public relations standpoint. Even if Microsoft is legally entitled to recover the funds -- and that's iffy since the recipients supposedly didn't know they were being overpaid -- it's just wrong to be seen as both the Grim Reaper and a collections agency.
The company is called Microsoft, not Microhard.
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PepsiCo is a Motley Fool Income Investor recommendation. Microsoft is a Motley Fool Inside Value selection. Google is a Motley Fool Rule Breakers pick. Marvel Entertainment is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days.
Longtime Fool contributor Rick Munarriz is an optimist at every turn. He's the inspiration for The Killers' "Mr. Brightside" song. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.
NOTE: the fool has a disclosure policy. long time fool hascontributor risk munnariz is an optimist at every turn.
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This Week's 5 Smartest Stock Moves
By Rick Aristotle Munarriz
February 27, 2009 | Comments (0)
Recs
4
If you're feeling down this week, take my hand as we go over some of the more uplifting headlines of the week. Yes, it wasn't all layoffs, missed earnings, and guidance knockdowns.
1. Heart-to-heart at Medtronic
You're stealing hearts, Medtronic (NYSE: MDT). The medical device giant announced not one -- but two -- acquisitions on Monday. It will acquire CoreValve and Ventor Technologies, a pair of companies that make systems for heart valve replacement procedures.
If you have the means, now is a great time to be a buyer. Stock prices are low on public companies. A chilly IPO market will keep promising companies from raising capital by going public.
As long as the deals make sense -- and clearly it makes sense for Medtronic to broaden its product offerings in the fragmented medical device industry -- buyouts are worth applauding.
2. Earning the exclamation point
They're doing more than just moving the deck chairs on the S.S. Yahoo!. New CEO Carol Bartz announced a radical shakeup at the company last night, installing fresh faces among key executives at Yahoo! (Nasdaq: YHOO).
Yahoo! isn't a broken company. It's just moldy. It needs fresh eyes, brains, and ideas. I can't vouch for any of the new visionaries and thinkers at the company. I do know that playing it safe in the past only invited stagnancy into the VIP room.
Yahoo! will never be Google (Nasdaq: GOOG), but it certainly isn't valued as such. The Internet is a big enough pie to carve between several search engines and online advertising platforms. Now that investors know that Bartz isn't simply going to phone it in as CEO, it's time to begin dusting off those dreams and expectations.
3. Orange you glad
Tropicana is ditching the orange juice packaging it introduced just a few weeks ago, and coming back with its original carton graphics.
PepsiCo's (NYSE: PEP) citrus giant is proving that it can still be nimble. The new packaging was bland, baby. When I first saw it, I thought it was a generic supermarket brand. I didn't realize I was so attached to a silly orange with a straw, until I was left woefully unimpressed with the "100% Orange" logo accompanied by an ordinary glass of OJ.
NOTE: the new packging was blind , baby.
Was this a clever marketing ploy to trick penny-pinching orange lovers into thinking they were trading down to a generic brand? Did PepsiCo know the move would create an uproar, having the old packaging ready for rediscovered appreciation? Will the cartons being phased out over the next few weeks become collectibles?
4. Iron supplements
Marvel (NYSE: MVL) better hope it can keep Robert Downey, Jr. in its magnetic grip. Downey's Iron Man was huge on DVD for the superhero studio this past quarter, helping the company blow past Wall Street expectations for the sixth consecutive time.
With so many media and entertainment companies stumbling last year, it's hard to scoff at Marvel's results for all of 2008. Revenue soared 39% higher. Earnings climbed by 54%. DC Comics parent Time Warner (NYSE: TWX) certainly didn't keep pace.
2008 will be a hard act to follow for Marvel in 2009, but the company clearly is leaving 2008 with far more confidence in its comic book character-milking ability than when it started.
5. Keep the change
Microsoft (Nasdaq: MSFT) took some heat this past weekend, when it overpaid the severance for a few dozen of the 5,000 employees it recently laid off and asked for it back.
Well, Microsoft rightly backed off this week. It will let the affected ex-employees keep the extra compensation.
It's the right thing to do, from a public relations standpoint. Even if Microsoft is legally entitled to recover the funds -- and that's iffy since the recipients supposedly didn't know they were being overpaid -- it's just wrong to be seen as both the Grim Reaper and a collections agency.
The company is called Microsoft, not Microhard.
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PepsiCo is a Motley Fool Income Investor recommendation. Microsoft is a Motley Fool Inside Value selection. Google is a Motley Fool Rule Breakers pick. Marvel Entertainment is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days.
Longtime Fool contributor Rick Munarriz is an optimist at every turn. He's the inspiration for The Killers' "Mr. Brightside" song. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.
NOTE: the fool has a disclosure policy. long time fool hascontributor risk munnariz is an optimist at every turn.
Read/Post Comments (0) | Recommend This Article (4)
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Friday, March 13, 2009
REIT WINNER AND LOSER: PUBLIC STORAGE
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REIT Winners and Losers: Public Storage
02/27/09 - 04:51 PM EST
, PSA , DLR , SSS , EXR
William Hennelly
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Updated from 1:30 p.m. ET
* More on PSA
* Novellus Draws Calls; Public Storage Sees Puts
* REITs Still Rewarding
* Market Activity
*
Digital Realty Trust Inc.| DLR
UP
*
Extra Space Storage Incorporated| EXR
UP
*
Public Storage| PSA
UP
Public Storage(PSA Quote - Cramer on PSA - Stock Picks) shares rose 8% a day after it reported a rise in operating income in the fourth quarter.
