RADNOR, Pa., April 28, 2016 /PRNewswire/ -- Safeguard
Scientifics, Inc. (NYSE: SFE) today announced first quarter 2016
financial results. Safeguard's partner companies achieved
significant developmental milestones.
"Safeguard continues to track steady progress toward our
long-term strategic goal of deploying capital to support the
development of our growing roster of partner companies while
realizing aggregate cash-on-cash returns of at least 2x from a
consistent pace of well-timed exit transactions to drive
shareholder value," said Stephen T. Zarrilli, President and CEO of
Safeguard. "Our recent sale of Putney reinforces our confidence in
and belief that our portfolio of partner companies is ripe with
high-quality opportunities for future M&A and value creation
events."
Subsequent to the first quarter of 2016, Safeguard's partner
company, Putney, was acquired by Dechra Holdings US Inc., a
subsidiary of Dechra Pharmaceuticals Plc (LON:DPH), for
$200 million in cash. Safeguard
received cash proceeds of $58.2
million, which represents an approximate 3.9x cash-on-cash
return and 42% IRR. Safeguard had deployed $14.9 million in Putney since September 2011 and prior to the acquisition had a
28% primary ownership position.
AGGREGATE PARTNER COMPANY REVENUE
In light of the
Putney sale, Safeguard updated aggregate partner company revenue
guidance. For 2016, aggregate partner company revenue is now
projected to be between $435 million and
$450 million, which includes revenue for all partner
companies in which Safeguard had an interest at January 1, 2016, except for Putney. Aggregate
revenue for 2015, 2014 and 2013 was $420
million, $338 million and
$275 million, respectively, for the
same companies.
FIRST QUARTER 2016 FINANCIAL HIGHLIGHTS
- Deployed $23.4 million in
follow-on funding to support growth of nine existing partner
companies.
- Achieved the final $3.3 million
performance milestone, related to the sale of ThingWorx, Inc.
consummated in December 2013,
bringing the total cash-on-cash return to 4.7x.
- Repurchased $5.4 million of
common stock in open market transactions under a $25 million share repurchase authorization. Since
the program's renewed authorization in the third quarter of 2015,
$10.4 million of common stock, or
approximately 728,000 shares, have been repurchased through
March 31, 2016.
For the three months ended March 31,
2016, Safeguard's net loss was $15.5
million, or $0.76 per share,
compared with a net loss of $14.6
million, or $0.70 per share,
for the same quarter of 2015.
SELECT PARTNER COMPANY HIGHLIGHTS
Significant
accomplishments by Safeguard's partner companies during the first
quarter 2016 include:
~ Product Launches / Regulatory Approvals
~
Apprenda announced that it is incorporating Kubernetes,
Google's open-source orchestration system for Docker containers,
for part of its architecture and is joining the highly committed
Kubernetes community.
Beyond launched Text2Hire campaigns, which provide
recruiters with the opportunity to engage with job seekers through
personalized text messages about quality job opportunities.
CloudMine launched its HIPAA-compliant Connected Health
Cloud product, which allows users across the healthcare spectrum to
aggregate and analyze disparate data to improve patient care.
Clutch Holdings deployed several enhancements to its
proprietary customer-marketing platform, including an innovative
event infrastructure and supporting application program interfaces
("APIs"), as well as an architectural upgrade for the platform's
mobile infrastructure.
Hoopla Software continues to expand its open data
platform with new features including Google Sheets integration, an
open data API, and enhanced Salesforce integration.
InfoBionic received 510(k) clearance from the U.S. Food
and Drug Administration ("FDA") for MoMe® Kardia, a
wireless, remote monitoring system designed to aid physicians in
their diagnosis of cardiac arrhythmias in patients with a
demonstrated need for cardiac monitoring. InfoBionic expects to
begin shipping the new generation MoMe® Kardia in the
second quarter of 2016.
