Issue of May 16, 2006
Financial Crunch sold at Mt. Vernon
Historic Mount Vernon, George Washington’s home in Virginia, has added Financial Crunch chocolate to its roster of top tier items in its museum store. Julia Mosley, director of retail for Mount Vernon, stated, "When we recently read about Financial Crunch chocolate and then tasted some, we were thrilled. It is absolutely delicious chocolate, is innovative, humorous, has amazing packaging and features George Washington. We anticipate huge interest from our visitors."
Princeton-based Sweet Assets, maker of Financial Crunch, just took the candy national this Spring. Sweet Assets was the subject of a profile in the April 4, 2006 issue of Princeton Business Journal. Financial Crunch is gourmet chocolate packaged in an elegant green and gold octagonal tin filled with a "banker’s dozen" 11 pieces of coin-shaped milk chocolate crunch. Each piece has a "tax bite" out of it.
Tyco earnings up, forecast down
Tyco International Ltd. reported increased earnings per share from continuing operations of 52 cents for the second fiscal quarter of 2006, compared with 19 cents in the second fiscal quarter of 2005. Included in the 2006 numbers was a net favorable impact of seven cents per share consisting of a six cent benefit from certain tax matters, a two cent gain from divestitures, and a one cent charge for costs related to the previously-announced plan to separate Tyco into three separate, publicly-traded companies. Results also include a two cent per share charge related to the expensing of stock options. Last year’s results included net charges of 29 cents per share, primarily related to the early retirement of debt. Revenue in the quarter totaled $10.2 billion, up from $10 billion a year ago. Tyco has forcast that full year earnings for continuing operations will be lower than expected, to $1.80 to $1.85 per share, down from earlier forcasts of $1.85 to $1.92 per share.
During the second quarter and through April 11, Tyco used $1 billion in cash to buy back 36.6 million shares. Having completed the share purchase program that was originally announced in August of 2005, Tyco’s Board of Directors has approved a new $2 billion share repurchase program. Tyco Chairman and CEO Ed Breen said, "In addition to our share repurchase activity, debt declined by $2.5 billion during the second quarter and we have reached our targeted $10 billion total debt level. We will continue to use excess cash to retire shares." Tyco is incorporated in Bermuda with operating headquarters in West Windsor.
Pharmasset Inc. announces IPO
Plainsboro-based Pharmasset Inc. has announced that it has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of common stock. The number of shares to be offered for sale and the price per share range have not yet been determined. Pharmasset will issue all new shares of common stock for the proposed initial public offering.The underwriters of the proposed offering will be Banc of America Securities LLC and UBS Investment Bank, acting as joint book-running managers, and JMP Securities serving as co-manager.
Pharmasset is a clinical stage pharmaceutical company committed to discovering, developing and commercializing novel drugs to treat viral infections. Pharmasset’s primary focus is on the development of oral therapeutics for the treatment of human immunodeficiency virus (HIV), hepatitis B virus (HBV) and hepatitis C virus (HCV).
American Re earnings drop
American Re Corporation, based in Plainsboro, reported first quarter 2006 net income of $56.5 million, compared to $88.5 million in the first quarter of 2005. The decline in earnings was primarily attributable to higher interest expense on ceded funds held, mainly for the loss portfolio transfer reinsurance agreement executed in 2005 with Munich Re, the American Re’s parent. Gross premiums written for the first quarter of 2006 were $889.3 million compared to $954.1 million in 2005.
Commenting on the results, American Re Chairman John Phelan said, "American Re’s first quarter earnings were in line with our expectations. Although the loss portfolio transfer had a dampening effect on current earnings, it also significantly strengthened the company’s capital position."
DotPhoto obtains new equity
Ewing-based dotPhoto announced the closing of a $3.5 million second-round equity commitment from Edison Venture Fund and Sycamore Ventures. This brings the cumulative investment in dotPhoto from the two investors to $7.5 million. DotPhoto is a provider of photo, video, and multimedia sharing and storage applications and services for wireless and online users. The company announced the re-launch of dotPhotoPro.com, its professional photo-sharing Web site, and the launch of a comprehensive new portfolio of photo-sharing applications for the global wireless industry.
