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Northern Tier Energy Announces Record Third Quarter Adjusted EBITDA and Declares Initial Cash Distribution

- 3Q12 operating income of $199.4 million

RIDGEFIELD, Conn., Nov. 12, 2012 /PRNewswire/ -- Northern Tier Energy LP and its subsidiaries (NYSE: NTI) ("Northern Tier Energy") today reported consolidated earnings for the third quarter of 2012.  In addition, Northern Tier Energy announced a prorated cash distribution to unit holders of $1.48 per unit.

Third Quarter Results

Northern Tier Energy reported operating income of $199.4 million for the third quarter of 2012, an increase of $33.7 million compared to the third quarter of 2011.  This increase in operating income is primarily due to improved results in the Refining segment which were driven by higher refined product margins per barrel and increased throughput and sales volumes compared to the prior year period.  Adjusted EBITDA for the third quarter of 2012 was $249.5 million, an increase of $70.0 million compared to $179.5 million for the third quarter of 2011 also driven by the favorable operating results in the Refining segment.

Northern Tier Energy reported net income of $61.1 million for the third quarter of 2012 compared to $2.2 million for the third quarter of 2011.  The $58.9 million improvement from the third quarter of 2011 is primarily attributable to a $72.7 million increase in operating income in the Refining segment and an improvement of $38.1 million related to derivative activities, partially offset by a $35.1 million unfavorable impact in contingent consideration loss, an $8.0 million non-cash charge for deferred income taxes and a $4.6 million non-cash interest charge related to the write-off of deferred financing costs. 

Quarterly Distribution

The Board of Directors of Northern Tier Energy GP LLC, the general partner of Northern Tier Energy LP, declared a prorated quarterly distribution of $1.48 per unit payable in cash on November 29, 2012 to common unit holders of record at the close of business on November 21, 2012.  Prorated cash available for distribution totaled $136.1 million for the third quarter 2012.  As noted in Northern Tier Energy's IPO prospectus, the cash available for its first distribution includes cash for the period from the closing date of the IPO (July 31, 2012) through September 30, 2012.

In connection with Northern Tier Energy's recently completed debt refinancing described under the heading "Subsequent Events" below, all payment in kind (PIK) common units will convert to common units and there will be no PIK common units issued for the third quarter distribution or any prospective distribution.

Operating Segment Highlights

Refining Segment

The Refining segment's operating income was $246.7 million for the third quarter of 2012 compared to $174.0 million for the third quarter of 2011.  Refining gross product margins were $36.69 per barrel of throughput for the third quarter of 2012 compared to $28.54 per barrel for the third quarter of 2011.  This increase is primarily due to favorable crude oil price differentials versus the benchmark WTI crude oil prices in the 2012 third quarter.

In addition to higher product margins per barrel, throughput and sales volumes increased compared to the prior year quarter.  Total throughput was 87,476 barrels per day for the third quarter of 2012 compared to 84,485 barrels per day for the prior year quarter.  Sales volumes increased to 94,105 barrels per day for the third quarter of 2012 from 90,349 barrels per day for the third quarter of 2011.  The higher refinery throughput in the third quarter of 2012 compared to the same prior year period is primarily attributable to record productivity at the St. Paul Park refinery. 

Retail Segment

Retail operating income was $1.2 million in the third quarter of 2012 compared to $4.9 million in the third quarter of 2011.  Fuel margins were $0.12 per gallon for the third quarter of 2012 compared to $0.22 per gallon for the third quarter of 2011.  This reduction in fuel margin per gallon relates to competitive pricing actions that occurred during the middle of the third quarter of 2012 in response to reduced sales volumes across the local market.  Fuel gallons sold at company-operated retail stores declined by 6.2% from the prior year period.  This sales volume decline is generally correlated to the broader market decline for retail fuel sales in the period.  Despite the reduction in fuel gallons sold, the Retail segment experienced higher non-fuel revenues driven primarily by merchandise revenues at company-operated stores.

Liquidity and Capital Spending

Northern Tier Energy's primary sources of liquidity are cash generated from operating activities and its asset backed revolving credit facility (the "ABL Facility").  As of September 30, 2012, the Company's cash on hand and availability under the ABL Facility amounted to $491 million as compared to $232 million as of December 31, 2011 and $148 million as of the closing date of the Marathon Acquisition on December 1, 2010.  The September 30, 2012 cash on hand balance of $323.5 million includes the net use of cash related to the completion of Northern Tier Energy LP's IPO.

