Archive for May, 2011

Response Genetics Inc. (RGDX) prospers on Q1 results

Thursday, May 12th, 2011

Response Genetics Inc. (Nasdaq: RGDX) saw its shares bolt 21.7% higher Thursday to $2.30, on higher first-quarter financial results. Volume for the stock reached 17,703 shares, or nearly six times its full-day average.

The Los Angeles-based company, focused on the development and sale of molecular diagnostic tests for cancer, reported total revenue increased by 60% to $5.9 million for the first quarter ended March 31, 2011, compared to $3.7 million for the same period last year.

Response Genetics’ net loss for the first quarter was $0.3 million, or $0.01 per share, compared with a net loss of $2.1 million, or a loss of $0.13 per share, for the same period last year.

Kathleen Danenberg, Response Genetics CEO, commented, “We continue to manage the business with operational discipline and ended the first quarter seeing a marked increase in traction for our recently implemented pathology initiative.”

Danenberg continued, “We believe that the pathology initiative, including digital capabilities to integrate pathologists into the ResponseDX™ testing process, increased test offerings to physicians and additional sales representatives will be strong revenue drivers for 2011 as we approach profitability.”

Response Genetics’ technologies enable extraction and analysis of genetic information from genes derived from tumor samples stored as formalin-fixed and paraffin-embedded specimens.

Systemax (SYX) strong bottom line sends shares to the max

Wednesday, May 11th, 2011

Systemax Inc. (NYSE: SYX) shares climbed 11.6% to $14.62 a day after the electronics retailer reported first-quarter income that beat analysts’ expectations. Volume for the stock was just shy of 151,000, better than triple its daily average.

Sales for the quarter ending March 31, 2011 totaled $929.9 million, or 2% better than its prior-year figure of $915.2 million. Operating income was down, however, to $18.6 million from $20.4 million in the first quarter of fiscal 2010. Diluted earnings per share (EPS) were $0.36.

Systemax CEO Richard Leeds said, “We had a solid start to 2011 that underscores the channel, product and geographic diversity that define Systemax. Our Technology Products business to business operations continue to perform well, particularly in Europe as the business climates in most of our locations appear to have stabilized.”

Leeds concluded, “In addition, the Industrial Products group had another outstanding quarter, delivering strong double digit growth from product expansion and other growth initiatives.”

Systemax sells personal computers, computer components and supplies, consumer electronics and industrial products through a system of branded e-Commerce web sites, retail stores, relationship marketers and direct mail catalogs in North America and Europe. The primary brands are TigerDirect, CompUSA, Circuit City, MISCO, WStore and Global Industrial.

Rovi Corporation (ROVI) beams higher on bigger earnings, revenues

Wednesday, May 11th, 2011

Rovi Corp. (Nasdaq: ROVI) shares gained 21.5% to $60.37 a day after the television-listings data company projected 2011 earnings above estimates. Volume for the stock mid-morning Wednesday was 5.4 million shares, better than doubling its all-day average of around two million.

The Santa Clara, California-based company announced Tuesday that it had first-quarter 2011 Generally Accepted Accounting Principles (GAAP) revenues of $161.5 million, compared to $129.4 million for the first quarter of 2010. First quarter 2011 GAAP net income was $17.0 million, compared to $68.1 million for the first quarter of 2010.

Rovi Chief Executive Officer Fred Amoroso, commented, “We are pleased with our fast start to 2011 and the continued progress and success of our business. We have made excellent progress on the Sonic integration and are beginning to realize the benefits and synergies that we believe exist in the combination.”

Rovi Corporation provides extensive entertainment discovery solutions for television, movies, music and photos to its customers in the consumer electronics, cable and satellite, entertainment and online distribution markets.

Rosetta Resources (ROSE) stock propels higher on upbeat numbers and upgrades

Monday, May 9th, 2011

Rosetta Resources Inc. (Nasdaq: ROSE) shares advanced 19.7% to $49.20, after several analysts upgraded shares of the oil and natural-gas company. Volume for the stock topped 3.1 million shares Monday, or nearly five times its daily average.

Investment firm Cannacord Genuity was particularly bullish and placed a $53 price target on the stock, which represents about a 30% premium to its Friday closing price. On Friday, the Houston-based Rosetta announced, for the first quarter ended March 31, 2011, net income of $11.0 million, or $0.21 per diluted share, versus a net income of $7.3 million, or $0.14 per diluted share, for the same period in 2010. These results include a $1.8 million after tax gain related to the settlement of hedges associated with the divested DJ Basin property.

Revenues for the first quarter of 2011 were $97.1 million compared to $70.1 million for the same period in 2010. Compared to a year ago, higher product revenues from oil and liquids were partially offset by lower gas revenues.

Said CEO Randy Limbacher, “the first quarter of 2011 delivered strong results led by continued success in our Eagle Ford shale play. We have continued to shift our production base to a more balanced portfolio weighted towards liquids and are reaping the benefits of a lower operating cost structure.
“We successfully completed our asset divestiture program and the proceeds will provide additional flexibility to execute our growth plans. Rosetta entered 2011 a streamlined and more focused company that is positioned to deliver double-digit growth into the future.”

Rosetta Resources Inc. is an independent exploration and production company engaged in the acquisition and development of onshore energy resources in North America. The Company’s activities are primarily located in South Texas, including its largest producing region in the Eagle Ford shale and in the Southern Alberta Basin in northwest Montana.

Dollar Thrifty Automotive Group (DTG) stock price higher on bidding war

Monday, May 9th, 2011

Dollar Thrifty Automotive Group Inc. (NYSE: DTG) shares added 12% Monday morning to $78.03, after Hertz Global Holdings Inc. (NYSE: HTZ) raised its offer to buy the rival car-rental company, hoping to outbid Avis Budget Group Inc. Volume for the stock was 1.27 million well before noon ET Monday.

It was Monday that Hertz offered Dollar Thrifty shareholders $72.00 per share (based on Hertz’s closing stock price on May 6), consisting of $57.60 in cash and 0.8546 shares of Hertz. The offer represents: a 26% premium and 18% premium to Dollar Thrifty’s 90-day and 60-day average share price, respectively; and a 24% premium to the value of the entirely hypothetical price announced by Avis over seven months ago.
Hertz’s offer is not subject to any financing condition or contingency

Commenting on the offer, Hertz CEO Mark P. Frissora said: “We believe that the acquisition of Dollar Thrifty by Hertz would be in the best interests of both companies’ shareholders and of rental car consumers, and that it will accelerate Hertz’s growth opportunities by leveraging the combined brand portfolio and unparalleled value and service reputations of both companies. To this end, we have today made a superior bid.”

Dollar Thrifty CEO Scott Thompson was not available for comment.