MediaMath launched Helix™, a new proprietary data
business unit that represents the investment in data as the fuel
and exhaust of programmatic. Helix leverages global, pooled
transactional data sets coupled with MediaMath's vast data
footprint and buying platform to evolve how marketers leverage data
for programmatic marketing.
Medivo launched CareInsights Dx analytics solutions,
which provide value to healthcare payers by leveraging clinical
diagnostics to identify at-risk patients for care management
programs, HEDIS/Star Initiatives and medical risk adjustment.
Propeller Health launched a 'first-of-its-kind'
commercial partnership with Boehringer Ingelheim Pharmaceuticals, a
global pharmaceutical company and leading provider of inhaled
medications for serious respiratory diseases. This partnership aims
to use digital health tools and services to help people living with
chronic obstructive pulmonary disease ("COPD") and asthma better
manage their disease.
Syapse launched its Syapse Global Partner Program, which
will leverage best-of-breed partners to enhance and accelerate the
implementation of the Syapse Precision Medicine Platform at
healthcare organizations globally. Under the program, Syapse will
build an ecosystem of partners, including system integrators, EHR
vendors, testing labs, specialty pharmacies and health plans, to
further complement the capabilities of Syapse Precision Medicine
Platform.
WebLinc launched its exclusive Solutions Partner Network
to offer mid market retailers access to in-demand solutions and
ecommerce expertise. Launching this network, WebLinc has designed a
repeatable process to help the most innovative commerce agencies,
developers, and strategists implement the WebLinc Commerce
Platform. Demac Media, an award-winning commerce agency based in
Toronto, is the first Solutions
Partner Network member. In addition, WebLinc launched ecommerce
websites for Tahari Arthur S.
Levine, an affordable luxury brand focused on professional
women; Marika.com and Zobha.com for FAM Brands, a family-owned and
operated activewear manufacturer; and RachelRoy.com for
Rachel Roy, an award-winning and
privately-owned women's clothing brand.
Zipnosis expanded its offerings with the launch of
ZipTicket™, a virtual boarding pass that gives patients access to
in-clinic lab tests, part of Zipnosis' focus to streamline
healthcare delivery and improving patient experience through
virtual care.
~ Major Customer Wins / Strategic
Partnerships ~
AppFirst is teaming with FutureProof, a London-based technology consulting firm, to
offer companies analytics that determine the suitability of
applications to migrate and run in the cloud or on other strategic
platforms and services. The partnership leverages AppFirst's
nano-surveillance technology that allows visibility of every
process across a customer's entire IT stack.
Apprenda signed a resale agreement with Cisco to
integrate the Apprenda PaaS with Cisco Metapod and Cisco
Application Centric Infrastructure ("ACI"). Apprenda's integration
with Cisco Metapod and Cisco ACI allows Apprenda to fully deliver
on the hybrid needs of enterprise software development.
Aventura selected top ranked HealthCast as its Single
Sign-On ("SSO") partner. The combined offering brings to market a
comprehensive, modular set of solutions that provide basic level
desktop perimeter security and two-factor authentication with the
ability to leverage SSO and contextual patient awareness for
interoperability at the point-of-care.
Beyond added Advantage Solutions, Allstate, Maxim
Healthcare, Six Flags and UPS to its customer roster.
CloudMine partnered with rapid mobile app development
leader Alpha Software Corporation to scale secure, HIPAA-compliant
mobile app development and deployment for healthcare and life
science organizations.
Clutch Holdings signed new strategic enterprise clients
including 1-800-Radiator, Astro Gaming, Country Outfitter,
Goodwill, Samsonite and Skullcandy. Clutch also expanded its
customer-marketing solutions to existing clients
Harley-Davidson, Pandora Jewelry
and True Religion. Clutch entered into strategic partnerships with
NetSuite, a premier ecommerce solutions provider; Lyons Consulting
Group, a leading ecommerce systems integrator; Retail Control
Systems, a complete retail management software and hardware
solution; and Vantiv, a leading payment processing and technology
provider.
