Mobile payments, or the notion that you can pay for goods and services at the checkout with your smartphone, may finally break into the mainstream if Apple and the iPhone 6 get involved.
While Apple doesn't talk about future products, Wired was the latest to report that the next iPhone would include mobile-payment capabilities powered by a short-distance wireless technology called near-field communication, or NFC. Apple is hosting an event on Sept. 9 that's widely expected to be the debut of the next iPhone or iPhones.
Apple's embrace of mobile payments would represent a watershed moment for how people pay at drugstores, supermarkets, or for cabs. The technology and capability to pay with a tap of your mobile device has been around for years -- you can tap an NFC-enabled Samsung Galaxy S5 or NFC-enabled credit card at point-of-sale terminals found at many Walgreen drugstores -- but awareness and usage remain low. Apple's visibility and massive user base - it already holds credit card data for about 800 million iTunes account holders -- could change that.
"Apple has again the opportunity to transform, disrupt and reshape an entire business sector," said Roger Entner, a consultant at Recon Analytics. "It is hard to overestimate what impact Apple could have if it really wants to play in the payments market."
Sunday, August 31, 2014
Heavy insider selling at the following companies
With the surging stock market in rally and holiday mode this past week, the pace and volume dropped to the usual levels expected as summer comes to a close. This certainly didn’t prevent insiders at some of the top firms on Wall Street from selling shares.
Insider selling is significant, but it is not always a warning sign. Many top company officials sell stock for diversification, to expand their portfolios or to make other capital expenditures and purchases. With that in mind, if top company officials are selling stock that has made headlines with issues and problems, investors should take note.
Southwest Airlines Co. (NYSE: LUV) has had a fantastic year, and it rewarded shareholders by trading to record highs. This prompted the CEO, COO and an executive vice president to sell a total of 288,683 shares at prices that ranged from $31.22 to $31.41. The trades totaled $9 million. While a significant sell, many analysts on Wall Street remain very positive on the airline. Shares were trading at Friday’s close at $32.01.
Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) has been a very hot Wall Street stock, and many think the company could be one of the next biotech takeover targets. That didn’t stop OrbiMed Advisors from selling 111, 258 shares of the stock at prices from $295.59 to $300.07. The sales brought in a gigantic $33.2 million. Intercept shares closed Friday at $289.72.
Plug Power Inc. (NASDAQ: PLUG) is a volatile high-profile name that saw some substantial selling that may raise some eyebrows. A director from Air Liquide Investments sold a huge 5,521,676 shares at $5.80 in a trade that brought in about $32 million. While the company recently beat earnings expectations and posted the first profit in its history, shareholders may want to review their thesis on the stock after the large sell. Shares closed Friday at $5.58.
Pandora Media Inc. (NYSE: P) is another Wall Street favorite that caught some insider selling this past week. The music streaming leader saw an affiliate of director, Crosslink Capital, sell 142,000 shares of the stock at prices that ranged from $27.25 to $27.31. The total for the sale came to $3.9 million. Pandora closed Friday at $27.04.
3D Systems Corp. (NYSE: DDD) is in the very hot 3D printing arena, and it has been an extremely volatile stock this year. The CFO of the company sold a tidy 50,000 shares of the stock at $52.72. The total sale came to a very nice $2.6 million. 3D Systems shares were changing hands at $53.51 as the week’s trading came to an end.
Tableau Software Inc. (NYSE: DATA) is another high-flying technology stock that saw top executives sell shares. Two directors at Tableau sold a total of 104,624 shares, which brought in $6.4 million. Shares ended the week at $65.49.
Other top companies that saw substantial insider selling this week included Cardiovascular Systems Inc. (NASDAQ: CSII), Epizyme Inc. (NASDAQ: EPZM), Altera Corp. (NASDAQ: ALTR) and Brookdale Senior Living Inc. (NYSE: BKD).
Insider selling is significant, but it is not always a warning sign. Many top company officials sell stock for diversification, to expand their portfolios or to make other capital expenditures and purchases. With that in mind, if top company officials are selling stock that has made headlines with issues and problems, investors should take note.
Southwest Airlines Co. (NYSE: LUV) has had a fantastic year, and it rewarded shareholders by trading to record highs. This prompted the CEO, COO and an executive vice president to sell a total of 288,683 shares at prices that ranged from $31.22 to $31.41. The trades totaled $9 million. While a significant sell, many analysts on Wall Street remain very positive on the airline. Shares were trading at Friday’s close at $32.01.
Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) has been a very hot Wall Street stock, and many think the company could be one of the next biotech takeover targets. That didn’t stop OrbiMed Advisors from selling 111, 258 shares of the stock at prices from $295.59 to $300.07. The sales brought in a gigantic $33.2 million. Intercept shares closed Friday at $289.72.
Plug Power Inc. (NASDAQ: PLUG) is a volatile high-profile name that saw some substantial selling that may raise some eyebrows. A director from Air Liquide Investments sold a huge 5,521,676 shares at $5.80 in a trade that brought in about $32 million. While the company recently beat earnings expectations and posted the first profit in its history, shareholders may want to review their thesis on the stock after the large sell. Shares closed Friday at $5.58.
Pandora Media Inc. (NYSE: P) is another Wall Street favorite that caught some insider selling this past week. The music streaming leader saw an affiliate of director, Crosslink Capital, sell 142,000 shares of the stock at prices that ranged from $27.25 to $27.31. The total for the sale came to $3.9 million. Pandora closed Friday at $27.04.
3D Systems Corp. (NYSE: DDD) is in the very hot 3D printing arena, and it has been an extremely volatile stock this year. The CFO of the company sold a tidy 50,000 shares of the stock at $52.72. The total sale came to a very nice $2.6 million. 3D Systems shares were changing hands at $53.51 as the week’s trading came to an end.
Tableau Software Inc. (NYSE: DATA) is another high-flying technology stock that saw top executives sell shares. Two directors at Tableau sold a total of 104,624 shares, which brought in $6.4 million. Shares ended the week at $65.49.
Other top companies that saw substantial insider selling this week included Cardiovascular Systems Inc. (NASDAQ: CSII), Epizyme Inc. (NASDAQ: EPZM), Altera Corp. (NASDAQ: ALTR) and Brookdale Senior Living Inc. (NYSE: BKD).
Friday, August 29, 2014
What the hell is the deal with Radioshack
RadioShack (NYSE:RSH) shares have racked up four straight double-digit percentage gains on surging volume since speculation began Tuesday that the company would get a rescue financing package.
I for one think anyone who has speculated should take profits. Look, can the company be saved? Maybe. But is it worth the risk? Too many other good stocks to own. Dont get stuck holding the bag.
I for one think anyone who has speculated should take profits. Look, can the company be saved? Maybe. But is it worth the risk? Too many other good stocks to own. Dont get stuck holding the bag.
Will this bank get its wish??
Bank of America Corp. asked a federal judge to throw out the jury verdict that its Countrywide unit defrauded Fannie Mae (FNMA) and Freddie Mac, which resulted in a $1.3 billion civil penalty against the bank.
The trial evidence showed that the quality of the so-called High Speed Swim Lane mortgages Countrywide sold to Fannie and Freddie in 2007 and 2008 was “well within” the standards the companies expected, the bank said in its request today in federal court in Manhattan.
Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable by a jury in October in the first mortgage-fraud case brought by the federal government to go to trial. The Obama administration is using a 25-year-old anti-fraud statute to seek civil penalties from companies and individuals it deems responsible for the 2008 subprime crisis.
“The evidence unambiguously showed that the HSSL loans sold to Fannie and Freddie were well within industry standards for loan quality, and thus Fannie and Freddie received exactly what they paid for,” the Charlotte, North Carolina-based bank said in today’s filing.
U.S. District Judge Jed Rakoff on July 30 ordered Countrywide to pay a $1.3 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act, the 1989 law under which the Justice Department sued Countrywide and which provides for civil penalties for criminal violations.
At the trial, the government argued Countrywide committed a “simple but brazen” fraud by misrepresenting risky loans processed in 2007 and 2008 through its High Speed Swim Lane program as being of investment quality. The U.S. said Countrywide issued defective mortgages under the program and then sold them to Fannie and Freddie.
The trial evidence showed that the quality of the so-called High Speed Swim Lane mortgages Countrywide sold to Fannie and Freddie in 2007 and 2008 was “well within” the standards the companies expected, the bank said in its request today in federal court in Manhattan.
Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable by a jury in October in the first mortgage-fraud case brought by the federal government to go to trial. The Obama administration is using a 25-year-old anti-fraud statute to seek civil penalties from companies and individuals it deems responsible for the 2008 subprime crisis.
“The evidence unambiguously showed that the HSSL loans sold to Fannie and Freddie were well within industry standards for loan quality, and thus Fannie and Freddie received exactly what they paid for,” the Charlotte, North Carolina-based bank said in today’s filing.
U.S. District Judge Jed Rakoff on July 30 ordered Countrywide to pay a $1.3 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act, the 1989 law under which the Justice Department sued Countrywide and which provides for civil penalties for criminal violations.
At the trial, the government argued Countrywide committed a “simple but brazen” fraud by misrepresenting risky loans processed in 2007 and 2008 through its High Speed Swim Lane program as being of investment quality. The U.S. said Countrywide issued defective mortgages under the program and then sold them to Fannie and Freddie.
Coal to make a comeback?
Saw this story coming. Think Russia/US issues. Beaten-down U.S. coal company stocks may receive a lift in coming weeks if deteriorating relations between Russia and the West push President Vladimir Putin to shut off Europe’s natural gas supply.
"Export demand will certainly increase, with the situation in Russia and Ukraine having a big impact on Europe with respect to natural gas," said Ernie Cecilia, chief investment officer at Bryn Mawr Trust in Bryn Mawr, Pennsylvania.
"In the short term, there's no question that a rise in export demand will be helpful to coal stocks."
Yet significant headwinds at home would likely make any comeback in coal companies’ stocks short-lived and hard-fought.
Even as the broader stock market has rebounded from the lows seen during the financial crisis, coal stocks have languished.
Shares of Peabody Energy Corp (BTU.N), the biggest U.S. producer of coal, have declined more than 27 percent since March 9, 2009, when the S&P 500 hit its financial crisis nadir, closing at 676.53 points.
While the S&P has nearly tripled from that day, the Dow Jones U.S. Coal Index (.DJUSCL) has lost 7.7 percent in that time. The last three-plus years have been particularly bad for the coal index, which has lost nearly three-quarters of its value since April 2011.
The index includes just three stocks - Peabody, CONSOL Energy (CNX.N) and Alpha Natural Resources (ANR.N). CONSOL, which is more diversified and derives around a third of its revenue from natural gas, is the only one up on the year so far. It has gained 5.3 percent, but still lags the wider S&P 500 (.SPX), which is up more than 8 percent.
Peabody is down around 20 percent this year, and Alpha Natural has swooned 45 percent.
CONSOL is the only one of the three expected to show a profit in the next two years, according to Thomson Reuters StarMine, which tracks corporate profit estimates.
Competition with natural gas, the emergence of renewable energy technologies and new environmental regulations contributed to a fall in U.S. coal production in 2013 to the lowest levels since 1993, according to the Energy Information Administration.
Domestic coal consumption is slated to decline by 2.7 percent in 2015, as federal standards requiring power plants to reduce air pollution expedites a shuttering of coal power plants. U.S. coal consumption peaked in 2007 and has declined nearly 37 percent since then, EIA data shows.
That may temper any gains in coal stocks, both in scale and duration.
"I just don’t know if any of this – the situation in Russia and Ukraine – would be sufficient enough to overcome significant pressure in the domestic market," Cecilia said.
Energy stocks have overall remained favorable for investors, but not necessarily those with money in coal. The S&P 500 energy sector (.SPNY) is outperforming the wider index with a 9.3 percent gain so far in 2014.
"We look at the domestic energy landscape, and the abundant supply of natural gas has impacted coal dramatically," said Timothy Rooney, vice president of product management and research for Nationwide Funds.
"Generally, energy in the U.S. is a good long term investment, but that’s really being driven by oil and natural gas."
The crisis in eastern Ukraine has emboldened Europe and the United States to impose broad sanctions on Russia. But Europe finds itself in a precarious position, with almost a third of the natural gas the continent consumed in 2013 flowing from Russia, according to the U.S. Energy Information Administration.
Europe’s heightened concerns about energy security could provide an opportunity for U.S. coal companies, which have been hurt by declining domestic consumption, to step in and fill the gap as winter approaches. More than half of U.S. coal exports already reach Europe.
