RADNOR, Pa., Oct. 27, 2016 /PRNewswire/ -- Safeguard
Scientifics, Inc. (NYSE: SFE) today announced financial results for
the three and nine months ended September
30, 2016, as well as continued achievement of developmental
milestones for its 28 partner companies.
For the three months ended September 30,
2016, Safeguard's net loss was $24.1
million, or $1.18 per share,
compared with a net loss of $11.6
million, or $0.56 per share,
for the same period of 2015. For the nine months ended September 30, 2016, Safeguard's net loss was
$0.6 million, or $0.03 per share, compared with a net loss of
$45.3 million, or $2.17 per share, for the same period of 2015.
"With a strong balance sheet, liquidity and a talented team,
Safeguard is well-positioned to enhance shareholder value," said
Stephen T. Zarrilli, Safeguard's President and CEO. "A significant
number of our partner companies have achieved the profitability or
scale to attract interest from strategic investors in pursuit of
growth and proven, innovative technology. As 2016 draws to a close,
we are confident that the Safeguard team will succeed in expanding
our roster of partner companies into promising vertical markets
within the technology sector, and improve upon the predictability
and pace of exit transactions with aggregate cash-on-cash returns
of at least 2x."
THIRD QUARTER 2016 HIGHLIGHTS
- Named Scott A. Snyder, PhD to
the newly created position of Chief Technology and Innovation
Officer. Snyder is charged with exploring additional vertical
markets within the technology sector for possible capital
deployment opportunities. Previously, he was president and chief
strategy officer of a Boston-based
mobile consulting firm.
- Deployed $4.5 million into one
new partner company, Moxe Health, a Madison, WI-based digital health company
focused on accelerating the exchange of clinical data between
payers and providers.
- Deployed $9.0 million in
follow-on funding to support the growth of five existing partner
companies.
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2016 is 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 from which
Safeguard exited during the second quarter of 2016. 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 third
quarter 2016 include:
~ Product Launches / Regulatory Approvals
~
AdvantEdge Healthcare Solutions achieved third-party
recertification for HIPAA and HITECH privacy and security
requirements for the fourth consecutive year.
Cask Data announced a public preview release of Cask Data
Application Platform ("CDAP") 4, the first unified integration
platform for big data. Among a series of important enhancements,
CDAP 4 introduces the Cask Market, a new "big data app store" which
enables developers, data scientists and citizen integrators to
quickly build and deploy applications, data pipelines, plug-ins,
and use case recipes on Hadoop and Spark with the click of a
button.
CloudMine was one of the first companies to become
certified under the new Privacy Shield framework and remains one of
the few vendors in its space to be able to legally hold personally
identifiable information on European Union citizens within its
U.S.-based SaaS platform. The E.U.-U.S. Privacy Shield is new
legislation that was established between the E.U. Privacy
Commission and the U.S. Federal Trade Commission to replace the
decade-old Safe Harbor pact and ensure better enforceability and
guarantees of data privacy for E.U. citizens.
Full Measure Education has a provisional patent
application pending for "Systems and Methods for Selecting
Communication Channels to Improve Student Outcomes" as filed with
the United States Patent and Trademark Office, U.S. Serial Number
62/398,350.
Hoopla Software launched a product enhancement that
allows its customers to broadcast information on Hoopla TV displays
directly from within Slack. With this latest integration, Hoopla
has taken another step in expanding the Hoopla TV platform in order
to motivate, engage, and align employees for customers around the
world. Integrations now include Slack, Google Sheets, Salesforce,
Zapier, Excel and the ability to import CSV files.
