RADNOR, Pa., March 2, 2017 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE: SFE) today announced financial results for the three months and full-year ended December 31, 2016, as well as continued achievement of developmental milestones for its 29 partner companies. For the three months ended December 31, 2016, Safeguard’s net loss was $21.7 million, or $1.07 per share, compared with a net loss of $14.3 million, or $0.69 per share, for the same period of 2015. For the year ended December 31, 2016, Safeguard’s net loss was $22.3 million, or $1.09 per share, compared with a net loss of $59.5 million, or $2.85 per share, in 2015.
“Over the course of Safeguard’s 64-year history, the Company has always embraced change and fostered innovation,” said Stephen T. Zarrilli, Safeguard’s President and CEO. “Our focus on deploying early- and growth-stage capital in select vertical markets within the technology sector has positioned Safeguard for another period of dynamic growth and value realization. We remain committed to progressive capital allocation, appropriate balance sheet leverage and continued transparency.”
Subsequent to the fourth quarter of 2016, Safeguard sold its interest in partner company Beyond.com back to the company for $26 million. In connection with the transaction, Safeguard will receive $15.5 million in cash and a three-year, $10.5 million note for the balance due, which will accrue interest at a rate of 9.5% per annum. As a result, Safeguard will realize nearly a two-times cash-on-cash return. Safeguard had deployed $13.5 million in Beyond in March 2007 and prior to the sale had a 38% primary ownership position.
2016 Highlights
- Deployed $22.9 million into four new partner companies Aktana, Brickwork Software, Moxe Health, and T-REX Group sharpening Safeguard’s focus on early- and growth-stage technology-driven enterprises and their innovative products and services.
- Deployed $56.4 million in follow-on funding to support the growth of 18 existing partner companies.
- Realized $58.6 million in cash proceeds from sale of the Company’s minority equity stake in Putney.
- Repurchased $5.4 million of common stock in open-market transactions. Beginning in early 2014 through December 31, 2016, more than 1.9 million shares have been repurchased at a cost of $35.4 million.
AGGREGATE PARTNER COMPANY REVENUE
Aggregate partner company revenue for 2016 was $344 million, compared to $328 million in 2015 and $283 million in 2014 for those same companies. Revenue figures for all periods reflect the reclassification of certain costs as a reduction of revenue for our digital media partner companies. These figures do not include new partner companies in which Safeguard initially deployed capital in 2016 or partner companies that were exited or written off in 2016.
For 2017, aggregate partner company revenue is projected to be between $395 million and $420 million, an increase of 14% to 21% from 2016, which includes revenue for all partner companies in which Safeguard had an interest at January 1, 2017. Aggregate revenue for the same partner companies was $348 million for 2016 and $329 million for 2015.
Aggregate revenue for all years reflects revenue on a net basis. Revenue data for certain partner companies pertain to periods prior to Safeguard’s involvement with those companies and are based solely on information provided to Safeguard by those companies. Safeguard reports the revenue of its equity and cost-method partner companies on a one-quarter lag basis.
PARTNER COMPANY HIGHLIGHTS
Significant accomplishments achieved by Safeguard’s partner companies during 2016 include:
~ Product Launches / Regulatory Approvals ~
AdvantEdge Healthcare Solutions achieved third-party recertification for HIPAA and HITECH privacy and security requirements for the fourth consecutive year. AdvantEdge launched AdvantEdge Analytics A2, a web-based, near real-time specialty physician financial reporting and analytics tool that allows the physician or practice manager to monitor the entire revenue cycle of the practice.
Cask Data released Cask Data Application Platform (“CDAP”) 4, the first unified integration platform for big data that enables developers, data scientists and citizen integrators to quickly build and deploy applications, data pipelines, plug-ins, and use case recipes on Hadoop and Spark.
CloudMine earned certification under the E.U.-U.S. Privacy Shield, which is new legislation that was established between the E.U. Privacy Commission and the U.S. Federal Trade Commission to replace the decade-old Safe Harbor pact and ensure better enforceability and guarantees of data privacy for E.U. citizens. CloudMine also launched its HIPAA-compliant Connected Health Cloud product, which allows users across the healthcare spectrum to aggregate and analyze disparate data to improve patient care.