Good Start Genetics is collaborating with Helix, a
consumer genomics company, to develop consumer applications to help
couples better understand their reproductive health. In addition,
Good Start Genetics established a national relationship with Aetna
to serve as an in-network laboratory partner for a variety of its
genetic tests. The agreement, effective June
1, 2016, brings Good Start Genetics' number of in-network
covered lives to over 100 million, arming Good Start Genetics with
the national reach necessary to best inform and improve the health
of millions.
Hoopla Software has signed 150 new customers since
launching its latest platform, continuing robust revenue momentum
during the first quarter of 2016.
MediaMath partnered with Adform, a global digital media
advertising technology company. MediaMath TerminalOne users will
gain access to publishers on the Adform system, profiting from
increased programmatic supply globally alongside the buy and
sell-side tools that Adform offers. In return MediaMath will
provide Adform with global demand for its global programmatic
supply. MediaMath's training and educational arm, The New Marketing
Institute, launched in Asian and Pacific Coasts ("APAC") to arm
companies and their staff with a greater understanding of
technology, including programmatic trading. Lastly, MediaMath was
the first demand-side platform ("DSP") to partner with Integral Ad
Science to leverage its performance matching technology to empower
advertisers with the ability to target viewability thresholds for
its video inventory.
Pneuron won a significant Transaction "Look-back" project
with a Global Bank, supported by a major Audit firm, to improve the
speed, consistency, and productivity of its Investigative staff. In
addition, Pneuron developed, deployed and moved into global
production, 60 complex business intelligence models in record time
at a Top 10 global financial institution.
Propeller Health partnered with Aptar Pharma, a global
drug delivery systems provider. Under the terms of the agreement,
Propeller and Aptar will jointly develop the world's first digital,
connected metered dose inhaler with an integrated sensor and a
novel electronic dose counter. The device is currently available
for licensing and is expected to enter clinical studies later this
year. Propeller Health also announced new commercial partnerships
with Humana, whose employees are participating in the AIR
Louisville program, and with AMC Health, which will use Propeller
to power its care management programs for complex COPD
patients.
Sonobi announced a key partnership with Omnicom Media
Group's Annalect Group to integrate Sonobi's JetstreamTM
platform into OMG's premium ad technologies so organizations can
pre-qualify and purchase audiences directly without financial
intermediaries.
Syapse's Precision Medicine Platform was utilized by The
American Society of Clinical Oncology ("ASCO") to launch and enroll
the first patients in the ASCO's Targeted Agent and Profiling
Utilization Registry ("TAPUR") study. This groundbreaking clinical
trial, which addresses the use of molecularly-targeted cancer drugs
used for indications outside of those approved by the FDA, relies
on Syapse to manage the study workflow and capture structured
clinical data from participating hospital systems.
Trice Medical selected OpenClinica Enterprise, a SaaS
that allows clinical research teams to be more efficient in the
electronic capture and management of clinical data. Trice Medical
selected OpenClinica Enterprise to help manage its clinical trials
in large part because of the system's ease of use and its ability
to scale with the company's needs.
WebLinc expanded its Partner Ensemble platform with the
addition of ChannelAdvisor, a provider of cloud-based ecommerce
solutions for retailers and manufacturers. This strategic
partnership offers WebLinc clients a pre-built integration with
ChannelAdvisor, enabling them to automatically push a single
product data feed into the WebLinc Commerce Platform.
Zipnosis partnered with MultiCare Health System to launch
its MultiCare eCare platform, an online diagnosis and treatment
service for common health conditions.
~ Industry Awards ~
Bridgevine was named one of the 'Top 40 Innovative
Technology Companies in Georgia'
by the Technology Association of Georgia. TAG's Top 40 Awards recognize
Georgia-based technology companies
for their innovation, financial impact, and their efforts at
spreading awareness of Georgia's
technology initiatives throughout the U.S. and globally.