Shares were up 5.8% to $55.48 as the Glendale-Calif.-based self-storage provider reported net operating income rose $11.8 million, led by a $6.5 million increase in same-store operations.
Digital Realty Trust(DLR Quote - Cramer on DLR - Stock Picks) shares rose 4% to $29.89 after the real estate investment trust reported a 43% rise in funds from operations. Digital had FFO of $68.9 million, or 76 cents per share, compared with $38.9 million, or 53 cents per share, a year earlier.
Extra Space Storage(EXR Quote - Cramer on EXR - Stock Picks) shares rose 1.5% to $6.27 a day after Citigroup initiated coverage on the Salt Like City company with a hold rating.
Sovran Self Storage(SSS Quote - Cramer on SSS - Stock Picks) shares lifted after the company, which operates outlets under the name Uncle Bob's Self Storage, filed a 10-K with the SEC citing its improved performance. Shares were up 0.8% to $21.18.
NOTE:the digitals has a FFO OF THE real estate investment trust reported a 43% rise in funds from operation.
The Buffalo, N.Y., company cited the Uncle Bob's truck move-in program, "under which, at present, 259 of our stores offer a free Uncle Bob's truck to assist our customers in moving into their spaces, and an increase in internet marketing and sales."
"In addition to increasing revenue, we have worked to improve services and amenities at our stores. While this has caused operating expenses to increase over the past five years, it has resulted in a superior storage experience for our customers.
"Our managers are better qualified and receive a significantly higher level of training than they did five years ago, customer access and security are greatly enhanced as a result of advances in technology, and property appearance and functionality have been improved."
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Winners & Losers
REIT Winners and Losers: Public Storage
02/27/09 - 04:51 PM EST
, PSA , DLR , SSS , EXR
William Hennelly
William Hennelly
Updated from 1:30 p.m. ET
* More on PSA
* Novellus Draws Calls; Public Storage Sees Puts
* REITs Still Rewarding
* Market Activity
*
Digital Realty Trust Inc.| DLR
UP
*
Extra Space Storage Incorporated| EXR
UP
*
Public Storage| PSA
UP
Public Storage(PSA Quote - Cramer on PSA - Stock Picks) shares rose 8% a day after it reported a rise in operating income in the fourth quarter.
Shares were up 5.8% to $55.48 as the Glendale-Calif.-based self-storage provider reported net operating income rose $11.8 million, led by a $6.5 million increase in same-store operations.
Digital Realty Trust(DLR Quote - Cramer on DLR - Stock Picks) shares rose 4% to $29.89 after the real estate investment trust reported a 43% rise in funds from operations. Digital had FFO of $68.9 million, or 76 cents per share, compared with $38.9 million, or 53 cents per share, a year earlier.
Extra Space Storage(EXR Quote - Cramer on EXR - Stock Picks) shares rose 1.5% to $6.27 a day after Citigroup initiated coverage on the Salt Like City company with a hold rating.
Sovran Self Storage(SSS Quote - Cramer on SSS - Stock Picks) shares lifted after the company, which operates outlets under the name Uncle Bob's Self Storage, filed a 10-K with the SEC citing its improved performance. Shares were up 0.8% to $21.18.
NOTE:the digitals has a FFO OF THE real estate investment trust reported a 43% rise in funds from operation.
The Buffalo, N.Y., company cited the Uncle Bob's truck move-in program, "under which, at present, 259 of our stores offer a free Uncle Bob's truck to assist our customers in moving into their spaces, and an increase in internet marketing and sales."
"In addition to increasing revenue, we have worked to improve services and amenities at our stores. While this has caused operating expenses to increase over the past five years, it has resulted in a superior storage experience for our customers.
"Our managers are better qualified and receive a significantly higher level of training than they did five years ago, customer access and security are greatly enhanced as a result of advances in technology, and property appearance and functionality have been improved."
P.S. TheStreet.com Mobile Now Available on Your BlackBerry®
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Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
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Stocks Cap Week And Month With Fat Losses
BY VINCENT MAO
Posted 2/27/2009
Stocks fell for the third-straight session Friday on news that the government would up its stake in Citigroup to as much as 36%. A bigger-than-expected downward revision to fourth-quarter GDP also hurt the market.
NOTE: the stock has a fell for the third-stragth session friday on news.
The S&P 500 dropped 2.4% and NYSE composite 2%. Both closed below their November lows.
Meanwhile, the Dow lost 1.7%. The Nasdaq fought to stay above water for most of the session, but it finished down 1%.
For the week, the NYSE composite, Dow, Nasdaq and S&P 500 tumbled 3.9%, 4.1%, 4.4% and 4.5% respectively. All indexes ended sharply lower for the month. The Nasdaq shed 6.7%, while the other indexes ended with losses of 11% and worse.
NOTE:ALL indexes ended sharply lower for the month.
Volume finished higher across the board, especially on the NYSE.
Citigroup (C) plunged 39% in monster trade as the Treasury said it would convert up to $25 billion in preferred shares to common stock, thus greatly diluting existing shareholder equity.
Other banks suffered.
Huntington Bancshares (HBAN) dived 25%, and Bank of America (BAC) swooned 26%. Wells Fargo (WFC) dropped 16%.
Medical stocks, which made up nearly a quarter of this week's IBD 100, were also hit hard.
Athenahealth (ATHN) gapped down, sliced its 200-day moving average and tumbled 25%. The downturn came despite a big jump in quarterly profit. Athenahealth provides Web-based business services for doctors, including billing and records-keeping.