Good Start Genetics launched an advanced version of EmbryVu, the next-generation embryo screening test, based on its proprietary sequencing platform and technology licensed from Johns Hopkins University, and during the fourth quarter of 2016, introduced the most affordable preimplantation genetic screening (“PGS”) test on the market at $150 per embryo, broadening access for more couples planning a family. Good Start Genetics also launched the VeriYou genetic test for couples on Amazon, which is Good Start Genetics’ saliva-based, next-generation sequencing (“NGS”) carrier screening test for two of the most common inherited genetic disorders cystic fibrosis (“CF”) and spinal muscular atrophy (“SMA”). Good Start Genetics is the first genetic testing company to have a direct Amazon relationship.
Hoopla Software launched a product enhancement that allows its customers to broadcast information on Hoopla TV displays directly from Slack. With this latest integration, Hoopla has taken another step in expanding the Hoopla TV platform to motivate, engage, and align employees for customers around the world. Integrations now include Slack, Google Sheets, Salesforce, Zapier, Excel and the ability to import CSV files.
InfoBionic received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for MoMe® Kardia, a wireless, remote monitoring system designed to aid physicians in their diagnosis of cardiac arrhythmias in patients with a demonstrated need for cardiac monitoring. InfoBionic began shipping the new generation MoMe® Kardia during the fourth quarter of 2016.
MediaMath launched Adaptive Segments, which allows agencies and marketers to transform raw data into actionable marketing tactics and allow one-on-one conversations with customers. MediaMath also launched Helix, a new proprietary data business unit which leverages global, pooled transactional data sets with MediaMath’s vast data footprint and buying platform to evolve how marketers leverage data for programmatic marketing.
Pneuron added new features to its business-orchestration software, enhancing robotic capabilities and scalability. Among other enhancements, the Pneuron platform now enables customers to configure MS Sharepoint, MS Exchange and Unix Shell Scripts and connect an entire enterprise ecosystem without coding.
Prognos is the new business name for Medivo. The rebranding emphasizes the company’s prowess in healthcare artificial intelligence by enhancing the value of lab results and diagnostic data through advanced analytics. Prognos continues to connect with more labs and has added data on 21 medical conditions, bringing its total to more than 30 conditions.
Propeller Health received FDA 510(k) clearance to market its platform for use with Glaxo Smith Kline’s Ellipta® dry powder inhaler. Propeller also launched a nationwide initiative with AMC Health to help patients with Chronic Obstructive Pulmonary Disease (“COPD”) and asthma improve disease management and reduce symptoms and hospital visits. This multiyear partnership brings Propeller Health’s commercial programs in U.S. healthcare systems and other organizations to more than 40.
Spongecell released a new HTML5-based video format for personalized, data-driven interactive video advertising across multiple devices, allowing advertisers to build, target and traffic their messages from a self-service platform. HTML5 technology is expected to replace Flash-based video by mid-2017.
Syapse launched its Global Partner Program, which will leverage best-of-breed partners to enhance and accelerate the implementation of the Syapse Precision Medicine Platform at healthcare organizations globally. Under the program, Syapse will build an ecosystem of partners, including system integrators, EHR vendors, testing labs, specialty pharmacies and health plans, to further complement the capabilities of Syapse Precision Medicine Platform.
Transactis released Version 7.0 of its electronic billing and payment platform, which expands application program interface (“API”) support for high volume billers and seamless real-time access to leading payment engines like Visa/CyberSource, Vantiv and WorldPay.
Trice Medical received FDA 510(k) clearance for mi-eye 2, a disposable needle with a fully integrated camera that enables physicians to use advanced diagnostic imaging to visualize joint injuries in a clinic. Launched during the fourth quarter of 2016, mi-eye 2 is designed for use in diagnostic and operative arthroscopic and endoscopic procedures to provide illumination and visualization of an interior cavity of the body through either a natural or surgical opening.
WebLinc launched its exclusive Solutions Partner Network to offer mid-market retailers access to in-demand solutions and ecommerce expertise. The network features a repeatable process to help the most innovative commerce agencies, developers, and strategists implement the Workarea Commerce Platform.
Zipnosis launched ZipTicket, a virtual boarding pass that gives patients access to in-clinic lab tests. In addition, the company launched a new reseller model between Bryan Health/Bryan Telemedicine and Memorial Health (“MHCS”). In this model, MHCS’s virtual care service is staffed by Bryan Health/Bryan Telemedicine providers.
~ Major Customer Wins / Strategic Partnerships ~
AdvantEdge Healthcare Solutions was contracted by Safeguard partner company, NovaSom, to administer billing and collection functions.
Apprenda signed a resale agreement with Cisco to integrate the Apprenda Platform-as-a-Service (“PaaS”) with Cisco Metapod and Cisco Application Centric Infrastructure (“ACI”). Apprenda’s integration with Cisco Metapod and Cisco ACI allows Apprenda to fully deliver on the hybrid needs of enterprise software development.
