Invest In Minnesota Companies

ValueVision Secures $40M Credit Facility, Renews TV Distribution Agreements and Previews Q4 FY'11 Sales

2012-02-10T05:15:00.001-08:00

MINNEAPOLIS, MN--(Marketwire -02/10/12)- ValueVision Media, Inc. (NASDAQ: VVTV - News), a multichannel electronic retailer operating as ShopNBC (www.shopnbc.com), today announced it has secured a $40 million, lower-cost revolving credit facility with PNC Bank, National Association. The Company has also renewed three TV distribution agreements while securing savings of approximately $15 million in annual TV distribution expense commencing January 2013 through the early renewal of its largest TV distribution agreement. In addition, ValueVision announced anticipated sales results for its fiscal 2011 fourth quarter (Q4) and full year ended January 28, 2012.

ValueVision has secured a $40 million revolving credit facility with PNC Bank, National Association, a member of The PNC Financial Services Group, Inc. (NYSE: PNC - News). Loans under the new revolving credit facility will bear an interest rate of LIBOR plus 3% per annum. Proceeds will be used to fund the retirement of the Company's existing 11% per annum, $25 million term loan and the payment of an approximately $12.4 million deferred payment obligation to a TV distribution provider during Q1 2012.

The Company also renewed three TV distribution agreements, covering approximately 54% of ShopNBC's 81 million households. The early renewal of the Company's largest TV distribution agreement covers 18 million homes. The terms of this agreement better reflect rates in today's competitive distribution environment, and ValueVision anticipates a reduction in annual TV distribution costs by approximately $15 million beginning January 2013. As part of the agreement, the Company will receive a second channel on this distribution provider beginning January 2013. The renewals of the other two TV distribution agreements cover a total of 26 million ShopNBC homes. These agreements were effective January 2012 and will improve ShopNBC's channel positioning in over 20% of the homes served by these two distributors.

ValueVision expects to report Q4 '11 net sales of approximately $148 million, a decline of approximately 18% vs. Q4 '10. The net sales decline primarily reflects challenges in Consumer Electronics, which are expected to continue in the near-term. The Company expects fiscal 2011 net sales of approximately $558 million, a decrease of approximately 1% versus the prior year. ValueVision ended fiscal 2011 with $35.1 million in cash and restricted cash, which is an increase of $2.4 million during the quarter, reflecting positive operating cash flow in the quarter.

Keith Stewart, ValueVision CEO, said, "I am disappointed with our fourth quarter sales, which were principally impacted by a sales shortfall in Consumer Electronics. Despite this shortfall, we were able to carefully manage our working capital components during the quarter to improve our cash position. The successful completion of our debt refinancing, as well as the anticipated operational savings and improved channel positioning from renewing our TV distribution agreements, puts the Company in a stronger position to support future growth."

ValueVision will report fourth quarter and fiscal 2011 results on Thursday, March 15 and will hold a conference call and webcast the same day at 11:00am ET.

About ValueVision Media/ShopNBC

ValueVision Media, Inc. operates ShopNBC, a multichannel electronic retailer that enables customers to interact and shop via TV, Internet, mobile devices, Facebook, Twitter and YouTube. The ShopNBC television network reaches over 81 million cable and satellite homes, in addition to live nationwide streaming at www.shopnbc.com. ShopNBC merchandise is focused on jewelry, watches, health, beauty, fashion, accessories, home and consumer electronics. Please visit the company's investor relations website at www.shopnbc.com/ir for this and other company information.

Forward-Looking Information

This release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): consumer preferences, spending and debt levels; interest rates; competitive pressures on sales, pricing and gross profit margins; the level of cable and satellite distribution for the company's programming and the fees associated therewith; the company's ability to successfully execute its turnaround strategy; the ability to achieve the most effective product category mixes to maximize sales and margin objectives; the ability to identify and improve certain key product categories of the Company's business; the success of the company's e-commerce and new sales initiatives; the success of its strategic alliances and relationships; the ability of the company to manage its operating expenses successfully; working capital levels; the ability of the company to successfully manage the ValuePay program; the ability of the company to establish and maintain acceptable commercial terms with third party vendors and other third parties with whom the company has contractual relationships, and to successfully manage key vendor relationships; changes in governmental or regulatory requirements; litigation or governmental proceedings affecting the company's operations; and the ability of the company to obtain and retain key executives and employees. More detailed information about those factors is set forth in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, or to provide additional forward-looking information with respect to future financial results, whether as a result of new information, future events or otherwise.

Contact:

Investors / Media Relations:

Anthony Giombetti

ValueVision Media, Inc.

agiombetti@shopnbc.com

(612) 308-1190

Investors:

Norberto Aja, David Collins, Jennifer Neuman

Jaffoni & Collins

vvtv@jcir.com

InPlay: Value Vision Media issues downside Q4 and FY12 revenue guidance; secures $40 mln credit facility and renews distribution agreements

2012-02-10T05:12:00.001-08:00

Caribou Coffee Announces Fourth Quarter & Fiscal 2011 Earnings Call

2012-02-09T12:31:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)--

Caribou Coffee Company, Inc. (NASDAQ: CBOU - News), the second largest company-owned premium coffeehouse operator in the United States based on the number of coffeehouses, announced today that it will release financial results for its fourth quarter and fiscal year 2011 after the market close on Wednesday, February 22, 2012. Management will host a conference call at 4:30 p.m. Eastern Time the same day as the earnings release.

Listeners may also access the call by dialing 1-888-515-2880 or 1-719-457-2631 for international callers. A replay of the call will be available until Wednesday, February 29, 2012, by dialing 1-877-870-5176 or 1-858-384-5517 for international callers; the password is 4192405.

The conference call will also be webcast and can be accessed from the Investor Relations section of the Company’s website at www.cariboucoffee.com.

About the Company

Founded in 1992, Caribou Coffee Company is one of the leading branded coffee companies in the United States, with a compelling multi-channel approach to their customers. Based on the number of coffeehouses, Caribou Coffee is the second largest company-operated premium coffeehouse operator in the United States. As of October 2, 2011, the Company had 559 coffeehouses, including 150 franchised locations, in 20 states, the District of Columbia and nine international markets. The Company's coffeehouses aspire to be the community place loved by guests who are provided an extraordinary experience that makes their day better. Caribou Coffee provides the highest quality handcrafted beverages, foods and coffee lifestyle items with a unique blend of expertise, fun and authentic human connection in a comfortable and welcoming coffeehouse environment. In addition, Caribou Coffee's unique coffees are available within grocery stores, mass merchandisers, club stores, office coffee and foodservice providers, hotels, entertainment venues and e-commerce channels. Caribou Coffee is a proud recipient of the Rainforest Alliance Corporate Green Globe Award and is committed to operating practices that promote sustainability and environmental protection. For more information, visit the Caribou Coffee web site at www.cariboucoffee.com.

Contact:

Investor Relations:

ICR

Raphael Gross, 203-682-8253

ir@cariboucoffee.com

Select Comfort Beats Up on Analysts Yet Again

2012-02-09T12:30:00.001-08:00

The 10-second takeaway

For the quarter ended Dec. 31 (Q4), Select Comfort beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins increased, and net margins improved.

Revenue details

Select Comfort logged revenue of $189.1 million. The seven analysts polled by S&P Capital IQ predicted a top line of $181.2 million. GAAP sales were 27% higher than the prior-year quarter's $148.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details

Non-GAAP EPS came in at $0.30. The eight earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.27 for Q4 were 108% higher than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details

For the quarter, gross margin was 62.9%, 10 basis points worse than the prior-year quarter. Operating margin was 10.6%, 290 basis points better than the prior-year quarter. Net margin was 8.1%, 330 basis points better than the prior-year quarter.

Looking ahead

Next quarter's average estimate for revenue is $226.2 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $863.7 million. The average EPS estimate is $1.37.

Investor sentiment

The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,504 members out of 2,842 rating the stock outperform, and 338 members rating it underperform. Among 950 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 880 give Select Comfort a green thumbs-up, and 70 give it a red thumbs-down.

MoneyGram to Present at the Goldman Sachs Technology and Internet Conference

2012-02-09T12:29:00.001-08:00

DALLAS--(BUSINESS WIRE)--

MoneyGram International, Inc. (NYSE: MGI - News) announced today that Pamela H. Patsley, chairman and chief executive officer, will participate in a question-and-answer session at the Goldman Sachs Technology and Internet Conference in San Francisco on Wednesday, February 15, 2012. The interactive meeting will take place at approximately 12:40 p.m. Eastern Time / 9:40 a.m. Pacific Time at the Palace Hotel. The presentation will also be available via webcast in the Investor Relations portion of www.moneygram.com.

About MoneyGram International

MoneyGram International is a leading global payment services company. The Company provides consumers with an efficient and secure way to send and receive money globally, make urgent bill payments, and purchase money orders. MoneyGram’s products and services are conveniently available through more than 267,000 agent locations in 192 countries and territories. Certain products and services are also available online. For more information, visit the Company’s website at www.moneygram.com or on Facebook.

Contact:

MoneyGram International, Inc.

Media:

Patty Sullivan, 214-303-9923

media@moneygram.com

or

Investors:

Alex Holmes, 214-999-7505

aholmes@moneygram.com

or

Eric Dutcher, 214-999-7508

Select Comfort Announces Fourth-quarter and Full-year 2011 Results

2012-02-08T13:12:00.001-08:00

Reports Fourth-quarter Earnings per Diluted Share of $0.27

Achieves Fourth-quarter Comparable Sales Growth of 31 Percent

Reports 12th Consecutive Quarter of Double-digit Year-over-year Operating Income Growth

Provides 2012 Earnings Guidance

MINNEAPOLIS--(BUSINESS WIRE)--

Select Comfort Corporation (NASDAQ: SCSS - News) today reported fourth-quarter and fiscal 2011 results for the period ended Dec. 31, 2011. Net sales for the quarter increased 27 percent to $189 million, compared to $149 million in the fourth quarter of 2010, driven by company-controlled comparable sales growth of 31 percent. The company reported fourth-quarter earnings per diluted share of $0.27, a 108 percent increase versus $0.13 per diluted share in the fourth quarter of 2010. Fourth-quarter 2011 results included a $1.9 million, or $0.03 per diluted share, non-recurring net decrease to income-tax expense related to the favorable resolution of prior-years’ tax matters.

Net sales for the full-year 2011 increased 23 percent to $743 million, compared to $606 million in 2010, driven by company-controlled comparable sales growth of 26 percent. The company reported earnings per diluted share of $1.07 in 2011, an 88 percent increase versus $0.57 per diluted share in 2010. Full-year 2011 results included a $1.5 million, or $0.03 per diluted share, non-recurring net decrease to income-tax expense related to the favorable resolution of prior-years’ tax matters.

“Our outstanding financial results in 2011 mark a year of significant progress for our company as we refined our top-line growth formula and achieved record bottom-line leverage and profitability,” said Bill McLaughlin, president and CEO, Select Comfort Corporation. “Building on a strong 2010, we continued to attain top-tier comparable sales increases through our integrated and customer-focused approach to marketing, distribution and product innovation.”

McLaughlin added, “Our team enters 2012 with confidence in our proven growth drivers as we continue to broaden our target consumer, increase brand awareness and develop our under-penetrated major markets. We remain focused on delivering sustained growth in market share and earnings for our shareholders, while also maintaining flexibility to effectively manage through continued market uncertainty.”

Fourth-quarter and Full-year Summary

In the fourth quarter, net sales increased by 27 percent as compared to the prior-year period. The increase in sales was driven by company-controlled comparable sales growth of 31 percent, with average retail sales-per-store during the past 12 months reaching a record $1.7 million, a 33 percent improvement over the prior-year period.

Gross-profit margin in the fourth quarter of 2011 was 62.9 percent of net sales, compared with 63.0 percent in the prior-year period. On a full-year basis, gross-profit margin improved 80 basis points from 62.5 percent in 2010 to 63.3 percent in 2011, driven by favorable product mix, pricing actions and manufacturing efficiencies.

Sales and marketing costs were $82.8 million in the fourth quarter, or 43.8 percent of net sales. This compares to $68.6 million, or 46.1 percent of net sales in the prior-year period, reflecting continued leverage from our sales growth. Media investments in the fourth quarter totaled $24 million, 29 percent higher than a year ago.

General and administrative expenses were $15.0 million in the fourth quarter, or 8.0 percent of net sales. This compares to $13.2 million, or 8.9 percent of net sales during the same period last year, again reflecting continued leverage of the company’s fixed-cost base.

Operating income was $20.0 million during the fourth quarter, and operating margin during the quarter improved 290 basis points from 7.7 percent in 2010 to 10.6 percent in 2011. This operating performance resulted in earnings per diluted share of $0.27, a 108 percent year-over-year improvement, which included a $1.9 million non-recurring net decrease to income-tax expense related to the favorable resolution of prior-years’ tax matters.

Cash flows from operating activities were $91 million for full-year 2011 compared to $71 million in the prior year. Capital expenditures for full-year 2011 increased to $23.5 million as compared to $7.3 million in 2010, driven by increased investment in stores and information systems. As of year-end 2011, cash, cash equivalents and marketable-debt securities totaled $146 million, and the company had no borrowings under its revolving credit agreement.

Fiscal 2012 Outlook

The company expects to increase earnings per diluted share by 23 to 31 percent in 2012 to between $1.32 and $1.40. This outlook assumes company-controlled comparable sales growth of at least 15 percent and a net increase in store count from 381 at year-end 2011 to between 400 and 410 by year-end 2012. It also assumes a year-over-year increase in operating margin of at least 100 basis points.

The company currently anticipates that 2012 capital expenditures will be approximately $50 million, reflecting new stores, repositioned stores and remodels, along with continued investment in customer-management systems. The company also announced today that while its first priority for capital deployment is to invest in continued profitable growth, it currently plans to reinitiate a modest share repurchase in 2012 under a previously approved repurchase program, with the objective to maintain share count at current levels.

“The success and predictability of our profitable growth formula in 2011 gives us confidence as we enter 2012,” said Wendy Schoppert, executive vice president and CFO, Select Comfort Corporation. “We expect sustained revenue growth to come from a combination of new stores and higher average sales per store, while we continue to achieve growth in both operating margins and operating cash flow.”

Conference Call

Management will host its regularly scheduled conference call to discuss the company’s results at 5 p.m. Eastern Time (4 p.m. Central; 2 p.m. Pacific) today. To listen to the call, please dial (800) 593-9959 (international participants dial (517) 308-9340) and reference the passcode “Sleep.” To access the webcast, please visit the investor relations area of the Sleep Number website at http://www.sleepnumber.com/eng/aboutus/InvestorRelations.cfm. The webcast replay will remain available in the investor relations area of the company’s website for approximately 60 days.

About Select Comfort Corporation

Select Comfort Corporation (NASDAQ: SCSS - News) is leading the industry in setting a new standard in sleep by offering consumers high-quality, innovative and individualized sleep solutions, which includes a complete line of SLEEP NUMBER® beds and bedding. The company is the exclusive manufacturer, retailer and servicer of the revolutionary Sleep Number bed, which allows individuals to adjust the firmness and support of each side at the touch of a button. The company offers further personalization through its solutions-focused line of Sleep Number pillows, sheets and other bedding products. And as the only national specialty-mattress retailer, consumers can take advantage of an enhanced mattress-buying experience at one of the approximately 380 Sleep Number stores across the country, online at sleepnumber.com or via phone at (800) Sleep Number or (800) 753-3768.

Forward-looking Statements

Statements used in this news release relating to future plans, events, financial results or performance are forward-looking statements subject to certain risks and uncertainties including, among others, such factors as general and industry economic trends; consumer confidence; the effectiveness of our marketing messages; the efficiency of our advertising and promotional efforts; consumer acceptance of our products, product quality, innovation and brand image; availability of attractive and cost-effective consumer credit options; execution of our retail store distribution strategy; our dependence on significant suppliers, and our ability to maintain relationships with key suppliers, including several sole-source suppliers; the vulnerability of key suppliers to recessionary pressures, labor negotiations, liquidity concerns or other factors; rising commodity costs and other inflationary pressures; industry competition; our ability to continue to improve our product line; warranty expenses; risks of pending and potentially unforeseen litigation; increasing government regulations, which have added or will add cost pressures and process changes to ensure compliance; the adequacy of our management information systems to meet the evolving needs of our business and evolving regulatory standards applicable to data privacy and security; our ability to attract and retain senior leadership and other key employees, including qualified sales professionals; and uncertainties arising from global events, such as terrorist attacks or a pandemic outbreak, or the threat of such events. Additional information concerning these and other risks and uncertainties is contained in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, and other periodic reports filed with the SEC. The company has no obligation to publicly update or revise any of the forward-looking statements in this news release.

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Operations

(unaudited – in thousands, except per share amounts)

Three Months Ended

December 31, % of January 1, % of

2011 Net Sales 2011 Net Sales

Net sales $ 189,073 100.0 % $ 148,668 100.0 %

Cost of sales 70,095 37.1 % 54,943 37.0 %

Gross profit 118,978 62.9 % 93,725 63.0 %

Operating expenses:

Sales and marketing 82,778 43.8 % 68,576 46.1 %

General and administrative 15,032 8.0 % 13,203 8.9 %

Research and development 1,192 0.6 % 426 0.3 %

Asset impairment charges 6 0.0 % 43 0.0 %

Total operating expenses 99,008 52.4 % 82,248 55.3 %

Operating income 19,970 10.6 % 11,477 7.7 %

Other income (expense), net 4 0.0 % (67 ) 0.0 %

Income before income taxes 19,974 10.6 % 11,410 7.7 %

Income tax expense 4,604 2.4 % 4,292 2.9 %

Net income $ 15,370 8.1 % $ 7,118 4.8 %

Net income per share – basic $ 0.28 $ 0.13

Net income per share – diluted $ 0.27 $ 0.13

Reconciliation of weighted-average

shares outstanding:

Basic weighted-average shares outstanding 55,424 54,367

Effect of dilutive securities:

Options 873 656

Restricted shares 566 465

Diluted weighted-average shares outstanding 56,863 55,488

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

Twelve Months Ended

December 31, % of January 1, % of

2011 Net Sales 2011 Net Sales

Net sales $ 743,203 100.0 % $ 605,676 100.0 %

Cost of sales 272,858 36.7 % 227,413 37.5 %

Gross profit 470,345 63.3 % 378,263 62.5 %

Operating expenses:

Sales and marketing 317,502 42.7 % 269,901 44.6 %

General and administrative 58,106 7.8 % 53,572 8.8 %

Research and development 4,175 0.6 % 2,147 0.4 %

Asset impairment charges 109 0.0 % 260 0.0 %

Total operating expenses 379,892 51.1 % 325,880 53.8 %

Operating income 90,453 12.2 % 52,383 8.6 %

Other expense, net (33 ) 0.0 % (1,893 ) (0.3 %)

Income before income taxes 90,420 12.2 % 50,490 8.3 %

Income tax expense 29,942 4.0 % 18,922 3.1 %

Net income $ 60,478 8.1 % $ 31,568 5.2 %

Net income per share – basic $ 1.10 $ 0.58

Net income per share – diluted $ 1.07 $ 0.57

Reconciliation of weighted-average

shares outstanding:

Basic weighted-average shares outstanding 55,081 54,005

Effect of dilutive securities:

Options 821 817

Restricted shares 530 442

Diluted weighted-average shares outstanding 56,432 55,264

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except per share amounts)

subject to reclassification

December 31, January 1,

2011 2011

Assets

Current assets:

Cash and cash equivalents $ 116,255 $ 76,016

Marketable debt securities – current 20,020 -

Accounts receivable, net of allowance for doubtful accounts

of $397 and $302, respectively 13,844 9,909

Inventories 24,851 19,647

Prepaid expenses 5,778 6,388

Deferred income taxes 4,443 4,297

Other current assets 6,004 652

Total current assets 191,195 116,909

Marketable debt securities – non-current 10,042 -

Property and equipment, net 43,850 32,953

Deferred income taxes 12,964 15,965

Other assets 4,606 4,130

Total assets $ 262,657 $ 169,957

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable $ 50,141 $ 42,025

Customer prepayments 13,529 12,944

Compensation and benefits 29,806 24,857

Taxes and withholding 9,883 5,359

Other current liabilities 15,691 11,671

Total current liabilities 119,050 96,856

Non-current liabilities:

Warranty liabilities 2,714 2,815

Other long-term liabilities 11,502 12,309

Total non-current liabilities 14,216 15,124

Total liabilities 133,266 111,980

Shareholders’ equity:

Undesignated preferred stock; 5,000 shares authorized,

no shares issued and outstanding - -

Common stock, $0.01 par value; 142,500 shares authorized,

56,397 and 55,455 shares issued and outstanding, respectively 564 555

Additional paid-in capital 47,701 36,799

Retained earnings 81,101 20,623

Accumulated other comprehensive income 25 -

Total shareholders’ equity 129,391 57,977

Total liabilities and shareholders’ equity $ 262,657 $ 169,957

NOTE: In the first quarter of fiscal 2011 we began reporting cash resulting from credit and debit card transactions when received, rather than on an in-transit basis. To maintain consistency and comparability, previously reported amounts have been reclassified to conform to the current-year presentation.

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

subject to reclassification

Twelve Months Ended

December 31, January 1,

2011 2011

Cash flows from operating activities:

Net income $ 60,478 $ 31,568

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation and amortization 13,543 14,626

Stock-based compensation 4,971 3,962

Net disposals and impairments of assets 98 251

Excess tax benefits from stock-based compensation (2,190 ) (1,358 )

Deferred income taxes 2,839 2,352

Changes in operating assets and liabilities:

Accounts receivable (3,935 ) 718

Inventories (5,204 ) (4,001 )

Income taxes 4,445 6,647

Prepaid expenses and other assets (1,976 ) 1,579

Accounts payable 6,913 3,995

Customer prepayments 585 1,707

Accrued compensation and benefits 5,167 11,471

Other taxes and withholding 1,944 53

Warranty liabilities 566 (1,398 )

Other accruals and liabilities 2,802 (765 )

Net cash provided by operating activities 91,046 71,407

Cash flows from investing activities:

Purchases of property and equipment (23,527 ) (7,349 )

Proceeds from sales of property and equipment 11 10

Investments in marketable debt securities (40,021 ) -

Proceeds from sales and maturity of marketable debt securities 10,000 -

Increase in restricted cash (2,650 ) -

Net cash used in investing activities (56,187 ) (7,339 )

Cash flows from financing activities:

Net decrease in short-term borrowings (795 ) (1,074 )

Repurchases of common stock (371 ) (1,391 )

Proceeds from issuance of common stock 4,356 1,014

Excess tax benefits from stock-based compensation 2,190 1,358

Debt issuance costs - (143 )

Net cash provided by (used in) financing activities 5,380 (236 )

Net increase in cash and cash equivalents 40,239 63,832

Cash and cash equivalents, at beginning of period 76,016 12,184

Cash and cash equivalents, at end of period $ 116,255 $ 76,016

NOTE: To maintain consistency and comparability, certain amounts from previously reported financial statements have been reclassified to conform to the current-year presentation. See Note on page 7.

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Supplemental Financial Information

(unaudited)

Three Months Ended Twelve Months Ended

December 31, January 1, December 31, January 1,

2011 2011 2011 2011

Percent of sales:

Retail 87.1 % 83.7 % 87.5 % 84.0 %

Direct and E-Commerce 9.3 % 10.3 % 8.7 % 10.8 %

Wholesale 3.6 % 6.0 % 3.8 % 5.2 %

Total 100.0 % 100.0 % 100.0 % 100.0 %

Sales growth rates:

Retail comparable-store sales 33 % 12 % 29 % 21 %

Direct and E-Commerce 14 % (6 %) (1 %) 5 %

Company-Controlled comparable sales change 31 % 10 % 26 % 19 %

Net closed stores/other (1 %) (2 %) (1 %) (5 %)

Total Company-Controlled Channels 30 % 8 % 25 % 14 %

Wholesale (24 %) 32 % (11 %) (21 %)

Total 27 % 9 % 23 % 11 %

Stores open:

Beginning of period 374 392 386 403

Opened 10 5 19 7

Closed (3 ) (11 ) (24 ) (24 )

End of period 381 386 381 386

Other metrics:

Average sales per store ($ in 000's)1 $ 1,721 $ 1,295

Average sales per square foot1 $ 1,135 $ 873

Stores > $1 million net sales1 93 % 70 %

Stores > $2 million net sales1 24 % 7 %

Average mattress sales per mattress unit - Company Controlled Channels2 $ 2,262 $ 2,035 $ 2,208 $ 2,010

1Trailing twelve months for stores open at least one year.

2Includes revenue from adjustable foundations which has become a more significant part of the mattress mix. The prior definition excluded revenue from adjustable foundations. Previously reported amounts have been reclassified to conform to the current-year presentation.

SELECT COMFORT CORPORATION AND SUBSIDIARIES

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

(in thousands)

We define earnings before interest, taxes, depreciation and amortization (EBITDA) as net income plus: income tax expense, interest expense, depreciation and amortization, stock-based compensation and asset impairments consistent with the definition used in our debt covenant calculations. Management believes EBITDA is a useful indicator of the Company's financial performance. Our definition of EBITDA may not be comparable to similarly titled definitions used by other companies. The tables below reconcile EBITDA, which is a non-GAAP financial measure, to comparable GAAP financial measures:

Three Months Ended Trailing-Twelve Months Ended

December 31, January 1, December 31, January 1,

2011 2011 2011 2011

Net income $ 15,370 $ 7,118 $ 60,478 $ 31,568

Income tax expense 4,604 4,292 29,942 18,922

Interest expense 43 87 187 1,951

Depreciation and amortization 3,744 3,295 13,493 13,012

Stock-based compensation 1,297 1,201 4,971 3,962

Asset impairments 6 43 109 260

EBITDA $ 25,064 $ 16,036 $ 109,180 $ 69,675

Note - Our EBITDA calculation is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.

GAAP - generally accepted accounting principles

Contact:

Select Comfort Corporation

Media Contact:

Gabby Nelson, 763-551-7460

gabby.nelson@selectcomfort.com

or

Investor Contact:

Edwin Boon, 763-551-7498

investorrelations@selectcomfort.com

FSI International receives follow-on order for ORION

2012-02-08T06:15:00.001-08:00

FSI International announced that it received a follow-on order for its ORION Single Wafer Cleaning System from a leading semiconductor producer. The system will be used for FEOL applications. The company expects to ship the system in the second half of FY12.

Q4 2011 Select Comfort Corp Earnings Release - After Market Close

2012-02-08T06:14:00.001-08:00

Digital River to Present at the Stifel Nicolaus Technology and Telecom Conference

2012-02-07T13:05:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)--

Digital River, Inc. (NASDAQ: DRIV), the revenue growth experts in global cloud commerce, announced that the company is presenting at the Stifel Nicolaus 2012 Technology and Telecom Conference. The event, which is being held at the St. Regis Monarch Beach Resort in Dana Point, Calif., takes place Feb. 7-9, 2012.

Digital River’s CEO, Joel Ronning, will discuss the company’s business strategy during his fireside presentation at 2:40 p.m. PST on Feb. 8, 2012. A live webcast of Digital River’s session will be accessible online through the Investor Relations page of the corporate website. An audio replay of the session will also be archived on the site following the live presentation.

About Digital River

Digital River, Inc., the revenue growth experts in global cloud commerce, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running a global commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.

Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website, call +1 952-253-1234, or follow the company on Twitter.

Digital River is a registered trademark of Digital River, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.

Twitter Tags: #DigitalRiver, $DRIV

Tweet This: Digital River to present at upcoming investor event $DRIV

Contact:

Digital River, Inc.

Media Contact:

Jennifer Jasinski

Marketing Communications Manager

952-225-3637

publicrelations@digitalriver.com

or

Investor Relations Contact:

Ed Merritt

Vice President, Investor Relations

952-225-3362

investorrelations@digitalriver.com

Digital River downgraded by Argus

2012-02-07T13:04:00.001-08:00

Target's (TGT) Canadien expansion appears to be concerning to Walmart

2012-02-07T11:11:00.000-08:00

Story courtesy of AP, via CBS.com.

