Takeover target Primedia Inc. (PRM) climbs Monday

Posted on Monday, May 16th, 2011

Primedia Inc. (NYSE: PRM) shares surged 60.2% to $7.01, after the provider of rental and other consumer directories said it would be acquired for $7.10 a share, or about $525 million, by affiliates of TPG Capital. Volume for the stock Monday morning was 2.7 million shares, dwarfing an all-day average of just over 60,000.

Under the terms of the agreement, holders of the outstanding common shares of PRIMEDIA will receive $7.10 per share in cash, representing a transaction enterprise value of approximately $525 million. The agreement was unanimously approved by the Board of Directors of PRIMEDIA and the independent directors of the Board.

Primedia CEO Charles Stubbs, said, “I am pleased to announce this agreement as it delivers significant value to our shareholders. In addition, it is a clear endorsement of PRIMEDIA and of the hard work and commitment of each and every one of our employees.

“TPG is a premier private investment firm,” Stubbs added, “and has a strong understanding and appreciation for our marketplace, our business model, our business strategies and the potential opportunities that lie ahead. We are very excited about this transaction.”

Primedia helps millions of consumers nationwide find apartments, houses for rent or new homes for sale through its innovative Internet, mobile and print solutions.

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Dynavox Inc. (DVOX) shares take flight on Q3 numbers

Posted on Thursday, May 12th, 2011

Dynavox Inc. (Nasdaq: DVOX) shares climbed 38% to $8.35 after the maker of education and communication products for those with learning disabilities reported late Wednesday third-quarter results that beat expectations. Volume for the stock was 1.1 million shares, towering over a daily average of less than 60,000.

For the third quarter ended April 1, 2011, net sales were $28.7 million, an increase of 1.0% compared to net sales of $28.4 million for the third quarter ended April 2, 2010. Sales of the Company’s speech generating devices increased 1.3% to $22.7 million, and sales of its special education software were flat at $6.0 million from the prior year.

Operating income was $3.8 million in the quarter, compared to operating income of $5.3 million in the same period a year ago. Operating income for the third quarter of fiscal year 2011 included a $1.0 million impairment loss related to intangible assets and fixed assets acquired as part of the Company’s product acquisition in July 2009.

Dynavox Chief Executive Officer Ed Donnelly commented, “In spite of the ongoing macroeconomic challenges, during the third quarter we saw some signs of improvements and our consolidated top line was roughly equal to the last year. Sales trends across both devices and software provide validation of our efforts to adapt to the environment as well as the fact that the demand for our products and services remains intact. We are encouraged by the steady sequential upside trend in our U.S. device business, which comprises almost three fourths of our total revenue.”

The Pittsburgh-based DynaVox Inc. completed an initial public offering (IPO) on April 27, 2010. As a result of the IPO and certain other recapitalization transactions, DynaVox Inc. became the sole managing member of and has a controlling interest in DynaVox Systems Holdings LLC and its subsidiaries.

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Response Genetics Inc. (RGDX) prospers on Q1 results

Posted on 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.

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

Posted on 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.

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

Posted on 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.

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