Gentiva Health Services (GTIV) dived 18% in nearly six times average trade. The sell-off pushed the home health care provider's Accumulation/Distribution Rating to E.
On the upside, Hansen Natural (HANS) popped 7% in heavy trading despite posting a surprising loss. But the stock closed below its 50-day line.
4:15 p.m. Update: Indexes End Volatile Session With Losses
BY JUAN CARLOS ARANCIBIA
The stock market ended a seesaw session with more losses, capping another bearish week.
The S&P 500 tumbled 2.4%, the NYSE composite 2%, the Dow 1.7% and the Nasdaq 1%.
Volume rose on the NYSE but fell slightly on the Nasdaq, according to early readings.
Financials struggled while insurers fell on analysts' comments.
3:15 p.m. Update: Stocks Turn Slightly Mixed In Late Trade
BY VINCENT MAO
Stocks improved to mixed territory in late trading Friday. But the major indexes were on track to close the week and month with losses.
The S&P 500 shed 1.3%, NYSE composite 1.1% and Dow 0.7%. The Nasdaq edged up a fraction.
Volume was tracking sharply higher on the NYSE and a tad higher on the Nasdaq.
Shanda Interactive Entertainment (SNDA) staged a huge reversal and climbed 3%. The stock was down over 12% following a Credit Suisse downgrade.
CA (CA) reversed earlier losses and gained 4%. That recouped the bulk of losses from the last two sessions. Late last month, the software maker easily beat views with a 19% rise in fiscal Q3 profit. But sales in the latest quarter fell 5%.
2:15 p.m. Update: Nasdaq Flirts With Positive Territory
BY VINCENT MAO
Rebound efforts waned, then strengthened in afternoon trading Friday.
The S&P 500 lost 0.8%, the NYSE composite 0.6% and the Dow 0.4%.
Dow component General Electric (GE) slashed its quarterly dividend to 10 cents a share from 31 cents. Shares slipped 2% in volatile trading. Another Dow stock, JPMorgan Chase (JPM), cut its dividend earlier this week.
Meanwhile, the Nasdaq rose 0.1% as it continued its fight to stay above water.
Turnover was again tracking sharply higher on the NYSE and slightly lower on the Nasdaq.
Amgen (AMGN) gapped down and dropped 3% to a four-month low. A lawsuit was reportedly filed against the biotech over the marketing of its Enbrel and Aranesp drugs.
Other biotechs lost ground. Vertex Pharmaceuticals (VRTX) shed 10%, Celgene (CELG) lost 8% and Gilead Sciences (GILD) fell 4%. On Thursday, President Obama called for access to cheaper generic drugs.
On the upside, LKQ Corp. (LKQX) quickly erased early losses and rallied 15% to a four-month high. On Thursday, the auto-parts recycler reported a wider-than-expected drop in Q4 earnings. But it guided current quarter profit in line to slightly above views.
Dollar Tree (DLTR) also reversed higher. It jumped 5% and regained its 200-day moving average. But resistance from the stock's 50-day line lies just ahead.
1:15 p.m. Update: Stocks Lower In Midday Trade; Nasdaq Goes Red
BY VINCENT MAO
Stocks were stuck in the red in midday trading Friday, but off the worst levels of the session.
The S&P 500 fell 1.1%, the NYSE composite 0.8% and the Dow 0.5%. Meanwhile, the Nasdaq slipped back into negative territory, down 0.3%. The tech-heavy index poked into positive territory a number of times today, but has been unable to hold above water.
Volume was tracking vastly higher on the NYSE due to the onslaught in the financials. Citigroup (C), which tumbled 35%, has already traded over a billion shares vs. an average daily volume of 265 million. Nasdaq volume eased.
MetLife (MET) and Hartford Financial Services (HIG) dived 20% and 14% respectively. Late Thursday, Standard & Poor's cut ratings on both firms, along with eight other insurers.
World Fuel Services (INT) jumped 7% in heavy trading on strong earnings. Late Thursday, the provider of aviation and marine fuel products smashed views with a 68% rise in Q4 profit. But sales slumped 30%. World Fuel's board doubled its quarterly dividend to 7.5 cents per share.
J. Crew (JCG) reversed early losses and rallied 6%. In efforts to cut costs, the trendy apparel maker will eliminate 95 jobs or about 10% of its work force. The company will also suspend matching employees' 401 k contributions and certain wages raises.
TransDigm (TDG) also reversed early losses and climbed 3% in fast trade. The engine maker turned higher after finding support at the confluence of its 50- and 200- day moving averages.
12:15 p.m. Update: Stocks Stay Lower In Mixed Volume
BY PATRICK CAIN
Stocks dropped again, and the indexes' attempted rally ended as recent lows were undercut.
The count for a potential follow-through day had been at Day 4 for all four major indexes until Friday's intraday decline.
The Dow fell 0.8%, the S&P 500 1.4%, the Nasdaq 0.4%. The NYSE composite sank 1.3%.
Volume was higher on the NYSE but slightly lower on the Nasdaq.
Athenahealth (ATHN), a provider of Web-based business services for doctors, gapped down and was off 21% in huge volume. The company reported after the close Thursday, beating both earnings and revenue estimates. The dive slashed the stock's 200-day moving average.
Novo Nordisk (NVO), an insulin maker, gapped down and was trading 5% lower. This week is likely to end as one of distribution for Novo. It would also be its highest-volume week since October 1984.
On the upside, credit card companies Visa (V) and MasterCard (MA) were higher in above-average trade. Visa was up 2% and nearing what could be the high of a three-weeks-tight pattern. MasterCard is also up 2%.