(AP) MISSISSAUGA, Ontario — Wal-Mart Canada plans to spend more than $750 million over the next year to open, relocate or remodel 73 retail stores, including former Zellers locations.

The world's biggest retailer said Tuesday the initiative will create more than 14,000 jobs when factoring in store employees, as well as trade and construction jobs.

Included on the list of stores are 39 Zellers stores that Wal-Mart purchased last year.

Wal-Mart said more than half of the 73 projects will become supercenters, which offer an array of groceries as well as general merchandise. The retailer opened its first Canadian supercenters in Ontario in 2006, and has since ramped up expansion plans for the large-store concept.

The expansion comes as competition in the Canadian retail market heats up with the entry of fellow discount retailer Target next year.

The company plans to open 125 to 135 stores.

Target has purchased the leasehold interests of 189 sites currently operated by Zellers Inc. and it says about $10 million to $11 million will be invested to remodel each facility.

Wal-Mart operates 333 stores in Canada, which includes 164 supercenters.

FSI International: This Small Semiconductor Company Could Clean Up

2012-02-07T11:07:00.000-08:00

The following is an excerpt from SeekingAlpha.com, click here for the complete story.

It has already been a fairly solid year for many companies in the semiconductor equipment space. With guidance from major players like Applied Materials (AMAT) and ASML (ASML) suggesting that dawn is breaking and the merger between Lam Research (LRCX) and Novellus (NVLS) hinting that business is getting back to normal, investors seem to be willing to consider risky stories again.

That could set up the right sort of one-two punch for investors in FSI International (FSII). Like many other small equipment vendors, FSI was hit hard by the downturn in equipment spending. Unlike some of those small peers, though, FSI is coming into a cyclical upswing with a new product and the potential for some real sales momentum. Couple that with the fact that this stock is barely followed and has about 10% short interest, and it may not take much for this stock to do even more in 2012.

The Right Tool And The Right Time?

FSI is in the business of surface conditioning equipment -- basically products that clean, strip, and condition wafers used to make chips. It's a critical part in the chip manufacturing process, and one that is dominated by big-name competition from the likes of Dainippon Screen (DINRF.PK), Tokyo Electron (TOELY.PK) , Lam Research (LRCX), and Applied Materials (AMAT).

There is no question that FSI is a small fish in this pond. Dainippon basically dominates the market with roughly 70% share in single wafer cleaning and over 50% share in batch cleaning. Lam is a distant #2 in single wafer (and doesn't compete at all in batch), while Tokyo Electron holds a strong #2 spot in batch but is a more distant #3 in single wafer. Applied Materials is mostly an afterthought from a global share perspective, as is FSI.

Nevertheless, FSI is hoping that its new product platform (Orion) can change this. First released in 2010, Orion offers single wafer wet process cleaning that is usable all the way down to 28nm manufacturing (basically the state of the art). Already qualified at four customers, the system is in the qualification process with two more, and the company reports that the Orion is already being used in 22nm chip development.

Challenges And Opportunities

FSI will certainly have its work cut out gaining any ground on Dainippon -- a company that has already moved towards 450mm wafers (the Orion processes 300mm wafers) and advanced methodologies that can allow for speeds of up to 1,000 wafers per hour (about triple what I believe Orion can handle). But it is not as though FSI is not used to competition nor completely helpless, as the closed chamber design of the Orion has some perks of its own and overall productivity and defect rates are attractive.

It's also worth noting that this is not a one product company. FSI has other product lines like Antares to sell through to customers.

Speaking of customers, FSI has recently reported follow-on orders from a foundry and management has commented that current product order visibility is the "best" it has been in "some time". Given past customer patterns, I would suspect that FSI is seeing more interest from Samsung (SSNLF.PK) -- one of the world's largest chip makers and a big FSI customer in the past.

The good and bad about FSI, though, is that one customer (or even just one system) can make a big difference over a quarter or a fiscal year. So while getting past customers like Samsung, GlobalFoundries, and Hynix on board with the Orion is indeed important, so too would be penetrating a new customer like Intel (INTC), Taiwan Semiconductor (TSM) or Texas Instruments (TXN) (the first two of which are Dainippon customers).

That said, investors should keep in mind that there have generally been higher switching costs for cleaning equipment relative to other types of equipment. That could put pressure on FSI to demonstrate that it, too, is ready for the migration to 450mm wafers and other advanced processes.

As it stands now, the company is reporting not only follow-on orders (meaning that the customers liked what they saw and want more systems), but multiple orders from multiple parties. The end result of all this activity is that revenue is expected to double sequentially to over $30 million in the February quarter. While data from Dainippon and Tokyo Electron confirms the basically directionality of the market (orders are improving), FSI's small size leaves it with proportionately more to gain.

The Bottom Line

Any time an investor looks at a company as small as FSI, the risks go up significantly; large rivals like Dainippon and Applied Material have the resources to out-spend them in the R&D lab, and chip companies are often unsure of trusting critical processes to smaller players. By the same token, FSI has a history of at least staying in the game and the Orion could be a catalyst for real share growth.

It's hard to say that FSI is a great takeout candidate. The company has to demonstrate that its technology can bloody a few noses among the big boys before it would make any real sense for a company like Lam or Applied Materials to consider it. Still, successful small toolmakers in this space don't tend to stay independent.

The question is whether FSI can get enough business to be a success. Support from a company like Samsung certainly doesn't hurt, but this is very definitely a David vs. Goliath battle (or Godzilla, if you prefer) and Goliath wins the vast majority of those.

If you believe that FSI can get back to bubble-era sales (about $200 million in revenue) and achieve "industry standard" free cash flow conversion, these shares are cheap enough to consider today. More to the point, if the company can do all of that, these shares could come close to doubling again, despite already more than doubling off the 52-week low. Just don't fool yourself about how easy that goal will be to achieve -- this is a pretty standard high-risk / high-reward small-cap tech story.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

SurModics Reports First Quarter Fiscal Year 2012 Results

2012-02-07T11:05:00.000-08:00

Year-on-Year Revenue Growth in Key Product Offerings

8% Revenue growth in Hydrophilic Coatings

13% Revenue growth in In Vitro Diagnostics

Closed Sale of Pharmaceuticals Assets

Affirmed Full Year 2012 Outlook

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--

SurModics, Inc. (Nasdaq:SRDX - News), a leading provider of surface modification and in vitro diagnostic technologies to the healthcare industries, today announced results for its fiscal 2012 first quarter.

NOTE: Unless otherwise noted financial information presented, including our fiscal 2012 outlook, excludes the discontinued operations of our former Pharmaceuticals business. As a reminder, substantially all of the Pharmaceuticals assets were sold on November 17, 2011. Additionally, during the preparation of our fiscal 2012 first quarter financial results, our accounting team discovered that the asset impairment charge had been incorrectly calculated. Management has determined that it is necessary for the Company to restate its results for the fourth quarter and fiscal year 2011, which is explained in more detail below.

“Our first quarter financial results reflect the positive momentum generated by our strategic initiatives implemented over the course of fiscal 2011,” stated Gary Maharaj, President and Chief Executive Officer of SurModics. “The past twelve months were a period of major transformation for the Company, as we focused on initiatives aimed at returning the Company to long-term profitable growth. This included the sale of substantially all of the assets of our Pharmaceuticals business, which increases our ability to focus on growing our core businesses. As a result, we saw top line growth in key areas of our businesses, including hydrophilic coatings and from our IVD business, which grew at 8% and 13%, respectively, over the prior year period.”

First Quarter Summary

Revenue for the first quarter totaled $11.9 million, a 5% decline from the $12.5 million reported in the first quarter of last year. Diluted earnings per share was $0.12 for the first quarter compared to diluted earnings per share of $0.16 for the same period last year.

Results for the first quarter were impacted by a $2.0 million decline in royalty and product revenue associated with Cypher and Cypher Select Plus drug eluting stents. As previously disclosed, Cordis announced that it would cease the manufacture of these products by the end of calendar year 2011. In addition, during the first quarter of 2011 the Company recorded an $0.8 million one-time R&D expense benefit from qualified therapeutic grants.

Excluding the impact of Cypher, revenue increased 14% from the year ago period. Adjusting for the Cypher revenue items, qualified therapeutic grants and one-time charges, diluted earnings per share in the first quarter was $0.11 compared to diluted earnings per share of $0.08 last year.

Maharaj continued, “Our core product offerings are stronger than they were a year ago. Growth in our hydrophilic coatings and IVD product offerings offset much of the revenue loss associated with Cypher. Our focus on our core has positioned us for sustainable organic growth. Furthermore, we continue to make progress on our key R&D initiatives that will contribute to our long term growth. We remain confident in our organic growth strategy and reinforce our full year outlook for the business.”

Medical Device Q1 FY 2012 Highlights

On a GAAP basis, revenue for the Medical Device business unit, which includes hydrophilic coatings and device drug delivery technologies, was $8.9 million, down 10% from the prior year period. First quarter results include hydrophilic coating revenue of $8.2 million, representing 8% growth compared with the year ago period. Excluding the impact of Cypher, Medical Device revenue grew 14% from the year ago period.

Medical Device generated $3.9 million of operating income during the quarter, a 32% decline from last year. Excluding Cypher and the first quarter 2011 therapeutic grants, Medical Device operating income grew 24% from the year ago period.

Additional Medical Device highlights during the quarter include:

Ten consecutive quarters of year-on-year hydrophilic royalty revenue growth

Four medical device customers launched new products during the first quarter utilizing SurModics hydrophilic coatings

Edwards LifeSciences received FDA clearance for its Sapien transcatheter aortic heart valve system, which utilizes a SurModics hydrophilic coating; this is the first U.S. approval for this device type

OrbusNeich presented positive clinical results on its Combo Dual Therapy Stent, which incorporates SurModics’ SynBiosys biodegradable polymer platform, from its REMEDEE (Randomized Evaluation of an abluMinal sirolimus coated bio-Engineered stEnt) trial

In Vitro Diagnostic Q1 FY 2012 Highlights

For the first quarter, In Vitro Diagnostic sales of $3.0 million grew 13% compared with the first quarter of fiscal 2011. The In Vitro Diagnostic business unit generated $0.9 million of operating income during the first quarter, a 23% increase from the year ago period.

Additional In Vitro Diagnostic highlights during the quarter include:

Five consecutive quarters of year-on-year product revenue growth

Operating margin improved over 200 basis points to 30%

Growth in the number of new diagnostic test kit customers exceeded 20% in the past 12 months

Strong customer interest in our recently launched Assay Diluent and BioFX membrane substrate products

Fiscal 2012 Outlook

SurModics reaffirms its previously stated revenue and earnings per share outlook for fiscal 2012. The Company expects full-year revenue from continuing operations to be in the range of $47 to $51 million. GAAP diluted earnings per share from continuing operations are expected to be in the range of $0.45 to $0.53 per share. The outlook is based upon a diluted share count of 17.6 million shares.

Discontinued Operations

The sale of substantially all of the Pharmaceuticals assets was completed on November 17, 2011. The Company reported $2.5 million of pre-tax income from its Pharmaceuticals operations in the first quarter of 2012. In addition, the Company reported a $1.7 million pre-tax loss on the sale of Pharmaceuticals assets.

Fiscal Year 2011 Restatement

In the fourth quarter ended September 30, 2011, the Company recorded an asset impairment charge of $17.9 million associated with certain long-lived assets of its Pharmaceuticals business. During its preparation of the financial statements for the first quarter ended December 31, 2011, the Company determined that the asset impairment charge had been incorrectly calculated, and as a result, the amount of the asset impairment charge should have been $28.1 million. Accordingly, the Company will restate its financial statements for the fourth quarter and fiscal year ended September 30, 2011, to reflect the $28.1 million asset impairment charge.

The restated fiscal 2011 financial results will include the following: operating loss of $27.7 million, compared with the previously reported operating loss of $17.5 million; net loss of $18.5 million, compared with the previously reported net loss of $12.8 million; diluted loss per share of ($1.06), compared with the previously reported diluted loss per share of ($0.73). This non-cash asset impairment charge associated with the restatement will have no effect on continuing operations. The Company expects to file an amendment to its Annual Report on Form 10-K for the year ended September 30, 2011, with the Securities and Exchange Commission in the next two weeks.

Live Webcast

SurModics will host a webcast at 10:00 a.m. ET (9:00 a.m. CT) today to discuss the first quarter results. To access the webcast go to the investor relations portion of the Company’s website at www.surmodics.com and click on the webcast icon. A replay of the first quarter conference call will be available by dialing 800-406-7325 and entering conference call ID passcode 4513088. The audio replay will be available beginning at 12:00 p.m. CT on Monday, February 6, until 12:00 p.m. CT on Monday, February 13.

About SurModics, Inc.

SurModics’ vision is to extend and improve the lives of patients through technology innovation. The Company partners with the world’s foremost medical device, pharmaceutical and life science companies to develop and commercialize innovative products that result in improved diagnosis and treatment for patients. Core offerings include: surface modification coating technologies that impart lubricity, prohealing, and biocompatibility capabilities; and components for in vitro diagnostic test kits and specialized surfaces for cell culture and microarrays. SurModics is headquartered in Eden Prairie, Minnesota. For more information about the Company, visit www.surmodics.com. The content of SurModics’ website is not part of this release or part of any filings the Company makes with the SEC.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations regarding our ability to return to sustainable, long-term profitability, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including (1) our reliance on third parties (including our customers and licensees) and their failure to successfully develop, obtain regulatory approval for, market and sell products incorporating our technologies may adversely affect our business operations, our ability to realize the full potential of our pipeline, and our ability to achieve our corporate goals; and (2) the factors identified under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2011, and updated in our subsequent reports filed with the SEC. These reports are available in the Investors section of our website at www.surmodics.com and at the SEC website at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, SurModics is reporting non-GAAP financial results including non-GAAP revenue, non-GAAP operating income, non-GAAP net income and non-GAAP diluted net income per share. We believe that these non-GAAP measures provide meaningful insight into our operating performance excluding certain event-specific charges, and provide an alternative perspective of our results of operations. We use non-GAAP measures, including those set forth in this release, to assess our operating performance and to determine payout under our executive compensation programs. We believe that presentation of certain non-GAAP measures allows investors to review our results of operations from the same perspective as management and our board of directors and facilitates comparisons of our current results of operations. The method we use to produce non-GAAP results is not in accordance with GAAP and may differ from the methods used by other companies. Non-GAAP results should not be regarded as a substitute for corresponding GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures presented should be viewed in conjunction with both our financial statements prepared in accordance with GAAP and the reconciliation of the supplemental non-GAAP financial measures to the comparable GAAP results provided for the specific periods presented, which are attached to this release.

SurModics, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended

December 31,

2011 2010

(Unaudited)

Revenue

Royalties and license fees $ 6,610 $ 7,517

Product sales 4,634 4,449

Research and development 672 556

Total revenue 11,916 12,522

Operating expenses

Product costs 1,590 1,563

Research and development 3,638 2,505

Selling, general and administrative 3,466 3,724

Restructuring charges ― 609

Total operating costs and expenses 8,694 8,401

Operating income from continuing operations 3,222 4,121

Investment income 146 184

Income from continuing operations before income taxes 3,368 4,305

Income tax provision (1,213 ) (1,445 )

Income from continuing operations 2,155 2,860

Discontinued operations:

Income from discontinued operations, net of taxes 1,605 (9,031 )

Loss on sale of discontinued operations, net of taxes (1,054 ) ―

Income (loss) from discontinued operations 551 (9,031 )

Net income (loss) $ 2,706 $ (6,171 )

Basic income (loss) per share:

Continuing operations $ 0.12 $ 0.16

Discontinued operations 0.03 (0.52 )

Net income (loss) $ 0.15 $ (0.36 )

Diluted income (loss) per share:

Continuing operations $ 0.12 $ 0.16

Discontinued operations 0.03 (0.52 )

Net income (loss) $ 0.15 $ (0.35 )

Weighted average number of shares outstanding:

Basic 17,476 17,383

Diluted 17,528 17,397

SurModics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

December 31

2011 September 30,

2011

(As Restated)

(Unaudited)

Assets

Cash and investments $ 62,924 $ 38,443

Accounts receivable 4,767 4,385

Inventories 2,972 3,181

Other current assets 7,445 2,410

Current assets of discontinued operations 2,523 5,389

Total current assets 80,631 53,808

Property and equipment, net 14,042 14,586

Long-term investments 31,500 29,754

Other assets 25,220 25,529

Non-current assets of discontinued operations 594 33,105

Total assets $ 151,987 $ 156,782

Liabilities and Stockholders’ Equity

Current liabilities $ 4,484 $ 5,693

Current liabilities of discontinued operations 1,984 5,349

Total current liabilities 6,468 11,042

Other liabilities 2,578 2,641

Non-current liabilities of discontinued operations ― 3,491

Total stockholders’ equity 142,941 139,608

Total liabilities and stockholders’ equity $ 151,987 $ 156,782

SurModics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

Three Months Ended

December 31,

2011 2010

(Unaudited)

Operating Activities:

Net income (loss) $ 2,706 $ (6,171 )

(Income) loss from discontinued operations (1,605 ) 9,031

Loss on sale of discontinued operations 1,054 ―

Depreciation and amortization 749 797

Stock-based compensation 893 840

Net other operating activities (25 ) (2,481 )

Change in operating assets and liabilities:

Accounts receivable (383 ) 428

Accounts payable and accrued liabilities (2,872 ) 695

Income taxes 1,263 3,051

Deferred revenue (14 ) 518

Net change in other operating assets and liabilities 175 14

Net cash provided by operating activities from continuing operations 1,941 6,722

Investing Activities:

Net purchases of property and equipment (157 ) (832 )

Payment related to a prior business acquisition ― (750 )

Cash received from (transferred to) discontinued operations 24,684 (2,020 )

Net other investing activities (83 ) (212 )

Net cash provided by (used in) investing activities of continuing operations 24,444 (3,814 )

Financing Activities:

Purchase of common stock to fund employee taxes (170 ) ―

Net other financing activities 63 (2 )

Net cash used in financing activities of continuing operations (107 ) (2 )

Net cash provided by continuing operations 26,278 2,906

Discontinued operations:

Net cash used in operating activities (2,344 ) (1,447 )

Net cash provided by (used in) investing activities 26,892 (561 )

Net cash (used in) provided by financing activities (24,684 ) 2,020

Net cash (used in) provided by discontinued operations (136 ) 12

Net change in cash and cash equivalents 26,142 2,918

Cash and Cash Equivalents:

Beginning of period 23,217 11,391

End of period $ 49,359 $ 14,309

SurModics, Inc. and Subsidiaries

Supplemental Segment Information

(in thousands)

(Unaudited)

Three Months Ended December 31,

2011 2010 % Change

Revenue % of Total % of Total

Medical Device $ 8,867 74.4 % $ 9,835 78.5 % -9.8 %

In Vitro Diagnostics 3,049 25.6 2,687 21.5 13.5

Total revenue $ 11,916 100.0 % $ 12,522 100.0 % -4.8 %

Three Months Ended

December 31,

2011 2010

Operating Income (Loss)

Medical Device $ 3,932 $ 5,776

In Vitro Diagnostics 906 734

Corporate (1,616 ) (2,389 )

Total operating income (loss) $ 3,222 $ 4,121

SurModics, Inc. and Subsidiaries

Supplemental Non-GAAP Information

For the Three Months Ended December 31, 2011

(In thousands, except per share data)

(Unaudited)

As Reported

GAAP(1) Other

Adjustments Adjusted

Non-GAAP(2)

Revenue

Royalties and license fees $ 6,610 $ (189) (3) $ 6,421

Product sales 4,634 4,634

Research and development 672 672

Total revenue 11,916 (189) 11,727

Operating income $ 3,222 $ (189) (3) $ 3,033

Income from continuing operations $ 2,155 $ (184) (4) $ 1,971

Diluted earnings per share from continuing operations(5) $ 0.12 $ 0.11

(1) Reflects operating results from our continuing operations in accordance with U.S. generally accepted accounting principles (GAAP). Our Pharmaceuticals segment results are now presented as discontinued operations.

(2) Adjusted Non-GAAP amounts consider adjustments to royalty revenue associated with the Cordis Cypher and Cypher Select Plus stents in the period in accordance with GAAP.

(3) Reflects the exclusion of the royalty revenue associated with the Cordis Cypher and Cypher Select Plus stents.

(4) Reflects the after tax impact of the revenue adjustments and adjustment to the income tax provision utilizing an Adjusted Non-GAAP effective tax rate of 38.0% for the period presented.

(5) Diluted earnings per share from continuing operations is calculated using the diluted weighted average shares outstanding for the period presented.

SurModics, Inc. and Subsidiaries

Supplemental Non-GAAP Information

For the Three Months Ended December 31, 2010

(In thousands, except per share data)

(Unaudited)

As Reported

GAAP(1) Other

Adjustments Adjusted

Non-GAAP(2)

Revenue

Royalties and license fees $ 7,517 $ (1,684) (3) $ 5,833

Product sales 4,449 (512) (3) 3,937

Research and development 556 556

Total revenue 12,522 (2,196) 10,326

Operating income $ 4,121 $ (2,143) (4) $ 1,978

Income from continuing operations $ 2,860 $ (1,520) (5) $ 1,340

Diluted earnings per share from continuing operations(6) $ 0.16 $ 0.08

(1) Reflects operating results from our continuing operations in accordance with U.S. generally accepted accounting principles (GAAP). Our Pharmaceuticals segment results are now presented as discontinued operations.

(2) Adjusted Non-GAAP amounts consider adjustments to royalty revenue and product sales associated with the Cordis Cypher and Cypher Select Plus stents and other specific items recognized in the period in accordance with GAAP.

(3) Reflects the exclusion of the royalty revenue and product sales associated with the Cordis Cypher and Cypher Select Plus stents.

(4) Reflects adjustments for royalty revenue of $1,684, product sales of $512, reduction of Cypher related product costs of $271, reversal of qualified therapeutic grant income of $827 and reversal of restructuring charges of $609.

(5) Reflects the after tax impact of the adjustments and adjustment to the income tax provision utilizing an Adjusted Non-GAAP effective tax rate of 38.0% for the period presented.

(6) Diluted earnings per share from continuing operations is calculated using the diluted weighted average shares outstanding for the period presented.

Contact:

SurModics, Inc.

Tim Arens, 952-500-7000

Vice President of Finance and interim Chief Financial Officer

SUPERVALU Announces Companywide Workforce Reduction

2012-02-07T09:41:00.000-08:00

10:24a ET February 7, 2012 (Business Wire) SUPERVALU INC. (NYSE: SVU) today announced plans to reduce its national workforce by an estimated 800 positions. A majority of these reductions will take place by the close of the company's fiscal year on February 25, 2012. The reductions include both current positions and open jobs that will not be filled.

This announcement continues SUPERVALU's strategic plan to remove permanent expenses from its business as well as reduce overall operating costs, efforts which are necessary in helping the company achieve its plan to deliver more competitive pricing to its customers. The announcement affects all company offices and crosses most departments within the organization. In general, store level associates are not affected by this announcement. Associates whose positions are eliminated will be eligible for severance and outplacement services based on our eligibility guidelines.

"These reductions are necessary to help further strengthen and accelerate SUPERVALU's business turnaround in a very competitive marketplace," said Craig Herkert, SUPERVALU's chief executive officer and president. "While the announcement of a workforce reduction is difficult news to share, due to its direct impact on our associates, these changes will allow us to better connect with customers and put more authority in the hands of people who interact more closely with our customers."

SUPERVALU introduced its strategic vision a little over a year ago that focuses heavily on improving its retail business through planned price reductions and an emphasis on hyperlocal retailing at its more than 1,100 traditional retail stores across the country. In addition, the company remains focused on investing capital into the growth of Save-A-Lot, its national, hard discount grocery store chain, as well as continuing to expand its wholesale distribution business to its more than 2,000 independent retailers nationwide.

About SUPERVALU INC. SUPERVALU INC. is one of the largest companies in the U.S. grocery channel with annual sales of approximately $37 billion. SUPERVALU serves customers across the United States through a network of approximately 4,300 stores composed of 1,104 traditional retail stores, including 798 in-store pharmacies; 1,309 hard-discount stores, of which 922 are operated by licensee owners; and 1,900 independent stores serviced primarily by the company's traditional food distribution business. SUPERVALU has approximately 135,000 employees. For more information about SUPERVALU visit www.supervalu.com.

For official company news and industry information follow us on Twitter at: www.twitter.com/supervaluPR

SOURCE: SUPERVALU INC.

SUPERVALU INC.

Media:

Mike Siemienas

952-828-4245

Mike.siemienas@supervalu.com

or

Investors:

Kenneth Levy

952-828-4540

kenneth.b.levy@supervalu.com

Navarre signs (NAVR) distribution agreement with Native Union

2012-02-07T03:44:00.000-08:00

Minneapolis, MN, Feb. 7, 2012 (GLOBE NEWSWIRE) -- Navarre, a distribution and logistics provider, announces a distribution agreement with Native Union. Native Union, the multi award-winning international design company famous for its line of POP Phones, is the de facto leader in the mobile device handset category. The company is defining the market with its line of products that reinvent the art of communication and is giving consumers entirely new ways to interact with their communications devices with easy-to-use and stylish designs. Native Union's design team consists of some of the brightest talents from around the world, including Michael Young of Britain and David Turpin and Fabien Nauroy of France.

"We are excited to work with Native Union. By providing reliable distribution services, we are able to get their fun, fashionable and trendy phone accessories to the shelf faster and that is what it's all about," said Joyce Fleck, President - Navarre Distribution Services, Inc. "The Pop Phone retro handset is a feel-good product and we are happy to be part of the process to get that in the hands of customers."
"As the original retro handset in the market, the POP Phone has reached mass appeal among everyone from tech-savvy fashion lovers to celebrities and designers," said John Brunner, managing director of Native Union. "We anticipate increased success of the product with Navarre's partnership in distribution and logistics."
ABOUT NAVARRE:
Navarre Distribution Services and Navarre Logistical Services are subsidiaries of Navarre Corporation (Nasdaq:NAVR - News) that together provide North American retailers and their suppliers with agile distribution and returns management, third-party logistics (3PL), online fulfillment and custom marketing programs, all powered by a best-in-class systems infrastructure and collaborative support teams. With a more than 25-year track record of connecting strong brands with smart logistics and unmatched service, the company helps its customers to pick, pack, ship and sell more profitably. Established in 1983, Navarre Corporation is headquartered in Minneapolis, MN and has offices in Bentonville, AR and Toronto, Ontario, Canada. Learn more at www.navarre.com.
ABOUT NATIVE UNION:
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SurModics may have to restate Q4, FY statements

2012-02-06T06:55:00.001-08:00

Gary Maharaj, President and CEO of SurModics, stated, "In the process of preparing our financial statements for the quarter ended December 31, 2011, management determined the need to reevaluate the application of GAAP related to our accounting treatment associated with the fourth quarter 2011 asset impairment charge and the subsequent sale of substantially all the assets of the Pharmaceuticals business. As a result, the Company may need to restate its financial statements for the fourth quarter and fiscal year ended September 30, 2011. While it is unfortunate that this reevaluation is causing a delay in the release of our financial results and earnings call, we stress the fact that any potential adjustments would be non-cash in nature related to the Pharmaceuticals business, and will not affect our results from continuing operations in the first quarter of 2012."

Short And Distort Campaign On ZAGG: Fighting The Ridiculous Rumors

2012-02-03T05:54:00.001-08:00

Story courtesy of SeekingAlpha.com, click here for the complete story.
This is a continuation of my article "Apple Pure Play: ZAGG poised for another 400% Bull Run." I will address the bear case while at the same time addressing the "short and distort" scheme on ZAGG. I am sure you can read between the lines.