Medivo has made significant progress growing its data
assets and is now processing more than 5 billion clinical data test
results from a growing network of lab partnerships. Medivo
continues to connect with more labs and has added 21 more
conditions—for a total of 32 conditions—including Immunoglobulin
Deficiency (IGD), Multiple Myeloma, Chronic Lymphocytic Leukemia,
Idiopathic Thrombocytopenic Purpura, Hyperlipidemia, Human
Immunodeficiency Virus, Diabetes, Atrial Fibrillation,
Neuroendocrine Tumors, Prostate Cancer, Non-Hodgkin's Lymphoma,
Rheumatoid Arthritis, IGF-1 Deficiency, Growth Hormone Deficiency,
Cancer-related Bone Loss, Non-alcoholic Fatty Liver Disease, Spinal
Muscular Atrophy, Alpha-1 Antitrypsin Deficiency, Asthma,
Colorectal Cancer, Male Hypogonadism, and Acute Myeloid Leukemia.
Medivo more broadly introduced CareAlert Dx in the payer market,
bringing value to HEDIS and STAR ratings for payers and insurance
companies, while continuing significant growth among life science
brands.
meQuilibrium launched a Financial Wellbeing offering that
uses proven science in cognitive behavior therapy and applied
mindfulness to target root causes of financial stress.
Transactis released Version 7.0 of its electronic billing
and payment platform. In addition to current integration with
automated receivable applications, this latest update expands API
support for high volume billers and seamless real-time access to
leading payment engines like Visa/CyberSource, Vantiv and WorldPay.
Other highlights include the latest levels of ADA compliance, ACH
enhancements, along with additional features for complex B2B
billers and more robust IVR payment functionality.
Trice Medical received 510(k) clearance from the U.S.
Food and Drug Administration for mi-eye 2, a disposable needle with
a fully integrated camera that enables physicians to use advanced
diagnostic imaging to visualize joint injuries in a clinic. The
mi-eye 2 is designed for use in diagnostic and operative
arthroscopic and endoscopic procedures to provide illumination and
visualization of an interior cavity of the body through either a
natural or surgical opening. The mi-eye 2 also provides physicians
with the ability to inject or aspirate under direct visualization.
The mi-eye 2 is Trice Medical's second, next-generation FDA-cleared
patented technology and offers enhanced resolution, field of view,
depth of field and overall visualization.
Zipnosis launched a new reseller model between two
Zipnosis clients—Bryan Health/Bryan Telemedicine and Memorial
Health. In this model, Memorial Health's eVisit service is staffed
by Bryan Health/Bryan Telemedicine providers.
~ Major Customer Wins / Strategic
Partnerships ~
Aktana completed engagements with numerous pharmaceutical
companies in the U.S., Japan,
France and China. Year-to-date, Aktana has completed 24
customer deployments of Aktana's decision support engine and
learning platform, driving artificial intelligence, multichannel
marketing efficiencies and sales enablement.
Cask Data is now partnering with Tableau, a global leader
in visual analytics. Cask announced deeper integration with
Cloudera Enterprise for faster time to value from Hadoop. Joint
customers can now enjoy the benefits of integrating CDAP with
Cloudera Manager, Cloudera Navigator, Impala, Apache Sentry and
other integration points. Cask has been certified and is among the
newest approved vendors in the Microsoft Azure HDInsight partner
program, enhancing security and scalability of big data queries in
the cloud with CDAP. CDAP has also been certified on the IBM Open
Platform, along with Apache Spark, and is now available on the IBM
Marketplace.
Clutch Holdings has achieved "Built for NetSuite"
certification for its Gift, Loyalty & Automated Marketing
SuiteApp, enabling users to identify, understand and motivate their
customers with personalized engagements and experiences across
online, in-store, mobile, social, email, SMS and direct mail
channels. In addition, Retail Control Systems is integrating the
Clutch platform for email marketing and point-of-sale data
collection and analysis by Denver-area Goodwill Industries locations
beginning in 2017. Additional customer wins include Modcloth, Joe's
Jeans and e.l.f. Cosmetics.
