Waterloo Tech Digest - December 7, 2009
Compiled and written by
Gary Will
gary@garywill.com
In this issue:
I've also put together a list of over 60 Waterloo tech Twitterers, which you can also follow. Just go to my site (finally reorganized), find the Waterloo Tech Tweets box in the sidebar and click "join the conversation." Chris Bellini (bullines) also has a very good Waterloo tech Twitter list that you might want to check. The Waterloo startup blogroll and aggregated RSS feed of Waterloo startup blogs are also still on my site.
--Gary Will
////////////////////////////////////////////////////////////
S P O N S O R S
RISK FREE LEAD GENERATION
From sales opportunity development to increasing attendance for events, Virtual Causeway accelerates your sales process! With a focus on selling and marketing complex services and technology, we guarantee a consistent and reliable flow of quality leads - assuring that your pipeline is constantly full. Contact us today to learn how we can help connect you with your next customer. Call 519-886-1600 ext. 405 or email marketing@v-causeway.com for details.
AERO CORPORATE BENEFITS - Your Employee Benefits Solutions Provider
Located in Waterloo, we've served the KW technology community for over 20 years, providing employee benefits solutions to companies large and small. Our mission is simple. Help our clients succeed by doing what we do best: -- Design and monitor programs that attract & retain the most qualified employees -- Contain costs of employee benefits, retirement plans, and HR support -- Provide employee-level support & advice to help you manage risk & compliance. Please contact Herb Goedecke at 519.489.2376 x11 or herbg@aero-corp.com for details.
GO BEYOND STAFFING
For over 30 years, Procom has been matching people with companies, for jobs that are a perfect fit - contract, full-time, or part-time. We partner with large and small companies across North America, including some of the world's best-known enterprises, to provide a range of services, training tools, and the ideal candidates to help them flourish. We've been named one of Canada's 50 Best Managed Companies and go beyond staffing to look strategically at the processes and people that will truly help a company succeed. Phone: 519.885.4331.
JUMPSTART YOUR STARTUP
Sun Startup Essentials will help your startup succeed, with unbelievably discounted hardware and services, free technical advice and training, open source development tools, and access to a network of investors and startups around the globe. Apply online in minutes, and get your company off the ground fast at the lowest cost possible. Membership is free -- see our website for details.
DID ANYONE READ THIS AD? TELL US.
Twitter #mfxad
mfxad@mfxpartners.com
////////////////////////////////////////////////////////////
[1]---------------------------------------------------------------
Arise raises cash, discusses "transaction" for silicon business
November 11 & 25, 2009
Arise has raised $2 million though the sale at of 6.7 million units $0.30 each. Each unit consists of a common share and a warrant to purchase another common share for $0.35 over the next year or $0.40 in the year after that (after which the warrants expire).
The offering included 2.85 million units issued to founder Ian MacLellan and Hildon Trading Inc. as repayment of $855,000 of debt. MacLellan had lent the company $500,000 (at 8% annual interest and with a $5,000 arrangement fee) on November 6 and another $105,000 on November 12. Hildon Trading was apparently the source of Arise's $250,000 loan (bearing interest at 20% a year plus a $12,500 arrangement fee) on October 29.
Arise had previously said (see previous digest) that it expected most of the units would be bought by company insiders who would fund the purchases through the sale of Arise shares they already owned.
In the quarter ended September 30 (Q3 09), Arise lost $5.5 million on sales of $6.6 million. Final results were in line with the preview issued by the company last month. The loss included a $510,000 inventory write-down as well as a $945,000 provision for sub-standard PV cells returned to inventory. The company says it has fixed the production problems that lead to lower yields in some cells manufactured in Q3(see previous digest). Those losses were offset by a $1.6 million foreign exchange gain in the quarter, created by the strengthening of the Canadian dollar against the Euro.
Over 98% of revenue came from the sale of PV cells. Arise sold 3.5 MW worth of cells in the quarter, up from 2.9 MW in Q2, but the average price per watt fell nearly 19% from quarter to quarter, resulting in a small sequential decline in revenue. It is forecasting sales of 7 MW of cells in the current quarter, which would be a record for the company, surpassing the 6.1 MW sold in the same quarter last year.
Arise had $410,000 in cash at the end of the quarter -- before its share/warrant offering. Operations used $5.7 million in cash in Q3.