ITT Educational Services (ESI) was up 1% and finding support at its 50-day moving average. This also could be the third straight down week, though the closes in the weeks' upper ranges suggest accumulation. That's a nice way to start the left side of a possible base.
11:15 a.m. Update: Stocks Fight Back In Morning Trade
BY VINCENT MAO
Stocks battled back from heavy losses and turned mixed in late-morning trade Friday.
The NYSE composite shed 1.5%, up from -2.5%. The S&P 500 lost 1.3% and the Dow 1%.
The Nasdaq briefly turned positive, but fell back into the red, down 0.2%. Still, high-profile issues Google (GOOG), Apple (AAPL), Amazon.com (AMZN) and Research In Motion (RIMM) all sported gains.
Turnover was tracking heavier across the board, especially on the NYSE.
Health care issues, which tumbled Thursday on President Obama's plan to cut Medicare payments, continued to sicken. Almost Family (AFAM) dropped 8%, Amedisys (AMED) 4% and Psychiatric Solutions (PSYS) 3%.
Deckers Outdoors (DECK) gapped down and tumbled 18% to its lowest levels since July 2006. Late Thursday, the footwear maker delivered Q4 results above views, but gave a disappointing 2009 profit outlook.
On the upside, Thoratec (THOR) rose 3% on an upgrade. Piper Jaffray raised the medical device maker to buy from neutral, saying that the recent pullback represents a buying opportunity.
Syngenta (SYT) gained 3% in its fourth straight advance. The stock's Accumulation/Distribution Rating has improved to B+ from a worst possible E in October.
In economic news, the Chicago PMI unexpectedly improved to 34.2 in February from 33.3 in January. Readings under 50 signal contraction. Although that marked the fifth straight month of contraction, the figure was better than expected.
10:15 a.m. Update: Stocks Open Lower On Brisk Trade
BY VINCENT MAO
Stocks opened lower Friday following news of the government's deal with Citigroup and a worse-than-expected read on gross domestic product. But they have since pared some losses.
The NYSE composite and S&P 500 shed 2.2% and 2%, respectively. Both undercut their November lows. The Dow lost 1.7%, while the Nasdaq fell 0.7%.
Volume was tracking higher across the board.
Financials were sharply lower.
Citigroup (C) plunged 25% amid concerns that its new deal with the government will greatly dilute the bank's shares. Bank of America (BAC) fell 18% and Wells Fargo (WFC) shed 8%.
Meanwhile, Shanda Interactive Entertainment (SNDA) declined 8% after Credit Suisse downgraded the online gaming firm to underperform from neutral following Thursday night's earnings release.
AstraZeneca (AZN) fell 3% on news that the Food and Drug Administration is seeking more information on its Seroquel anxiety treatment.
On the bright side, Hansen Natural (HANS) rose 6% despite posting an unexpected loss late Thursday.
9:15 a.m. Update: Citigroup Deal Sinks Stock Futures
BY VINCENT MAO
Stock futures signaled a vastly lower open Friday as Citigroup announced a deal that cedes more control to the government.
Nasdaq futures tumbled 14 points vs. fair value, S&P 500 futures dropped 18 points and Dow futures dumped 123 points.
Citigroup (C) reached a deal in which the U.S. government will exchange up to $25 billion in emergency bailout money for an equity stake of up to 36% in the firm. The Treasury Department and some private investors will convert preferred shares into common shares. Once completed, current shareholders will see their ownership stakes in the struggling bank fall to about 26%. Citi shares plunged 42% in the pre-market.
Group mates Bank of America (BAC), JPMorgan Chase (JPM) and Wells Fargo (WFC) were also sharply lower in the pre-open.
Lloyds Banking Group (LYG) dived 23% in the pre-market after the British bank reported a 75% decline in annual profit. Its HBOS unit, which reported results separately, lost 7.5 billion pounds ($10.6 billion) in 2008 vs. a profit of 4.05 billion pounds in 2007.
Fannie Mae (FNM) late Thursday said it would need $15.2 billion in government aid after losing more than $25 billion in the fourth quarter. This morning the mortgage finance giant said it expects home prices to fall 7% to 12% this year. Shares lost 8% in the pre-open.
Elsewhere, a unit of drugmaker Cephalon (CEPH) offered to buy Australia's Arana Therapeutics for $207 million.
In economic news, gross domestic product fell 6.2% in the final quarter of 2008 vs. estimates for a 5.4% shortfall. It was the biggest decline since a 6.4% drop in the first quarter of 1982 and worse than a prior estimate of 3.8%.
The Chicago PMI regional factory gauge will be out at 9:45 a.m. EST. Economists see a small dip to 33.
Crude oil dropped $2.41 to $42.81 a barrel.
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E-mail | Print | License | Republish | Post | IBD news direct to your inbox with IBD® Alerts Plus
Stocks Cap Week And Month With Fat Losses
BY VINCENT MAO
Posted 2/27/2009
Stocks fell for the third-straight session Friday on news that the government would up its stake in Citigroup to as much as 36%. A bigger-than-expected downward revision to fourth-quarter GDP also hurt the market.
NOTE: the stock has a fell for the third-stragth session friday on news.
The S&P 500 dropped 2.4% and NYSE composite 2%. Both closed below their November lows.
Meanwhile, the Dow lost 1.7%. The Nasdaq fought to stay above water for most of the session, but it finished down 1%.
