WAYNE, Pa., Oct. 23, 2015 /PRNewswire/ -- Safeguard
Scientifics, Inc. (NYSE: SFE) today announced third quarter 2015
financial results. Safeguard's partner companies achieved
significant developmental milestones and recorded continued
aggregate revenue growth. For the three months ended September 30, 2015, Safeguard partner company
aggregate revenue was $114.6 million,
up 33% from $86.3 million for the
same quarter of 2014. For the nine months ended September 30, 2015, partner company aggregate
revenue was $333.1 million, up 29%
from $258.2 million for the same
period in 2014.
"While public markets suffered substantial volatility during the
third quarter, Safeguard's partner companies continued to grow
revenue on an aggregate basis and achieved significant
developmental milestones," said Safeguard President and CEO Stephen
T. Zarrilli. "Safeguard remains on track to realize continued
growth in partner company aggregate revenue; to increase the total
number of our partner companies to approximately 30; to deploy
$35 million to $50 million in new
partner companies and $30 million to $50
million in follow-on funding for current partner companies;
and to execute a minimum of two profitable exits with a minimum
aggregate cash value of $50
million. We are confident that our near-term successes
will sustain our long-term commitment to drive significant
increases in Safeguard's assets under management."
For the three months ended September 30,
2015, Safeguard's net loss was $11.6
million, or $0.56 per share,
compared with net loss of $14.0
million, or $0.68 per share,
for the same quarter of 2014. For the nine months ended
September 30, 2015, Safeguard's net
loss was $45.3 million, or
$2.17 per share, compared with net
income of $10.0 million, or
$0.47 per share, in the same period
last year.
At September 30, 2015, Safeguard's
roster of 27 partner companies was comprised of 11 healthcare and
16 technology companies. "The cost of our interests in these
companies totaled $278.9 million,"
said Jeffrey B. McGroarty, Safeguard Senior Vice President and CFO.
"Our net cash, cash equivalents and marketable securities at
quarter-end totaled $52.8 million,
after subtracting the total carrying value of debt outstanding of
$51.4 million. During the third
quarter of 2015, we deployed $11.5
million in follow-on funding to two existing partner
companies. We also received initial proceeds of $7.8 million from the previously announced sale
of Quantia, and we realized an aggregate of $5.9 million in proceeds from milestone payments
and escrow from prior years' exits."
During the third quarter, Safeguard repurchased $1.7 million of its common stock in open market
transactions—representing 99,100 shares with an average price of
$17.61 per share—under an ongoing
$25 million share repurchase
authorization. Additional repurchases may be made in open market or
privately negotiated transactions in compliance with Securities and
Exchange Commission requirements and based on market conditions. At
September 30, 2015, Safeguard shares
outstanding totaled 20.7 million.
Significant accomplishments by Safeguard's partner companies
during the third quarter include:
- Product Launches/Regulatory Approvals – Aventura, Good
Start Genetics, Propeller Health, Putney, QuanticMind and Trice
Medical
- Major Customer Wins – AppFirst, Transactis and
WebLinc
- Strategic Partnerships – Beyond, Clutch Holdings,
MediaMath, Syapse, Trice Medical and WebLinc
- Industry Awards/Media Recognition – Apprenda,
InfoBionic, Hoopla Software, MediaMath, meQuilibrium, NovaSom,
Pneuron and Spongecell
- Follow-on Financing/Other Transactions – Apprenda,
InfoBionic and Medivo
AGGREGATE PARTNER COMPANY REVENUE
For 2015,
partner company aggregate revenue is projected to be between
$430 million and $450 million, which
includes revenue for all partner companies in which Safeguard had
an interest at January 1, 2015, but
excludes DriveFactor, which was sold in April 2015, and Quantia, which was sold in
July 2015. Aggregate revenue for the
same partner companies was $359
million for 2014 and $290
million for 2013. Aggregate revenue for all years reflects
revenue on a net basis. Revenue data for certain partner companies
pertains to periods prior to Safeguard's involvement with those
companies and are based solely on information provided to Safeguard
by those companies.
PARTNER COMPANY HIGHLIGHTS
The following
partner company highlights represent information as of September 30, 2015.
Partner Company
Revenue Stages
|
Development
Stage
- Pre-revenue
- Proving out
technology
- Developing
prototype
- Beta stage
customers
|
Initial Revenue
Stage
- Up to $5M in
revenue
- Initial
customers
- Early market
penetration
- Management team
forming
- Infrastructure
being built
|
Expansion
Stage
- $5M to $20M in
revenue
- Commercial grade
solution
- Growing market
penetration
- Management team
built out
- Infrastructure
in place
|
High Traction
Stage
- $20M+ in
revenue
- Significant
commercial traction
|
HEALTHCARE
AdvantEdge Healthcare Solutions, Inc. (Warren, NJ — High Traction
Stage)
AdvantEdge Healthcare Solutions
("AdvantEdge") is a technology-enabled provider of healthcare
revenue cycle and business management solutions that substantially
improve decision-making, maximize financial performance, streamline
operations and mitigate compliance risks for healthcare providers.
AdvantEdge is recognized as one of the top-10 medical billing,
coding and practice management companies in the U.S.; has nearly
600 employees in seven regional offices in the U.S. and one office
in Bangalore, India; and collects
approximately $1 billion annually for
its physician, hospital, ambulatory surgery, behavioral health and
large office-based clients. Safeguard has deployed $16.3 million in AdvantEdge since November 2006 and has a 40% primary ownership
position.
Market Opportunity — The market for AdvantEdge's services
is estimated to be more than $10
billion annually, which includes hospital-based physician
revenue cycle management and office-based revenue cycle management.
The ongoing pressures created by provider consolidations,
reimbursement pressures and accountable care initiatives present
challenges for players in the revenue-cycle management space
particularly for the smaller companies in the industry that do not
have the scale, technological capabilities or economic resources to
meet the evolving needs of the market. AdvantEdge intends to
capitalize on these industry dynamics to grow its franchise over
the long-term.
Operating Highlights — AdvantEdge continues to pursue
scale through organic growth and strategic acquisitions, completing
eight M&A transactions since 2009. The company's revenue in
2014 exceeded $40 million. In 2015,
AdvantEdge is focused on accelerating organic growth.
Aventura, Inc. (Denver, CO — Initial Revenue
Stage)
Aventura is a leading provider of
awareness computing for the healthcare industry. Through its
patented technology, Aventura delivers awareness of a user's
identity and role, the location within a facility, the device being
used, and the patient being treating. Based on this awareness,
Aventura immediately delivers a virtual desktop and dynamically
provisions the applications and exact screens a user needs to care
for that particular patient, eliminating wasteful clicks and
keystrokes. As a result, Aventura helps customers achieve their
important initiatives in the areas of electronic medical record
("EMR") adoption and meaningful use requirements, protected health
insurance security, mobility and cost containment. Safeguard
deployed $6.0 million in Aventura in
January 2015 and has a 20% primary
ownership position.
Market Opportunity — Hospitals have invested heavily in
EMR, driven largely by $36 billion in
federal incentives. Despite significant investments in health
information systems, efficiency, data security and workflow
optimization, challenges around day-to-day access to patient data
persist. Searching in multiple applications to compile a complete
view of patient charts requires further investment to leverage the
EMR spend. U.S.-based hospitals are estimated to spend $1.3 billion to optimize workflow for patient
data access, and fewer than half of U.S. hospitals have implemented
an optimization solution.