Arise expects Ontario Power Authority (OPA) to start signing contracts under the new Ontario feed-in tariff program this month. Although the company's PV cells are manufactured in Germany, it says it expects to meet the program's 50% Ontario content requirements by manufacturing modules incorporating the cells in Ontario and using Ontario content for mounting and installation work.
It has signed a non-binding expression of interest with an unnamed Fortune 500 company about a "possible transaction" involving Arise's 7N+ silicon technology assets. Arise didn't specify what kind of transaction it's looking at, but said the other company would be developing a business plan with Arise. Arise had started to build a silicon plant in Kitchener, but those plans were put on hold as the company looked to conserve its cash.
The company also disclosed financial details of its new technology centre in Gelsenkirchen, Germany (see previous digest). It purchased the assets of the former Scheuten Solar plant for $2.6 million, which it expects to pay through discounts on the sale of PV cells to Scheuten. Scheuten has the option to sell the building to Arise in 2012 for $5.1 million. If it doesn't exercise that option, Arise can extend its lease for 27 years.
////////////////////////////////////////////////////////////
S P O N S O R
GOWLINGS TECHNOLOGY WHITEBOARDS
Our legal professionals discuss a range of issues affecting technology companies, including tips for start-ups, protecting your IP, outsourcing, technology agreements and more.
Gowlings' Waterloo Region Technology Law Group provides sophisticated, practical and timely advice in all areas of technology law to clients ranging from start-ups to public companies. 40 professionals serving Waterloo Region/Guelph (over 700 professionals nationwide). The Right People. Right Here. Contact David.Petras@gowlings.com or Sean.Gomes@gowlings.com at 519-576-6910.
////////////////////////////////////////////////////////////
[2]---------------------------------------------------------------
Arise appoints new CFO, chairman
November 11, 2009
Dave Chornaby has left Arise, where he had been CFO since the spring of 2007. The new CFO is Doug McCollam, who had been CFO of Corel for over five years until leaving at the end of September. In July, Corel said McCollam would be leaving to take "a career sabbatical." He had been CFO during Corel's IPO in 2006.
Arise has also split the roles of chairman and CEO, with Peter Harder succeeding Vern Heinrichs as chair. Heinrichs remains CEO. Initially, Heinrichs became CEO on an interim basis following the departure of Bart Tichelman in January, but the company cancelled its plans to recruit a new chief executive. Harder has been on Arise's board since May 2007.
Founder Ian MacLellan, who had just been announced as the new CTO (see previous digest), has now become president of Arise's PV cells division. Bill White, who joined Arise earlier this year, will now oversee the systems business as EVP. White is a former president of DuPont Canada and has been a director of MaRS in Toronto for the last two years.
[3]---------------------------------------------------------------
Com Dev replaces divisional president; gets $5M from feds
November 30, 2009
Com Dev has warned that its results for the quarter ended October 31 (Q4 09) will be below expectations.
It blamed performance at its Ottawa-based Com Dev Canada operations for the shortfall, citing poor project management processes and an underestimation of the work required to meet the requirements of two programs. It said Com Dev Canada missed its top and bottom line forecasts by $4.3 million in the quarter.
George Cwynar, the former CEO of Mosaid who headed Com Dev Canada for the last 18 months, has left the company and been replaced by Dave Lizius, who joined Com Dev in 1997 and was previously the first GM of the company's California-based Com Dev USA division.
New orders in the quarter were a solid $66-68 million, but revenue recognized in Q4 is expected to be in the $56-58 million range, down 6-9% from the previous quarter. Net income for the quarter is expected to be less than $1 million, compared to $5.2 million in Q3 and $4.8 million a year ago. Revenue for the year is now expected to be 13-14% above 2008, which would fall slightly below management forecasts of 15%.
Full results are not scheduled to be announced until January 11, which is 3-4 weeks later than usual.
Also from the company: Com Dev has received $5.2 million from the federal government's Southern Ontario Development Program (SODP) for its micro-satellite program. The micro-satellites will initially be used for exactEarth's marine Automatic Identification System (AIS) service. SODP was established to "create an environment where businesses can thrive, and maximize Southern Ontario's potential to succeed in the knowledge-based economy."