"Export demand will certainly increase, with the situation in Russia and Ukraine having a big impact on Europe with respect to natural gas," said Ernie Cecilia, chief investment officer at Bryn Mawr Trust in Bryn Mawr, Pennsylvania.
"In the short term, there's no question that a rise in export demand will be helpful to coal stocks."
Yet significant headwinds at home would likely make any comeback in coal companies’ stocks short-lived and hard-fought.
Even as the broader stock market has rebounded from the lows seen during the financial crisis, coal stocks have languished.
Shares of Peabody Energy Corp (BTU.N), the biggest U.S. producer of coal, have declined more than 27 percent since March 9, 2009, when the S&P 500 hit its financial crisis nadir, closing at 676.53 points.
While the S&P has nearly tripled from that day, the Dow Jones U.S. Coal Index (.DJUSCL) has lost 7.7 percent in that time. The last three-plus years have been particularly bad for the coal index, which has lost nearly three-quarters of its value since April 2011.
The index includes just three stocks - Peabody, CONSOL Energy (CNX.N) and Alpha Natural Resources (ANR.N). CONSOL, which is more diversified and derives around a third of its revenue from natural gas, is the only one up on the year so far. It has gained 5.3 percent, but still lags the wider S&P 500 (.SPX), which is up more than 8 percent.
Peabody is down around 20 percent this year, and Alpha Natural has swooned 45 percent.
CONSOL is the only one of the three expected to show a profit in the next two years, according to Thomson Reuters StarMine, which tracks corporate profit estimates.
Competition with natural gas, the emergence of renewable energy technologies and new environmental regulations contributed to a fall in U.S. coal production in 2013 to the lowest levels since 1993, according to the Energy Information Administration.
Domestic coal consumption is slated to decline by 2.7 percent in 2015, as federal standards requiring power plants to reduce air pollution expedites a shuttering of coal power plants. U.S. coal consumption peaked in 2007 and has declined nearly 37 percent since then, EIA data shows.
That may temper any gains in coal stocks, both in scale and duration.
"I just don’t know if any of this – the situation in Russia and Ukraine – would be sufficient enough to overcome significant pressure in the domestic market," Cecilia said.
Energy stocks have overall remained favorable for investors, but not necessarily those with money in coal. The S&P 500 energy sector (.SPNY) is outperforming the wider index with a 9.3 percent gain so far in 2014.
"We look at the domestic energy landscape, and the abundant supply of natural gas has impacted coal dramatically," said Timothy Rooney, vice president of product management and research for Nationwide Funds.
"Generally, energy in the U.S. is a good long term investment, but that’s really being driven by oil and natural gas."
Tuesday, August 26, 2014
Could this study be a huge impediment to fracking?
As many of you know I have a PhD in epidemiology and work in policy for one of the world's most influential Health Departments. We are constantly barraged by supporters and opponents of fracking. For me, it is about the data. It works to extract energy, but the harmful side effects are unclear. While the technique allows companies to pad the bottom lines. any involved could be hurt by fracking bans.
Well, bad news. The first research into the effects of oil and gas development on babies born near wells has found potential health risks. Government officials, industry advocates and the researchers themselves say more studies are needed before drawing conclusions.
While the findings are still preliminary, any documented hazards threaten to cast a shadow over hydraulic fracturing, or fracking -- the process of blasting chemicals, sand and water deep underground to extract fuel from rock that's helped push the U.S. closer to energy self-sufficiency than at any time since 1985.
"It's not really well understood how the environment interacts with genetics to produce these birth defects," said Lisa McKenzie of the Colorado School of Public Health, who conducted research published in January in the journal Environmental Health Perspectives. "We really need to do more study to see what the association is, if any, with natural gas development."
McKenzie and her colleagues discovered more congenital heart defects in babies born to mothers living near gas wells in Colorado. Two studies, which have not been peer reviewed, showed infants born near fracking sites in Pennsylvania were more likely to have low birth weight, a sign of developmental problems. In Utah, local authorities are investigating a spate of stillbirths after tests found dangerous levels of air pollution from the oil and gas industry.
Mitigate Risks
"The question isn't are there risks, the question is are there rules and regulations in place that effectively mitigate these risks and deal with problems should they occur, and the answer is yes," said Steve Everley, a spokesman for Washington-based Energy In Depth, an industry-funded group that promotes fracking. "The body of scientific knowledge has to advance gradually and you have to look at all of these things and the full spectrum. You can't just look at this one individual or this group of studies."
In published research, McKenzie and her colleagues found that babies born to mothers living with more than 125 wells within a mile (1.6 km) of their homes showed a 30 percent increase in congenital heart defects compared with those with no wells within 10 miles. The abnormalities, based on 59 available cases in Colorado, ranged in severity and could have resulted from genes or environmental causes other than fossil-fuel extraction, according to McKenzie.
The study wasn't conclusive because it didn't account for different types of wells, water quality, mothers' behavior or genetics, the Colorado Department of Public Health and Environment said in an e-mailed statement. The state's oil and gas rules are the most stringent in the nation, said Larry Wolk, the department's director and chief medical officer.
"I would tell pregnant women and mothers who live, or who at the time of their pregnancy lived, in proximity to a gas well not to rely on this study as an explanation of why one of their children might have had a birth defect," Wolk said in the statement. "Many factors known to contribute to birth defects were ignored in this study."
McKenzie said she's starting another four-year study, funded by the American Heart Association, that focuses on a subset of the cases to determine their precise exposures to pollutants and other risk factors, such as the parents' occupations.
"I think it's up to each individual to look at the data and make their own decision on whether or not they're concerned," McKenzie said. "The data do tell us with more wells in the area there are more congenital heart defects, although there are a lot of limitations in the data and when we start looking at it more closely, that may or may not stand up."
Separate Investigation
A separate investigation into 22 anomalies in unborn children in Garfield County, Colorado, in 2013 found no underlying cause after examining factors including proximity to active oil and gas wells, the state's public health department said in May. The county has more than 2,000 oil and gas wells, according to FracFocus.org, an industry-sponsored website.
Kathleen Sgamma, a spokeswoman for the Western Energy Alliance, an industry group whose members include Anadarko Petroleum Corp. (APC) and Pioneer Natural Resources Co. (PXD), said exploration and production companies are funding more research on health effects and are working to reduce emissions by installing equipment and adjusting practices.
"It's way too early to jump to conclusions," Sgamma said. "It's a real big leap that I don't think you can draw at this time at all, if ever, to say that because air pollution can cause birth defects, that's exactly what's happening."
Birth Defects
Two Pennsylvania studies, however, found increases in low birth weight near gas drilling. They haven't been published in peer-reviewed journals.
Infants born within 2.5 kilometers (1.6 miles) of fracking sites were about 60 percent more likely to have low birth weight, according to a review of Pennsylvania birth records from 2004 to 2011 by researchers from Princeton University, Columbia University and the Massachusetts Institute of Technology. The study was presented at the annual meeting of the American Economic Association in January.
That research echoed a December working paper by Elaine Hill, then an economics graduate student at Cornell University in Ithaca, New York, which found that babies born to mothers living within 2.5 kilometers of a gas well during pregnancy had lower average birth weights after drilling than before. The results were consistent between piped public water and well water, suggesting the exposure came from air pollution or stress, Hill said in the paper.
Birth Weight
Low birth weight leads to higher health-care expenses and greater likelihood of needing special education, amounting to a total cost to society of about $96,500 per child, according to the paper. Previous research has shown a link between air pollution and low birth weight in general, Hill said in the study.
In Utah's Uintah Basin, where at least 17 drillers operate, the air has dangerously high levels of ozone and other toxins from oil and gas emissions, according to measurements by researchers at the University of Colorado at Boulder in the first two months of 2012 and 2013. The basin has more than 11,000 oil and gas wells, with proposals for almost 25,000 more, the researchers said in the study, published in March in the journal Environmental Science & Technology. The area sits atop about 1.32 trillion barrels of oil, one of the largest oil shale deposits in the world, according to the U.S. Geological Survey.
Summer Smog
The rural area's air pollution was equivalent to the annual exhaust of 100 million cars and worse than Los Angeles's smog in the summer, according to the article. High ozone levels are known to cause breathing problems and early death, the researchers said.
Concerns surfaced this summer that the pollution might contribute to infant deaths in Vernal, a city of about 10,000 in the Uintah Basin.
Last year, a midwife named Donna Young delivered a stillborn baby for the first time in 19 years. At the funeral, she said she noticed the cemetery had a number of recent graves with single dates.
Official figures on infant mortality in 2013 aren't yet available, according to the state's Office of Vital Records and Statistics. So Young examined obituaries, counting 12 deaths in 2013, up from four a year earlier, three in 2011 and two in 2010. The rate appears to be six times the national average, according to Utah Physicians for a Healthy Environment.
"Whenever you see a pollution nightmare, if you look hard enough you're going to have a public health nightmare," said Brian Moench, a Salt Lake City anesthesiologist and president of the physicians' group. "There's enough evidence to suggest that this is a serious problem."
Besy buy--nice earnings but revenues terrible and the company issues warning.
First best buy (BBY) reported:
Comparable online sales +22%.
International comparable-store sales -6.7%.
Domestic gross profit rate -390 bps to 23.4%, overall -340 bps to 23.1%.
Domestic SG&A expense ratio -180 bps to 20.1%, overall -160 bps to 20.4%.
Inventory +2.7% to $5.583B.
Hubert Joly, Best Buy president and CEO, commented, "In the second quarter, we delivered $8.9 billion in revenue and $0.44 in non-GAAP diluted earnings per share versus $0.32 last year. The ongoing benefits of our Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results. On the topline, as expected, sales in the NPD tracked Consumer Electronics categories declined 2.5%4, in line with our Domestic comparable sales decline of 2.0%.
Joly continued, Like other retailers and as reflected in this quarters performance, we continued to see a shift in consumer behavior: consumers are increasingly researching and buying online. As a result, traffic to our brick and mortar stores continued to decline, yet our in-store conversion and online traffic continued to increase due to the execution of our Renew Blue strategy which is in direct alignment with this shift. Our Renew Blue strategy is designed to (1) grow our online business; (2) enhance our in-store customer experience; and (3) leverage our multi-channel capabilities; all to deliver to our customers great advice, service and convenience at competitive prices in the channel they want to be served.
During the quarter, we continued to make progress against this strategy, including (1) increasing our Net Promoter Score across channels by 400 basis points year-over-year; (2) improving our in-store experience by rolling out over 800 new Samsung and Sony home theater, 18 Pacific Kitchen and Home and 7 Magnolia Design Center stores-within-a-store; and (3) leveraging our new ship-from-store and digital marketing capabilities to drive a 22% increase in Domestic comparable online sales.
Joly concluded, Looking ahead, our goal is to continue to create a differentiated multi-channel customer experience such that every interaction customers have with us, regardless of channel, makes them a promoter of the Best Buy brand. In support of this, we will be intensifying our investments in customer-facing initiatives across both channels in the back half of the year.
Sharon McCollam, Best Buy EVP, CAO and CFO, commented, As Hubert remarked, industry-wide sales are continuing to decline in many of the consumer electronics categories in which we compete. We are also seeing ongoing softness in the mobile phone category ahead of highly-anticipated new product launches. Therefore, absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters. From an operating income rate perspective, we are expecting the following business drivers versus last year in the third and fourth quarters: (1) a similar promotional competitive environment, with better internal promotional effectiveness; (2) a greater mix of online revenue that will put pressure on the overall operating income rate due to a higher mix of lower-margin hardware sales and lower attach rates on services and accessories; (3) continued industry softness and higher promotionality in Canada and China; and (4) a net positive impact from our Renew Blue SG&A and COGS expense reductions which will more than offset our structural pricing investments, the remaining negative impact of our new credit card agreement, and the new incremental investment of $10 to $15 million in Q3 and $30 to $35 million in Q4 versus our original plan to intensify the investments in customer-facing initiatives that Hubert just referenced (a total of $40 to $50 million or $.07 to $0.09 per diluted share in the second half of FY15). As such, and particularly in light of the fixed cost deleverage that would accompany an expected low single-digit comparable sales decline, we are expecting the non-GAAP operating income rate in Q3 and Q4 to increase in line with the year-over-year improvement that we saw in the first half. Additionally, the estimated diluted earnings per share impact of the known discrete tax items that we discussed last quarter continue to be in the ranges of flat to negative $0.01 in Q3 FY15 and negative $0.09 to $0.10 in Q4 FY15.
