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Matson, Inc. Announces Third Quarter 2012 EPS Of $0.45

- Ocean transportation revenues up 9.1% year over year

HONOLULU, Nov. 7, 2012 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $19.1 million, or $0.45 per diluted share for the third quarter ended September 30, 2012[1]. Net income for the third quarter ended September 30, 2011 was $8.7 million, or $0.21 per diluted share. Consolidated revenue for the third quarter 2012 was $401.4 million compared with $380.6 million reported for the third quarter 2011.

(Logo: http://photos.prnewswire.com/prnh/20120605/SF19690LOGO)

Operating income was $34.2 million for the third quarter 2012, compared to $30.9 million for third quarter 2011. However, operating income was negatively impacted in the third quarter 2012 by expense of $0.3 million associated with the Company's separation from A&B; and in the third quarter 2011 by expense of $6.1 million associated with the shutdown of the Company's CLX2 service. Net of these expenses, operating income decreased $2.5 million in the third quarter 2012 from the prior year period.

Matt Cox, Matson's President and Chief Executive Officer commented, "Matson reported another steady quarter, with results mixed by trade lane. We saw continued rate and volume strength in our expedited service from China, continued strong Guam volume and modest volume improvement in our Hawaii trade. These gains, while encouraging, were largely offset by increased expenses primarily associated with vessel and barge dry-docking during the quarter."  

Cox continued, "The hallmarks of the Matson brand – superior customer service, financial stability and solid delivery reliability – have been earned over a century. Our balance sheet strength and strong cash flow generation support a strong dividend while providing ample capacity for future investments in our people, our businesses and new markets."

For the first nine months of 2012, Matson reported net income of $30.3 million, or $0.71 per diluted share.  Net income for the first nine months of 2011 was $32.6 million, or $0.77 per diluted share.  Consolidated revenue for the first nine months of 2012 was $1,161.7 million compared with $1,087.7 million reported for the first nine months of 2011.

Operating income for the first nine months of 2012 was $72.8 million compared with $66.8 million in the first nine months of 2011. However, operating income was negatively impacted in the first nine months of 2012 by expenses of $8.6 million associated with the Company's separation from A&B and $0.5 million related to the shutdown of the Company's CLX2 service. In the first nine months of 2011, operating income was negatively impacted by $6.1 million of expenses associated with the shutdown of the Company's CLX2 service. Net of these expenses, operating income increased $9.0 million in the first nine months of 2012 from the prior year period.

By Segment

Ocean Transportation – Three months ended September 30, 2012 compared with 2011

 



Three Months Ended September 30

(Dollars in millions)


2012



2011


Change

Revenue


$

307.1



$

281.4


9.1%


Operating income1


$

32.9



$

28.9


13.8%


Operating income margin



10.7%




10.3%




Volume (units)2











Hawaii containers



35,700




35,400


0.8%


Hawaii automobiles



22,200




19,700


12.7%


China containers



17,100




15,400


11.0%


Guam containers



6,500




3,400


91.2%


    

1.

The Company incurred additional costs related to the shutdown of CLX2  that did not meet the criteria to be classified as discontinued operations of approximately $6.1 million for the three months ended September 30, 2011 and therefore reduced operating income by that amount.   Costs related to the shutdown of CLX2 included in Income from Continuing Operations during the three months ended September 30, 2012 were immaterial.

2.

Approximate container volumes included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages that straddle the beginning or end of each reporting period.

Ocean transportation revenue increased $25.7 million, or 9.1 percent, during the three months ended September 30, 2012 compared with the three months ended September 30, 2011. The increase was due principally to net volume growth, driven primarily by the exit of a major competitor from the Guam trade in mid-November 2011, increases in China trade freight rates and volume, partially offset by lower fuel surcharges resulting from lower fuel prices.