As many know, there has been a "short and distort" scheme waged on ZAGG (ZAGG) for quite some time. Looking at the rumors that have been spread over the years gives a pretty clear picture of how shorts have attacked ZAGG. Shorts typically spread extremely negative rumors in order to make investors run for the exits and to prevent new investors from buying. Even if the rumors turn out to not be true, the shorts will not acknowledge the truth and move on to the next rumor. The rumors are spread from either shorts, short hedge funds, or third parties affiliated with the shorts. Short and distort schemes typically direct rumors in a few key categories, although just like with lies, the possibilities are endless.

The usual short rumors that are spread include: 1) accounting issues with the company or that the company is going bankrupt any day 2) Business is going off a cliff right now or the product is now obsolete or is getting rejected by all customers at the same exact time and 3) SEC investigation causing resignations and insiders fleeing. To add to the drama, the information usually comes from friendly people "with no interest" who are just "looking out." Somehow the rumors come from people that must have the best connections in the world as they know all the right experts, lawyers, analysts, insiders, competitors, distributors, relatives, etc.

Almost all of the time, the attacks are made on microcap companies that have less volume and are easier to control. All positives on the company are irrelevant to shorts. The short & distort scheme has numerous associates spreading vicous rumors through the media, blogs, and message boards in an attempt to drown out any bull message. The goal is to drive the price down any way they can. Hedge funds short high, employ short and distort, then cover at a much lower price, and then repeat on another company.

They can be spotted easily as the messages often include postings such as:

• "This is the biggest PoS I have ever seen"

• "Respected friend in finance industry says stock has many red flags"

• "I have inside information that recent acquisition was a disaster"

• "This stock is going to zero"

• "Experts say this is a shell company"

• "There are no earnings here, this is a pump and dump"

• "Fraud, Scam, Ponzi Scheme"

• "I have inside information the quarter was a disaster"

• "I have inside information that auditor is about to drop them"

• "Company is going to declare bankruptcy any day"

• "Friend says FBI is in their parking lot"

• "Expert industry friend says technology is worthless"

• "Consulted a lawyer that says...."

• "At investor conference, I heard people say....."

• "Know people affiliated with clinical trial that drug is a bust"

• "The product will never launch"

• "They are about to default on debt"

• "Insiders are about to dump all of their stock"

• "Expert says they will lose the big court case"

• "The store/restaurant/hotel is a ghost town"

The vast majority of these messages are from shorts trying to get the price down. When you read the list above, even you would laugh at how absurd these comments sound. For everyday investors or timid mutual fund managers, this can make them run to the exits. Why not? Some "friendly advisor" said the FBI was in the parking lot of the company HQ. Run for cover!

Currently, short and distort campaigns are not often prosecuted by the SEC, which gives free reign on spreading rumors. With ZAGG having over a 41% short interest at the end of last December, there is no way that a short and distort scheme is not happening in a small microcrap stock such as ZAGG. Some hedge funds specialize in this scheme. The following are the main ZAGG myths from recent short and distort campaigns that I will easily dispell:

"Worthless Pennies" myths:

Bad myth 1) He said he had inside knowledge that said Best Buy (BBY) was going to drop ZAGG numerous times since 2010. He also has hinted at massive sales returns at a moments notice from Best Buy. He also wrote in 2010 that said he had a friend that said ZAGG was kicked out of Target (TGT).

Reality: ZAGG obviously has not been dropped. In fact, Best Buy has expanded SKU counts and remains the strongest retail relationship of ZAGG. As ZAGG has entered other retailers, I hear this rumor less. Note that he says he was "quite friendly" with a former Best Buy Senior Exec. This guy seems to have great luck at getting the right contacts at the right time. Since 2010, ZAGG has not only remained in Target, but expanded the number of SKUs. It is funny how this guy has friends at Target too.

Food for thought: It is funny how the one public short (at the time) on ZAGG also happens to be the only one to have inside knowledge of the biggest customer dropping it. The bulls don't know. The bears don't know. But this guy does. Years later, this rumor looks ridiculous.

Bad myth 2) He said he knew someone who investigated the ZAGG distributor and found no ZAGG inventory a year ago. It was his expert witness. He said the facility had no ZAGG products. He is insinuating that the ZAGG inventory is in a "boiler room" warehouse. This is very similar to Chinese rumors of empty offices in China.

Reality: Inventory obviously does exist. ZAGG continues to grow its inventory as sales have doubled. Retailers get stocked on time. Inventory buildup is used support expanding SKU count. It is amazing that this bear has friends that are somehow able to tour facilities of companies he is shorting.

This is ironic because ZAGG eventually got criticized for having almost double the inventory despite doubling sales. In a December Benzinga interview with the CEO, it was pointed out that inventory actually decreased by 2 percent on a comparative inventory to sales basis.

On a year-over-year basis from the third quarter of 2011, ZAGG's inventories increased nearly 90% from $18 million to $34.1 million. However, revenue over the same timeframe has increased about 99% from $23.06 million to $45.89 million.

Bad myth 3) He said "Golden Shellback" was a big cover up "shellgame" in 2010. Hinted that the money was a payoff of some sort. In 2009, he said that parylene coating has been around and questioned why ZAGG had paid for the rights to it.

Reality: With CES 2012 demonstration and HZO launching in 2012 along with the reception in garnered, the "Golden Shellback" looks like it was a great acquisition. It was the foundation of the HZO company. There are ongoing talks with numerous major manufacturers. There has since been four different venture capital investments totaling over $10M into HZO. He didn't understand the differences in outside parylene coating and parylene coating with internal circuitry.

Bad myth 4) He said in 2010 he knew the earnings didn't really exist because the auditor was shady. When ZAGG moved on to KPMG, one of the big 4 auditor firms, he questioned the rationale and timing. He said in Jan 2010 that there was no way KMPG would sign off on the 10K with the scary article titled "KPMG Judgement Day." He said that the former auditor probably found something and refused to sign, and thus KPMG would find the same and drop them. In the final blow, he said ZAGG would then get delisted from the NASDAQ. He said it was about to go to pennies in March 2011.

Reality: ZAGG hired KMPG at the end of 2010 who signed off on the financial statements. ZAGG had a record year in 2010 that doubled revenue from the previous year. Plus, I probably don't have to tell you that ZAGG still trades on the NASDAQ. ZAGG went on to shoot up to $17 last summer before the recent pull back.

Bad myth 5) He said ZAGG keyboards were cheap and that nobody would buy them in 2010.

Reality: Since the report was written immediately after the ZAGGmate launch, keyboards have been a big development for ZAGG in 2011. In April 2011, ZAGG signed a deal with Logitech for the ZAGGmate keyboard. Additional keyboards have been launched in 2011. This has been the biggest success of ZAGG after the Invisible Shield.

Bad myth 5.5) He did some damage control on the day the big Logitech iPad keyboard deal was announced. He had to get creative. He said ZAGG had to deal to Logitech (LOGI) because it failed in sale hurdles and that the developer of the ZAGGmate really went straight to Logitech. He hints that ZAGG is cut out of the deal. He hints this is all about to become public.

Reality: ZAGG signed the deal with Logitech. The iPad keyboards are a big seller as indicated in the last couple Logitech conference calls. According to the last investor presentation, ZAGG hired the creator of the ZAGGmate who is now an employee of the company. You can also see him in some of the product video interviews.

Food for thought: Although none of his predictions on the ZAGG keyboard business came true, did he come out and take his comments back? Nope, he made something completely new up that was even more preposterous than the last. When that turned out as another lie, there was nothing but silence on the issue. For those that want some history to "Worthless Pennies'" worthless market analysis, you should also read his report in 2010 that says the iPad will be a zero sum game for Apple because it will cannibalize Mac and desktop sales. He thinks the boom in android tablets will dominate Apple like the 80s. Years later, and especially after looking at Apple's last quarter, this guy's predictions seem to be wrong no matter what company he writes about. Perhaps he does not have an expert friend in Cupertino.

Bad myth 6) As funny as it sounds now, he said at the end of 2010 that said iFrogz was a threat to ZAGG with iFrogz screen protectors.

Reality: This is pretty ironic since ZAGG acquired iFrogz in June 2011. As long as investors see the expanding ZAGG SKU count in retailers and no major competitor expanding, then we can rest assured the market position is solid. Retailers typically only expand SKU counts quarter after quarter if the product is selling well.

Food for thought: Do you think this short lives in New York City where there are not many major retailers (Wal-Mart (WMT), Target, Best Buy)? If he lived in any normal American town, he could see with his own eyes the expanding SKU counts. Does he think he can bank on other mutual fund managers not actually shopping in retail stores?

Bad myth 7) Although conflicting with his previous claim, he said ZAGG had too much raw materials (polyeurothane tape) in the spring of 2011. He stated that there were millions of feet of it and implied that it was never going to see the light of day.

Reality: The tape is the main material in making the invisible shield. The tape has to be cut and packaged. ZAGG purchases in large quantities in order to get a quantity discount. As a result, ZAGG sold 15 million invisible shields in 2011 alone. This was more than their entire company history combined. As ZAGG sells more invisible shields each year, expect raw materials to go up. If someday raw materials was going up and sales was going down, then that would be a red flag.

Food for thought: How else does he think ZAGG could double sales each year in a retail product business without increasing inventory? If inventory (and probably things like account receivables) did not grow but sales did for retail products, that would probably be the red flag. Inventory growing roughly the same rate of sales is generally a good thing in retail.

Bad myth 8) Back in December 2010, he said that ZAGG was a pump and dump. Like with most shorts, he pounced on an insider sell as the signal that the dump was in. He said ZAGG was going to go to pennies.

Reality: I could copy the stock chart, but I think everyone knows that ZAGG is not a pump and dump. It is a real company with growing earnings each year. It has a real accounting firm. The price is currently around $9 per share. Pump and dumps usually occur in the OTC market. Pump and dumps usually happen from anywhere between a few days to a few months. ZAGG has been increasing earnings for the last 5 years.

Bad myth 9) He said the CEO was essentially a cheesy pitchman like Billy Mays trying to sell a worthless product. Additionally, "Worthless Pennies" wrote a long article in October 2010 taking aim at the ZAGG patent application. Essentially, he says the lawsuit from Andrew Mason and the spray/squeegee kit will have huge detrimental effect to ZAGG. He actually goes as far as pumps the virtue of the Mason patent and how close it is to the process of installing screen covers. He almost implies the installation kit is like the secret sauce behind the Invisible Shield's success. Like with his other research, he had an expert, this time a lawyer to look at the patent. He says that the lawsuit would cost tens of millions in "historical fines" and cause a recurring royalty. It almost sounds like the end of the world for the company, right?

Reality: I did get a good laugh when he compared Robert Pederson's pitch style to Billy Mays, because if you have seen videos of him (college lecture and investor conferences) his enthusiasm does make him seem very optimistic. With the results ZAGG has produced since its inception, and the market potential in the future, I can totally see why. I would be thrilled if my company was riding high on the coat tails of the largest company in the world at the center at one of the largest technological revolutions ever. I have to note though, he has toned it down with his appearance on CNBC last summer and then on Mad Money with Jim Cramer in October.

As for the "end of the world" scenario that was described, the lawsuit was dropped against ZAGG when it acquired Andrew Mason's patent with stock. Andrew Mason essentially received stock options with additional incentives if ZAGG wins in further lawsuits. ZAGG turned the lawsuit against its competitors. As the final blow against the argument, ZAGG was granted its own exclusive patent on wrapping electronic devices in the summer of 2011. The combination of these patents are deadly to competitors. ZAGG already has had competitors settle.

Food for thought: Since "Worthless Pennies" had his expert lawyer say that with the Mason patent all screen protector companies would be crippled in fines and royalties, why does he not think it would now be a huge advantage to ZAGG now that it owns the patent? How about combining this with the patent that he never thought ZAGG would receive in wrapping electronic devices?

Bad myth 10) Back in the summer of 2010, he came out with an article saying that investors should get out of ZAGG because the Invisible Shield is a commodity product. Like with bears today, he hinted that competition was about to make sales collapse at ZAGG.

Reality: "Worthless Pennies" had extremely bad timing as this prediction was made also during the full iPhone 4 launch quarter. Up to that time, it was the biggest quarter in ZAGG history. ZAGG sales continued to shoot higher after the prediction. I did see that he did not repeat his mistake during the recent iPhone 4S launch quarter although he did have some gripes on ZAGG sales promotions recently.

"Roddy Boyd" article myths:

Ok Info 1) He did have some interesting information on the reverse merger history 5 years ago when ZAGG only made $5M a year (compared to over $175M in 2011). Interesting read, but at the same time it actually highlights the exponential growth of ZAGG. Since the report, ZAGG has doubled its growth again. This seems equivalent to saying that Apple once started in a garage and had little to no revenue at one point. Somehow, early beginning stories are controversial. ZAGG actually started out a guy's garage trying to protect his watch.

Ok Info 2) When ZAGG was much smaller they were seeking new investors. Frankly, this is what most small companies do when starting out. They might have hired Mr. Cassell and Mr. Davidson to help promote the stock in 2008 and part of 2009. I really don't know, nor does it make a difference to me based on the company performance since then. Additionally, I also know ZAGG used Redchip to help promote the stock. Brokerage houses essentially do this during initial public offerings. This can be looked at a couple ways.

Back in 2008, ZAGG had just grown from $5 million in annual revenues to $19 million. People were skeptical about the business for many of the reasons current bears are skeptical. They were afraid the business might peak or competition would take them out. Zagg did not own any patents back then. ZAGG had just gone from selling exclusively online to placing some SKUs in Best Buy.

The relatively young CEO stated his goal was to create a billion dollar business in ZAGG. If ZAGG earnings and revenue indeed had peaked and crashed, then I would agree with Mr.Boyd. However, since then ZAGG has continued to double its revenues year after year. ZAGG has diversified product offerings in keyboards, power chargers, more advanced Invisible Shields and protective coverings. ZAGG acquired iFrogz and sells cases and audio accessories. Annual revenue is now over $175 million. With that performance record, I have to side with bulls on ZAGG. Even Microsoft (MSFT) was once small. One of the big regrets of Ross Perot was turning down investing in tiny Microsoft when a scruffy Bill Gates went to see him. Most companies start out from nothing.

Bad myth 1) He predicted new auditor KPMG was going "find stuff' and force write downs.

Reality: In March 2011, the ZAGG annual report was signed off by KMPG and filed to the SEC. There has not been any significant inventory writedowns since the report.

Bad myth 2) He predicted competition was going to destroy ZAGG in 2011.

Reality: ZAGG experienced record sales in subsequent quarters. The iPad 2 Invisible Shields and keyboards were huge sellers for ZAGG. ZAGG received a US patent for wrapping electronic devices in film. No major competitor has been able to emerge besides Belkin in Target. ZAGG sold more Invisible Shields in 2011 (15 million units) than they have in their entire history combined. Zagg is entering 2012 with many catalysts as described in previous article. 2012 is the year of the iPad 3 and the iPhone 5.

Bad myth 3) He focuses substantial time on friends of ZAGG executives. It reads like an expose in the national enquirer and not fundamental analysis of a company.

Reality: It appears as though a $500K marketing deal went sour in 2008. In light of the exponential sales in 2011, this doesn't seem like it had any impact. There is also mention of a friend of the CEO that had to settle with the SEC a few years ago. It is always a pretty effective bear method to insight fear by mentioning the SEC, but if the person in question is not an executive nor employed by ZAGG, I found this to be a mute point. This is like saying Mark Zuckerberg once designed websites for a guy who defrauded people in a wood chip enterprise. Attacking a company by attacking friends of executives? Does anyone believe any of this?

Bad myth 4) He contends that ZAGG would have looked more legitimate if it had an IPO.

Reality: Reverse mergers typically do have a stink on it. Typically though, the stink has to do with Chinese companies that try to circumvent the listing process. The Chinese companies have headquarters in countries like the Cayman Islands. The Chinese insiders don't live in the US and can't be prosecuted. If ZAGG went public the traditional way, it would probably still be private. It would have been significantly harder to do acquisitions since iFrogz was bough with half stock. ZAGG is a US company with one of the major 4 accounting firms auditing them and has doubled revenues annually the last 5 years. ZAGG executives live in the United States.

"Citron Research" article myths:

Good Info 1) Just like Mr.Boyd, Citron pounced on failure of ZAGGbox and resignation of a director. Overall, the Citron bear article seems a little more well written than most bear pieces. The ZAGGbox was a big failure. A director was essentially fired over the whole thing. It was a bad business decision, although ZAGG limited their risk with the project by taking small steps with it and not banking its future on it. ZAGG only spent $4M to license the technology (against real estate collateral) and placed a small initial order. The R&D alone was $35 million from the manufacturer so the development work had already been done. ZAGG tried to market it but there was no demand for a $1000+ set top box. By only investing a a few million (against real estate collateral) ZAGG is actually significantly more prudent investors than Citron gives it credit for.

Good Info 2) Citron pounced on business mistakes before ZAGG was listed on the Nasdaq and traded OTC. When I read the article, I did not remember the "Rockstix" in 2008. It was only out one season which makes me think it was not very profitable. I don't know if it was actually sold in a store or just online. It could also just have been marginally profitable or break even. It is hard for me to tell. ZAGG was a much smaller company with little retail space unlike today. This was 4 years ago. ZAGG was barely in Best Buy. Since I argue that successful products typically expand SKU counts over numerous quarters and years, I will side with Citron's take.

Good Info 3) Citron pounced on Appspace not becoming the "Myspace of apps." I remember it launching a few years ago but the site did not take off despite the app market exploding. The idea of playing the smartphone revolution was in the right place. ZAGG had no chance against iTunes. Good information though, because it failed in such a way that I even forgot about it. ZAGG quietly closed the Appspace effort like many companies do with failed plans. ZAGG did not invest much money into this venture. It was a failure, nonetheless.

Bad myth 1) Citron said the ZAGGsparq was a failed product since 2009.

Reality: The ZAGGsparq keeps expanding by selling online and going into RadioShack (RSH) last quarter as well as AT&T (T) this past week. I have to say this is at least a mild success. If it enters Best Buy or Target, then this would be a big success. With a $99 price point, a continued nation wide expansion of this power accessory would be huge to ZAGG. Along with having bought 6 different Invisible Shields, I have bought 2 ZAGGsparqs. They are really good for the iPhone and iPad. It is great for hiking trips or flying on the airplane. It makes me look forward to the ZAGGsparqcase. With rumors on the iPhone 5 being held up last year due to battery technology, I think ZAGG is focusing on the right areas.

Bad myth 2) Citron said iFrogz numbers were going to show bad stuff last summer. The numbers had not been released at the time of the buyout. It was actually understandable at the time although they questioned it weeks after the acquisition was announced. No company would have had the numbers out at that time.

Reality: Since then, full disclosure on iFrogz operations have been made in quarterly filings. In fact, some tax advantages from the acquisition was highlighted. ZAGG was able to depreciate the iFrogz inventory over 4 months (as impacted in the 3rd quarter EPS). ZAGG actually seperates iFrogz revenue out for transparency. We also found out that it takes around 4 months for iFrogz to fully sell through all of its inventory.

Bad myth 3) Like other shorts, Citron said waterproofing technology is a failure. The "Golden Shellback" technology had been bought and up to that time nothing had come to the market.

Reality: (or perhaps TBD to extreme skeptics who don't want to believe CES 2012 media): ZAGG had initially focused efforts on creating a product to sell straight to the consumer. With the cost of the vacuum chamber at $500 thousand dollars, ZAGG decided it was not economical to push HZO that way. They also did not want to void manufacture warranty.

They decided to negotiate with manufacturers to incorporate the HZO technology when devices are assembled. CES 2012 highlighted the interest in HZO. As I have said before, I think deals have already been signed and non-disclosures are holding back announcements. Even the biggest skeptic would have to admit HZO is a game changer for ZAGG after the first deal announcement with a major manufacturer.

Bad myth 4) Citron questioned the cash flow last summer. There were a couple negative cash flow quarters as ZAGG ramped up for the iPad 2. Citron painted a picture of stagnant sales and inventory piling up.

Reality: In order for sales to double each year, ZAGG keeps reinvesting into more product inventory to support SKU expansion. ZAGG has been cash flow positive since silencing the "cash flow" complaint. ZAGG has indicated that it will continue to be cash flow positive.

Bad myth 5) Citron hinted at an imminent PIPE last summer. Citron implied that was the point of the acquisition of iFrogz.

Reality: A PIPE did not happen. Like with most public companies, ZAGG does have an employee stock option plan, which could cause a little share dilution when exercised.

Bad myth 6) Citron took a point from "Worthless Pennies" and insinuated that Best Buy is going decide one day to return all products to ZAGG and stop buying from them.

Reality: This myth has been making its way around the message boards and bear articles a couple years. The relationship with Best Buy remains stronger than ever. Channel checks in Best Buy showed that there was full inventory turnover. Newer packaging on most invisible shield SKUs at Best Buy were displayed in the last quarter. Staples continues to have some of the older SKUs though. Target has entirely new SKUs. Radioshack has some older SKUs only for the iPod nano.

It only took less than 4 months to have complete sell through in iFrogz inventory. Best Buy has recently added the Invisible Shield HD. Best Buy picked up leatherskins, ZAGGwipes, ZAGGfoam, and the Logitech keyboard by ZAGG. Target and other retailers picked up many of these ZAGG products as well. As ZAGG has expanded into most of the cell phone carriers and retailers, this rumor has less impact each month. It is a classic rumor in the true short and distort sense. If this was a biotech company, the rumor would be the FDA is stopping the selling of a certain blockbuster drug and somehow, someway the shorts have knowledge of it.

Summary:

Overall, "Worthless Pennies" is probably a paid basher of some sort or had a short position that turned sour. This is the type of character probably to be found on clogging up internet message boards all day long. He probably has numerous names. The fears written are always wrong. Roddy Boyd seems to be better, however, besides some company history the major claims are usually wrong as well. His article might have been most effective back in 2008 when ZAGG traded OTC.

Citron is probably the best of them as I think it can do some pretty good research. Some of the Chinese reports have convinced me of its view on companies I know little about. I can't translate Chinese effectively. Seeing a picture of an empty office in China would get me scared. I don't shop there, so how would I know? On ZAGG, the Citron report looks poor in the face of facts. Citron mostly supports the bearish view in a company I now know thoroughly. The Citron article is not balanced in any way as it is extremely biased to the downside. Like with many shorts, it blatently ignores all positives on the company. It turns a blind eye to the bull case. It ignores ZAGG continuing to perform well each and every year as if it never happened. You have to question the motives of any article that has all negatives and no positives or vice versa.

I at least try to address the bear points of view. I am up front in saying I am long the stock. I most recently have been long since the end of December (double bottom reversal signal). All companies have strengths and weaknesses as well as opportunities and threats. If any of you have any real logical bear arguments that I have missed, please post it in the comment section and I will do my best to address it. (It might take a few days to research though).

Citron probably has the most success when it focuses on Chinese companies that Americans have little access to read or dispute information. If this was China, Americans (and mutual fund managers) couldn't walk into the stores and see SKU expansion. They would not use the products. They would not see it on every other iPad. They couldn't tell if people were buying it or not. They couldn't ask what their friends thought about a product. They might not know a major technological revolution is changing the way humans live in a country. Unfortunately for Citron, there is a plethora of information and financial analysis to support the argument that ZAGG is extremely well positioned to take advantage of the mobile revolution.

I hope investors can now separate fact from fiction in regards to ZAGG.

In my next article on ZAGG, I will highlight some exciting developments that I don't think anyone is factoring in yet. I did not have room to mention it in my last article. I will include pictures for those that live in New York City and don't have a chance to actually experience real American retail. Any remaining doubters will witness the competitive advantage that ZAGG has.

Disclosure: I am long ZAGG.

SurModics Announces Preliminary First Quarter 2012 Results

2012-02-03T03:56:00.001-08:00

EDEN PRAIRIE, Minnesota--(BUSINESS WIRE)--
SurModics, Inc. (Nasdaq:SRDX - News), a leading provider of surface modification technologies to the healthcare industry, announced today unaudited preliminary results for the first quarter of fiscal 2012.
NOTE: Unless otherwise noted financial information presented, including our fiscal 2012 outlook excludes the discontinued operations of the Pharmaceuticals business. As a reminder, substantially all of the Pharmaceuticals assets were sold on November 17, 2011.
Gary Maharaj, President and Chief Executive Officer of SurModics, stated, "In the process of preparing our financial statements for the quarter ended December 31, 2011, management determined the need to reevaluate the application of GAAP related to our accounting treatment associated with the fourth quarter 2011 asset impairment charge and the subsequent sale of substantially all the assets of the Pharmaceuticals business. As a result, the Company may need to restate its financial statements for the fourth quarter and fiscal year ended September 30, 2011. While it is unfortunate that this reevaluation is causing a delay in the release of our financial results and earnings call, we stress the fact that any potential adjustments would be non-cash in nature related to the Pharmaceuticals business, and will not affect our results from continuing operations in the first quarter of 2012. The Company plans to publish first quarter results and hold an earnings call as soon as practical following the completion of this reevaluation.”
Preliminary Q1 FY 2012 Results
On a GAAP basis, revenue from continuing operations for the first quarter totaled $11.9 million, a 5% decline from the $12.5 million reported in the first quarter of last year. Results for the first quarter were impacted by a $2.0 million decline in royalty revenue associated with Cypher and Cypher Select Plus drug eluting stents. As previously disclosed, Cordis announced that it would cease the manufacture of these products by the end of calendar year 2011. Excluding the impact of Cypher, revenue increased 14% from last year.
Diluted earnings per share from continuing operations was $0.12 for the first quarter compared with diluted earnings per share of $0.16 for the same period last year. Excluding the impact of Cypher, qualified therapeutic grant income and one-time charges, revenue increased 14% last year and diluted earnings per share in the first quarter was $0.11 compared to diluted earnings per share of $0.08 last year.
Preliminary Medical Device Q1 FY 2012 Highlights
On a GAAP basis, revenue for the Medical Device business unit, which includes hydrophilic coatings and device drug delivery technologies, was $8.9 million, down 10% from the prior year period. First quarter results include hydrophilic coating revenue of $8.2 million, representing 8% growth compared with the year ago period. Excluding the impact of Cypher, Medical Device revenue grew 14% from the year ago period.
Medical Device generated $3.9 million of operating income during the quarter, a 32% decline from last year. Excluding Cypher and the first quarter 2011 therapeutic grant income, Medical Device operating income grew 24% from the year ago period.
Preliminary In Vitro Diagnostic Q1 FY 2012 Highlights
For the first quarter, In Vitro Diagnostic sales of $3.0 million grew 13% compared with the first quarter of fiscal 2011. The In Vitro Diagnostic business unit generated $0.9 million of operating income during the quarter, a 23% increase from the year ago period.
Fiscal 2012 Outlook
SurModics reaffirms its previously stated revenue and earnings per share outlook for fiscal 2012. The Company expects full-year GAAP revenue from continuing operations to be in the range of $47 million to $51 million. GAAP diluted earnings per share from continuing operations are expected to be in the range of $0.45 per share to $0.53 per share. The outlook is based upon a diluted share count of 17.6 million shares.
Conference Call
The Company has postponed its previously scheduled conference call this afternoon, and will announce the rescheduled date and time as soon as practical following the completion of the reevaluation of the accounting treatment for the fourth quarter Pharmaceuticals asset impairment charge.
About SurModics, Inc.
SurModics’ vision is to extend and improve the lives of patients through technology innovation. The Company partners with the world’s foremost medical device, pharmaceutical and life science companies to develop and commercialize innovative products that result in improved diagnosis and treatment for patients. Core offerings include: surface modification coating technologies that impart lubricity, prohealing, and biocompatibility capabilities; and components for in vitro diagnostic test kits and specialized surfaces for cell culture and microarrays. SurModics is headquartered in Eden Prairie, Minnesota. For more information about the Company, visit www.surmodics.com. The content of SurModics’ website is not part of this release or part of any filings the Company makes with the SEC.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations regarding our ability to return to sustainable, long-term profitability, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including (1) our reliance on third parties (including our customers and licensees) and their failure to successfully develop, obtain regulatory approval for, market and sell products incorporating our technologies may adversely affect our business operations, our ability to realize the full potential of our pipeline, and our ability to achieve our corporate goals; and (2) the factors identified under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2011, and updated in our subsequent reports filed with the SEC. These reports are available in the Investors section of our website at www.surmodics.com and at the SEC website at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, SurModics is reporting non-GAAP financial results including non-GAAP revenue, non-GAAP operating income, non-GAAP net income and non-GAAP diluted net income per share. We believe that these non-GAAP measures provide meaningful insight into our operating performance excluding certain event-specific charges, and provide an alternative perspective of our results of operations. We use non-GAAP measures, including those set forth in this release, to assess our operating performance and to determine payout under our executive compensation programs. We believe that presentation of certain non-GAAP measures allows investors to review our results of operations from the same perspective as management and our board of directors and facilitates comparisons of our current results of operations. The method we use to produce non-GAAP results is not in accordance with GAAP and may differ from the methods used by other companies. Non-GAAP results should not be regarded as a substitute for corresponding GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures presented should be viewed in conjunction with both our financial statements prepared in accordance with GAAP and the reconciliation of the supplemental non-GAAP financial measures to the comparable GAAP results provided for the specific periods presented, which are attached to this release.