Domestic Segment Second Quarter Results
Domestic Revenue
Domestic revenue of $7.59 billion declined 2.4% versus last year. This decline was primarily driven by (1) a comparable sales decline of 2.0%; and (2) a revenue decline of $20 million, or 25 basis points, due to the less favorable economics of the new credit card agreement.
Domestic online revenue was $581 million and comparable online sales increased 22.0% due to (1) substantially improved inventory availability made possible by the chain-wide rollout of our ship-from-store capability that was completed in January 2014; (2) a higher average order value; and (3) increased traffic driven by greater investment in online digital marketing.
From a merchandising perspective, growth in gaming, computing, appliances and televisions was more than offset by declines in other categories, including mobile phones, tablets, and services.
Domestic Gross Profit Rate
Domestic gross profit rate was 23.4% versus 27.3% last year. Excluding prior year legal settlements discussed in the Q2 FY14 earnings release, non-GAAP Domestic gross profit rate was 23.4% versus 23.9% last year. This 50-basis point decline was primarily due to (1) a mix shift into the lower-margin gaming and computing categories; (2) structural investments in price competitiveness, particularly in accessories; and (3) a 20-basis point negative impact related to the less favorable economics of the new credit card agreement. These declines were partially offset by (1) an increased mix of higher-margin large screen televisions and (2) the realization of our Renew Blue cost reductions and other supply chain cost containment initiatives.
Domestic Selling, General and Administrative Expenses (SG&A)
Domestic SG&A expenses were $1.52 billion or 20.1% of revenue versus $1.70 billion or 21.9% of revenue last year. On a non-GAAP basis, Domestic SG&A expenses were $1.51 billion or 19.9% of revenue versus $1.66 billion or 21.3% of revenue last year. This 140-basis point (or $147 million) rate decline was primarily driven by (1) the realization of Renew Blue cost reduction initiatives; and (2) tighter expense management throughout the company.
International Segment Second Quarter Results
International Revenue
International revenue of $1.31 billion declined 12.1% versus last year. This decline was primarily driven by (1) a comparable sales decline of 6.7% driven by China, Canada, and Mexico; (2) the negative impact of foreign currency exchange rate fluctuations; and (3) the loss of revenue from large-format store closures in China.
International Gross Profit Rate
International gross profit rate was 21.1% versus 22.3% last year. This 120-basis point rate decline was primarily driven by our Canadian business due to increased promotional activity and an increased mix of the lower-margin gaming category.
International SG&A
International SG&A expenses were $291 million or 22.2% of revenue versus $334 million or 22.4% of revenue last year. On a non-GAAP basis, International SG&A expenses were $290 million or 22.1% of revenue versus $332 million or 22.3% of revenue last year. This 20-basis point (or $42 million) rate decline was primarily driven by Renew Blue cost reductions and tighter expense management in Canada, and to a lesser extent, in China.
Renew Blue Cost Reduction Initiatives Update
Since our Q1 FY15 earnings release, Renew Blue annualized cost reductions have increased an additional $40 million, bringing the total Renew Blue annualized cost reductions to $900 million ($670 million in SG&A expenses and $230 million in cost of goods sold). This $40 million in cost reductions ($25 million in SG&A and $15 million in cost of goods sold) is primarily driven by (1) efficiency improvements in the US and Canada; (2) supply chain efficiencies; and (3) lower costs associated with returns, replacements and damages.
Dividends
On July 3rd, 2014, the company paid a quarterly dividend of $0.17 per common share outstanding, or $59 million.
| Revenue | Q2 FY15 | Q2 FY14 | ||||
| Revenue ($ in millions) | $8,896 | $9,266 | ||||
| Comparable sales % change1 | (2.7%) | (0.6%) | ||||
| Domestic Segment: | ||||||
| Comparable sales % change | (2.0%) | (0.4%) | ||||
| Comparable online sales % change | 22.0% | 10.5% | ||||
| International Segment: | ||||||
| Comparable sales % change | (6.7%) | (1.8%) | ||||
| Operating Income | Q2 FY15 | Q2 FY14 | ||||
| GAAP operating income as a % of revenue | 2.7% | 4.5% | ||||
| Non-GAAPoperating income as a % of revenue2 | 2.9% | 2.2% | ||||
| Diluted EPS | Q2 FY15 | Q2 FY14 | ||||
| GAAP diluted EPS from continuing operations | $0.42 | $0.69 | ||||
| Impact of net LCD settlements3 | $0.00 | ($0.43) | ||||
| Impact of non-restructuring asset impairments | $0.02 | $0.03 | ||||
| Impact of restructuring charges | $0.00 | $0.01 | ||||
| Impact of gain on sale of investments | $0.00 | ($0.03) | ||||
| Benefit of income tax impact of Best Buy Europe sale | $0.00 | $0.05 | ||||
| Non-GAAP diluted EPS from continuing operations2 | $0.44 | $0.32 | ||||
Joly continued, Like other retailers and as reflected in this quarters performance, we continued to see a shift in consumer behavior: consumers are increasingly researching and buying online. As a result, traffic to our brick and mortar stores continued to decline, yet our in-store conversion and online traffic continued to increase due to the execution of our Renew Blue strategy which is in direct alignment with this shift. Our Renew Blue strategy is designed to (1) grow our online business; (2) enhance our in-store customer experience; and (3) leverage our multi-channel capabilities; all to deliver to our customers great advice, service and convenience at competitive prices in the channel they want to be served.
During the quarter, we continued to make progress against this strategy, including (1) increasing our Net Promoter Score across channels by 400 basis points year-over-year; (2) improving our in-store experience by rolling out over 800 new Samsung and Sony home theater, 18 Pacific Kitchen and Home and 7 Magnolia Design Center stores-within-a-store; and (3) leveraging our new ship-from-store and digital marketing capabilities to drive a 22% increase in Domestic comparable online sales.
Joly concluded, Looking ahead, our goal is to continue to create a differentiated multi-channel customer experience such that every interaction customers have with us, regardless of channel, makes them a promoter of the Best Buy brand. In support of this, we will be intensifying our investments in customer-facing initiatives across both channels in the back half of the year.
Sharon McCollam, Best Buy EVP, CAO and CFO, commented, As Hubert remarked, industry-wide sales are continuing to decline in many of the consumer electronics categories in which we compete. We are also seeing ongoing softness in the mobile phone category ahead of highly-anticipated new product launches. Therefore, absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters. From an operating income rate perspective, we are expecting the following business drivers versus last year in the third and fourth quarters: (1) a similar promotional competitive environment, with better internal promotional effectiveness; (2) a greater mix of online revenue that will put pressure on the overall operating income rate due to a higher mix of lower-margin hardware sales and lower attach rates on services and accessories; (3) continued industry softness and higher promotionality in Canada and China; and (4) a net positive impact from our Renew Blue SG&A and COGS expense reductions which will more than offset our structural pricing investments, the remaining negative impact of our new credit card agreement, and the new incremental investment of $10 to $15 million in Q3 and $30 to $35 million in Q4 versus our original plan to intensify the investments in customer-facing initiatives that Hubert just referenced (a total of $40 to $50 million or $.07 to $0.09 per diluted share in the second half of FY15). As such, and particularly in light of the fixed cost deleverage that would accompany an expected low single-digit comparable sales decline, we are expecting the non-GAAP operating income rate in Q3 and Q4 to increase in line with the year-over-year improvement that we saw in the first half. Additionally, the estimated diluted earnings per share impact of the known discrete tax items that we discussed last quarter continue to be in the ranges of flat to negative $0.01 in Q3 FY15 and negative $0.09 to $0.10 in Q4 FY15.
Domestic Segment Second Quarter Results
Domestic Revenue
Domestic revenue of $7.59 billion declined 2.4% versus last year. This decline was primarily driven by (1) a comparable sales decline of 2.0%; and (2) a revenue decline of $20 million, or 25 basis points, due to the less favorable economics of the new credit card agreement.
Domestic online revenue was $581 million and comparable online sales increased 22.0% due to (1) substantially improved inventory availability made possible by the chain-wide rollout of our ship-from-store capability that was completed in January 2014; (2) a higher average order value; and (3) increased traffic driven by greater investment in online digital marketing.
From a merchandising perspective, growth in gaming, computing, appliances and televisions was more than offset by declines in other categories, including mobile phones, tablets, and services.
Domestic Gross Profit Rate
Domestic gross profit rate was 23.4% versus 27.3% last year. Excluding prior year legal settlements discussed in the Q2 FY14 earnings release, non-GAAP Domestic gross profit rate was 23.4% versus 23.9% last year. This 50-basis point decline was primarily due to (1) a mix shift into the lower-margin gaming and computing categories; (2) structural investments in price competitiveness, particularly in accessories; and (3) a 20-basis point negative impact related to the less favorable economics of the new credit card agreement. These declines were partially offset by (1) an increased mix of higher-margin large screen televisions and (2) the realization of our Renew Blue cost reductions and other supply chain cost containment initiatives.
Domestic Selling, General and Administrative Expenses (SG&A)
Domestic SG&A expenses were $1.52 billion or 20.1% of revenue versus $1.70 billion or 21.9% of revenue last year. On a non-GAAP basis, Domestic SG&A expenses were $1.51 billion or 19.9% of revenue versus $1.66 billion or 21.3% of revenue last year. This 140-basis point (or $147 million) rate decline was primarily driven by (1) the realization of Renew Blue cost reduction initiatives; and (2) tighter expense management throughout the company.
International Segment Second Quarter Results
International Revenue
International revenue of $1.31 billion declined 12.1% versus last year. This decline was primarily driven by (1) a comparable sales decline of 6.7% driven by China, Canada, and Mexico; (2) the negative impact of foreign currency exchange rate fluctuations; and (3) the loss of revenue from large-format store closures in China.
International Gross Profit Rate
International gross profit rate was 21.1% versus 22.3% last year. This 120-basis point rate decline was primarily driven by our Canadian business due to increased promotional activity and an increased mix of the lower-margin gaming category.
International SG&A
International SG&A expenses were $291 million or 22.2% of revenue versus $334 million or 22.4% of revenue last year. On a non-GAAP basis, International SG&A expenses were $290 million or 22.1% of revenue versus $332 million or 22.3% of revenue last year. This 20-basis point (or $42 million) rate decline was primarily driven by Renew Blue cost reductions and tighter expense management in Canada, and to a lesser extent, in China.
Renew Blue Cost Reduction Initiatives Update
Since our Q1 FY15 earnings release, Renew Blue annualized cost reductions have increased an additional $40 million, bringing the total Renew Blue annualized cost reductions to $900 million ($670 million in SG&A expenses and $230 million in cost of goods sold). This $40 million in cost reductions ($25 million in SG&A and $15 million in cost of goods sold) is primarily driven by (1) efficiency improvements in the US and Canada; (2) supply chain efficiencies; and (3) lower costs associated with returns, replacements and damages.
Dividends
On July 3rd, 2014, the company paid a quarterly dividend of $0.17 per common share outstanding, or $59 million.
Buffett backing BK deal
Warren Buffett has been a vocal supporter of higher tax rates for the wealthy but when push comes to shove the Oracle is all about the bottom line. As you know yesterday Burger King (BKW) shares soared when word leaked of a potential tax inversion - inspired bid for Canadian donut shop Tim Horton's (THI). Now it's being reported that the deal will be funded in part by Buffett's Berkshire Hathaway (BRK-A, BRK-B).
The Wall Street Journal says Berkshire will put $3 billion into the $10 billion bid for Tim Horton, likely in the form of a purchase of preferred shares.
So what's in this for Warren? Billions. This isn't about taxes, but endorsements and relationships. Burger King's majority owner is 3G, a Brazilian PE firm led by 74 year old billionaire Jorge Paulo Lemann. Last year 3G and Berkshire partnered to buy Heinz. Berkshire laid out $8 billion for preferred shares that will pay back $1 billion a year and another $4.25 billion for Heinz common stock. There aren't any terms being leaked on this BK deal yet but Buffett has never been shy about demanding a premium. Expect Berkshire to get at least 10% on the $2.5 billion investment.
Still this is small potatoes for Berkshire which is sitting on more than $55 billion in cash at last count. The real reason Buffett has to be involved is to protect Berkshire's 9.1% ownership interest in Coke (KO). Burger King is married to Heinz but its drink business is up for grabs. 3G has already pushed for a switch to Pepsi (PEP) in Latin American markets. With earnings flat since 2011 Coke can little afford to lose soda market share, let alone miss growth opportunities for Coke's non-carbonated products. Right now BK sells Nestle's bottled water. While a switch to Coke's Dasani probably won't be explicitly part of this financing package let's just say Berkshire's involvement doesn't hurt.