MediaMath and Mobilewalla, a large, consumer-intelligence
platform operating in 12 APAC countries, are partnering to offer
MediaMath clients the ability to target customers on their mobile
device based on demographics, behavior and location. The APAC
mobile market is growing quickly, representing 52 percent of
smartphone users globally in 2015, according to Mary Meeker. In addition, MediaMath was the
first to partner with DataXpand, an international data management
platform and Audience Marketplace to provide marketers with
"Pokémon digital audiences" in the U.S., Europe and Latin
America. DataXpand is the first, and only, company able to
provide access to these audiences and, with this partnership with
MediaMath, allowing the Pokémon audiences to be actionable within
TerminalOne. MediaMath forged partnerships with Factual to allow
clients to have seamless, real-time hyperlocal targeting with OpenX
to test the effectiveness of header-bidding to showcase how
advertisers could increase their incremental reach (MediaMath saw
an increase of 24 percent more users) via the combined solution;
and with Cuebiq to offer offline and purchase-intent targeting
solutions to agency and brand clients via beacons, geo-fences and
Wi-Fi.
meQuilibrium added one of the largest health insurers in
North America, along with a large
health insurer reseller, to its customer roster.
QuanticMind added Windstar Cruises and Lear Capital to
its customer roster.
Syapse and San
Diego-based Biotheranostics are collaborating to combine
Syapse's precision medicine platform with diagnostic data from
Biotheranostics' genomic tests to help physicians find the most
effective treatment for cancer patients based on their molecular
profiles.
Zipnosis and Minneapolis-based Fairview Health Services
have partnered to launch the nation's first virtual care offering
to prevent and treat chronic diseases. This first-of-its-kind,
clinician-driven online health risk assessment screens for diabetes
and cardiac disease, and is believed to be the first such solution
to incorporate expedited laboratory access and customized patient
education.
~ Industry Awards ~
Cask Data was certified as a great workplace by the
independent analysts at Great Place to Work®. Cask
earned this credential based on ratings provided by its employees
through extensive anonymous surveys.
Clutch Holdings was named Top 5 in the Philadelphia
Business Journal's "50 On Fire" list of fast-growing public and
private companies, based on its 207 percent revenue growth from
2013 to 2015. Additionally, Clutch was named as a finalist in the
2016 Entrepreneur360 awards.
Full Measure Education has been awarded the Complete
College America Guided Pathways to Success ("GPS") "Seal of
Approval", which recognizes industry tools and practices that
facilitate institutional effectiveness to achieve the goals of GPS.
The award is given to those solutions that have been evaluated and
tested against a defined set of best practices, effective
implementations and aspirational standards. In order to achieve the
award, solution providers must also demonstrate the features
offered in their software solutions and strategies to develop
policies and business processes during implementation.
InfoBionic and its cloud-based MoMe® Kardia
system earned the Frost & Sullivan 2016 North America Award for
New Product Innovation. "Unlike competitors' products that comprise
of a sensor unit to acquire ECG data and another to transmit the
captured data to the monitoring center, the MoMe Kardia system is a
single unit," said Frost & Sullivan Senior Research Analyst
Karan Verma. "It allows both tasks
to be accomplished on a single device, making InfoBionic the first
firm to develop a one-stop cardiac monitoring device."
MediaMath and its New Marketing Institute earned gold
awards for Best Innovative Learning & Development Program and
Best Certification Program from the Brandon Hall Group, a global
research organization specializing in learning and development and
talent management. Additionally, Forbes named MediaMath one of the 100 Best
Workplaces for Millennials.
Pneuron was recognized by Forrester Research as a
"Breakout Vendor" in Big Data integration because its data
discovery and analysis platform allows clients to "reduce data and
process integration time and cost." Pneuron landed at No. 493 on
the 2016 Inc. 5000 list of fast-growing private companies. Among
software vendors, Pneuron was ranked the 40th-fastest
growing with revenue up more than 700 percent during the past three
years. In addition, CRN®, a brand of The Channel
Company, named Pneuron to its 2016 list of Emerging Vendors. This
annual list recognizes up-and-coming technology suppliers who are
shaping the future of the IT channel through unique technological
innovations.
