Archive for August, 2011

« Older Entries
Newer Entries »

BroadSoft Inc. (BSFT) leaps on earnings forecast

Monday, August 8th, 2011

BroadSoft Inc. (Nasdaq: BSFT) shares jumped 13.6% to $26.93 after the telecommunications-software maker’s forecast 2011 earnings that topped Wall Street’s consensus estimate. Volume of 4.4 million shares trounced a daily average of less than 700,000.

A news release out Monday, August 8 proclaimed that the Gaithersburg, Maryland-based BroadSoft achieved revenues increased 63% year-over-year to $32.2 million, that license revenue increased 82% year-over-year to $19.2 million

Net income for the second quarter of 2011 was $15.8 million, or $0.57 per diluted common share, compared to a net loss of ($1.8) million, or $(0.20) per basic and diluted common share, for the second quarter of 2010. In addition, GAAP results for the second quarter of 2011 included an income tax benefit of $9.9 million, or $0.36 per diluted common share, resulting from the release of a tax valuation allowance relating to net deferred tax assets.

BroadSoft CEO Michael Tessler was quoted in the same release as saying, “We continue to see demand across our product line grow globally, helping drive our record second quarter financial results. We believe our financial performance for the first half of 2011 demonstrates our ability to execute our long-term strategy of enabling our customers to deliver innovative, real-time communications services to their subscribers.”

For the full year 2011, BroadSoft is increasing its guidance and now expects revenue of $127.0 to $130.0 million, reflecting growth of 33% to 36% over 2010 revenue of $95.6 million.

BroadSoft provides software that enables mobile, fixed-line and cable service providers to deliver voice and multimedia services over their IP-based networks.

Tags: , , , ,
Posted in Technology Stocks | No Comments »

Emdeon Inc. (EM) continues to prospers on takeover by Blackstone

Monday, August 8th, 2011

Late last week, Emdeon Inc. (NYSE: EM) shares climbed13.5% to $18.44 after the healthcare information-technology provider agreed to be bought by private-equity firm Blackstone Group. Opening the week today, Emdeon share prices have relented slightly, still hovering over the $17.00 mark.

A news release published early August 4 said the Nashville-based Emdeon, a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, had entered into a definitive merger agreement with Blackstone, under which this Blackstone fund will acquire a controlling interest in Emdeon in a transaction valued at approximately $3 billion that will result in Emdeon becoming a private company. Hellman Friedman will maintain a significant minority equity interest in Emdeon.

Under the terms of the merger agreement, holders of Emdeon common stock will receive $19.00 per share in cash. Emdeon’s Board of Directors has unanimously approved the merger agreement and is recommending that Emdeon’s stockholders adopt the merger agreement.

Emdeon CEO George Lazenby was quoted in the release as saying, “This transaction provides for a great return for our investors. We are excited about the opportunity to move forward with two excellent investors in Blackstone and Hellman Friedman. They each have an in-depth understanding of our business and industry, and will be tremendous partners as we continue to pursue our strategy of making healthcare efficient.

Lazenby concluded, “We are looking forward to building upon our leadership position in healthcare information technology and services, made possible by the continued support of our customers and the dedication and commitment of our employees.”

Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the U.S.healthcare system. Emdeon’s product and service offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter.

Tags: , , ,
Posted in Financial Stocks | No Comments »

Transatlantic Holdings Inc. (TRH) leaps on bid from Berkshire-based company

Monday, August 8th, 2011

Transatlantic Holdings Inc. (NYSE: TRH) shares rose 5.6% to $47.75, a day after National Indemnity Co., a unit of Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A) offered $3.2 billion to acquire the reinsurer. Volume for Transatlantic numbered 1.4 million shares, compared to a daily average of about 790,000.

A news release out Sunday, August 7 noted that Transatlantic confirmed it had received a proposal from National Indemnity to acquire all of Transatlantic’s outstanding shares of common stock for $52.00 per share.

The release quoted a letter to Transatlantic CEO Robert Orlich from National Indemnity CEO Ajit Jain as saying “With your stock trading at $45.83, I have to believe that you will find our offer to buy all of Transatlantic shares outstanding at $52.00 per share to be an attractive offer… Should you decide to accept this offer, your agreement that should the deal not close for any reasons that are under your control by December 31, 2011, a break-up fee of $75.0 million would be paid to us.”

Transatlantic Holdings, Inc. is a leading international reinsurance organization headquartered in New York, with operations on six continents. Its subsidiaries, Transatlantic Reinsurance Company®, Trans Re Zurich Reinsurance Company Ltd. and Putnam Reinsurance Company, offer reinsurance capacity on both a treaty and facultative basis ― structuring programs for a full range of property and casualty products, with an emphasis on specialty risks.

Tags: , , ,
Posted in Financial Stocks | No Comments »

Web.com Group Inc. (WWWW) goes buying, stock rockets

Thursday, August 4th, 2011

Web.com Group Inc. (Nasdaq: WWWW) shares got 31.4% worth of lift to $11.38 late Thursday morning, on Q2 results and acquisition news. Volume for the stock topped 1.4 million shares, compared with a daily average of 421,000.

A Reuters story out August 4 reported that the e-commerce company agreed to buy website services provider Network Solutions to fuel growth, and posted quarterly profit above estimates.

The story also noted that Web.com, which provides web marketing products to small businesses, said purchasing Network Solutions would triple its customer base to about three million subscribers and give significant cross-sell and up-sell opportunities.

Web.com, based in Jacksonville, Florida will pay $405 million in cash, issue 18 million common shares and refinance Network Solutions’ net debt.

Second-quarter profit was helped by a 73% surge in its subscription revenue.

Tags: , , , , ,
Posted in Technology Stocks | No Comments »

MasterCard Inc. (MA) charges ahead on Q2 profit

Wednesday, August 3rd, 2011

MasterCard Inc. (NYSE: MA) shares rose 12.3% to $335.13 after the payments-network reported second-quarter profit that topped market expectations. Volume for the stock crowded 4.3 million shares, better than four times its daily average.

A news release issued August 3 noted that the company reported net income of $608 million, up 32.8%, and earnings per diluted share of $4.76, up 36.4%, in each case versus the year-ago period.

Net revenue for the second quarter of 2011 was $1.7 billion, a 22.1% increase versus the same period in 2010. On a constant currency basis, net revenue increased 18.0%.

“Solid global performance, including strong increases in volume and processed transactions, fueled double-digit revenue growth this quarter,” said MasterCard CEO Ajay Banga in the same release. “While payment volumes have risen across our base customers, were also seeing new business such as the portfolio conversions of SunTrust and Sovereign, as well as new processing relationships in the Netherlands and in Brazil, contribute to growth.”

Banga added, “During the quarter, work continued in the mobile commerce category highlighted by an agreement with Google and multiple partners to launch the Google Wallet, as well as our alliance with Isis, in the U.S. Additionally, the previously announced Orange and Barclaycard contactless mobile payment service became available to U.K. consumers in May. Other notable agreements we executed include a commercial alliance with China Union Pay to enable its cards for cross-border e-Commerce, and a new, multi-product agreement with Swedbank in the Nordic and Baltic regions.”

MasterCard is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.

Tags: , , , , ,
Posted in Financial Stocks | No Comments »

« Older Entries
Newer Entries »