Beyond added Allstate, Advantage Solutions, Six Flags, UPS, Johns Hopkins Health System, Maxim Healthcare, Time Warner Cable, Charles Schwab, ConAgra Foods and Sysco Corporation to its customer roster in 2016.
Cask Data partnered with Tableau, a global leader in visual analytics. Cask announced deeper integration with Cloudera Enterprise for faster time to value from Hadoop. Cask was certified and is among the newest approved vendors in the Microsoft Azure HDInsight partner program, enhancing security and scalability of big data queries in the cloud with CDAP. CDAP has also been certified on the IBM Open Platform, along with Apache Spark, and is now available on the IBM Marketplace.
CloudMine partnered with Validic to advance integration of patient-generated health data into clinical workflows and Healthcare Information Systems. CloudMine partnered with rapid mobile app development leader Alpha Software Corporation to scale secure, HIPAA-compliant mobile app development and deployment for healthcare and life science organizations. CloudMine also partnered with Elasticsearch, which provides CloudMine developers with a powerful search framework and data management layer for delivering optimal application performance.
Clutch Holdings acquired intelligent mobile promotions platform Persio, which is expected to provide Clutch clients with comprehensive views of customers across all buying and marketing channels. Clutch achieved “Built for NetSuite” certification for its Gift, Loyalty & Automated Marketing SuiteApp, enabling users to identify, understand and motivate their customers with personalized engagements and experiences across online, in-store, mobile, social, email, SMS and direct mail channels. In addition, Retail Control Systems is integrating the Clutch platform for email marketing and point-of-sale data collection and analysis by Denver-area Goodwill Industries locations beginning in 2017.
Good Start Genetics announced a partnership with Roche to offer its carrier screening and prenatal test services to U.S. obstetricians and general practitioners. In addition, Good Start Genetics announced a partnership with Genome Medical to augment its genetic counseling services for VeriYou. Good Start launched a collaboration with Helix to develop consumer applications to help couples better understand their reproductive health.
MediaMath and DoubleVerify announced plans to integrate DoubleVerify data on the MediaMath platform, providing clients with more data on digital ad quality, brand safety, fraud and invalid traffic, viewability and targeting. MediaMath was the first to integrate the Google DoubleClick Ad Exchange Programmatic Guaranteed product offering premium publisher inventory to clients in EMEA, APAC, LATAM and North America markets. MediaMath is collaborating with Adform to allow MediaMath TerminalOne users access to publishers on the Adform system, while Adform gains global demand for its global programmatic supply. MediaMath was also the first demand-side platform to partner with Integral Ad Science to leverage its performance matching technology to empower advertisers with the ability to target viewability thresholds for its video inventory.
meQuilibrium announced a partnership with Optum, a subsidiary of UnitedHealth Group, to integrate meQuilibrium’s human resilience capacity performance and productivity software platform into Optum’s employee assistance program, and to offer it as a standalone service. meQuilibrium made major additions to its customer roster, including one of the largest health insurers in North America, a major home-improvement retailer, a Fortune 50 consumer packaged goods company, a Fortune 500 manufacturer, and a large health insurer reseller.
Propeller Health crafted partnerships with Molina Healthcare of New Mexico for asthma control, and with Vectura Group plc in the United Kingdom to develop digitally connected inhalers using Vectura’s dry powder technology. Propeller Health partnered with Aptar Pharma, a global drug delivery systems provider, to begin development of what is believed to be the world’s first digital, connected metered dose inhaler with an integrated sensor and a novel electronic dose counter. Propeller Health also announced a new commercial partnership with Humana, whose employees are participating in the AIR Louisville program.
QuanticMind earned Elite status in the Microsoft Bing Partner Program for its success in growing the Bing search advertising customer base. The Bing program allows QuanticMind clients exclusive access to Bing Ads training, marketing and technology development.
Sonobi announced a partnership with Bankrate as their exclusive header management technology through the company’s server-to-server product. As a result, Bankrate will leverage Sonobi’s header tag technology to manage how they monetize their audience and bring in other partners. Sonobi partnered with Guardian Media Group on header bidding services. Sonobi will manage Guardian’s audience monetization. Sonobi announced a key partnership with Omnicom Media Group’s Annalect Group to integrate Sonobi’s JetstreamTM platform into OMG’s premium ad technologies so organizations can pre-qualify and purchase audiences directly without financial intermediaries.
