Welcome!

.NET Authors: Pat Romanski, Elizabeth White, ChandraShekar Dattatreya, Trevor Parsons, Peter Silva

News Feed Item

Performance Sports Group Reports Record Fiscal Fourth Quarter and Full Year 2014 Results

EXETER, NH -- (Marketwired) -- 08/12/14 -- Performance Sports Group Ltd. (NYSE: PSG) (TSX: PSG) ("PSG" or the "Company"), a leading developer and manufacturer of high performance sports equipment and apparel, reported financial results for its fiscal fourth quarter and full year ended May 31, 2014. All figures are in U.S. dollars.

On April 15, 2014, the Company completed the Easton Baseball/Softball acquisition from BRG Sports (formerly Easton-Bell Sports). Unless otherwise specified, the Company's financial information outlined herein includes Easton Baseball/Softball's operating results from the acquisition date.

Fiscal Q4 2014 Financial Highlights vs. Year-Ago Quarter

  • Revenues up 30% to $112.9 million (35% in constant currency)
  • Hockey revenues up 9% (14% in constant currency)
  • Lacrosse revenues up 29%
  • Adjusted Gross Profit up 22% to $43.8 million
  • Adjusted EBITDA up 52% to $21.3 million
  • Adjusted Net Income up 12% to $10.8 million or $0.29 per diluted share
  • Intellectual property litigation settled with BRG Sports for a gain of $6.0 million (a $0.09 benefit per diluted share, net of related expenses)
  • Adjusted Net Income excluding the impact of the Easton Baseball/Softball acquisition and the intellectual property litigation settlement of $0.23 per diluted share

Management Commentary

"Fiscal 2014 was a year of significant transformation for our organization," said Kevin Davis, president and CEO of Performance Sports Group. "In addition to numerous successful product rollouts and strong growth in our hockey, lacrosse, and apparel businesses, we enhanced our leading performance sports platform with the acquisition of Easton Baseball/Softball. With the acquisition complete, we now hold the No. 1 North American market share in diamond sports and No. 1 worldwide market share in hockey."

"We are meeting or exceeding all of our integration milestones for the EASTON operations and I am very happy with the way our entire organization is working to ensure a smooth integration process," continued Davis. "Global demand for our platform of brands continues to accelerate. Hockey sales remained strong, led by the launch of several new products and apparel, including the NEXUS line of sticks which drove 41% growth in the fourth quarter in our largest dollar market share opportunity in hockey. Our hockey team apparel and uniform business also grew an impressive 37% in the fourth quarter as we continue to build momentum with this significant growth opportunity. Our lacrosse business also continues to grow at healthy double-digit rates with strong sales of the new CASCADE "R" helmet and various new Maverik products.

"PSG's expansion into new sports and apparel is a perfect example of our ability to enhance our performance sports platform. As we've proven with our hockey business, we expect to raise the bar of innovation across all of our brands with world class R&D, strong intellectual property and, most importantly, a dedication to connecting with our core consumers. Despite continued currency headwinds, our goal is to deliver another record year of top and bottom-line performance in fiscal 2015."

Fiscal Q4 2014 Financial Results

Revenues in the fiscal fourth quarter of 2014 increased 30% to $112.9 million compared to $86.7 million in the same year-ago quarter. On a constant currency basis, revenues were up 35%. The increase was due to strong growth in ice hockey equipment and lacrosse as well as the addition of the EASTON and COMBAT diamond sports businesses, partially offset by an unfavorable impact from foreign exchange.

Excluding the results of the Easton Baseball/Softball and Combat Sports acquisitions, as well as the impact from foreign exchange, revenues grew organically by 15%.

Adjusted Gross Profit (a non-IFRS measure) in the fourth quarter increased 22% to $43.8 million compared to $35.9 million in the year-ago quarter. As a percentage of revenues, Adjusted Gross Profit was 38.8% compared to 41.4% in the same year-ago period. The decrease in Adjusted Gross Profit margin was primarily driven by an unfavorable impact from foreign exchange and Easton Baseball/Softball's lower gross margin during the six week period since the acquisition date. The Company's period of ownership during the fourth quarter is a seasonally low revenue period for the Easton Baseball/Softball business. These factors more than offset improvements in ice hockey gross margin (see "Non-IFRS Measures" below for further discussion).

