RADNOR, Pa., July 28, 2016 /PRNewswire/ -- Safeguard
Scientifics, Inc. (NYSE: SFE) today announced financial results for
the three- and six-months ended June 30,
2016, as well as continued achievement of developmental
milestones by Safeguard's 27 current partner companies.
For the quarter ended June 30,
2016, Safeguard's net income was $39.0 million, or $1.92 per share, compared with a net loss of
$19.0 million, or $0.91 per share, for the same quarter of 2015.
For the six months ended June 30,
2016, Safeguard's net income was $23.5 million, or $1.15 per share, compared with a net loss of
$33.6 million, or $1.61 per share, for the same period of 2015.
"As we enter the second half of 2016, we remain sharply focused
on our core, value-creating strategies to deploy capital and
provide operational support services to early- and growth-stage
companies in targeted vertical markets, and to realize aggregate
cash-on-cash returns of at least 2x on the $301.2 million deployed in our 27 current partner
companies," said Stephen T. Zarrilli, President and CEO at
Safeguard. "We are not deterred by the ongoing political and
economic uncertainties that have roiled global capital markets
year-to-date. Instead, we believe that the year's turbulence may
generate opportunities for Safeguard as we work to expand our
roster of partner companies, improve the pace of exit transactions,
and evaluate potential new segments of the technology markets to
deploy growth capital."
SECOND QUARTER 2016 Financial Highlights
- Generated cash proceeds of $58.2
million from the $200 million
sale of Putney to Dechra Holdings US Inc., a subsidiary of Dechra
Pharmaceuticals Plc. This represents a 3.9x cash-on-cash return and
42% IRR for Safeguard. Safeguard had deployed $14.9 million in Putney since September 2011 and prior to the acquisition had a
28% primary ownership position. Safeguard recognized a $55 million book gain on the sale.
- Realized $5.0 million in cash
proceeds from the sale of Safeguard's ownership stake in partner
company Bridgevine. Safeguard had deployed $10.0 million in Bridgevine since 2007.
- Recognized an impairment charge of $1.7
million related to partner company AppFirst, in which
Safeguard had deployed $12.8 million
since December 2012 and had a 34%
primary ownership position. During the second quarter, AppFirst
ceased operations and sold its technology, returning $0.9 million of cash to Safeguard.
- Deployed $5.5 million of new
capital into San Francisco-based
Aktana, a pioneer in data-driven decision support for global life
science sales teams, as part of a $17.5
million financing. Safeguard has a 23% primary ownership
position.
- Deployed $8.8 million in
follow-on funding to support the growth of six existing partner
companies.
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2016 has been revised to
reflect the sale of partner companies Putney and Bridgevine and
AppFirst's cessation of operations, and is now expected to be
between $380 million and $400
million, which includes revenue for all partner companies in
which Safeguard had an interest at January
1, 2016, except Putney, Bridgevine and AppFirst. Aggregate
revenue reflects revenue on a net basis. Revenue data for certain
partner companies pertains to periods prior to Safeguard's
involvement with those companies and is based solely on information
provided to Safeguard by those companies.
SELECT PARTNER COMPANY HIGHLIGHTS
Significant accomplishments by Safeguard's partner companies
during the second quarter 2016 include:
~ Product Launches / Regulatory Approvals
~
CloudMine released an iOS software development kit to
provide HIPAA compliant, encrypted and secure storage for data
generated by Apple's CareKit framework.
Good Start Genetics announced the national rollout of an
advanced version of EmbryVu, the next-generation embryo screening
test, based on its proprietary sequencing platform and technology
licensed from Johns Hopkins University,
and will be presenting three poster presentations and three
abstracts at the upcoming ASRM and ASHG conferences, respectively,
in October.
Hoopla Software announced several new major features
including integrations with Slack, Google Sheets and Zapier, and
support for the Amazon Fire TV stick. With these new releases,
Hoopla has extended the Hoopla TV platform in order to motivate,
engage, and align employees for customers around the world.
MediaMath and TruSignal have partnered to enhance
ShopStyle, a digital shopping platform that converts potential
customers into buyers at lower costs per order. MediaMath used
TruSignal's predictive data scores to drive a 200% increase in
conversions at 60% lower cost per order over a 30-day period.
