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ExamWorks Reports Fourth Quarter and Full Year 2012 Financial Results

ATLANTA, GA -- (Marketwire) -- 02/27/13 -- ExamWorks Group, Inc. (NYSE: EXAM), a leading provider of independent medical examinations ("IMEs"), peer reviews, bill reviews and related services, today reported financial results for the fourth quarter and the full year of 2012.

Q4 and Full Year 2012 Highlights

  • Revenues for the fourth quarter of 2012 were $139.6 million, an increase of $24.3 million, or 21.1%, over the year-ago quarter revenues of $115.3 million. Excluding the impact of acquisitions completed within the past twelve months, organic revenue grew by 5.4% over the prior year quarter.

  • Pro forma revenues for the fourth quarter of 2012 were $142.6 million, an increase of $10.5 million, or 7.9%, over the year-ago quarter pro forma revenues of $132.1 million. Excluding the impact of currency, revenues would have grown by 6.9% over the prior year pro forma quarter. Pro forma revenues assume that acquisitions completed in 2011 and 2012 were completed on January 1, 2010 and 2011, respectively.

  • Adjusted EBITDA for the fourth quarter of 2012 was $20.3 million (14.6% of revenues), an increase of $3.5 million, or 20.8%, over the year-ago quarter adjusted EBITDA of $16.8 million. Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net loss below and is not a substitute for the GAAP equivalent.

  • Revenues for the year ended December 31, 2012 were $521.2 million, an increase of $123.3 million, or 31.0%, over the prior year revenues of $397.9 million. Adjusted EBITDA for the year ended December 31, 2012 was $79.8 million, an increase of 26.1% over the prior year.

  • Pro forma revenues for the year ended December 31, 2012 were $573.7 million, an increase of 5.6%, over the prior year pro forma revenues. Excluding the impact of currency, revenues would have grown by 5.9% over the prior year pro forma period. Pro forma adjusted EBITDA for the year ended December 31, 2012 was approximately $92 million.

  • On December 19, 2012, we completed the acquisition of PMG, based in Southern California, for net cash consideration of $11.8 million. The PMG acquisition increases our market position in the workers' compensation market. On an annual basis, PMG generated revenues of approximately $12.5 million and adjusted EBITDA of approximately $2.5 million. In the fourth quarter of 2012, PMG contributed revenues and adjusted EBITDA of $285,000 and $52,000, respectively.

Commentary

Commenting on today's earnings announcement, James K. Price, Chief Executive Officer of ExamWorks, said: "During 2012, we continued to redefine the IME industry by raising customer expectations for quality and service. We are continuing our investment in developing cloud-based technology that keeps customer data safe and secure and better integrates our customers' processes with ours, thereby increasing connectivity and efficiency. With $574 million and approximately $92 million of pro forma run rate revenue and EBITDA and growing, we will continue raising the bar as we solidify our reputation as the global IME industry leader."

Richard E. Perlman, Executive Chairman of ExamWorks, said: "We are delighted with our financial and operating results, particularly the growth of our U.K. and Australian businesses, as well as the positive trends in our U.S. and Canadian businesses. Our performance reflects the solid execution of our integration, multiple brand, technology and geographic diversification strategies, which combined with our national account focus, will continue to drive increasing revenue and EBITDA growth in 2013 and beyond."

Financial Review

Revenues - For the three months ended December 31, 2012, revenues were $139.6 million, an increase of 21.1% over the $115.3 million in revenues in the fourth quarter of 2011. Excluding the impact of acquisitions completed within the past twelve months, organic revenue grew by 5.4% over the prior year quarter.

For the year ended December 31, 2012, revenues were $521.2 million, an increase of 31.0% over the $397.9 million in revenues in the comparable period of 2011. Excluding the impact of acquisitions completed in 2011 and 2012, organic revenue grew by 3.4% over the comparable prior year period.

Below is a table presenting our pro forma revenues and growth rates for each of the regions that we serve. The numbers presented below are pro forma for the effect of acquisitions completed in 2011 and 2012.