Operating Highlights — During the third quarter of 2015,
Aventura launched a workflow optimization solution that addresses
common technical obstacles with speech recognition applications.
Aventura for Speech Recognition uses situational awareness to
provide a customized clinical computing experience that combines
fast access to support mobile clinicians. The application
intrinsically recognizes each clinician by role, location, device,
and patient in the room, eliminating the need for manual login and
reducing login time from minutes to seconds. During the quarter,
Aventura also appointed healthcare technology veteran, John Glaser, Ph.D. to its board of directors.
Glaser is a senior vice president at Cerner Corporation (NASDAQ:
CERN), and is responsible for driving its technology and product
strategies, interoperability and government policy development.
Previously, Glaser was CEO of Siemens Health Services, a company
acquired by Cerner in February
2015.
Good Start Genetics, Inc. (Cambridge, MA — High Traction
Stage)
Good Start Genetics is a commercial-stage
molecular genetic information company focused on fundamentally
transforming the standard of care in reproductive medicine by
providing physicians and their patients with clinically relevant
and actionable information concerning inherited genetic disorders.
Through GeneVu™, the company provides a
comprehensive and clinically actionable menu of genetic carrier
screening tests for known and novel mutations that cause inherited
genetic disorders. Through its exclusive relationships with IviGen
and iGenomix in the U.S. and Canada, Good Start Genetics offers clinicians
additional important tests designed to improve pregnancy success
rates and the chances of having a healthy baby. Additionally,
through two exclusive agreements with Johns
Hopkins University, Good Start Genetics has obtained rights
to Fast-SeqS technology, which may streamline the delivery and
costs of providing pre-implantation genetic screening and
non-invasive prenatal testing. Safeguard has deployed $12.0 million in Good Start Genetics since
September 2010 and has a 30% primary
ownership position.
Market Opportunity — According to the Centers for Disease
Control and Prevention, approximately 62 million women are within
reproductive age range in the U.S.; and 6.6 million pregnancies
occur annually in the U.S. This presents a total addressable U.S.
market opportunity of $1.25 billion to $1.5
billion for carrier screening in reproductive health.
Operating Highlights — During the third quarter of 2015,
Good Start Genetics added EmbryVu™, a new
preimplantation genetic screening ("PGS") test. PGS improves the
chances of successful in vitro fertilization by identifying embryos
that have an increased chance of implantation and successful
pregnancy. Good Start Genetics is offering EmbryVu at
considerably lower prices than has historically been offered by
other lab offering PGS tests. The company continues to expand
access to its GeneVu genetic carrier screening tests to the
broader women's health community, including obstetrics, gynecology
and maternal fetal medicine physicians.
InfoBionic, Inc. (Lowell,
MA — Development Stage)
InfoBionic is an
emerging digital health company focused on creating superior
patient monitoring solutions for chronic disease management with an
initial market focus on cardiac arrhythmias. InfoBionic's
MoMe® Kardia system will empower physicians with control
to transform the efficiency with which they manage cardiac
arrhythmia detection and monitoring processes for their patients.
Leveraging a comprehensive, cloud-based remote patient monitoring
platform—the first and only of its kind—InfoBionic will deliver
on-demand, actionable monitoring data and analytics directly to the
physicians themselves. The MoMe Kardia 3-in-1 device streams
continuous electrocardiogram, respiration and motion data to the
cloud for analysis and delivers automated reporting to any mobile
device, tablet or web-based portal where physicians will be able to
access and interact with the data they need, in the detail they
want—anytime, anywhere. Safeguard has deployed $9.5 million in InfoBionic since March 2014 and has a 39% primary ownership
position.
Market Opportunity — The global addressable market for
monitoring cardiac arrhythmia and related events is estimated to be
approximately $3 billion worldwide,
including $1 billion in the U.S.
Operating Highlights — During the third quarter of 2015,
Safeguard provided an initial $1.5
million of a $3.5 million
commitment in connection with an $8
million Series B-1 financing to support development and
commercialization of InfoBionic's second-generation cardiac
arrhythmia detection platform, MoMe® Kardia. Pending
clearance by the U.S. Food and Drug Administration ("FDA"),
InfoBionic expects to launch its platform in 2016. During the
quarter, InfoBionic also appointed Hamid
Tabatabaie, a 30-year health information technology veteran
and chief executive of four successful startups, to the company's
board of directors. Tabatabaie is founder and CEO of lifeIMAGE, a
cloud-based service for exchange of diagnostic imaging information.
In addition, InfoBionic was included in a list of 75 women-led
startups in the Boston area
compiled by BostInno, an American City Business Journals
property.
Medivo, Inc. (New York,
NY — Expansion Stage)
Medivo is a
healthcare data analytics company that unlocks the power of lab
data to improve health. Medivo is the largest source of lab data in
the U.S. with access to over 150 million patients through its
nationwide network of partner labs. Medivo analyzes large data sets
and shares its findings with the medical community at large, as
well as with its life science, payer and lab partners, to ensure
that appropriate available treatments are provided to patients
sooner. Safeguard has deployed $11.6
million in Medivo since November
2011 and has a 35% primary ownership position.
Market Opportunity — Medivo generates revenue through
targeting and analytics programs and clinical services. Based on
current monetization strategies, the addressable healthcare
analytics market for Medivo's products is estimated to reach
$10.8 billion.
Operating Highlights — During the third quarter of 2015,
Medivo sold its lab testing authorization services division to
PWNHealth to sharpen Medivo's strategic focus on high-value
recurring revenue from aggregating, analyzing and commercializing
healthcare data. Medivo has partnered with seven of the top ten
life sciences companies, and is working to grow its roster of
pharmaceutical clients.
meQuilibrium, Inc. (Boston, MA — Initial
Revenue)
meQuilibrium is a digital coaching
platform that delivers clinically-validated and highly-personalized
resilience solutions to employers, health plans, wellness
providers, and consumers increasing engagement, productivity and
performance, as well as improving outcomes in managing stress,
health and well-being. The clinically validated, HIPAA-compliant,
software-as-a-service ("SaaS") platform delivers an individualized
digital coaching experience. The scientifically validated and
clinically proven approach is based on 15 years of research showing
the link between stress and resilience, and grew out of research on
resilience at the University of
Pennsylvania. Designed for mobile and desktop use, the
scalable meQuilibrium platform guides users through a personalized
assessment to develop a long-term roadmap focused on critical
skills to boost resilience. Data from the aggregated meQuilibrium
user base provide metrics and insights on workforce well being
informing human capital strategies and decision-making. Safeguard
deployed $6.5 million in meQuilibrium
in April 2015 and has a 32% primary
ownership position.
Market Opportunity — In the latest Staying@Work Survey
from Towers Watson, employers from around the world emphasize that
stress is the #1 lifestyle risk factor, propelling absenteeism,
productivity, injury and turnover costs. These factors cost U.S.
businesses an estimated $300 billion
annually, and healthcare expenditures are estimated to be 50%
greater for high-stress workers.