For the week, the NYSE composite, Dow, Nasdaq and S&P 500 tumbled 3.9%, 4.1%, 4.4% and 4.5% respectively. All indexes ended sharply lower for the month. The Nasdaq shed 6.7%, while the other indexes ended with losses of 11% and worse.
NOTE:ALL indexes ended sharply lower for the month.
Volume finished higher across the board, especially on the NYSE.
Citigroup (C) plunged 39% in monster trade as the Treasury said it would convert up to $25 billion in preferred shares to common stock, thus greatly diluting existing shareholder equity.
Other banks suffered.
Huntington Bancshares (HBAN) dived 25%, and Bank of America (BAC) swooned 26%. Wells Fargo (WFC) dropped 16%.
Medical stocks, which made up nearly a quarter of this week's IBD 100, were also hit hard.
Athenahealth (ATHN) gapped down, sliced its 200-day moving average and tumbled 25%. The downturn came despite a big jump in quarterly profit. Athenahealth provides Web-based business services for doctors, including billing and records-keeping.
Gentiva Health Services (GTIV) dived 18% in nearly six times average trade. The sell-off pushed the home health care provider's Accumulation/Distribution Rating to E.
On the upside, Hansen Natural (HANS) popped 7% in heavy trading despite posting a surprising loss. But the stock closed below its 50-day line.
4:15 p.m. Update: Indexes End Volatile Session With Losses
BY JUAN CARLOS ARANCIBIA
The stock market ended a seesaw session with more losses, capping another bearish week.
The S&P 500 tumbled 2.4%, the NYSE composite 2%, the Dow 1.7% and the Nasdaq 1%.
Volume rose on the NYSE but fell slightly on the Nasdaq, according to early readings.
Financials struggled while insurers fell on analysts' comments.
3:15 p.m. Update: Stocks Turn Slightly Mixed In Late Trade
BY VINCENT MAO
Stocks improved to mixed territory in late trading Friday. But the major indexes were on track to close the week and month with losses.
The S&P 500 shed 1.3%, NYSE composite 1.1% and Dow 0.7%. The Nasdaq edged up a fraction.
Volume was tracking sharply higher on the NYSE and a tad higher on the Nasdaq.
Shanda Interactive Entertainment (SNDA) staged a huge reversal and climbed 3%. The stock was down over 12% following a Credit Suisse downgrade.
CA (CA) reversed earlier losses and gained 4%. That recouped the bulk of losses from the last two sessions. Late last month, the software maker easily beat views with a 19% rise in fiscal Q3 profit. But sales in the latest quarter fell 5%.
2:15 p.m. Update: Nasdaq Flirts With Positive Territory
BY VINCENT MAO
Rebound efforts waned, then strengthened in afternoon trading Friday.
The S&P 500 lost 0.8%, the NYSE composite 0.6% and the Dow 0.4%.
Dow component General Electric (GE) slashed its quarterly dividend to 10 cents a share from 31 cents. Shares slipped 2% in volatile trading. Another Dow stock, JPMorgan Chase (JPM), cut its dividend earlier this week.
Meanwhile, the Nasdaq rose 0.1% as it continued its fight to stay above water.
Turnover was again tracking sharply higher on the NYSE and slightly lower on the Nasdaq.
Amgen (AMGN) gapped down and dropped 3% to a four-month low. A lawsuit was reportedly filed against the biotech over the marketing of its Enbrel and Aranesp drugs.
Other biotechs lost ground. Vertex Pharmaceuticals (VRTX) shed 10%, Celgene (CELG) lost 8% and Gilead Sciences (GILD) fell 4%. On Thursday, President Obama called for access to cheaper generic drugs.
On the upside, LKQ Corp. (LKQX) quickly erased early losses and rallied 15% to a four-month high. On Thursday, the auto-parts recycler reported a wider-than-expected drop in Q4 earnings. But it guided current quarter profit in line to slightly above views.
Dollar Tree (DLTR) also reversed higher. It jumped 5% and regained its 200-day moving average. But resistance from the stock's 50-day line lies just ahead.
1:15 p.m. Update: Stocks Lower In Midday Trade; Nasdaq Goes Red
BY VINCENT MAO
Stocks were stuck in the red in midday trading Friday, but off the worst levels of the session.
The S&P 500 fell 1.1%, the NYSE composite 0.8% and the Dow 0.5%. Meanwhile, the Nasdaq slipped back into negative territory, down 0.3%. The tech-heavy index poked into positive territory a number of times today, but has been unable to hold above water.
Volume was tracking vastly higher on the NYSE due to the onslaught in the financials. Citigroup (C), which tumbled 35%, has already traded over a billion shares vs. an average daily volume of 265 million. Nasdaq volume eased.
MetLife (MET) and Hartford Financial Services (HIG) dived 20% and 14% respectively. Late Thursday, Standard & Poor's cut ratings on both firms, along with eight other insurers.
World Fuel Services (INT) jumped 7% in heavy trading on strong earnings. Late Thursday, the provider of aviation and marine fuel products smashed views with a 68% rise in Q4 profit. But sales slumped 30%. World Fuel's board doubled its quarterly dividend to 7.5 cents per share.
J. Crew (JCG) reversed early losses and rallied 6%. In efforts to cut costs, the trendy apparel maker will eliminate 95 jobs or about 10% of its work force. The company will also suspend matching employees' 401 k contributions and certain wages raises.
TransDigm (TDG) also reversed early losses and climbed 3% in fast trade. The engine maker turned higher after finding support at the confluence of its 50- and 200- day moving averages.