Clutch Holdings was honored as a Strong Performer in The
Forrester Wave™: Customer Loyalty Solutions For Midsize
Organizations report. Clutch and its client Wizard World were also
nominated for the Loyalty 360 CX Awards for premier loyalty program
and top customer experience.
Hoopla Software was recently selected as a 2016 Gold
Stevie Award winner for the category "Incentive Management Solution
– New". The award recognized Hoopla's success in building a
platform that drives the performance of sales and service teams
through an incentive-based platform that combines modern game
mechanics, employee recognition, and motivational communication
tools.
MediaMath earned recognition from major technology
research firm, Gartner, in its Magic Quadrant for Digital Marketing
Hubs, in which MediaMath was named a visionary. MediaMath was
recognized as a leader for its scalable, reliable TerminalOne
Marketing operating system and the open, extensible ecosystem of
data, technology and media suppliers it enables.
Pneuron was recognized by SD Times as a Top Company to
watch in 2016.
Syapse was recognized at the White House Precision
Medicine Initiative Summit for its work with Intermountain
Healthcare to implement and systematize precision medicine. This
event, which included an address by President Barack Obama, showcased the achievements of
pioneers in bringing precision medicine into clinical practice.
Transactis earned "Best Innovation in ACH" for its
BillerIQ platform from the National Automated Clearinghouse
Association and PYMNTS.com. The award is bestowed at Harvard University based on voting by payments
industry peers.
Trice Medical ranked in the top 10% of all exhibitors,
and the top 4% of exhibitors in its category, at the 2016 American
Academy of Orthopedic Surgeons, which had more than 30,000
healthcare professionals in attendance. Trice Medical was
complemented on its use of clear messaging, visually communicating
the value proposition, and providing a easily accessible
environment to show attendees. The AAOS is the largest annual trade
show in the orthopedic space where companies and health care
providers from all over the world convene to become educated on the
latest technology and clinical evidence in the orthopedic
marketplace."
~ Financings and Other Milestones
~
AdvantEdge Healthcare Solutions continues its focus on
organic growth and hired a Senior Vice President of Sales and
Marketing to lead that effort. Additionally, during the first of
2016, AdvantEdge closed over $2.5
million in annualized new business.
Apprenda joined the Cisco® Solution Partner
Program as a Solution Partner. As a member of the Cisco Solution
Partner Program, Apprenda is able to quickly create and deploy
solutions to enhance the capabilities, performance and management
of the network to capture value in the 'Internet of
Everything'.
Good Start Genetics appointed Jeffrey Luber as President, Chief Executive
Officer and member of the board. Previously, Mr. Luber served as
Good Start Genetics' general counsel and head of corporate
development, where he established a number of key relationships and
new business models central to the company's growth in expanding
markets. In addition, Good Start Genetics appointed Marc Jones as Chief Financial Officer. Mr. Jones
has held a number of corporate finance positions in organizations
ranging from Fortune 50 companies to dot-com start-ups.
Medivo announced that Swati
Abbott was elected to the company's board of directors. As
Chief Executive Officer of Blue Health Intelligence (BHI), a
premier health intelligence resource that delivers data-driven
insights about healthcare trends and best practices, Ms. Abbott
oversees efforts to leverage data insights to develop innovative
analytics solutions, including extending BHI's reach to external
audiences, while enhancing BHI's value to Blue Cross and Blue
Shield companies.
Pneuron hired multiple new staff to support its strong
growth, including a new Chief Marketing Officer.
Syapse announced a $25
million Series C funding round led by Ascension Ventures
with participation from Safeguard and Social Capital. Proceeds from
the funding will be used to enhance the Syapse Precision Medicine
Platform, including support for alternative payment models and
expansion to new clinical service lines.
Transactis reported 100% year-over-year growth in 2015
for its BillerIQ platform. Subsequent to the first quarter of 2016,
Transactis raised a $30 million
Series E financing with equal participation from Safeguard and five
of the largest U.S. commercial banks—Capital One, Fifth Third, PNC,
TD and Wells Fargo. To date, Transactis has raised $70 million.