[4]---------------------------------------------------------------
MKS promotes Harris to CEO, reports another profitable quarter
November 24, 2009
Michael Harris, who had been COO of MKS since 2002 and also president for the last four years, has succeeded Phil Deck as CEO. Deck will remain on the management team as executive chairman with an increased focus on growth strategy.
In the period ended October 31 (Q2 10), the company reported its seventh consecutive profitable quarter, earning US$1.6 million on sales of US$14.7 million. Sales were down 7% from a strong Q1 and down 10% from a year ago.
Licensing revenue continued to be sluggish at 27% of sales, but service revenue was at a record level of US$3.0 million, or 20% of sales. The company's core ALM segment, anchored by MKS Integrity, accounted for 89% of revenue. MKS had 15 transactions over $100,000 and three over $500,000 in the quarter.
MKS ended the quarter with US$19.0 million in cash, down US$720,000 from the end of Q1.
[5]---------------------------------------------------------------
Descartes posts steady results in Q3
December 2, 2009
Descartes earned US$988,000 on sales of US$18.9 million in the quarter ended October 31 (Q3 10). Results were very similar to those in the previous quarter, with sales climbing 1.4% sequentially.
It was during this quarter that Descartes closed its $40 million share offering (see Oct. 6 digest) and it ended the period with US$93.9 million in cash, up US$42.7 million from the end of Q2. Operations generated US$3.2 million in cash in the quarter.
As part of the offering, CEO Art Mesher netted $1.2 million from the sale of shares purchased through the exercise of options.
[6]---------------------------------------------------------------
RDM ends fiscal year with a profitable quarter
December 3, 2009
RDM ended its 2009 fiscal year with fourth quarter earnings of $286,000 on sales of $5.7 million in the period ended September 30. Sales were down 4% from the previous quarter and 24% from a year ago. The company ended the quarter in the black thanks to a $952,000 foreign exchange gain caused by the strengthening of the Canadian dollar.
Digital imaging, which includes scanner sales, and payment processing, which includes the company's ITMS image and transaction processing service, each accounted for 45% of total revenue in the quarter. There were no additional ITMS end user locations in the period, and it was the first time that average ITMS transaction volumes showed a small quarter-over-quarter decline -- to 3.7 million items a week from 3.8 million in Q3. RDM's long-standing quality assurance segment contributed 8% of Q4 revenue and was the company's most profitable unit.
For the year, RDM lost $2.0 million on sales of $24.5 million. Sales were down 8% from 2008. Three customers accounted for 43% of all annual revenue.
RDM's royalty payments to Data Treasury Corp., resulting from an agreement between the companies after Data Treasury sued RDM for patent infringement in 2003, climbed to $1.4 million over the year or nearly 6% of revenue.
RDM ended the year with $15.7 million in cash, down $1.2 million from the end of Q3.
The company said it continues to believe that it has a substantial market opportunity, and that the "vast majority" of small businesses in the U.S. have still never been offered a remote deposit capture service by their banks.
[7]---------------------------------------------------------------
STOCK REPORT: Biorem gains, TurboSonic drops in another tame month
November 2009
Biorem's most profitable quarter in five years (see below) helped push the company's shares to their best month-end price in the last year, while a warning from TurboSonic (also below) sent its stock to its lowest point since April.
Other than that, there weren't any wild swings in November. It was pretty quiet for the second month in a row. Com Dev shares briefly went over $4 for the first time this year, but was back down to $3.60 even before warning that its Q4 results would be below expectations.
For the month of November:
Biorem [TSXV: BRM] +19%
Sandvine [TSX: SVC] +10%
--S&P TSX VENTURE INDEX +10%
ATS [TSX: ATA] +8%
Com Dev [TSX: CDV] +7%
--S&P TSX COMPOSITE INDEX +5%
MKS [TSX: MKX] +2%
Dalsa [TSX: DSA] +1%
===============================
Open Text [TSX: OTC] -1%
RIM [TSX: RIM] -4%
Descartes [TSX: DSG] -7%
RDM [TSX: RC] -13%
Arise [TSX: APV] -14%
TurboSonic [OTCBB: TSTA] -37%
With one month left in the year, the only company with shares trading below their 2008 year-end price is Arise, which has seen its stock fall 44% so far this year. Shares of Com Dev and Dalsa are right about where they were at the beginning of the year, and RDM's shares have fallen 6% so far in December, taking them to within three cents of their December 31 close. A month ago, TurboSonic shares seemed to be a lock for best performance of 2009, but they've now fallen to fourth place, trailing MKS, Sandvine and Descartes.