                             Pro Forma Revenues
---------------------------------------------------------------------------
                                     (In thousands except %)
                         Three Months Ended
                            December 31,           Year Ended December 31,
                     --------------------------  --------------------------
                                         Change                      Change
                        2011      2012     (a)      2011      2012     (b)
                     --------- --------- ------  --------- --------- ------
ExamWorks U.S.       $  83,476 $  82,673  (1.0)% $ 345,215 $ 352,817    2.2%
United Kingdom          27,969    35,804   28.0%   111,083   131,279   18.2%
Australia               13,252    16,936   27.8%    49,793    61,474   23.5%
Canada                   7,404     7,139  (3.6)%    37,190    28,166 (24.3)%
                     --------- --------- ------  --------- --------- ------
Total                $ 132,101 $ 142,552    7.9% $ 543,281 $ 573,736    5.6%
                     ========= ========= ======  ========= ========= ======

(a) For the three months ended December 31, 2012 and excluding the impact of
    currency, our growth in the U.K. would have been 25.4%, our growth in
    Australia would have been 24.6%, the decline in Canada would have been
    (6.5)%, and our total growth would have been 6.9%.
(b) For the year ended December 31, 2012 and excluding the impact of
    currency, our growth in the U.K. would have been 19.5%, our growth in
    Australia would have been 23.3%, the decline in Canada would have been
    (23.2)%, and our total growth would have been 5.9%.

In the fourth quarter of 2012, our U.S. businesses generated pro forma revenues of $82.7 million, a (1.0)% decline from the $83.5 million of pro forma revenues generated in the fourth quarter of 2011. In the fourth quarter, our U.S. revenues were negatively impacted by an estimated $3 million as a result of Hurricane Sandy. For the year ended December 31, 2012, our U.S. businesses generated revenues of $352.8 million, a 2.2% increase over the $345.2 million of pro forma revenues generated in the year ended December 31, 2011. The growth was largely due to increased volumes resulting from market share gains.

In the fourth quarter of 2012, our U.K. businesses generated revenues of $35.8 million, a 28.0% increase over the $28.0 million of revenues generated in the fourth quarter of 2011. For the year ended December 31, 2012, our U.K. businesses generated revenues of $131.3 million, an 18.2% increase over the $111.1 million of pro forma revenues generated in the year ended December 31, 2011. The growth was largely due to increased volumes resulting from market share gains.

In the fourth quarter of 2012, our Australian business generated pro forma revenues of $16.9 million, a 27.8% increase over the $13.3 million of pro forma revenues generated in the fourth quarter of 2011. For the year ended December 31, 2012, our Australian business generated pro forma revenues of $61.5 million, a 23.5% increase over the $49.8 million of pro forma revenues generated in the year ended December 31, 2011. The growth was primarily due to increased volumes resulting from market share gains and a change in sales mix.

In the fourth quarter of 2012, our Canadian businesses generated revenues of $7.1 million, a (3.6)% decline from the $7.4 million of pro forma revenues generated in the fourth quarter of 2011. For the year ended December 31, 2012, our Canadian businesses generated pro forma revenues of $28.2 million, a (24.3)% decline from the $37.2 million of pro forma revenues generated in the year ended December 31, 2011. Our Canadian businesses, which generate less than 5% of our total revenues, continue to be negatively impacted by the legislative changes in the province of Ontario, to a much lesser extent in the fourth quarter of 2012.

Costs of revenues - For the three months ended December 31, 2012, costs of revenues were $92.6 million, an increase of 21.8% over the $76.0 million in costs of revenues in the fourth quarter of 2011. The change was primarily due to the acquired costs of revenues for acquisitions completed in 2011 and 2012. Costs of revenues as a percentage of revenues for the fourth quarter of 2012 were 66.3% compared to 65.9% in the fourth quarter of 2011. Included in costs of revenues in the fourth quarter of 2011 and 2012 are $650,000 and $755,000 of share-based compensation expenses, respectively.

