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Pioneer Energy Services Reports Fourth Quarter 2012 Results

SAN ANTONIO, Texas, Feb. 13, 2013 /PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today reported financial and operating results for the three and twelve months ended December 31, 2012. Financial and operational highlights include: 

  • Two new-build drilling rigs were added in the fourth quarter and one more has been added since year end;
  • Four well servicing rigs and two coiled tubing units have been added since the end of the third quarter;
  • All eight drilling rigs in Colombia are operating under contract;
  • 43 of the Company's 59 working drilling rigs, or 73%, are operating under term drilling contracts;
  • 93% of our working drilling rigs and 78% of production services assets are operating on wells that are targeting or producing oil or liquids-rich natural gas.

Consolidated Financial Results

Revenues for the fourth quarter of 2012 were $227.9 million, flat when compared to revenues in the third quarter of 2012 ("the prior quarter") and a 12% increase over $203.7 million of revenues for the fourth quarter of 2011 ("the year-earlier quarter"). The increase from the year-earlier quarter was primarily due to fleet additions in both the Drilling Services Segment and the Production Services Segment and to the contribution from our coiled tubing business acquired at year end 2011.

Net income for the fourth quarter was $3.6 million, or $0.06 per diluted share, compared with $2.6 million, or $0.04 per diluted share in the prior quarter and $6.8 million, or $0.11 per diluted share in the year-earlier quarter.

Fourth quarter Adjusted EBITDA(1) was $60.3 million, an 8% increase from $55.6 million in the prior quarter and a 9% increase from $55.5 million in the year-earlier quarter.

Operating Results

Drilling Services Segment

Revenue for the Drilling Services Segment was $129.9 million in the fourth quarter, a 3% increase from the prior quarter and a 9% increase from the year-earlier quarter. Fourth quarter utilization was 87%, up slightly from the prior quarter, and flat with the year-earlier quarter.

We deployed two new-build drilling rigs in the fourth quarter and one more rig thus far in 2013 which brings our current fleet count to 70 drilling rigs. Our drilling rig fleet count has fluctuated due to the addition of eight new-build rigs, offset by the retirement of seven lower horsepower rigs effective September 30, 2011 and two more rigs effective March 31, 2012. We are currently deploying our ninth drilling rig and we plan to deploy the tenth new-build drilling rig by the end of the first quarter of 2013.

Average drilling revenues per day in the fourth quarter were $23,967, compared to $24,101 in the prior quarter and $23,169 in the year-earlier quarter. The slight sequential decrease was primarily due to lower average drilling revenues per day during the initial mobilization period for two rigs deployed in Colombia and due to moderate pricing pressure in the U.S. market. The decrease in average drilling revenues per day was partially offset by the impact of the new-build rigs and higher turnkey revenues. Drilling Services margin(2) per day was $8,103 in the fourth quarter as compared to $7,187 in the prior quarter and $7,686 in the year-earlier quarter. Drilling Services margin per day was higher than both of the comparative periods primarily due to the earnings benefit of deploying our new-build rigs. Additionally, our continued focus on safety performance helped us lower expenses and enhance margin.

Production Services Segment

Revenue for the Production Services Segment was $98.0 million in the fourth quarter, down 6% from the prior quarter and up 16% from the year-earlier quarter. Revenue declined sequentially as expected due to fewer daylight working hours, holiday downtime and a pull back by some clients on spending at year-end. Production Services margin(2) as a percentage of revenue was 38%, compared to 37% in the prior quarter and 42% in the year-earlier quarter. Well servicing rig utilization declined to 83% from 91% in the prior quarter and 86% in the year-earlier quarter, while pricing was $601 per hour in the fourth quarter compared to $606 in the prior quarter and $577 in the year-earlier quarter. 

"We have almost completed our new-build drilling rig program, with our final two rigs scheduled to go to work by the end of the first quarter," said Wm. Stacy Locke, President and CEO of Pioneer Energy Services.  "We have been pleased with the program and over time have reduced the initial start-up costs associated with deploying each new rig. They are performing well, and under their multi-year contracts, they will generate substantial cash flows to support our shift in strategy towards debt reduction in 2013. 

"In Colombia, we again have all eight drilling rigs working with six of these rigs working under contract extensions through March.  We are currently in discussions with our client on contract renewal terms. 

"Fourth quarter Drilling Services Segment utilization was better than expected despite some reductions in client spending. We continue to see some pricing pressure on our drilling operations in South Texas and West Texas, but we believe prices could be stabilizing in other regions of the U.S. In the first quarter of 2013, we expect drilling rig utilization to average between 81% and 83% and Drilling Services Segment margin to be approximately $7,300 to $7,600 per day.