Companies with core operations outside the area:
Blue Coat [Nasdaq: BCSI] +19%
ON Semiconductor [Nasdaq: ONNN] +16%
Google [Nasdaq: GOOG] +9%
Agfa-Gevaert [Brussels: AGFA] +5%
Oracle [Nasdaq: ORCL] +5%
Acorn Energy [Nasdaq: ACFN] +4%
Sybase [NYSE: SY] +2%
Intel [Nasdaq: INTC] +1%
===================================
Ansys [Nasdaq: ANSS] -4%
NCR [NYSE: NCR] -7%
Electronic Arts [Nasdaq: ERTS] -7%
McAfee [NYSE: MFE] -9%
[8]---------------------------------------------------------------
Startup Notes
Miscellaneous Tidbits
Gary Will
gary@garywill.com
In this issue:
- Arise raises cash, discusses "transaction" for silicon business
- Arise appoints new CFO, chairman
- Com Dev replaces divisional president; gets $5M from feds
- MKS promotes Harris to CEO, reports another profitable quarter
- Descartes posts steady results in Q3
- RDM ends fiscal year with a profitable quarter
- STOCK REPORT: Biorem gains, TurboSonic drops in tame month
- Startup notes from Aeryon, Igloo, PostRank, Metranome, Kik, Dejero, Tangam, Karos Health, Primal Fusion, ProductWiki, VeloCity
- Miscellaneous tidbits from Agfa, Christie, Biorem, TurboSonic, Sandvine, RIM, Maplesoft, Desire2Learn, Netsweeper, Virtek
I've also put together a list of over 60 Waterloo tech Twitterers, which you can also follow. Just go to my site (finally reorganized), find the Waterloo Tech Tweets box in the sidebar and click "join the conversation." Chris Bellini (bullines) also has a very good Waterloo tech Twitter list that you might want to check. The Waterloo startup blogroll and aggregated RSS feed of Waterloo startup blogs are also still on my site.
--Gary Will
////////////////////////////////////////////////////////////
S P O N S O R S
RISK FREE LEAD GENERATION
From sales opportunity development to increasing attendance for events, Virtual Causeway accelerates your sales process! With a focus on selling and marketing complex services and technology, we guarantee a consistent and reliable flow of quality leads - assuring that your pipeline is constantly full. Contact us today to learn how we can help connect you with your next customer. Call 519-886-1600 ext. 405 or email marketing@v-causeway.com for details.
AERO CORPORATE BENEFITS - Your Employee Benefits Solutions Provider
Located in Waterloo, we've served the KW technology community for over 20 years, providing employee benefits solutions to companies large and small. Our mission is simple. Help our clients succeed by doing what we do best: -- Design and monitor programs that attract & retain the most qualified employees -- Contain costs of employee benefits, retirement plans, and HR support -- Provide employee-level support & advice to help you manage risk & compliance. Please contact Herb Goedecke at 519.489.2376 x11 or herbg@aero-corp.com for details.
GO BEYOND STAFFING
For over 30 years, Procom has been matching people with companies, for jobs that are a perfect fit - contract, full-time, or part-time. We partner with large and small companies across North America, including some of the world's best-known enterprises, to provide a range of services, training tools, and the ideal candidates to help them flourish. We've been named one of Canada's 50 Best Managed Companies and go beyond staffing to look strategically at the processes and people that will truly help a company succeed. Phone: 519.885.4331.
JUMPSTART YOUR STARTUP
Sun Startup Essentials will help your startup succeed, with unbelievably discounted hardware and services, free technical advice and training, open source development tools, and access to a network of investors and startups around the globe. Apply online in minutes, and get your company off the ground fast at the lowest cost possible. Membership is free -- see our website for details.
DID ANYONE READ THIS AD? TELL US.
Twitter #mfxad
mfxad@mfxpartners.com
////////////////////////////////////////////////////////////
[1]---------------------------------------------------------------
Arise raises cash, discusses "transaction" for silicon business
November 11 & 25, 2009
Arise has raised $2 million though the sale at of 6.7 million units $0.30 each. Each unit consists of a common share and a warrant to purchase another common share for $0.35 over the next year or $0.40 in the year after that (after which the warrants expire).