Selling, general and administrative ("SG&A") expenses in the fourth quarter increased 17% to $27.4 million compared to $23.4 million in the year-ago quarter, primarily due to the addition of Easton Baseball/Softball as well as higher marketing and acquisition-related costs, partially offset by the gain from the intellectual property litigation settlement with BRG Sports. As a percentage of revenues and excluding acquisition-related charges, costs related to share offerings, share-based payment expenses, and the litigation settlement, SG&A expenses were 24.0% compared to 21.8% in the year-ago quarter.

R&D expenses in the fourth quarter increased 17% to $5.3 million compared to $4.6 million in the year-ago quarter, primarily due to continued focus on product development and the addition of EASTON and COMBAT. As a percentage of revenues, R&D expenses decreased to 4.7% compared to 5.3% in the year-ago quarter.

Adjusted EBITDA (a non-IFRS measure) increased 52% to $21.3 million compared to $14.0 million in the year-ago quarter. The increase was primarily due to higher Adjusted Gross Profit and a favorable realized gain on derivatives, as well as the favorable litigation settlement described above.

Adjusted Net Income (a non-IFRS measure) in the fourth quarter increased 12% to $10.8 million or $0.29 per diluted share, compared to $9.7 million or $0.26 per diluted share in the year-ago quarter. Adjusted Net Income in the fourth quarter includes the benefit of the aforementioned litigation settlement of $0.09 per diluted share, net of related expenses, and a $0.03 loss related to the acquisition of the Easton Baseball/Softball business. Adjusted EPS of $0.26 in the fourth quarter of Fiscal 2013 included a benefit of $0.05 per diluted share due to non-recurring tax-related items.

On May 31, 2014, working capital was $320.9 million compared to $200.9 million on May 31, 2013, primarily due to the acquisition of Easton Baseball/Softball. Excluding the acquisition, working capital was $225.3 million as of May 31, 2014, an increase of 12%. Total debt was $523.1 million compared to $171.7 million at May 31, 2013. The Company's leverage ratio, defined as average net indebtedness divided by trailing twelve months EBITDA (a non-IFRS measure), stood at 4.78x as of May 31, 2014 compared to 2.70x one year ago. The increase reflects the Company's financing of the Easton Baseball/Softball acquisition.

On June 25, 2014, the Company completed an underwritten public offering for total gross proceeds of approximately $126.5 million. PSG used the net proceeds of the offering to reduce leverage and repay approximately $119.5 million of the Company's term loan facility, which was used to finance the Easton Baseball/Softball acquisition. Following the pay down, the Company's leverage ratio stood at 3.66x.

Full Year Fiscal 2014 Financial Results

Revenues in fiscal 2014 increased 12% to $446.2 million compared to $399.6 million in fiscal 2013. On a constant currency basis, revenues were up 14%. Excluding the results of the EASTON, COMBAT, INARIA and CASCADE acquisitions, as well as the impact from foreign exchange and the Canadian tariff reduction, revenues grew organically by 6%.

Adjusted Gross Profit in fiscal 2014 increased 8% to $164.7 million compared to $153.0 million in fiscal 2013. As a percentage of revenues, Adjusted Gross Profit was 36.9% compared to 38.3% last year.

SG&A expenses increased 16% to $105.2 million compared to $90.4 million in fiscal 2013. As a percentage of revenues and excluding acquisition-related charges, costs related to share offerings, share-based payment expenses, and the impact of the litigation settlements, SG&A expenses remained flat at 19.8% compared to fiscal 2013.

R&D expenses increased 15% to $18.5 million compared to $16.1 million in fiscal 2013. As a percentage of revenues, R&D was 4.1% compared to 4.0% in the prior year.