Container volume increased in all of the Company's trades in the three months ended September 30, 2012 compared with the three months ended September 30, 2011: Hawaii container volume increased 0.8 percent due principally to a modest increase in demand; Hawaii automobile volume increased 12.7 percent due primarily to the timing of automobile rental fleet replacement; China container volume increased 11.0 percent due primarily to an additional sailing; Guam volume increased by 91.2 percent due to gains related to the departure of a major competitor from the trade in mid-November 2011.

Ocean transportation operating income increased $4.0 million, or 13.8 percent, during the three months ended September 30, 2012 compared with the three months ended September 30, 2011. However, net of expense related to separation and shutdown of CLX2, operating income decreased by $1.8 million, or 5.1 percent. The decrease in operating income was principally due to increased costs related to vessel and barge dry-docking, higher outside transportation costs due to increased activity in the Guam trade, higher vessel expenses and higher general and administrative expenses. These increases were partially offset by higher volume in the Guam trade and increased freight rates and volume in the China trade. 

The Company's SSAT joint venture contributed $0.7 million to operating income during the third quarter ended September 30, 2012 compared with $2.8 million reported for the same period last year. The decline is primarily due to the loss of volume from several major customers.

Ocean Transportation – Nine months ended September 30, 2012 compared with 2011

 



Nine Months Ended September 30

(Dollars in millions)


2012



2011


Change


Revenue


$

886.1



$

794.1


11.6%


Operating income1


$

69.9



$

61.2


14.2%


Operating income margin



7.9%




7.7%




Volume (units)2











Hawaii containers



102,100




105,000


(2.8%)


Hawaii automobiles



60,000




61,300


(2.1%)


China containers



46,000




43,200


6.5%


Guam containers



19,000




10,100


88.1%


    

1.

The Company incurred additional costs related to the shutdown of CLX2 that did not meet the criteria to be classified as discontinued operations of approximately $0.5 million and $6.1 million and therefore reduced operating income for the nine months ended September 30, 2012 and 2011, respectively. 

2.

Approximate container volumes included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages that straddle the beginning or end of each reporting period.

Ocean transportation revenue increased $92.0 million, or 11.6 percent, in the nine months ended September 30, 2012 compared with the nine months ended September 30, 2011.  The increase was due principally to net volume growth, driven primarily by the exit of a major competitor from the Guam trade in mid-November 2011, an increase in freight rates and volume in the China trade, and increased fuel surcharges resulting from higher fuel prices, partially offset by reduced volumes in the Hawaii trade.

Container and automobile volume decreased in the Hawaii trade in the nine months ended September 30, 2012 compared with the nine months ended September 30, 2011: Hawaii container volume decreased 2.8 percent due to market weakness, competitive pressures, and a modest market contraction resulting from direct foreign sourcing of cargo; Hawaii automobile volume decreased 2.1 percent due primarily to the timing of automobile rental fleet replacement. Container volume in the China and Guam trades increased during the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011: China container volume increased 6.5 percent due to increased demand and a shift in direct foreign sourcing of cargo destined to Hawaii; Guam volume was higher, increasing 88.1 percent in the nine months, due to gains related to the departure of a major competitor from the trade in mid-November 2011.

Ocean transportation operating income increased $8.7 million, or 14.2 percent, in the nine months ended September 30, 2012 compared with the nine months ended September 30, 2011. However, net of expenses related to separation and shutdown of CLX2, operating income increased by $11.7 million, or 17.4 percent.  The increase in operating income was principally due to higher volume in the Guam trade and increased freight rates and volume in the China trade, partially offset by decreased volume in Hawaii, increased costs related to vessel and barge dry-docking and higher outside transportation costs due to increased activity in the Guam trade. The Company also incurred higher terminal handling costs due primarily to increased wharfage and container handling rates, higher vessel expenses and higher general and administrative expenses. 

The Company's SSAT joint venture contributed $3.1 million to operating income during the nine months ended September 30, 2012 compared with $6.8 million reported for the same period last year. The decline is primarily due to the loss of volume from several major customers.