Cash provided by operating activities for the third quarter of 2012 was $80.0 million compared to $61.1 million for the third quarter of 2011.  The cash provided in the 2012 period relates primarily to the strength of the Refining segment's operating results partially offset by $132.0 million of payments made out of the IPO proceeds to settle deferred derivative obligations and to settle the contingent consideration arrangements.  Capital expenditures for the third quarter of 2012 were $6.3 million

Subsequent Events

On October 17, 2012, Northern Tier Energy LLC, a wholly-owned subsidiary of Northern Tier Energy LP, announced the commencement of a cash tender offer for any and all of the $261 million outstanding principal amount of its existing senior secured notes. In conjunction with the tender offer, Northern Tier Energy LLC solicited consents to eliminate most of the covenants and certain events of default applicable to the existing senior secured notes.  At the completion of the early tender period on November 1, 2012, $253.1 million of the outstanding principal amount had been tendered and related consents received.   

As of November 8, 2012, Northern Tier Energy LLC amended the indenture governing the existing notes in accordance with the approved consents.  As a result of the amendment, the PIK common units of Northern Tier Energy LP were converted into Northern Tier Energy LP common units with the same rights and limitations as the existing common units, effective November 9, 2012.  The supplemental indenture also amended covenants to ease the restrictions of cash distributions to common unit holders. As a result of the conversion of the PIK common units, there will be no distribution on such converted common units in the form of additional PIK common units, and as a result, there will be no dilution to the per unit cash distributions of common unit holders. 

On November 8, 2012, Northern Tier Energy completed a private offering of $275 million in aggregate principal amount of 7.125% senior secured notes due 2020.  The net proceeds of this offering were used to fund a portion of the tender offer for its existing senior secured notes due 2017. 

Conference Call Information

Northern Tier Energy will hold a conference call to discuss its third quarter 2012 results on Tuesday, November 13, 2012 at 11:00 AM Eastern Standard Time.  The call will be webcast live over the internet from Northern Tier Energy's website at www.ntenergy.com.  The call can also be heard by dialing (866) 783-2142, passcode: 64550770The audio replay will be available on the website through November 26, 2012.

About Northern Tier Energy

Northern Tier Energy LP (NYSE: NTI) is an independent downstream energy company with refining, retail and pipeline operations that serves the PADD II region of the United States.  Northern Tier Energy operates a 84,500 barrels per stream day refinery located in St. Paul Park, Minnesota.  Northern Tier Energy also operates 166 convenience stores and supports 68 franchised convenience stores, primarily in Minnesota and Wisconsin, under the SuperAmerica trademark, and owns a bakery and commissary under the SuperMom's brand.  Northern Tier Energy is headquartered in Ridgefield, Connecticut. 

Non-GAAP Measures

This earnings release includes non-GAAP measures including adjusted EBITDA and cash available for distribution.  Northern Tier Energy believes that these non-GAAP financial measures provide useful information about its operating performance.  However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives to comparable GAAP financial measures.  Northern Tier Energy's non-GAAP financial measures may also differ from similarly named measures used by other companies.  See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.

Forward-Looking Statements

This press release contains certain "forward-looking statements" which reflect Northern Tier Energy's views and assumptions on the date of this press release regarding future events. They involve known and unknown risks, uncertainties and other factors, many of which may be beyond its control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. All forward-looking statements speak only as of the date hereof.  Northern Tier Energy undertakes no obligation to update or revise publicly any such forward-looking statements. Northern Tier Energy cautions you not to place undue reliance on these forward-looking statements. Please refer to Northern Tier Energy's filings with the SEC for more detailed information regarding these risks, uncertainties and assumptions.