Syapse announced a collaboration with Biotheranostics to combine the Syapse Precision Medicine Platform with diagnostic data from Biotheranostics’ genomic tests to help physicians find the most effective treatment for cancer patients based on their molecular profiles. Syapse is also partnering with Henry Ford Health System and Catholic Health Initiatives to launch an oncology precision medicine program to revolutionize cancer care in the greater Midwest and across CHI, respectively. Syapse launched the Oncology Precision Network (OPeN) in collaboration with customers Intermountain Healthcare, Providence Health & Services, and Stanford Cancer Institute. Syapse announced that its Precision Medicine Platform was used by The American Society of Clinical Oncology (“ASCO”) to launch and enroll the first patients in the ASCO’s Targeted Agent and Profiling Utilization Registry study. This groundbreaking clinical trial relies on Syapse to manage the study workflow and capture structured clinical data from participating hospital systems.
Trice Medical is partnering with Highmark Allegheny Health System to conduct two clinical trials, utilizing the mi-eye 2 to diagnose meniscus injuries in the office setting, and using the mi-eye 2 to determine proper surgical planning for those patients undergoing a knee replacement. The clinical trials are expected to commence in Q1 2017.
WebLinc launched ecommerce websites for Sanrio.com, the global lifestyle brand best known for pop icon Hello Kitty®; Lime Crime, a booming cosmetics brand based in Los Angeles; Century 21 Department Stores, a privately-held department store chain based in New York City; Costume SuperCenter, the web’s largest one-stop retailer for kid and adult costumes; Just Candy, the one-stop shop for candy party favors and bulk from Party City Stores founder Steve Mandell; Tahari ASL, the affordable luxury brand catering to the professional woman in all aspects of her life; and RachelRoy.com for Rachel Roy, an award-winning and privately-owned women’s clothing brand.
Zipnosis added several new health systems to its roster of clients including Mission Health, Inspira Health Network, Olmsted Medical Center, Ridgeview Medical Center and Lakewood Regional Medical Center. Zipnosis offers health systems the option to support their virtual care service with an outsourced clinical staffing model. This can help health systems effectively manage clinical capacity, go to market more rapidly or extend the hours diagnosis and treatment is available.
~ Industry Awards ~
Aktana was named a “Cool Vendor” in Gartner’s 2016 report “Cool Vendors in Life Science.” Aktana was also named one of three Gold Technology Partners by Veeva in recognition of its ability to provide customers with an ecosystem of proven life sciences products, services and high quality integrated solutions that customers can trust to help them succeed.
Cask Data was recognized as one of “20 Companies that Changed Big Data in 2016" by Enterprise Strategy Group in its annual Delta-V Awards. Cask was certified as a great workplace by the independent analysts at Great Place to Work®. Cask was also named a “Cool Vendor” in Gartner’s 2016 report on Pervasive Integration for its open source CDAP and Cask Hydrator.
CloudMine was named “Cool Vendor” in mobile app development by Gartner for its Connected Health Cloud. CloudMine’s Connected Health Cloud won a 2016 SIIA CODiE Award as Best Information Service Delivered as a Mobile App. CloudMine was also recognized as an IDC Innovator because its technology balances lower-cost mobile app development platform subscription fees with development of specialized APIs relevant to regulated industries.
Clutch Holdings was named Top 5 in the Philadelphia Business Journal’s “50 On Fire” list of fast-growing public and private companies based on its revenue growth from 2013 to 2015.
Full Measure Education earned the Complete College America Guided Pathways to Success (“GPS”) “Seal of Approval”, which recognizes industry tools and practices that facilitate institutional effectiveness to achieve the goals of GPS.
Hoopla Software earned a 2016 Gold Stevie Award for the category “Incentive Management Solution New”. The award recognized Hoopla’s success in building a platform that drives the performance of sales and service teams through an incentive-based platform that combines gamification, employee recognition, and motivational communication tools.
InfoBionic and its cloud-based MoMe® Kardia system earned the Frost & Sullivan 2016 North America Award for New Product Innovation.
MediaMath ranked No. 2 on Business Insider’s list of the “37 hottest pre-IPO ad tech startups of 2016.” CEO Joe Zawadzki was named 2016 Data Innovator of the Year for leadership in data-driven marketing by the Data Innovators Group and the Direct Marketing Club of New York. Fortune and Forbes magazines separately listed MediaMath among the 100 Best Workplaces for Millennials. Fortune also named MediaMath one of the 50 Best Places to Work for new college graduates. MediaMath was recognized as a “Visionary” by technology research firm Gartner in its Magic Quadrant for Digital Marketing Hubs.
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