The offering included 2.85 million units issued to founder Ian MacLellan and Hildon Trading Inc. as repayment of $855,000 of debt. MacLellan had lent the company $500,000 (at 8% annual interest and with a $5,000 arrangement fee) on November 6 and another $105,000 on November 12. Hildon Trading was apparently the source of Arise's $250,000 loan (bearing interest at 20% a year plus a $12,500 arrangement fee) on October 29.
Arise had previously said (see previous digest) that it expected most of the units would be bought by company insiders who would fund the purchases through the sale of Arise shares they already owned.
In the quarter ended September 30 (Q3 09), Arise lost $5.5 million on sales of $6.6 million. Final results were in line with the preview issued by the company last month. The loss included a $510,000 inventory write-down as well as a $945,000 provision for sub-standard PV cells returned to inventory. The company says it has fixed the production problems that lead to lower yields in some cells manufactured in Q3(see previous digest). Those losses were offset by a $1.6 million foreign exchange gain in the quarter, created by the strengthening of the Canadian dollar against the Euro.
Over 98% of revenue came from the sale of PV cells. Arise sold 3.5 MW worth of cells in the quarter, up from 2.9 MW in Q2, but the average price per watt fell nearly 19% from quarter to quarter, resulting in a small sequential decline in revenue. It is forecasting sales of 7 MW of cells in the current quarter, which would be a record for the company, surpassing the 6.1 MW sold in the same quarter last year.
Arise had $410,000 in cash at the end of the quarter -- before its share/warrant offering. Operations used $5.7 million in cash in Q3.
Arise expects Ontario Power Authority (OPA) to start signing contracts under the new Ontario feed-in tariff program this month. Although the company's PV cells are manufactured in Germany, it says it expects to meet the program's 50% Ontario content requirements by manufacturing modules incorporating the cells in Ontario and using Ontario content for mounting and installation work.
It has signed a non-binding expression of interest with an unnamed Fortune 500 company about a "possible transaction" involving Arise's 7N+ silicon technology assets. Arise didn't specify what kind of transaction it's looking at, but said the other company would be developing a business plan with Arise. Arise had started to build a silicon plant in Kitchener, but those plans were put on hold as the company looked to conserve its cash.
The company also disclosed financial details of its new technology centre in Gelsenkirchen, Germany (see previous digest). It purchased the assets of the former Scheuten Solar plant for $2.6 million, which it expects to pay through discounts on the sale of PV cells to Scheuten. Scheuten has the option to sell the building to Arise in 2012 for $5.1 million. If it doesn't exercise that option, Arise can extend its lease for 27 years.
////////////////////////////////////////////////////////////
S P O N S O R
GOWLINGS TECHNOLOGY WHITEBOARDS
Our legal professionals discuss a range of issues affecting technology companies, including tips for start-ups, protecting your IP, outsourcing, technology agreements and more.
Gowlings' Waterloo Region Technology Law Group provides sophisticated, practical and timely advice in all areas of technology law to clients ranging from start-ups to public companies. 40 professionals serving Waterloo Region/Guelph (over 700 professionals nationwide). The Right People. Right Here. Contact David.Petras@gowlings.com or Sean.Gomes@gowlings.com at 519-576-6910.
////////////////////////////////////////////////////////////
[2]---------------------------------------------------------------
Arise appoints new CFO, chairman
November 11, 2009
Dave Chornaby has left Arise, where he had been CFO since the spring of 2007. The new CFO is Doug McCollam, who had been CFO of Corel for over five years until leaving at the end of September. In July, Corel said McCollam would be leaving to take "a career sabbatical." He had been CFO during Corel's IPO in 2006.
Arise has also split the roles of chairman and CEO, with Peter Harder succeeding Vern Heinrichs as chair. Heinrichs remains CEO. Initially, Heinrichs became CEO on an interim basis following the departure of Bart Tichelman in January, but the company cancelled its plans to recruit a new chief executive. Harder has been on Arise's board since May 2007.