Selling, general and administrative expenses ("SGA") - For the three months ended December 31, 2012, SGA expenses were $28.9 million, an increase of 14.2% over the $25.3 million in SGA expenses in the fourth quarter of 2011. The change was primarily due to the acquired SGA expenses for acquisitions completed in 2011 and 2012. Included in SGA expenses in the fourth quarter of 2012 are $439,000 in share-based compensation expenses and $944,000 in acquisition-related transaction and other non-recurring costs. Included in SGA expenses in the fourth quarter of 2011 were $1.8 million in share-based compensation expenses and $413,000 in acquisition-related transaction costs and other non-recurring costs.

Depreciation and amortization expenses ("D&A") - For the three months ended December 31, 2012, D&A expenses were $16.3 million, an increase of 14.0% over the $14.3 million in D&A expenses in the fourth quarter of 2011. The change was primarily due to acquisitions completed in 2011 and 2012. For the three months ended December 31, 2012, depreciation expense was $1.5 million and amortization expense was $14.8 million.

Interest and other expenses, net - For the three months ended December 31, 2012, interest and other expenses, net were $7.8 million, an increase of 13.0% over the $6.9 million in interest and other expenses, net in the three months ended December 31, 2011. Included in interest and other expenses, net in the fourth quarter of 2012 are $7.8 million of interest expenses and deferred loan cost amortization.

Adjusted EBITDA - For the three months ended December 31, 2012, adjusted EBITDA was $20.3 million, an increase of 20.8% over the $16.8 million in adjusted EBITDA in the fourth quarter of 2011.

Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net loss below and is not a substitute for the GAAP equivalent.

Other financial data - We generated $24.8 million of cash flow from operations in 2012, of which $9.7 million was generated in the fourth quarter. We ended the quarter with $8.6 million of cash on hand, approximately $385.0 million of total debt and total leverage of 4.15x. Our total debt consisted of $250.0 million of senior unsecured notes due July 2019, $99.9 million outstanding under the senior secured revolving credit facility, $34.5 million outstanding under the working capital facilities in the U.K., and $575,000 in seller subordinated notes. As of the end of the year, our committed availability under our credit facilities was approximately $180 million, of which approximately $55 million is immediately available and the balance of approximately $125 million is available to fund future acquisitions.

Business Outlook

ExamWorks is providing the following business outlook for the full year and the first quarter of 2013:

  • Full year 2013 reported revenues are expected to increase organically by 5-7% from our 2012 pro forma revenues of approximately $574 million, excluding the effects of currency.

  • Full year 2013 adjusted EBITDA margins are expected to range between 15.5% and 16.5% of reported revenues. The 50 bps change from our prior guidance is the result of significantly higher healthcare costs and employee enrollment into our benefit plans than originally anticipated. On a quarterly basis, adjusted EBITDA margins as a percentage of revenue will fluctuate between 15% and 17%.

  • First quarter 2013 reported revenues are expected to range between $144 million and $148 million.

  • First quarter 2013 reported adjusted EBITDA margins are expected to be approximately 15% of reported revenues.

  • Starting in 2013, we intend to announce acquisitions as they close rather than guiding to an annual number. We believe that this will allow analysts and shareholders to more accurately and consistently model our expected results going forward.

About ExamWorks Group

ExamWorks Group, Inc. is a leading provider of independent medical examinations ("IMEs"), peer and bill reviews and related services. We help our clients manage costs and enhance their risk management processes by verifying the validity, nature, cause and extent of claims, identifying fraud and providing fast, efficient and quality IME services. ExamWorks is focused on providing clients a national presence while maintaining the local service and capabilities they need and expect.

Non-GAAP Financial Measures

In connection with the ongoing operation of our business, our management regularly reviews Adjusted EBITDA, a non-GAAP financial measure, to assess our performance. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, acquisition-related transaction costs, share-based compensation expenses, and other non-recurring costs. We believe that Adjusted EBITDA is an important measure of our operating performance because it allows management, lenders, investors and analysts to evaluate and assess our core operating results from period to period after removing the impact of changes to our capitalization structure, acquisition related costs, income tax status, and other items of a non-operational nature that affect comparability.