Adjusted EBITDA (a non-IFRS measure) in fiscal 2014 increased 11% to $69.0 million compared to $62.3 million in fiscal 2013.

Adjusted Net Income (a non-IFRS measure) in fiscal 2014 was $37.3 million or $1.00 per diluted share, compared to $35.7 million or $0.98 per diluted share in fiscal 2013. Adjusted EPS in 2014 includes an $0.08 benefit from the litigation settlement with BRG Sports as well as additional expenses related to litigation matters, and a $0.03 loss related to the acquisition of the Easton Baseball/Softball business. Adjusted EPS in 2013 included a benefit of approximately $0.05 due to non-recurring tax-related items.

Conference Call

PSG will hold a conference call tomorrow, August 13, 2014 at 10:00 a.m. Eastern time to discuss its fiscal 2014 fourth quarter and full year results.

The Company's President and CEO Kevin Davis and CFO Amir Rosenthal will host the conference call, followed by a question and answer period.

Date: Wednesday, August 13, 2014
Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
Toll-free dial-in number: 1-888-359-3624
International number: 1-719-325-2354
Conference ID: 6392037

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=110508 and via the investors section of the Company's website at www.performancesportsgroup.com.

A replay of the conference call will be available after 1:00 p.m. Eastern time on the same day through August 27, 2014.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 6392037

About Performance Sports Group Ltd.

Performance Sports Group Ltd. (NYSE: PSG) (TSX: PSG) is a leading developer and manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball sports equipment, as well as related apparel. The Company has the most recognized and strongest brands in ice hockey, roller hockey, baseball and softball, and holds top market share positions in these sports. Its products are marketed under the BAUER, MISSION, MAVERIK, CASCADE, INARIA, COMBAT and EASTON brand names and are distributed by sales representatives and independent distributors throughout the world. The Company is focused on building its leadership position by growing market share in all product categories and pursuing strategic acquisitions. For more information, please visit www.performancesportsgroup.com.

Non-IFRS Measures

Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS and Adjusted Net Income/Loss are non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. When used, these measures are defined in such terms as to allow the reconciliation to the closest IFRS measure. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analyses of the Company's financial information reported under IFRS. The Company uses non-IFRS measures, such as Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS and Adjusted Net Income/Loss, to provide investors with a supplemental measure of its operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. The Company also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets, and to assess its ability to meet future debt service, capital expenditure, and working capital requirements.

Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS and Adjusted Net Income/Loss are non-IFRS measures. Adjusted Gross Profit is defined as gross profit plus the following expenses which are part of cost of goods sold: (i) amortization and depreciation of intangible assets, (ii) non-cash charges to cost of goods sold resulting from fair market value adjustments to inventory as a result of business acquisitions, (iii) reserves established to dispose of obsolete inventory acquired from acquisitions and (iv) other one-time or non-cash items. Adjusted EBITDA is defined as EBITDA (net income adjusted for income tax expense, depreciation and amortization, losses related to amendments to the credit facility, gain or loss on disposal of fixed assets, net interest expense, deferred financing fees, unrealized gains/losses on derivative instruments, and realized and unrealized gains/losses related to foreign exchange revaluation) before restructuring and other one-time or non-cash charges associated with acquisitions, other one-time or non-cash items, pre-initial public offering sponsor fees, costs related to share offerings, as well as share-based payment expenses. Adjusted EPS is defined as Adjusted Net Income/Loss divided by the weighted average diluted shares outstanding. Adjusted Net Income/Loss is defined as net income adjusted for all unrealized gains/losses related to derivative instruments and unrealized gains/losses related to foreign exchange revaluation, non-cash or incremental charges associated with acquisitions, amortization of acquisition-related intangible assets for acquisitions since the Company's initial public offering, costs related to share offerings, share-based compensation expense and other non-cash or one-time items.

Further discussion of these non-IFRS measures to the relevant reported results can be found in the tables at the end of this press release under "Non-IFRS Reconciliations" and in the Company's MD&A for the fourth quarter.