Integra quarterly results increase
Plainsboro-based Integra LifeSciences Holdings Corporation (Nasdaq:IART) reported improved first quarter financial results. Total revenues in the first quarter of 2006 were $77.1 million, reflecting a 17 percent increase of $11.3 million over the first quarter of 2005. Net income was $8.7 million, or 28 cents per share, for the first quarter of 2006, compared to net income of $8.4 million, or 26 cents per diluted share in the first quarter of 2005.
When adjusted for certain acquisition and restructuring related charges, costs related to systems integrations and the impact of share-based compensation, net income for the first quarter of 2006 was $11.7 million, or 37 cents per share. In the first quarter of 2005, adjusted net income was $8.9 million, or 27 cents per share.
"We achieved record revenues in the first quarter," stated Stuart M. Essig, Integra’s president and CEO. "During the quarter, we acquired the assets of the Radionics Division of Tyco Healthcare Group LP and began the integration of that business into Integra. We also continued to cut costs and improve margins. Last month, we announced our agreement to acquire the Miltex group of companies, which we expect to close later this month. We are excited to see an increase in our acquisition-related activities this year."
Integra LifeSciences is a diversified medical technology company that develops, manufactures, and markets medical devices for use in neuro-trauma and neurosurgery, reconstructive surgery and general surgery.
Cytogen Corp. loss increases
Cytogen Corporation (Nasdaq: CYTO), a cancer based in Plainsboro, reported consolidated financial results for the first quarter ended March 31, 2006. Revenues for the first quarter of 2006 were $4.4 million compared to $4.0 million in the same period in 2005, representing a 12 percent increase. Cytogen reported a net loss of $7.7 million, or 34 cents per share in the first quarter of 2006, compared to $6.6 million, or 43 cents per share, for the same period in 2005.
Cytogen said the increase in net loss was primarily driven by a $1.2 million expense related to the production of clinical materials to support upcoming studies of CYT-500 (a therapeutic radiolabeled anti-PSMA monoclonal antibody being developed by Cytogen), and other charges and expenses.
"We have entered 2006 with continuing success in all areas of our business," stated Michael D. Becker, president and chief executive officer. "From a commercial perspective, we continue to develop the infrastructure and product pipeline that we believe is necessary to build a long-term, sustainable business." Founded in 1980, Cytogen is a biopharmaceutical company dedicated acquiring, developing and commercializing innovative molecules targeting the sites and stages of cancer progression.
Hopewell Valley Bank earnings up
Hopewell Valley Community Bank released improved first quarter earnings. HVCB reported net income of $349,128 for the first quarter of 2006, a 2.6 percent increase over net income of $340,335 for the same period a year ago. Interest income increased nearly 20 percent, to $1.8 million for the first quarter of 2006 from $1.5 million a year ago. Bank assets also increased nearly 19 percent, to $206.5 million for the first quarter of 2006, up from $173.8 million a year ago.
Universal Display results improve
Universal Display Corporation (Nasdaq:PANL), a developer of organic light emitting diode technologies for flat panel displays, lighting and other opto-electronic applications, announced revenues for the first quarter ended March 31, 2006 totaling $3.3 million compared to $1.5 million for the comparable quarter in 2005. The company attributed the increase in revenues to the recent signing of a material supply agreement with a major display manufacturer.
For the first quarter of 2006, Universal Display reported a net loss of $3.5 million, or 12 cents per share, compared to a net loss of $5 million, or 18 cents per share for the first quarter of 2005. During the first quarter of 2006, cash used in operating activities was $3.3 million, compared to $1.2 million for the first quarter of 2005.
"This quarter was another step forward for Universal Display, as we saw increases in revenues, a narrowing of the net loss, and increasing demand and interest for our PHOLED phosphorescent OLED technology," said Sidney D. Rosenblatt, UDC chief financial officer, in a prepared statement. "While we are pleased with the revenue progress this quarter, it is still difficult to predict financial results on a quarter-to-quarter basis due to the emerging nature of the OLED industry," Mr. Rosenblatt said.