In addition, PushSpring and MediaMath teamed up to integrate
PushSpring's proprietary mobile app data in the user interface for
MediaMath's clients. Lastly, MediaMath is participating in an
anti-fraud certification program, "Certified Against Fraud" with
the Trustworthy Accountability Group (TAG).
Pneuron introduced its Pneuron 2.0 platform for
decentralizing and accelerating enterprise data management and
analysis. Version 2.0 features a redesigned user interface,
larger library of design components, and enhanced enterprise
security configurations.
Propeller Health and AMC Health, a provider of remote
patient monitoring and engagement services, formally launched a
previously announced nationwide initiative to help patients with
Chronic Obstructive Pulmonary Disease and asthma improve disease
management and reduce symptoms and hospital visits. The multiyear
partnership brings Propeller Health's commercial programs in U.S.
healthcare systems and other organizations to more than 40.
Physicians at Dignity Health published results of a randomized
controlled trial using Propeller Health in the Journal of
Allergy and Clinical Immunology: In Practice, demonstrating
that the use of the Propeller digital health technology could
improve asthma control.
~ Major Customer Wins / Strategic
Partnerships ~
Beyond added Johns Hopkins Health System, Time Warner
Cable, Charles Schwab, ConAgra Foods
and Sysco Corporation to its customer roster.
Clutch Holdings and Rocky
Brands are now teaming up on four separate loyalty programs
for Rocky's diverse brand lineup of work and western boots, and
luxury sneakers. Additionally, Clutch has finalized a new strategic
partnership with NetSuite, resulting in agreements with retailers
Toad & Co. and MZ Wallace.
MediaMath launched its training arm, the New Marketing
Institute, in Asia Pacific to help
aspiring marketers and professionals to understand programmatic
techniques and technologies. MediaMath integrated with a new
partner, C1X, to enable access to highly privileged supply on both
Open RTB and through private marketplace deals. MediaMath also
announced that Zayo Group Holdings, Inc. will provide colocation
and wavelength connectivity that MediaMath clients require for
processing large volumes of data and real-time bidding with low
latency.
meQuilibrium established partnerships with two of the
large national healthcare plans. In addition, meQuilibrium added
two Fortune 50 companies as clients, as well as expanded
relationships with existing clients.
Propeller Health has new partnerships with 246,000-member
Molina Healthcare of New Mexico
for asthma control, and with Vectura Group plc in the United Kingdom to develop digitally connected
inhalers using Vectura's dry powder technology.
Sonobi announced that its JetStream platform has been
incorporated in the new Publisher Addressable Marketplaces premium
programmatic advertising solution launched by Merkle, a global
data-driven, technology enabled performance marketing agency and
the largest independent agency in the U.S. for CRM, digital and
search. The PAM solution enables people-based targeting and
measurement across premium publisher audiences and inventory.
Syapse has launched the Oncology Precision Network (OPeN)
in collaboration with its customers Intermountain Healthcare,
Providence Health & Services, and Stanford Cancer Institute.
OPeN will share cancer genomics data from these health systems
through the Syapse software platform, rapidly bringing the most
promising treatment insights to cancer patients and physicians.
Syapse and OPeN continue to garner attention for their work to
advance cancer care through data sharing and increased access to
clinical trials. U.S. Vice President Joe
Biden highlighted Syapse and OPeN in his remarks at the
Cancer Moonshot Summit in Washington,
D.C. His remarks were broadcast by C-SPAN and widely
reported in national media. OPeN comprises physicians and patients
across 11 states, 70 hospitals and 800 clinics, and is projected to
help 50,000 new patients per year when fully implemented. In
addition to the launch of OPeN, Syapse launched precision oncology
programs with two new customers, Henry Ford Health System, a leader
in addressing the needs of underserved patients in the great lakes
region, and Catholic Health Initiatives, the nation's
second-largest nonprofit health system.
WebLinc created a commerce platform for women's online
clothing retailer Rachel Roy. In
addition, WebLinc relaunched an ecommerce website for existing
client Sanrio and launched new ecommerce sites for new clients
Costume SuperCenter and Skye's the Limit for Alfred Dunner.
Zipnosis added two health systems to its roster of
clients. First is Lakewood Health System, located in Minnesota, which is an independent rural
healthcare system that operates a hospital and primary clinics in
five Minnesota communities.
Zipnosis developed Lakewood's
Click Care platform. Second is St.