Operating Highlights — During the third quarter of 2015,
meQuilibrium continued to gain traction with enterprise sales,
taking advantage of benefits open-enrollment season. Enterprise
clients currently include Citrix, Comcast, Hewlett-Packard, Iron
Mountain, Nemours, and Target. Recruiting initiatives are advancing
for sales executives to lead business development in the health
plan sector and with benefit-consultant and wellness-portal channel
partners. meQuilibrium was included in BostInno's list of 75
women-led startups in the Boston area, and was named a finalist on
BostInno's 50 on Fire which features Boston's biggest game changers. Co-founder and
CEO, Jan Bruce, published
"meQuilibrium: 14 Days to Cooler, Calmer and Happier" which
outlines how to focus on rewarding activities instead of worry,
anxiety, anger and guilt. Co-authors are co-founder Andrew Shatte, Ph.D. and Adam Perlman, M.D. In addition, meQuilibrium
hosted a panel at the National Business Group on Health 29th
Conference on Employee Health, Productivity and Human Capital.
Jan Bruce spoke alongside Dr.
Tanya Benenson, Chief Medical
Officer of Comcast NBCUniversal who presented the positive impact
the meQuilibrium program has had on absenteeism in their call
centers.
NovaSom, Inc. (Glen
Burnie, MD — Expansion Stage)
NovaSom is a
leader in Obstructive Sleep Apnea ("OSA") home testing with the
AccuSom® home sleep test, the only comprehensively
supported home sleep test that provides continuous patient support
and next-day test results and interpretation for health care
professionals. The FDA-cleared AccuSom is as accurate as sleep-lab
testing and significantly more convenient and comfortable for
patients. Patients are able to test around their own schedules and
can sleep in their own beds, which helps eliminate "first-night"
effect and improves data collection. Safeguard has deployed
$21.1 million in NovaSom since
June 2011 and has a 32% primary
ownership position.
Market Opportunity — The OSA diagnostic market in the
U.S. is estimated to be approximately $4
billion and is growing more than 15% annually. Only 3
million sufferers in the U.S. have been diagnosed to date, out of
an estimated 40 million moderate to severe OSA sufferers.
Operating Highlights — During the third quarter of 2015,
chief medical officer Michael
Coppola, M.D. was elected as a fellow of the American
College of Physicians for his extensive achievement in sleep and
pulmonary medicine, public health policy, patient advocacy and
scholarly activities over the past 25 years. NovaSom's
AccuSom home sleep test is being featured in an episode of
Innovations with Ed Begley Jr. on
the Discovery Channel. AccuSom is currently covered for more
than 150 million commercially insured U.S. lives. NovaSom is
accredited by the Joint Commission as an Ambulatory Care Sleep
Diagnostic Center & Telehealth Provider and is classified by
the Centers for Medicare & Medicaid Services as an Independent
Diagnostic Testing Facility.
Propeller Health, Inc. (Madison, WI — Initial Revenue
Stage)
Propeller Health provides digital
solutions to measurably improve respiratory health. One of the
first mobile platforms with FDA clearance, Propeller Health
combines sensors, mobile apps and predictive analytics to monitor
and engage patients, increase adherence and encourage effective
self-management. Propeller Health partners with integrated delivery
systems and health plans seeking new solutions to improve quality,
strengthen care teams and reduce the cost of care for asthma and
chronic obstructive pulmonary disease ("COPD"), the fifth and sixth
most expensive diseases in the U.S., respectively. Safeguard
deployed $9.0 million in Propeller
Health in August 2014 and has a 25%
primary ownership position.
Market Opportunity — Asthma and COPD currently cost
payers and patients in the U.S. more than $100 billion annually. By 2020, the CDC estimates
that the cost of medical care for adults in the U.S. with COPD
alone will increase 53% to more than $90
billion.
Operating Highlights — During the third quarter of 2015,
Propeller Health received FDA clearance to market its system for
use with asthma and COPD medications administered through
GlaxoSmithKline's Diskus dry powder inhaler. FDA-approved marketing
claims of "improved adherence" and "reduction in exacerbations"
address key unmet needs in respiratory health. Propeller Health's
software-as-a-service, recurring revenue business model continues
to draw interest from large pharmaceutical companies, device
manufacturers and health insurance providers. M&A and financing
activities are increasing in digital health, according to a recent
Accenture report. Digital health deals totaled 396 in 2014, up from
118 in 2010. Digital health funding in 2014 was $3.5 billion, compared to less than $1 billion in 2010. In 2015, in the "smart
inhaler" space, Teva Pharmaceuticals acquired Gecko Health
Innovations of Cambridge, MA and
Australia-based Adherium completed
an initial public offering. Unlike competing medical product
offerings, Propeller Health's offering in the medical management
services category generates recurring revenue based on improved
treatment outcomes, patient retention and other analytics versus
medical products for competitors. User data show that the Propeller
Health system has significantly higher patient engagement and
retention rates than other asthma and COPD apps.
Putney, Inc. (Portland,
ME — High Traction Stage)
Putney is a rapidly
growing pet pharmaceutical company focused on developing
high-quality, generic prescription medicines for pets. Putney's
mission is to provide veterinary practices with FDA-approved
veterinary generic medicines that meet pet medical needs and offer
cost-effective alternatives for pet owners. Safeguard has deployed
$14.9 million in Putney since
September 2011 and has a 28% primary
ownership position.
Market Opportunity — According to IMS Health, 88% of all
human prescriptions in the U.S. are filled with a generic, yet very
few generics exist for drugs prescribed for pets. Analysis of FDA
Center for Veterinary Medicine approvals reveals that 91% of
FDA-approved drugs for pets have no generic equivalent. The overall
size of the pet pharmaceutical market is significant. Packaged
Facts, in its April 2014 report
entitled, "Pet Medications in the U.S.," stated that U.S. retail
sales of pet medications reached $8
billion in 2013 and projected that the market will grow to
more than $10 billion in 2018,
reflecting a compound annual growth rate of 5%.
Operating Highlights — During the third quarter of 2015,
Putney received FDA approval for its Thiabendazole, Dexmethasone,
Neomycin Sulfate Solution, the only generic of
Tresaderm® for treating certain bacterial and
inflammatory skin disorders in dogs and cats. Commercial
distribution of Putney's seventh new product approval in the past
ten months is expected to begin when inventory levels are
sufficient to meet anticipated high demand. Gary Eaton, formerly of Idexx, joined the
company as vice president for sales and marketing. Putney's product
portfolio now totals 11 generic equivalents of companion animal
veterinary drugs. New product launches and growth in the base
business continue to drive revenue increases at Putney.
Syapse, Inc. (Palo Alto,
CA — Initial Revenue Stage)
Syapse
software enables healthcare providers to deploy precision medicine
programs. Leading academic and community healthcare providers use
the Syapse Precision Medicine PlatformSM to integrate
complex genomic and clinical data to provide clinicians with
actionable insights at point of care, enabling diagnosis, treatment
and outcomes tracking. Safeguard deployed $5.8 million in Syapse in June 2014 and has a 24% primary ownership
position.
Market Opportunity — Syapse's technology provides
integral software infrastructure for any healthcare provider
utilizing genomics, molecular and high-complexity clinical data in
the care of their patients. While Syapse's platform can be applied
to any disease area, early customers have focused on oncology. In
October 2015, Oliver Wyman estimated that the market
opportunity for Precision Medicine hubs is $200 billion annually.