As a kid Warren Buffett bought six packs of Coke for a quarter then sold them to his friends for a nickel apiece. He now owns 9% of Coke, half of Heinz and seemingly all of the U.S. financial system. Buffett is the American Dream. He's a modern day Ben Franklin and he's not going to give up billions just because the President calls him names. Does that make Buffett a craven sell-out or does it validate U.S. corporate tax avoidance? Maybe a little bit of both. Ultimately it'll be consumers and voters who decide
Monday, August 25, 2014
Cliffs Natural Makes Big Share Repurchase announcement
The Board of Directors of Cliffs Natural Resources Inc. (NYSE: CLF) today authorized the Company to buy back its outstanding common shares in the open market or in private negotiated transactions up to a maximum of $200 million dollars. The Company will be working with its bank group to ensure the buyback program is effectively implemented in a timely manner. Under the proposed terms of the buyback program, the Company is not obligated to make any purchases and the program may be suspended or discontinued at any time. The authorization is active until December 31, 2015.
Lourenco Goncalves, Cliffs Chairman and CEO, stated, "The implementation of our new strategy centered on the US iron ore business has successfully started. With that, we are very pleased that our newly reconstituted Board of Directors has agreed with our conviction that, at this point, the best use of our capital is to invest in our own business, our people and our assets by buying back Cliffs’ common stock." Mr. Goncalves concluded saying, "We believe that the stock buyback will be smoothly executed, and should benefit our valuable shareholders."
Commensurate with approving the stock buyback program, the Board has also authorized the Company to take all the necessary steps to remove the limitations and restrictions present in the Company’s current debt agreements which preclude Cliffs’ ability to execute the buyback program. Such steps include but are not limited to negotiating consents and amendments to the applicable debt instruments.
Separately, the Company also announces that, simultaneously with the signature of his severance agreement as an officer, Gary Halverson has resigned from his position as a Board member of Cliffs Natural Resources Inc.
The apple iPhone 6. More of the same or cutting edge
Apple are expected to launch their new iPhone 6 next month, the company is said to be launching a 4.7 inch version of the handset, and a 5.5 inch model is expected later in the year.
The iPhone 6 is expected to come with a number of new features and updated hardware over the current model, which will include a larger display and a faster processor.
Apple’s iPhone 6 will come with a 4.7 inch display and it is said to be powered by Apple’s second generation 64-bit mobile processor, the Apple A8.
We have also heard that Apple will launch a 128GB model of the iPhone 6, and the device will also come with Apple’s TouchID, which was introduced with the iPhone 5S.
The Apple TouchID in the new iPhone 6 is said to be a new fingerprint sensor module that is designed to be more durable and also accurate than the current one used in the iPhone 5S.
Apple are rumored to be holding a press event on the 9th of September and the company is rumored to launch the handset on the 19th of September, as soon as we get some more details, we will let you guys know.
The iPhone 6 is expected to come with a number of new features and updated hardware over the current model, which will include a larger display and a faster processor.
Apple’s iPhone 6 will come with a 4.7 inch display and it is said to be powered by Apple’s second generation 64-bit mobile processor, the Apple A8.
We have also heard that Apple will launch a 128GB model of the iPhone 6, and the device will also come with Apple’s TouchID, which was introduced with the iPhone 5S.
The Apple TouchID in the new iPhone 6 is said to be a new fingerprint sensor module that is designed to be more durable and also accurate than the current one used in the iPhone 5S.
Apple are rumored to be holding a press event on the 9th of September and the company is rumored to launch the handset on the 19th of September, as soon as we get some more details, we will let you guys know.
I like response genetics
Its a growing company. I want to buy it under $1.10. I think $1.50 is fair value
new home sales hurting
July new home sales at a seasonally-adjusted annualized rate of 412K were 2.4% lower than the revised June number of 422K, and 12.3% above the year ago's 367K. July's pace is the slowest in four months.
Apple is the most valuable company in the world
This past week was a monumental time for Apple Inc. (NASDAQ: AAPL) and its shareholders. Despite chatter that the highly anticipated iPhone 6 could face delays, Apple shares hit a new, adjusted all-time high. Recall that the split-adjusted price would have to hit $100.72 to beat the old $705 price from September of 2012. With a close of $101.32 and a whopping $606.7 billion market cap and this price puts the market valuation now puts Apple at worth more than General Electric Co. (NYSE: GE) and Wal-Mart Stores Inc. (NYSE: WMT) combined — with an extra $100 billion in market cap to boot!
GE is the top conglomerate, outside of Berkshire Hathaway, and Walmart is the world’s largest retailer. Apple made more than GE and Walmart combined in net income last year, despite sales expectations being less than half of Walmart and only about 20% higher than GE. Apple’s employee headcount is one-sixth that of GE and one-40th that of Walmart. All three companies have comparable forward price-to-earnings (P/E ratios). Apple dominates these others in cash and cash equivalents.
And the best part? Apple is by FAR the best of these stocks to own over the next year.
GE is the top conglomerate, outside of Berkshire Hathaway, and Walmart is the world’s largest retailer. Apple made more than GE and Walmart combined in net income last year, despite sales expectations being less than half of Walmart and only about 20% higher than GE. Apple’s employee headcount is one-sixth that of GE and one-40th that of Walmart. All three companies have comparable forward price-to-earnings (P/E ratios). Apple dominates these others in cash and cash equivalents.
And the best part? Apple is by FAR the best of these stocks to own over the next year.
What is this restaurant doing?
Today, Buffalo Wild Wings®, Inc. (NASDAQ: BWLD) announced it has made a majority investment in Rusty Taco, Inc., which owns and operates Rusty Taco restaurants and is headquartered in Dallas, Texas. Rusty Taco features a simple menu of tasty tacos prepared fresh in a fun and lively atmosphere. Terms of the deal were not disclosed.
Rusty Tacos fresh approach to tacos truly sets this concept apart, stated Kathy Benning, Buffalo Wild Wings executive vice president, chief strategy officer and new business development. Buffalo Wild Wings investment is part of our strategy to partner with emerging restaurant concepts that have the potential for significant growth, can work throughout the country and have a highly engaged management team with a passion to grow the business.
Rusty Taco boasts fast, affordable food served in a friendly and fun atmosphere. As a fast-casual restaurant, Rusty Taco specializes in street-style tacos made fresh and from scratch. In 2010, the first restaurant opened its doors in Dallas, Texas. Since then, Rusty Taco has grown to include nine locations: two company-owned restaurants and seven franchised locations in three markets Dallas, Denver and Minneapolis/St. Paul.
We are delighted to be partnering with Buffalo Wild Wings (BWLD) and believe it can have an immediate impact in helping accelerate our growth, said Steve Dunn, chief executive officer of Rusty Taco. Our co-founder, Rusty Fenton, always said, Tacos are the most important meal of the day" and we truly live that every day by providing our guests with the freshest ingredients and authentic tasting tacos at an affordable price.
In addition to Rusty Taco, Buffalo Wild Wings also has a minority investment in Los Angeles-based PizzaRev, a growing artisanal pizza concept. As part of our long-term growth strategy, we are actively looking for additional concepts to invest in to build a portfolio of emerging brands, and continue to build a dynamic restaurant company, said Benning. PizzaRev is a fast-casual pizza chain delivering an interactive dining experience where Guests craft their own pizzas, choosing from a wide variety of premium-quality ingredients, in any amount, for one price.
Rusty Tacos fresh approach to tacos truly sets this concept apart, stated Kathy Benning, Buffalo Wild Wings executive vice president, chief strategy officer and new business development. Buffalo Wild Wings investment is part of our strategy to partner with emerging restaurant concepts that have the potential for significant growth, can work throughout the country and have a highly engaged management team with a passion to grow the business.
Rusty Taco boasts fast, affordable food served in a friendly and fun atmosphere. As a fast-casual restaurant, Rusty Taco specializes in street-style tacos made fresh and from scratch. In 2010, the first restaurant opened its doors in Dallas, Texas. Since then, Rusty Taco has grown to include nine locations: two company-owned restaurants and seven franchised locations in three markets Dallas, Denver and Minneapolis/St. Paul.
We are delighted to be partnering with Buffalo Wild Wings (BWLD) and believe it can have an immediate impact in helping accelerate our growth, said Steve Dunn, chief executive officer of Rusty Taco. Our co-founder, Rusty Fenton, always said, Tacos are the most important meal of the day" and we truly live that every day by providing our guests with the freshest ingredients and authentic tasting tacos at an affordable price.
In addition to Rusty Taco, Buffalo Wild Wings also has a minority investment in Los Angeles-based PizzaRev, a growing artisanal pizza concept. As part of our long-term growth strategy, we are actively looking for additional concepts to invest in to build a portfolio of emerging brands, and continue to build a dynamic restaurant company, said Benning. PizzaRev is a fast-casual pizza chain delivering an interactive dining experience where Guests craft their own pizzas, choosing from a wide variety of premium-quality ingredients, in any amount, for one price.
Bull market alive?
On Friday, the S&P 500 (^GSPC) finished at 1,988.40 after fluctuating near an all-time high. Investors were focused on tensions in Ukraine and were taking in comments on monetary policy by Federal Reserve Chair Janet Yellen.
T
he benchmark index is 10 points away from the 2,000 mark after a booking a nice week of gains. Three rounds of Fed stimulus and strong corporate earnings has helped the S&P almost triple since its low back in March 2009.
Second is news flow. Colas is keeping an eye on the stream of earnings and economic announcements. The last quarter showed strong top line and bottom line growth and he wants to see a continuation of that trend in the back half. His target is 8-10% for earnings and 2-3% for GDP. This follows on the heels of second quarter GDP coming in at 4%.
Finally, Colas focuses on asset correlations, i.e., how stocks move together during a financial period. The lower the correlation, the more money investors can put into the markets. During the depths of the financial crisis correlations were extremely high-- around 95%. He says "asset price correlations for sectors in the S&P should be 50. The good news is that we're back down closer to 70% and even the pullback that we had recently only got us back to 75. So we still have some room for correlations to go down for asset owners to put money into U.S. equities."
If investors can move beyond the Fed and interest rate fears, Colas predicts correlations should come down further.
Friday, August 22, 2014
Twitter---no way
Recode is reporting the following that coudl be a game changer for Twitter:::
Twitter’s long-awaited plan to let its users make purchases right from a tweet is nearing, and payments startup Stripe will have a role in the business, multiple industry sources tell Re/code.
Later this year, Twitter is expected to unveil buttons within tweets that say “Buy” or some variation of the word; after clicking on the button, shoppers are expected to be able to enter in payment and possibly shipping information without leaving Twitter’s service. Sources say that businesses that want to sell products or services within tweets are being instructed to sign up with Stripe to process payments on their behalf. While Stripe is believed to be Twitter’s only payments partner now working on the e-commerce business, it’s not clear whether that will remain the case over the long haul.
Twitter and Stripe representatives declined to comment.
Re/code first reported in January that Twitter and Stripe were in talks to work together, but that a deal hadn’t been finalized. Sometime between then and now, it has, sources say.
For Stripe, the deal marks another big partnership for the venture-backed company run by twentysomething brothers Patrick and John Collison. In June, the company announced that it was working with China’s popular digital payments service Alipay to allow its Western business customers to offer Alipay as a payment option for their shoppers. Stripe makes software that helps businesses accept various types of payments on websites and in apps, and is known among software developers for its ease of setup.
Twitter has considered integrating shopping functionality into its service for several years now, but the initiative became serious when the company hired former Ticketmaster CEO Nathan Hubbard to run it last summer. In June, Re/code reported that “Buy now” buttons had started appearing in some tweets and that an official launch would occur in time for this year’s holiday season.
Twitter’s long-awaited plan to let its users make purchases right from a tweet is nearing, and payments startup Stripe will have a role in the business, multiple industry sources tell Re/code.
Later this year, Twitter is expected to unveil buttons within tweets that say “Buy” or some variation of the word; after clicking on the button, shoppers are expected to be able to enter in payment and possibly shipping information without leaving Twitter’s service. Sources say that businesses that want to sell products or services within tweets are being instructed to sign up with Stripe to process payments on their behalf. While Stripe is believed to be Twitter’s only payments partner now working on the e-commerce business, it’s not clear whether that will remain the case over the long haul.