"Operating results for our Production Services Segment in the fourth quarter were impacted by typical seasonality and year-end client slow-downs.  We added four well servicing rigs and two coiled tubing units in the fourth quarter and we expect to add another well servicing rig in the first quarter of 2013.  We saw some improvement in the operating results of our coiled tubing business as we continued to focus on driving better performance of that group. 

"We believe pricing has stabilized in most areas for Production Services and we could see some improved activity later in the year as clients resume spending. Production Services revenues in the first quarter are expected to be flat, and margin as a percentage of revenues is expected be flat to down 2% as compared to the fourth quarter. In Production Services, the first quarter is typically the weakest quarter of the year," Locke said.

Liquidity

Working capital was $62.2 million at December 31, 2012, compared to $129.9 million at December 31, 2011. Our cash and cash equivalents at year-end 2012 were $23.7 million, down from $86.2 million at year-end 2011. 

The change in cash and cash equivalents during 2012 was primarily due to $364.3 million used for purchases of property and equipment, partially offset by $199.4 million of cash provided by operating activities and $99.1 million of net proceeds from debt borrowings.

As of January 31, 2013 we had $100 million outstanding and $9.0 million in committed letters of credit under our $250 million Revolving Credit Facility, leaving borrowing availability of $141 million.

Capital Expenditures

Cash capital expenditures in the fourth quarter were $73.3 million, including capitalized interest, bringing capital expenditures for the full year to $364.3 million. We estimate our total capital expenditures in 2013 will be between $140 million and $160 million.  The 2013 capital expenditure budget includes funding for the completion of the remaining new-build drilling rigs, upgrades to certain drilling rigs, additional Production Services equipment and routine capital expenditures. We expect to fund this lower capital expenditure program from operating cash flow in excess of our working capital requirements, and we plan to reduce debt levels.

Conference Call

Pioneer Energy Services' management team will hold a conference call today at 11:00 a.m. Eastern Time (10:00 a.m. Central Time), to discuss these results. To participate in the call, dial (480) 629-9835 10 minutes early and ask for the Pioneer Energy Services' conference call. A replay will be available after the call and will be accessible until February 20. To access the replay, dial (303) 590-3030 and enter the pass code 4589184#.

The conference call will also be webcast on the Internet and accessible from Pioneer Energy Services' Web site at www.pioneeres.com. To listen to the live call, visit Pioneer Energy Services' Web site at least 10 minutes early to register and download any necessary audio software.  An archive will be available shortly after the call. For more information, please contact Donna Washburn at DRG&L at (713) 529-6600 or e-mail [email protected].

About Pioneer

Pioneer Energy Services provides contract land drilling services to independent and major oil and gas operators in Texas, Louisiana, the Mid-Continent, Rocky Mountain and Appalachian regions and internationally in Colombia through its Drilling Services Segment. Pioneer also provides well, wireline, coiled tubing and fishing and rental services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky Mountain regions through its Production Services Segment.

Cautionary Statement Regarding Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations

Statements we make in this news release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements that are subject to risks, uncertainties and assumptions. Our actual results, performance or achievements, or industry results, could differ materially from those we express in this news release as a result of a variety of factors, including general economic and business conditions and industry trends; levels and volatility of oil and gas prices; decisions about onshore exploration and development projects to be made by oil and gas exploration and production companies; risks associated with economic cycles and their impact on capital markets and liquidity; the continued demand for the drilling services or production services in the geographic areas where we operate; the highly competitive nature of our business; our future financial performance, including availability, terms and deployment of capital; future compliance with covenants under our senior secured revolving credit facility and our senior notes; the supply of marketable drilling rigs, well servicing rigs, coiled tubing and wireline units within the industry; the continued availability of drilling rig, well servicing rig, coiled tubing and wireline unit components; the continued availability of qualified personnel; the success or failure of our acquisition strategy, including our ability to finance acquisitions, manage growth and effectively integrate acquisitions; and changes in, or our failure or inability to comply with, governmental regulations, including those relating to the environment. We have discussed many of these factors in more detail in our annual report on Form 10-K for the year ended December 31, 2012. These factors are not necessarily all the important factors that could affect us. Unpredictable or unknown factors we have not discussed in this news release, or in our annual report on Form 10-K, could also have material adverse effects on actual results of matters that are the subject of our forward-looking statements.  All forward-looking statements speak only as of the date on which they are made and we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.  We advise our shareholders that they should (1) be aware that important factors not referred to above could affect the accuracy of our forward-looking statements and (2) use caution and common sense when considering our forward-looking statements.