Founder Ian MacLellan, who had just been announced as the new CTO (see previous digest), has now become president of Arise's PV cells division. Bill White, who joined Arise earlier this year, will now oversee the systems business as EVP. White is a former president of DuPont Canada and has been a director of MaRS in Toronto for the last two years.
[3]---------------------------------------------------------------
Com Dev replaces divisional president; gets $5M from feds
November 30, 2009
Com Dev has warned that its results for the quarter ended October 31 (Q4 09) will be below expectations.
It blamed performance at its Ottawa-based Com Dev Canada operations for the shortfall, citing poor project management processes and an underestimation of the work required to meet the requirements of two programs. It said Com Dev Canada missed its top and bottom line forecasts by $4.3 million in the quarter.
George Cwynar, the former CEO of Mosaid who headed Com Dev Canada for the last 18 months, has left the company and been replaced by Dave Lizius, who joined Com Dev in 1997 and was previously the first GM of the company's California-based Com Dev USA division.
New orders in the quarter were a solid $66-68 million, but revenue recognized in Q4 is expected to be in the $56-58 million range, down 6-9% from the previous quarter. Net income for the quarter is expected to be less than $1 million, compared to $5.2 million in Q3 and $4.8 million a year ago. Revenue for the year is now expected to be 13-14% above 2008, which would fall slightly below management forecasts of 15%.
Full results are not scheduled to be announced until January 11, which is 3-4 weeks later than usual.
Also from the company: Com Dev has received $5.2 million from the federal government's Southern Ontario Development Program (SODP) for its micro-satellite program. The micro-satellites will initially be used for exactEarth's marine Automatic Identification System (AIS) service. SODP was established to "create an environment where businesses can thrive, and maximize Southern Ontario's potential to succeed in the knowledge-based economy."
[4]---------------------------------------------------------------
MKS promotes Harris to CEO, reports another profitable quarter
November 24, 2009
Michael Harris, who had been COO of MKS since 2002 and also president for the last four years, has succeeded Phil Deck as CEO. Deck will remain on the management team as executive chairman with an increased focus on growth strategy.
In the period ended October 31 (Q2 10), the company reported its seventh consecutive profitable quarter, earning US$1.6 million on sales of US$14.7 million. Sales were down 7% from a strong Q1 and down 10% from a year ago.
Licensing revenue continued to be sluggish at 27% of sales, but service revenue was at a record level of US$3.0 million, or 20% of sales. The company's core ALM segment, anchored by MKS Integrity, accounted for 89% of revenue. MKS had 15 transactions over $100,000 and three over $500,000 in the quarter.
MKS ended the quarter with US$19.0 million in cash, down US$720,000 from the end of Q1.
[5]---------------------------------------------------------------
Descartes posts steady results in Q3
December 2, 2009
Descartes earned US$988,000 on sales of US$18.9 million in the quarter ended October 31 (Q3 10). Results were very similar to those in the previous quarter, with sales climbing 1.4% sequentially.
It was during this quarter that Descartes closed its $40 million share offering (see Oct. 6 digest) and it ended the period with US$93.9 million in cash, up US$42.7 million from the end of Q2. Operations generated US$3.2 million in cash in the quarter.
As part of the offering, CEO Art Mesher netted $1.2 million from the sale of shares purchased through the exercise of options.
[6]---------------------------------------------------------------
RDM ends fiscal year with a profitable quarter
December 3, 2009
RDM ended its 2009 fiscal year with fourth quarter earnings of $286,000 on sales of $5.7 million in the period ended September 30. Sales were down 4% from the previous quarter and 24% from a year ago. The company ended the quarter in the black thanks to a $952,000 foreign exchange gain caused by the strengthening of the Canadian dollar.
Digital imaging, which includes scanner sales, and payment processing, which includes the company's ITMS image and transaction processing service, each accounted for 45% of total revenue in the quarter. There were no additional ITMS end user locations in the period, and it was the first time that average ITMS transaction volumes showed a small quarter-over-quarter decline -- to 3.7 million items a week from 3.8 million in Q3. RDM's long-standing quality assurance segment contributed 8% of Q4 revenue and was the company's most profitable unit.
For the year, RDM lost $2.0 million on sales of $24.5 million. Sales were down 8% from 2008. Three customers accounted for 43% of all annual revenue.