12:15 p.m. Update: Stocks Stay Lower In Mixed Volume
BY PATRICK CAIN
Stocks dropped again, and the indexes' attempted rally ended as recent lows were undercut.
The count for a potential follow-through day had been at Day 4 for all four major indexes until Friday's intraday decline.
The Dow fell 0.8%, the S&P 500 1.4%, the Nasdaq 0.4%. The NYSE composite sank 1.3%.
Volume was higher on the NYSE but slightly lower on the Nasdaq.
Athenahealth (ATHN), a provider of Web-based business services for doctors, gapped down and was off 21% in huge volume. The company reported after the close Thursday, beating both earnings and revenue estimates. The dive slashed the stock's 200-day moving average.
Novo Nordisk (NVO), an insulin maker, gapped down and was trading 5% lower. This week is likely to end as one of distribution for Novo. It would also be its highest-volume week since October 1984.
On the upside, credit card companies Visa (V) and MasterCard (MA) were higher in above-average trade. Visa was up 2% and nearing what could be the high of a three-weeks-tight pattern. MasterCard is also up 2%.
ITT Educational Services (ESI) was up 1% and finding support at its 50-day moving average. This also could be the third straight down week, though the closes in the weeks' upper ranges suggest accumulation. That's a nice way to start the left side of a possible base.
11:15 a.m. Update: Stocks Fight Back In Morning Trade
BY VINCENT MAO
Stocks battled back from heavy losses and turned mixed in late-morning trade Friday.
The NYSE composite shed 1.5%, up from -2.5%. The S&P 500 lost 1.3% and the Dow 1%.
The Nasdaq briefly turned positive, but fell back into the red, down 0.2%. Still, high-profile issues Google (GOOG), Apple (AAPL), Amazon.com (AMZN) and Research In Motion (RIMM) all sported gains.
Turnover was tracking heavier across the board, especially on the NYSE.
Health care issues, which tumbled Thursday on President Obama's plan to cut Medicare payments, continued to sicken. Almost Family (AFAM) dropped 8%, Amedisys (AMED) 4% and Psychiatric Solutions (PSYS) 3%.
Deckers Outdoors (DECK) gapped down and tumbled 18% to its lowest levels since July 2006. Late Thursday, the footwear maker delivered Q4 results above views, but gave a disappointing 2009 profit outlook.
On the upside, Thoratec (THOR) rose 3% on an upgrade. Piper Jaffray raised the medical device maker to buy from neutral, saying that the recent pullback represents a buying opportunity.
Syngenta (SYT) gained 3% in its fourth straight advance. The stock's Accumulation/Distribution Rating has improved to B+ from a worst possible E in October.
In economic news, the Chicago PMI unexpectedly improved to 34.2 in February from 33.3 in January. Readings under 50 signal contraction. Although that marked the fifth straight month of contraction, the figure was better than expected.
10:15 a.m. Update: Stocks Open Lower On Brisk Trade
BY VINCENT MAO
Stocks opened lower Friday following news of the government's deal with Citigroup and a worse-than-expected read on gross domestic product. But they have since pared some losses.
The NYSE composite and S&P 500 shed 2.2% and 2%, respectively. Both undercut their November lows. The Dow lost 1.7%, while the Nasdaq fell 0.7%.
Volume was tracking higher across the board.
Financials were sharply lower.
Citigroup (C) plunged 25% amid concerns that its new deal with the government will greatly dilute the bank's shares. Bank of America (BAC) fell 18% and Wells Fargo (WFC) shed 8%.
Meanwhile, Shanda Interactive Entertainment (SNDA) declined 8% after Credit Suisse downgraded the online gaming firm to underperform from neutral following Thursday night's earnings release.
AstraZeneca (AZN) fell 3% on news that the Food and Drug Administration is seeking more information on its Seroquel anxiety treatment.
On the bright side, Hansen Natural (HANS) rose 6% despite posting an unexpected loss late Thursday.
9:15 a.m. Update: Citigroup Deal Sinks Stock Futures
BY VINCENT MAO
Stock futures signaled a vastly lower open Friday as Citigroup announced a deal that cedes more control to the government.
Nasdaq futures tumbled 14 points vs. fair value, S&P 500 futures dropped 18 points and Dow futures dumped 123 points.
Citigroup (C) reached a deal in which the U.S. government will exchange up to $25 billion in emergency bailout money for an equity stake of up to 36% in the firm. The Treasury Department and some private investors will convert preferred shares into common shares. Once completed, current shareholders will see their ownership stakes in the struggling bank fall to about 26%. Citi shares plunged 42% in the pre-market.
Group mates Bank of America (BAC), JPMorgan Chase (JPM) and Wells Fargo (WFC) were also sharply lower in the pre-open.
Lloyds Banking Group (LYG) dived 23% in the pre-market after the British bank reported a 75% decline in annual profit. Its HBOS unit, which reported results separately, lost 7.5 billion pounds ($10.6 billion) in 2008 vs. a profit of 4.05 billion pounds in 2007.
Fannie Mae (FNM) late Thursday said it would need $15.2 billion in government aid after losing more than $25 billion in the fourth quarter. This morning the mortgage finance giant said it expects home prices to fall 7% to 12% this year. Shares lost 8% in the pre-open.
Elsewhere, a unit of drugmaker Cephalon (CEPH) offered to buy Australia's Arana Therapeutics for $207 million.
In economic news, gross domestic product fell 6.2% in the final quarter of 2008 vs. estimates for a 5.4% shortfall. It was the biggest decline since a 6.4% drop in the first quarter of 1982 and worse than a prior estimate of 3.8%.