All references to "constant currency" reflect the impact of translating the current period results at the monthly foreign exchange rates from the prior year period. This translation impact does not include the impact of foreign exchange on the Company's direct material costs or gains/losses on derivatives. For more information, see "Factors Affecting our Performance - Impact of Foreign Exchange" in the Company's MD&A.

Caution Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of applicable securities laws including with respect to the integration of the Easton Baseball/Softball operations, the introduction of technical innovation, and the Company's financial performance goals for fiscal 2015. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. The words "may," "will," "would," "should," "could," "expects," "plans," "intends," "trends," "indications," "anticipates," "believes," "estimates," "predicts," "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.

Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to important risks and uncertainties. Many factors could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: inability to maintain and enhance brands, inability to introduce new and innovative products, intense competition in the sporting equipment and apparel industries, inability to introduce technical innovation, inability to own, enforce, defend and protect intellectual property rights worldwide, inability to ensure third party suppliers will meet quality and regulatory standards, infringement of intellectual property rights of others, inability to translate booking orders into realized sales, change in the mix or timing of orders placed by customers, seasonal fluctuations in the demand for our products resulting from adverse weather or other conditions, decrease in ice hockey, baseball and softball, roller hockey or lacrosse participation rates, adverse publicity related to or reduced popularity of professional or amateur leagues in sports in which our products are used, reliance on third party suppliers and manufacturers, disruption of distribution chain or loss of significant customers or suppliers, consolidation of our customer base (and the resulting possibility of lower gross margin due to negotiated lower prices), change in the sales mix towards larger customers, cost of raw materials, shipping costs and other cost pressures, risks associated with doing business abroad, inability to accurately forecast demand for products, insufficient sell through of our products at retail, inventory shrinkage or excess inventory, product liability claims and product recalls, changes in compliance standards of testing and athletic governing bodies, departure of senior executives or other key personnel, litigation, including certain class action lawsuits, employment or union related disputes, restrictive covenants in the Credit Facilities, inability to generate sufficient cash to service all the Company's indebtedness, inability to successfully integrate new acquisitions, such as Easton Baseball/Softball, inability to realize growth opportunities or cost synergies that are anticipated to result from new acquisitions, inability to continue making strategic acquisitions, inability to grow market share, volatility in the market price for Common Shares, possibility that we may need additional capital in the future, fluctuations in the value of certain foreign currencies, including the Canadian dollar, Chinese renminbi, euro, Swedish krona, Taiwanese new dollar and Thai baht in relation to the U.S. dollar, inability to manage foreign exchange derivative instruments, general adverse economic and market conditions, changes in consumer preferences and the difficulty in anticipating or forecasting those changes, changes in government regulations, including tax laws and unanticipated tax liabilities, inability of counterparties and customers to meet their financial obligations and natural disasters, as well as the factors identified in the "Risk Factors" section of the Company's MD&A for the fourth quarter which is available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


                       PERFORMANCE SPORTS GROUP LTD.
         CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
                  (Expressed in thousands of U.S. dollars)

                                                   As of          As of
                                                  May 31,        May 31,
                                                    2014           2013
                                               -------------  -------------
ASSETS
Current assets:
  Cash                                         $       6,871  $       4,467
  Trade and other receivables                        205,649        113,682
  Inventories                                        157,429        109,747
  Income taxes recoverable                             5,580          1,966
  Foreign currency forward contracts                   3,193          4,513
  Prepaid expenses and other assets                    6,062          3,084
                                               -------------  -------------
Total current assets                                 384,784        237,459

Property, plant and equipment                         12,482         10,509
Goodwill and intangible assets                       410,050        152,644
Foreign currency forward contracts                         -          1,119
Other non-current assets                                 475            721
Deferred income taxes                                 12,030          4,985
                                               -------------  -------------
TOTAL ASSETS                                   $     819,821  $     407,437
                                               =============  =============