Logistics – Three months ended September 30, 2012 compared with 2011

 



Three Months Ended September 30

(Dollars in millions)


2012



2011


Change


Intermodal revenue


$

58.7



$

60.9


(3.6%)


Highway revenue



35.6




38.3


(7.0%)


Total Revenue


$

94.3



$

99.2


(4.9%)


Operating income


$

1.3



$

2.0


(35.0%)


Operating income margin



1.4%




2.0%
















Logistics revenue decreased $4.9 million, or 4.9 percent, during the three months ended September 30, 2012 compared with the three months ended September 30, 2011. This decrease was primarily the result of lower intermodal and highway volume. Intermodal volume declined primarily due to the shutdown of CLX2 and the loss of a major international ocean carrier customer, partially offset by an increase in domestic volumes.  Highway volume decreased due to the loss of certain full truckload customers.

Logistics operating income decreased $0.7 million, or 35.0 percent, to $1.3 million during the three months ended September 30, 2012 compared with the three months ended September 30, 2011.  The decline in the operating income was primarily due to lower volume in intermodal and highway, lower yield in intermodal, partially offset by decreases in general and administrative expenses.

Logistics – Nine months ended September 30, 2012 compared with 2011

 



Nine Months Ended September 30

(Dollars in millions)


2012



2011


Change


Intermodal revenue


$

170.5



$

178.3


(4.4%)


Highway revenue



105.1




115.3


(8.8%)


Total Revenue


$

275.6



$

293.6


(6.1%)


Operating income


$

2.9



$

5.6


(48.2%)


Operating income margin



1.1%




1.9%
















Logistics revenue for the nine months ended September 30, 2012, decreased $18.0 million, or 6.1 percent, compared with the nine months ended September 30, 2011.  This decrease was primarily due to lower intermodal and highway volumes. Intermodal volume declined primarily due to the shutdown of CLX2 and the loss of a major ocean carrier customer, partially offset by an increase in domestic volumes. Highway volume decreased due to the loss of certain full truckload customers.

Logistics operating income for the nine months ended September 30, 2012 decreased $2.7 million, or 48.2 percent, compared with the nine months ended September 30, 2011.  The reduction in operating income was due to lower volumes in the intermodal and highway businesses, partially offset by a decrease in general and administrative expenses.

Cash Generation & Capital Allocation

Matson continued to generate strong cash flow during the third quarter 2012 and for the nine months ended September 30, 2012. EBITDA was $52.5 million in the third quarter 2012 compared to $48.9 million in the third quarter 2011, an increase of $3.6 million, or 7.4 percent. For the first nine months of 2012 EBITDA was $128.5 million compared to $119.8 million through nine months of 2011, an increase of $8.7 million, or 7.3 percent. 

Capital expenditures for the nine months ended September 30, 2012 totaled $30.8 million compared with $39.5 million for the nine months ended September 30, 2011.

As previously announced, Matson's Board of Directors declared a cash dividend of $0.15 per share payable on December 6, 2012 to shareholders of record on November 8, 2012. 

Debt Levels

Total debt as of September 30, 2012 was $328.6 million, of which $307.2 million was long term debt. During the third quarter 2012 the Company paid down its total debt by $44.2 million.

Teleconference and Webcast

Matson, Inc. has scheduled a conference call at 4:30 p.m. EST/1:30 p.m. PST/11:30 a.m. HST today to discuss its third quarter performance. The call will be broadcast live on the Company's website at www.matson.com; Investor Relations.  A replay of the conference call will be available approximately two hours after the call through 5:30 p.m. EST on Wednesday, November 14, 2012 by dialing 1-877-344-7529 or 1-412-317-0088 and using the conference number 10020465. The slides and audio webcast of the conference call will be archived for one full quarter on the Company's Investor Relations page of the Company's website.