WebLinc acquired Orderbot, a Vancouver-based order management system, to
process ecommerce orders, streamline warehouse and inventory
management in real time, and analyze customer-buying trends.
PARTNER COMPANY HOLDINGS AS OF MARCH
31, 2016
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
|
|
|
|
Stage
|
Sector
|
Acquisition
Year
|
|
Primary
Ownership%
|
|
Carrying
Value
|
|
Cost
|
Healthcare Partner
Companies:
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
AdvantEdge Healthcare
Solutions
|
High
Traction
|
HealthTech
|
2006
|
|
40%
|
|
$4.9
|
|
$16.3
|
|
Aventura
|
Initial
Revenue
|
HealthTech
|
2015
|
|
20%
|
|
4.3
|
|
6.0
|
|
Good Start
Genetics
|
High
Traction
|
MedTech
|
2010
|
|
30%
|
|
-
|
|
12.0
|
|
InfoBionic
|
Development
|
MedTech
|
2014
|
|
40%
|
|
2.8
|
|
10.5
|
|
Medivo
|
Expansion
|
HealthTech
|
2011
|
|
35%
|
|
6.4
|
|
11.6
|
|
meQuilibrium
|
Initial
Revenue
|
HealthTech
|
2015
|
|
32%
|
|
5.0
|
|
6.5
|
|
NovaSom
|
Expansion
|
MedTech
|
2011
|
|
32%
|
|
4.4
|
|
21.6
|
|
Propeller
Health
|
Initial
Revenue
|
HealthTech
|
2014
|
|
25%
|
|
5.9
|
|
9.0
|
|
Putney
|
High
Traction
|
Specialty
Pharma
|
2011
|
|
28%
|
|
3.0
|
|
14.9
|
|
Syapse
|
Initial
Revenue
|
HealthTech
|
2014
|
|
29%
|
|
9.5
|
|
13.3
|
|
Trice
Medical
|
Initial
Revenue
|
MedTech
|
2014
|
|
28%
|
|
3.7
|
|
6.2
|
|
Zipnosis
|
Initial
Revenue
|
HealthTech
|
2015
|
|
26%
|
|
6.8
|
|
7.0
|
|
|
|
|
|
|
|
|
$56.7
|
|
$134.9
|
Technology Partner
Companies:
|
|
|
|
|
|
|
|
|
|
|
AppFirst
|
Initial
Revenue
|
Enterprise
|
2012
|
|
34%
|
|
3.2
|
|
12.6
|
|
Apprenda
|
Initial
Revenue
|
Enterprise
|
2013
|
|
30%
|
|
15.5
|
|
22.1
|
|
Beyond
|
High
Traction
|
Digital
Media
|
2007
|
|
38%
|
|
9.9
|
|
13.5
|
|
Bridgevine
|
High
Traction
|
Enterprise
|
2007
|
|
17%
|
|
4.6
|
|
10.0
|
|
Cask Data
|
Initial
Revenue
|
Enterprise
|
2015
|
|
34%
|
|
10.0
|
|
11.0
|
|
CloudMine
|
Initial
Revenue
|
Enterprise
|
2015
|
|
30%
|
|
3.5
|
|
4.9
|
|
Clutch
Holdings
|
Expansion
|
Digital
Media
|
2013
|
|
39%
|
|
10.0
|
|
14.3
|
|
Full Measure
Education
|
Initial
Revenue
|
Enterprise
|
2015
|
|
36%
|
|
6.8
|
|
8.0
|
|
Hoopla
Software
|
Initial
Revenue
|
Enterprise
|
2011
|
|
26%
|
|
1.0
|
|
4.8
|
|
Lumesis
|
Initial
Revenue
|
Enterprise
|
2012
|
|
44%
|
|
1.8
|
|
5.6
|
|
MediaMath
|
High
Traction
|
Digital
Media
|
2009
|
|
21%
|
|
11.1
|
|
25.5
|
|
Pneuron
|
Initial
Revenue
|
Enterprise
|
2013
|
|
35%
|
|
6.5
|
|
8.5
|
|
QuanticMind
|
Initial
Revenue
|
Digital
Media
|
2015
|
|
24%
|
|
6.3
|
|
7.0
|
|
Sonobi
|
Expansion
|
Digital
Media
|
2015
|
|
23%
|
|
4.6
|
|
5.4
|
|
Spongecell
|
Expansion
|
Digital
Media
|
2012
|
|
23%
|
|
11.5
|
|
16.0
|
|
Transactis
|
Expansion
|
Enterprise
|
2014
|
|
24%
|
|
6.5
|
|
9.5
|
|
WebLinc
|
Expansion
|
Digital
Media
|
2014
|
|
38%
|
|
8.7
|
|
11.0
|
|
|
|
|
|
|
|
|
$121.5
|
|
$189.7
|
Total: Healthcare
+ Technology
|
|
|
|
|
TOTAL:
|
|
$178.2
|
|
$324.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTHCARE
AdvantEdge Healthcare Solutions, Inc. (Warren, NJ)
AdvantEdge Healthcare
Solutions ("AdvantEdge") is a technology-enabled provider of
healthcare revenue cycle and business management solutions that
improve decision-making, maximize financial performance, streamline