We believe that various forms of the Adjusted EBITDA metric are often used by analysts, investors and other interested parties to evaluate companies such as ours for the reasons discussed above. Additionally, Adjusted EBITDA is used to measure certain financial covenants in our credit facility. Adjusted EBITDA is also used for planning purposes and in presentations to our Board of Directors as well as in our incentive compensation programs for our employees.

Non-GAAP information should not be construed as an alternative to GAAP information, as the items excluded from the non-GAAP measures often have a material impact on our financial results. Management uses, and investors should use, non-GAAP measures in conjunction with our GAAP results.

Below is a table presenting a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP measure, for each of the periods indicated.

Forward Looking Statements

Statements made in this press release that express ExamWorks' or management's intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements, which ExamWorks intends to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate," or the negative of these terms or other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements may include information concerning ExamWorks' possible or assumed future results of operations, including descriptions of ExamWorks' revenues, profitability, outlook and overall business strategy. You should not place undue reliance on these statements because they are subject to numerous uncertainties and factors relating to ExamWorks' operations and business environment, all of which are difficult to predict and many of which are beyond ExamWorks' control. Although ExamWorks believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many uncertainties and factors could affect ExamWorks' actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements, including but not limited to: our ability to implement our growth strategy and acquisition program; our ability to integrate completed acquisitions; our expansion into international markets; our ability to secure additional financing; regulation of our industry; our information technology systems; our ability to protect our intellectual property rights and other information; our ability to compete successfully with our competitors; our ability to retain qualified physicians and other medical providers for our medical panel; our ability to retain our clients; our ability to provide accurate health-related risk assessment analyses of data; our ability to retain key management personnel; and restrictions in our credit facility, senior notes indenture and future indebtedness. In addition, the risks discussed in our periodic reports, registration statements and other filings with the Securities and Exchange Commission could cause actual results to differ materially from the results anticipated by forward-looking statements.

You should keep in mind that any forward-looking statement made by ExamWorks herein, or elsewhere, speaks only as of the date on which made. ExamWorks expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in ExamWorks' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

ExamWorks will host a conference call to discuss the results and other matters at 5:00 p.m. Eastern Time. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio software. Interested parties may participate live via telephone by dialing (866) 713-8563 in the U.S. or (617) 597-5311 internationally with access code 50540404. A live webcast of the call is also accessible through the Investor Relations section of the company's web site at http://investorrelations.examworks.com/.

Following the conclusion of the call, a replay of the webcast will be available at the company's web site within two hours. Alternatively, a telephonic replay of the call will be available at 7:00 p.m. Eastern Time, and can be accessed until March 6th, 2013 at midnight Eastern Time, by calling (888) 286-8010 in the U.S. or (617) 801-6888 internationally, with access code 72477425.



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                   Consolidated Statements of Operations
             (In thousands, except share and per share amounts)
                                (Unaudited)

                           For the three months       For the year ended
                            ended December 31,           December 31,
                         ------------------------  ------------------------
                             2011         2012         2011         2012
                         -----------  -----------  -----------  -----------

Revenues:                $   115,312  $   139,637  $   397,860  $   521,237
Costs and expenses:
  Costs of revenues           76,017       92,575      262,242      344,051
  Selling, general and
   administrative
   expenses                   25,348       28,868       84,133      113,510
  Depreciation and
   amortization               14,286       16,306       47,439       58,551
                         -----------  -----------  -----------  -----------
    Total costs and
     expenses                115,651      137,749      393,814      516,112
                         -----------  -----------  -----------  -----------
    Income (loss) from
     operations                 (339)       1,888        4,046        5,125
                         -----------  -----------  -----------  -----------

Interest and other
 expenses, net:
  Interest expense, net        6,558        7,814       15,480       27,968
  Loss on early
   extinguishment of
   debt                            -            -          621            -
  Other income                     -            -            -         (226)
  Gain on interest rate
   swap                          (75)         (56)        (328)        (225)
  Realized foreign
   currency loss                 465            -          688          534
                         -----------  -----------  -----------  -----------