About the Company

Founded in 1882, Matson is a leading U.S. carrier in the Pacific. Matson provides a vital lifeline to the island economies of Hawaii, Guam and Micronesia and premium, expedited service from China to Southern California. The Company's fleet of 17 vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout the continental U.S. Its integrated, asset-light logistics services include rail intermodal, highway brokerage and warehousing. Additional information about Matson, Inc. is available at the Company's website.

GAAP to Non-GAAP Reconciliation

This press release, the Form 8-K and information to be discussed in the conference call include non-GAAP measures. While Matson reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Operating Income from Continuing Operations net of non-recurring expenses or revenues (Adjusted Operating Income) at the consolidated and segment level, EBITDA, and Adjusted EBITDA.

Forward-Looking Statements

Statements in this news release that are not historical facts are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement, including but not limited to risks and uncertainties relating to regional, national and international economic conditions; new or increased competition; fuel prices and our ability to collect fuel surcharges; our relationship with vendors, customers and partners and changes in related agreements; the timing of the entry of a competitor in the Guam trade lane; conditions in the financial markets; changes in our credit profile and our future financial performance; the impact of future and pending legislation, including environmental legislation; government regulations and investigations; repeal, substantial amendment or waiver of the Jones Act or its application, or our failure to maintain our status as a United States citizen under the Jones Act; relations with our unions; and the occurrence of marine accidents, poor weather or natural disasters. These forward-looking statements are not guarantees of future performance. This release should be read in conjunction with our former parent company's (Alexander & Baldwin, Inc.) Annual Report on Form 10-K and our former parent company's and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release. We do not undertake any obligation to update our forward-looking statements.

[1] The financial results for the third quarter and first nine months of 2012 reflect Matson's separation from its former parent corporation, Alexander & Baldwin, Inc. ("A&B"), on June 29, 2012. The separation of Matson from A&B was originally announced on December 1, 2011. Due to the structure of the separation transaction, A&B's non-Matson operations have been included in Matson's financial statements as discontinued operations.

Investor Relations inquiries:

Joel M. Wine

Matson, Inc.

510.628.4565

[email protected]

Media inquiries:

Jeff S. Hull

Matson, Inc.

510.628.4534

[email protected]


 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income and Comprehensive Income

(In millions, except per-share amounts) (Unaudited)

 


Three Months Ended

September 30,


Nine Months Ended

September 30,


2012


2011


2012


2011

Operating Revenue:












Ocean transportation

$

307.1


$

281.4


$

886.1


$

794.1

Logistics


94.3



99.2



275.6



293.6

Total operating revenue


401.4



380.6



1,161.7



1,087.7













Costs and Expenses:












Operating costs


337.0



324.7



996.0



943.9

Equity in income of terminal joint venture


(0.7)



(2.8)



(3.1)



(6.8)

Selling, general and administrative


30.6



27.8



87.4



83.8

Separation costs


0.3



-



8.6



-

Operating costs and expenses


367.2



349.7



1,088.9



1,020.9













Operating Income


34.2



30.9



72.8



66.8













Interest expense


(4.0)



(1.9)



(7.9)



(5.7)

Income from Continuing Operations

Before Income Taxes


30.2



29.0



64.9



61.1

Income tax expense 


11.2



10.6



28.6



22.0

Income From Continuing Operations


19.0



18.4



36.3



39.1

Income (Loss) From Discontinued Operations (net of income taxes)


0.1



(9.7)



(6.0)



(6.5)

Net Income

$

19.1


$

8.7


$

30.3


$

32.6













Other Comprehensive Income, Net of Tax:












Net Income

$

19.1


$

8.7


$

30.3


$

32.6

Defined benefit pension plans:












    Net loss and prior service cost


-



-



1.1



1.2

    Less: amortization of prior service cost

    included in net periodic pension cost


0.7



(0.3)



1.0



(0.3)

    Less: amortization of net loss included

    in net periodic pension cost


(2.7)



(2.5)



(3.5)



(2.8)

    Other Comprehensive Income


(2.0)



(2.8)



(1.4)



(1.9)