Operating Highlights — During the third quarter of 2015,
Syapse announced a collaboration with UCSF, the University of California Health System, and the
California Initiative to Advance Precision Medicine, a
public-private effort launched by Governor Edmund G. Brown Jr., to use genetic sequencing
to diagnose patients who are hospitalized with acute, potentially
life-threatening infectious diseases. The program has received more
than $1.2 million in public and
private grants and other funding. The university health system is
expected to roll out the project over the next 18 months and
intends to begin treating patients presenting with encephalitis,
meningitis, sepsis or pneumonia. Syapse's role is to integrate
molecular genomic data with clinical data from medical records to
support treatment options, track patient outcomes over time, and
support the scaling of the program across medical campuses.
Trice Medical™ (King of Prussia, PA — Initial Revenue
Stage)
Trice Medical is a sports medicine company
focused on micro invasive technologies. Trice Medical has pioneered
fully integrated camera-enabled needle technologies that provide a
clinical solution, optimized for use in the physician's office. The
company's first product is mi-eye™, which is a
single-use, streamlined visualization device that uses a standard
14-gauge needle with integrated optics to perform a diagnostic
arthroscopy. Trice Medical's mission is to provide more immediate
and definitive patient care, shortening the timeline from injury to
recovery significantly reducing the overall cost to the healthcare
system. Safeguard has deployed $6.2
million in Trice Medical since July
2014 and has a 28% primary ownership position.
Market Opportunity — In the U.S., it is estimated that
more than 32 million magnetic resonance imaging (MRI) exams are
conducted each year, of which approximately 8 million are
orthopedic in nature. Private insurers, which cover approximately
80% of all sports medicine injuries, often pay an average of
$1,500 to $2,000 per MRI—all of which
is paid to the facility that owns the MRI and an independent
radiologist, not to the orthopedic surgeon who is treating the
patient. As a result, Trice Medical's addressable market
opportunity is approximately $15
billion.
Operating Highlights — During the third quarter of 2015,
Trice Medical launched its enhanced, mi-eye+, which has an
increased depth of field of the optics resulting in a larger range
of focus and ease of use. With the mi-eye+ product launch, Trice
Medical also completed testing and validation of its in-office
clinical protocol for diagnosing knee injuries using the mi-eye+,
which should ultimately improve the physicians success rate in
performing the mi-eye+ diagnostic exam.
TECHNOLOGY
AppFirst, Inc. (New York,
NY — Initial Revenue Stage)
AppFirst's patented
technology enables rapid and unintrusive collection of real-time
foundational metrics, at the sub-nanosecond level, in conjunction
with collecting and time synchronizing multiple other data types.
AppFirst's rich data set can be used for many purposes including
security introspection, detailed forensics, regulatory compliance,
real time transaction tracing, real time topology viewing,
operations management, performance management, detailed cost
tracking, and many other applications for both cloud and
proprietary environments. Safeguard has deployed $10.6 million in AppFirst since December 2012 and has a 34% primary ownership
position.
Market Opportunity — AppFirst competes in the
$2.6 billion application-performance
monitoring market, where existing vendors are growing 10% per year,
according to 2013 Gartner estimates.
Operating Highlights — During the third quarter of 2015,
AppFirst added the World Bank and Konica Minolta to its client
roster. AppFirst continues to gain traction with the secure
enterprise version of its platform for deployments on premise, in
the cloud or in a hybrid environment. AppFirst's platform includes
a patented data collection and aggregation offering to deliver
visibility into all foundational interactions including, but not
limited to, every application call, system event, log file entry,
configuration change, third-party application or custom code event
as well as data from thousands of plug-ins. AppFirst's platform
includes a big data correlation and aggregation engine providing a
normalized and time synchronization view of all collected data
across the enterprise in a way previously unavailable using
traditional application performance management and polling
solutions.
Apprenda, Inc. (Troy,
NY — Initial Revenue Stage)
Apprenda is a
leading enterprise platform-as-a-service ("PaaS") company powering
the next generation of enterprise software development in public,
private and hybrid clouds. As a foundational software layer and
application run-time environment, Apprenda abstracts away the
complexities of building and delivering modern software
applications, enabling enterprises to turn ideas into innovations
more quickly. With Apprenda, enterprises can securely deliver an
entire ecosystem of data, services, applications and application
programming interfaces to both internal and external customers
across any infrastructure. Safeguard has deployed $22.1 million in Apprenda since November 2013 and has a 30% primary ownership
position.
Market Opportunity — Apprenda was named by Gartner as an
early leader for private cloud enabled application platforms
("CEAP"), a new category with a potential annual market opportunity
of up to $4 billion. CEAP provides
PaaS functionality as a software product, allowing an enterprise to
write to a platform that can be deployed in-house on their servers
or externally on another vendor's cloud.
Operating Highlights — During the third quarter of 2015,
Apprenda announced that it raised $24
million in funding, led by Safeguard with $10.0 million in follow-on funding. Proceeds will
be used to further the adoption of Apprenda's enterprise PaaS,
which helps large organizations—including JPMorgan Chase, McKesson,
and AmerisourceBergen—transform into software-defined enterprises
and save money. As of July 2015,
Apprenda's staff totaled 87. The company plans to hire 40 to 50
additional employees in engineering, sales and support in order to
meet market demand. Apprenda has been designated VMware
Ready-vCloud® Air™ status, indicating technical
validation and support of Apprenda on VMware platforms. Apprenda
solutions are now available in the Cisco Intercloud Marketplace.
The Apprenda-Cisco collaboration builds upon recent partnerships
with Microsoft Azure and Piston Cloud (recently acquired by Cisco).
Forbes also named Apprenda one of the top three best enterprise
cloud computing startups to work for, based on data from
Glassdoor.
Beyond.com, Inc. (King of
Prussia, PA — High Traction Stage)
Beyond.com
("Beyond"), The Career Network™, helps millions of
professionals find jobs and advance their careers while also
serving as the premier destination for companies in need of top
talent. This is achieved through more than 500 talent communities
that use integrated social features to help members discover
relevant jobs, career news, career advice and resources. Safeguard
deployed $13.5 million of capital in
Beyond in March 2007 and has a 38%
primary ownership position.
Market Opportunity — The global human capital management
market is estimated to be $85
billion. According to International Data Corporation, the
U.S. recruiting market is estimated to be between $15 billion and $20 billion, while the U.S.
online recruiting market is estimated to be approximately
$5.3 billion.
Operating Highlights — During the third quarter of 2015,
Beyond announced a partnership with Udemy, a leading marketplace
for online learning. This partnership will enhance the quality of
job applicants by combining Beyond's career development tools with
Udemy's skills-based courses. In addition, this partnership
provides Beyond's millions of users with the ability to browse and
explore Udemy's 30,000 online courses. Having access to this
on-demand content will give Beyond's members a distinct advantage
in the employment market, as they are able to seamlessly attain and
develop practical skills.
Bridgevine, Inc. (Atlanta, GA — High Traction
Stage)
Bridgevine powers digital marketplace
solutions where product and service supply from the leading brands
meets consumer and small/medium business demand. Bridgevine brings
customers to its vast marketplace through a blend of direct
marketing and proprietary distribution channels. Participating
partners can acquire new customers, build brand loyalty and unlock
new forms of revenue from their existing customer base.
Bridgevine's proprietary software platform facilitates more than 10
million monthly inquiries and more than $2.2
billion in annualized revenue for Bridgevine's partners.
Safeguard has deployed $10.0 million
in Bridgevine since August 2007 and
has a 17% primary ownership position.
Market Opportunity — Marketing and customer acquisition
can represent upwards of 10% of an organization's total revenues.
