CLRT....Fifth consecutive quarter of double digit growth.
Inc (NASDAQ CM) 3/14/2007 12:00:00 AM ET
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Press Release for Clarient Inc
Safeguard Executes Game Plan, Announces Profit for 2006, Generates 31% Increase in Fourth Quarter 2006 Revenues
3/8/2007 6:00:24 AM
Well-Timed Exits, Ignited Deal Machinery, Augmented Organization Generate Momentum for 2007
WAYNE, Pa., Mar 08, 2007 (BUSINESS WIRE) -- Safeguard Scientifics, Inc. ( SFE ), which builds value in growth-stage technology and life sciences companies, today announced its financial results for the fourth quarter and year-end 2006. In 2006, Safeguard executed upon its game plan to reposition itself as a holding company, to time exits for maximum risk-adjusted value, to ignite its deal machinery and to augment its organization. Through the sale of its holdings in Mantas and Traffic.com, Safeguard realized profitability for 2006, positioning the company to be able to deploy capital and continue to build value in its partner companies.
Safeguard reported consolidated revenues of $53.3 million for the fourth quarter of 2006, a 31% increase as compared to $40.7 million in 2005, adjusted for discontinued operations. This revenue growth represents the fifth consecutive quarter of double-digit revenue growth for Safeguard. For the full year, revenue was $198.1 million, up 38% from $143.8 million in 2005. Safeguard's consolidated net income for the fourth quarter of 2006 was $71.3 million, compared to $2.3 million in 2005. For the full year, net income was $46.0 million, compared to a net loss of $32.1 million in 2005.
"In 2006, we made significant strides toward executing upon our game plan. As a holding company, we ignited our deal machinery, identified opportunities and deployed capital in seven transactions," said Peter J. Boni, President and Chief Executive Officer of Safeguard. "Three of our new partners are technology-focused companies, Authentium, Portico Systems and Advantedge Healthcare Solutions; two are life sciences companies, Rubicor Medical and NuPathe. We also provided additional funding to support growth and product development at Acsis, while deploying additional capital and operational support for strategic acquisitions by Alliance Consulting and Clarient."
Boni continued, "Throughout the year, we built value in our partner companies. We augmented our Safeguard team, both internally and externally, with two advisory boards, together with key board-level and management additions, although we are searching for a permanent CFO. We also realized value from divesting some of our partner company holdings during 2006, which drove us to profitability for the fourth quarter and full year."
"Our successes in 2006 have established a foundation to support the transition into the second phase of our strategy. In 2007, we are focused on deploying capital, including the recently announced growth financing for Advanced BioHealing, Inc., a leader in regenerative medicine focused on the development and marketing of cell-based and tissue-engineered products. In addition, we're looking to build value in our holdings and realize that value in selective, well-timed exits, ultimately driving shareholder value," concluded Boni.
TECHNOLOGY PARTNER COMPANIES
Fourth Quarter Highlights - Majority Holdings
Acsis, Inc. extended its software solution within supply-chain management, growing its customer base 17% in 2006. Revenue for the fourth quarter was $5.5 million. In the fourth quarter, Acsis booked its strongest number of software licenses. Demand for its Acsis Line Manager was especially strong with over seventy stations sold. Throughout the year, Acsis focused its product development on emerging software markets, expanded strategic partnerships and built a world-class management team. Acsis re-architected its product portfolio and expects its expanding relationship with SAP(R) to help drive new business opportunities in 2007.
Alliance Consulting, Inc. posted $1.0 million of operating income in the fourth quarter. Revenue for the fourth quarter increased to $26.0 million, up 8% as compared to 2005. Alliance's year-over-year revenue growth far exceeded industry averages and its investment in growth areas such as Master Data Management has generated positive recognition by several industry analyst groups. Strong bookings in the fourth quarter enabled Alliance to start 2007 with solid backlog levels.
Pacific Title & Art Studio, Inc. was honored with an Academy Award for their innovative and proprietary digital archiving technology. In the fourth quarter, Pacific Title's revenue was $6.8 million, a decrease of 4% year-over-year. This is reflective of an overall decline in the movie production industry.
LIFE SCIENCES PARTNER COMPANIES
Fourth Quarter Highlights - Majority Holdings
Laureate Pharma, Inc. achieved record growth in 2006 with fourteen new client agreements and a twofold increase in backlog as compared to 2005. Fourth quarter revenue was up more than 200% year-over-year at $4.9 million. The company increased its workforce more than 25%, is on track to complete its facility expansion, and entered into key strategic alliances during the year. In addition, Laureate Pharma formed a Scientific Advisory Board comprised of well-respected industry leaders to help guide the company through its evaluation of new services and emerging technologies.
Clarient, Inc. ( CLRT ) reported significant growth in advanced cancer diagnostic services with decreasing losses. Revenue for the fourth quarter was $10.2 million, up 70% year-over-year. During the fourth quarter, Clarient reported that they have started realizing revenue from sales of their new Advanced Cellular Imaging System (ACIS(R) III) and received milestone payments for their development efforts.