Vincent's Medical Center, located in Connecticut, which is a member of Ascension,
the largest non-profit health system in the U.S. and the world's
largest Catholic health system. Zipnosis developed St. Vincent's MYvirtualcare.com for online
diagnosis and treatment.
~ Industry Awards ~
Aktana was recognized as a Cool Vendor in Gartner's 2016
report "Cool Vendors in Life Science."
Cask Data was named a 2016 Cool Vendor in a Gartner
report on Pervasive Integration for its open source Cask Data
Application Platform (CDAP) and Cask Hydrator. Vendors selected for
the "Cool Vendor" report are innovative, impactful and intriguing.
Cask has also been certified as a great workplace by the
independent analysts at Great Place to Work®; the
esteemed certification recognizes Cask for excellence in employee
ratings.
CloudMine earned three prestigious awards during the
quarter. Its Connected Health Cloud won a 2016 SIIA CODiE Award as
Best Information Service Delivered as a Mobile App. The CloudMine
Connected Health Cloud enables healthcare organizations and
pharmaceutical companies to connect vast amounts of patient data to
promote patient engagement and improve treatment adherence and
patient outcomes. The company was recognized as an IDC Innovator
because its technology balances lower-cost mobile app development
platform subscription fees with development of specialized APIs
relevant to regulated industries. Gartner named CloudMine a
Cool Vendor in mobile app development for its Connected Health
Cloud.
MediaMath was ranked No. 2 on Business Insider's list of
the "37 hottest pre-IPO ad tech startups of 2016." Business
Insider says the market for privately held ad tech companies is
"bustling," and that "a number of public companies have eyed up
MediaMath for a potential acquisition, but it sounds as though the
company wants to remain independent for now." In other news,
CEO Joe Zawadzki was named 2016 Data
Innovator of the Year for leadership in data-driven marketing by
the Data Innovators Group and the Direct Marketing Club of
New York. Fortune magazine listed
MediaMath among the 100 Best Workplaces for Millennials, and one of
the 50 Best Places to Work for new college graduates.
Propeller Health received the American Telemedicine
Association 2016 President's Award for Innovation in Remote
Healthcare.
Spongecell's dynamic video campaign for the Tennessee
Department of Tourism Development was awarded both a Silver Lion in
Creative Data Enhancement and a Bronze Lion in Data Storytelling at
Cannes Lions 2016, the preeminent international festival of
creativity. The Tennessee Department of Tourism Development saw a
46% increase in Web traffic and 12,000 trip itineraries.
Trice Medical won MedCity News' 'Best of INVEST' award in
the medical device category.
WebLinc co-founder and CEO, Darren Hill, was a finalist for the Ernst &
Young Entrepreneur Of The Year™ 2016 Award in the Greater
Philadelphia Region. WebLinc was named a finalist for the 2016 SIIA
CODiE Award for Best eCommerce Solution. Client Zobha's redesigned
interactive commerce platform was recognized as a Top Innovator by
Apparel Magazine.
Zipnosis was one of four companies recognized as an IDC
Innovator in U.S. virtual care for 2016 among companies with less
than $50 million in revenue. CEO
Jonathan Pearce was listed among the
100 leaders transforming healthcare through technology by Hot
Topics, a prominent tech news publisher. Zipnosis was also listed
among Minnesota's 2016 'Best
Places to Work' by the Minneapolis/St. Paul Business Journal.
~ Financings and Other Milestones
~
Aktana was added to the roster of Safeguard partner
companies through a Safeguard-led $17.5
million financing. Safeguard deployed an initial
$5.5 million for a 23% primary
ownership position. Proceeds will be used to continue product
development and international expansion. Aktana has offices in
San Francisco, New York City and Tokyo, and plans to expand in China and Europe.
Apprenda acquired Kismatic to accelerate the company's
delivery of cloud-native enterprise applications using Kubernetes
technology. The Kismatic CEO will serve as Apprenda's corporate
CTO.
Aventura was issued a patent (No. 9,367,512) by the U.S.
Patent and Trademark Office relating to dynamic updating of virtual
resources and applications based on location change, which can
solve the problem of roaming sessions on virtualized desktops and
applications. In addition, technology innovator Patrick Flynn, former CTO of Phytel, which was
acquired by IBM in 2015, was appointed COO.