This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of Northern Tier Energy LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, Northern Tier Energy LP's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

NORTHERN TIER ENERGY LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011









Revenue

$  1,263.5


$  1,159.5


$  3,417.8


$  3,192.0









Costs, expenses and other:








Cost of sales

929.2


890.2


2,594.0


2,578.2

Direct operating expenses

66.9


67.3


189.1


192.5

Turnaround and related expenses

2.1


-


17.1


22.5

Depreciation and amortization 

8.3


7.4


24.6


22.3

Selling, general and administrative 

22.0


24.4


67.1


63.3

Formation costs

-


1.7


1.0


6.1

Contingent consideration loss (income)

38.5


3.4


104.3


(37.6)

Other income, net

(2.9)


(0.6)


(6.2)


(2.4)

Operating income

199.4


165.7


426.8


347.1

Net losses on derivative activities

(115.0)


(153.1)


(269.2)


(580.9)

Interest expense, net

(15.6)


(10.4)


(36.7)


(30.6)

Income (loss) before income taxes

68.8


2.2


120.9


(264.4)









Income tax provision

(7.7)


-


(7.8)


-

Net income (loss)

$        61.1


$          2.2


$     113.1


$   (264.4)

 

NORTHERN TIER ENERGY LP

SELECTED OPERATING SEGMENT DATA

(in millions, unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011









OPERATING INCOME:








Refining

$   246.7


$   174.0


$   560.3


$   326.7

Retail

1.2


4.9


5.2


7.2

Corporate and unallocated costs

(48.5)


(13.2)


(138.7)


13.2









TOTAL OPERATING INCOME

199.4


165.7


426.8


347.1

Net losses on derivative activities

(115.0)


(153.1)


(269.2)


(580.9)

Interest expense, net

(15.6)


(10.4)


(36.7)


(30.6)

Income tax provision

(7.7)


-


(7.8)


-









NET INCOME (LOSS)

$     61.1


$        2.2


$   113.1


$ (264.4)


NORTHERN TIER ENERGY LP

SELECTED BALANCE SHEET AND CASH FLOW DATA

(in millions, unaudited)







September 30,


December 31,



2012


2011












Cash and Cash Equivalents

$               323.5


$             123.5


Total Assets

$            1,177.4


$             998.8


Total Debt and Financing Obligations

$               268.5


$             301.9


Equity

$               537.9


$             312.2













Nine Months Ended,



September 30,



2012


2011







Net cash provided by operating activities

$               174.8


$             194.9


Net cash used in investing activities

(12.0)


(138.5)


Net cash provided by (used in) financing activities

37.2


(2.5)







Net increase in cash and cash equivalents

$               200.0


$               53.9



NORTHERN TIER ENERGY LP

ADJUSTED EBITDA RECONCILIATION

(in millions, unaudited)










Three Months Ended September 30, 2012


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss) 

$   246.7


$       1.2


$ (186.8)


$     61.1

Adjustments:








Interest expense

-


-


15.6


15.6

Income tax provision

-


-


7.7


7.7

Depreciation and amortization

6.4


1.8


0.1


8.3

EBITDA subtotal

253.1


3.0


(163.4)


92.7

Minnesota Pipe Line proportionate EBITDA

0.7


-


-


0.7

Turnaround and related expenses

2.1


-


-


2.1

Equity-based compensation expense

-


-


0.5


0.5

Unrealized losses on derivative activities

-


-


70.3


70.3

Contingent consideration loss

-


-


38.5


38.5

Realized losses on derivative activities

-


-


44.7


44.7

 Adjusted EBITDA (a) 

$   255.9


$       3.0


$     (9.4)


$   249.5




Three Months Ended September 30, 2011


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss)  

$   174.0


$       4.9


$ (176.7)


$       2.2

Adjustments:








Interest expense

-


-


10.4


10.4

Depreciation and amortization

5.4


2.0


-


7.4

EBITDA subtotal

179.4


6.9


(166.3)


20.0

Minnesota Pipe Line proportionate EBITDA

0.9


-


-


0.9

Equity-based compensation expense

-


-


0.4


0.4

Unrealized losses on derivative activities

-


-


40.6


40.6

Contingent consideration loss

-


-


3.4


3.4

Formation costs

-


-


1.7


1.7

Realized losses on derivative activities

-


-


112.5


112.5

 Adjusted EBITDA (a) 

$   180.3


$       6.9


$     (7.7)


$   179.5



NORTHERN TIER ENERGY LP

ADJUSTED EBITDA RECONCILIATION

(in millions, unaudited)










Nine Months Ended September 30, 2012


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss) 

$   560.3


$       5.2


$ (452.4)


$   113.1

Adjustments:








Interest expense

-


-


36.7


36.7

Income tax provision

-


-


7.8


7.8

Depreciation and amortization

18.5


5.6


0.5


24.6

EBITDA subtotal

578.8


10.8


(407.4)


182.2

Minnesota Pipe Line proportionate EBITDA

2.1


-


-


2.1

Turnaround and related expenses

17.1


-


-


17.1

Equity-based compensation expense

-


-


1.4


1.4

Unrealized gains on derivative activities

-


-


(32.6)


(32.6)

Contingent consideration loss

-


-


104.3


104.3

Formation costs

-


-


1.0


1.0

Loss on early extinguishment of derivatives

-


-


136.8


136.8

Realized losses on derivative activities

-


-


165.0


165.0

 Adjusted EBITDA (a) 

$   598.0


$     10.8


$   (31.5)


$   577.3




Nine Months Ended September 30, 2011


 Refining 


 Retail 


 Other 


 Total 

(in millions)








 Net income (loss) 

$   326.7


$       7.2


$ (598.3)


$ (264.4)

Adjustments:








Interest expense

-


-


30.6


30.6

Depreciation and amortization

16.0


6.0


0.3


22.3

EBITDA subtotal

342.7


13.2


(567.4)


(211.5)

Minnesota Pipe Line proportionate EBITDA

2.7


-


-


2.7

Turnaround and related expenses

22.5


-


-


22.5

Equity-based compensation expense

-


-


1.1


1.1

Unrealized losses on derivative activities

-


-


334.5


334.5

Contingent consideration income

-


-


(37.6)


(37.6)

Formation costs

-


-


6.1


6.1

Realized losses on derivative activities

-


-


246.4


246.4

 Adjusted EBITDA (a) 

$   367.9


$     13.2


$   (16.9)


$   364.2

(a) Adjusted EBITDA is not a presentation made in accordance with GAAP and Northern Tier Energy's computation of Adjusted EBITDA may vary from others in its industry.  In addition, Adjusted EBITDA contains some, but not all, adjustments that are taken into account in the calculation of the components of various covenants in the agreements governing the Secured Notes, ABL Facility, earn-out, margin support agreement and management services agreement.  Adjusted EBITDA should not be considered as an alternative to operating income or net income (loss) as measures of operating performance.  In addition, Adjusted EBITDA is not presented as, and should not be considered, an alternative to cash flow from operations as a measure of liquidity.  Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes and depreciation and amortization, adjusted for EBITDA from the Minnesota Pipe Line operations, turnaround and related expenses, equity-based compensation expense, gains or losses from derivative activities, fair value adjustments for contingent consideration arrangements and costs related to Northern Tier Energy's formation. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of the results as reported under GAAP. 

NORTHERN TIER ENERGY LP

CASH AVAILABLE FOR DISTRIBUTION RECONCILIATION

For the Three Months Ended September 30, 2012

(in millions, unaudited)



 Net income 

$          61.1

Adjustments:


Interest expense

15.6

Income tax provision

7.7

Depreciation and amortization

8.3

EBITDA subtotal

92.7

Minnesota Pipe Line proportionate EBITDA

0.7

Turnaround and related expenses

2.1

Equity-based compensation expense

0.5

Unrealized loses on derivative activities

70.3

Contingent consideration loss

38.5

Realized losses on derivative activities

44.7

 Adjusted EBITDA (a) 

249.5

Cash interest expense

(9.9)

Current tax provision

(0.1)

Minnesota Pipe Line proportionate EBITDA

(0.7)

Realized losses on derivative activities

(44.7)

Capital expenditures 

(6.3)

Reserve for turnaround and related expenses

(10.0)

Working capital impacts

19.9

 Cash available for distribution (b) 

197.7

 Adjustment for period prior to initial public offering 

(61.6)

 Cash available for distribution subsequent to initial public offering  

$       136.1

(b) Cash available for distribution is a non-GAAP performance measure that Northern Tier Energy believes is important to investors in evaluating its overall cash generation performance.  Cash available for distribution should not be considered as an alternative to operating income or net income (loss) as measures of operating performance.  In addition, cash available for distribution is not presented as, and should not be considered, an alternative to cash flow from operations as a measure of liquidity. Northern Tier Energy has reconciled cash available for distribution to adjusted EBITDA and in addition reconciled adjusted EBITDA to net income.  Cash available for distribution has limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of the results as reported under GAAP.  Northern Tier Energy's calculation of cash available for distribution may differ from similar calculations of other companies in its industry, thereby limiting its usefulness as a comparative measure. Cash available for distribution for each quarter will be determined by the board of directors of Northern Tier Energy's general partner following the end of such quarter.