MoneyGram International Reports Fourth Quarter, Full-Year 2011 Financial Results

2012-02-03T03:55:00.001-08:00

DALLAS--(BUSINESS WIRE)--
MoneyGram International, Inc. (NYSE:MGI - News), a leading global payment services company, today reported financial results for the fourth quarter and full-year 2011.

On both a constant currency and reported basis, money transfer fee and other revenue increased 11 percent in the fourth quarter of 2011 over the fourth quarter of 2010.
Money transfer transaction volume in the fourth quarter of 2011 increased 13 percent over the prior year, led by U.S.-to-U.S. transaction volume growth of 15 percent and sends originated outside of the U.S. growth of 14 percent. U.S. outbound transaction volume increased 10 percent on the strength of U.S.-to-Mexico growth of 15 percent.
Global agent locations increased to 267,000, a strong 18 percent growth over 2010.
Total revenue in the fourth quarter increased 6 percent to $321.8 million, compared with $303.4 million in the fourth quarter of 2010. Total fee and other revenue increased 7 percent to $318.8 million, from $298.3 million.
Total revenue for the full-year 2011 increased 7 percent to $1,247.8 million, up from $1,166.7 million in 2010. Total fee and other revenue for the full-year 2011 was $1,230.9 million, up 8 percent from $1,145.3 million in 2010.
The company reported net income for the quarter of $3.1 million and EBITDA of $22.0 million. Both net income and EBITDA for the fourth quarter of 2011 were primarily impacted by:
- $32.3 million of debt extinguishment loss
- $6.2 million of restructuring and reorganization costs
- $4.1 million of stock-based compensation
Adjusted EBITDA for the fourth quarter increased 12 percent to $67.2 million from $59.8 million in the prior year. Adjusted EBITDA margin in the fourth quarter of 2011 was 20.9 percent, up from 19.7 percent in the same period last year.
Diluted income per common share was $0.04 in the fourth quarter of 2011, including a negative $0.28 per share impact from the loss on debt extinguishment.

“We are very pleased with our accomplishments in 2011. For the year we achieved double-digit growth in money transfer transaction volume, constant currency revenue, and agent locations. Our impressive performance was achieved while we recapitalized our preferred shares, nearly doubled our public float, and reduced our second lien debt by $175 million,” said Pamela H. Patsley, chairman and chief executive officer. “We are optimistic about 2012 and while we are mindful of the economic challenges in Europe, our business is geographically diverse. We have great momentum in our money transfer business and continue to leverage the core as we expand into online, account-based, mobile and self-service offerings. We will utilize our strong cash flow to invest in the business and maximize shareholder value.”
Capital Market Activities
During the quarter, MoneyGram completed its underwritten secondary public offering of MoneyGram's common stock, by affiliates and co-investors of Thomas H. Lee Partners, L.P. and affiliates of Goldman, Sachs & Co. for an aggregate of 10.2 million shares at a public offering price of $16.25 per share.
Also in the quarter, MoneyGram made a partial redemption of its 13.25% Senior Secured Second Lien Notes due in 2018, held by affiliates of Goldman, Sachs & Co, in a principal amount of $175 million at a redemption price of 113.25%. MoneyGram financed this redemption with a combination of cash and $150 million in borrowings under its new incremental credit facility, provided by a syndicate of lenders, which is additive to the First Lien Senior Credit Facility currently outstanding.
Balance Sheet Items
MoneyGram ended the fourth quarter of 2011 with assets in excess of payment service obligations of $211.7 million, and outstanding debt principal of $814.6 million. Interest expense for the year decreased $16.0 million from prior year as result of continued delevering and refinancing activities in 2011.
Market Developments
MoneyGram continues to grow globally through geographic diversification and enhanced service offerings.

Expansion during the quarter targeted key developing markets including the addition of:
- 4,000 locations added in the Russian Federation, Eastern Europe and the CIS including Ochadbank, EcoslamikBank, Fonobank and Bank Rushdi, and Unibank
- 2,000 additional locations in Latin America including BTS, Scotiabank and Farmacias Esquivar
- 1,000 locations added in Africa including Wema Bank, BIMAO, and United Bank of Africa
- 1,000 additional locations in the Indian subcontinent bringing MoneyGram to 45,000 locations in the region
- The launch of the PO Bulgaria network
Enhanced service and new channel offering revenue grew 61 percent and represented 4.2 percent of money transfer revenue. Highlights include:
- Introduction of cash-to-account service offerings with ICBC in China and VTB bank in Ukraine, and signed an agreement with Banco Rendimento in Brazil to enable cash-to-account for all banks in Brazil
- Annual revenue and transaction growth in excess of 30 percent for MoneyGram Online
- Launch of a co-branded website for money transfers with Walmart.com
- New currency expansion including sends and receives in Malaysian Ringgitt and multi-currency receives in China
- Expansion of remittance services for Mozido mobile wallets

Global Funds Transfer Segment Results
Total revenue for the Global Funds Transfer segment was $300.2 million in the fourth quarter of 2011, up 8 percent from $276.7 million in the fourth quarter of 2010. The segment reported operating income of $33.4 million and an operating margin of 11.1 percent in the fourth quarter of 2011. Adjusted operating margin was 14.0 percent in the quarter, up from 11.9 percent in the prior year’s quarter.
During the fourth quarter of 2011, money transfer transaction volume increased a healthy 13 percent. Money transfer fee and other revenue increased 11 percent to $273.3 million compared with $246.2 million in the fourth quarter of 2010. On a constant currency basis, money transfer fee and other revenue increased 11 percent.
Money transfer transactions originating outside of the U.S. increased a robust 14 percent in the fourth quarter of 2011 over the prior year. U.S.-to-U.S. money transfer transaction volume continued its strong growth, increasing 15 percent. U.S. outbound transaction volume growth was 10 percent for the quarter. The U.S.-to-Mexico transaction volume growth rate accelerated for the ninth consecutive quarter reporting 15 percent growth over the prior year fourth quarter.
Bill payment transaction volume decreased 9 percent, while fee and other revenue decreased 12 percent to $26.7 million in the fourth quarter of 2011 from $30.4 million in the fourth quarter of 2010. Excluding divestitures, fee and other revenue declined 7 percent while transactions declined 2 percent.
Financial Paper Products Segment Results
Total revenue in the Financial Paper Products segment declined 18 percent to $21.3 million in the fourth quarter of 2011, from $26.0 million in the fourth quarter of 2010. Operating income was $5.9 million in the fourth quarter of 2011 down from $8.6 million in the fourth quarter of 2010. Operating margin in the fourth quarter of 2011 was 27.7 percent. Adjusted operating margin was 33.3 percent in the quarter down from 36.1 percent in the same period last year. Segment margin continues to be negatively impacted by declining investment revenue.
Outlook
For the fiscal year 2012, management is estimating total revenue growth of 7 percent to 9 percent and adjusted EBITDA growth of 9 percent to 11 percent consistent with its long-term management targets.
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, including a presentation of EBITDA (earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization), Adjusted EBITDA (EBITDA adjusted for significant items) and Adjusted EBITDA margin. In addition, we also present Adjusted operating income and Adjusted operating margin for our two reporting segments. The following tables include a full reconciliation of these non-GAAP financial measures to the related GAAP financial measures.
We believe that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations, including our ability to service debt and fund capital expenditures, acquisitions and operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the operating performance and value of companies within our industry. In addition, the Company’s debt agreements require compliance with financial measures based on EBITDA and Adjusted EBITDA. Finally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are financial measures used by management in reviewing results of operations, forecasting, assessing cash flow and capital, allocating resources and establishing employee incentive programs. Although MoneyGram believes the above non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures.

C.H. Robinson upgraded to Strong Buy from Market Perform at Raymond James

2012-02-02T16:20:00.001-08:00

Digital River Reports Fourth Quarter and Full Year 2011 Financial Results

2012-02-02T13:10:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- Digital River, Inc. (NASDAQ: DRIV), the revenue growth experts in global cloud commerce, reports its fourth quarter and full year 2011 financial results.

Fourth Quarter and Full Year Ended Dec. 31, 2011, Financial Results

GAAP Results

Fourth quarter 2011 revenue totaled $112.0 million, exceeding management’s guidance of $103 to $105 million. In the fourth quarter of 2010, revenue was $97.7 million.

For the full year 2011, revenue was $398.1 million, exceeding management’s guidance of $389 to $391 million. In 2010, revenue was $363.2 million.

Fourth quarter GAAP net income was $4.3 million, or $0.12 per diluted share, which compared to GAAP net income of $5.4 million, or $0.14 per diluted share, in the fourth quarter of 2010. These results were below management’s fourth quarter guidance for net income of $0.18 to $0.21 per diluted share driven by $9.4 million of one-time non-cash impairments recorded in the quarter. These impairments primarily related to the reduction in the book carrying values of intangibles, including certain customer relationship, trade name and non-compete agreements.

For the full year 2011, GAAP net income was $17.2 million, or $0.46 per diluted share, and compared to GAAP net income of $15.7 million, or $0.41 per diluted share, during the same period in 2010. These results were below management’s full year 2011 guidance of $0.52 to $0.55 per diluted share, due to the aforementioned impairment charge.

Non-GAAP Results

Fourth quarter 2011 non-GAAP net income was $17.7 million, or $0.45 per diluted share. This compared to non-GAAP net income of $12.7 million, or $0.32 per diluted share, in the fourth quarter of 2010. These results exceeded management’s fourth quarter earnings guidance of $0.32 to $0.35 per diluted share.

For the full year 2011, non-GAAP net income was $45.6 million, or $1.15 per diluted share, and compared to non-GAAP net income of $36.7 million, or $0.95 per diluted share, during the same period in 2010. These results exceeded management’s full year 2011 guidance of $1.03 to $1.06 per diluted share.

“I am pleased to report that we ended 2011 on a high note, delivering the highest quarterly revenue in the history of the company and beating our fourth quarter non-GAAP earnings guidance,” said Joel Ronning, Digital River’s CEO. “This year, innovation and product development will be major themes inside Digital River. We have several solutions we intend to deliver in 2012, including an expanded cloud-based subscriptions offering. Our company and clients’ goals are clearly aligned – we are both focused on growing online revenue.”

On Sept. 7, 2011, management announced a $100 million share repurchase program. During the fourth quarter, the company repurchased $29.7 million of common stock, or 1.9 million shares at an average price of $15.41 per share. For the year, the company repurchased $79.8 million of common stock, or 4.3 million shares at an average price of $18.70 per share.

First Quarter 2012 Guidance

Revenue in the range of $99 to $101 million;

GAAP diluted earnings per share in the range of $0.09 to $0.13;

Non-GAAP diluted earnings per share in the range of $0.27 to $0.30; and

A tax rate of 21 percent for both GAAP and non-GAAP earnings.

Full Year 2012 Guidance

Revenue in the range of $402 to $409 million;

GAAP diluted earnings per share in the range of $0.54 to $0.64;

Non-GAAP diluted earnings per share in the range of $1.20 to $1.28; and

A tax rate of 21 percent for both GAAP and non-GAAP earnings.

A detailed table providing a reconciliation of the company’s GAAP and non-GAAP earnings guidance estimates can be found accompanying this press release.

Digital River will hold a conference call today at 4:45 p.m. EST to discuss fourth quarter and full year financial results. A live webcast of Digital River’s earnings conference call can be accessed on the Investor Relations section of its corporate website. Alternatively, a live broadcast of the call may be heard by using conference ID #38649790 and dialing (877) 303-3145 inside the United States or Canada, or by calling +1 (408) 427-3861 from international locations. A webcast replay of the call will be archived on Digital River’s corporate website.

About Digital River, Inc.

Digital River, Inc., the revenue growth experts in global cloud commerce, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running a global commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.

Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website, call +1 952-253-1234, or follow the company on Twitter.

Non-GAAP Net Income Calculation

Digital River’s non-GAAP net income is computed by adjusting GAAP pre-tax income as reported on the company’s statement of operations by adding back amortization of acquisition-related intangibles, stock-based compensation expense, intangible impairments, unrealized investment gain or loss and restructuring costs, net of a 21 percent tax rate. Non-GAAP diluted earnings per share is calculated using the “if-converted” method with respect to the issuance of the company’s 2004 and 2010 convertible notes, which includes shares reserved upon conversion of 199,828 and 7,022,027, respectively. In computing non-GAAP diluted earnings per share, adjust non-GAAP net income to add back debt interest and issuance cost amortization expenses, net of the tax benefit, and then divide this amount by fully diluted shares outstanding. This amount, representing the fully diluted earnings computation, is selected to represent non-GAAP diluted earnings per share for each period presented. To provide further clarity, a detailed reconciliation on the comparability of the GAAP and non-GAAP data has been provided in table form following the financial statements accompanying this release.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the company’s anticipated future growth, including future financial performance, as well as statements containing the words “anticipates,” “believes,” “plans,” “will,” “expects,” or “guidance” and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others: the company’s operating history and variability of operating results; competition in the commerce market; challenges associated with international expansion; the variability of foreign exchange rates; any breach or compromise of the company’s security systems; our ability to successfully manage our business while undertaking significant internal investments; our ability to execute upon our payments strategy and expand our business in this sector; our ability to achieve favorable tax rates in our international operations; and other risk factors referenced in the company’s public filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended Dec. 31, 2010. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Digital River’s most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time-to-time.

The forward-looking statements for the remainder of fiscal 2012 reflect management’s expectations as of Feb. 2, 2012. Results may be materially affected by many factors, such as changes in global conditions in the financial services markets and consumer spending, fluctuations in foreign currency rates, the rate of growth of online commerce and the Internet, progress with key partners and other factors. The guidance assumes, among other things, that there are no changes to stock-based compensation expense and anticipated tax rates. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.

Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.

Target's revenue at stores open at least a year up 4.3 pct in January, tops Wall Street's view

2012-02-02T06:20:00.001-08:00

MINNEAPOLIS (AP) -- Target Corp.'s revenue at stores open at least a year rose 4.3 percent in January, easily topping Wall Street's expectations and sending its stock higher in premarket dealings.

The discount chain said Thursday that sales were strong throughout the month across the U.S.

Analysts surveyed by Thomson Reuters expected a smaller 2.1 percent increase in the figure.

Revenue at stores open at least a year is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.

Its stock gained $1.08, or 2.1 percent, to $52.50 in premarket trading.

Target said that total revenue for the four weeks ended Jan. 28 rose 5.1 percent to $4.61 billion.

"January sales were near the high end of our expected low to mid single-digit range, reflecting strong performance in both discretionary and non-discretionary categories," Chairman, President and CEO Gregg Steinhafel said in a statement.

The company said in a recording that some of its strongest performers were shoes, health care products and boys' and girls' clothing. Some of the weaker categories included electronics and books.

Target, which is based in Minneapolis, said year-to-date revenue at stores open at least a year rose 3 percent, with total revenue up 4.1 percent to $68.47 billion.

For the quarter to date, revenue at stores open at least a year increased 2.2 percent. Total revenue gained 3.3 percent to $20.94 billion.

Last month Target announced that it will team up with unique specialty shops to offer limited edition merchandise. It also confirmed reports that it will test expanded displays of Apple products in 25 stores.

Target runs 1,763 stores in the U.S. It plans to open its first stores in Canada next year.

Target Announces Agreement with Fairweather Ltd.

2012-02-01T08:03:00.001-08:00

MINNEAPOLIS, Feb. 1, 2012 /CNW/ - Target Corporation (NYSE: TGT - News) announced today that it has reached an agreement with Fairweather Ltd, International Clothiers Inc. and Les Ailes de la Mode Incorporées regarding naming and branding rights in Canada. Under the agreement Fairweather, International Clothiers and Les Ailes have agreed to cease use of the TARGET mark by Jan. 31, 2013. This agreement will eliminate any potential confusion among Canadian consumers regarding Target Corporation's branding elements, store experience and merchandise assortments as it opens its first stores in Canada in 2013. No additional details of the agreement will be disclosed.

About Target

Minneapolis-based Target Corporation (NYSE:TGT - News) serves guests at 1,763 stores across the United States and at Target.com. The company plans to open its first stores in Canada in 2013. In addition, the company operates a credit card segment that offers branded proprietary credit card products. Since 1946, Target has given 5 percent of its income through community grants and programs; today, that giving equals more than $3 million a week. For more information about Target's commitment to corporate responsibility, visit Target.com/hereforgood.

Contacts

Amy Reilly

Target

(612) 761-6782

Target Media Hotline

(612) 696-3400

C.H. Robinson Reports Fourth Quarter Results

2012-02-01T04:00:00.000-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW - News), today reported financial results for the quarter ended December 31, 2011.

Our truck net revenues, which consist of truckload and less-than-truckload (“LTL”) services, increased 5.5 percent in the fourth quarter of 2011. Our truckload volumes increased approximately seven percent in the fourth quarter of 2011 compared to the fourth quarter of 2010. Our truckload net revenue margin decreased in the fourth quarter of 2011 compared to the fourth quarter of 2010, due to the higher cost of fuel and our cost per mile rising faster than our price per mile. Excluding the estimated impacts of the change in fuel, our truckload pricing to our customers increased approximately three percent in the fourth quarter of 2011 compared to the fourth quarter of 2010. Our truckload transportation costs increased approximately four percent, excluding the estimated impacts of the change in fuel. Our LTL net revenues increased approximately 22 percent. The increase was driven by an increase in total shipments of approximately 14 percent and pricing increases, offset partially by a decreased net revenue margin.
Our intermodal net revenue increased 7.9 percent in the fourth quarter of 2011. This was due to volume growth, partially offset by decreased net revenue margin. Our net revenue margin decline was due to a change in our mix of business.
Our ocean transportation net revenues increased 1.8 percent in the fourth quarter of 2011, driven primarily by increased volumes, largely offset by price declines.
Our air transportation net revenue decreased 18.1 percent in the fourth quarter of 2011 due to decreases in volumes, pricing, and net revenue margin.
Other logistics services, which include transportation management fees, customs, warehousing, and small parcel, increased 12.6 percent in the fourth quarter of 2011. This was primarily due to increases in our management fee and customs net revenues.
For the fourth quarter, our Sourcing revenues decreased 3.2 percent. Sourcing net revenues decreased 13.5 percent to $27.4 million in 2011 from $31.7 million in 2010, primarily due to decreased net revenue margin, partially offset by volume growth.
Our Payment Services revenues increased 4.1 percent in the fourth quarter of 2011 primarily due to fee increases driven by higher fuel prices and changes to merchant agreements, and by an increase in MasterCard® transactions and other fuel card services.
For the fourth quarter, operating expenses increased 2.4 percent to $229.4 million in 2011 from $224.1 million in 2010. This was due to a decrease of 3.1 percent in personnel expense and an increase of 19.2 percent in other selling, general, and administrative expenses. The personnel expense decrease was driven by a reduction in certain incentive compensation plans that are based on growth in earnings, including our restricted stock program. Our earnings grew slower in the fourth quarter of 2011 compared to the earnings growth in the fourth quarter of 2010. Other operating expense growth was driven by an increase in claims, travel, temporary services, depreciation, and amortization of internally developed software. For the fourth quarter, operating expenses as a percentage of net revenues declined slightly, to 57.2 percent in 2011 and 57.7 percent in 2010.
Through January 30, 2012, our North American truckload volume growth per business day was approximately seven percent. Through the same period, our total net revenue growth per business day was approximately six percent.
Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 37,000 customers through a network of 235 offices in North America, South America, Europe, Asia, Australia, and the Middle East. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with over 53,000 transportation providers worldwide.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
Conference Call Information:
C.H. Robinson Worldwide Fourth Quarter 2011 Earnings Conference Call
Tuesday, January 31, 2012 5:00 pm. Eastern Time
The call will be limited to 60 minutes, including questions and answers.
Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-941-6009. Callers should reference the conference ID, which is 4504485
Webcast replay available through Investor Relations link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on February 3: 800-406-7325; passcode: 4504485#


CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)

	Three months ended				Twelve months ended
	December 31,				December 31,
	2011		2010		2011		2010

Revenues:
Transportation	$	2,200,258	$	1,946,325	$	8,740,524	$	7,575,659
Sourcing		352,744		364,337		1,535,528		1,643,174
Payment Services		15,282		14,687		60,294		55,472
Total revenues		2,568,284		2,325,349		10,336,346		9,274,305
Costs and expenses:
Purchased transportation and related services		1,841,586		1,604,552		7,296,608		6,302,530
Purchased products sourced for resale		325,313		332,633		1,407,080		1,503,797
Personnel expenses		164,062		169,271		696,233		632,064
Other selling, general, and administrative expenses		65,368		54,828		243,695		213,054
Total costs and expenses		2,396,329		2,161,284		9,643,616		8,651,445

Income from operations		171,955		164,065		692,730		622,860

Investment and other income		1,373		256		1,974		1,242

Income before provision for income taxes		173,328		164,321		694,704		624,102
Provision for income taxes		64,114		61,160		263,092		237,076
Net income	$	109,214	$	103,161	$	431,612	$	387,026

Net income per share (basic)	$	0.67	$	0.63	$	2.63	$	2.35
Net income per share (diluted)	$	0.67	$	0.62	$	2.62	$	2.33
Weighted average shares outstanding (basic)		162,919		164,729		164,114		164,909
Weighted average shares outstanding (diluted)		163,825		166,075		164,741		165,972

CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	December 31,		December 31,
	2011		2010
Assets
Current assets:
Cash and cash equivalents	$	373,669	$	398,607
Available-for-sale securities		-		9,290
Receivables, net		1,189,637		1,036,070
Other current assets		48,237		37,801
Total current assets		1,611,543		1,481,768

Property and equipment, net		126,830		114,333
Intangible and other assets		399,668		399,598
Total Assets	$	2,138,041	$	1,995,699

Liabilities and stockholders’ investment
Current liabilities:
Accounts payable and outstanding checks	$	704,734	$	627,561
Accrued compensation		117,541		96,991
Other accrued expenses		54,357		47,055
Total current liabilities		876,632		771,607

Long term liabilities		12,935		20,024
Total liabilities		889,567		791,631

Total stockholders’ investment		1,248,474		1,204,068
Total liabilities and stockholders’ investment	$	2,138,041	$	1,995,699

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands, except operational data)

	Twelve months ended
	December 31,
	2011			2010
Operating activities:
Net income	$	431,612		$	387,026
Stock-based compensation		38,601			37,047
Depreciation and amortization		32,498			29,369
Provision for doubtful accounts		9,052			13,922
Other non-cash expenses, net		7,363			10,619
Net changes in operating elements		(89,414	)		(133,204	)
Net cash provided by operating activities		429,712			344,779

Investing activities:
Purchases of property and equipment		(35,932	)		(17,718	)
Purchases and development of software		(16,874	)		(10,959	)
Purchases of available-for-sale securities		-			(10,752	)
Sales/maturities of available-for-sale securities		9,311			53,111
Restricted cash		5,000			(5,000	)
Other		182			(84	)
Net cash (used for) provided by investing activities		(38,313	)		8,598

Financing activities:
Payment of contingent purchase price		(4,318	)		-
Net repurchases of common stock		(231,338	)		(133,324	)
Excess tax benefit on stock-based compensation		15,255			13,092
Cash dividends		(194,697	)		(168,902	)
Net cash used for financing activities		(415,098	)		(289,134	)
Effect of exchange rates on cash		(1,239	)		(2,944	)

Net change in cash and cash equivalents		(24,938	)		61,299
Cash and cash equivalents, beginning of period		398,607			337,308
Cash and cash equivalents, end of period	$	373,669		$	398,607


	As of December 31,
	2011			2010
Operational Data:
Employees		8,353			7,628
Branches		235			231

Contact:

C.H. Robinson Worldwide, Inc.
Chad Lindbloom, chief financial officer, 952-937-7779
or
Angie Freeman, vice president, investor relations, 952-937-7847

3 Stocks Near 52-Week Lows Worth Buying - VVTV

2012-01-31T17:51:00.000-08:00

The following is an excerpt from a story found at Fool.com, click here to read the complete story.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

Everyday low value price
This is one selection my mother, a lifetime addict to shop-at-home TV networks, would have been very proud of. ValueVision Media (Nasdaq: VVTV ) crossed my buy radar this week after some brutally difficult months.

Don't think the weakness we've witnessed in consumer electronics is causing headaches for just the big-box retailer Best Buy (NYSE: BBY ) . ValueVision also reported a 20% decline in consumer electronics sales for the third quarter. Its watch sales also slumped 13%, which is odd given the strength we've seen from watch sales from Movado and most of the Swiss watchmaking industry.

What does impress me is that despite the loss, ValueVision grew its gross margin 120 basis points over the year-ago period and boasts a relatively strong balance sheet with a manageable level of debt. This says to me that ValueVision's other business segments -- jewelry, home, health and beauty, and fashion -- are doing well and that this company is on pace to turn itself around. With its stock at just 69% of book value, I'd be willing to make the call to buy here.

Apple Pure Play: ZAGG Poised For Another 400% Bull Run

2012-01-31T09:02:00.001-08:00

The following story courtesy of SeekingAlpha.com, click here for the complete story.

The recent price drop of ZAGG (ZAGG) due to iFrogz ownership lockup expiration, the 9 cent "one time" iFrogz inventory depreciation charge taken in the 3rd quarter, and end of year fund rotation, has made an extremely attractive entry point. Even the options activity in May is extremely heavily skewed toward out of the money calls. This is very telling as option players are usually considered to be more sophisticated investors. The options market is expecting a considerable move higher. With the recent pull back and options activity getting me interested again, I dug deep into ZAGG and did some considerable analysis. Additionally, I addressed many bear points. Bulls say that ZAGG is the major pure play on the success of Apple (AAPL). I now not only agree with this, but firmly believe that ZAGG is a pure play on the smartphone and tablet revolution the world is experiencing and will continue to experience for years to come. The following 11 reasons point to why ZAGG is set up for a 400% run in 2012.
1) ZAGG stands for "Zealous About Great Gadgets." ZAGG is a high growth company that is priced as if earnings is dropping. ZAGG continues to grow both the top line and bottom line every year. Since ZAGG started in 2006, it has almost doubled revenue every year and has already confirmed it has continued this trend in 2011. The growth trend is projected to continue in 2012. The following chart was taken from the ZAGG investor conference presentation last December.