Twitter and Stripe representatives declined to comment.
Re/code first reported in January that Twitter and Stripe were in talks to work together, but that a deal hadn’t been finalized. Sometime between then and now, it has, sources say.
For Stripe, the deal marks another big partnership for the venture-backed company run by twentysomething brothers Patrick and John Collison. In June, the company announced that it was working with China’s popular digital payments service Alipay to allow its Western business customers to offer Alipay as a payment option for their shoppers. Stripe makes software that helps businesses accept various types of payments on websites and in apps, and is known among software developers for its ease of setup.
Twitter has considered integrating shopping functionality into its service for several years now, but the initiative became serious when the company hired former Ticketmaster CEO Nathan Hubbard to run it last summer. In June, Re/code reported that “Buy now” buttons had started appearing in some tweets and that an official launch would occur in time for this year’s holiday season.
Game Stop kicked ass
Total global sales for the second quarter of 2014 were $1.73 billion, a 25.1% increase compared to $1.38 billion in the prior year quarter. Consolidated comparable store sales increased 21.9%.
During the quarter, new hardware sales increased 124.8%, as worldwide demand for Microsofts Xbox One and Sonys PlayStation 4 remains very high. New software sales grew 15.6% driven by the strong performance of recently released new titles, such as Ubisofts Watch Dogs and Nintendos Mario Kart 8. Each of these categories outperformed the overall market, leading to 200 basis points of total market share gain. The pre-owned/value category saw positive growth, +5.5%, for the second consecutive quarter.
Sales in the mobile & consumer electronics category rose 85.1%, led by the ongoing expansion and strong results of Spring Mobile and Simply Mac. The Technology Brands segment contributed 19% of the companys second quarters operating profit.
Non-GAAP digital receipts increased 17.6% to $179.2 million, or $52.3 million of sales on a GAAP basis, led by strong platform currency, mobile and global Steam Wallet sales.
Global multichannel sales (mobile, web-in-store, pick-up at store, ecommerce) advanced 49.3% as customers utilized all of the channels GameStop offers to purchase video gaming and mobile electronic products.
GameStops net earnings for the second quarter were $24.6 million, a 134.3% increase compared to net earnings of $10.5 million in the prior year quarter. Diluted earnings per share were $0.22, a 144.4% increase compared to diluted earnings per share of $0.09 in the prior year quarter.
The second quarter demonstrates the power of the new console cycle and all of our business units, including Technology Brands, positively contributing to the companys sales and profits, stated Rob Lloyd, chief financial officer. The back half of the year is filled with exciting games and products coming to market and I am confident that we are prepared to capitalize on these opportunities.
Capital Allocation Update
During the second quarter of 2014, the company repurchased 1.90 million shares at an average price of $39.67, or $75.5 million of stock. There is now $329.4 million remaining on the existing repurchase authorization.
GameStops board of directors also declared a quarterly cash dividend of $0.33 per common share payable on September 16, 2014, to shareholders of record as of the close of business on September 3, 2014.
Earnings Guidance
For the third quarter of fiscal 2014, GameStop expects comparable store sales to range from +1.0% to +5.0%.
Diluted earnings per share are expected to range from $0.58 to $0.64, representing flat to +10.3% growth over the prior year quarter.
For fiscal year 2014, the company is maintaining its previously announced full year diluted earnings per share guidance range of $3.40 to $3.70. Full year comparable store sales are expected to range from +6.0% to +12.0%.
During the quarter, new hardware sales increased 124.8%, as worldwide demand for Microsofts Xbox One and Sonys PlayStation 4 remains very high. New software sales grew 15.6% driven by the strong performance of recently released new titles, such as Ubisofts Watch Dogs and Nintendos Mario Kart 8. Each of these categories outperformed the overall market, leading to 200 basis points of total market share gain. The pre-owned/value category saw positive growth, +5.5%, for the second consecutive quarter.
Sales in the mobile & consumer electronics category rose 85.1%, led by the ongoing expansion and strong results of Spring Mobile and Simply Mac. The Technology Brands segment contributed 19% of the companys second quarters operating profit.
Non-GAAP digital receipts increased 17.6% to $179.2 million, or $52.3 million of sales on a GAAP basis, led by strong platform currency, mobile and global Steam Wallet sales.
Global multichannel sales (mobile, web-in-store, pick-up at store, ecommerce) advanced 49.3% as customers utilized all of the channels GameStop offers to purchase video gaming and mobile electronic products.
GameStops net earnings for the second quarter were $24.6 million, a 134.3% increase compared to net earnings of $10.5 million in the prior year quarter. Diluted earnings per share were $0.22, a 144.4% increase compared to diluted earnings per share of $0.09 in the prior year quarter.
The second quarter demonstrates the power of the new console cycle and all of our business units, including Technology Brands, positively contributing to the companys sales and profits, stated Rob Lloyd, chief financial officer. The back half of the year is filled with exciting games and products coming to market and I am confident that we are prepared to capitalize on these opportunities.
Capital Allocation Update
During the second quarter of 2014, the company repurchased 1.90 million shares at an average price of $39.67, or $75.5 million of stock. There is now $329.4 million remaining on the existing repurchase authorization.
GameStops board of directors also declared a quarterly cash dividend of $0.33 per common share payable on September 16, 2014, to shareholders of record as of the close of business on September 3, 2014.
Earnings Guidance
For the third quarter of fiscal 2014, GameStop expects comparable store sales to range from +1.0% to +5.0%.
Diluted earnings per share are expected to range from $0.58 to $0.64, representing flat to +10.3% growth over the prior year quarter.
For fiscal year 2014, the company is maintaining its previously announced full year diluted earnings per share guidance range of $3.40 to $3.70. Full year comparable store sales are expected to range from +6.0% to +12.0%.
New single pill HIV regimen
ViiV
Healthcare receives FDA approval for Triumeq®
(abacavir, dolutegravir and lamivudine), a new single-pill regimen for the
treatment of HIV-1 infection
London, UK, 22 August, 2014 –
ViiV Healthcare announced today that the US Food and Drug Administration (FDA)
has approved Triumeq®
(abacavir 600mg, dolutegravir 50mg and lamivudine 300mg) tablets for the
treatment of HIV-1 infection.1
Triumeq is ViiV Healthcare’s first dolutegravir-based fixed-dose combination,
offering many people living with HIV the option of a single-pill regimen that
combines the integrase strand transfer inhibitor (INSTI) dolutegravir, with the
nucleoside reverse transcriptase inhibitors (NRTIs) abacavir and
lamivudine.
Triumeq
alone is not recommended for use in patients with current or past history of
resistance to any components of Triumeq. Triumeq alone is not recommended in
patients with resistance-associated integrase substitutions or clinically
suspected INSTI resistance because the dose of dolutegravir in Triumeq is
insufficient in these populations. Before initiating treatment with
abacavir-containing products, screening for the presence of a genetic marker,
the HLA-B*5701 allele, should be performed in any HIV-infected patient,
irrespective of racial origin. Products containing abacavir should not be used
in patients known to carry the HLA-B*5701 allele.1
Dr
Dominique Limet, Chief Executive Officer, ViiV Healthcare, said: “Today’s approval of Triumeq offers many
people living with HIV in the US the first single-pill regimen containing
dolutegravir. ViiV Healthcare is committed to
delivering advances in care and new treatment options to physicians and people
living with HIV. We are proud to announce this important milestone, marking the
second new treatment to be approved in the US from our pipeline of
medicines.”
This FDA
approval is based primarily upon data from two clinical trials:
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the Phase
III study (SINGLE) of treatment-naïve adults, conducted with dolutegravir and
abacavir/lamivudine as separate pills2,3
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a
bioequivalence study of the fixed-dose combination of abacavir, dolutegravir and
lamivudine when taken as a single pill compared to the administration of
dolutegravir and abacavir/lamivudine as separate pills.4
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In the
SINGLE study, a non-inferiority trial with a pre-specified superiority analysis,
more patients were undetectable (HIV-1 RNA <50 abacavir="" and="" arm="" atripla="" components="" copies="" dolutegravir="" font="" in="" lamivudine="" ml="" of="" separate="" style="display: inline; font-size: 70%; vertical-align: text-top;" than="" the="" triumeq="">®†
(efavirenz, emtricitabine and tenofovir) arm, the most commonly used single-pill
regimen. The difference was statistically significant and met the pre-specified
test for superiority. The difference was driven by a higher rate of
discontinuation due to adverse events in the Atripla arm.2,
3
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At 96
weeks, 80% of participants on the dolutegravir-based regimen were virologically
suppressed compared to 72% of participants on Atripla. Grade 2-4 treatment
emergent adverse reactions occurring in 2% or more participants taking the
dolutegavir-based regimen were insomnia (3%), headache (2%) and fatigue
(2%).3
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About
HIV
HIV
stands for the Human Immunodeficiency Virus. Unlike some other viruses, the
human body cannot get rid of HIV, so once someone has HIV they have it for
life.5-7
HIV
infects specific cells of the immune system, called CD4 cells or T-cells. Over
time, HIV can destroy so many of these cells that the body cannot fight off
infections and disease. When this happens, HIV infection leads to Acquired
Immunodeficiency Syndrome (AIDS) which is the final stage of HIV infection.
There is no cure for HIV, but with early diagnosis and effective treatment most
people with HIV will not go on to develop AIDS.5-7
An
estimated 1.1 million people in the US are living with HIV. However,
only 33 percent are taking the medication they need.8
About
Triumeq
Triumeq
is a fixed-dose combination containing the INSTI dolutegravir and the NRTIs
abacavir and lamivudine.
Two
essential steps in the HIV life cycle are replication – when the virus turns its
RNA copy into DNA – and integration – the moment when viral DNA becomes part of
the host cell’s DNA. These processes require two enzymes called reverse
transcriptase and integrase. NRTIs and integrase inhibitors interfere with the
action of the two enzymes to prevent the virus from replicating and further
infecting cells.
Dolutegravir
was approved in the US in August 2013 and in Europe in January 2014 under the
brand name Tivicay®. The
Committee for Medicinal Products for Human Use (CHMP) of the European Medicines
Agency (EMA) granted a positive opinion on the Marketing Authorisation
Application (MAA) for Triumeq on 26 June 2014. Regulatory
applications are also being evaluated in other markets worldwide, including
Australia, Brazil and Canada.
Tivicay
and Triumeq are registered trademarks of the ViiV Healthcare group of
companies.
Ann Inc's earnings.
Well folks, ANN INC. today reported results for the fiscal second quarter of 2014, ended August 2, 2014. The Company also provided its outlook for the third quarter and updated its outlook for fiscal 2014.
For the fiscal second quarter of 2014, the Company reported earnings per diluted share of $0.70, compared with earnings per diluted share of $0.76 in the second quarter of 2013.
Kay Krill, President and Chief Executive Officer, commented, "Our results for the quarter were slightly better than the outlook we provided earlier this month. As previously reported, while the quarter had started on a positive note with solid momentum through mid-June, the second half of the period proved challenging, as softer traffic levels and a highly promotional environment pressured sales and margin. In addition, LOFT experienced continued softness in basic knit tops, which represented a significant component of its summer assortment.
"We have entered the third quarter with fresh fall fashion and clean inventory levels at both brands. While the environment has been choppy this year, both Ann Taylor and LOFT will be offering her great feminine fashion and outstanding value to meet all of her wardrobing needs for the Fall season.
"In addition, we continue to make progress on our strategic growth initiatives, which offer significant potential to further expand our brands, broaden our client base and drive long-term growth and, as always, we are highly committed to further enhancing shareholder value," stated Ms. Krill.
Fiscal 2014 Second Quarter Results
Total net sales for the second quarter of fiscal 2014 were $648.7 million, compared with net sales of $638.2 million in the second quarter of fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand totaled $250.0 million in the second quarter of 2014, compared with net sales of $245.2 million in the second quarter of 2013. At the LOFT brand, net sales across all channels totaled $398.7 million in the second quarter of 2014, compared with net sales of $393.0 million in the second quarter of 2013.
Total Company comparable sales for the quarter decreased 2.3% versus the second quarter of 2013. At Ann Taylor, total brand comparable sales increased 0.7%, reflecting an increase of 2.0% at Ann Taylor, partially offset by a decline of 1.9% in the Ann Taylor Factory channel.
At LOFT, total brand comparable sales decreased 4.1%, reflecting a decrease of 5.2% at LOFT and an increase of 0.3% in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)
Gross margin, as a percentage of net sales, was 52.4%, versus the 54.7% gross margin rate achieved in the second quarter of 2013, reflecting an overall decrease in merchandise margin as a result of higher-than-anticipated promotional activity.