LIABILITIES
Current liabilities:
  Debt                                         $      91,518  $      10,774
  Trade and other payables                            42,116         22,548
  Accrued liabilities                                 38,593         25,672
  Provisions                                           5,564          2,041
  Income taxes payable                                 3,788            989
  Retirement benefit obligations                         358            358
                                               -------------  -------------
Total current liabilities                            181,937         62,382

Debt                                                 431,573        160,913
Provisions                                               257            383
Retirement benefit obligations                         5,506          5,522
Other non-current liabilities                            115            879
Deferred income taxes                                  2,606            918
                                               -------------  -------------
TOTAL LIABILITIES                                    621,994        230,997

EQUITY
  Share capital                                      145,970        141,397
  Contributed surplus                                 13,426          9,562
  Retained earnings                                   47,124         27,037
  Accumulated other comprehensive loss                (8,693)        (1,556)
                                               -------------  -------------
TOTAL EQUITY                                         197,827        176,440

                                               -------------  -------------
TOTAL LIABILITIES & EQUITY                     $     819,821  $     407,437
                                               =============  =============



                       PERFORMANCE SPORTS GROUP LTD.
        CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
     (Expressed in thousands of U.S. dollars, except per share amounts)


                                 For the three months     For the twelve
                                         ended             months ended
                                        May 31,               May 31,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------

Revenues                         $ 112,901  $  86,740  $ 446,179  $ 399,593
Cost of goods sold                  75,111     52,942    291,843    252,419
                                 ---------  ---------  ---------  ---------

Gross profit                        37,790     33,798    154,336    147,174

Selling, general and
 administrative expenses            27,401     23,375    105,212     90,435
Research and development
 expenses                            5,313      4,562     18,454     16,056
                                 ---------  ---------  ---------  ---------

Income before finance costs,
 finance income, gain on bargain
 purchase, other expenses and
 income tax expense (benefit)        5,076      5,861     30,670     40,683

Finance costs                       10,054      1,818     13,983      8,566
Finance income                      (4,485)    (1,250)   (11,177)    (2,000)
Gain on bargain purchase                 -     (1,190)         -     (1,190)
Other expenses                         206         25        353        158
                                 ---------  ---------  ---------  ---------

Income before income tax expense
 (benefit)                            (699)     6,458     27,511     35,149

Income tax expense (benefit)          (969)       311      7,424      9,817

                                 ---------  ---------  ---------  ---------
Net income                       $     270  $   6,147  $  20,087  $  25,332

Other comprehensive income
 (loss):

  Items that may be reclassified
   to net income (loss):
    Foreign currency translation
     differences                     1,106       (653)    (6,917)      (120)

  Items that will not be
   subsequently reclassified to
   net income (loss):
    Actuarial gains (losses) on
     defined benefit plans, net       (260)      (191)      (220)      (217)
                                 ---------  ---------  ---------  ---------
Other comprehensive income
 (loss), net of taxes                  846       (844)    (7,137)      (337)

                                 ---------  ---------  ---------  ---------
Total comprehensive income       $   1,116  $   5,303  $  12,950  $  24,995
                                 =========  =========  =========  =========

Basic earnings per common share  $    0.01  $    0.18  $    0.57  $    0.74
                                 =========  =========  =========  =========
Diluted earnings per common
 share                           $    0.01  $    0.17  $    0.54  $    0.70
                                 =========  =========  =========  =========



                        PERFORMANCE SPORTS GROUP LTD.
     RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (UNAUDITED)
                   (Expressed in millions of U.S. dollars)

                                      Three Months Ended Twelve Months Ended
                                           May 31,             May 31,
                                        2014      2013      2014      2013
                                     --------- --------- --------- ---------

                                     --------- --------- --------- ---------
Gross profit                         $    37.8 $    33.8 $   154.3 $   147.2
                                     --------- --------- --------- ---------

Amortization & depreciation of
 intangible assets                         2.2       0.9       4.8       3.6
Inventory step-up / step-down &
 reserves                                  3.6       0.7       4.6       1.7
Other                                      0.2       0.5       1.0       0.5