Since the presentation, ZAGG raised 2011 annual revenue guidance for the 4th time to above $175 million. This equates to 130% year over year growth. With the explosion of tablets and smartphones, growth is projected to continue for many years into the future. The original 2011 annual guidance was only $95 to $100M which ZAGG absolutely destroyed. EPS is estimated to be 48 cents in 2011 and 80 cents in 2012. Conservative analyst guidance has 2012 revenue estimated at $240M. Expect ZAGG to post 2012 revenue north of $300M and EPS to be over $1.
2) ZAGG is severely undervalued on a fundamental basis. ZAGG has a 2012 forward PE ratio of 12 much like Logitech (LOGI). The major difference is that Logitech is experiencing declining revenue and earnings and ZAGG is growing at a rapid clip. Considering the growth rate, ZAGG is extremely undervalued on a PE basis. Peter Lynch wrote in his famous book "One up on Wall Street" that a fair valued company has a PEG (price to earnings to growth) ratio of 1. ZAGG has a PEG of .73 for the trailing 12 months. Factoring in what is expected to be the largest revenue and earnings quarter in ZAGG history, the PEG will likely be as low as .50 when 4th quarter earnings get reported in March. Based on the fair value after 4th quarter earnings, ZAGG could be worth $17.12 per share on a PEG basis. Growth companies typically have much higher PEG when they are favored. Chipotle (CMG) has a PEG of 2.53, ARM Holdings (ARMH) has a PEG of 2.73, Amazon (AMZN) has a PEG of 6, Blue Nile (NILE) has a PEG of 2.42, Boston Beer Company (SAM) has a PEG of 2.99, and Corning (GLW) has a PEG of 2.14. If ZAGG gets valued by mutual funds as a growth company as history has shown it can consistently do, the PEG could double to over 2. This is equivalent to ZAGG over $34 per share.
3) Shorts and bears argue that ZAGG can't continue to grow its business. Bears have actually argued this the last 2 years as revenue and earnings have exploded higher. Bears point to the high margin Invisible Shield product that can be replicated cheaply by just about anyone. In December, Jim Cramer piled on to the short argument citing competition. This was only a couple months after Cramer said ZAGG was an Apple play and that hedge funds could take the stock up 20 points on momentum. The truth is that although there is competition, ZAGG is #1 in the fast growing smartphone and tablet accessory industry as reported during its latest investor conference. This is according to NPD research group, the source retailers rely on when ordering products. The truth is ZAGG continues to add SKUs to its retail channels and will successfully continue this trend the next few years. ZAGG has grown to over 20,000 SKUs with their high margin Invisible Shield. The model has been to get a foot in the door with a few SKUs in retailers, grow the relationship demonstrating superior products and filling orders timely, and then to expand SKU counts from there. ZAGG started with only a couple SKUs at Best Buy (BBY) and Target (TGT) a few years ago and have expanded significantly since. The same goes for expansion into Radioshack (RSH) and Staples (SPLS). If you go to any Best Buy, you'll see over 70 different ZAGG SKUs. In the last 15 months, ZAGG has entered all of the major carriers to include AT&T (T), Verizon (VZ), Sprint (S), Cricket, and T-Mobile.
ZAGG is replicating the Best Buy and Target strategy that has been a huge sucess. On top of the Invisible shield offerings, they are now selling new accessories such as the ZAGGsparq ($99 Power Charger), ZAGGwipes and ZAGGfoam ($5 to $10 cleaner), and the ZAGGmate ($99 iPad case/keyboard). ZAGG is cross selling iFrogz audio and cases with the Invisible Shield. Last December, ZAGG signed Microcel which is the largest accessories distributor in Canada. In 2011, ZAGG established ZAGG Europe, and are growing SKU counts oversees. The CEO has discussed setting up a distribution center in South America in a country like Brazil. As ZAGG continues to grow SKUs by taking up the shelves of all of the major retailers, it has been slowly overtaking the major point of sales in a highly fragmented market. Although bears and shorts contend there are no barriers to entry, it is much harder than it seems. Even if competitors manage to enter retailers, it is usually at one or two SKUs with little or no future expansion. Most in this space can't successfully compete with ZAGG. Difficulties include logistics, pricing, economy of scale, warranties, long payment times, and branding. Small difficulties often lead to small players getting dropped by major retailers.
ZAGG is the stalwart in this category that keeps expanding its footprint. Just this week, ZAGG demonstrated they are executing this strategy with AT&T stores. The last bastion for competitors has been the Amazon marketplace, where thousands of screen protectors are listed. Competition on Amazon is pretty difficult. ZAGG has a distributor on Amazon but does not focus its strategy there. Most people purchase screen protectors when they buy a smartphone or tablet. Shipping charges on Amazon make many competitors more expensive in many cases. Other lower priced competitors have such small margins that there is little ability to grow the business. Competitors have warranty issues as many of them are made in China or are made from non reputable companies. Trying to sell screen protectors on Amazon is not a very good strategy for growth. It is so difficult to compete on Amazon that no threat is likely to emerge online.
Taking over the major points of sale is the successful strategy. ZAGG is similar to many new businesses from technological revolutions such as the smartphone or tablet computer. It starts out as highly fragmented, but eventually a dominating leader wins and takes over a category. ZAGG is currently the growing leader that is rapidly dominating competitors and future competitors. The game is not if a company can make a screen protector, but can the company get the shelf space at the major points of sale (primarily where smartphones and tablets are sold), keep it, and then expand it. For as big of a threat bears say there is with no barrier to entry (as alleged with all ZAGG products), no major competitor has been able to emerge for the reasons stated above and below. ZAGG will likely double its SKU counts in 2012. Growth will continue through the smartphone and tablet revolution over the next few years. ZAGG is only scratching the surface in the number of SKUs it could eventually sell.
Just compare the growth in Apple in smartphones and tablets the last few years with ZAGG.

Now look at ZAGG the last couple years. Those that say ZAGG is not a pure play in the mobile revolution are blind to the facts. If you look at the huge jump in Apple iPhone and iPad sales in the 4th quarter, there will be an obvious correlation when ZAGG reports on March 12th.

4) Shorts and bears are becoming increasingly worried about recent analyst reports hinting that ZAGG is about to enter Walmart. Currently, ZAGG does not sell the Invisible Shield to Walmart (WMT) stores and has minimal presence on walmart.com. ZAGG does have a great relationship through iFrogz (a 100% owned subsidiary), which has grown from 1 product SKU in 2010 to over 45 active SKUs in Walmart. Because of the strong relationship with Best Buy, ZAGG has stayed away from Walmart in the past. With new product offerings to include the higher priced HD screen protection, ZAGG appears to have the green light to enter Walmart, according to analysts. Another big hint is cross selling which was a big reason why ZAGG bought iFrogz in the summer of 2011. ZAGG has slowly put ifrogz products in its existing channels. ZAGG has yet to be cross sold into the major iFrogz customer, Walmart. Expect this to happen in the near future, possibly in the 1st or 2nd quarter of 2012. Currently, iFrogz sells over a hundred thousand SKUs per week through Walmart. Once ZAGG enters Walmart, I would expect similar sales volume for the Invisible Shield which typically has a higher average selling price and gross margin than iFrogz products. Like with the third point above, a move by ZAGG into Walmart would devastate potential competitors. ZAGG would control most of the retail market.
As another testament to execution and strategy trumping "how easy it is to create a product," audio accessories and headphones are easy to make, yet iFrogz has succeeded in selling additional units each month, and not a Chinese copycat or some guy out of his garage. The fact is most US companies outsource manufacturing, including Apple as well as most successful product companies. Retailers and consumers go for US branded products for high quality, reliability, and warranties. On an annual basis to ZAGG, entering Walmart could add $60M a year in revenue in 2012 and over $120M a year in 2013. This is the worst case based on a slow roll out (100 thousand SKUs per month instead of a week like iFrogz in 2012, then 100 thousand SKUs biweekly instead of a week in 2013, and then up from there). Best case is that these numbers are extremely conservative.
5) The bears and shorts say that the invisible shield is a one hit wonder, yet ZAGG has continued to become a more diversified company. Product offerings continue to expand for both ZAGG and iFrogz and will continue to do so in 2012. At the end of 2011, the Invisible Shield made up 57% of total sales as other product sales grew. In 2011, ZAGG signed a deal with Logitech for the ZAGGmate (now Logitech keyboard by ZAGG) for the iPad and iPad 2. In late 2011, ZAGG launched additional tablet keyboards: ZAGGkeys flex, ZAGGkeys solo, and the ZAGGfolio. ZAGG now offers ZAGGskins and keyboard cases in the same colors Apple utilizes for the iPad magnet cover. At the end of 2011, iFrogz came out with 4 new headphones. In 2012, ZAGG announced the doubling of its keyboard production due to high demand. At CES 2012, ZAGG launched the Invisible Shield HD, a premium priced screen protector which could be an industry game changer. The Invisible Shield HD could become the "go to" screen protector for consumers during the smartphone and tablet revolution. ZAGG also demonstrated the ZAGGsparqcase.
Expect additional product offerings from ZAGG in 2012 as seen in the official 2012 CES video. In the video, the new ZAGGsparqcase is discussed as well as ZAGGdivide, ZAGG acoustics, and ZAGG aqua. The ZAGGdivide is a zippercase to compete with Targus and has recently started to sell on ZAGG.com. The video reiterates the goal of "quickly becoming a billion dollar company." This mirrors the 2009 company video when ZAGG was significantly smaller and the CEO stated the "billion dollar company" goal. The exponential growth performance of ZAGG since then gives huge credibility to the ZAGG executive team. Additionally, iFrogz is also launching new products in 2012. iFrogz is entering the gaming space with their "Caliber" headphones. iFrogz is launching "Boost" which is an iPhone speaker amplifier that uses near field technology. In 2012, iFrogz is also releasing new armbands, new types of cases, new "in ear" headphones, new power chargers, and new types of audio connectors. Expect all of these products to be in Walmart and other retailers in 2012 and to significantly boost ZAGG revenues.
6) Bears and shorts have ignored the patents that ZAGG holds and the huge positive implications for ZAGG. In June 2011, ZAGG announced that the US Patent Office issued the company a patent for wrapping electronic devices. This utility patent is not only for certain devices, but for all electronic devices until 2026. ZAGG has been in litigation with competitors for infringing on its patent. ZAGG, according to the last quarterly filing has already had numerous competitors settle out of court. ZAGG contends that it is remote that it will lose the remaining lawsuits for patent infringement, which would knock many other competitors out of the market in 2012. This is also keeping the potential of larger competitors away from this market. Reading the patent makes the ZAGG case look ironclad. In addition to the utility patent, ZAGG holds patent rights to the packaging and installation of screen protectors using sprays and squeegees from the Mason lawsuit settlement. The film manufacturer also holds patents on the nano memory making process in producing the material. The keyboards are patented as well as its audio "hanging tight" design. Currently, ZAGG has patent applications in for its ZAGGskins (printing designs/protection for the backs of electronic devices) as well as another patent application for wrapping electronic devices that piggybacks off its patent last summer. In a couple years, ZAGG could get the majority share of the entire US market due to its patents like 3M did with the post-it note from the 1970's to the 1990's. Wrapsol, a competitor, has been displeased with ZAGG having the patent. Wrapsol has stated that ZAGG has used its patents in pushing its products to retailers.
Just like with retailers not wanting to stock any iPod accessory without the official "made for iPod" logo because of patent infringement liability with Apple, retailers are progressively not wanting to stock competing screen protectors that infringe on the ZAGG patent. The same happens with Hasbro (HAS) and Mattel (MAT) in the toys industry. Chinese copycats can't get into US retailers, although many can certainly copy a certain doll or action figure. Copycats resort to online websites like Amazon, becoming a street vendor, or setting up in flea markets. Being the #1 selling and patented product continues to enable ZAGG to become the "go to" company in this space. Although, the success of ZAGG is largely attributed to the success of Apple, it is device agnostic, and will continue to experience huge success no matter what electronic devices are adopted.
Additionally, some bears point to gorilla glass being a threat. The gorilla glass in every iPhone and iPad still scratches. As a result, the bear's predictions the last couple years have been extremely wrong as the iPhone became the biggest Invisible Shield device in history. According to Corning, the new gorilla glass 2 is not scratch proof. Manufacturers want thinner and lighter glass that maintains strength. All current glass scratches. Future glass will most likely scratch. Owning this patent during the global trend of smartphone and tablet adoption positions ZAGG extremely well into the future.
7) ZAGG currently owns over 47% (37.5% when fully diluted) of HZO with ZAGG executives owning additional percentages. This gives ZAGG a controlling stake in promising company. The remaining owners are various venture capital firms. HZO owns the patent and additional US patent applications piggybacked on the patent for coating electronics in such a way the electronics work despite getting hit with water. Previous ZAGG bear and basher, Worthless Pennies, said the "Golden Shellback" technology (previous HZO name) was worthless as he bashed ZAGG. ZAGG has since received venture capital from 5 respected firms, most recently from one of Hong Kong's richest people. Search HZO online and there are many videos demonstrating the technology, most famously on Good Morning America at CES 2012. Here is another demonstration.
Numerous sites, including the New York Times, Consumer Reports, and PC World recently praised HZO at CES 2012. Many said it was the hit of CES and the thing to see. Additional info can be found on the HZO site. ZAGG and HZO had already said there was talks/negotiations with many different manufacturers in utilizing the technology via OEM deals. The manufacturers would license the HZO technology and build it into its process and then pay a royalty to HZO between $1 and $3. Since CES 2012, rumors spread through the web that none other than Apple and Samsung are now in talks with HZO for the next wave of phones this summer.
Apple is rumored to be looking at "waterblocking" the iPhone 5. The HZO technology has been developed over the last 5 years and has successfully demonstrated on numerous different devices such as headphones, smartphones, GPS devices, and tablets. There is no other technology like it (only water seal/coating companies who's products can't be submerged in water more than 10 seconds). There are different versions of "parylene coating," but none of them to the advanced degree HZO has developed it (otherwise, all electronics would be waterproof the last 40 years). HZO is able to waterblock the device in such a way that electrical currents can still pass by utilizing a new parylene compound in a $500 thousand dollar vacuum chamber. This is revolutionary, as other competitors can only seal electronics with watertight seals and apply basic "parylene coating." The result of competitor's process is that currents can't go through the coating. When water travels through the seal and outside coating, the electrical device dies. HZO representatives have been publicly stating the last couple weeks that HZO "waterblocked" devices will hit the market this summer. With production lead times being up to a few months, it is my hunch that some deals are already signed and that non disclosures are keeping it under wraps until the manufacturer announces. I even saw how HZO had a "OEM" page that listed all of the different manufacturer devices that have been fully tested but then took it down when the Apple rumors swirled (Samsung (SSNLF.PK) and Apple products were heavily displayed on the page).
What is also telling is that for the first time last quarter (as reported in the 10Q), ZAGG split out not only iFrogz revenue, but also split out HZO revenue going into the future. This can only mean the company expects significant HZO revenue in 2012 and wants to establish some year over year comparisons. "Waterblocking" has huge applications in smart phones, tablets, GPS devices, cameras, earpieces, solar panels, automotive circuitry, aerospace, medical equipment, marine equipment, and military equipment. Despite deals that might have already been signed, or will be signed in the near future not only with Apple and Samsung, but with many different manufacturers, HZO is currently not priced into ZAGG despite having over 47% equity. Even the value HZO received through the capital raises didn't raise the price of ZAGG stock. The market for waterblocking electronic devices is gigantic. Samsung is projected to sell over 150 million smartphones in 2012. Apple is projected to sell over 125 million iPhones in 2012. Millions more tablets are expected to be sold this year and many years into the future. Receiving a royalty of $2 from just these two companies would be hugely profitable for HZO to the tune of hundreds of millions. A couple hundred million in royalties each year could create a billion dollar valuation for HZO. Zagg gets a 5% fee from HZO sales as well gets the value of the growing equity stake. Like with EMC and VMW (VMW), this equity growth would be significant the valuation of ZAGG.
8) ZAGG is about to announce the biggest quarter in company history. In December 11, ZAGG raised annual guidance to above $175M. Through the 3rd quarter, Zagg had revenues of $111.5M. Doing simple math, this means at a minimum, ZAGG will have revenues of $63.5M. This equates to 38% quarter over quarter sequential growth and 117% year over year quarter growth. Not even some of the fatest growing publicly trading companies increase revenues this quickly on a consistent basis. Additionally, ZAGG usually has its big run ups with the big Apple iPhone launches. In the fall of 2010, ZAGG ran up from a couple bucks up to $8 as the iPhone 4 launched and adoption of the Invisible Shield was huge. With the iPhone 4S getting launched in October 2011 (with 37 million units sold) and the iPad 2 having a big Christmas (15M units sold), a record number of SKUs in retailers, combined with the 4th quarter always being their best quarter, ZAGG is poised to have a similar run up. The recent Apple and Samsung quarters show how fast the market is growing. This can only be good for ZAGG. ZAGG has already raised revenue guidance 4 times in 2011, but expect the company to beat it and post record EPS. Additionally, ZAGG is entering another big product year for Apple with the iPad 3 and iPhone 5 near release along with all competitor smartphones and tablets. The rumor is that the Apple TV will have a touchscreen remote. The market keeps growing.
9) Even Fibonacci ratios and Elliot Wave Theory support where ZAGG is projected to go. After testing the 9 month low, ZAGG reversed, setting up a double bottom reversal. This in itself is extremely bullish, setting up a potential run to $35. Some have pointed out that using the waves, the bull run from summer 2010 to summer 2011 was the "12345" movement and could only bring about a test of the low "[ABC]" to complete the first cycle. It now looks that December 29 is as a textbook low test as it gets. The wave is now expected to repeat a few times. According to the theory, markets move in wave cycles in the following sequence, and then repeat in multi-wave cycles.

Analyze Zagg the past 2 years. On December 29, Zagg retested the low "4" and is set up to repeat the 1 through 5 move again for the foreseeable future. This looks like a textbook pattern.

Since this is the first cycle, Zagg is expected to repeat the movements per the chart below. This takes the stock up toward $35 around December 2012, correcting again, before moving to a peak of $52. The peak is followed by a couple down cycles.
10) ZAGG could get bought out in a takeover bid. The most obvious candidate is Logitech International. On 4 Jan 12, Logitech submitted in a filing that it had taken out an additional $150 million on their credit facility for a total $400 million despite not having borrowed from the original facility yet. The reason why this is odd is that Logitech currently has $523 million in cash and has zero debt. The cash flow of Logitech is pretty impressive. The market is not currently favoring Logitech due to its declining revenues and earnings. It is not considered a growth company anymore. More importantly, Logitech is positioned for the PC business in a world that is moving toward smartphones and tablets. Logitech has been slow to adopt. A recent J.P. Morgan analyst report stated that Logitech was being left behind in lifestyle brands, specifically in audio and gaming. ZAGG is mentioned in the report as the iFrogz audio brand is a big seller in Walmart.
As noted above, iFrogz has entered the gaming space with new gaming headsets. Logitech has been slow to realize that style is big in the smartphone and tablet accessories market. I think they realize now that focusing on mice and keyboards is a big risk in the smartphone and tablet revolution. In the SEC filing for the $400 million credit facility, Logitech stated that the facility "may be used for working capital, general corporate purposes, and acquisitions." Logitech has enough working capital and cash for general corporate purposes. An acquisition is the only plausible explanation. The last major acquisition Logitech did was a couple years ago. Logitech bought a company for over $400 million which was over 4x the revenue of the company. A buy out of ZAGG would be at a minimum value of $700 million with current guidance. This is roughly $23 per share. ZAGG could have signficantly higher revenues in 2011. The acquisition makes sense because Logitech is currently a partner in ZAGG keyboards, are absent in lifestyle accessories, and do not sell screen protection. The ZAGG patents and the HZO stake adds considerable value.
11) A 41.64% short ratio (current as of 30 Dec 11) can cause a massive multi-day short squeeze when mutual funds start to buy ZAGG again. A rumor of going into Walmart caused a 13% bounce in ZAGG on Jan 13th. Actual news would cause the stock to shoot up, with short covering exacerbating the move higher and higher. The same would go for a HZO deal with Samsung and especially Apple. Record 4th quarter revenue and earnings along with optimistic 2012 guidance on March 12 could cause a large squeeze like in 2010. With many positive catalysts in the pipeline, the mother of all short squeezes could easily take this stock to north of $35 and into overbought territory short term. Shorts piled in on Sears (SHLD) at the end of 2011, but have been burned as Sears shot up 46% with shorting it becoming a popular trade. Like the famous 1929 story of Jesse Livermore knowing there was a top in the market when shoe shine boys would give him stock advice, and taxi drivers having hot stock tips in 1999, the same is true for shorts when a trade becomes extremely overcrowded. With amateurs like Jeff Reeves advising regular investors to short ZAGG on Fox News, Investorplace, Marketwatch, and Seeking Alpha with the same article as well as Motley Fool contributors piling in negatively and even Jim Cramer doing the same, you know the dumb money is in, and the bottom has been set.
The author as well as many readers of this article can easily refute what seems to be a poorly waged "short and distort" scheme by some hedge funds and all the classic signs of it. It has become comical the lengths individuals go to in order to manipulate a stock. They prey on fear causing a stronger reaction than greed. The internet seems to be the bucket shop of the 21st century. My following article will address the short and distort campaign on ZAGG and will address common rumors.
Disclosure: Author rode ZAGG up from $2.20 up to $8 in 2010. This next run looks even more obvious. Author is now long and will buy more as moves higher.

Navarre Reports Financial Results for Third Quarter of Fiscal Year 2012

2012-01-30T16:40:00.001-08:00

Company Increases Fiscal Year 2012 Net Sales Guidance Due to Continuing Growth in Consumer Electronics and Accessories Products

MINNEAPOLIS, Jan. 30, 2012 (GLOBE NEWSWIRE) -- Navarre (Nasdaq:NAVR - News), a leading distributor and provider of complete logistics solutions for traditional and e-commerce retail channels, today reported its financial results for the third quarter of its 2012 fiscal year.

Third Quarter Fiscal Year 2012 Results

Net sales from continuing operations increased by 4% to $153.5 million, as compared to net sales from continuing operations of $147.3 million during the third quarter of the prior year.
Adjusted pro forma operating expenses improved by 14% or $2.2 million to $13.5 million during the third quarter, as compared to operating expenses of $15.7 million in the prior year. (See "Use of Non-GAAP Financial Information" below.)
Adjusted pro forma income from continuing operations before income tax increased by 67% to $2.4 million during the third quarter, as compared to income from continuing operations before income tax of $1.5 million in the prior year. (See "Use of Non-GAAP Financial Information" below.)
Net loss from continuing operations for the third quarter of fiscal year 2012 was $29.1 million or a loss of $0.79 per diluted share, versus net income from continuing operations of $1.1 million, or $0.03 per diluted share in the same period of the prior year. This net loss included the pre-tax impact of restructuring and other charges in the amount of $11.0 million, a non-cash write-off of goodwill and intangibles in the amount of $6.0 million, and an $18.9 non-cash income tax charge arising out of the establishment of a valuation allowance recorded against deferred tax assets.
Adjusted pro forma EBITDA from continuing operations for the third quarter increased by 21% to $4.1 million, as compared to adjusted pro forma EBITDA from continuing operations of $3.4 million in the prior year's third quarter. (See "Use of Non-GAAP Financial Information" below.)
The Company had no debt and a cash balance of $1.9 million at December 31, 2011, as compared to debt of $12.5 million at December 31, 2010, an improvement of $14.4 million.

Richard Willis, Chief Executive Officer, commented, "In the third quarter, Navarre showed substantial progress in several key metrics. Sales were up a solid 4%, reflecting strong sales in consumer electronics and accessories which outpaced declines related to software products. The strength of our sales expansion in high growth categories led us to increase our net sales outlook for the 2012 fiscal year. Adjusted pro forma operating expenses decreased by 14% in the third quarter as we are beginning to see benefits our restructuring initiative. This restructuring is allowing us to execute our strategy to further leverage our strengths in logistics and distribution by competitively pricing our products and services while further increasing our focus on customer support, sales and marketing.

"During the third quarter we added 24 new vendor partners, many of which are manufacturers of consumer electronics and accessories. With 101 vendors having been added during the first three quarters of fiscal 2012, we have already added more new vendor relationships than in all of fiscal 2011. This accelerating pace in business development led to a $21.0 million or 189% year-over-year net sales increase of consumer electronics and accessory products during the third quarter. These new vendor relationships have added a broader product offering which leads to the opening of relationships with new customers and also served as a catalyst for our successful expansion in Canada. We appreciate the trust and support of all our vendor partners, and we continue to see Navarre's ongoing expansion in these markets as a direct path to increasing shareholder value."

Restructuring Initiative

During the third quarter, the Company's previously announced restructuring initiative resulted in the recognition of restructuring and other charges in the amount of $11.0 million on a pre-tax basis and a write-off of goodwill and intangibles in the amount of $6.0 million on a pre-tax basis. An additional $6.0 million of pre-tax charges are anticipated to be recognized during the Company's fourth quarter. The Company expects cash charges to make up approximately $10.8 million of the restructuring and other charges recognized during fiscal year 2012, with the most significant components being employee severance and transition costs of approximately $5.2 million and approximately $4.0 million in facility termination costs.

In connection with this restructuring initiative the Company also established a valuation allowance recorded against deferred tax assets. This resulted in the recognition of a non-cash income tax charge of $18.9 million during the third quarter.

These changes are being made to transition away from facilities, business processes and other assets that were in place to support now divested and non-core businesses. The changes are also designed to support high-growth opportunities in the distribution of consumer electronics and accessories, to enhance e-commerce fulfillment business and to increase our market expansion in Canada. This restructuring is expected to generate annualized, pre-tax cost savings of $5.5-$6.5 million when fully implemented in fiscal year 2013, with savings of $2.0 million expected to be achieved in fiscal year 2012. It is anticipated that additional cost savings and efficiencies will be identified as the Company completes this restructuring.

Refinance of Credit Facility

In December, the Company entered into a five-year extension of its credit facility with Wells Fargo Capital Finance. This $50.0 million facility now provides reduced interest rates on borrowings and includes an accordion feature allowing the Company to increase borrowing availability under certain circumstances up to $70.0 million. Proceeds from the credit facility are available for general working capital purposes.

"We are pleased to have completed this refinancing, particularly considering today's restrictive credit markets," said Diane Lapp, Interim Chief Financial Officer. "Our solid cash position and the strength of our balance sheet allowed us to significantly improve the terms of this facility. This revised structure provides us with the financial flexibility that we need to execute our growth strategy."

Outlook

In light of the strength of the Company's sales of consumer electronics and accessory products, guidance for fiscal year 2012 has been updated as follows:

Anticipated net sales have increased to be between $460.0 million and $480.0 million; and
Adjusted pro forma EBITDA is expected to be between $7.0 and $9.0 million. (See "Use of Non-GAAP Financial Information" below.)

Conference Call

The Company will host a conference call on January 31, 2011, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). The conference call can be accessed by dialing (866) 202-3048, and utilizing the passcode "71761028", ten minutes prior to the scheduled start time. In addition, a live broadcast of this call will be available by going to the "Investors" section of the Company's website located at www.navarre.com. Those wishing to access this live broadcast of the call should go to the Company's website fifteen minutes prior to the start time to register and download any necessary software. A replay of the conference call will be available at the Company's website following its completion.

Use of Non-GAAP Information

The Company provides non-GAAP adjusted pro forma information and references to "adjusted pro forma" information are references to non-GAAP adjusted pro forma measures. The Company provides adjusted pro forma information to assist investors in assessing its current and future operations in the way that its management evaluates those operations. Adjusted pro forma operating expenses, adjusted pro forma income from continuing operations before income tax, and adjusted pro forma EBITDA are supplemental measures of the Company's performance that are not required by, and are not presented in accordance with GAAP. Adjusted pro forma information is not a substitute for any performance measure derived in accordance with GAAP. The Company's management has evaluated and made operating decisions about its business operations primarily based upon these adjusted pro forma financial metrics. Therefore, the Company presents these adjusted pro forma measures along with GAAP measures. For each such adjusted pro forma financial measure, the adjustment provides the Company's management with information about the Company's underlying operating performance that enables a more meaningful comparison of its financial results in different reporting periods.

