Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

News Feed Item

Look For Under Pressure DSS Stock To Get A Boost From New IP Leadership Following Corporate Merger Along With Improved Third Quarter Results

CHICAGO, Dec. 3, 2012 /PRNewswire/ - Lexington Technology Group Inc. (LTG) recently appointed veteran IP executive Jeff Ronaldi as chief executive officer of the company, as it prepares for a merger with Document Security Systems Inc. (NYSE MKT: DSS).  Ronaldi will continue as CEO following the merger.  Ronaldi, a former board advisor to Lexington, replaced Will Rosellini, who now assumes an advisor role to LTG's wholly owned subsidiary, Bascom Research, LLC.

Ronaldi has spent the last ten years specializing in monetizing patents.  Ronaldi brings expertise in leading successful patent lawsuits, including winning a $50 million verdict for Shelbyzyme against Genzyme and a $20 million willful infringement verdict versus Citrix Systems Inc. in 2012. He also managed a venture capital group for SPX Corp, in which he was behind a patent infringement lawsuit against Microsoft that resulted in a $62.3 million verdict, which later settled for $60 million. Prior to LTG, Ronaldi served as CEO of Turtle Bay Technologies, Ltd, a wholly owned subsidiary of Juridica Capital. There, he used his financial expertise to determine the value of different patent technologies.

"In many ways, leading Lexington is a perfect opportunity to leverage the two phases of my career: leading technology startups and monetizing IP," Ronaldi stated about his appointment. "One of the things that attracted me to Lexington is the quality of the portfolio. I've been monetizing patents for more than 10 years and I've had a lot of success. I expect this portfolio to be every bit as successful as any of the others I've managed."

Also, DSS has promoted Robert Bzdick to acting CEO. Bzdick , DSS's current President and Chief Operating Officer, brings an extensive background in managing manufacturing operations. He will assume this role until the merger of the two companies become finalized, projected for the in the first half of 2013.

While LTG owns intellectual property assets, DSS specializes in anticounterfeit, authenticication, and mass-serialization technologies.  Its technologies are designed to determine the authenticity of different products in various forums. This combination will help strengthen DSS's intellectual property portfolio and potentially enhance its revenue through the monetization of the combined company's intellectual property assets.  If the merger closes, LTG will bringing over $7 to $10 million in debt free cash to DSS.

Bascom Research
LTG acquired patent assets from Thomas L. Bascom, president of LinkSpace, LLC. LTG and Linksys are currently collaborating, through Bascom Research, to pursue research and development of radio frequency identification (RFID) software for use in the electronic health records space.  Bascom Research hopes to increase the safety of patents in hospitals through utilizing its assets with LinkSpace's enterprise-level software framework and DSS's digital security.

Bascom Research also owns several patents regarding the means for companies to utilize social media. For the most part, Bascom Research is enforcing these patents by suing major social media platforms for patent infringement. Bascom Research could bring hundreds of millions of dollars to the new combined LTG/DSS entity if it can win any of its lawsuits filed against five companies, including Facebook (FB), LinkedIn (LNKD), and Jive Software (JIVE), which are pending in federal court for the Eastern District of Virgina.  For its claims against Facebook, Bascom is seeking past damages dating back to 2006. Since that time, the social media giant has generated $7.38 billion, so a potential damages award could be massive.  A hearing is scheduled for December 7,  2012 to determine whether the case will remain before the "rocket docket" in Virginia or be moved elsewhere.

DSS 3rd Quarter Results
DSS reported several improvements in its Q3 results including a 15% revenue jump from Q3 of 2011. Year-to-date, total revenue is $11.7 million, which is a 27% increase from 2011 and put ths company on pace for its strongest year.

Increased sales in the packaging division led the way for DSS, rising 39% during the quarter. Licensing and digital sales also increased by 13% from the prior quarter. Overall, for the first nine months of 2012, packaging sales are up by 54% from the first nine month of 2011 and licensing and digital sales have increased 27%.

DSS also made strides in its gross profit performance during Q3, which saw gross profit increase by 20% from Q3 2011. This resulted in gross profits reaching $1.52 million for the quarter. DSS has made efforts to streamline operating costs and focus its attention on sales efforts with higher margin opportunities. These decisions have paid off for DSS mainly in its printing division, where gross profit for the year to date has increased by 149%.

When measuring performance using adjusted EBITDA, the third quarter reflected a 7% improvement over adjusted EBITDA of Q3 of 2011.

These results seem to be promising for DSS, as it has an opportunity to build on its 3rd quarter momentum in the fourth quarter, which has historically been the company's strongest.

DSS's former CEO Patrick White stated, "We are very pleased with our third quarter results, where we saw strength in all of our business divisions.  As we enter the final quarter of 2012, we expect to continue to build upon our revenue and gross profit growth that allowed us to reach the important financial milestone of positive adjusted EBITDA in the month of September."

DSS stock last traded at $2.70 with a market capitalization of $58.6 million. Over the last year, the company has traded between $2.26 and $5.12 per share.

SOURCE Lexington Technology Group Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...