This news release contains non-GAAP financial measures as defined by SEC Regulation G.  A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided in the following tables.













(1)

Adjusted EBITDA is a financial measure that is not in accordance with GAAP, and should not be considered (i) in isolation of, or as a substitute for, net income (loss), (ii) as an indication of operating performance or cash flows from operating activities or (iii) as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use. We define Adjusted EBITDA as income (loss) before interest income (expense), taxes, depreciation, amortization and any impairments. We use this measure, together with our GAAP financial metrics, to assess our financial performance and evaluate our overall progress towards meeting our long-term financial objectives. We believe that this non-GAAP financial measure is useful to investors and analysts in allowing for greater transparency of our operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA, as we calculate it, may not be comparable to Adjusted EBITDA measures reported by other companies. A reconciliation of Adjusted EBITDA to net income (loss) is included in the tables to this press release.





(2)

Drilling Services margin represents contract drilling revenues less contract drilling operating costs. Production Services margin represents production services revenues less production services operating costs. We believe that Drilling Services margin and Production Services margin are useful measures for evaluating financial performance, although they are not measures of financial performance under GAAP. However, Drilling Services margin and Production Services margin are common measures of operating performance used by investors, financial analysts, rating agencies and Pioneer management. Drilling Services margin and Production Services margin as presented may not be comparable to other similarly titled measures reported by other companies. A reconciliation of Drilling Services margin and Production Services margin to net income (loss) as reported is included in the tables to this press release.

 

 
























- Financial Statements and Operating Information Follow -

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share data)



Three months ended


Years Ended


December 31,


September 30,


December 31,


2012


2011


2012


2012


2011


(unaudited)


(audited)

Revenues:










Drilling services

$

129,853


$

118,859


$

125,662


$

498,867


$

433,902

Production services

98,015


84,797


104,111


420,576


282,039

Total revenues

227,868


203,656


229,773


919,443


715,941











Costs and expenses:










Drilling services

85,950


79,430


88,188


333,846


292,559

Production services

61,001


48,989


65,395


252,775


164,365

Depreciation and amortization

44,288


35,160


42,067


164,717


132,832

General and administrative

20,926


19,232


21,269


85,603


67,318

Bad debt expense (recovery)

75


548


(368)


(440)


925

Impairment of equipment

99




1,131


484











Total costs and expenses

212,339


183,359


216,551


837,632


658,483

Income from operations

15,529


20,297


13,222


81,811


57,458











Other (expense) income:










Interest expense

(10,391)


(8,062)


(9,453)


(37,049)


(29,721)

Other

365


52


307


1,624


(6,904)

Total other expense

(10,026)


(8,010)


(9,146)


(35,425)


(36,625)











Income before income taxes

5,503


12,287


4,076


46,386


20,833

Income tax expense

(1,943)


(5,469)


(1,461)


(16,354)


(9,656)











Net income

$

3,560


$

6,818


$

2,615


$

30,032


$

11,177











Income per common share:










Basic

$

0.06


$

0.11


$

0.04


$

0.49


$

0.19

Diluted

$

0.06


$

0.11


$

0.04


$

0.48


$

0.19











Weighted-average number of shares outstanding:










Basic

61,888


61,380


61,881


61,780


57,390

Diluted

62,900


62,568


62,825


62,762


58,779

 

 

 





PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(audited)






December 31,

2012


December 31,

2011





ASSETS




Current assets:




Cash and cash equivalents

23,733



86,197


Receivables, net of allowance for doubtful accounts

158,844



145,234


Deferred income taxes

11,058



15,433


Inventory

12,111



11,184


Prepaid expenses and other current assets

13,040



11,564


Total current assets

218,786



269,612






Net property and equipment

1,014,340



793,956


Intangible assets, net of accumulated amortization

43,843



52,680


Goodwill

41,683



41,683


Noncurrent deferred income taxes

5,519



735


Other long-term assets

15,605



14,088


Total assets

$

1,339,776



$

1,172,754






LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

83,823



$

66,440


Current portion of long-term debt

872



872


Deferred revenues

3,880



3,966


Accrued expenses

67,975



68,402


Total current liabilities

156,550



139,680






Long-term debt, less current portion

518,725



418,728


Noncurrent deferred income taxes

108,838



94,745


Other long-term liabilities

7,983



9,156


Total liabilities

792,096



662,309


Total shareholders' equity

547,680



510,445


Total liabilities and shareholders' equity

$

1,339,776



$

1,172,754


 

 



PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

(audited)




Years Ended


December 31,


2012


2011





Cash flows from operating activities:




Net income

$

30,032


$

11,177

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

164,717


132,832

Allowance for doubtful accounts

76


787

(Gain) loss on dispositions of property and equipment

(1,199)


151

Stock-based compensation expense

7,319


6,705

Amortization of debt issuance costs, discount and premium

2,985


3,302

Impairment of equipment

1,131


484

Deferred income taxes

13,303


8,098

Change in other long-term assets

(3,865)


2,828

Change in other long-term liabilities

(1,173)


(623)

Changes in current assets and liabilities

(13,960)


(20,862)

Net cash provided by operating activities

199,366


144,879





Cash flows from investing activities:




Acquisition of production services business of Go-Coil


(109,035)

Acquisition of other production services businesses


(6,502)

Purchases of property and equipment

(364,324)


(210,066)

Proceeds from sale of property and equipment

3,093


5,550

Proceeds from sale of auction rate securities


12,569

Net cash used in investing activities

(361,231)


(307,484)





Cash flows from financing activities:




Debt repayments

(874)


(113,158)

Proceeds from issuance of debt

100,000


250,750

Debt issuance costs

(58)


(7,285)

Proceeds from exercise of options

693


2,884

Proceeds from stock, net of underwriters' commissions and offering costs of $5,707


94,343

Purchase of treasury stock

(360)


(743)

Net cash provided by financing activities

99,401


226,791





Net (decrease) increase in cash and cash equivalents

(62,464)


64,186

Beginning cash and cash equivalents

86,197


22,011

Ending cash and cash equivalents

$

23,733


$

86,197

 

 





















PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Operating Statistics

(in thousands, except average number of drilling rigs, utilization rate, revenue days and per day information)

(unaudited)






Three months ended


Years Ended


December 31,


September 30,


December 31,


2012


2011


2012


2012


2011











Drilling Services Segment:










Revenues

$

129,853


$

118,859


$

125,662


$

498,867


$

433,902

Operating costs

85,950


79,430


88,188


333,846


292,559

Drilling Services margin (1)

$

43,903


$

39,429


$

37,474


$

165,021


$

141,343











Average number of drilling rigs

67.7


64.0


66.0


65.0


69.3

Utilization rate

87%


87%


86%


87%


73%

Revenue days

5,418


5,130


5,214


20,728


18,383











Average revenues per day

$

23,967


$

23,169


$

24,101


$

24,067


$

23,603

Average operating costs per day

15,864


15,483


16,914


16,106


15,915

Drilling Services margin per day (2)

$

8,103


$

7,686


$

7,187


$

7,961


$

7,688











Production Services Segment:










Revenues

$

98,015


$

84,797


$

104,111


$

420,576


$

282,039

Operating costs

61,001


48,989


65,395


252,775


164,365

Production Services margin (1)

$

37,014


$

35,808


$

38,716


$

167,801


$

117,674











Combined:










Revenues

$

227,868


$

203,656


$

229,773


$

919,443


$

715,941

Operating Costs

146,951


128,419


153,583


586,621


456,924

Combined margin

$

80,917


$

75,237


$

76,190


$

332,822


$

259,017











Adjusted EBITDA (3) & (4)

$

60,281


$

55,509


$

55,596


$

249,283


$

183,870












(1)

Drilling Services margin represents contract drilling revenues less contract drilling operating costs. Production Services margin represents production services revenue less production services operating costs.  We believe that Drilling Services margin and Production Services margin are useful measures for evaluating financial performance, although they are not measures of financial performance under generally accepted accounting principles. However, Drilling Services margin and Production Services margin are common measures of operating performance used by investors, financial analysts, rating agencies and Pioneer's management. A reconciliation of Drilling Services margin and Production Services margin to net income (loss) as reported is included in the table on the following page. Drilling Services margin and Production Services margin as presented may not be comparable to other similarly titled measures reported by other companies.


(2)

Drilling Services margin per revenue day represents the Drilling Services' average revenue per revenue day less average operating costs per revenue day.


(3)

Adjusted EBITDA is a financial measure that is not in accordance with GAAP, and should not be considered (i) in isolation of, or as a substitute for, net income (loss), (ii) as an indication of operating performance or cash flows from operating activities or (iii) as a measure of liquidity.  In addition, Adjusted EBITDA does not represent funds available for discretionary use. We define Adjusted EBITDA as income (loss) before interest income (expense), taxes, depreciation, amortization and any impairments. We use this measure, together with our GAAP financial metrics, to assess our financial performance and evaluate our overall progress towards meeting our long-term financial objectives. We believe that this non-GAAP financial measure is useful to investors and analysts in allowing for greater transparency of our operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA, as we calculate it, may not be comparable to Adjusted EBITDA measures reported by other companies. A reconciliation of Adjusted EBITDA to net income (loss) is set forth below.