The adjusted pro forma measures presented by the Company provide comparable financial metrics to historical periods absent the impact of restructuring and other charges incurred during the Company's third quarter of fiscal year 2012. The Company also excludes the impact of equity-based compensation from its non-GAAP adjusted pro forma EBITDA in order to help it compare current period operating expenses against the operating expenses for prior periods and to eliminate the effects of this non-cash item, which, because it is based upon estimates on the grant dates, may bear little resemblance to the actual values realized upon the future exercise, expiration, termination or forfeiture of the equity-based compensation, and which, as it relates to stock options and stock purchase plan shares, is required for GAAP purposes to be estimated under valuation models, including the Black-Scholes model used by the Company.

The Company is using adjusted pro forma measures to help it make budgeting decisions, including decisions that affect operating expenses and operating margin. Further, adjusted pro forma financial information helps the Company's management track actual performance relative to financial targets.

The Company recognizes that the use of adjusted pro forma measures has limitations, including the need to exercise judgment in determining which types of charges should be excluded from the adjusted pro forma financial information. The Company provides adjusted pro forma financial information to the investment community, not as an alternative, but as an important supplement to GAAP financial information; to enable investors to evaluate the Company's core operating performance in the same way that its management does. Reconciliations between historical pro forma and adjusted pro forma results of operations are provided in the tables below.

About Navarre Corporation

Navarre(R) is a distributor and provider of complete logistics solutions for traditional and internet-based retail channels. Our solutions support both direct-to-consumer and business-to-business sales. We also publish computer software through our Encore(R) subsidiary. Navarre was founded in 1983 and is headquartered in Minneapolis, Minnesota.

The Navarre Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6839

Safe Harbor

The statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbors provided therein. The forward-looking statements are subject to risks and uncertainties, and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to: difficult economic conditions that adversely affect the Company's customers and vendors; the Company's revenues being derived from a small group of customers; pending or prospective litigation may subject the Company to significant costs; the seasonal nature of the Company's business; the potential for the Company to incur significant costs and to experience operational and logistical difficulties in connection with its information technology systems and infrastructure; the Company's dependence on significant vendors; the uncertain results of developing new software products; uncertain financial results in the publishing segment; the Company's ability to meet significant working capital requirements related to distributing products; and the Company's ability to compete effectively in the highly competitive distribution and publishing industries. In addition to these, a detailed statement of risks and uncertainties is contained in the Company's reports to the U.S. Securities and Exchange Commission (the "SEC"), including, in particular, the Company's Form 10-K filings, as well as its other SEC filings and public disclosures.

Investors and shareholders are urged to read this press release carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this press release will be met, and investors should understand the risks of investing solely due to such projections. The forward-looking statements included in this press release are made only as of the date of this report and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

Investors and shareholders may obtain free copies of the public filings through the website maintained by the SEC at http://www.sec.gov/ or at one of the SEC's other public reference rooms in Washington, D.C., New York, New York or Chicago, Illinois. Please contact the SEC at 1-800-SEC-0330 for further information with respect to the SEC's public reference rooms.

NAVARRE CORPORATION
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
December 31, Nine Months Ended
December 31,

2011 2010 2011 2010
Net sales $ 153,497 $ 147,325 $ 364,081 $ 366,593
Cost of sales (exclusive of depreciation) 145,857 129,512 330,059 317,043
Gross profit 7,640 17,813 34,022 49,550
Operating expenses:

Selling and marketing 5,701 5,910 15,749 16,071
Distribution and warehousing 2,685 2,922 7,623 8,080
General and administrative 6,532 5,924 18,209 16,147
Depreciation and amortization 883 983 2,782 2,865
Goodwill and intangible impairment 5,996 -- 5,996 --
Total operating expenses 21,797 15,739 50,359 43,163
Income (loss) from operations (14,157) 2,074 (16,337) 6,387
Other income (expense):

Interest income (expense), net (292) (506) (873) (1,357)
Other income (expense), net (171) (108) (501) (539)
Income (loss) from continuing operations before income tax (14,620) 1,460 (17,711) 4,491
Income tax expense (14,457) (393) (13,242) (1,764)
Net income (loss) from continuing operations (29,077) 1,067 (30,953) 2,727
Discontinued operations:

Income from discontinued operations, net of tax -- 1,849 -- 4,424
Net income (loss) $ (29,077) $ 2,916 $ (30,953) $ 7,151
Basic earnings (loss) per common share:

Continuing operations $ (0.79) $ 0.03 $ (0.84) $ 0.08
Discontinued operations -- 0.05 -- 0.12
Net income (loss) $ (0.79) $ 0.08 $ (0.84) $ 0.20
Diluted earnings (loss) per common share:

Continuing operations $ (0.79) $ 0.03 $ (0.84) $ 0.07
Discontinued operations -- 0.05 -- 0.12
Net income (loss) $ (0.79) $ 0.08 $ (0.84) $ 0.19
Weighted average shares outstanding:

Basic 36,977 36,471 36,805 36,405
Diluted 36,977 37,008 36,805 36,925

NAVARRE CORPORATION
Consolidated Condensed Balance Sheets
(In thousands)

(Unaudited) (Unaudited)

December 31, December 31, March 31,

2011 2010 2011
Assets

Current assets:

Cash $ 1,882 $ -- $ --
Accounts receivables, net 92,144 79,330 57,833
Receivable from the sale of discontinued operations -- -- 24,000
Inventories 32,784 28,469 24,913
Deferred tax assets -- current, net 3,462 5,254 6,436
Other 2,603 3,988 3,957
Current assets of discontinued operations -- 5,339 --
Total current assets 132,875 122,380 117,139
Property and equipment, net 7,534 9,758 9,299
Intangible assets, net 1,675 8,227 8,084
Deferred tax assets -- non-current, net 13,874 11,973 24,320
Other assets 8,936 15,961 15,024
Non-current assets of discontinued operations -- 30,716 --
Total assets $ 164,894 $ 199,015 $ 173,866

Liabilities and shareholders' equity

Current liabilities:

Revolving line of credit $ -- $ 12,547 $ --
Accounts payable 112,855 92,640 80,379
Other 7,447 14,789 18,189
Current liabilities of discontinued operations -- 7,543 --
Total current liabilities 120,302 127,519 98,568
Long-term liabilities:

Other 1,629 2,606 2,217
Total liabilities 121,931 130,125 100,785

Shareholders' equity 42,963 68,890 73,081
Total liabilities and shareholders' equity $ 164,894 $ 199,015 $ 173,866

NAVARRE CORPORATION
Consolidated Condensed Statements of Cash Flows
(In thousands)

(Unaudited)

Nine Months Ended December 31,

2011 2010
Net cash used in operating activities $ (9,309) $ (3,735)
Net cash provided by (used in) investing activities 20,030 (9,266)
Net cash provided by (used in) financing activities (8,839) 7,344
Net cash provided by (used in) continuing operations 1,882 (5,657)

Discontinued operations

Net cash provided by operating activities -- 6,026
Net cash used in investing activities -- (362)
Net cash used in financing activities -- (7)
Net cash provided by discontinued operations -- 5,657

Net increase in cash 1,882 --
Cash at beginning of period -- --
Cash at end of period $ 1,882 $ --

NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)

Reconciliation of Net Sales Before Inter-Company Eliminations to GAAP Net Sales and Business Segment Information

Three Months Ended December 31, Nine Months Ended December 31,

2011 % 2010 % 2011 % 2010 %
Net sales:

Software $103,862 67.7% $112,257 76.2% $255,819 70.3% $285,054 77.8%
Consumer electronics and accessories 32,640 21.3% 11,308 7.7% 59,682 16.4% 22,565 6.2%
Video games 10,785 7.0% 8,750 5.9% 21,136 5.8% 20,344 5.5%
Home video 3,514 2.3% 12,087 8.2% 19,935 5.5% 31,153 8.5%
Distribution 150,801 98.3% 144,402 98.0% 356,572 98.0% 359,116 98.0%
Publishing 7,661 5.0% 8,311 5.6% 21,183 5.8% 24,021 6.5%
Net sales before inter-company eliminations 158,462
152,713
377,755
383,137
Inter-company eliminations (4,965)
(5,388)
(13,674)
(16,544)

Net sales as reported $153,497
$147,325
$364,081
$366,593

Operating (loss) income from continuing operations:

Distribution $ (67)
$ 802
$(3,976)
$ 2,510
Publishing (14,090)
1,272
(12,361)
3,877
Consolidated operating (loss) income from continuing operations $(14,157)
$ 2,074
$(16,337)
$ 6,387

NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)

Reconciliation of Net Income (Loss) from Continuing Operations to Adjusted Pro Forma EBITDA

Three Months Nine Months

Ended December 31, Ended December 31,

2011 2010 2011 2010
Net income (loss) from continuing operations, as reported $(29,077) $ 1,067 $(30,953) $ 2,727
Interest expense, net 292 506 873 1,357
Income tax expense 14,457 393 13,242 1,764
Depreciation and amortization 883 983 2,782 2,865
Goodwill and intangible impairment 5,996 -- 5,996 --
Restructuring and other charges 11,055 -- 12,912 --
Foreign translation loss 171 84 501 515
Share-based compensation 279 318 702 786
Adjusted pro forma EBITDA $ 4,056 $ 3,351 $ 6,055 $ 10,014

NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)

Adjusted Pro Forma Income from Continuing Operations Before Income Tax

GAAP Information
Three Months Ended December 31, Adjusted Pro Forma Information
Three Months Ended December 31,

2011 % of
sales 2010 % of
sales 2011 % of
sales 2010 % of
sales
Net sales $ 153,497
$ 147,325
$ 153,497
$ 147,325
Gross profit (1) 7,640 4.9% 17,813 12.1% 16,434 10.7% 17,813 12.1%
Operating expenses (2) 21,797 14.2% 15,739 10.7% 13,540 8.8% 15,739 10.7%
Income (loss) from operations (14,157)
2,074
2,894
2,074
Other (expense), net (463)
(614)
(463)
(614)
Income (loss) from continuing operations before income tax $ (14,620)
$ 1,460
$ 2,431
$ 1,460

Three Months Ended December 31,

2011
2010

(1) Pro forma adjustments to gross profit consist of the following:

Inventory write-downs $ 1,728
$ --

Software development impairment 1,238
--

Prepaid royalties impairment 5,826
--

Restructuring and other charges 2
--

Total adjustments $ 8,794
$ --

(2) Pro forma adjustments to operating expenses consist of the following:

Restructuring and other charges $ (2,261)
$ --

Goodwill and intangible impairment (5,996)
--

Total adjustments $ (8,257)
$ --

NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)

Adjusted Pro Forma Income from Continuing Operations Before Income Tax

GAAP Information
Nine Months Ended December 31, Adjusted Pro Forma Information
Nine Months Ended December 31,

2011 % of
sales 2010 % of
sales 2011 % of
sales 2010 % of
sales
Net sales $ 364,081
$ 366,593
$ 364,081
$ 366,593
Gross profit (1) 34,022 9.3% 49,550 13.5% 42,816 11.8% 49,550 13.5%
Operating expenses (2) 50,359 13.8% 43,163 11.8% 40,245 11.1% 43,163 11.8%
Income (loss) from operations (16,337)
6,387
2,571
6,387
Other (expense), net (1,374)
(1,896)
(1,375)
(1,896)
Income (loss) from continuing operations before income tax $ (17,711)
$ 4,491
$ 1,196
$ 4,491

Nine Months Ended December 31,

2011
2010

(1) Pro forma adjustments to gross profit consist of the following:

Inventory write-downs $ 1,728
$ --

Software development impairment 1,238
--

Prepaid royalties impairment 5,826
--

Restructuring and other charges 2
--

Total adjustments $ 8,794
$ --

(2) Pro forma adjustments to operating expenses consist of the following:

Restructuring and other charges $ (4,118)
$ --

Goodwill and intangible impairment (5,996)
--

Total adjustments $ (10,114)
$ --

NAVARRE CORPORATION
Supplemental Information
(In thousands)
(Unaudited)

Summary of Impairment and Other Charges by Business Segment

Three Months Ended Nine Months Ended

December 31, 2011 December 31, 2011

Distribution
Segment Publishing
Segment Distribution
Segment Publishing
Segment

Cost of sales $ 441 $ 8,353 $ 441 $ 8,353

Operating expenses 1,649 612 3,311 807

Goodwill and intangible impairment -- 5,996 -- 5,996

Total impairment and other charges (1) $ 2,090 $ 14,961 $ 3,752 $ 15,156

(1) No impairment and other charges were incurred during the three and nine months ended December 31, 2010.

Contact:

Navarre Investor Relations
763-535-8333
ir@navarre.com

Digital River Inc. Fourth Quarter Earnings Sneak Peek

2012-01-30T10:53:00.001-08:00

Digital River, Inc. will unveil its latest earnings on Thursday, February 2, 2012. Digital River provides end-to-end global e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets.

Digital River, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 23 cents per share, a rise of 15% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 22 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 22% versus last year to 61 cents.

Past Earnings Performance: Last quarter, the company reported net income of 19 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Wall St. Revenue Expectations: On average, analysts predict $104.5 million in revenue this quarter, a rise of 7% from the year ago quarter. Analysts are forecasting total revenue of $390.3 million for the year, a rise of 7.4% from last year’s revenue of $363.2 million.

Analyst Ratings: Analysts seem relatively indifferent about Digital River with seven of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 5.9% to $5.5 million (15 cents a share) from $5.9 million (15 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 12.3% to $95.4 million from $85 million.

Key Stats:

The company’s revenue has risen for two straight quarters. In the second quarter, the figure rose 13.1%.

Competitors to Watch: Microsoft Corporation , Akamai Technologies, Inc. , EasyLink Services Intl. Corp. , PFSweb, Inc. , eBay Inc. , GSI Commerce, Inc. , Oracle Corporation , Premiere Global Services, Inc. , Tier Technologies, Inc. , and Symantec Corporation .

Stock Price Performance: During October 31, 2011 to January 27, 2012, the stock price had fallen $2.15 (-11.7%) from $18.33 to $16.18. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 9.5% (+$2.92) over that span. It saw one of its worst periods between April 6, 2011 and April 20, 2011 when shares fell for 11-straight days, falling 9.2% (-$3.53) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Q3 2012 Navarre Corp (NAVR) Earnings Release - Today After Market Close

2012-01-30T10:52:00.001-08:00

Value Vision International (VVTV) to Outperform?

2012-01-27T08:23:00.000-08:00

Zacks Equity Research has upgraded their recommendation on Liberty Interactive Corp. (NasdaqGS:LINTA - News) to Outperform backed by their assessment that the TV home shopping business will flourish in the near future as the global economy is expected to gradually stabilize compared with massive fluctuations in the previous year. The company’s third quarter of 2011 financial results outperformed the Zacks Consensus Estimates.

Is this what we can expect from VVTV? If so, today's stock price may be a real bargain.

We welcome our readers thoughts. Care to leave a comment?

Can Caribou Coffee (CBOU) deliver the same jolt?

2012-01-27T08:15:00.000-08:00

Starbucks Corp Earnings: Profits Climb By Double Figures Again

We welcome your comments!

A New Audio Interview with John Mitola, President of Juhl Wind, Inc. is Now at SmallCapVoice.com

2012-01-26T11:30:00.001-08:00

AUSTIN, Texas, Jan. 26, 2012 /PRNewswire/ -- SmallCapVoice.com, Inc. announced today that a new audio interview with Juhl Wind, Inc. (OTCBB: JUHL), the Leader in Community Wind Power, is now available. The interview highlights Juhl's growth initiatives, acquisition strategy and recent geographical expansion with the signing of a development services agreement with upstate NY's Black Oak Wind Farm.

The interview can be heard at http://smallcapvoice.com/blog/1-24-12-smallcapvoice-interview-with-juhl-wind-inc-otcbb-juhl

SmallCapVoice.com is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients' financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit http://www.smallcapvoice.com/services.html.

About Juhl Wind, Inc.

Juhl Wind is an established leader in Community Based Wind Power development and management, focused on wind farm projects throughout the United States and Canada. Juhl Wind pioneered Community-Based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms. To date, the Company has completed 21 wind farm projects and provides operations management and oversight across the portfolio. Juhl Wind services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance. With its consolidation of the Valley View, Winona County and Woodstock Hills wind farms, the Company has now invested in and operates 21.7 MWs of wind power through its independent power producer ("IPP") subsidiary, Juhl Renewable Asset, Inc. Through its Next Generation Power Systems subsidiary ("NextGen"), Juhl Wind also provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. Juhl Wind is based in Pipestone, Minnesota and is traded on the OTCBB under the symbol JUHL. Additional information is available at the Company's website at www.juhlwind.com or by calling 877-584-5946 (or 877-JUHLWIN).

FORWARD LOOKING STATEMENTS

This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Wind's current expectations about its future results, performance, prospects and opportunities. Juhl Wind has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Wind and are subject to a number of risks, uncertainties and other factors that could cause Juhl Wind's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to any specific projects, prospective acquisitions and wind farm assets mentioned herein. New projects are subject to large, third party risks that may not be in control of Juhl Wind including the timing of funding and actual construction. While new wind farms noted from time to time are large-scale construction projects, Juhl Wind may not be the primary contractor for the provision of certain services, as it is in certain of its other projects. These risks are referenced in Juhl Wind's current 10K or as may be described from time to time in Juhl Wind's subsequent SEC filings; and such factors as incorporated by reference.

Follow Juhl Wind, Inc. on Facebook HERE!

For more information, contact:

Juhl Wind Investor Relations

Jody Janson

Phone: (888) 438-JUHL (or 888-438-5845)

Email: jody@istockdaily.com

Contact for SmallCapVoice.com:

Stuart T. Smith

512-267-2430

info@smallcapvoice.com

C.H. Robinson Worldwide Inc. Fourth Quarter Earnings Sneak Peek

2012-01-26T11:29:00.000-08:00

S&P 500 component C.H. Robinson Worldwide, Inc. will unveil its latest earnings on Tuesday, January 31, 2012. CH Robinson Worldwide is a third party logistics company which provides freight transportation and logistics solutions to a variety of clients.

C.H. Robinson Worldwide, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 68 cents per share, a rise of 9.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 13.7% versus last year to $2.65.

Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting profit of 70 cents per share in the third quarter to fall in line with expectations, the company beat estimates by 2 cents in the second quarter.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Wall St. Revenue Expectations: On average, analysts predict $2.63 billion in revenue this quarter, a rise of 12.9% from the year ago quarter. Analysts are forecasting total revenue of $10.39 billion for the year, a rise of 12.1% from last year’s revenue of $9.27 billion.

Analyst Ratings: Analysts seem relatively indifferent about C.H. Robinson Worldwide with 15 of 24 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 11.4% to $114.3 million (70 cents a share) from $102.6 million (62 cents a share) the year earlier, meeting analyst expectations. Revenue rose 11.3% to $2.69 billion from $2.42 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 12.9%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 15.8% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 14.2% in the second quarter and 15.5% in the first quarter.

Competitors to Watch: UTi Worldwide Inc. , Expeditors Intl. of Washington , Pacer International, Inc. , Hub Group, Inc. , Roadrunner Transportation Services Hold. , Echo Global Logistics, Inc. , Vitran Corp., Inc. , United Parcel Service, Inc. , and J.B. Hunt Transport Services, Inc. .

Stock Price Performance: During November 25, 2011 to January 25, 2012, the stock price had risen $4.79 (7.6%) from $63.32 to $68.11. The stock price saw one of its best stretches over the last year between March 23, 2011 and April 4, 2011 when shares rose for nine-straight days, rising 5.9% (+$4.17) over that span. It saw one of its worst periods between July 25, 2011 and August 2, 2011 when shares fell for seven-straight days, falling 13.3% (-$10.70) over that span.

Story courtesy of Wall Street Cheat Sheet.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Juhl Wind, Inc. Announces Completion and Start-Up of Community Wind Farm Project for Gundersen Health System

2012-01-25T09:16:00.001-08:00

PIPESTONE, Minn., Jan. 24, 2012 /PRNewswire/ -- Juhl Wind Inc. (OTCBB: JUHL.OB - News), the Leader in Community Wind Power, today announced the official commercial start-up and operation of the two turbine project for Gundersen Health System in Winona County, MN. The 4.95 megawatt project (the "GL Wind project") is the first-of-its-kind in North America to be constructed specifically to address the energy concerns of a large regional health organization, in this case, Gundersen Health System.

"This unique wind project represents the continued activity by Juhl over the past two years and highlights our strength and diversity in the community wind energy market," stated Corey Juhl, Vice President of Development for Juhl Wind Inc. "We are seeing an increased demand for large commercial and industrial organization projects such as Gundersen's as they fit extremely well within Juhl Wind's area of expertise. This community-based project will provide significant economic benefits to the region. As one piece of their Envision program, the wind farm project will help Gundersen Health System achieve their goal of becoming 100% energy independent by 2014."

"This is an exciting time for Gundersen and our Envision program. This community wind project we have done with Juhl Wind was about two years in the making, and we're happy to report that the turbines are now creating energy," said Jeff Rich, executive director, GL Envision, LLC.

Rich added, "As a healthcare organization, it is important for us to lead by example. Creating renewable energy through programs, like the GL Wind project in Lewiston makes good business sense, creates local jobs during construction and ties directly to our mission of improving the health of the communities we serve. The money we generate from renewable energy projects, like the wind farm, and the money we save through energy conservation can be passed on to patients in the form of lower healthcare costs. The renewable energy projects are also allowing us to improve our environmental footprint in the communities we serve."

SELECT COMFORT CORPORATION TO ANNOUNCE FOURTH-QUARTER AND FULL-YEAR RESULTS

2012-01-20T04:56:00.000-08:00

Minneapolis - (Jan. 19, 2012) - Select Comfort Corporation (NASDAQ: SCSS - News) will release results for the fourth quarter and fiscal 2011 ended Dec. 31, 2011, after close of the regular trading session Wednesday, Feb. 8, 2012.
Management will host its regularly scheduled conference call to discuss the company`s results at 5 p.m. Eastern Time (4 p.m. Central; 2 p.m. Pacific) that day. To listen to the call, please dial (800) 593-9959 (international participants dial (517) 308-9340) and reference the passcode "Sleep." To access the webcast, please visit the investor relations area of the Sleep Number Web site.
The webcast replay will remain available in the investor relations area of the company`s Web site for approximately 60 days.
About Select Comfort Corporation
Select Comfort Corporation (NASDAQ: SCSS - News) is leading the industry in setting a new standard in sleep by offering consumers high-quality, innovative and individualized sleep solutions, which includes a complete line of SLEEP NUMBER^® beds and bedding. The company is the exclusive manufacturer, retailer and servicer of the revolutionary Sleep Number bed, which allows individuals to adjust the firmness and support of each side at the touch of a button. The company offers further personalization through its solutions-focused line of Sleep Number pillows, sheets and other bedding products. And as the only national specialty-mattress retailer, consumers can take advantage of an enhanced mattress-buying experience at one of the approximately 380 Sleep Number stores across the country, online at sleepnumber.com or via phone at (800) Sleep Number or (800) 753-3768.

FSI International Receives Follow-on Orders for Its ANTARES® Systems from a Leading Global Device Manufacturer

2012-01-19T09:15:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- FSI International, Inc. (Nasdaq: FSII - News) announced today that a leading global device producer has placed follow-on orders for its ANTARES^® CryoKinetic Cleaning System. The chip provider currently uses the ANTARES^® System for various particle removal processes and with these orders, is adding capacity for advanced technology generations. The systems are expected to ship in fiscal 2012.*
The ANTARES^® System is a fully automated, single-wafer, CryoKinetic system used for processing 200/300mm wafers with capabilities to remove nanoscale particles. CryoKinetic processing technology is an all-dry, chemical free process that removes particles through impact by high-velocity cryogenic Ar/N₂ aerosol, and reduces defects without damaging the wafer surface, even on copper and porous low-k films. The system’s highly efficient dry cleaning solution can be used for a variety of particle removal applications in FEOL and BEOL. Many of the leading logic device manufacturers worldwide utilize the ANTARES^® System for its defect reduction and yield improvement benefits at 32/28nm and above technology nodes.
FSI International, Inc. is a global supplier of surface conditioning equipment, technology and support services for microelectronics manufacturing. Using the company’s broad portfolio of cleaning products, which include batch and single-wafer platforms for immersion, spray and cryogenic aerosol technologies, customers are able to achieve their process performance flexibility and productivity goals. The company’s support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment. For more information, visit FSI’s website at http://www.fsi-intl.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain “forward-looking” statements (*), including, but not limited to expected shipment of the ANTARES^® Systems in fiscal 2012. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in industry conditions; order delays or cancellations; general economic conditions; changes in customer capacity requirements and demand for microelectronics; the extent of demand for the company’s products and its ability to meet demand; global trade policies; worldwide economic and political stability; the company’s successful execution of internal performance plans; the cyclical nature of the company’s business; volatility of the market for certain products; performance issues with key suppliers and subcontractors; the level of new orders; the timing and success of current and future product and process development programs; the success of the company’s direct distribution organization; legal proceedings; the potential impairment of long-lived assets; and the potential adverse financial impacts resulting from declines in the fair value and liquidity of investments the company presently holds; the impact of natural disasters on parts supply and demand for products; the ability to attract, retain and motivate a sufficient number of qualified employees; as well as other factors listed herein or from time to time in the company’s SEC reports, including our latest 10-K annual report. The company assumes no duty to update the information in this press release.

Contact:

FSI International, Inc.
Benno Sand
Investor and Financial Media
952-448-8936

Juhl Wind, Inc. Selected as Development Partner for Upstate NY's Black Oak Wind Project

2012-01-19T05:31:00.001-08:00

PIPESTONE, Minn., Jan. 17, 2012 /PRNewswire/ -- Juhl Wind, Inc. (OTCBB: JUHL.OB - News), the Leader in Community Wind Power, today announced the signing of a Development Services Agreement with the Black Oak Wind Farm located near Ithaca, NY. The project is a proposed 15 to 30 MW facility with expectation of the project being online during the third quarter 2013. Juhl Wind will be serving as a development partner for the project.
"We are very excited to be expanding our development services outside of the Midwest region. The Black Oak Wind Farm is made up of a group of highly motivated individuals who are looking to bring the Ithaca area its first utility scale Community Wind project and we are honored to have been selected to assist them in doing so," stated Corey Juhl, Vice President of Project Development for Juhl Wind, Inc.
The Black Oak Wind Farm has also teamed up with Val-Add Service Corporation, a South Dakota project management company, whose recent success includes structuring and coordination of a 10.5 MW community-owned wind project in Central South Dakota. "It is exciting to bring to New York a business structure that has worked so successfully for a similar community-owned wind project in South Dakota," said Brian Minish, President of Val-Add Service Corp. "We are also very excited to be working on our first project with Juhl Wind and hope that it is the first of many to come."
"The Black Oak Wind Farm represents a new wrinkle in our development strategy here at Juhl. With the current transmission uncertainty in the Midwest we are actively looking to diversify our development portfolio by adding projects throughout North America and in regions that generally experience higher electric rates," added Juhl Wind President John Mitola. "In addition, partnering with the Val-Add team will give this project a unique opportunity to maximize the amount of local ownership and economic development to Tompkins County."
"We are very pleased to be working with such experienced partners as Juhl Wind and Val-Add Service," said Peter Bardaglio, President of Black Oak Wind Farm, LLC. "Not only do they understand the importance of this project being financially successful but also how to make sure we contribute to the well being of the local economy," Bardaglio added.
About Juhl Wind, Inc.
Juhl Wind is an established leader in Community Based Wind Power development and management, focused on wind farm projects throughout the United States and Canada. Juhl Wind pioneered Community-Based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms. To date, the Company has completed 21 wind farm projects and provides operations management and oversight across the portfolio. Juhl Wind services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance. With its consolidation of the Valley View, Winona County and Woodstock Hills wind farms, the Company has now invested in and operates 21.7 MWs of wind power through its independent power producer "(IPP") subsidiary, Juhl Renewable Asset Inc. Through its Next Generation Power Systems subsidiary ("NextGen'), Juhl Wind also provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. Juhl Wind is based in Pipestone, Minnesota and is traded on the OTCBB under the symbol JUHL. Additional information is available at the Company's website at www.juhlwind.com or by calling 877-584-5946 (or 877-JUHLWIN).
Follow Juhl Wind, Inc. on Facebook HERE!
For more information, contact
Juhl Wind Investor Relations
Jody Janson
Phone: (888) 438-JUHL (or 888-438-5845)
Email: jody@istockdaily.com
About Val-Add Service Corporation
Over the past several years Val-Add Service Corp. has assisted in the development of more than 20 agricultural plants in eight states, as well as working with projects as diverse as ethanol and biodiesel production, soybean crushing, egg-laying, beef processing, fish farming, and dairy production. The combination of project management skills, new entity structure and development experience, along with backgrounds in finance and agricultural business has provided Val-Add Service Corp. a unique ability to analyze and assist new business ventures. Val-Add Service Corp. had helped develop over $1.5 billion dollars in new value-added agricultural ventures. For more information, visit www.val-addservice.com.