In 2015 alone, the leading satellite, cable, energy, security and
telecommunications companies are expected to spend over
$20 billion on customer acquisition,
sales, and marketing. Bridgevine's solutions are well positioned
within those vertical markets and expands cross sell and upsell in
warranty, energy efficiency, home protection and other move-related
services.
Operating Highlights — During the third quarter of 2015,
Bridgevine achieved its highest profitability ever and expects to
continue this pace into 2016. Bridgevine has achieved its defined
merger synergies, following the integration of Acceller, and has
successfully tested its next generation technology platform to
handle more than one billion transactions per month. To further its
growth, Bridgevine hired industry veteran Chris Lefebvre, who has deep utility, financial
services and retail program experience, to lead Bridgevine's
revenue development.
CloudMine, Inc. (Philadelphia, PA —
Initial Revenue Stage)
CloudMine is a mobile
backend-as-a-service ("mBaaS") platform that empowers enterprise
developers to build secure, compliant and performant applications
up to 70% faster than do-it-yourself methods. At CloudMine, the
mission is to reduce complexity, allowing mobile developers to
build compelling app content without sacrificing security, data
privacy, or the ability to deliver meaningful innovation.
CloudMine's secure mobile foundation is HIPAA and HITECH compliant,
and used by world-class enterprises including Mylan, Endo
Pharmaceuticals, Barnes & Noble
College, and Digitas Health to drive end-user engagement and
intelligence. These customers are able to build apps using
best-of-breed tools centered on mobile-specific services (push
notifications, geolocation, etc.), data security/encryption, app
scale, audit ability, logging, and continuous availability.
Moreover, CloudMine developers have the flexibility to build and
deploy the apps on a variety of leading cloud
infrastructure-as-a-service providers—Amazon Web Services,
Rackspace, Microsoft, and CenturyLink—and select the optimal
programming language to fit their resourcing and technical
requirements. As a leader in embracing JavaScript in the
enterprise, CloudMine empowers customers to quickly repurpose
resources with web skills to usher in a new era of app offerings
for connected devices, while concurrently benefiting from the
agility and power of the cloud. Safeguard deployed $2.9 million in CloudMine in February 2015 and has a 30% primary ownership
position.
Market Opportunity — By 2017, the mobile mBaaS market is
projected to be $7.7 billion, up from
$216 million in 2012, according to
MarketsandMarkets Research. Today, 50% of business processes that
involve human tasks require near-real-time responses that are
mobile-enabled, according to Gartner research.
Operating Highlights — During the third quarter of 2015,
CloudMine achieved ISO certification, and will now be pursuing
HITRUST. The CloudMine platform also benefited from a significant
enhancement to CodeRunner, the application logic engine enriching
customers' ability to deliver robust applications.
Clutch Holdings, Inc. (Ambler, PA — Initial Revenue
Stage)
Clutch Holdings ("Clutch") is a leading
provider of advanced consumer management technology that delivers
customer intelligence and consumer engagement solutions to premium
brands. Clutch's comprehensive consumer management platform
empowers customer-focused businesses to identify, understand and
engage their most valuable customers. Clutch's pioneering customer
marketing technology integrates a brand's first-party,
cross-channel customer data spanning traditional point-of-sale
systems, ecommerce platforms, mobile applications and social
networks providing brands strategic understanding to personalize
engagements to their customers. Clutch's solutions deliver
exceptional experiences to more than 46 million customers of more
than 750 brands across 14 countries. Safeguard has deployed
$12.3 million in Clutch since
February 2013 and has a 39% primary
ownership position.
Market Opportunity — The consumer management category is
an emerging, multi-billion dollar industry focused on delivering
premier brands the ability to maximize relationships with, and the
lifetime value of, their customers. Clutch's advanced technology
platform and consultative approach delivers multidimensional
intelligence, sophisticated understanding, strategic engagement and
powerful optimization to achieve this.
Operating Highlights — During the third quarter of 2015,
Clutch added Meineke, a leader in the automotive service industry
as a client, serving as the brand's strategic customer intelligence
and engagement partner. Clutch also entered into a strategic
partnership with POS on Cloud, a point of sale software company, to
provide cloud-based restaurant and retail gift card, loyalty, and
customer intelligence for businesses. In addition, Clutch announced
a partnership with fellow Safeguard technology partner company,
WebLinc, which provides WebLinc's clients access to advanced
customer loyalty and gift programs that integrate various channels
including web and mobile sales, within the commerce platform for
increased intelligence and more personalized engagements.
Full Measure Education, Inc. (Washington, DC — Initial Revenue
Stage)
Full Measure Education offers
colleges and universities a cost-effective SaaS student engagement
platform to maximize student success. This system-wide
infrastructure increases student persistence, engagement and goal
accomplishments, delivering information to students when they want
it and how they have come to expect it. With Full Measure
Education, schools can redesign communication and student services
to streamline administrative processes, automate steps where
possible and deliver personalized support to each student. By
delivering personalized, relevant and timely communications to
students across the entire student lifecycle, students are inspired
to achieve their academic goals and institutions can intervene when
students exhibit at-risk behavior. Safeguard deployed $4.0 million in Full Measure Education in
January 2015 and has a 25% primary
ownership position.
Market Opportunity — In the community and junior college
markets, there are more than 1,132 colleges. The average revenue
per community college is $56 million,
which means that the total annual revenue for the community and
junior colleges market is approximately $60
billion. These colleges spend $2.5
billion of their budgets on student services, which is the
opportunity that Full Measure Education targets.
Operating Highlights — Full Measure Education continues
to build out its sales organization with proceeds from an earlier
$5.5 million Series B financing led
by Safeguard. Clients include the University of Pittsburgh-Bradford, Kansas City Kansas Community College and
Parchment.
Hoopla Software, Inc. (San Jose, CA — Initial Revenue
Stage)
Hoopla Software ("Hoopla") provides cloud-based
software that helps sales organizations inspire and motivate sales
team performance. Hoopla's Sales Motivation Platform combines
modern game mechanics, data analytics and broadcast-quality video
in a cloud application that makes it easy for managers to motivate
team performance and score more wins. Using Hoopla, managers can
quickly create contests, competitions and leaderboards around any
customer relationship management metric and can broadcast live
performance updates to any TV, web or mobile screen, engaging the
entire company in an exciting, play-to-win culture. Safeguard has
deployed $3.1 million in Hoopla since
December 2011 and has a 26% primary
ownership position.
Market Opportunity — Hoopla is in the employee
performance management market. U.S. companies spend approximately
$5 billion on employee performance
software and almost $38 billion on
employee incentives every year. Hoopla's platform takes advantage
of data analytics and advanced gamification techniques to enhance
performance.
Operating Highlights — During the third quarter of 2015,
Hoopla was mentioned in a Wall Street Journal article on trends in
the $23 billion annual market for
sales automation and performance software. "The combination
of predictive smarts and automation promises to push sales into a
new era of data-driven efficiency," the article says. Hoopla
continues to expand its sales, marketing and product development
efforts to meet the rapidly growing demand for its software.
Lumesis, Inc. (Stamford,
CT — Initial Revenue Stage)
Lumesis is a
financial technology company focused on providing business
efficiency, data and regulatory solutions to the municipal bond
marketplace. Lumesis serves the municipal market with
industry-leading analysis and compliance solutions that meet the
needs of an evolving regulatory environment. Lumesis' DIVER
platform helps more than 500 firms with more than 43,000 users
efficiently meet credit, regulatory and risk needs. Safeguard has
deployed $5.6 million in Lumesis
since February 2012 and has a 45%
primary ownership position.