Selling, general and administrative expenses for the second quarter of 2014 were $284.7 million, versus $289.3 million reported in the second quarter of 2013. As a percentage of net sales, selling, general and administrative expenses improved 140 basis points to 43.9% compared to the second quarter of 2013, primarily due to lower marketing and performance-based compensation expense, as well as savings associated with our first quarter 2014 restructuring.
The Company reported operating income of $54.9 million in the second quarter of 2014, compared with operating income of $60.0 million in the second quarter of 2013. Net income was $32.7 million in the second quarter of 2014 versus $35.6 million reported in the second quarter of 2013. Diluted earnings per share was $0.70, compared to $0.76 per diluted share reported in the second quarter of 2013.
The Company ended the quarter with $150 million in cash and cash equivalents, following the repurchase of approximately 1.3 million shares of its stock at a cost of $50 million during the fiscal second quarter of 2014.
Total inventory per square foot at the end of the second quarter increased 1% versus year-ago, reflecting a 10% increase at Ann Taylor, and decreases of 2% at LOFT and 2% in the factory/outlet channel. The increase at Ann Taylor reflects a shift in the timing of receipts for Fall product as well as a change in merchandise mix.
During the second quarter of fiscal 2014, the Company opened 17 stores, comprised of two Ann Taylor Factory stores, six LOFT stores and nine LOFT Outlet stores, and closed three Ann Taylor stores and six LOFT stores. The total store count at the end of the fiscal second quarter was 1,040, comprised of 261 Ann Taylor stores, 113 Ann Taylor Factory stores, 544 LOFT stores and 122 LOFT Outlet stores.
First Half Fiscal 2014 Results
Net sales for the first six months of fiscal 2014 were $1,239.3 million, compared with net sales of $1,212.7 million in the first half of fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand were $469.9 million in the first half of 2014, compared with net sales of $464.4 million in the first half of 2013. At the LOFT brand, net sales across all channels were $769.4 million in the first half of 2014, compared with net sales of $748.3 million in the first half of 2013.
Total Company comparable sales for the first half of 2014 decreased 2.1%. At Ann Taylor, total brand comparable sales decreased 0.7%, reflecting an increase of 1.1% at Ann Taylor offset by a decrease of 4.3% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales decreased 2.9%, reflecting a decrease of 3.6% at LOFT, partially offset by an increase of 0.1% in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)
Gross margin, as a percentage of net sales, was 52.8% in the first half of 2014, compared with 55.2% in the first half of 2013, reflecting an overall decrease in merchandise margin rate as a result of higher-than-anticipated promotional activity during the first half of 2014.
Selling, general and administrative expenses for the first half of 2014 were $573.4 million, versus $576.0 million in the first half of 2013. As a percentage of net sales, selling, general and administrative expenses improved 120 basis points versus the prior year period to 46.3%. The improvement in the SG&A rate was primarily due to reduced marketing and performance-based compensation expenses, as well as savings associated with our first quarter 2014 restructuring.
The Company recorded a pre-tax restructuring charge of $17.3 million during the fiscal first half of 2014 in connection with its previously announced strategic realignment. There was no such restructuring charge recorded in the first half of 2013.
For the fiscal first half of 2014, the Company reported operating income of $64.1 million on a GAAP basis. Excluding the aforementioned restructuring charge, operating income in the first half of 2014 was $81.4 million, compared with operating income of $93.9 million in the first half of 2013.
Net income for the first half of 2014 was $37.9 million, or $0.81 per share, on a GAAP basis, which reflects the impact of the $10.3 million or $0.22 per diluted share after-tax restructuring charge taken in the first half of 2014. Excluding the effect of the restructuring charge, the Company reported net income of $48.2 million, or $1.03 per diluted share, in the first half of 2014, compared with net income of $56.6 million, or $1.20 per diluted share, in the first half of 2013.
Outlook for Fiscal Third-Quarter and Full-Year 2014
For the fiscal third quarter of 2014, the Company expects total net sales to be $670 million, reflecting total Company comparable sales that are flat to slightly negative. Gross margin rate performance is expected to be 54.0%. Selling, general and administrative expenses are expected to be $300 million. Total weighted average diluted shares outstanding for the third quarter are expected to be 46.2 million, which includes the effect of participating securities.
For fiscal 2014, the Company provided the following outlook:
•Total net sales are expected to be $2.560 billion, reflecting flat total Company comparable sales. Gross margin rate performance is expected to be 52.0%.
•Total SG&A expenses are expected to be $1.175 billion, which excludes the impact of the first quarter pre-tax restructuring charge of approximately $17 million.
•Our effective tax rate is expected to be 40%.
•Capital expenditures are expected to be approximately $120 million.
•Total weighted average diluted shares outstanding are expected to be 46.9 million, which includes the effect of participating securities.
•Total weighted average square footage for fiscal 2014 is expected to increase approximately 2%, reflecting the opening of approximately 50 new stores, partially offset by the impact of downsizes at Ann Taylor stores and approximately 40 store closures. The Company expects to have approximately 1,035 stores at fiscal year-end.
The Company expects to maintain its healthy balance sheet, including a disciplined approach to inventory management throughout the fiscal year.
For the fiscal second quarter of 2014, the Company reported earnings per diluted share of $0.70, compared with earnings per diluted share of $0.76 in the second quarter of 2013.
Kay Krill, President and Chief Executive Officer, commented, "Our results for the quarter were slightly better than the outlook we provided earlier this month. As previously reported, while the quarter had started on a positive note with solid momentum through mid-June, the second half of the period proved challenging, as softer traffic levels and a highly promotional environment pressured sales and margin. In addition, LOFT experienced continued softness in basic knit tops, which represented a significant component of its summer assortment.
"We have entered the third quarter with fresh fall fashion and clean inventory levels at both brands. While the environment has been choppy this year, both Ann Taylor and LOFT will be offering her great feminine fashion and outstanding value to meet all of her wardrobing needs for the Fall season.
"In addition, we continue to make progress on our strategic growth initiatives, which offer significant potential to further expand our brands, broaden our client base and drive long-term growth and, as always, we are highly committed to further enhancing shareholder value," stated Ms. Krill.
Fiscal 2014 Second Quarter Results
Total net sales for the second quarter of fiscal 2014 were $648.7 million, compared with net sales of $638.2 million in the second quarter of fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand totaled $250.0 million in the second quarter of 2014, compared with net sales of $245.2 million in the second quarter of 2013. At the LOFT brand, net sales across all channels totaled $398.7 million in the second quarter of 2014, compared with net sales of $393.0 million in the second quarter of 2013.
Total Company comparable sales for the quarter decreased 2.3% versus the second quarter of 2013. At Ann Taylor, total brand comparable sales increased 0.7%, reflecting an increase of 2.0% at Ann Taylor, partially offset by a decline of 1.9% in the Ann Taylor Factory channel.
At LOFT, total brand comparable sales decreased 4.1%, reflecting a decrease of 5.2% at LOFT and an increase of 0.3% in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)
Gross margin, as a percentage of net sales, was 52.4%, versus the 54.7% gross margin rate achieved in the second quarter of 2013, reflecting an overall decrease in merchandise margin as a result of higher-than-anticipated promotional activity.
Selling, general and administrative expenses for the second quarter of 2014 were $284.7 million, versus $289.3 million reported in the second quarter of 2013. As a percentage of net sales, selling, general and administrative expenses improved 140 basis points to 43.9% compared to the second quarter of 2013, primarily due to lower marketing and performance-based compensation expense, as well as savings associated with our first quarter 2014 restructuring.
The Company reported operating income of $54.9 million in the second quarter of 2014, compared with operating income of $60.0 million in the second quarter of 2013. Net income was $32.7 million in the second quarter of 2014 versus $35.6 million reported in the second quarter of 2013. Diluted earnings per share was $0.70, compared to $0.76 per diluted share reported in the second quarter of 2013.
The Company ended the quarter with $150 million in cash and cash equivalents, following the repurchase of approximately 1.3 million shares of its stock at a cost of $50 million during the fiscal second quarter of 2014.
Total inventory per square foot at the end of the second quarter increased 1% versus year-ago, reflecting a 10% increase at Ann Taylor, and decreases of 2% at LOFT and 2% in the factory/outlet channel. The increase at Ann Taylor reflects a shift in the timing of receipts for Fall product as well as a change in merchandise mix.
During the second quarter of fiscal 2014, the Company opened 17 stores, comprised of two Ann Taylor Factory stores, six LOFT stores and nine LOFT Outlet stores, and closed three Ann Taylor stores and six LOFT stores. The total store count at the end of the fiscal second quarter was 1,040, comprised of 261 Ann Taylor stores, 113 Ann Taylor Factory stores, 544 LOFT stores and 122 LOFT Outlet stores.
First Half Fiscal 2014 Results
Net sales for the first six months of fiscal 2014 were $1,239.3 million, compared with net sales of $1,212.7 million in the first half of fiscal 2013. By brand, net sales across all channels of the Ann Taylor brand were $469.9 million in the first half of 2014, compared with net sales of $464.4 million in the first half of 2013. At the LOFT brand, net sales across all channels were $769.4 million in the first half of 2014, compared with net sales of $748.3 million in the first half of 2013.
Total Company comparable sales for the first half of 2014 decreased 2.1%. At Ann Taylor, total brand comparable sales decreased 0.7%, reflecting an increase of 1.1% at Ann Taylor offset by a decrease of 4.3% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales decreased 2.9%, reflecting a decrease of 3.6% at LOFT, partially offset by an increase of 0.1% in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)
Gross margin, as a percentage of net sales, was 52.8% in the first half of 2014, compared with 55.2% in the first half of 2013, reflecting an overall decrease in merchandise margin rate as a result of higher-than-anticipated promotional activity during the first half of 2014.
Selling, general and administrative expenses for the first half of 2014 were $573.4 million, versus $576.0 million in the first half of 2013. As a percentage of net sales, selling, general and administrative expenses improved 120 basis points versus the prior year period to 46.3%. The improvement in the SG&A rate was primarily due to reduced marketing and performance-based compensation expenses, as well as savings associated with our first quarter 2014 restructuring.
The Company recorded a pre-tax restructuring charge of $17.3 million during the fiscal first half of 2014 in connection with its previously announced strategic realignment. There was no such restructuring charge recorded in the first half of 2013.
For the fiscal first half of 2014, the Company reported operating income of $64.1 million on a GAAP basis. Excluding the aforementioned restructuring charge, operating income in the first half of 2014 was $81.4 million, compared with operating income of $93.9 million in the first half of 2013.
Net income for the first half of 2014 was $37.9 million, or $0.81 per share, on a GAAP basis, which reflects the impact of the $10.3 million or $0.22 per diluted share after-tax restructuring charge taken in the first half of 2014. Excluding the effect of the restructuring charge, the Company reported net income of $48.2 million, or $1.03 per diluted share, in the first half of 2014, compared with net income of $56.6 million, or $1.20 per diluted share, in the first half of 2013.
Outlook for Fiscal Third-Quarter and Full-Year 2014
For the fiscal third quarter of 2014, the Company expects total net sales to be $670 million, reflecting total Company comparable sales that are flat to slightly negative. Gross margin rate performance is expected to be 54.0%. Selling, general and administrative expenses are expected to be $300 million. Total weighted average diluted shares outstanding for the third quarter are expected to be 46.2 million, which includes the effect of participating securities.
For fiscal 2014, the Company provided the following outlook:
•Total net sales are expected to be $2.560 billion, reflecting flat total Company comparable sales. Gross margin rate performance is expected to be 52.0%.
•Total SG&A expenses are expected to be $1.175 billion, which excludes the impact of the first quarter pre-tax restructuring charge of approximately $17 million.
•Our effective tax rate is expected to be 40%.
•Capital expenditures are expected to be approximately $120 million.
•Total weighted average diluted shares outstanding are expected to be 46.9 million, which includes the effect of participating securities.
•Total weighted average square footage for fiscal 2014 is expected to increase approximately 2%, reflecting the opening of approximately 50 new stores, partially offset by the impact of downsizes at Ann Taylor stores and approximately 40 store closures. The Company expects to have approximately 1,035 stores at fiscal year-end.
The Company expects to maintain its healthy balance sheet, including a disciplined approach to inventory management throughout the fiscal year.
What is going on with gold and silver?