Cask Data reported that Ericsson has made a strategic
minority investment that is expected to accelerate delivery of
Cask's Apache Hadoop-based services for managing complex data
analytics to a range of industries. Cask has spent years working
with customers to give them the ability to drive efficiencies at
every step in the big data lifecycle, to expand access to data
through self-service, and to provide portability of services across
different production environments.
Full Measure Education raised $6
million in equity capital in a Series B financing led by
Safeguard. Year to date, Full Measure reported that its client base
has more than doubled and that proceeds from the financing will be
used to support continued growth. The company expanded its
leadership team with the appointment of former Blackboard Inc.
executive Tess Kelly-Frazier as
executive vice president of strategy and operations.
meQuilibrium appointed veteran sales executive
Scott Fillenworth to the position of
senior vice president for sales and business development.
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.
Trice Medical appointed William
Hawkins to the company's board of directors. The former
Chairman and CEO of Medtronic, one of the world's largest and most
innovative medical technology companies, Mr. Hawkins brings more
than 30 years of experience in healthcare delivery, product
development, distribution and leadership to Trice Medical. Mr.
Hawkins has a consistent track record of driving value-creating
innovation that has revolutionized medical care and strengthened
healthcare systems globally. He has played a leadership role in
Washington, D.C. on both
healthcare policy and with matters involving the FDA.
PARTNER COMPANY HOLDINGS AS OF JUNE
30, 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%
|
|
$5.3
|
|
$16.3
|
|
|
|
Aktana
|
Initial
Revenue
|
HealthTech
|
2016
|
|
23%
|
|
5.5
|
|
5.5
|
|
|
|
Aventura
|
Initial
Revenue
|
HealthTech
|
2015
|
|
20%
|
|
4.0
|
|
6.0
|
|
|
|
Good Start
Genetics
|
High
Traction
|
MedTech
|
2010
|
|
30%
|
|
-
|
|
13.8
|
|
|
|
InfoBionic
|
Development
|
MedTech
|
2014
|
|
41%
|
|
2.5
|
|
11.5
|
|
|
|
Medivo
|
Expansion
|
HealthTech
|
2011
|
|
35%
|
|
6.0
|
|
11.6
|
|
|
|
meQuilibrium
|
Initial
Revenue
|
HealthTech
|
2015
|
|
32%
|
|
4.7
|
|
6.5
|
|
|
|
NovaSom
|
Expansion
|
MedTech
|
2011
|
|
32%
|
|
4.0
|
|
22.1
|
|
|
|
Propeller
Health
|
Initial
Revenue
|
HealthTech
|
2014
|
|
25%
|
|
5.3
|
|
9.0
|
|
|
|
Syapse
|
Initial
Revenue
|
HealthTech
|
2014
|
|
29%
|
|
8.6
|
|
13.3
|
|
|
|
Trice
Medical
|
Initial
Revenue
|
MedTech
|
2014
|
|
28%
|
|
3.1
|
|
6.2
|
|
|
|
Zipnosis
|
Initial
Revenue
|
HealthTech
|
2015
|
|
26%
|
|
6.5
|
|
7.0
|
|
|
|
|
|
|
|
|
|
|
$55.5
|
|
$128.8
|
|
Technology Partner
Companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
Apprenda
|
Initial
Revenue
|
Enterprise
|
2013
|
|
30%
|
|
14.3
|
|
22.1
|
|
|
|
Beyond
|
High
Traction
|
Digital
Media
|
2007
|
|
38%
|
|
15.0
|
|
13.5
|
|
|
|
Cask Data
|
Initial
Revenue
|
Enterprise
|
2015
|
|
34%
|
|
9.1
|
|
11.0
|
|
|
|
CloudMine
|
Initial
Revenue
|
Enterprise
|
2015
|
|
30%
|
|
3.1
|
|
4.9
|
|
|
|
Clutch
Holdings
|
Expansion
|
Digital
Media
|
2013
|
|
39%
|
|
9.3
|
|
14.3
|
|
|
|
Full Measure
Education
|
Initial
Revenue
|
Enterprise
|
2015
|
|
36%
|
|
6.4
|
|
8.0
|
|
|
|
Hoopla
Software
|
Initial
Revenue
|
Enterprise
|
2011
|
|
26%
|
|
0.5
|
|
4.8
|
|
|
|
Lumesis
|
Initial
Revenue
|
Enterprise
|
2012
|
|
44%
|
|
2.0
|
|
5.9
|
|
|
|
MediaMath
|
High
Traction
|
Digital
Media
|
2009
|
|
21%
|
|
9.2
|
|
25.5
|
|
|
|
Pneuron
|
Initial
Revenue
|
Enterprise
|
2013
|
|
35%
|
|
6.2
|
|
8.5
|
|
|
|
QuanticMind
|
Initial
Revenue
|
Digital
Media
|
2015
|
|
24%
|
|
6.0
|
|
7.0
|
|
|
|
Sonobi
|
Expansion
|
Digital
Media
|
2015
|
|
23%
|
|
4.2
|