NORTHERN TIER ENERGY LP

OTHER NON-GAAP PERFORMANCE MEASURES 

(in millions, unaudited)


















Three Months Ended,


Nine Months Ended,


September 30,


September 30,


2012


2011


2012


2011









Refining revenue

$ 1,151.1


$ 1,034.0


$ 3,084.8


$ 2,857.7

Refining cost of sales

855.8


812.2


2,379.3


2,370.7

Refining gross product margin (c)

$    295.3


$    221.8


$    705.5


$    487.0


















Three Months Ended,


Nine Months Ended,


September 30,


September 30,


2012


2011


2012


2011









Retail gross margin:








Fuel margin

$         9.7


$      19.1


$      39.8


$      49.0

Merchandise margin

25.4


23.8


68.4


64.7

Other margin

3.9


4.6


10.1


13.1









Retail gross margin

39.0


47.5


118.3


126.8

Expenses:








 Direct operating expenses 

30.4


33.3


89.6


93.8

 Depreciation and amortization  

1.8


2.0


5.6


6.0

 Selling, general and administrative 

5.6


7.3


17.9


19.8









Retail segment operating income (d)

$         1.2


$         4.9


$         5.2


$         7.2

(c) Refining gross product margin per barrel is a financial measurement calculated by subtracting refining costs of sales from total refining revenues and dividing the difference by the total throughput or total refined products sold for the respective periods presented.  Refining gross product margin is a non-GAAP performance measure that Northern Tier Energy believes is important to investors in evaluating its refining segment performance as a general indication of the amount above its cost of products that it is able to sell refined products.  Each of the components used in these calculations (revenues and cost of sales) can be reconciled directly to Northern Tier Energy's statements of operations.  Northern Tier Energy's calculation of refining gross product margin may differ from similar calculations of other companies in its industry, thereby limiting its usefulness as a comparative measure.

(d) Retail fuel gross margin and retail merchandise gross margin are non-GAAP performance measures that Northern Tier Energy believes are important to investors in evaluating its retail performance.  Northern Tier Energy's calculation of retail fuel margin and retail merchandise margin may differ from similar calculations of other companies in its industry, thereby limiting their usefulness as comparative measures.

NORTHERN TIER ENERGY LP

SUPPLEMENTAL OPERATING DATA

(unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2012


2011


2012


2011









REFINING SEGMENT
















Key Operating Statistics








   Total refinery production (bpd)

88,413


85,564


82,330


81,173

   Total refinery throughput (bpd)

87,476


84,485


81,697


80,694

   Refined products sold (bpd)

94,105


90,349


86,960


85,170









   Per barrel of throughput:








      Refining gross margin

$36.69


$28.54


$31.52


$22.11

      Direct operating expenses

$4.54


$4.36


$4.45


$4.48

   Per barrel of refined products sold:








      Refining gross margin

$34.11


$26.69


$29.61


$20.95

      Direct operating expenses

$4.22


$4.08


$4.18


$4.24









Refinery product yields (bpd):








   Gasoline

41,623


41,611


39,578


40,238

   Distillate

28,466


25,755


26,464


23,851

   Asphalt

12,241


14,165


11,011


11,169

   Other

6,083


4,033


5,277


5,915

      Total

88,413


85,564


82,330


81,173

















RETAIL SEGMENT
















Company operated stores:








 Fuel gallons sold (in millions) 

80.1


85.4


231.6


245.8

 Fuel margin per gallon 

$0.12


$0.22


$0.17


$0.20

 Merchandise sales (in millions) 

$99.7


$92.3


$269.3


$253.9

 Merchandise margin % 

25.5%


25.7%


25.4%


25.5%

 Number of stores at period end 

166


166


166


166

Note: See "Management's Discussion and Analysis of Financial Condition and Results of Operations" included within Northern Tier Energy's quarterly report on Form 10-Q for further information on operating statistic definitions.

SOURCE Northern Tier Energy LP

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SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, 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. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
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The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
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...