Gold remained just above a two-month low on Friday morning, as analysts weighed up the many factors that have been causing the commodity to trade in a tight range in recent months.
Gold rose 0.12 percent on Friday to trade at $1,278.60, amid heightening tensions between Ukraine and Russia, but this could prove to be a brief respite with gold watchers predicting a slight fall in the longer term. Before Friday, the metal had been on a five-day losing streak.
"We think in the next few months we'll get some more downward pressure on gold," Matthew Turner, a precious metals analyst at Macquarie Securities told CNBC Friday.
John Meyer, a mining analyst at brokerage SP Angel, agreed and believes that the weakness will persist for gold. He expects the commodity to be range-bound for the rest of 2014. "Yes gold is heading south for now," he told CNBC Friday.
In the 10 years up until last December 2012, gold had surged around 400 percent, with the help of low interest rates, extra Federal Reserve liquidity and concerns over the global economy. In 2013 it lost 30 percent of its value with the Fed beginning to dial back its $85 billion-a-month stimulus program. This year, meanwhile, the precious metal has added 6 percent to its price with a range of factors influencing both speculators and physical gold buyers.
Rate hike
Gold is often seen as a hedge against inflation and traditionally has had an inverse relationship to interest rates, with demand for the precious metal increasing when rates are low. With the Fed delivering a more hawkish tone in the minutes from its latest policy meeting the price has softened.
Turner said that speculators follow Fed policy closely and were willing to buy gold as the price rose but accentuated the fall when the Fed's policy suddenly changed in 2013.
"The investment money has come out of the market," he told CNBC. "What drives speculation is U.S. monetary policy still and last year we had a shock...this year we haven't had a shock"
Geopolitics
Continued concerns that violence in Ukraine could escalate rapidly has provided some support for the price which is seen as a "safe-haven" trade. Pro-Russian separatists are currently locked in fierce battles against Ukrainian forces and Turner has dubbed this a "Putin put" which he believes provides a floor for gold prices at $1,200. A put option is a contract which offers the right, but not the obligation to sell an asset at a pre-agreed level.
"We've raised our floor price on the grounds of these geopolitical events such as Ukraine and Iraq, we think it's put a 'put' under the market."
Foreign buying
Also on the plus side for the precious metal, Turner believes than when the price falls slightly it spurs buyers in China and India who are inclined to buy physical gold items rather than gold derivatives or paper-based assets traded on exchanges.
However, this tailwind seems to have dissipated this year. In its latest quarterly report The World Gold Council noted that total global gold demand in the second quarter had fallen 16 percent from the same period last year, with demand in top buyers China and India falling about 50 percent and 40 percent respectively.
Central banks
If physical demand is wavering then the reins may have been picked up by central banks who remain net buyers of the commodity in 2014. Data from the International Monetary Fund 's financial statistics report continue to show that the Russian central bank has been stocking up on gold in an effort to diversify its reserves.
Gold rose 0.12 percent on Friday to trade at $1,278.60, amid heightening tensions between Ukraine and Russia, but this could prove to be a brief respite with gold watchers predicting a slight fall in the longer term. Before Friday, the metal had been on a five-day losing streak.
"We think in the next few months we'll get some more downward pressure on gold," Matthew Turner, a precious metals analyst at Macquarie Securities told CNBC Friday.
John Meyer, a mining analyst at brokerage SP Angel, agreed and believes that the weakness will persist for gold. He expects the commodity to be range-bound for the rest of 2014. "Yes gold is heading south for now," he told CNBC Friday.
In the 10 years up until last December 2012, gold had surged around 400 percent, with the help of low interest rates, extra Federal Reserve liquidity and concerns over the global economy. In 2013 it lost 30 percent of its value with the Fed beginning to dial back its $85 billion-a-month stimulus program. This year, meanwhile, the precious metal has added 6 percent to its price with a range of factors influencing both speculators and physical gold buyers.
Rate hike
Gold is often seen as a hedge against inflation and traditionally has had an inverse relationship to interest rates, with demand for the precious metal increasing when rates are low. With the Fed delivering a more hawkish tone in the minutes from its latest policy meeting the price has softened.
Turner said that speculators follow Fed policy closely and were willing to buy gold as the price rose but accentuated the fall when the Fed's policy suddenly changed in 2013.
"The investment money has come out of the market," he told CNBC. "What drives speculation is U.S. monetary policy still and last year we had a shock...this year we haven't had a shock"
Geopolitics
Continued concerns that violence in Ukraine could escalate rapidly has provided some support for the price which is seen as a "safe-haven" trade. Pro-Russian separatists are currently locked in fierce battles against Ukrainian forces and Turner has dubbed this a "Putin put" which he believes provides a floor for gold prices at $1,200. A put option is a contract which offers the right, but not the obligation to sell an asset at a pre-agreed level.
"We've raised our floor price on the grounds of these geopolitical events such as Ukraine and Iraq, we think it's put a 'put' under the market."
Foreign buying
Also on the plus side for the precious metal, Turner believes than when the price falls slightly it spurs buyers in China and India who are inclined to buy physical gold items rather than gold derivatives or paper-based assets traded on exchanges.
However, this tailwind seems to have dissipated this year. In its latest quarterly report The World Gold Council noted that total global gold demand in the second quarter had fallen 16 percent from the same period last year, with demand in top buyers China and India falling about 50 percent and 40 percent respectively.
Central banks
If physical demand is wavering then the reins may have been picked up by central banks who remain net buyers of the commodity in 2014. Data from the International Monetary Fund 's financial statistics report continue to show that the Russian central bank has been stocking up on gold in an effort to diversify its reserves.
Apples iPhone 6 details LEAKED
Just about everyone who cares at all about smartphones knows that Apple’s next-generation iPhone 6 is just weeks away from being announced during a huge press conference on September 9th. Even still, Apple generally likes to be the first company to announce its new devices and make them official before its carrier partners and distributors start sharing their plans for new iPhones.
At least one wireless carrier didn’t get that memo, however, as China Telecom has apparently just confirmed the iPhone 6 publicly and shared a few details about the device.
What are the details you ask????
Well---
Apple’s next-generation iPhone will include a wide array of radios compatible with many wireless networks including TDD-LTE, FDD-LTE, WCDMA, CDMA2000, GSM, and CDMA1X.
China Telecom noted that the version of the iPhone 6 it will sell will be unlocked so that it will work on multiple carrier networks in China.
Months of leaks and rumors may have desensitized us to iPhone 6 mentions, but a post like this from one of Apple’s carrier partners is a huge deal considering no Apple partners are authorized to discuss unannounced Apple wares publicly.
Apple’s next-generation iPhone 6 is expected to feature a completely overhauled design and a larger 4.7-inch display
Exelixis highlights from Q2
Q2 2014 Highlights and Recent Events
• Reported positive top-line results from coBRIM, the phase 3 pivotal trial evaluating cobimetinib, a specific MEK inhibitor discovered by Exelixis, in combination with vemurafenib in previously untreated patients with unresectable locally advanced or metastatic melanoma harboring a BRAFV600 mutation. On July 11, 2014, Exelixis collaborator Genentech, a member of the Roche Group, informed the company that coBRIM met its primary endpoint, delivering a statistically significant increase in progression-free survival for the combination of cobimetinib plus vemurafenib versus vemurafenib alone. Adverse events were consistent with those observed in a previous study of the combination. Roche announced last week on their second quarter 2014 earnings conference call that the coBRIM data are planned for presentation at the European Society for Medical Oncology 2014 Congress taking place in Madrid, Spain, September 26 - 30, 2014. They have also stated that they plan to initiate regulatory filings before year end.
• Cabozantinib and cobimetinib were the subject of a total of ten presentations at the 2014 Annual Meeting of the American Society of Clinical Oncology, which was held May 30 to June 3, 2014 in Chicago, Illinois. Cabozantinib presentations included data from trials sponsored by Exelixis, independent investigators, and the National Cancer Institutes Cancer Therapy Evaluation Program. Cobimetinib was the subject of one oral presentation highlighting positive data from BRIM7, the phase 1b clinical trial conducted by Roche and Genentech which evaluated the combination of cobimetinib and vemurafenib in patients with locally advanced/unresectable or metastatic melanoma carrying a BRAFV600 mutation.
• Announced final positive results from BRIM7 at the European Association of Dermato-Oncology Congress, which was held May 7-10, 2014 in Vilnius, Lithuania.
• Net product revenue from COMETRIQ®(cabozantinib) sales was $6.6 million for the second quarter of 2014.
The Exelixis team made substantial clinical and commercial progress during the second quarter of 2014, driving the company forward for an impactful year, said Michael M. Morrissey, Ph.D., president and chief executive officer of the company. The positive top-line results from the coBRIM pivotal trial, which we and our partner Genentech reported shortly after the quarter ended, are an important advance for the melanoma community, and they serve as further validation of Exelixis ability to discover and develop therapies with the potential to improve the treatment of cancer patients.
Dr. Morrissey continued, As we enter the second half of 2014, Exelixis is focused on delivering top-line results for three additional pivotal trials of cabozantinib: COMET-1 and COMET-2 in patients with metastatic castration-resistant prostate cancer and the overall survival results from EXAM in patients with progressive, metastatic medullary thyroid cancer. We also anticipate completing enrollment in a fourth pivotal trial of cabozantinib, METEOR, in metastatic renal cell cancer, which has seen strong support from the oncology community in advance of an anticipated read-out in 2015.
Second Quarter 2014 Financial Results
Net revenues for the quarter ended June 30, 2014 were $6.6 million, consisting entirely of product revenue related to the sale of COMETRIQ, compared to $11.9 million for the comparable period in 2013, which consisted of $4.0 million of product revenue related to the sale of COMETRIQ and $7.8 million of license and contract revenue. The increase in product revenue reflects the continued ramp up in sales of COMETRIQ following its commercial launch in the United States in January 2013. The decrease in contract and license revenue reflects the company having fully recognized all revenues from its collaboration agreements with Bristol-Myers Squibb Company in 2013.
Research and development expenses for the quarter ended June 30, 2014 were $51.0 million, compared to $49.1 million for the comparable period in 2013. The increase was primarily due to higher personnel related expenses and consulting costs in support of the companys five phase 3 pivotal trials for cabozantinib. Clinical trial costs decreased by $1.6 million predominantly due to a $6.5 million comparator drug purchase for METEOR during the second quarter of 2013 which was offset in part by increases in other clinical trial costs for METEOR and COMET-2.
Selling, general and administrative expenses for the quarter ended June 30, 2014 were $16.5 million, compared to $13.2 million for the comparable period in 2013. Approximately two-thirds of the increase reflects increased personnel expenses, as compared to the comparable period in 2013, the majority of which is connected with the expansion of the companys U.S. sales force. The remaining increases related predominantly to stock-based compensation expenses and marketing expenses, including an increase in expenses for cobimetinib under the companys collaboration agreement with Roche and Genentech.
Other income (expense), net for the quarter ended June 30, 2014 was a net expense of ($11.7) million compared to ($10.9) million for the comparable period in 2013. Included in interest expense for the quarter ended June 30, 2014 was $7.3 million of non-cash expense related to the accretion of the discounts on both the 4.25% Convertible Senior Subordinated Notes due 2019 and the companys financing arrangement with Deerfield, as compared to $6.5 million for the comparable period in 2013.
Net loss for the quarter ended June 30, 2014 was ($73.4) million, or ($0.38) per share, basic, compared to ($62.2) million, or ($0.34) per share, basic, for the comparable period in 2013. The increased net loss was primarily due to a decrease in license and contract revenues, which was partially offset by an increase in product revenues, and increases in research and development expenses and selling, general and administrative expenses.
Cash and cash equivalents, short- and long-term investments and short- and long-term restricted cash and investments totaled $352.0 million at June 30, 2014, compared to $415.9 million at December 31, 2013.
=
• Reported positive top-line results from coBRIM, the phase 3 pivotal trial evaluating cobimetinib, a specific MEK inhibitor discovered by Exelixis, in combination with vemurafenib in previously untreated patients with unresectable locally advanced or metastatic melanoma harboring a BRAFV600 mutation. On July 11, 2014, Exelixis collaborator Genentech, a member of the Roche Group, informed the company that coBRIM met its primary endpoint, delivering a statistically significant increase in progression-free survival for the combination of cobimetinib plus vemurafenib versus vemurafenib alone. Adverse events were consistent with those observed in a previous study of the combination. Roche announced last week on their second quarter 2014 earnings conference call that the coBRIM data are planned for presentation at the European Society for Medical Oncology 2014 Congress taking place in Madrid, Spain, September 26 - 30, 2014. They have also stated that they plan to initiate regulatory filings before year end.