WebLinc was recognized as a Multichannel Merchant Top
Commerce Platform for 2017, part of a list of leading commerce
platform providers selected by the editors of Multichannel
Merchant.
Zipnosis was named a key company to watch in mHealth by
Frost & Sullivan in its recent mHealth Report. The report
focused on how mHealth is set to reshape the delivery of U.S.
Healthcare. Zipnosis is identified as part of "examples of
innovative companies driving the growth of new clinical care models
over mobile".
~ Financings and Other Milestones
~
Good Start Genetics named James
Frontero to the newly created post of Chief Commercial
Officer to drive growth and expand Good Start's pipeline of
genetics-information products. Previously, he held executive and
sales leadership roles at Boston Scientific, Devicor Medical
Products and Straumann USA.
Mary Alice McMorrow was appointed to
lead clinical, consumer and pediatric marketing activities. Ms.
McMorrow has more than 20 years experience in B2B and B2C marketing
at Procter & Gamble, General Mills and Mattel. Good Start
Genetics also formed a pediatric scientific advisory board as the
company prepares to expand its footprint in genetic testing for
families, from preconception through early childhood. Advisors
include representatives from Verily (formerly Google Life
Sciences), Brigham and Women's Hospital in Boston, and the Center for Applied Genomics at
Children's Hospital of Philadelphia.
Moxe Health announced a $5.5
million Series A financing to support product expansion and
to increase engineering and sales staffs. Safeguard led the round
with $4.5 million and now holds a 33%
primary ownership position. Moxe Health has developed a
vendor-agnostic solution primed to capitalize on a demand for
real-time access to comprehensive clinical data. By connecting
various databases together, Moxe Health facilitates a more holistic
view of patient health.
QuanticMind recognized record year-over-year revenue
growth during the second quarter. The company registered
"QuanticMind" as a registered trademark and hired a Director of
Solutions Engineering, along with additional staff, increasing the
company's headcount by 26 percent.
Sonobi said demand for its "guaranteed audience" buying
offerings has fueled a 199 percent increase in annual revenue. More
than 2,400 publications have signed on to Sonobi's JetStream
Publisher Suite. The company's 2015 launch of JetStream Agency
Suite has drawn Merkle, Omnicom Media Group and other agencies to
Sonobi's unique demand profile for publishers. In turn, Sonobi
established a London office to
manage operations in the Europe,
Middle East and Africa regions. Gareth
Holmes, a veteran advertising executive who has worked at
PubMatic, Yahoo UK and BlueLithium, was named to supervise Sonobi's
expanding activity in EMEA.
WebLinc significantly increased its second quarter
revenue year-over-year due to strong client growth. Twenty-two
online retailers chose the WebLinc Commerce Platform over other
enterprise and legacy commerce systems. New customers include
pure-play retailer Costume SuperCenter with seven sites, as well as
cosmetics brand Lime Crime. In addition, WebLinc launched ecommerce
websites for Sanrio.com, the global lifestyle brand best known for
pop icon Hello Kitty®; and PurePromo.com, a promotional
products and corporate gifts pure-play retailer. WebLinc hired
Pat Ferdig to fill the newly created
position of Vice President of Channel Alliances and Channel
Relations. The company also brought on digital commerce veteran
Bill Tarbell as Vice President of
Marketing, also a brand new role.