operations and mitigate compliance risks for healthcare
providers.
Aventura, Inc. (Denver, CO)
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 treated.
Good Start Genetics, Inc. (Cambridge, MA)
Good Start Genetics
is a commercial-stage molecular genetic information company
transforming the standard of care in reproductive medicine and
family medicine by providing physicians and their patients a suite
of products that provide clinically relevant, insightful and
actionable information in order to promote successful pregnancies
and healthy families.
InfoBionic, Inc. (Lowell,
MA)
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.
Medivo, Inc. (New York,
NY)
Medivo unlocks the power of clinical
diagnostics to improve health. Medivo uses advanced analytics and
proprietary disease algorithms to provide unique targeting
intelligence for life science companies; commercial effectiveness
solutions for diagnostic companies; and quality improvement and
risk management insights for payers. 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.
meQuilibrium, Inc. (Boston, MA)
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.
NovaSom, Inc. (Glen
Burnie, MD)
NovaSom is a leader in obstructive
sleep apnea home testing with the AccuSom® home sleep
test, a comprehensively supported home sleep test that provides
continuous patient support and next-day test results and
interpretation for health care professionals.
Propeller Health, Inc. (Madison, WI)
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.
Syapse, Inc. (Palo Alto,
CA)
Syapse drives healthcare transformation
through precision medicine, enabling provider systems to improve
clinical outcomes, streamline operations, and shift to new payment
models. Syapse Precision Medicine Platform is a comprehensive
software suite used by leading health systems to support the
clinical implementation of precision medicine in oncology and other
service lines, enabling clinical and genomic data integration,
decision support, care coordination, and quality improvement at
point of care.
Trice MedicalTM (King of Prussia, PA)
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.
Zipnosis, Inc. (Minneapolis, MN)
Zipnosis guides
health systems through clinical, marketing, compliance and
operations workflows, and guarantees launch of their virtual care
programs in just 60 days. Zipnosis' white-labeled software
integrates with a health system's electronic medical record and
patient portal, and allows health systems to serve both existing
and new patients.
TECHNOLOGY
AppFirst, Inc. (New York,
NY)
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.
Apprenda, Inc. (Troy,
NY)
Apprenda is a leading enterprise 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.
Beyond.com, Inc. (King of
Prussia, PA)
Beyond.com ("Beyond"), The Career
NetworkTM, 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.
Bridgevine, Inc. (Atlanta, GA)
Bridgevine is the home
of customer acquisition. The company powers digital solutions where
product and service supply from the leading brands meets consumer
and small/medium business demand. More than 2.8 million households
per month shop through The Bridgevine Marketplace via a blend of
direct marketing and proprietary distribution channels.