|
5.4
|
|
|
|
Spongecell
|
Expansion
|
Digital
Media
|
2012
|
|
23%
|
|
11.0
|
|
16.0
|
|
|
|
Transactis
|
Expansion
|
Enterprise
|
2014
|
|
24%
|
|
12.0
|
|
14.5
|
|
|
|
WebLinc
|
Expansion
|
Digital
Media
|
2014
|
|
38%
|
|
8.1
|
|
11.0
|
|
|
|
|
|
|
|
|
|
|
$116.4
|
|
$172.4
|
|
Total: Healthcare
+ Technology
|
|
|
|
|
TOTAL:
|
|
$171.9
|
|
$301.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Aktana, Inc. (San
Francisco, CA)
Aktana is a pioneer in decision
support for global life science sales teams, currently improving
the commercial effectiveness of seven of the world's top 15
pharmaceutical companies. The company's data-fueled
suggestions and insights are delivered within a sales
professional's existing CRM workflow, serving as a critical ally in
data leverage and better decision-making.
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 an information solutions company delivering best-in-class
genetics offerings to growing families. Using advanced clinical
sequencing, proprietary methods and information tailored to the
individual, Good Start Genetics' suite of offerings arms clinicians
and patients with insightful and actionable information to promote
successful pregnancies and help build 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 Medical™ (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 partners
with health systems nationwide to provide a white-labeled virtual
care platform, offering patients convenient access to care while
improving clinician efficiency. Zipnosis guides health systems
through the virtual care journey and guarantees launch of their
virtual care platform in just 60 days. Patients are treated through
video, telephone, and adaptive online interviews—with available
pharmacy and lab integration.
TECHNOLOGY
Apprenda, Inc. (Troy,
NY)
Apprenda is a leading enterprise cloud
platform 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, 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.
Cask Data, Inc. (Palo
Alto, CA)
Cask provides the de-factor, open
source big data application and integration platform that lets
developers and data scientists accelerate the time to build, deploy
and operate data-centric applications and data lakes. Cask also
enables IT organizations to implement well-governed
data-as-a-service environments designed to quickly unlock the value
of data.
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.
Hoopla Software, Inc. (San Jose, CA)
Hoopla helps
businesses of all sizes through its performance-broadcasting
platform. Hoopla's live broadcasts of key accomplishments, metrics,
leaderboards and announcements empower companies to foster a
culture of connectedness, transparency and recognition. Customers
including GM Financial, Marketo and Zillow use Hoopla to celebrate
achievements and keep employees energized, engaged and
motivated.
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's Creative Management
Platform helps advertisers enhance the power of digital brand
creative by leveraging customer data and brand content to
personalize ads for maximum relevance. Spongecell's Creative
Optimization and Relevance Engine (CORE) combines robust data
integrations with powerful optimization and decisioning tools.
Spongecell's streamlined workflow, including its Smart Canvas,
empowers advertisers to make smarter creative decisions and build
powerful campaigns that drive performance and ROI.
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 the
commerce and operations management platform 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, July 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:
|
38167317
|
|
|
|
|
Speakers:
|
President and Chief
Executive Officer, Stephen T. Zarrilli; and Senior Vice
President and Chief Financial Officer, Jeffrey B.