RDM's royalty payments to Data Treasury Corp., resulting from an agreement between the companies after Data Treasury sued RDM for patent infringement in 2003, climbed to $1.4 million over the year or nearly 6% of revenue.
RDM ended the year with $15.7 million in cash, down $1.2 million from the end of Q3.
The company said it continues to believe that it has a substantial market opportunity, and that the "vast majority" of small businesses in the U.S. have still never been offered a remote deposit capture service by their banks.
[7]---------------------------------------------------------------
STOCK REPORT: Biorem gains, TurboSonic drops in another tame month
November 2009
Biorem's most profitable quarter in five years (see below) helped push the company's shares to their best month-end price in the last year, while a warning from TurboSonic (also below) sent its stock to its lowest point since April.
Other than that, there weren't any wild swings in November. It was pretty quiet for the second month in a row. Com Dev shares briefly went over $4 for the first time this year, but was back down to $3.60 even before warning that its Q4 results would be below expectations.
For the month of November:
Biorem [TSXV: BRM] +19%
Sandvine [TSX: SVC] +10%
--S&P TSX VENTURE INDEX +10%
ATS [TSX: ATA] +8%
Com Dev [TSX: CDV] +7%
--S&P TSX COMPOSITE INDEX +5%
MKS [TSX: MKX] +2%
Dalsa [TSX: DSA] +1%
===============================
Open Text [TSX: OTC] -1%
RIM [TSX: RIM] -4%
Descartes [TSX: DSG] -7%
RDM [TSX: RC] -13%
Arise [TSX: APV] -14%
TurboSonic [OTCBB: TSTA] -37%
With one month left in the year, the only company with shares trading below their 2008 year-end price is Arise, which has seen its stock fall 44% so far this year. Shares of Com Dev and Dalsa are right about where they were at the beginning of the year, and RDM's shares have fallen 6% so far in December, taking them to within three cents of their December 31 close. A month ago, TurboSonic shares seemed to be a lock for best performance of 2009, but they've now fallen to fourth place, trailing MKS, Sandvine and Descartes.
Companies with core operations outside the area:
Blue Coat [Nasdaq: BCSI] +19%
ON Semiconductor [Nasdaq: ONNN] +16%
Google [Nasdaq: GOOG] +9%
Agfa-Gevaert [Brussels: AGFA] +5%
Oracle [Nasdaq: ORCL] +5%
Acorn Energy [Nasdaq: ACFN] +4%
Sybase [NYSE: SY] +2%
Intel [Nasdaq: INTC] +1%
===================================
Ansys [Nasdaq: ANSS] -4%
NCR [NYSE: NCR] -7%
Electronic Arts [Nasdaq: ERTS] -7%
McAfee [NYSE: MFE] -9%
[8]---------------------------------------------------------------
Startup Notes
- Aeryon Labs was named top company in the information communication technology category at the annual Canadian Innovation Exchange (CIX) showcase in Toronto. Also named to the CIX top 20 were Igloo, Metranome, and PostRank. Markham's CognoVision, winner in the digital media category, won the top prize as "Canada's Innovation Leader."
- Metranome announced the launch of an iPhone/iPod Touch/BlackBerry application for the TV series Sanctuary that was built on the company's platform. The app delivers "exclusive behind-the-scenes" video content to users following each week's episode.
- Kik (formerly Unsynced) won a $5,000 hounourable mention as part of the 2009 BlackBerry Partners Fund Developer Challenge at the BlackBerry Developer Conference in San Francisco. The company, led by Ted Livingston, was one of the winners at the VeloCity project exhibition in April. It calls its service "iTunes for BlackBerry with legal file sharing" and expects to launch in Canada in the first quarter of the new year.
- Randy Fowlie is the new CEO of Dejero Labs, the company founded last year by Bogdan Frusina that has developed a mobile broadcast platform that uses cellular networks to transmit live video. Fowlie is the former COO and CFO of Inscriber and went with that company to Leitch Technology and then to Harris Corp., where he was VP and GM of digital media. Fowlie has been a director of Open Text since 1998.
- Dejero technology is being used by CTV in its coverage of the Olympic Torch Relay across Canada. The Olympic torch is scheduled for a brief stop in Waterloo on December 27.