PARTNER COMPANY HOLDINGS AS OF SEPTEMBER 30, 2016
Partner Company
Revenue Stages
|
Development
Stage
|
Initial Revenue
Stage
|
Expansion
Stage
|
High Traction
Stage
|
-
|
Pre-revenue
|
-
|
Up to $5M in
revenue
|
-
|
$5M to $20M in
revenue
|
-
|
$20M+ in
revenue
|
-
|
Proving out
technology
|
-
|
Initial
customers
|
-
|
Commercial grade
solution
|
-
|
Significant
commercial traction
|
-
|
Developing
prototype
|
-
|
Early market
penetration
|
-
|
Growing market
penetration
|
|
|
-
|
Beta stage
customers
|
-
|
Management team
forming
|
-
|
Management team
built out
|
|
|
|
|
-
|
Infrastructure
being built
|
-
|
Infrastructure in
place
|
|
|
|
Stage
|
Category
|
Acquisition
Year
|
Primary
Ownership%
|
Carrying
Value
|
Cost
|
Technology Partner
Companies:
|
|
|
|
|
(in
millions)
|
(in
millions)
|
AdvantEdge Healthcare
Solutions
|
High
Traction
|
Healthcare
|
2006
|
40%
|
$5.4
|
$16.3
|
Aktana
|
Initial
Revenue
|
Healthcare
|
2016
|
23%
|
5.4
|
5.5
|
Apprenda
|
Initial
Revenue
|
Other
|
2013
|
30%
|
12.9
|
22.1
|
Aventura
|
Initial
Revenue
|
Healthcare
|
2015
|
20%
|
2.6
|
6.0
|
Beyond
|
High
Traction
|
Digital
Media
|
2007
|
38%
|
15.0
|
13.5
|
Cask Data
|
Initial
Revenue
|
Other
|
2015
|
31%
|
8.3
|
11.0
|
CloudMine
|
Initial
Revenue
|
Healthcare
|
2015
|
30%
|
2.7
|
4.9
|
Clutch
Holdings
|
Expansion
|
Digital
Media
|
2013
|
45%
|
10.8
|
16.3
|
Full Measure
Education
|
Initial
Revenue
|
Digital
Media
|
2015
|
36%
|
5.8
|
8.0
|
Good Start
Genetics
|
High
Traction
|
Healthcare
|
2010
|
30%
|
-
|
15.6
|
Hoopla
Software
|
Initial
Revenue
|
Digital
Media
|
2011
|
26%
|
0.3
|
4.8
|
InfoBionic
|
Initial
Revenue
|
Healthcare
|
2014
|
41%
|
4.2
|
14.5
|
Lumesis
|
Initial
Revenue
|
Financial
Services
|
2012
|
44%
|
1.9
|
6.0
|
MediaMath
|
High
Traction
|
Digital
Media
|
2009
|
21%
|
6.6
|
25.5
|
Medivo
|
Expansion
|
Healthcare
|
2011
|
35%
|
5.5
|
11.6
|
meQuilibrium
|
Initial
Revenue
|
Healthcare
|
2015
|
32%
|
4.2
|
6.5
|
Moxe
Health
|
Initial
Revenue
|
Healthcare
|
2016
|
33%
|
4.5
|
4.5
|
NovaSom
|
Expansion
|
Healthcare
|
2011
|
32%
|
3.5
|
22.1
|
Pneuron
|
Initial
Revenue
|
Financial
Services
|
2013
|
35%
|
6.0
|
8.5
|
Propeller
Health
|
Initial
Revenue
|
Healthcare
|
2014
|
24%
|
4.9
|
9.0
|
QuanticMind
|
Initial
Revenue
|
Digital
Media
|
2015
|
24%
|
5.5
|
7.0
|
Sonobi
|
Expansion
|
Digital
Media
|
2015
|
22%
|
4.2
|
5.4
|
Spongecell
|
Expansion
|
Digital
Media
|
2012
|
23%
|
12.6
|
18.0
|
Syapse
|
Initial
Revenue
|
Healthcare
|
2014
|
26%
|
7.6
|
13.3
|
Transactis
|
Expansion
|
Financial
Services
|
2014
|
24%
|
11.6
|
14.5
|
Trice
Medical
|
Initial
Revenue
|
Healthcare
|
2014
|
28%
|
2.5
|
6.2
|
WebLinc
|
Expansion
|
Digital
Media
|
2014
|
38%
|
7.8
|
11.0
|
Zipnosis
|
Initial
Revenue
|
Healthcare
|
2015
|
26%
|
6.0
|
7.0
|
Total
|
|
|
|
TOTAL:
|
$168.3
|
$314.6
|
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 eight 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.