Comprehensive Income

$

17.1


$

5.9


$

28.9


$

30.7













Basic Earnings (Loss) Per Share:












Continuing operations

$

0.45


$

0.44


$

0.86


$

0.94

Discontinued operations


-



(0.23)



(0.14)



(0.16)

Net income

$

0.45


$

0.21


$

0.72


$

0.78













Diluted Earnings (Loss) Per Share:












Continuing operations

$

0.45


$

0.44


$

0.85


$

0.94

Discontinued operations


-



(0.23)



(0.14)



(0.17)

Net income

$

0.45


$

0.21


$

0.71


$

0.77













Weighted Average Number of Shares Outstanding:












Basic


42.5



41.7



42.2



41.6

Diluted


42.8



42.1



42.6



42.0













Cash Dividends Per Share

$

0.15


$

0.315


$

0.78


$

0.945













    

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In millions) (Unaudited)

 


September 30,


December 31,


2012


2011

ASSETS






Current Assets:






Cash and cash equivalents

$

11.5


$

9.8

Accounts and notes receivable, net


166.4



167.7

Inventories


4.3



4.2

Deferred income taxes


1.3



1.3

Prepaid expenses and other assets


26.8



25.1

Current assets related to discontinued operations


0.2



66.9

Total current assets


210.5



275.0

Investments in Affiliate


59.5



56.5

Property, at cost


1,779.8



1,760.7

Less accumulated depreciation and amortization


(1,003.3)



(960.2)

Property – net


776.5



800.5

Other Assets


112.0



95.2

Long-term assets related to discontinued operations


-



1,317.1

Total

$

1,158.5


$

2,544.3

LIABILITIES AND SHAREHOLDERS' EQUITY






Current Liabilities:






Notes payable and current portion of long-term debt

$

21.4


$

17.5

Accounts payable


127.0



135.5

Payroll and vacation benefits


15.9



16.0

Uninsured claims


7.3



6.5

Due to affiliate


-



2.2

Accrued and other liabilities


22.2



8.8

Current liabilities related to discontinued operations


0.1



92.2

Total current liabilities


193.9



278.7

Long-term Liabilities:






Long-term debt


307.2



180.1

Deferred income taxes


248.8



255.1

Employee benefit plans


103.3



113.0

Due to affiliate


-



0.5

Uninsured claims and other liabilities


33.4



24.3

Long-term liabilities related to discontinued operations


-



570.1

Total long-term liabilities


692.7



1,143.1







Shareholders' Equity:






Capital stock


31.9



34.0

Additional capital


251.5



238.3

Accumulated other comprehensive loss


(42.9)



(91.9)

Retained earnings


31.4



953.0

Cost of treasury stock


-



(10.9)

Total shareholders' equity


271.9



1,122.5

Total

$

1,158.5


$

2,544.3

 

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In millions) (Unaudited)

 


Nine Months Ended


September 30,


2012


2011







Cash Flows Provided by Operating Activities from Continuing Operations

$

66.5


$

71.3







Cash Flows from Investing Activities from Continuing Operations:






Capital expenditures


(30.8)



(39.5)

Proceeds from disposal of property and other assets


0.9



1.7

Deposits into Capital Construction Fund


(4.4)



(4.4)

Withdrawals from Capital Construction Fund


4.4



4.4

Contribution from A&B


26.7



28.9

Net cash used in investing activities from continuing operations


(3.2)



(8.9)







Cash Flows from Financing Activities from Continuing Operations:






Proceeds from issuance of debt, net of issuance costs


185.1



48.5

Payments of debt


(49.9)



(40.9)

Payments on line-of-credit agreements, net


(6.0)



(10.7)

Distribution upon Separation


(155.0)



-

Proceeds from issuance of capital stock


24.8



9.0

Distribution to A&B for proceeds from issuance of capital stock


(21.7)



-

Cash assumed by A&B upon Separation


(2.5)



-

Dividends paid


(33.1)



(39.9)