- Tangam Systems announced three casinos that have started using the company's table management technology. The Tangam Intelligent Minimums Management system is now in use at Red Rock Casino Resort and Spa (Las Vegas), Great Blue Heron Casino (Port Perry, Ont.) and Mystic Lake Casino Hotel (near Minneapolis). Tangam performs real-time data capture and analyses that enables casino managers to adjust table minimums and the number of tables in operation. Tangam was an exhibitor at the Global Gaming Expo in Las Vegas in November.
- Karos Health has launched Rialto for Diagnostic Imaging, built on its Rialto platform for clinical information exchange and collaboration. The company also announced that it has partnered with Austin, Texas-based Caringo, a provider of cloud storage software, to create the infrastructure to enable healthcare providers to securely store and exchange patient information.
- Primal Fusion launched a revised version of its alpha with a new layout and added capabilities. It also opened Primal Labs, where it will place proto-apps and new capabilities as they are developed to get user feedback.
- ProductWiki has made its product reviews and information available through a read-only API.
- VeloCity is lobbying UW to create a Centre for Student Innovation that would allow student entrepreneurs to "work and interact with each other and with professional mentors, advisors and entrepreneurs." Similar to VeloCity, but not tied to a single residence.
Miscellaneous Tidbits
- Agfa has launched the Waterloo-based Agfa HealthCare Institute, which it says will "focus on new product innovation, entrepreneurship and commercialization" to promote innovation in healthcare information technology. Partners include UW, Canadian Digital Media Network, and NRC.
- Christie Digital Systems Canada won the 2009 Innovation Award for New Technology -- Ontario region -- from Canadian Manufacturers & Exporters (CME) and IRAP. The award "recognizes innovative excellence in the development and application of new process manufacturing technologies in Canada."
- Biorem returned to profitability with earnings of $520,000 on sales of $4.9 million in the quarter ended September 30 (Q3 09). Sales were up 20% from a year ago and down 14% from Q2. It was Biorem's most profitable quarter in the last five years. The company ended the quarter with $2.9 million in cash and an order backlog of $10.4 million.
- TurboSonic earned US$17,200 on sales of US$7.5 million in the quarter ended September 30 (Q1 10). Sales were up 49% from a year ago and down 4% from Q4. It warned that performance levels would likely drop from these levels for the next "several quarters."
- Sandvine has won eight more customers, six in mobile and two in DSL. It now has 30 mobile operator customers in more than a dozen countries. The company also said it will record a $1.7 million expense in the current quarter after some managers surrendered 780,000 options for cancellation. Sandvine's non-cash stock-based compensation expenses are expected to be lowered by the same amount in aggregate over the next three fiscal years. All the options had a strike price of $6.59 or $4.05. Sandvine shares closed Friday at $1.32.
- RIM unveiled some forthcoming services for BlackBerry app developers. The BlackBerry Advertising Service will make it easy for developers to integrate advertising into their BlackBerry applications. Ads can be integrated with the BlackBerry to allow, for example, phone calls or contact entries to be made from an ad. The service is expected to be available in the first half of 2010. The BlackBerry Payment Service will make it easier for developers to sell premium content, subscriptions, and upgrades from within their applications. It is expected to launch mid-2010. RIM is also adding some additional GPS-style services to simplify the creation of location-aware applications.
- RIM also announced its BlackBerry Academic Program, which provides curricula and content for college and university courses related to the BlackBerry. Course content is currently available for BlackBerry Enterprise Server administration, BlackBerry support, and BlackBerry application development. It says over 500 students have already taken the courses through a pilot program.
- Maplesoft also announced resources for teachers, starting with a precalculus course on functions. The resources include lecture notes, demonstrations and assignment questions.
- Desire2Learn unveiled its new Sparks brand of e-learning products for the K-12 market.
- Desire2Learn founder and CEO John Baker received the 2009 Intrepid Entrepreneur award at the Waterloo Region Entrepreneur Hall of Fame gala.
- Netsweeper announced partnerships with two Australian companies providing Internet management (Blue Reef) and filtering (Getbusi) products. Both will use Netsweeper's URL categorization service, which provides categorization of over 3 billion Web pages, and its malware/virus protection services.
- Virtek's LaserEdge system is being used by BAE Systems in its development of the Mantis unmanned air vehicle. The Mantis prototype had its first flight in November.
posted by Gary Will at 3:31 AM