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.
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.
Beyond.com, Inc. (King of
Prussia, PA)
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.
Cask Data, Inc. (Palo
Alto, CA)
Cask makes building and running big
data solutions on-premise, or in the cloud, easy with Cask Data
Application Platform ("CDAP"), the first unified integration
platform for big data. CDAP reduces the time to production for data
lakes and data applications by 80 percent, empowering the business
to make better decisions faster.
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 companies
get the most value they can from their existing customers. Clutch's
advanced Customer Management platform delivers intelligence and
personalized engagements empowering consumer-focused businesses to
identify, understand and motivate their customer base.
Full Measure Education, Inc. (Washington, DC)
Full Measure
Education is breaking new ground in digital transformation for
higher education. Full Measure Education's Digital Student
Experience (DSx) platform harnesses the power of unified data and
the reach of mobile devices to enable personalization and
simplicity for students.
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.
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.
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.
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 44,000 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.
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 (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.
Moxe Health Corporation (Madison, WI)
Moxe Health enables
bi-directional flow of information between payers and providers.
The company's flagship product, Substrate, is an electronic medical
record integration solution connecting payers and provider
networks, facilitating real-time data exchange among industry
stakeholders. Through this exchange of data, provider networks are
rewarded with key patient health insights and a reduced
administrative footprint.
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.
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.
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.
QuanticMind, Inc. (Redwood City, CA)
QuanticMind, the
Platform for Smarter Advertising, is the pioneer of predictive
advertising management software for paid search and social
channels. By reinvesting ad management point solutions through
machine learning, distributed cloud computing, and in-memory
processing, QuanticMind delivers the most intelligent, scalable and
fastest platform for maximizing advertising performance for
enterprises.
Sonobi, Inc. (New York,
NY)
Sonobi is an advertising tech developer that
is redefining the way media is transacted by putting people, not
impressions, at the center of every digital execution. Sonobi's
JetStream platform provides a direct interaction between publishers
and advertisers, enabling them to directly collaborate, plan and
deliver engaging experiences to buyer-defined consumers upfront and
guaranteed.
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.
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.
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.
Trice Medical, Inc. (King
of Prussia, PA)
Trice Medical was founded to
fundamentally improve orthopedic diagnostics for the patient,
physician and payor by providing instant, eyes-on, answers. Trice
Medical has pioneered and evolved a fully integrated camera-enabled
technology that provides a clinical solution optimized for the
physician's office. Trice's mission is to provide more immediate
and definitive patient care, eliminating the false reads associated
with current indirect modalities and significantly reduce the
overall cost to the healthcare system.
WebLinc, Inc. (Philadelphia, PA)
WebLinc is the
commerce and operations management platform for fast growing online
retailers. Mid- to large-size retailers consistently outpace their
competition by leveraging the modern, agile technologies of the
WebLinc Commerce Platform and WebLinc's strategic expertise.
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.
CONFERENCE CALL AND WEBCAST DETAILS
Please call
10-15 minutes prior to the call to register.
Date: Thursday,
October 27, 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: 86817347
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 2016 financial results followed by Q&A.
Replay will be available through November
27, 2016 at 11:59pm EST. For
more information please contact IR@safeguard.com.
About Safeguard Scientifics
Safeguard Scientifics
(NYSE:SFE) provides capital and relevant expertise to fuel the
growth of technology-driven businesses in healthcare, financial
services and digital media. Safeguard targets companies that are
capitalizing on the next wave of enabling technologies with a
particular focus on the Internet of Everything, enhanced security
and artificial intelligence, which includes predictive analytics
and machine learning. Safeguard typically deploys between
$5 million and $25 million over the
course of its partnership with a company, initially investing in a
Series A or B Round and opportunistically in a Seed Round.