Cask Data, Inc. (Palo
Alto, CA)
Cask accelerates the development and
deployment of production Hadoop applications. Hadoop is the
industry standard open source software framework for large-scale
data applications.
CloudMine, Inc. (Philadelphia, PA)
CloudMine's
Connected Health Cloud integrates the vast world of health
data—empowering payers, providers, and pharmaceutical organizations
to mobilize patient information by building robust applications and
driving actionable insights. Through support for machine learning,
data science, and predictive analytics, CloudMine customers are
improving the quality of care by leveraging cognitive data analysis
to determine patient interactions.
Clutch Holdings, Inc. (Ambler, PA)
Clutch helps brands
identify, understand and engage their customers to earn their
genuine loyalty. Clutch's advanced customer marketing platform and
expert customer strategy is specifically designed to address the
sophisticated customer challenges of premier brands.
Full Measure Education, Inc. (Washington, DC)
Full Measure
Education designs next-generation, mobile-first technologies for
community colleges nationwide. Full Measure Education's Guided
Pathways Management system offers post-secondary institutions an
easy, holistic approach for personalizing every student's path to
success. The Full Measure Education team is composed of seasoned
educators and technologists prepared to work side-by-side with your
leadership and academic community to provide unprecedented
capabilities for defining, guiding and monitoring success.
Hoopla Software, Inc. (San Jose, CA)
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.
Lumesis, Inc. (Stamford,
CT)
Lumesis is focused on providing regulatory,
business efficiency and analytical solutions to the municipal bond
marketplace. Lumesis is dedicated to serving the municipal market
with industry-leading solutions that meet the needs of an evolving
regulatory environment. Today, the company's DIVER platform helps
hundreds of firms with over 43,000 users efficiently meet credit,
regulatory and risk needs.
MediaMath, Inc. (New
York, NY)
MediaMath is a global technology
company that is leading the movement to revolutionize traditional
marketing and drive transformative results for marketers through
its TerminalOne Marketing Operating System®. A pioneer
in the industry, introducing the first Demand-Side Platform with
the company's founding in 2007, 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, transparently
across the enterprise.
Pneuron Corporation (Woburn, MA)
Pneuron's leading
business orchestration software enables organizations to flexibly
leverage their existing applications, infrastructure, services and
data to create and deliver actionable intelligence—in half the time
and cost. Through Pneuron's innovative, distributed approach,
companies are no longer faced with the complex centralization and
integration requirements of traditional approaches.
QuanticMind, Inc. (Redwood City, CA)
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.
Sonobi, Inc. (New York,
NY)
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 opportunities, enhance
value delivery to clients, and create more profitable businesses
through integration of progressive data procurement and
user-centric sales management technologies.
Spongecell, Inc. (New
York, NY)
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 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.
Transactis, Inc. (New
York, NY)
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.
WebLinc, Inc. (Philadelphia, PA)
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.
CONFERENCE CALL AND WEBCAST DETAILS
Please call
10-15 minutes prior to the call to register.
Date: Thursday, April
28, 2016
Time: 9:00am EDT
Webcast: www.safeguard.com/results
Live
Number: 877-201-0168 // (International)
647-788-4901
Replay Number: 855-859-2056
// (International) 404-537-3406
Access
Code: 80401722
Speakers: President
and Chief Executive Officer, Stephen T. Zarrilli; and Senior
Vice President and Chief Financial Officer, Jeffrey B.
McGroarty.
Format: Discussion of
first quarter 2016 financial results followed by Q&A.