                                     --------- --------- --------- ---------
Adjusted Gross Profit                $    43.8 $    35.9 $   164.7 $   153.0
                                     --------- --------- --------- ---------



                       PERFORMANCE SPORTS GROUP LTD.
 RECONCILIATION OF NET INCOME TO EBITDA AND TO ADJUSTED EBITDA (UNAUDITED)
                  (Expressed in millions of U.S. dollars)

                                  Three Months Ended    Twelve Months Ended
                                        May 31,               May 31,
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------

                                 ---------  ---------  ---------  ---------
Net income                       $     0.3  $     6.1  $    20.1  $    25.3
                                 ---------  ---------  ---------  ---------

Income tax expense (benefit)          (1.0)       0.3        7.4        9.8
Depreciation & amortization            3.8        2.1       10.4        7.8
Loss on extinguishment of debt         2.6          -        2.6        0.3
Gain on bargain purchase                 -       (1.2)         -       (1.2)
Loss on disposal of fixed assets       0.2          -        0.2          -
Interest expense, net                  3.4        1.3        7.5        6.6
Deferred financing fees                0.5        0.4        1.6        1.5
Unrealized (gain)/loss on
 derivative instruments, net           3.5       (0.8)       2.0       (0.9)
Foreign exchange (gain)/loss          (2.1)       0.1       (4.8)      (0.5)
                                 ---------  ---------  ---------  ---------
  EBITDA                         $    11.2  $     8.3  $    47.0  $    48.7

Acquisition Related Charges:
Inventory step-up / step-down &
 reserves                              3.6        0.7        4.5        1.7
Rebranding / integration costs
 (adjustments)                         2.2        1.1        4.1        3.2
Acquisition costs                      2.4        0.5        7.3        2.6
                                 ---------  ---------  ---------  ---------
  Subtotal                       $     8.2  $     2.3  $    15.9  $     7.5

Costs related to share offerings       0.1          -        0.5        0.8

Share-based payment expense            1.6        1.7        4.5        3.6

Other                                  0.2        1.7        1.1        1.7

                                 ---------  ---------  ---------  ---------
Adjusted EBITDA                  $    21.3  $    14.0  $    69.0  $    62.3
                                 ---------  ---------  ---------  ---------



                       PERFORMANCE SPORTS GROUP LTD.
  RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND TO ADJUSTED EPS
                                 (UNAUDITED)
(Expressed in millions of U.S. dollars, except share and per share amounts)

                            Three Months Ended        Twelve Months Ended
                                  May 31,                   May 31,
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

                         -----------  -----------  -----------  -----------
Net income               $       0.3  $       6.1  $      20.1  $      25.3
                         -----------  -----------  -----------  -----------

Unrealized foreign
 exchange loss / (gain)          1.8         (0.5)        (1.5)        (1.1)
Costs related to share
 offerings                       0.1            -          0.5          0.8
Acquisition-related
 charges                        10.1          2.8         19.6          9.5
Share-based payment
 expense                         1.6          1.7          4.5          3.6
Other                            3.0          0.5          3.9          0.8

Tax impact on above
 items                          (6.1)        (0.9)        (9.8)        (3.2)

                         -----------  -----------  -----------  -----------
Adjusted Net Income      $      10.8  $       9.7  $      37.3  $      35.7
                         -----------  -----------  -----------  -----------

Average diluted shares
 outstanding              37,871,858   36,887,222   37,496,996   36,407,008

                         -----------  -----------  -----------  -----------
Adjusted EPS             $      0.29  $      0.26  $      1.00  $      0.98
                         -----------  -----------  -----------  -----------

Company Contact:
Amir Rosenthal
Chief Financial Officer
Tel 1-603-610-5802
Email Contact

Investor Relations:
Liolios Group Inc.
Scott Liolios or Cody Slach
Tel 1-949-574-3860
Email Contact

Media Contact:
Tory Mazzola
Global Communications Manager
Tel 1-603-430-2111
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
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) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
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. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
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 @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
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, discussed 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 t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...