McGroarty.
|
|
|
|
|
Format:
|
Discussion of second
quarter 2016 financial results followed by Q&A.
|
Replay will be available through August
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)
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
|
$
|
80,693
|
|
|
$
|
63,858
|
|
Other current
assets
|
|
2,345
|
|
|
5,810
|
|
|
Total current
assets
|
|
83,038
|
|
|
69,668
|
|
Ownership interests
in and advances to partner companies
|
|
176,059
|
|
|
171,601
|
|
Loan participations
receivable
|
|
2,845
|
|
|
2,649
|
|
Long-term marketable
securities
|
|
10,680
|
|
|
9,743
|
|
Other
assets
|
|
3,047
|
|
|
3,182
|
|
Total
Assets
|
|
$
|
275,669
|
|
|
$
|
256,843
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Other current
liabilities
|
|
$
|
5,261
|
|
|
$
|
6,417
|
|
|
Total current
liabilities
|
|
5,261
|
|
|
6,417
|
|
Other long-term
liabilities
|
|
4,010
|
|
|
3,965
|
|
Convertible senior
debentures
|
|
51,740
|
|
|
50,956
|
|
Total
equity
|
|
214,658
|
|
|
195,505
|
|
Total Liabilities
and Equity
|
|
$
|
275,669
|
|
|
$
|
256,843
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
Operating
expenses
|
|
$
|
4,849
|
|
|
$
|
4,754
|
|
|
$
|
10,077
|
|
|
$
|
9,634
|
|
Operating
loss
|
|
(4,849)
|
|
|
(4,754)
|
|
|
(10,077)
|
|
|
(9,634)
|
|
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
|
659
|
|
|
(15)
|
|
|
659
|
|
|
(403)
|
|
Interest,
net
|
|
(628)
|
|
|
(488)
|
|
|
(1,357)
|
|
|
(1,161)
|
|
Equity income
(loss)
|
|
43,794
|
|
|
(13,765)
|
|
|
34,299
|
|
|
(22,427)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
|
38,976
|
|
|
(19,022)
|
|
|
23,524
|
|
|
(33,625)
|
|
Income tax benefit
(expense)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
(loss)
|
|
$
|
38,976
|
|
|
$
|
(19,022)
|
|
|
$
|
23,524
|
|
|
$
|
(33,625)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.92
|
|
|
$
|
(0.91)
|
|
|
$
|
1.15
|
|
|
$
|
(1.61)
|
|
Diluted
|
|
$
|
1.70
|
|
|
$
|
(0.91)
|
|
|
$
|
1.09
|
|
|
$
|
(1.61)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing income (loss) per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
20,333
|
|
|
20,895
|
|
|
20,391
|
|
|
20,878
|
|
Diluted
|
|
23,539
|
|
|
20,895
|
|
|
23,602
|
|
|
20,878
|
|
|
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Segment
Results
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
Operating
Loss
|
|
|
|
|
|
|
|
|
Healthcare
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Technology
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total segment
results
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other items
(a)
|
|
(4,849)
|
|
|
(4,754)
|
|
|
(10,077)
|
|
|
(9,634)
|
|
|
|
$
|
(4,849)
|
|
|
$
|
(4,754)
|
|
|
$
|
(10,077)
|
|
|
$
|
(9,634)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
Healthcare
|
|
$
|
48,184
|
|
|
$
|
(13,135)
|
|
|
$
|
43,188
|
|
|
$
|
(17,416)
|
|
Technology
|
|
(3,677)
|
|
|
(606)
|
|
|
(8,177)
|
|
|
(5,378)
|
|
Total segment
results
|
|
44,507
|
|
|
(13,741)
|
|
|
35,011
|
|
|
(22,794)
|
|
Other items
(a)
|
|
(5,531)
|
|
|
(5,281)
|
|
|
(11,487)
|
|
|
(10,831)
|
|
Net income
(loss)
|
|
$
|
38,976
|
|
|
$
|
(19,022)
|
|
|
$
|
23,524
|
|
|
$
|
(33,625)
|
|
|
|
|
|
|
|
|
|
|
(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 June
30, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
Value
|
|
Cost
(including
transaction costs)
|
|
|
|
Safeguard Carrying
Value and Cost
|
|
|
|
|
|
|
|
Equity method partner
companies
|
|
|
|
|
|
|
|
$
|
171,908
|
|
|
$
|
301,387
|
|
|
|
Other
holdings
|
|
|
|
|
|
|
|
4,151
|
|
|
37,135
|
|
|
|
|
|
|
|
|
|
|
|
$
|
176,059
|
|
|
$
|
338,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-second-quarter-2016-financial-results-300305278.html
SOURCE Safeguard Scientifics, Inc.