Safeguard has a distinguished track record of fostering innovation
and building market leaders that spans more than six decades. For
more information, please visit www.safeguard.com or
follow us on Twitter @safeguard and LinkedIn.
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,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
|
$
|
66,312
|
|
|
$
|
63,858
|
|
Other current
assets
|
|
1,906
|
|
|
5,810
|
|
|
Total current
assets
|
|
68,218
|
|
|
69,668
|
|
Ownership interests
in and advances to partner companies
|
|
172,941
|
|
|
171,601
|
|
Loan participations
receivable
|
|
—
|
|
|
2,649
|
|
Long-term marketable
securities
|
|
10,328
|
|
|
9,743
|
|
Other
assets
|
|
2,251
|
|
|
3,182
|
|
Total
Assets
|
|
$
|
253,738
|
|
|
$
|
256,843
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Other current
liabilities
|
|
$
|
6,505
|
|
|
$
|
6,417
|
|
|
Total current
liabilities
|
|
6,505
|
|
|
6,417
|
|
Other long-term
liabilities
|
|
3,947
|
|
|
3,965
|
|
Convertible senior
debentures
|
|
52,145
|
|
|
50,956
|
|
Total
equity
|
|
191,141
|
|
|
195,505
|
|
Total Liabilities
and Equity
|
|
$
|
253,738
|
|
|
$
|
256,843
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
Operating
expenses
|
|
$
|
4,687
|
|
|
$
|
3,962
|
|
|
$
|
14,764
|
|
|
$
|
13,596
|
|
Operating
loss
|
|
(4,687)
|
|
|
(3,962)
|
|
|
(14,764)
|
|
|
(13,596)
|
|
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
|
(2,405)
|
|
|
704
|
|
|
(1,746)
|
|
|
301
|
|
Interest,
net
|
|
(648)
|
|
|
(735)
|
|
|
(2,005)
|
|
|
(1,896)
|
|
Equity income
(loss)
|
|
(16,345)
|
|
|
(7,635)
|
|
|
17,954
|
|
|
(30,062)
|
|
|
|
|
|
|
|
|
|
|
Net loss before
income taxes
|
|
(24,085)
|
|
|
(11,628)
|
|
|
(561)
|
|
|
(45,253)
|
|
Income tax benefit
(expense)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
(24,085)
|
|
|
$
|
(11,628)
|
|
|
$
|
(561)
|
|
|
$
|
(45,253)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.18)
|
|
|
$
|
(0.56)
|
|
|
$
|
(0.03)
|
|
|
$
|
(2.17)
|
|
Diluted
|
|
$
|
(1.18)
|
|
|
$
|
(0.56)
|
|
|
$
|
(0.03)
|
|
|
$
|
(2.17)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing
loss per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
20,387
|
|
|
20,919
|
|
|
20,390
|
|
|
20,892
|
|
Diluted
|
|
20,387
|
|
|
20,919
|
|
|
20,390
|
|
|
20,892
|
|
|
|
|
|
|
|
|
|
|
Safeguard
Scientifics, Inc.
|
Partner Company
Financial Data
|
(in
thousands)
|
|
Additional
Financial Information
|
To assist investors
in understanding Safeguard and our 28 partner companies as of
September 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.
|
|
|
September 30,
2016
|
|
|
|
Carrying
Value
|
|
Cost
(including
transaction
costs)
|
Safeguard Carrying
Value and
Cost
|
|
Equity method partner
companies
|
$
|
168,282
|
|
|
$
|
314,884
|
|
Other
holdings
|
4,659
|
|
|
37,715
|
|
|
$
|
172,941
|
|
|
$
|
352,599
|
|
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SOURCE Safeguard Scientifics, Inc.