Replay will be available through May 28,
2016 at 11:59pm EDT. 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 more than 60 years,
Safeguard has been providing growth capital and operational support
to entrepreneurs across an evolving spectrum of industries. Today,
Safeguard targets early- and growth-stage companies in advertising
technology, digital media, financial technology, enterprise
software, 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)
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
|
$
|
39,099
|
|
|
$
|
63,858
|
|
Other current
assets
|
|
5,159
|
|
|
5,810
|
|
|
Total current
assets
|
|
44,258
|
|
|
69,668
|
|
Ownership interests
in and advances to partner companies
|
|
182,851
|
|
|
171,601
|
|
Loan participations
receivable
|
|
2,627
|
|
|
2,649
|
|
Long-term marketable
securities
|
|
3,250
|
|
|
9,743
|
|
Other
assets
|
|
3,124
|
|
|
3,182
|
|
Total
Assets
|
|
$
|
236,110
|
|
|
$
|
256,843
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Other current
liabilities
|
|
$
|
5,283
|
|
|
$
|
6,417
|
|
|
Total current
liabilities
|
|
5,283
|
|
|
6,417
|
|
Other long-term
liabilities
|
|
4,030
|
|
|
3,965
|
|
Convertible senior
debentures
|
|
51,344
|
|
|
50,956
|
|
Total
equity
|
|
175,453
|
|
|
195,505
|
|
Total Liabilities
and Equity
|
|
$
|
236,110
|
|
|
$
|
256,843
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2016
|
|
2015
|
|
|
|
Operating
expenses
|
|
$
|
5,228
|
|
|
$
|
4,880
|
|
Operating
loss
|
|
(5,228)
|
|
|
(4,880)
|
|
|
|
|
|
|
Other income (loss),
net
|
|
—
|
|
|
(388)
|
|
Interest,
net
|
|
(729)
|
|
|
(673)
|
|
Equity
loss
|
|
(9,495)
|
|
|
(8,662)
|
|
|
|
|
|
|
Net loss before
income taxes
|
|
(15,452)
|
|
|
(14,603)
|
|
Income tax benefit
(expense)
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
(15,452)
|
|
|
$
|
(14,603)
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
Basic
|
|
$
|
(0.76)
|
|
|
$
|
(0.70)
|
|
Diluted
|
|
$
|
(0.76)
|
|
|
$
|
(0.70)
|
|
|
|
|
|
|
Weighted average
shares used in computing loss per share:
|
|
|
|
|
Basic
|
|
20,448
|
|
|
20,861
|
|
Diluted
|
|
20,448
|
|
|
20,861
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Segment
Results
|
(in
thousands)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2016
|
|
2015
|
|
|
|
Operating
Loss
|
|
|
|
|
Healthcare
|
|
$
|
—
|
|
|
$
|
—
|
|
Technology
|
|
—
|
|
|
—
|
|
Total segment
results
|
|
—
|
|
|
—
|
|
Other items
(a)
|
|
(5,228)
|
|
|
(4,880)
|
|
|
|
$
|
(5,228)
|
|
|
$
|
(4,880)
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
Healthcare
|
|
$
|
(4,996)
|
|
|
$
|
(4,281)
|
|
Technology
|
|
(4,500)
|
|
|
(4,772)
|
|
Total segment
results
|
|
(9,496)
|
|
|
(9,053)
|
|
Other items
(a)
|
|
(5,956)
|
|
|
(5,550)
|
|
Net loss
|
|
$
|
(15,452)
|
|
|
$
|
(14,603)
|
|
|
|
|
|
|
(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 29 partner companies as of March
31, 2016, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
Value
|
|
Cost
|
|
|
Safeguard Carrying
Value and Cost
|
|
|
|
|
|
Equity method partner
companies
|
|
|
|
|
|
|
|
$
|
173,606
|
|
|
$
|
314,817
|
|
|
|
Cost method partner
companies
|
|
|
|
|
|
|
|
4,574
|
|
|
10,035
|
|
|
|
Other
holdings
|
|
|
|
|
|
|
|
4,671
|
|
|
37,347
|
|
|
|
|
|
|
|
|
|
|
|
$
|
182,851
|
|
|
$
|
362,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/safeguard-scientifics-announces-first-quarter-2016-financial-results-300258968.html
SOURCE Safeguard Scientifics Inc.