Market Opportunity — Lumesis focuses on delivering its
solutions to portfolio managers, investment advisors, compliance
professionals, financial advisor networks and issuers/underwriters
in the municipal bond marketplace, which has doubled over the past
10 years. Lumesis estimates that its current addressable market to
this customer base is approximately $1
billion on an annual basis.
Operating Highlights — During the third quarter of 2015,
Lumesis introduced its Underwriter platform, which helps municipal
market participants address regulatory requirements and business
efficiencies when underwriting municipal bonds. The platform was
built to help firms address the focal point of the SEC's
Municipalities Continuing Disclosure Cooperation initiative and
corresponding Cease and Desist Orders, of which 58 have been issued
to date with fines totaling nearly $14
million. Additional Orders and fines are anticipated.
Lumesis also released a White Paper, Municipal Underwriting
Diligence, which offers perspective regarding the importance of
proper identification of the Continuing Disclosure Obligated
Party(s) when conducting Muni Bond Underwriting diligence and a
look at the issue of misclassified filings with the MSRB.
MediaMath, Inc. (New
York, NY — High Traction Stage)
MediaMath
is a global technology company that is leading the movement to
revolutionize traditional marketing and drive transformative
results for marketers through its TerminalOne (T1) Marketing
Operating System™. A pioneer in the industry,
introducing the first demand-side platform, MediaMath is the only
company of its kind to empower marketers with an extensible, open
platform to unleash the power of goal-based marketing at scale, and
transparently across the enterprise. T1 activates data, automates
execution and optimizes interactions across all addressable media,
delivering superior performance, transparency and control to all
marketers with better, more individualized experiences for
consumers. Safeguard has deployed $25.5
million in MediaMath since July
2009 and has a 21% primary ownership position.
Market Opportunity — According to eMarketer, total
digital ad spending is expected to grow at a compound annual rate
of 14% between 2015 and 2018. Worldwide digital ad spending is
estimated to be $578 billion in 2015,
while programmatic direct ad spending is projected to be
$171 billion in 2015.
Operating Highlights — During the third quarter of 2015,
MediaMath continued to develop key marketing technology
partnerships with IBM and Oracle in separate arrangements.
MediaMath can now share data with IBM solutions Silverpop,
Interact, Tealeaf, Digital Analytics and xtify so that marketers
can leverage insights and execute optimized campaigns across paid
and owned channels. In addition, MediaMath partnered with Oracle to
create an application for their Marketing Cloud Application in the
Oracle user interface. This application empowers both B2B and B2C
marketers to leverage end-to-end infrastructure and optimize
workflow process to target their audiences at every stage of the
customer journey. As part of MediaMath's global development,
MediaMath expanded its video advertising offerings in Europe through a partnership with smartclip,
the owner of Programmatic Multiscreen Video SSP SmartX Platform. By
integrating the smartclip platform and the TerminalOne Marketing
Operating System, marketers can boost cross-channel efforts across
desktops, laptops, mobile devices and connected TVs. MediaMath
announced the key appointment of Rich
Schmaeling to Chief Financial Officer. Formerly CFO at Lin
Media and VP, Finance at Dow Jones, Schmaeling brings extensive
knowledge in private and public company operations, as well as
M&A experience. Lastly, MediaMath was named one of Crain's 2015
Best Places to Work, and Glassdoor ranked Joe Zawadzki one of the top CEOs in the small
and medium business category.
Pneuron Corporation (Woburn, MA — Initial Revenue
Stage)
Pneuron enables organizations to rapidly solve
business problems through a groundbreaking, distributed approach
that cuts across data, applications and processes. By targeting the
right information at the data source, companies are no longer faced
with the complex integration and infrastructure requirements of
traditional approaches. Pneuron's innovative Distributed Solutions
Platform leverages a microservices-styled architecture to enable
customers to accelerate business value and develop reports,
products and applications in half the time and cost of traditional
methods. Pneuron's distributed approach is non-invasive,
technology-agnostic and leverages an organization's existing
infrastructure, avoiding the deployment risks and IT concerns that
are prevalent in today's centralized data projects. Safeguard
deployed $8.5 million in Pneuron
since February 2013 and has a 35%
primary ownership position.
Market Opportunity — The financial services industry
spends approximately $10 billion per
year on cloud enablement, information management software and
business intelligence/analytics/collaboration, based on Forrester
Research estimates. Analysts agree that Pneuron does not fit neatly
into any category, and that the company is positioned to be a
disruptive player across the financial services industry.
Operating Highlights — During the third quarter of 2015,
Pneuron reported continued rapid growth. Business-intelligence
sector growth is projected to remain strong, based on an
International Data Corporation study of the Internet of Things that
found that 85% of smart objects and data will still be unconnected
by 2020. Pneuron systems continue to earn high marks from
customers. For a large client with global operations, a
system was installed in just three hours, compared to three weeks
using conventional business-intelligence tools. Analytics to
manage anti-money laundering systems were in place in less than six
months for a client with more than 1.8 billion transactions.
For another client with an anti-money laundering system, analyst
productivity was increased by more than 40% in four weeks. In
addition, Pneuron growth and client success is earning industry
recognition. The company was named to the 2015
CRN® Emerging Vendors List for delivering
next-generation technology to enhance business intelligence.
QuanticMind, Inc. (Redwood City, CA —
Initial Revenue Stage)
Founded as
InsideVault, QuanticMind, the Platform for Smarter Advertising, is
a rapidly growing SaaS company providing enterprise-level,
predictive advertising management software for paid search, social,
and mobile, which represent the largest digital advertising
categories in the world. QuanticMind brings together machine
learning, distributed cloud, and in-memory processing technologies
to provide the most intelligent, most scalable, and fastest
platform available. Sophisticated global marketers including
HomeAdvisor, Ogilvy, and Glasses.com are upgrading to QuanticMind
to take advantage of its smart data science and flexible big data
engine. Safeguard deployed $7.0
million in QuanticMind in June
2015 and has a 25% primary ownership position.
Market Opportunity — Unlike first-generation search
engine marketing bid management tools that were designed around
2006, QuanticMind's predictive advertising management platform was
built to the scale of data and complexity of online marketing in
2015 and beyond. The company is well positioned to compete in
an addressable advertising management market estimated at
$15 billion annually. Spend on paid
search, social, display and mobile advertising is expected to grow
to $133 billion.
Operating Highlights — During the third quarter of 2015,
the company rebranded itself as QuanticMind to emphasize its value
proposition as a pioneer in combining data science and machine
learning technology. QuanticMind's search offering allows marketers
to manage and optimize campaigns and bidding on Google AdWords,
Bing Ads, Yahoo Gemini and other search engines across all devices.
Marketers also can manage bidding on related display networks,
shopping campaigns and remarketing inventory. The QuanticMind
Social product helps marketers manage and optimize campaigns on
Facebook Ads and other social networks accessed via mobile devices,
desktops and tablets. The QuanticMind Platform offers a decision
engine that predicts the best ad investments, customizable
analytics, and effortless integration. QuanticMind clients include
1-800-Dentist, Advanced Auto Parts, and Paychex.