Net cash used in financing activities from continuing operations


(58.3)



(34.0)







Cash Flows from Discontinued Operations:






Cash flows used in operating activities of discontinued operations


(30.1)



(29.1)

Cash flows used in investing activities of discontinued operations


(18.8)



(17.8)

Cash flows from financing activities of discontinued operations


33.9



21.0

Net cash flows used in discontinued operations


(15.0)



(25.9)







Net (Decrease) Increase in Cash and Cash Equivalents


(10.0)



2.5







Cash and cash equivalents, beginning of period


21.5



14.2

Cash and cash equivalents, end of period

$

11.5


$

16.7







Other Cash Flow Information:






Interest paid

$

6.5


$

6.1

Income taxes paid

$

28.2


$

0.2







Other Non-cash Information:






Depreciation and amortization expense

$

56.0


$

53.1

Accrued dividends

$

-


$

-

Capital expenditures included in accounts payable and accrued liabilities

$

0.1


$

0.2

 

MATSON, INC. AND SUBSIDIARIES

GAAP to Non-GAAP Reconciliation

(In millions) (Unaudited)

 

Adjusted Consolidated Operating Income Reconciliation

 



Three Months Ended September 30,



2012


2011



Change

Operating Income


$

34.2


$

30.9


$

3.3

Add: Separation Cost



0.3



-



0.3

Add: Shutdown of CLX2 Cost



-



6.1



(6.1)

Adjusted Operating Income


$

34.5


$

37.0


$

(2.5)













Nine Months Ended September 30,



2012


2011



Change

Operating Income


$

72.8


$

66.8


$

6.0

Add: Separation Cost



8.6



-



8.6

Add: Shutdown of CLX2 Cost



0.5



6.1



(5.6)

Adjusted Operating Income


$

81.9


$

72.9


$

9.0


Adjusted Ocean Transportation Operating Income Reconciliation

 



Three Months Ended September 30,



2012


2011



Change

Operating Income


$

32.9


$

28.9


$

4.0

Add: Separation Cost



0.3



-



0.3

Add: Shutdown of CLX2 Cost



-



6.1



(6.1)

Adjusted Operating Income


$

33.2


$

35.0


$

(1.8)













Nine Months Ended September 30,



2012


2011



Change

Operating Income


$

69.9


$

61.2


$

8.7

Add: Separation Cost



8.6



-



8.6

Add: Shutdown of CLX2 Cost



0.5



6.1



(5.6)

Adjusted Operating Income


$

79.0


$

67.3


$

11.7

 

EBITDA Reconciliation

 



Three Months Ended September 30,



2012


2011



Change

Net Income


$

19.1


$

8.7


$

10.4

Subtract: Income (Loss) from Disc. Operations



0.1



(9.7)



9.8

Add: Income Tax Expense



11.2



10.6



0.6

Add: Interest expense



4.0



1.9



2.1

Add: Depreciation and Amortization



18.3



18.0



0.3

EBITDA(1)


$

52.5


$

48.9


$

3.6













Nine Months Ended September 30,



2012


2011



Change

Net Income


$

30.3


$

32.6


$

(2.3)

Subtract: Income (Loss) from Disc. Operations



(6.0)



(6.5)



0.5

Add: Income Tax Expense



28.6



22.0



6.6

Add: Interest expense



7.9



5.7



2.2

Add: Depreciation and Amortization



55.7



53.0



2.7

EBITDA(1)


$

128.5


$

119.8


$

8.7

    

(1)   EBITDA is defined as the sum of net income, less income or loss from discontinued operations, plus income tax expense, interest expense and depreciation and amortization.  EBITDA should not be considered as an alternative to net income (as determined in accordance with GAAP), as an indicator of our operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. Our calculation of EBITDA may not be comparable to EBITDA as calculated by other companies, nor is this calculation identical to the EBITDA used by our lenders to determine financial covenant compliance.

SOURCE Matson, Inc.

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We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...