    Total interest and
     other expenses, net       6,948        7,758       16,461       28,051
                         -----------  -----------  -----------  -----------

    Loss before income
     taxes                    (7,287)      (5,870)     (12,415)     (22,926)

Income tax benefit            (2,262)      (3,187)      (4,082)      (7,987)
                         -----------  -----------  -----------  -----------

    Net loss             $    (5,025) $    (2,683) $    (8,333) $   (14,939)
                         ===========  ===========  ===========  ===========

Per Share Data:

  Net loss per share:
    Basic and diluted    $     (0.15) $     (0.08) $     (0.25) $     (0.44)
                         ===========  ===========  ===========  ===========

  Weighted average
   number of common
   shares outstanding:
    Basic and diluted     34,223,906   34,287,093   33,975,658   34,141,098
                         ===========  ===========  ===========  ===========

Adjusted EBITDA          $    16,809  $    20,332  $    63,304  $    79,789
                         ===========  ===========  ===========  ===========



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                        Consolidated Balance Sheets
             (In thousands, except share and per share amounts)
                                (Unaudited)

                                                        December 31,
                                                 --------------------------
                     ASSETS                          2011          2012
                                                 ------------  ------------

Current assets:
  Cash and cash equivalents                      $      8,416  $      8,627
  Accounts receivable, net                            144,041       144,676
  Other receivables                                        40            21
  Prepaid expenses                                      4,487         5,336
  Deferred tax assets                                   1,640            16
  Other current assets                                  1,173         1,213
                                                 ------------  ------------
    Total current assets                              159,797       159,889

Property, equipment and leasehold improvements,
 net                                                    8,918        10,333
Goodwill                                              300,260       370,143
Intangible assets, net                                146,168       152,896
Long-term accounts receivable, less current
 portion                                                    -        31,708
Deferred tax assets, noncurrent                             -         4,173
Deferred financing costs, net                          11,458        10,258
Other assets                                              438         1,101
                                                 ------------  ------------

    Total assets                                 $    627,039  $    740,501
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                               $     42,642  $     46,940
  Accrued expenses                                     28,410        35,995
  Accrued interest expense                             10,247        10,918
  Deferred revenue                                      1,332         3,951
  Current portion of subordinated unsecured
   notes payable                                        1,932           275
  Current portion of contingent earnout
   obligation                                              91            91
  Current portion of working capital facilities             -         5,983
  Other current liabilities                             5,459         5,973
                                                 ------------  ------------
    Total current liabilities                          90,113       110,126

Senior unsecured notes payable                        250,000       250,000
Senior secured revolving credit facility and
 working capital facilities, less current
 portion                                               44,063       128,402
Long-term subordinated unsecured notes payable,
 less current portion                                     717           300
Long-term contingent earnout obligation, less
 current portion                                           86             -
Deferred tax liability, noncurrent                      2,159             -
Other long-term liabilities                             1,977         7,525
                                                 ------------  ------------
    Total liabilities                                 389,115       496,353
                                                 ------------  ------------

Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.0001 par value; Authorized
 50,000,000 shares; no shares issued and
 outstanding at December 31, 2011 and 2012,
 respectively                                               -             -
Common stock, $0.0001 par value; Authorized
 250,000,000 shares; issued and outstanding
 34,090,618 and 34,341,360 at December 31, 2011
 and 2012, respectively                                     3             3
Additional paid-in capital                            268,162       285,938
Accumulated other comprehensive income (loss)          (1,429)        3,183
Accumulated deficit                                   (21,549)      (36,488)
Treasury stock, at cost: Outstanding 805,613 and
 905,349 shares at December 31, 2011 and 2012,
 respectively                                          (7,263)       (8,488)
                                                 ------------  ------------
    Total stockholders' equity                        237,924       244,148
                                                 ------------  ------------

    Total liabilities and stockholders' equity   $    627,039  $    740,501
                                                 ============  ============



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                   Consolidated Statements of Cash Flows
                               (In thousands)
                                (Unaudited)

                                                     For the year ended
                                                        December 31,
                                                 --------------------------
                                                     2011          2012
                                                 ------------  ------------