Sonobi, Inc. (New York,
NY — Initial Revenue Stage)
Sonobi is an
advertising technology developer that creates forward-thinking,
data-driven tools and solutions to meet the evolving needs of
demand- and sell-side organizations within the digital media
marketplace. Sonobi helps its clients and strategic partners to
forecast new market opportunity, enhance value delivery to clients,
and create more profitable businesses through integration of
progressive data procurement and user-centric sales management
technologies. The company's primary product is Sonobi Jetstream, a
comprehensive online advertising marketplace platform. Safeguard
deployed $5.4 million in Sonobi in
May 2015 and has a 23% primary
ownership position.
Market Opportunity — Premium online advertising is
anticipated to grow to a $43 billion
market, according to eMarketer, in which programmatic technology
has not been fully applied, Sonobi is well-positioned to develop
this important advertising segment, with strong technology,
synergistic partnerships, a high-quality publisher base and a
growing pipeline.
Operating Highlights — During the third quarter of 2015,
Sonobi continued development of its Sonobi Jetstream platform with
proceeds from a $5.4 million Series A
financing round funded by Safeguard. Sonobi serves a number of
tier-1 publishers including Hearst Magazines Digital Media,
Reader's Digest Association, Scripps,
Bonnier Corp, MailOnline, and Intermarkets. Negotiations are
underway with strategic partners on the buy-side, ahead of the full
release of the Sonobi Jetstream platform.
Spongecell, Inc. (New
York, NY — Expansion Stage)
Spongecell is
a creative technology company that allows brand advertisers to
create personal connections at a global scale. Offering intelligent
data integrations, sophisticated decisioning tools and an easy,
streamlined workflow, Spongecell's Creative Optimization and
Relevance Engine (CORE) allows advertisers, and their creative
agencies, to make smarter creative decisions and build online
campaigns that resonate with customers and respond to whatever the
marketing need is. Safeguard has deployed $14.0 million in Spongecell since January 2012 and has a 23% primary ownership
position.
Market Opportunity — The size of the U.S. Internet
advertising market was approximately $49.5
billion in 2014, with a nine-year compound annual growth
rate of 17%. Spongecell specifically addresses the high-growth
mobile, video, rich media and display sub-markets, which represent
approximately 40% of the total U.S. Internet advertising
market.
Operating Highlights — During the third quarter of 2015,
Spongecell was featured in an AdWeek article on innovative young
advertising companies, along with Spongecell's campaign for Coles,
one of Australia's largest
retailers. The Australian grocery giant is using Spongecell's
programmatic creative to build ads that feature personalized offers
based on the buying preferences of its loyalty club members.
Spongecell launched several features during the quarter, including
product retargeting, which allows advertisers to remarket based on
a consumer's online browsing behavior, and creative
auto-optimization, which allows advertisers to automatically adjust
an ad's creative elements based on ad performance. In addition,
Spongecell made significant additions to its roster of data
partnerships, adding integrations with several major data
management platforms to allow brands to access their first-party
data and make smarter advertising decisions. Spongecell continues
to see significant traction with its personalized creative product,
which allows for real-time updates to ads based on weather, user
location, consumer habits and other parameters, as well as its
HTML5 ad product, which offers interactive features and dynamic
creative functionality in a multiscreen, Flash-free format.
Transactis, Inc. (New
York, NY — Expansion Stage)
Transactis is
a leading provider of electronic billing and payment solutions.
Transactis' cloud-based electronic bill presentment and payment
platform, BillerIQ, is a white-labeled solution that is offered
"as-a-service," enabling businesses to rapidly and securely deliver
electronic bills, invoices and documents as well as accept payments
online, by phone and via mobile device. BillerIQ is an extremely
flexible and scalable platform for businesses ranging from 50 bills
per month to Fortune 50 companies with millions of bills per month,
across a variety of industries including property management,
healthcare, insurance, public sector, utilities and financial
services. The deep functionality of BillerIQ helps companies
improve both their business-to-consumer and business-to-business
payment management, increase collection yields and accelerate cash
flow all while reducing costs. Safeguard deployed $9.5 million in Transactis in August 2014 and has a 25% primary ownership
position.
Market Opportunity — Fewer than 25% of bills are
presented electronically in the U.S. The majority of 1990s-vintage
technology and products in this market are on site at a single
biller and are client-server oriented. The channel-oriented
Transactis model features up-to-date SaaS infrastructure and is
positioned to grow with an EBPP market that is expanding at a
compound annual rate of 16%, according to a 2013 report by
marketing consultant Latente Group.
Operating Highlights — During the third quarter of 2015,
Transactis announced long-term contracts with four of the 50
largest U.S. banks and now serves 12 of the top 50 U.S. banks.
Transactis continues to grow quarterly revenue and user totals at
solid double-digit rates, driven in part by refreshed technology,
expanding reseller and product partnerships, and the continued
paradigm shift to electronic billing and digital payments.
WebLinc, Inc. (Philadelphia, PA — Expansion
Stage)
WebLinc is a commerce platform provider
for fast growing online retailers. WebLinc tailors its commerce
platform to the needs and scale of mid to large retailers by
leveraging extensive experience and success supporting clients'
need for fast growth and system flexibility. By building upon the
latest technologies such as Ruby on Rails and MongoDB, WebLinc's
commerce platform has successfully supported some of the fastest
growing online retailers. The company's clients include Do It Best
Corp., The Mint Julep Boutique, Urban Outfitters' brand Free
People, U.S. Polo Assn., Thomas Scientific, Jeffers Pet, Hello
Kitty and many more. Safeguard deployed $6.0
million in WebLinc in August
2014 and has a 29% primary ownership position.
Market Opportunity — According to comScore, eCommerce
grew at a rate of 13% year-over-year in the first quarter of 2014,
while offline retail was nearly flat, achieving 1% growth from the
year before. As this trend continues, WebLinc is positioned to
continue helping business-to-business and business-to-consumer
companies provide the omnichannel experience that customers now
expect. WebLinc accomplishes this through a highly scalable
platform, which provides full brand control, depth of features and
operational flexibility needed to run the most dynamic retail
operations. WebLinc's early adoption of responsive web design and
expertise developing native mobile apps helps clients maximize
multi-channel revenue and outperform the competition.
Operating Highlights — During the third quarter of 2015,
WebLinc enhanced its digital commerce platform through partnerships
with providers of transactional tax management, customer loyalty
programs, and fraud and risk management services. New clients
include Shiekh Shoes, a West Coast footwear and apparel retailer
that wants to improve online and mobile sales and expand
nationally.
CONFERENCE CALL AND WEBCAST DETAILS
Please
call 10-15 minutes prior to the call to register.
Date: Friday, October 23,
2015
Time: 9:00am EDT
Webcast: www.safeguard.com/results
Live Number: 877-201-0168 // (International) +1
647-788-4901
Replay Number: 855-859-2056 // (International) +1
404-537-3406
Access Code: 42197012
Speakers: President and Chief Executive Officer, Stephen
T. Zarrilli; and Senior Vice President and Chief Financial Officer,
Jeffrey B. McGroarty.
Format: Discussion of third quarter 2015 financial
results followed by Q&A.
Replay will be available through November
23, 2015 at 11:59pm EST. For
more information please contact IR@safeguard.com.