The Chicago PMI regional factory gauge will be out at 9:45 a.m. EST. Economists see a small dip to 33.
Crude oil dropped $2.41 to $42.81 a barrel.
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Wednesday, March 11, 2009
WHISTLEBLOWER SUIT FIELD Vs AMGEN OVER DRGS MAKETING
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UPDATE:Whistleblower Suit Filed Vs Amgen Over Drug Marketing
Dow Jones
February 27, 2009: 01:34 PM ET
(Adds details and background throughout; comments from Amgen in 6th paragraph, Wyeth in 10th paragraph, WebMD in 13th paragraph and AmerisourceBergen in 18th paragraph; updates stock prices.)
By Peter Loftus
Of DOW JONES NEWSWIRES
An unidentified whistleblower has filed a lawsuit against Amgen Inc. (AMGN) accusing the biotechnology company of illegal marketing of its blockbuster drugs Enbrel and Aranesp.
Wyeth (WYE), which co-markets Enbrel with Amgen, also was named as a defendant, along with wholesale drug distributor AmerisourceBergen Corp. (ABC), online health-information provider WebMD Health Corp. (WBMD) and other defendants.
An amended version of the lawsuit was filed in 2007 in the U.S. District Court for the District of Massachusetts in Boston, but had been under seal in accordance with a federal whistleblower law that protects the identify of the plaintiff. In the drug industry, such suits are often filed by former employees including sales representatives. A plaintiff's lawyer listed in the suit couldn't immediately be reached.
NOTE: In the drugs industry the suit are often field by former employees including sales presentatative.
A U.S. judge decided earlier this month to unseal portions of the lawsuit, and Wyeth disclosed the development in a regulatory filing on Friday.
The suit was filed on behalf of the U.S. and several states, though Wyeth said in its filing Friday that the U.S. Justice Department hasn't decided whether to intervene, and the department hasn't sought any information from Wyeth. A Justice Department spokesperson couldn't immediately be reached.
"Amgen believes the allegations made in the complaint are without merit and will vigorously defend against the litigation," said David Polk, spokesman for the Thousand Oaks, Calif, company.
Amgen shares declined $1.38, or 2.7%, to $59.84 Friday afternoon. Shares of Wyeth, which has agreed to be acquired by Pfizer Inc. (PFE), fell 23 cents to $ 40.91.
According to the lawsuit, the defendants violated federal and state false- claim laws, Medicare and Medicaid anti-kickback laws and the U.S. Food, Drug and Cosmetic Act "by engaging in numerous unlawful activities in their marketing of Aranesp and/or Enbrel."
Aranesp is an anti-anemia treatment that raked in $3.1 billion in sales in 2008. Aranesp and other anemia drugs are among the biggest drug expenses for Medicare, the federal health program for seniors. Medicare has tightened its reimbursement policies over the past couple years because clinical studies have shown the drugs can increase risk for heart problems and other conditions when used in certain ways. This has hurt sales.
NOTE: medicare has tightened its reimburesement.
Enbrel, a treatment for rheumatoid arthritis and psoriasis, generated $3.6 billion in 2008 sales for Amgen. Amgen co-markets Enbrel with Wyeth in the U.S. and Canada. Wyeth has exclusive rights to the drug outside these countries, and it recorded $2.6 billion in Enbrel sales for 2008 outside the U.S. and Canada.
Doug Petkus, spokesman for Madison, N.J.-based Wyeth, said "we believe the allegations as regard to Wyeth are without merit and we will defend ourselves vigorously."
According to the lawsuit, Amgen improperly marketed the attractive economics of Aranesp to customers - essentially that they could profit more from prescribing Aranesp than competing drugs. The lawsuit also alleges Amgen offered improper price discounts for Aranesp to customers and hid these prices from government health programs.
The suit also alleges that both Aranesp and Enbrel were marketed for uses not approved by the Food and Drug Administration. The suit alleges that part of this so-called "off-label" marketing was conducted on the online physician-education site Medscape, which is owned by WebMD.
New York-based WebMD spokeswoman Kate Hahn said "after a preliminary review of the WebMD programs that may be relevant, WebMD believes we complied with the rules and regulations applicable to our services."
The lawsuit alleges Amgen took these steps to gain an edge over rival anemia drug Procrit, which is marketed by Johnson & Johnson (JNJ), New Brunswick, N.J. Procrit is identical to Amgen's own Epogen, and J&J markets Procrit under a license deal with Amgen.
Last year, Amgen agreed to pay $200 million to J&J to settle J&J's allegations that Amgen violated antitrust laws by offering discounts to cancer clinics on Aranesp and certain other Amgen drugs. Amgen admitted to no wrongdoing under the settlement. Amgen has previously disclosed federal prosecutors have filed requests for documents related to its products.
J&J's own marketing practices for Procrit also have come under a cloud. A separate whistleblower suit against J&J, brought in 2003 by former sales representatives, alleged J&J offered kickbacks to health-care providers and encouraged off-label use of Procrit in an effort to counter Aranesp. The Justice Department declined to intervene, and the suit was later dismissed at J&J's request. The whistleblowers have appealed the action.
J&J also has previously disclosed that the U.S. Office of Inspector General's field office in Denver and the New York State Attorney General have sent subpoenas seeking documents related to Procrit.
Michael Kilpatric, spokesman for Chesterbrook, Pa.-based AmerisourceBergen, said the company couldn't comment on the allegations because the unsealed lawsuit has redacted portions and the government hasn't contacted the company.
