Original Source: FD (FAIR DISCLOSURE) WIRE
. John Shave, Safeguard Scientifics, VP of IR . Peter Boni, Safeguard Scientifics, President and CEO . Steve Zarrilli, Safeguard Scientifics, Acting SVP and CFO . Bob Labick, CJS Securities, Analyst . Manish Vora, Monness, Crespi, Hardt, Analyst . Eric Swergold, Gruber & McBaine, Analyst . John Loftus, Safeguard Scientifics, EVP and Managing Director of Information Technology . Jim Datin, Safeguard Scientifics, EVP and Managing Director of Life Sciences . Bill Sutherland, Boenning & Scattergood, Analyst . Cheryl Cortez, Susquehanna, Analyst
SFE reported 2006 revenues of $198.1m and 4Q06 consolidated revenues of $53.3m. 2006 earnings was $46m and 4Q06 earnings was $71.3m. Co. reported 2006 EPS of $0.38 and 4Q06 EPS of $0.59.
A. Key Data From Call 1. 2006 revenue = $198.1m. 2. 4Q06 consolidated revenues = $53.3m. 3. 2006 earnings = $46m. 4. 4Q06 earnings = $71.3m. 5. 2006 positive EPS = $0.38. 6. 4Q06 EPS = $0.59. 7. 2006-end cash = $154.1m.
S1. Business Review (P.B.) 1. Snippets: 1. SFE is now positioned as a holding Co. in technology and life sciences. 2. During 2006, Co. realized successful exits that maximized risk-adjusted value resulting in a profitable 4Q06 and year. 3. Still as a holding Co., SFE's future success depends up on the Deal Machinery, its ability to identify growth companies where it can capital and partner with entrepreneurs to build value. 4. During the year, SFE augmented the organization both internally and externally with two advisory Boards together with key board level and management additions. 1. Dr. Mike Pellini joined Life Sciences Group as a VP. 5. One position that remains to be filled is CFO. 1. SFE has an executive search under way. 2. Steve Zarrilli steps up and act as the CFO for the Co. in the interim. 6. Collectively, all these achievement positions SFE to enter Phase II of the strategy, which is designated to increase the momentum to build shareholder value in 2007 and beyond. 2. Financial Highlights:
1. SFE reported consolidated 4Q06 revenues of $53.3m after adjusting prior periods for discontinued operations largely as
a result of the timing of the exits. 1. Reported EPS of $0.59.
2. For the year, revenue was $198.1m with positive EPS at $0.38.
1. These results are largely due to the successful Mantas exit,
earning SFE almost 4X its carrying value as well as the disposition of stake in publicly held Traffic.com which was recently acquired by NAVTEQ. 3. On the strength of 2006 performance, SFE is now moving into the second phase of the strategy. 4. SFE is deploying capital in exciting growth companies in the life sciences and technology arena. 1. Is building value in partner companies by providing active, hands-on strategic and operational guidance, as well as growth capital. 5. Expects to realize the inherent value SFE is currently building from time to time as appropriate exits are timed to maximize risk-adjusted value. 6. Co. will be providing additional transparency to the investor community to better enable one to value SFE. 7. Believes that the successes in 2006 including the addition of five new and exciting partner companies and cash to the balance sheet positions SFE to continue building momentum for 2007. 3. Highlights: 1. SFE currently has 15 partner companies, eight in technology and seven in Life Sciences. 1. Of these, five are majority held, one is public.
2. Executed seven new transactions in 2006, including two
acquisitions by partner companies and a follow-on financing. 3. On the technology side, SFE deployed: 1. $5.5m for a 12% stake in security software co., Authentium. 2. An additional $6m in growth funding to the supply chain management software co., Acsis raising SFE's ownership to 96%. 3. $6m to Healthcare IT software provider, Portico Systems for a 47% ownership. 4. $5.8m to software enabled services co., Advantedge Healthcare Solutions for a 32% stake in the Co. 5. Alliance deployed $5.6m for the acquisition of Fusion Technologies. 4. SFE is just as active in the Life Sciences side with: 1. $20m funding in Rubicor Medical for a 36% ownership. 2. $6m committed to NuPathe for a 21% ownership.
3. $3m in funding to publicly held Clarient for their …