See following page for footnote (4).


 

 

 






















PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Reconciliation of Combined Drilling Services and Production Services

Margin and Adjusted EBITDA to Net Income

(in thousands)

(unaudited)






Three months ended


Years Ended


December 31,


September 30,


December 31,


2012


2011


2012


2012


2011











Combined margin

$

80,917


$

75,237


$

76,190


$

332,822


$

259,017











General and administrative

(20,926)


(19,232)


(21,269)


(85,603)


(67,318)

Bad debt (recovery) expense

(75)


(548)


368


440


(925)

Other income (expense)

365


52


307


1,624


(6,904)

Adjusted EBITDA (3) & (4)

60,281


55,509


55,596


249,283


183,870











Depreciation and amortization

(44,288)


(35,160)


(42,067)


(164,717)


(132,832)

Impairment of equipment

(99)




(1,131)


(484)

Interest expense

(10,391)


(8,062)


(9,453)


(37,049)


(29,721)

Income tax expense

(1,943)


(5,469)


(1,461)


(16,354)


(9,656)

Net income (loss)

$

3,560


$

6,818


$

2,615


$

30,032


$

11,177


(4)

Our Adjusted EBITDA for the year ended December 31, 2011 was reduced by a $7.3 million net-worth tax expense for our Colombian operations that was a non-recurring charge and was included in other (expense) income.


 

 























PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Capital Expenditures

(in thousands)

(unaudited)






Three months ended


Years Ended


December 31,


September 30,


December 31,


2012


2011


2012


2012


2011









Drilling Services Segment:










Routine and tubulars

$

5,328


$

9,685


$

17,887


$

39,051


$

35,252

Discretionary

12,255


21,862


8,569


56,430


67,352

Fleet additions

28,084


14,768


47,985


162,677


41,005


45,667


46,315


74,441


258,158


143,609

Production Services Segment:










Routine

3,833


2,691


4,306


15,311


8,168

Discretionary

10,511


11,322


8,091


37,562


31,523

Fleet additions

13,262


9,173


10,329


53,293


26,766


27,606


23,186


22,726


106,166


66,457

Net cash used for purchases of property and equipment

73,273


69,501


97,167


364,324


210,066

Net effect of accruals

1,241


9,948


(13,762)


14,948


27,721

Total capital expenditures

$

74,514


$

79,449


$

83,405


$

379,272


$

237,787











 

 

 




PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Drilling Rig, Well Servicing Rig, Wireline and Coiled Tubing Unit

Current Information









Drilling Services Segment:

Rig Type





Mechanical


Electric


Total Rigs







Drilling rig horsepower ratings:






550 to 700 HP

1



1

750 to 950 HP

7


2


9

1000 HP

18


11


29

1200 to 2000 HP

7


24


31

Total

33


37


70







Drilling rig depth ratings:






Less than 10,000 feet

3


2


5

10,000 to 13,900 feet

18


6


24

14,000 to 25,000 feet

12


29


41

Total

33


37


70







Production Services Segment:












Well servicing rig horsepower ratings:






550 HP





98

600 HP





10

Total





108







Wireline units





119







Coiled tubing units





13







 

Contacts:

Lorne E. Phillips, CFO

Pioneer Energy Services Corp.

(210) 828-7689

 

Lisa Elliott / [email protected]

Anne Pearson / [email protected]

DRG&L / (713) 529-6600

 

SOURCE Pioneer Energy Services

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All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
Noted IoT expert and researcher Joseph di Paolantonio (pictured below) has joined the @ThingsExpo faculty. Joseph, who describes himself as an “Independent Thinker” from DataArchon, will speak on the topic of “Smart Grids & Managing Big Utilities.” Over his career, Joseph di Paolantonio has worked in the energy, renewables, aerospace, telecommunications, and information technology industries. His expertise is in data analysis, system engineering, Bayesian statistics, data warehouses, business intelligence, data mining, predictive methods, and very large databases (VLDB). Prior to DataArchon, he served as a VP and Principal Analyst with Constellation Group. He is a member of the Boulder (Colo.) Brain Trust, an organization with a mission “to benefit the Business Intelligence and data management industry by providing pro bono exchange of information between vendors and independent analysts on new trends and technologies and to provide vendors with constructive feedback on their of...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.