-Peter Loftus; Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com
(END) Dow Jones Newswires
02-27-09 1334ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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UPDATE:Whistleblower Suit Filed Vs Amgen Over Drug Marketing
Dow Jones
February 27, 2009: 01:34 PM ET
(Adds details and background throughout; comments from Amgen in 6th paragraph, Wyeth in 10th paragraph, WebMD in 13th paragraph and AmerisourceBergen in 18th paragraph; updates stock prices.)
By Peter Loftus
Of DOW JONES NEWSWIRES
An unidentified whistleblower has filed a lawsuit against Amgen Inc. (AMGN) accusing the biotechnology company of illegal marketing of its blockbuster drugs Enbrel and Aranesp.
Wyeth (WYE), which co-markets Enbrel with Amgen, also was named as a defendant, along with wholesale drug distributor AmerisourceBergen Corp. (ABC), online health-information provider WebMD Health Corp. (WBMD) and other defendants.
An amended version of the lawsuit was filed in 2007 in the U.S. District Court for the District of Massachusetts in Boston, but had been under seal in accordance with a federal whistleblower law that protects the identify of the plaintiff. In the drug industry, such suits are often filed by former employees including sales representatives. A plaintiff's lawyer listed in the suit couldn't immediately be reached.
NOTE: In the drugs industry the suit are often field by former employees including sales presentatative.
A U.S. judge decided earlier this month to unseal portions of the lawsuit, and Wyeth disclosed the development in a regulatory filing on Friday.
The suit was filed on behalf of the U.S. and several states, though Wyeth said in its filing Friday that the U.S. Justice Department hasn't decided whether to intervene, and the department hasn't sought any information from Wyeth. A Justice Department spokesperson couldn't immediately be reached.
"Amgen believes the allegations made in the complaint are without merit and will vigorously defend against the litigation," said David Polk, spokesman for the Thousand Oaks, Calif, company.
Amgen shares declined $1.38, or 2.7%, to $59.84 Friday afternoon. Shares of Wyeth, which has agreed to be acquired by Pfizer Inc. (PFE), fell 23 cents to $ 40.91.
According to the lawsuit, the defendants violated federal and state false- claim laws, Medicare and Medicaid anti-kickback laws and the U.S. Food, Drug and Cosmetic Act "by engaging in numerous unlawful activities in their marketing of Aranesp and/or Enbrel."
Aranesp is an anti-anemia treatment that raked in $3.1 billion in sales in 2008. Aranesp and other anemia drugs are among the biggest drug expenses for Medicare, the federal health program for seniors. Medicare has tightened its reimbursement policies over the past couple years because clinical studies have shown the drugs can increase risk for heart problems and other conditions when used in certain ways. This has hurt sales.
NOTE: medicare has tightened its reimburesement.
Enbrel, a treatment for rheumatoid arthritis and psoriasis, generated $3.6 billion in 2008 sales for Amgen. Amgen co-markets Enbrel with Wyeth in the U.S. and Canada. Wyeth has exclusive rights to the drug outside these countries, and it recorded $2.6 billion in Enbrel sales for 2008 outside the U.S. and Canada.
Doug Petkus, spokesman for Madison, N.J.-based Wyeth, said "we believe the allegations as regard to Wyeth are without merit and we will defend ourselves vigorously."
According to the lawsuit, Amgen improperly marketed the attractive economics of Aranesp to customers - essentially that they could profit more from prescribing Aranesp than competing drugs. The lawsuit also alleges Amgen offered improper price discounts for Aranesp to customers and hid these prices from government health programs.
The suit also alleges that both Aranesp and Enbrel were marketed for uses not approved by the Food and Drug Administration. The suit alleges that part of this so-called "off-label" marketing was conducted on the online physician-education site Medscape, which is owned by WebMD.
New York-based WebMD spokeswoman Kate Hahn said "after a preliminary review of the WebMD programs that may be relevant, WebMD believes we complied with the rules and regulations applicable to our services."
The lawsuit alleges Amgen took these steps to gain an edge over rival anemia drug Procrit, which is marketed by Johnson & Johnson (JNJ), New Brunswick, N.J. Procrit is identical to Amgen's own Epogen, and J&J markets Procrit under a license deal with Amgen.
Last year, Amgen agreed to pay $200 million to J&J to settle J&J's allegations that Amgen violated antitrust laws by offering discounts to cancer clinics on Aranesp and certain other Amgen drugs. Amgen admitted to no wrongdoing under the settlement. Amgen has previously disclosed federal prosecutors have filed requests for documents related to its products.
J&J's own marketing practices for Procrit also have come under a cloud. A separate whistleblower suit against J&J, brought in 2003 by former sales representatives, alleged J&J offered kickbacks to health-care providers and encouraged off-label use of Procrit in an effort to counter Aranesp. The Justice Department declined to intervene, and the suit was later dismissed at J&J's request. The whistleblowers have appealed the action.
J&J also has previously disclosed that the U.S. Office of Inspector General's field office in Denver and the New York State Attorney General have sent subpoenas seeking documents related to Procrit.
Michael Kilpatric, spokesman for Chesterbrook, Pa.-based AmerisourceBergen, said the company couldn't comment on the allegations because the unsealed lawsuit has redacted portions and the government hasn't contacted the company.
-Peter Loftus; Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com
(END) Dow Jones Newswires
02-27-09 1334ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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Oil settles down 1%
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Top Stories
Stocks end at 12-year lows
Regulators shutter 2 more banks
AIG: The bailout that won't quit
GE slashes dividend by two-thirds
Obama's rude shock to six-figure earners
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