Navarre Corporation to Announce Third Quarter Fiscal Year 2012 Results on January 30, 2012

2012-01-17T06:11:00.001-08:00

9:00a ET January 17, 2012 (GlobeNewswire) Navarre Corporation (Nasdaq:NAVR), a leading distributor, provider of complete logistics solutions, and publisher of computer software, today announced that it will report its financial results for the third quarter of its 2012 fiscal year, ended December 31, 2011, following the close of the U.S. financial markets on Monday, January 30, 2012.

The Company will also host a conference call to discuss its third quarter results on Tuesday, January 31, 2012, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). This conference call can be accessed by dialing (866) 202-3048, and utilizing the passcode "71761028", ten minutes prior to the scheduled start time. In addition, a live webcast of this discussion can be accessed through the "Investors" section of the Company's web site located at www.navarre.com. A replay of the conference call will also be available at the Company's web site.

About Navarre Corporation

Navarre(R) is a distributor and provider of complete logistics solutions for traditional and internet-based retail channels. Our solutions support both direct-to-consumer and business-to-business sales. We also publish computer software through our Encore(R) subsidiary. Navarre was founded in 1983 and is headquartered in Minneapolis, Minnesota.

The Navarre Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6839

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Navarre Corporation

CONTACT: Navarre Investor Relations

763-535-8333

ir@navarre.com

Sleep Number Redefines Memory Foam with Launch of Its New m7 Bed

2012-01-13T05:18:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- As consumers look for ways to awaken refreshed, rejuvenated and ready to face the day, they are seeking alternatives to the innerspring mattress and investing in more personalized sleep and comfort. Driven by these insights, SLEEP NUMBER® delivers on this growing demand with the introduction of its latest innovation: the Sleep Number m7 memory foam bed.

The Sleep Number m7 bed redefines memory foam by combining unique technologies as only the Sleep Number brand can do. The exclusive Sleep Number m7 bed offers a memory foam bed that cools, contours and adjusts so each sleeper can realize their coziest, most-personalized sleep ever.

Cools, Contours and Adjusts to Both Sleepers

Three (3) inches of exclusive Sleep Number CoolFit™ foam with gel technology provide a cool, soothing sleeping surface.

CoolFit foam is naturally contouring and more breathable compared to the leading memory foam brand.

Exclusive Sleep Number DualAir™ technology lets sleepers adjust firmness on each side of the mattress for their ideal level of comfort.

“Our goal was to offer everything consumers said they wanted in a memory foam bed,” said Annie Bloomquist, chief product management and merchandise officer at Sleep Number. “So, we leveraged deep consumer insights to offer unique innovations that address customers’ needs. The end result provides customers with an ideal sleep solution for those who prefer memory foam but do not want to compromise on the adjustable comfort that only a Sleep Number bed offers.”

The new Sleep Number m7 bed also has a 12-inch profile with modern styling and soft-knit fabric. The retail price of a queen Sleep Number m7 bed set is $3,199.98. And all Sleep Number beds come with a limited, 20-year warranty.

Sleep Number CoolFit Foam Family of Products

“Sleep Number’s exclusive CoolFit Foam Pillow and CoolFit Foam Layer have been among our best sellers because sleepers are craving cool comfort,” said Bloomquist. “Now we offer a family of head-to-toe CoolFit foam products for further personalization and comfort.”

In-store and Purchase Experience

Sleepers interested in the exclusive and unique Sleep Number m7 bed or other CoolFit foam products can visit one of the more than 380 Sleep Number stores across the country, sleepnumber.com or call (800) Sleep Number or (800) 753-3768.

Target Unveils New Design Partnership Program

2012-01-13T05:15:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- Building on its legacy of making great design accessible to all through innovative retail partnerships, Target Corporation (NYSE:TGT - News) is introducing a new design program, The Shops at Target®. Through this ongoing program, Target will partner directly with the shop owners of specialty stores and boutiques to co-create affordable, limited-edition collections for its guests. The first flight of The Shops at Target, which debuts on May 6 at all Target stores and Target.com, features five exclusive collections across five different product categories.

“One of the reasons our guests love shopping at Target is our design partnerships. They create excitement and leave even the most loyal Target shoppers wondering what we’ll do next,” said Brian Robinson, director of fashion and design partnerships, Target. “With The Shops at Target, we’re building on that sense of discovery by offering our guests a chance to experience one-of-a-kind specialty stores and boutiques through collections that have been specifically tailored to their wants and needs.”

The first flight of The Shops at Target features collections from five different U.S. specialty stores: The Candy Store, Cos Bar, Polka Dog Bakery, Privet House and The Webster. The collections reflect each shop owner’s unique perspective, offering Target’s guests the opportunity to experience each shop’s distinct aesthetic simply by visiting their local Target store or Target.com. With prices ranging from $1 for a nail file to $159.99 for an online-only pouf for the home, the five collections total nearly 400 exclusive products.

Since opening its first stores in 1962, Target has set itself apart from other retailers by offering great design at affordable prices. Target introduced its first design partnership in 1999, through an ongoing collaboration with renowned architect Michael Graves. In 2006, Target put a twist on its successful model with the introduction of GO International, bringing affordable, cutting-edge fashion from high-end runway designers to the masses for a limited-time only. In 2010, Target changed the model yet again by partnering with Liberty of London to create its first limited-edition designer collection spanning multiple departments. To date, the retailer has worked with more than 80 design partners.

About The Shops at Target Collections:

Founded by Diane and Brian Campbell in 2007, The Candy Store, San Francisco’s premier candy boutique, caters to candy lovers’ discovery of nostalgic delights and the latest treats to satisfy every sweet tooth. Inspired by The Candy Store’s curated sweets, Target’s collection features favorites such as Black Licorice Dogs, Gummy Fried Eggs, Jaw Breakers, Caramel Creams and Round Swirl Lollipops.

Lily Garfield opened Cos Bar in 1976 in the resort mountain town of Aspen, Colo., and has since expanded to 12 stores in eight states. Each location exudes that of a European perfumery, boasting a distinguished anthology of globally recognized prestige makeup, skincare, fragrance and men’s grooming brands. Cos Bar brings its unique beauty experience to Target with an exclusive collection of body care products, bath accessories, beauty tools, manicure essentials and cosmetic bags in eye-catching prints.

In 2002, Robert Van Sickle and Deb Gregg opened their first Polka Dog Bakery, a treat boutique for dogs specializing in natural, freshly baked goods and stylish accessories, in Boston. Polka Dog Bakery is translated into a collection at Target with signature doggie delights including General Bow Wow’s Chicken Biscuits, The Big Dig Cheese Biscuits and Snickerpoodles Biscuits, as well as bright and stylish accessories including bowls, balls, collars, harnesses and food mats.

Founders Richard Lambertson and Suzanne Cassano opened Privet House in May 2008 in Warren, Conn., followed by a second location in Greenwich, Conn. Privet House boasts an international collection of antique and vintage furniture, artwork and mirrors for the home and garden. Privet House at Target features a signature line of décor and accessories for the home, garden and table reminiscent of the shop’s charming aesthetic.

The Webster, founded in 2008 by Laure Heriard Dubreuil and Milan Vukmirovic, has become known worldwide as a multi-brand boutique devoted to luxury fashion with an exclusive selection of unique pieces. Located in the heart of Miami Beach, Fla., The Webster offers a highly curated mix of men’s and women’s ready-to-wear, luxury accessories and photography, as well as an entertainment space. The Webster at Target includes apparel and accessories for women, men, kids and baby inspired by the essence and sunshine of Miami, Fla., featuring flamingo and deco prints in shades of coral, navy and green.

The Shops at Target is an ongoing design program with flights planned for 2012 and beyond. In addition to The Shops at Target, Target will continue to offer affordable design through its long-standing design collaborations and stand-alone, limited-edition designer collections, including the highly anticipated Jason Wu for Target, which launches Feb. 5. For more information and updates on The Shops at Target, visit ABullseyeView.com and follow @ABullseyeView on Twitter, #TheShopsatTgt. Visit the following link to view a documentary regarding The Shops at Target: http://youtu.be/MZ34plvb8tU.

Target to launch upscale shops within stores

2012-01-12T09:40:00.001-08:00

Story courtesy of Reuters.

NEW YORK (Reuters) - Target Corp (TGT.N), known to many U.S. shoppers as the place to go for trendy, low-priced merchandise, will soon have shops within its discount stores selling everything from dog treats to high-end home accessories.

Target also confirmed during a presentation on Thursday that it will have 25 stores featuring special displays of Apple Inc (AAPL.O) merchandise, a move that had been speculated about last week.

Target, which is based in Minneapolis, unveiled its "the Shops at Target" concept in New York. Items from boutiques such as Miami's The Webster and San Francisco's The Candy Store will be priced from $1 to $160 and be sold in Target and on its web site for six weeks starting in early May.

Architect and designer Michael Graves's tea kettles and other home goods helped Target pioneer the concept of higher-end partnerships at mass chains back in 1999.

Bulgarian Post Office Joins MoneyGram’s Global Money Transfer Network

2012-01-11T11:38:00.001-08:00

SOFIA, Bulgaria--(BUSINESS WIRE)-- MoneyGram International (NYSE:MGI - News), a leading global money transfer company, announced today it signed an agreement with the Bulgarian Post Office to offer its money transfer services in the Post Office’s 3,000 postal locations throughout Bulgaria. The service is currently live in 165 locations and will expand to 1,000 in 2012. With the addition of the Post Office to MoneyGram’s network in Bulgaria, the company’s services are now available at nearly 1,700 locations throughout the country.

The agreement was announced today at a celebratory event held at the Bulgarian Post Office headquarters in Sofia, featuring remarks by Mr. Deyan Daneshki, head of the Bulgarian Post Office, and Pamela H. Patsley, MoneyGram chairman and CEO.

“We are excited about our relationship with the Bulgaria Post because it enables us to offer our reliable and affordable money transfers through the convenience of the Post locations,” said Patsley. “Working with agents like the Bulgarian Post Office is aligned with our strategy of enhancing the availability of our products to all consumers whether they live in their home country or abroad. With this agreement, MoneyGram now works with 27 national Post Office networks in many countries such as Canada, Italy, UK and India.”

During the news conference, Patsley marked the occasion and the company’s commitment to the people of Bulgaria with a $10,000 USD donation to the Bulgarian Christmas Initiative, which provides treatment to seriously ill Bulgarian children and purchases medical equipment for children's hospitals and clinics.

MoneyGram provides consumers with an efficient, reliable and fast method for transferring funds in as little as 10 minutes. This agreement makes it possible for consumers in Bulgaria to use MoneyGram’s services at Bulgarian postal locations to send or receive money from its network of more than 256,000 locations.

"Many of our citizens are migrants who live across the European continent, in the United States and Canada, and sending money is a regular occurrence for them,” noted Mr. Deyan Daneshki, head of the Bulgarian Post Office. “This alliance will provide them convenience and access to services that our customers need and rely on.”

The Bulgarian Post Office provides MoneyGram consumers with locations that have extensive opening hours and thousands of locations throughout the country, including remote or rural areas. It also provides the option to deliver money to the receiver’s home.

MoneyGram’s network in Bulgaria consists of a combination of widely respected financial institutions such as Unicredit Bulbank, DSK bank, Raiffeisen Bank, First Investment Bank, MKB Unionbank, Commercial Bank Allianz, Piraeus Bank Bulgaria and all branches of Factor I.N. Exchange Bureaus.

According to World Bank, in 2011, remittances from Bulgarians working abroad totaled $1.5 million, an increase of 8 percent from 2010. Additionally, Bulgaria has one of the highest proportions of populations working abroad than any country and remains one of Europe's largest recipients of remittances. Approximately 1.2 million Bulgarians -- 16 percent -- currently live abroad. Bulgaria’s largest communities are based in countries where MoneyGram has a strong and growing presence -- United States, Turkey, Spain, Germany, Greece, Italy, Moldova, and the United Kingdom -- making MoneyGram a valued service among the 192 countries and territories it serves.

About MoneyGram International, Inc.

MoneyGram International, a leading money transfer company, enables consumers who are not fully served by traditional financial institutions to meet their financial needs. MoneyGram offers bill payment services in the United States and Canada and money transfer services worldwide through a global network of more than 256,000 agent locations -- including retailers, international post offices and financial institutions -- in 192 countries and territories. To learn more about money transfer or bill payment at an agent location or online, visit http://www.moneygram.com or connect with us on Facebook.

About Bulgaria Post Office

The Bulgarian Post EAD, established in 1879, is an increasingly profitable company and major postal operator in the Bulgarian market.

Contact:

MoneyGram International

Patty Sullivan, +1-214-303-9923

media@moneygram.com

Supervalu shares drop 11% on wider loss

2012-01-11T09:41:00.001-08:00

C.H. Robinson Worldwide Fourth Quarter 2011 Earnings Conference Call

2012-01-10T07:10:00.001-08:00

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ:CHRW - 新聞), will hold its quarterly conference call to discuss fourth quarter 2011 results on Tuesday, January 31, 2012, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time). The results will be released via press release on Tuesday, January 31, 2012, at approximately 4:15 p.m. Eastern Time.

Hosting the conference call will be John P. Wiehoff, chairman and chief executive officer of C.H. Robinson, and Chad M. Lindbloom, chief financial officer of C.H. Robinson.

Presentation slides and a simultaneous audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s Web site at www.chrobinson.com.

The webcast is also being distributed through the Thomson StreetEvents Network.

To participate in the conference call by telephone, please call ten minutes early by dialing 877-941-6009. Callers should reference the conference ID, which is 4504485. The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investor Relations link on the company’s Web site at www.chrobinson.com. An audio replay will also be available by telephone until 12:59 a.m. Eastern Time on February 3 by calling 800-406-7325 and dialing the passcode 4504485#.

About C.H. Robinson Worldwide

Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the world’s largest providers of multimodal transportation services and logistics solutions, serving over 36,000 customers through a network of over 230 offices in North America, Europe, Asia, South America, Australia and the Middle East. For more information about our company, visit our Web site at www.chrobinson.com.

Contact:

C.H. Robinson Worldwide, Inc.

Investor Relations

Angie Freeman, 952-937-7847

angie.freeman@chrobinson.com

Digital River Sets Date and Time for Fourth Quarter and Full Year Earnings Release

2012-01-09T13:17:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, announced that it plans to release financial results for its fiscal fourth quarter and full year of 2011 after the close of regular market trading on Thursday, Feb. 2, 2012. The company will host a live conference call at 4:45 p.m. Eastern Standard Time (EST) on Feb. 2, 2012, to review fourth quarter and full year financial results. The call will feature remarks by Digital River’s executive management.

A live webcast of Digital River’s earnings conference call can be accessed on the Investor Relations section of its corporate website. Alternatively, a live broadcast of the call may be heard by dialing (877) 303-3145 inside the United States or Canada, or by calling +1 (408) 427-3861 from international locations and using conference ID #38649790. A webcast replay of the call will be archived on Digital River’s corporate website.

Apple to open mini-stores in Target

2012-01-09T04:56:00.001-08:00

Business Courier

Date: Monday, January 9, 2012, 6:49am EST

Apple Inc. plans to open a "store-within-a-store" in dozens of Target Corp. locations this year, according to a report in the Web site AppleInsider.

The computer giant will operate Apple-branded mini-stores in 25 larger Target stores in cities that can't support a standalone Apple Store. Cincinnati's Apple store is in the Kenwood Towne Centre.

FSI International receives orders for multiple Anteres Systems

2012-01-06T08:08:00.001-08:00

FSI announced that a leading device producer has placed orders for multiple Anteres CryoKinetic Cleaning Systems, further broadening the platform's installed base. The chip provider currently uses the Anteres System for various particle removal processes and with this order, is adding capacity for advanced technology generations. The systems are expected to ship in FY12.

C.H. Robinson downgraded to Sector Perform from Outperform at RBC Capital

2012-01-05T08:23:00.001-08:00

Juhl Wind, Inc. Announces Receipt of $1.4 Million U.S. Stimulus Grant for the Winona County Wind Project

2012-01-05T07:22:00.003-08:00

WOODSTOCK, Minn. , Jan. 4, 2012 /PRNewswire/ -- Juhl Wind Inc. (OTCBB: JUHL.OB - News), the Leader in Community Wind Power, today announced the receipt of approximately $1,413,000 in U.S. Stimulus Grant funds for its recently completed $4.8 million Winona County Wind Project in Winona County , MN. The grant was issued by the U.S. Treasury Department in accordance with the American Recovery and Reinvestment Act of 2009. The proceeds of the grant primarily went toward payment of construction costs for the project, now owned by the company's Juhl Renewable Assets Inc. subsidiary.

The Winona County Wind project was completed and put into commercial operation in the fourth quarter 2011. It is one of six wind farm projects that Juhl Wind has completed in the past 24 months, together these properties represent over $150 million in project development. It is one of the first sites in North America to utilize two Unison, direct-drive wind turbine generators – a leading technology based on an advanced, gearless system. The project was developed and constructed by Juhl Energy Development Inc., the wholly-owned, development subsidiary of Juhl Wind Inc., with initial project participation by the Winona County Economic Development Authority.

"We are very proud to once again have another one of our projects successfully participate in the U.S. Stimulus Grant program," stated Dan Juhl , Chairman and CEO of Juhl Wind, Inc. "The U.S. Stimulus program has provided very important support for the continuing growth of our Community Wind projects throughout the Midwestern United States. Community-owned wind farms not only deliver a totally clean and low-cost energy resource, but also help truly secure our U.S. energy future by keeping the ownership of this resource in the hands of American farmers and landowners. To us at Juhl Wind, this seems like the right place for our tax dollars to be put to work. As a result of this program, we have been able to get our community wind projects financed in the face of a very difficult recession, creating tangible short and long-term economic development in the heart of rural America. Accordingly, we are pleased to have created construction jobs and permanent work while at the same time helping to secure our energy future."

About Juhl Wind Inc.

Juhl Wind is an established leader in Community Based Wind Power development and management, focused on wind farm projects throughout the United States and Canada. Juhl Wind pioneered community-based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms. To date, the Company has completed 21 wind farm projects and provides operations management and oversight across the portfolio. Juhl Wind services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance. With its consolidation of the Valley View, Winona County and Woodstock Hills wind farms, the Company has now invested in and operates 21.7 MWs of wind power. Through its Next Generation Power Systems subsidiary ("NextGen'), Juhl Wind also provides full sales and service to smaller, on-site wind and solar projects in addition to our larger Community Wind Farms. Juhl Wind is based in Pipestone, Minnesota and is traded on the OTCBB under the symbol "JUHL". Additional information is available at the Company's website at www.juhlwind.com or by calling 877-584-5946 (or 877-JUHLWIN).

Follow Juhl Wind, Inc. on Facebook HERE!

For more information, contact:

Juhl Wind Investor Relations

Jody Janson

Phone: (888) 438-JUHL (or 888-438-5845)

Email: jody@istockdaily.com

FORWARD LOOKING STATEMENTS

This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Wind's current expectations about its future results, performance, prospects and opportunities. Juhl Wind has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Wind and are subject to a number of risks, uncertainties and other factors that could cause Juhl Wind's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to the projects mentioned herein. New projects are subject to large, third party risks that may not be in control of Juhl Wind including the timing of funding and actual construction. Revenue estimates for all wind farms owned and operated by Juhl Wind Inc. are subject to variations due to turbine availability, actual wind available on an annual basis and other operating risks outlined in company filings. These risks are referenced in Juhl Wind's current 10K or as may be described from time to time in Juhl Wind's subsequent SEC filings; and such factors as incorporated by reference.

Digital River B2B E-Commerce Expert to Speak at Affiliate Summit West 2012

2012-01-05T07:22:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- Digital River, Inc. (NASDAQ: DRIV), a leading provider of global e-commerce solutions, announced George Hansen, director of sales for Digital River oneNetworkDirect, will participate in a panel discussion at the Affiliate Summit West 2012, which takes place Jan. 8-10, 2012, in Las Vegas, Nev., at Caesars Palace Las Vegas.

The panel titled, “How to Make Business-to-Small Business (B2sB) Profitable,” will provide an opportunity for affiliates and publishers to explore strategies for lead generation and learn about best practices for B2sB product promotion, messaging and customer outreach. The panel will also focus on the top 10 things affiliates can do to “earn in” B2sBs. Hansen will share insight and ideas based on Digital River’s experience helping some of the industry’s most successful affiliates with their e-commerce B2sB initiatives.

The “How to Make B2sB Profitable” panel discussion will be held in the Emperors II room at Caesars Palace from 11:30 a.m. to 12:30 p.m. MST on Jan. 10, 2012. In addition to speaking at the conference, Digital River will exhibit at booth 301/303.

The Affiliate Summit was founded in 2003 to provide educational sessions on the latest industry issues and to foster a productive networking environment for affiliate marketers. Affiliate Summit West will include an exhibit hall with affiliate merchants, vendors and networks, as well as multiple tracks of educational sessions. For more information regarding the conference agenda, visit Affiliate Summit West 2012 Agenda.

About Digital River, Inc.

Digital River, Inc., a leading provider of global e-commerce solutions, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running an e-commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.

Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website, call +1 952-253-1234, or follow the company on Twitter.

Digital River is a registered trademark of Digital River, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.

Caribou Coffee to Present at the 14th Annual ICR XChange Investor Conference

2012-01-05T07:21:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- Caribou Coffee Company, Inc. (NASDAQ: CBOU - News), the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses, announced today that Michael Tattersfield, President and Chief Executive Officer, and Tim Hennessy, Chief Financial Officer, will present the Company at the 14th Annual ICR XChange Investor Conference at The Fontainebleau Hotel Miami Beach Hotel in Florida.

The presentation will be held on Thursday, January 12, 2012 and will begin at 9:00 a.m. Eastern Time. To access the presentation, please visit www.cariboucoffee.com under the "Investors" tab or the ICR XChange website at www.icrxchange.com under the “Webcast” tab. The webcast will also be archived on both websites.

ABOUT THE COMPANY

Founded in 1992, Caribou Coffee Company is one of the leading branded coffee companies in the United States, with a compelling multi-channel approach to their customers. Based on the number of coffeehouses, Caribou Coffee is the second largest company-operated premium coffeehouse operator in the United States. As of October 2, 2011, the Company had 559 coffeehouses, including 150 franchised locations, in 20 states, the District of Columbia and nine international markets. The Company's coffeehouses aspire to be the community place loved by guests who are provided an extraordinary experience that makes their day better. Caribou Coffee provides the highest quality handcrafted beverages, foods and coffee lifestyle items with a unique blend of expertise, fun and authentic human connection in a comfortable and welcoming coffeehouse environment. In addition, Caribou Coffee's unique coffees are available within grocery stores, mass merchandisers, club stores, office coffee and foodservice providers, hotels, entertainment venues and e-commerce channels. Caribou Coffee is a proud recipient of the Rainforest Alliance Corporate Green Globe Award and is committed to operating practices that promote sustainability and environmental protection. For more information, visit the Caribou Coffee web site at www.cariboucoffee.com.

Contact:

Caribou Coffee Company, Inc.

Raphael Gross, 203-682-8253

ir@cariboucoffee.com

Select Comfort (SCSS) appears poised for breakout?

2011-12-20T12:21:00.000-08:00

With a close above $21.14 to $22.19 on above average volume, look for shares of SCSS to soar to $25 or better.

Q1 2012 FSI International Inc Earnings Release - After Market Close

2011-12-20T09:37:00.001-08:00

General Mills Reports Results for Fiscal 2012 Second Quarter

2011-12-20T08:17:00.001-08:00

7:00a ET December 20, 2011 (Business Wire) General Mills (NYSE: GIS) today reported results for the second quarter and first half of fiscal 2012.

Fiscal 2012 Second-quarter Financial Summary

-- Net sales grew 14 percent to $4.62 billion. The international Yoplait acquisition completed on July 1, 2011 contributed 8 points of net sales growth.

-- Segment operating profit rose 2 percent to $873 million, including significantly higher input costs year-over-year and increased advertising expense.

-- Diluted earnings per share (EPS) totaled 67 cents.

-- Adjusted diluted EPS, which excludes certain items affecting comparability of results, totaled 76 cents, matching the year-ago level.

Net sales for the 13 weeks ended Nov. 27, 2011, grew 14 percent to $4.62 billion. Price realization and mix contributed 3 points of sales growth, and foreign exchange contributed 1 point of growth. Pound volume contributed 10 points of growth, including 14 points of growth from the Yoplait acquisition. Gross margin as a percent of net sales was below year-ago levels due to higher input costs and the change in business mix to include the Yoplait acquisition. Advertising and media expense increased 8 percent in the period. Segment operating profit grew 2 percent to $873 million. Second-quarter net earnings attributable to General Mills totaled $445 million and diluted earnings per share totaled 67 cents. Adjusted diluted earnings per share, which excludes the effects of mark-to-market valuation of certain commodity positions in both fiscal 2012 and 2011, Yoplait integration costs in 2012, and a net benefit from certain tax matters in 2011, totaled 76 cents for the second quarter in each year. (Please see Note 7 to the consolidated financial statements below for a reconciliation of this non-GAAP measure.)

Chairman and Chief Executive Officer Ken Powell said, "General Mills second-quarter results show good net sales growth worldwide. Our Yoplait acquisition fueled a more than 50 percent increase in total international sales. Strong levels of net price realization and product innovation drove sales increases for our established International operations, and for our Bakeries & Foodservice and U.S. Retail business segments. Significantly higher input costs pressured our margins, as expected. But in total, performance for the quarter and year-to-date has us on track to meet the key financial targets we have set for fiscal 2012."

Six-month Financial Summary Through the first six months of fiscal 2012, General Mills net sales grew 12 percent to $8.47 billion, including 6 points of growth from the international Yoplait acquisition. Price realization and mix contributed 5 points of net sales growth, and foreign exchange contributed 1 point of growth. Pound volume contributed 6 points of net sales growth, including 10 points of growth from the Yoplait acquisition. Segment operating profit of $1.60 billion essentially matched year-ago levels. Net earnings attributable to General Mills totaled $850 million and diluted EPS totaled $1.28. Adjusted diluted earnings per share, which excludes mark-to-market effects, Yoplait integration costs, and the net tax benefit a year ago, totaled $1.41 for the first half of 2012 compared to $1.40 in the first half of 2011. (Please see Note 7 below for a reconciliation of this non-GAAP measure.)

U.S. Retail Segment Results Second-quarter net sales for General Mills' U.S. Retail segment grew 3 percent to $2.94 billion. Pound volume reduced net sales growth by 7 points, primarily reflecting lower shipments of items such as flour and dessert mixes, canned and frozen vegetables, and yogurt. Price realization and mix contributed 10 points of net sales growth in the quarter. Segment operating profit of $661 million was 4 percent below prior-year levels, reflecting higher input costs and a 6 percent increase in advertising and media expense.