• Cabozantinib and cobimetinib were the subject of a total of ten presentations at the 2014 Annual Meeting of the American Society of Clinical Oncology, which was held May 30 to June 3, 2014 in Chicago, Illinois. Cabozantinib presentations included data from trials sponsored by Exelixis, independent investigators, and the National Cancer Institutes Cancer Therapy Evaluation Program. Cobimetinib was the subject of one oral presentation highlighting positive data from BRIM7, the phase 1b clinical trial conducted by Roche and Genentech which evaluated the combination of cobimetinib and vemurafenib in patients with locally advanced/unresectable or metastatic melanoma carrying a BRAFV600 mutation.
• Announced final positive results from BRIM7 at the European Association of Dermato-Oncology Congress, which was held May 7-10, 2014 in Vilnius, Lithuania.
• Net product revenue from COMETRIQ®(cabozantinib) sales was $6.6 million for the second quarter of 2014.
The Exelixis team made substantial clinical and commercial progress during the second quarter of 2014, driving the company forward for an impactful year, said Michael M. Morrissey, Ph.D., president and chief executive officer of the company. The positive top-line results from the coBRIM pivotal trial, which we and our partner Genentech reported shortly after the quarter ended, are an important advance for the melanoma community, and they serve as further validation of Exelixis ability to discover and develop therapies with the potential to improve the treatment of cancer patients.
Dr. Morrissey continued, As we enter the second half of 2014, Exelixis is focused on delivering top-line results for three additional pivotal trials of cabozantinib: COMET-1 and COMET-2 in patients with metastatic castration-resistant prostate cancer and the overall survival results from EXAM in patients with progressive, metastatic medullary thyroid cancer. We also anticipate completing enrollment in a fourth pivotal trial of cabozantinib, METEOR, in metastatic renal cell cancer, which has seen strong support from the oncology community in advance of an anticipated read-out in 2015.
Second Quarter 2014 Financial Results
Net revenues for the quarter ended June 30, 2014 were $6.6 million, consisting entirely of product revenue related to the sale of COMETRIQ, compared to $11.9 million for the comparable period in 2013, which consisted of $4.0 million of product revenue related to the sale of COMETRIQ and $7.8 million of license and contract revenue. The increase in product revenue reflects the continued ramp up in sales of COMETRIQ following its commercial launch in the United States in January 2013. The decrease in contract and license revenue reflects the company having fully recognized all revenues from its collaboration agreements with Bristol-Myers Squibb Company in 2013.
Research and development expenses for the quarter ended June 30, 2014 were $51.0 million, compared to $49.1 million for the comparable period in 2013. The increase was primarily due to higher personnel related expenses and consulting costs in support of the companys five phase 3 pivotal trials for cabozantinib. Clinical trial costs decreased by $1.6 million predominantly due to a $6.5 million comparator drug purchase for METEOR during the second quarter of 2013 which was offset in part by increases in other clinical trial costs for METEOR and COMET-2.
Selling, general and administrative expenses for the quarter ended June 30, 2014 were $16.5 million, compared to $13.2 million for the comparable period in 2013. Approximately two-thirds of the increase reflects increased personnel expenses, as compared to the comparable period in 2013, the majority of which is connected with the expansion of the companys U.S. sales force. The remaining increases related predominantly to stock-based compensation expenses and marketing expenses, including an increase in expenses for cobimetinib under the companys collaboration agreement with Roche and Genentech.
Other income (expense), net for the quarter ended June 30, 2014 was a net expense of ($11.7) million compared to ($10.9) million for the comparable period in 2013. Included in interest expense for the quarter ended June 30, 2014 was $7.3 million of non-cash expense related to the accretion of the discounts on both the 4.25% Convertible Senior Subordinated Notes due 2019 and the companys financing arrangement with Deerfield, as compared to $6.5 million for the comparable period in 2013.
Net loss for the quarter ended June 30, 2014 was ($73.4) million, or ($0.38) per share, basic, compared to ($62.2) million, or ($0.34) per share, basic, for the comparable period in 2013. The increased net loss was primarily due to a decrease in license and contract revenues, which was partially offset by an increase in product revenues, and increases in research and development expenses and selling, general and administrative expenses.
Cash and cash equivalents, short- and long-term investments and short- and long-term restricted cash and investments totaled $352.0 million at June 30, 2014, compared to $415.9 million at December 31, 2013.
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Synta Pharma's 2nd Quarter earnings. Enough Cash to last till Q4 2015
Synta Pharmaceuticals Corp. (SNTA) today reported financial results for the second quarter ended June 30, 2014 and provided an update on recent corporate events.
Since the beginning of this year, ganetespib has reached several important clinical milestones across studies and cancer types, including encouraging results from the GALAXY-1 and ENCHANT Phase 2 studies in lung and breast cancer, and graduation to the Phase 3 extension in the AML LI-1 trial, said Keith Gollust, Chairman of the Executive Committee of Synta. With the launch of GANNET53 in ovarian cancer, ganetespib is now being studied in three large randomized studies in three separate cancers, with the expectation that three additional large randomized studies will begin before year end.
Second Quarter and Recent Updates
The AML LI-1 trial is the first of three multicenter, randomized studies supported by the Leukemia & Lymphoma Research Fund and Cancer Research UK to include a ganetespib treatment arm. AML LI-1 is being conducted under the auspices of the UKs National Cancer Research Institute (NCRI) Haematological Oncology Study Group, with investigators in Denmark, France, New Zealand, and the UK, and under the sponsorship of Cardiff University, UK. The other two studies, to be initiated later this year, are the AML-18 trial, evaluating ganetespib with standard DA (daunorubin and Ara-C) in patients over 60 years old who can tolerate intensive chemotherapy, and the AML-19 trial, evaluating ganetespib in combination with conventional chemotherapy in younger patients with AML.
Second Quarter 2014 Financial Results
There were no revenues recognized in the second quarters of 2014 and 2013.
Research and development expenses were $18.8 million for the second quarter in 2014, compared to $17.9 million for the same period in 2013. General and administrative expenses were $2.9 million for the second quarter in 2014, compared to $4.2 million for the same period in 2013.
The Company reported a net loss of $22.3 million, or $0.24 per basic and diluted share, in the second quarter of 2014, compared to a net loss of $22.8 million, or $0.33 per basic and diluted share, for the same period in 2013.
In the second quarter of 2014, the Company raised an aggregate of approximately $56.6 million in net proceeds from (i) the sale of its common stock under its at-the-market issuance sales agreements with MLV & Co. (ATM agreements) and (ii) the sale of its common stock in a registered direct offering to an affiliate of one of the Companys directors, who is a major shareholder.
As of June 30, 2014, the Company had $112.1 million in cash, cash equivalents and marketable securities, compared to $91.5 million in cash, cash equivalents and marketable securities as of December 31, 2013.
Subsequent to June 30, 2014, the Company has raised an additional $12.2 million of net proceeds under its ATM agreements.
More detailed financial information and analysis may be found in the Company's Quarterly Report on Form 10-Q, which was filed with the Securities and Exchange Commission (SEC) on August 6, 2014.
Guidance
Based on its current operating levels, the Company expects its cash resources of approximately $112.1 million at June 30, 2014, plus the $12.2 million in net proceeds from common stock sales subsequent to June 30, 2014, will be sufficient to fund operations at least into the fourth quarter of 2015. This estimate assumes no additional funding from new partnership agreements, equity financing events or further sales under its ATM, and that the timing and nature of certain activities contemplated for the remainder of 2014 and 2015 will be conducted subject to the availability of sufficient financial resources.
Since the beginning of this year, ganetespib has reached several important clinical milestones across studies and cancer types, including encouraging results from the GALAXY-1 and ENCHANT Phase 2 studies in lung and breast cancer, and graduation to the Phase 3 extension in the AML LI-1 trial, said Keith Gollust, Chairman of the Executive Committee of Synta. With the launch of GANNET53 in ovarian cancer, ganetespib is now being studied in three large randomized studies in three separate cancers, with the expectation that three additional large randomized studies will begin before year end.
Second Quarter and Recent Updates
- Enrollment in GANNET53 Trial of Ganetespib in Ovarian Cancer Commences. The Company announced today that GANNET53, a Seventh Framework Programme (FP7) research project funded by the European Commission, has begun enrolling patients in the safety lead-in Phase 1 portion of the trial. GANNET53 is a pan-European randomized trial designed to evaluate the combination of ganetespib and paclitaxel vs. paclitaxel alone in over 200 patients with metastatic, platinum-resistant ovarian cancer, which is commonly associated with p53 mutations. The studys consortium consists of national clinical trial groups in gynecological oncology and high-volume university centers as well as noted p53 scientists and three innovative small and medium sized companies (SMEs).
- Ganetespib Advances into Phase 3 Extension of AML LI-1 Study in AML and High-Risk MDS; AML-18 and AML-19 Trials on Track to Initiate in 2H 2014. In July 2014, Synta announced the advancement of ganetespib into the Phase 3 extension of the AML LI-1 (less intensive) trial. AML LI-1 is a multicenter, randomized Phase 2/3 clinical study evaluating several novel treatment regimens, including the combination of ganetespib with low dose cytarabine (Ara-C), in newly diagnosed elderly patients with acute myeloid leukemia (AML) or high-risk myelodysplastic syndrome (MDS) who are not eligible for intensive chemotherapy.
The AML LI-1 trial is the first of three multicenter, randomized studies supported by the Leukemia & Lymphoma Research Fund and Cancer Research UK to include a ganetespib treatment arm. AML LI-1 is being conducted under the auspices of the UKs National Cancer Research Institute (NCRI) Haematological Oncology Study Group, with investigators in Denmark, France, New Zealand, and the UK, and under the sponsorship of Cardiff University, UK. The other two studies, to be initiated later this year, are the AML-18 trial, evaluating ganetespib with standard DA (daunorubin and Ara-C) in patients over 60 years old who can tolerate intensive chemotherapy, and the AML-19 trial, evaluating ganetespib in combination with conventional chemotherapy in younger patients with AML.
- Reported Results from Final Analysis of GALAXY-1 Study; GALAXY-2 Clinical Trial Remains on Track to Meet Data Readout Timelines. In May 2014, Synta reported final results from the global, randomized, multi-center Phase 2b GALAXY-1 study comparing the combination of ganetespib and docetaxel to docetaxel alone for the second-line treatment of advanced non-small cell adenocarcinoma. The final results from this trial, in particular the encouraging overall survival results and tolerability profile in chemosensitive patients, supports the selection of the chemosensitive population for the pivotal Phase 3 GALAXY-2 trial.
Second Quarter 2014 Financial Results
There were no revenues recognized in the second quarters of 2014 and 2013.
Research and development expenses were $18.8 million for the second quarter in 2014, compared to $17.9 million for the same period in 2013. General and administrative expenses were $2.9 million for the second quarter in 2014, compared to $4.2 million for the same period in 2013.
The Company reported a net loss of $22.3 million, or $0.24 per basic and diluted share, in the second quarter of 2014, compared to a net loss of $22.8 million, or $0.33 per basic and diluted share, for the same period in 2013.
In the second quarter of 2014, the Company raised an aggregate of approximately $56.6 million in net proceeds from (i) the sale of its common stock under its at-the-market issuance sales agreements with MLV & Co. (ATM agreements) and (ii) the sale of its common stock in a registered direct offering to an affiliate of one of the Companys directors, who is a major shareholder.
As of June 30, 2014, the Company had $112.1 million in cash, cash equivalents and marketable securities, compared to $91.5 million in cash, cash equivalents and marketable securities as of December 31, 2013.
Subsequent to June 30, 2014, the Company has raised an additional $12.2 million of net proceeds under its ATM agreements.
More detailed financial information and analysis may be found in the Company's Quarterly Report on Form 10-Q, which was filed with the Securities and Exchange Commission (SEC) on August 6, 2014.
Guidance
Based on its current operating levels, the Company expects its cash resources of approximately $112.1 million at June 30, 2014, plus the $12.2 million in net proceeds from common stock sales subsequent to June 30, 2014, will be sufficient to fund operations at least into the fourth quarter of 2015. This estimate assumes no additional funding from new partnership agreements, equity financing events or further sales under its ATM, and that the timing and nature of certain activities contemplated for the remainder of 2014 and 2015 will be conducted subject to the availability of sufficient financial resources.
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