About Safeguard Scientifics
Safeguard Scientifics,
Inc. (NYSE:SFE) has a distinguished track record of fostering
innovation and building market leaders. For six decades, Safeguard
has been providing growth capital and operational support to
entrepreneurs across an evolving spectrum of industries. Today,
Safeguard is focused on two sectors—healthcare and technology. In
these sectors, Safeguard specifically targets early- and
growth-stage companies in advertising technology, digital media,
financial technology, enterprise software, Internet of Things,
devices, diagnostics, digital health and healthcare IT. For more
information, please visit www.safeguard.com or Follow Us on Twitter
@safeguard.
Forward-looking Statements
Except for the
historical information and discussions contained herein, statements
contained in this release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Our forward-looking statements are subject to
risks and uncertainties. The risks and uncertainties that could
cause actual results to differ materially include, among others,
our ability to make good decisions about the deployment of capital,
the fact that our partner companies may vary from period to period,
our substantial capital requirements and absence of liquidity from
our partner company holdings, fluctuations in the market prices of
our publicly traded partner company holdings, competition, our
inability to obtain maximum value for our partner company holdings,
our ability to attract and retain qualified employees, market
valuations in sectors in which our partner companies operate, our
inability to control our partner companies, our need to manage our
assets to avoid registration under the Investment Company Act of
1940, and risks associated with our partner companies, including
the fact that most of our partner companies have a limited history
and a history of operating losses, face intense competition and may
never be profitable, the effect of economic conditions in the
business sectors in which Safeguard's partner companies operate,
and other uncertainties described in our filings with the
Securities and Exchange Commission. Many of these factors are
beyond the Company's ability to predict or control. As a result of
these and other factors, the Company's past financial performance
should not be relied on as an indication of future performance. The
Company does not assume any obligation to update any
forward-looking statements or other information contained in this
press release.
SAFEGUARD CONTACTS:
For Investor Relations
John E. Shave III
Senior Vice President, Investor Relations and Corporate
Communications
610.975.4952
jshave(at)safeguard(dot)com
For Media Relations
Heather R. Hunter
Vice President, Corporate Communications
610.975.4923
hhunter(at)safeguard(dot)com
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
|
$
|
93,468
|
|
|
$
|
137,160
|
|
Other current
assets
|
|
2,011
|
|
|
1,684
|
|
|
Total current
assets
|
|
95,479
|
|
|
138,844
|
|
Ownership interests
in and advances to partner companies
|
|
162,988
|
|
|
154,192
|
|
Loan participations
receivable
|
|
2,640
|
|
|
3,855
|
|
Long-term marketable
securities
|
|
10,705
|
|
|
19,365
|
|
Other
assets
|
|
3,341
|
|
|
2,198
|
|
Total
Assets
|
|
$
|
275,153
|
|
|
$
|
318,454
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Other current
liabilities
|
|
$
|
7,034
|
|
|
$
|
6,557
|
|
|
Total current
liabilities
|
|
7,034
|
|
|
6,557
|
|
Other long-term
liabilities
|
|
3,928
|
|
|
3,507
|
|
Convertible senior
debentures
|
|
51,441
|
|
|
50,563
|
|
Total
equity
|
|
212,750
|
|
|
257,827
|
|
Total Liabilities
and Equity
|
|
$
|
275,153
|
|
|
$
|
318,454
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
Operating
expenses
|
|
$
|
3,962
|
|
$
|
4,177
|
|
$
|
13,596
|
|
$
|
14,485
|
Operating
loss
|
|
(3,962)
|
|
(4,177)
|
|
(13,596)
|
|
(14,485)
|
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
|
704
|
|
(246)
|
|
301
|
|
31,580
|
Interest,
net
|
|
(735)
|
|
(621)
|
|
(1,896)
|
|
(1,801)
|
Equity
loss
|
|
(7,635)
|
|
(8,962)
|
|
(30,062)
|
|
(5,329)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
|
(11,628)
|
|
(14,006)
|
|
(45,253)
|
|
9,965
|
Income tax benefit
(expense)
|
|
—
|
|
—
|
|
—
|
|
—
|
Net income
(loss)
|
|
$
|
(11,628)
|
|
$
|
(14,006)
|
|
$
|
(45,253)
|
|
$
|
9,965
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.56)
|
|
$
|
(0.68)
|
|
$
|
(2.17)
|
|
$
|
0.47
|
Diluted
|
|
$
|
(0.56)
|
|
$
|
(0.68)
|
|
$
|
(2.17)
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing income (loss) per share :
|
|
|
|
|
|
|
|
|
Basic
|
|
20,919
|
|
20,678
|
|
20,892
|
|
21,042
|
Diluted
|
|
20,919
|
|
20,678
|
|
20,892
|
|
21,418
|
Safeguard
Scientifics, Inc.
|
Segment
Results
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
Operating
Loss
|
|
|
|
|
|
|
|
|
Healthcare
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
Technology
|
|
—
|
|
—
|
|
—
|
|
—
|
Total segment
results
|
|
—
|
|
—
|
|
—
|
|
—
|
Other items
(a)
|
|
(3,962)
|
|
(4,177)
|
|
(13,596)
|
|
(14,485)
|
|
|
$
|
(3,962)
|
|
$
|
(4,177)
|
|
$
|
(13,596)
|
|
$
|
(14,485)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
Healthcare
|
|
$
|
(3,712)
|
|
$
|
(4,742)
|
|
$
|
(21,128)
|
|
$
|
33,164
|
Technology
|
|
(2,966)
|
|
(4,109)
|
|
(8,344)
|
|
(6,108)
|
Total segment
results
|
|
(6,678)
|
|
(8,851)
|
|
(29,472)
|
|
27,056
|
Other items
(a)
|
|
(4,950)
|
|
(5,155)
|
|
(15,781)
|
|
(17,091)
|
Net income
(loss)
|
|
$
|
(11,628)
|
|
$
|
(14,006)
|
|
$
|
(45,253)
|
|
$
|
9,965
|
|
|
|
|
|
|
|
|
|
(a) Other items
include corporate expenses, Penn Mezzanine and private equity fund
activity.
|
Safeguard
Scientifics, Inc.
|
|
Partner Company
Financial Data
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Financial Information
|
|
To assist investors
in understanding Safeguard and our 27 partner companies as of
September 30, 2015, we are providing additional financial
information on our partner companies, including the aggregate cost
and carrying value for all of our partner companies and other
holdings. Carrying value of an equity method partner company
represents the original acquisition cost and any follow-on funding,
plus or minus our share of the earnings or losses of each company,
reduced by any impairment charges. The carrying value and
cost data reflect our percentage holdings in the partner companies
and reflect both equity ownership interests in and advances to
those partner companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value
|
|
|
Cost
|
|
Safeguard Carrying
Value and Cost
|
|
|
|
|
|
|
Equity method partner
companies
|
|
|
|
|
|
|
|
$
|
154,134
|
|
|
$
|
269,097
|
|
|
|
Cost method partner
companies
|
|
|
|
|
|
|
|
|
4,574
|
|
|
|
10,035
|
|
Other
holdings
|
|
|
|
|
|
|
|
|
4,280
|
|
|
|
36,712
|
|
|
|
|
|
|
|
|
|
$
|
162,988
|
|
|
$
|
315,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo - http://photos.prnewswire.com/prnh/20150824/260753LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/safeguard-scientifics-announces-third-quarter-2015-financial-results-300165289.html
SOURCE Safeguard Scientifics Inc.