Operating activities:
  Net loss                                       $     (8,333) $    (14,939)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
    Gain on interest rate swap                           (328)         (225)
    Depreciation and amortization                      47,439        58,551
    Amortization of deferred rent                        (450)          (82)
    Share-based compensation                            7,834        13,756
    Excess tax benefit related to share-based
     compensation                                           -        (2,853)
    Provision for doubtful accounts                     2,297         2,852
    Amortization of deferred financing costs            1,941         2,190
    Deferred income taxes                              (6,364)      (21,201)
    Loss on early extinguishment of debt                  621             -
    Other                                                   -           (31)
    Changes in operating assets and liabilities,
     net of effects of acquisitions:
      Accounts receivable                              (9,047)      (24,666)
      Prepaid expenses and other current assets        (1,801)          (64)
      Accounts payable and accrued expenses            (1,907)        8,300
      Accrued interest expense                         10,240           671
      Deferred revenue and customer deposits             (169)        2,425
      Other liabilities                                (2,430)           93
                                                 ------------  ------------
      Net cash provided by operating activities        39,543        24,777
                                                 ------------  ------------

Investing activities:
    Cash paid for acquisitions, net                  (322,248)     (108,970)
    Purchases of equipment and leasehold
     improvements, net                                 (6,856)       (5,841)
    Working capital and other settlements for
     acquisitions                                      (6,710)          427
                                                 ------------  ------------
      Net cash used in investing activities          (335,814)     (114,384)
                                                 ------------  ------------

Financing activities:
    Borrowings under credit facilities                278,000       170,640
    Excess tax benefit related to share-based
     compensation                                           -         2,853
    Proceeds from the exercise of options and
     warrants                                           2,292         2,258
    Borrowings under senior unsecured notes
     payable                                          250,000             -
    Purchases of treasury stock                        (9,421)         (387)
    Payment of deferred financing costs                (9,746)       (1,074)
    Repayment of subordinated unsecured notes
     payable                                           (2,421)       (2,193)
    Net borrowings (repayments) under working
     capital facilities                                35,621        (6,279)
    Repayment under credit facilities                (273,000)      (76,000)
    Other                                                (440)          (94)
                                                 ------------  ------------
      Net cash provided by financing activities       270,885        89,724
                                                 ------------  ------------

Exchange rate impact on cash and cash
 equivalents                                              178            94

Net increase (decrease) in cash and cash
 equivalents                                          (25,208)          211
Cash and cash equivalents, beginning of year           33,624         8,416
                                                 ------------  ------------
Cash and cash equivalents, end of year           $      8,416  $      8,627
                                                 ============  ============



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                     Reconciliation to Adjusted EBITDA
                               (In thousands)
                                (Unaudited)

                                 For the three months      For the year
                                  ended December 31,    ended December 31,
                                 --------------------  --------------------
                                    2011       2012       2011       2012
                                 ---------  ---------  ---------  ---------

Reconciliation of Adjusted
 EBITDA:

Net loss                         $  (5,025) $  (2,683) $  (8,333) $ (14,939)
  Share-based compensation
   expense (1)                       2,449      1,194      7,834     13,756
  Depreciation and amortization     14,286     16,306     47,439     58,551
  Acquisition-related
   transaction costs                   403        385      3,107      1,655
  Other non-recurring costs             10        559        878        702
  Interest and other expenses,
   net                               6,948      7,758     16,461     28,051
  Benefit for income taxes          (2,262)    (3,187)    (4,082)    (7,987)
                                 ---------  ---------  ---------  ---------
Adjusted EBITDA                  $  16,809  $  20,332  $  63,304  $  79,789
                                 =========  =========  =========  =========

(1) Share-based compensation expense of $755,000 and $3.0 million is
    included in costs of revenues for the three and twelve months ended
    December 31, 2012 and the remainder is included in SGA expenses. Share-
    based compensation expense of $650,000 and $2.0 million is included in
    costs of revenues for the three and twelve months ended December 31,
    2011 and the remainder is included in SGA expenses.

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Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
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The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...