Net sales for Big G cereals grew 1 percent, including gains from established brands such as Honey Nut Chex and Cinnamon Toast Crunch, and good contributions from new products including Cinnamon Burst Cheerios and Fiber One 80 Calorie cereal. Net sales for the Snacks division grew 20 percent led by Fiber One and Nature Valley snack bar varieties. Sales for the Pillsbury division grew 9 percent with good contributions from Totino's frozen snacks and pizza, Pillsbury refrigerated baked goods, and new Pillsbury frozen breakfast items. Sales for the Baking Products division grew 2 percent, reflecting strong net price realization. Meals division net sales were 2 percent below year-ago levels reflecting lower volume for several product lines, including canned vegetables, frozen entrees, and potato mixes. Yoplait division net sales were 6 percent below year-ago levels as growth from Go-Gurt, Yoplait Greek and Mountain High yogurt was offset by declines on several established product lines. Net sales for Small Planet Foods increased 17 percent led by Cascadian Farm cereals and Larabar fruit and nut energy bars.

Through six months, U.S. Retail net sales grew 3 percent to $5.45 billion. Pound volume reduced net sales growth by 6 points, while price realization and mix contributed 9 points of growth. Segment operating profit declined 4 percent through the first half to $1.25 billion.

International Segment Results Second-quarter net sales for General Mills' consolidated international businesses grew 55 percent to reach $1.16 billion, including 43 points of net sales growth from the Yoplait acquisition. Pound volume contributed 80 points of net sales growth, including 76 points of growth from the Yoplait acquisition. Price realization and mix subtracted 27 points of sales growth, while foreign currency exchange contributed 2 points of growth. On a constant-currency basis, International segment net sales grew 53 percent overall, with sales more than doubling in Europe, and gains of 37 percent in Canada, 20 percent in Latin America and 16 percent in the Asia / Pacific region. (Please see Note 7 below for a reconciliation of this non-GAAP measure.) Advertising and media expense grew 17 percent in the second quarter. International segment operating profit totaled $134 million, up 50 percent from year-ago levels.

Through six months, International segment net sales grew 43 percent to $2.02 billion, including 30 points of growth from the Yoplait acquisition. Pound volume contributed 55 points of growth, foreign exchange contributed 6 points, and price realization and mix subtracted 18 points. Segment operating profit grew 42 percent to $214 million.

Bakeries & Foodservice Segment Results Second-quarter net sales for the Bakeries and Foodservice segment grew 12 percent to $522 million. Pound volume contributed 3 points of net sales growth, and price realization and mix contributed 9 points of growth. Customer channel performance was strong with net sales to convenience stores up 14 percent, sales to foodservice distributors up 11 percent, and sales to bakeries and national restaurant accounts up 12 percent. Segment operating profit of $78 million was consistent with year-ago levels.

Through the first half of fiscal 2012, net sales for Bakeries and Foodservice increased 12 percent to $1.00 billion. Pound volume contributed 1 point of net sales growth, with price realization and mix generating the rest of the sales increase. Segment operating profit totaled $139 million, 7 percent below year-ago levels due to significantly higher input costs and lower grain merchandising earnings.

Joint Venture Summary After-tax earnings from the Cereal Partners Worldwide (CPW) and Haagen Dazs Japan (HDJ) joint ventures totaled $29 million, down from $35 million a year ago primarily due to higher input costs for CPW. Net sales for CPW grew 1 percent in the period and net sales for Haagen Dazs Japan were 2 percent above year-ago levels. Through the first six months of fiscal 2012, after-tax earnings from joint ventures declined 6 percent to $57 million, as good net sales growth was offset by higher input costs.

Corporate Items Unallocated corporate items totaled $155 million of expense in this year's second quarter compared to $29 million of expense a year ago. This primarily reflected differences in the mark-to-market valuation of certain commodity positions, which represented a $94 million net increase in expense in the second quarter of 2012 compared to a $28 million net decrease in last year's second quarter. Excluding mark-to-market effects, unallocated corporate items totaled a net $61 million of expense this year compared to a net $57 million of expense in last year's second quarter. This year's second quarter included $4 million of integration expense for the Yoplait acquisition.

Net interest expense of $87 million was up 7 percent due to higher debt levels following the Yoplait acquisition. The effective tax rate for the second quarter of 2012 was 33.3 percent. Last year's second quarter effective tax rate of 21.7 percent included a net benefit related to two discrete tax matters. Excluding certain items affecting comparability, the second quarter effective tax rate was 33.7 percent this year compared to 33.5 percent a year ago. (Please see note 7 below for a reconciliation of this non-GAAP measure).

Cash Flow Items Cash provided by operating activities totaled $1.15 billion in the first half of 2012, an increase from last year's first-half results due primarily to reduced use of working capital in the period. Capital investments totaled $265 million in the first half of 2012. Dividends paid rose to $400 million, reflecting the increase in the dividend rate year-over-year. During the first half, General Mills repurchased approximately 6 million shares of common stock, including 3 million in the second quarter.

Second-half and Full-year Outlook The company's guidance for the second half of fiscal 2012 calls for double-digit growth in net sales and high single-digit to low double-digit growth in adjusted diluted earnings per share. "Our net sales in the second half will continue to reflect the significant addition of international Yoplait revenues. We also expect our base business to show good sales growth, fueled by strong levels of product innovation and consumer marketing support," Powell said. The company expects its second-half gross margin as a percent of sales will be below year-ago levels, reflecting the shift in business mix to include the Yoplait acquisition as well as the continued pressure of higher input costs year-over-year. Second-half segment operating profit is expected to be above year-ago levels, including a planned increase in advertising and media investment.

The company reaffirmed its full-year fiscal 2012 EPS guidance of $2.59 to $2.61, excluding mark-to-market effects and integration costs for the Yoplait acquisition.

General Mills will hold a briefing for investors today, December 20, 2011, beginning at 8:30 a.m. Eastern time. You may access the web cast from General Mills' internet home page: generalmills.com.

Earnings per share excluding certain items, total company segment operating profit, international net sales excluding foreign currency translation effects, and effective tax rate excluding certain items are each non-GAAP measures. Reconciliations of these measures to their relevant GAAP measures appear in the financial schedules and Note 7 to the attached Consolidated Financial Statements.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements, including the statements under the caption "Second-half and Full-year Outlook," and statements made by Mr. Powell, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in laws and regulations, including labeling and advertising regulations; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, and energy; disruptions or inefficiencies in the supply chain; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.

Consolidated Statements of Earnings and Supplementary Information

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions, Except per Share Data)

Quarter Ended Six-Month Period Ended

------------------------------------------------------ --------------------------------------------------

Nov. 27, Nov. 28, Nov. 27, Nov. 28,

2011 2010 % Change 2011 2010 % Change

------------- ------------- -------------- ------------- ------------- --------------

Net sales $ 4,623.8 $ 4,066.6 13.7 % $ 8,471.4 $ 7,599.7 11.5 %

Cost of sales 3,029.1 2,432.6 24.5 % 5,430.2 4,441.4 22.3 %

Selling, general, and administrative expenses 877.1 810.1 8.3 % 1,684.6 1,573.0 7.1 %

0.7 1.0 NM 0.8 2.0 NM

Restructuring, impairment, and other exit costs

------- ------- ----- ------- ------- -----

Operating profit 716.9 822.9 (12.9 ) % 1,355.8 1,583.3 (14.4 ) %

Interest, net 87.2 81.6 6.9 % 172.6 171.9 0.4 %

------- ------- ----- ------- ------- -----

Earnings before income taxes and after-tax

earnings from joint ventures 629.7 741.3 (15.1 ) % 1,183.2 1,411.4 (16.2 ) %

Income taxes 209.4 160.7 30.3 % 386.9 383.7 0.8 %

After-tax earnings from joint ventures 28.9 34.7 (16.7 ) % 57.2 61.2 (6.5 ) %

------- ------- ----- ---- ------- ------- ----- ----

Net earnings, including earnings attributable

to redeemable and noncontrolling interests 449.2 615.3 (27.0 ) % 853.5 1,088.9 (21.6 ) %

Net earnings attributable to redeemable

and noncontrolling interests 4.4 1.4 NM 3.1 2.9 NM

------- ------- ----- ------- ------- -----

Net earnings attributable to General Mills (a) $ 444.8 $ 613.9 (27.5 ) % $ 850.4 $ 1,086.0 (21.7 ) %

==== ======= ==== ======= ===== ==== == ======= == ======= ===== ====

Earnings per share - basic $ 0.69 $ 0.96 (28.1 ) % $ 1.31 $ 1.68 (22.0 ) %

==== ======= ==== ======= ===== ==== == ======= == ======= ===== ====

Earnings per share - diluted $ 0.67 $ 0.92 (27.2 ) % $ 1.28 $ 1.63 (21.5 ) %

==== ======= ==== ======= ===== ==== == ======= == ======= ===== ====

Dividends per share $ 0.305 $ 0.280 8.9 % $ 0.610 $ 0.560 8.9 %

==== ======= ==== ======= ===== == ======= == ======= =====

Quarter Ended Six-Month Period Ended

------------------------------------------------- -----------------------------------------------

Nov. 27, Nov. 28, Basis Pt Nov. 27, Nov. 28, Basis Pt

Comparisons as a % of net sales: 2011 2010 Change 2011 2010 Change

------------- ------------- ----------- ------------- ------------- -----------

Gross margin 34.5 % 40.2 % (570 ) 35.9 % 41.5 % (560 )

Selling, general, and administrative expenses 19.0 % 19.9 % (90 ) 19.9 % 20.7 % (80 )

Operating profit 15.5 % 20.2 % (470 ) 16.0 % 20.8 % (480 )

Net earnings attributable to General Mills 9.6 % 15.1 % (550 ) 10.0 % 14.3 % (430 )

Quarter Ended Six-Month Period Ended

------------------------------------------------- -----------------------------------------------

Comparisons as a % of net sales excluding Nov. 27, Nov. 28, Basis Pt Nov. 27, Nov. 28, Basis Pt

certain items affecting comparability (b): 2011 2010 Change 2011 2010 Change

------------- ------------- ----------- ------------- ------------- -----------

Gross margin 36.5 % 39.5 % (300 ) 37.5 % 40.2 % (270 )

Operating profit 17.6 % 19.5 % (190 ) 17.6 % 19.5 % (190 )

Net earnings attributable to General Mills 11.0 % 12.5 % (150 ) 11.0 % 12.3 % (130 )

(a) See Note 2.

(b) See Note 7 for a reconciliation of this measure not defined by

generally accepted accounting principles (GAAP).

See accompanying notes to consolidated financial statements.

Operating Segment Results and Supplementary Information

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

Quarter Ended Six-Month Period Ended

------------------------------------------------ ----------------------------------------------

Nov. 27, Nov. 28, Nov. 27, Nov. 28,

2011 2010 % Change 2011 2010 % Change

------------- ------------- -------- ------------- ------------- --------------

Net sales:

U.S. Retail $ 2,938.3 $ 2,850.1 3.1 % $ 5,448.6 $ 5,296.7 2.9 %

International 1,163.3 748.8 55.4 % 2,019.6 1,408.6 43.4 %

Bakeries and Foodservice 522.2 467.7 11.7 % 1,003.2 894.4 12.2 %

------------------------------ ------- ------- -------- - ------- ------- ----- --

Total $ 4,623.8 $ 4,066.6 13.7 % $ 8,471.4 $ 7,599.7 11.5 %

------------------------------ - ------- - ------- -------- - - ------- - ------- ----- --

Operating profit:

U.S. Retail $ 661.4 $ 687.4 (3.8 ) % $ 1,246.6 $ 1,302.0 (4.3 ) %

International 133.5 88.7 50.5 % 214.2 150.7 42.1 %

Bakeries and Foodservice 77.8 77.1 0.9 % 139.2 149.6 (7.0 ) %

------------------------------ ------- ------- -------- - ------- ------- ----- ---- --

Total segment operating profit 872.7 853.2 2.3 % 1,600.0 1,602.3 (0.1 ) %

Unallocated corporate items 155.1 29.3 NM 243.4 17.0 NM

Restructuring, impairment, and

other exit costs 0.7 1.0 NM 0.8 2.0 NM

------------------------------ ------- ------- -------- ------- ------- -----

Operating profit $ 716.9 $ 822.9 (12.9 ) % $ 1,355.8 $ 1,583.3 (14.4 ) %

------------------------------ - ------- - ------- -------- ---- - - ------- - ------- ----- ---- --

Quarter Ended Six-Month Period Ended

------------------------------------------------ ----------------------------------------------

Nov. 27, Nov. 28, Basis Pt Nov. 27, Nov. 28, Basis Pt

2011 2010 Change 2011 2010 Change

------------- ------------- -------------- ------------- ------------- -----------

Segment operating profit as a

% of net sales:

U.S. Retail 22.5 % 24.1 % (160 ) 22.9 % 24.6 % (170 )

International 11.5 % 11.8 % (30 ) 10.6 % 10.7 % (10 )

Bakeries and Foodservice 14.9 % 16.5 % (160 ) 13.9 % 16.7 % (280 )

------------------------------ ------- ---- ------- ---- -------- ---- ------- ---- ------- ---- ----- ----

Total segment operating profit 18.9 % 21.0 % (210 ) 18.9 % 21.1 % (220 )

------------------------------ ------- ---- ------- ---- -------- ---- ------- ---- ------- ---- ----- ----

See accompanying notes to consolidated financial statements.

Consolidated Balance Sheets

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except Par Value)

Nov. 27, Nov. 28, May 29,

2011 2010 2011

----------- ----------- -------------

(Unaudited) (Unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 509.1 $ 566.3 $ 619.6

Receivables 1,510.4 1,299.1 1,162.3

Inventories 1,628.7 1,706.0 1,609.3

Deferred income taxes 20.2 28.5 27.3

Prepaid expenses and other current assets 353.2 416.7 483.5

-------- -------- --------

Total current assets 4,021.6 4,016.6 3,902.0

Land, buildings, and equipment 3,507.4 3,146.1 3,345.9

Goodwill 8,115.9 6,634.7 6,750.8

Other intangible assets 4,795.5 3,740.5 3,813.3

Other assets 1,026.4 840.6 862.5

-------- -------- --------

Total assets $ 21,466.8 $ 18,378.5 $ 18,674.5

=== ======== === ======== === ========

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 1,096.5 $ 826.7 $ 995.1

Current portion of long-term debt 1,732.4 11.7 1,031.3

Notes payable 849.0 1,169.9 311.3

Other current liabilities 1,464.1 1,725.3 1,321.5

-------- -------- --------

Total current liabilities 5,142.0 3,733.6 3,659.2

Long-term debt 5,247.6 5,864.1 5,542.5

Deferred income taxes 1,374.1 965.2 1,127.4

Other liabilities 1,818.4 1,930.8 1,733.2

-------- -------- --------

Total liabilities 13,582.1 12,493.7 12,062.3

-------- -------- --------

Redeemable interest 831.6 - -

Stockholders' equity:

Common stock, 754.6 shares issued, $0.10 par value 75.5 75.5 75.5

Additional paid-in capital 1,318.8 1,294.9 1,319.8

Retained earnings 9,642.2 8,842.1 9,191.3

Common stock in treasury, at cost,

shares of 109.7, 114.1 and 109.8 (3,254.6 ) (3,299.5 ) (3,210.3 )

Accumulated other comprehensive loss (1,204.6 ) (1,273.4 ) (1,010.8 )

-------- - -------- - -------- ---

Total stockholders' equity 6,577.3 5,639.6 6,365.5

Noncontrolling interests 475.8 245.2 246.7

-------- -------- --------

Total equity 7,053.1 5,884.8 6,612.2

-------- -------- --------

Total liabilities and equity $ 21,466.8 $ 18,378.5 $ 18,674.5

=== ======== === ======== === ========

See accompanying notes to consolidated financial statements.

Consolidated Statements of Cash Flows

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

Six-Month Period Ended

--------------------------------

Nov. 27, Nov. 28,

2011 2010

----------- ----------

Cash Flows - Operating Activities

Net earnings, including earnings attributable to redeemable

and noncontrolling interests $ 853.5 $ 1,088.9

Adjustments to reconcile net earnings to net cash

provided by operating activities:

Depreciation and amortization 263.3 230.2

After-tax earnings from joint ventures (57.2 ) (61.2 )

Stock-based compensation 66.2 59.7

Deferred income taxes 39.7 78.5

Tax benefit on exercised options (31.1 ) (56.4 )

Distributions of earnings from joint ventures 36.4 24.3

Pension and other postretirement benefit plan contributions (8.5 ) (5.9 )

Pension and other postretirement benefit plan expense 38.9 36.7

Restructuring, impairment, and other exit costs (income) (1.8 ) (1.4 )

Changes in current assets and liabilities,

excluding the effects of acquisitions (26.6 ) (736.4 )

Other, net (19.6 ) (57.5 )

-------- - ------- -

Net cash provided by operating activities 1,153.2 599.5

-------- -------

Cash Flows - Investing Activities

Purchases of land, buildings, and equipment (264.8 ) (284.3 )

Acquisitions, net of cash acquired (900.1 ) -

Investments in affiliates, net (22.1 ) (1.9 )

Proceeds from disposal of land, buildings, and equipment 1.3 7.2

Exchangeable note (131.6 ) -

Other, net 6.6 12.6

-------- -------

Net cash used by investing activities (1,310.7 ) (266.4 )

-------- - ------- -

Cash Flows - Financing Activities

Change in notes payable 548.8 117.8

Issuance of long-term debt - 500.0

Payment of long-term debt (9.1 ) (3.6 )

Proceeds from common stock issued on exercised options 99.2 185.1

Tax benefit on exercised options 31.1 56.4

Purchases of common stock for treasury (210.8 ) (963.6 )

Dividends paid (399.5 ) (366.3 )

Other, net (0.4 ) (8.5 )

-------- - ------- -

Net cash provided (used) by financing activities 59.3 (482.7 )

-------- ------- -

Effect of exchange rate changes on cash and cash equivalents (12.3 ) 42.7

-------- - -------

Decrease in cash and cash equivalents (110.5 ) (106.9 )

Cash and cash equivalents - beginning of year 619.6 673.2

-------- -------

Cash and cash equivalents - end of period $ 509.1 $ 566.3

===== ======== = =======

Cash Flow from Changes in Current Assets and Liabilities,

excluding the effects of acquisitions:

Receivables $ (205.6 ) $ (235.3 )

Inventories (1.3 ) (348.0 )

Prepaid expenses and other current assets 146.0 (33.2 )

Accounts payable 11.1 16.8

Other current liabilities 23.2 (136.7 )

-------- ------- -

Changes in current assets and liabilities $ (26.6 ) $ (736.4 )

===== ======== = = ======= =

See accompanying notes to consolidated financial statements.

GENERAL MILLS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) The accompanying Consolidated Financial Statements of General Mills,

Inc. (we, us, our, General Mills, or the Company) have been prepared

in accordance with accounting principles generally accepted in the

United States for annual and interim financial information. In the

opinion of management, all adjustments considered necessary for a

fair presentation have been included and are of a normal recurring

nature.

(2) We use captions in our Consolidated Financial Statements as required

by guidance on noncontrolling interests, including "Net earnings

attributable to General Mills," which we have shortened to "Net

earnings" in this release.

(3) During the first quarter of fiscal 2012, we acquired a 51 percent

controlling interest in Yoplait S.A.S. and a 50 percent interest in

Yoplait Marques S.A.S. from PAI Partners and Sodiaal for an

aggregate purchase price of $1.2 billion. We consolidated both

entities into our consolidated balance sheets and recorded goodwill

of $1.5 billion. During the second quarter of fiscal 2012, we

recorded adjustments to certain purchase accounting liabilities that

resulted in a $52 million decrease to goodwill. Indefinite lived

intangible assets acquired include brands of $437 million and $119

million of other intangible assets. Finite lived intangible assets

acquired include franchise agreements of $440 million and customer

relationships of $131 million. The pro forma effects of this

acquisition were not material.

On the acquisition date, we recorded the $264 million fair value of

Sodiaal's 50 percent interest in Yoplait Marques S.A.S. as a

noncontrolling interest on our consolidated balance sheets. On the

acquisition date, we also recorded the $904 million fair value of

Sodiaal's 49 percent interest in Yoplait S.A.S. as a redeemable

interest on our consolidated balance sheets. These euro-denominated

interests are reported in U.S. dollars on our consolidated balance

sheets. Sodiaal has the ability to put a limited portion of its

redeemable interest to us once per year at fair value up to a

maximum of 9 years. We adjust the value of the redeemable interest

through additional paid-in capital on our consolidated balance

sheets quarterly to the redeemable interest's redemption value. As

of November 27, 2011, the redemption value of the redeemable

interest was $832 million.

(4) For the second quarter of fiscal 2012, unallocated corporate

expenses totaled $155 million compared to $29 million in the same

period last year. We recorded a $94 million net increase in expense

related to the mark-to-market valuations of certain commodity

positions and grain inventories in the second quarter of fiscal

2012, compared to a $28 million net decrease in expense in the

second quarter of fiscal 2011.

For the six-month period ended November 27, 2011, unallocated

corporate expenses totaled $243 million compared to $17 million in

the same period last year. We recorded a $132 million net increase

in expense related to the mark-to-market valuations of certain

commodity positions and grain inventories in the six-month period

ended November 27, 2011, compared to a $100 million net decrease

in expense in the six-month period ended November 28, 2010.

(5) Basic and diluted earnings per share (EPS) were calculated as

follows:

Quarter Ended Six-Month Period Ended

---------------------------- ----------------------------

Nov. 27, Nov. 28, Nov. 27, Nov. 28,

In Millions, Except per Share Data 2011 2010 2011 2010

------------------------------------------------------ -------- -------- -------- --------

Net earnings attributable to General Mills $ 444.8 $ 613.9 $ 850.4 $ 1,086.0

------------------------------------------------------ --- -------- --- -------- --- -------- --- --------

Average number of common shares - basic EPS 646.3 642.1 647.1 644.7

Incremental share effect from: (a)

Stock options 14.8 17.1 14.6 17.4

Restricted stock, restricted stock units, and other 4.7 5.3 4.6 5.4

------------------------------------------------------ -------- -------- -------- --------

Average number of common shares - diluted EPS 665.8 664.5 666.3 667.5

------------------------------------------------------ -------- -------- -------- --------

Earnings per share - basic $ 0.69 $ 0.96 $ 1.31 $ 1.68

Earnings per share - diluted $ 0.67 $ 0.92 $ 1.28 $ 1.63

------------------------------------------------------ --- -------- --- -------- --- -------- --- --------

(a) Incremental shares from stock options and restricted stock

units are computed by the treasury stock method.

(6) On November 28, 2011, subsequent to the end of our second quarter of

fiscal 2012, we issued $1.0 billion aggregate principal amount of

3.15 percent notes due in 2021. We intend to use the net proceeds to

repay a portion of our 6.0 percent notes due February 15, 2012,

reduce our commercial paper borrowings, and for general corporate

purposes. Interest on these notes is payable semi-annually in

arrears. These notes may be redeemed at our option at any time prior

to September 15, 2021 for a specified make whole amount and any time

on or after September 15, 2021 at par plus accrued and unpaid

interest to the redemption date. These notes are senior unsecured,

unsubordinated obligations that include a change of control

repurchase provision.

(7) We have included five measures in this release that are not defined

by generally accepted accounting principles (GAAP): (1) diluted

earnings per share excluding mark-to-market valuation of certain

commodity positions and grain inventories ("mark-to-market

effects"), integration costs resulting from the acquisitions of

Yoplait S.A.S. and Yoplait Marques S.A.S. ("acquisition integration

costs"), and income tax effects from changes in uncertain tax items

("uncertain tax items") (collectively, these three items are

referred to as "certain items affecting comparability" in this

footnote), (2) earnings comparisons as a percent of net sales

excluding certain items affecting comparability, (3) total segment

operating profit, (4) net sales growth rates for our International

segment in total and by region excluding the impact of changes in

foreign currency exchange, and (5) effective income tax rates

excluding certain items affecting comparability. We believe that

these measures provide useful supplemental information to assess our

operating performance. These measures are reconciled below to the

measures as reported in accordance with GAAP, and should be viewed

in addition to, and not in lieu of, our diluted earnings per share

and operating performance measures as calculated in accordance with

GAAP.

Diluted EPS excluding certain items affecting comparability

follows:

Six-Month

Quarter Ended Period Ended

---------------------------- ----------------------------

Nov. 27, Nov. 28, Nov. 27, Nov. 28,

Per Share Data 2011 2010 2011 2010

--------------------------------------- -------- ----------- -------- -----------

Diluted earnings per share, as reported $ 0.67 $ 0.92 $ 1.28 $ 1.63

Mark-to-market effects (a) 0.09 (0.03 ) 0.13 (0.10 )

Uncertain tax items (b) - (0.13 ) - (0.13 )

--------------------------------------- -------- ----- ---- -------- ----- ----

Diluted earnings per share, excluding

certain items affecting

comparability (c) $ 0.76 $ 0.76 $ 1.41 $ 1.40

--------------------------------------- -- -------- -- ----- -- -------- -- -----

(a) See Note 4.

(b) Effects of court decisions and audit settlements on uncertain tax

matters.

(c) Items affecting comparability includes integration costs resulting

from the acquisitions of Yoplait S.A.S. and Yoplait Marques S.A.S.

of $3 million after-tax for the quarterly and six-month periods

ended November 27, 2011. The impact is less than $.01 on diluted

earnings per share excluding certain items affecting comparability

for both the quarterly and six-month periods ended November 27, 2011.

Earnings comparisons as a percent of net sales excluding certain

items affecting comparability follows:

Quarter Ended

-----------------------------------------------------------------

In Millions Nov. 27, 2011 Nov. 28, 2010

------------------------------------------------------ --------------------- -----------------------------

Percent of Percent of

Comparisons as a % of Net Sales Value Net Sales Value Net Sales

------------------------------------------------------ ------- ---------- ------------ -----------

Gross margin as reported (a) $ 1,594.7 34.5 % $ 1,634.0 40.2 %

Mark-to-market effects (b) 94.4 2.0 % (28.0 ) (0.7 ) %

------------------------------------------------------ ------- ---------- --- ------- --- ----- ---- ---

Adjusted gross margin $ 1,689.1 36.5 % $ 1,606.0 39.5 %

------------------------------------------------------ --- ------- ---------- --- --- ------- ----- ---

Operating profit as reported $ 716.9 15.5 % $ 822.9 20.2 %

Mark-to-market effects (b) 94.4 2.0 % (28.0 ) (0.7 ) %

Acquisition integration costs (c) 3.9 0.1 % - - %

------------------------------------------------------ ------- ---------- --- ------- ----- ---

Adjusted operating profit $ 815.2 17.6 % $ 794.9 19.5 %

------------------------------------------------------ --- ------- ---------- --- --- ------- ----- ---

Net earnings attributable to General Mills as reported $ 444.8 9.6 % $ 613.9 15.1 %

Mark-to-market effects, net of tax (b) 59.5 1.3 % (17.6 ) (0.4 ) %

Acquisition integration costs, net of tax (c) 3.0 0.1 % - - %

Uncertain tax items (d) - - % (88.9 ) (2.2 ) %

------------------------------------------------------ ------- ---------- --- ------- --- ----- ---- ---

Adjusted net earnings attributable to General Mills $ 507.3 11.0 % $ 507.4 12.5 %

------------------------------------------------------ --- ------- ---------- --- --- ------- ----- ---

Six-Month Period Ended

-----------------------------------------------------------------

In Millions Nov. 27, 2011 Nov. 28, 2010

------------------------------------------------------ --------------------- -----------------------------

Percent of Percent of

Comparisons as a % of Net Sales Value Net Sales Value Net Sales

------------------------------------------------------ ------- ---------- ------------ -----------

Gross margin as reported (a) $ 3,041.2 35.9 % $ 3,158.3 41.5 %

Mark-to-market effects (b) 132.1 1.6 % (99.9 ) (1.3 ) %

------------------------------------------------------ ------- ---------- --- ------- --- ----- ---- ---

Adjusted gross margin $ 3,173.3 37.5 % $ 3,058.4 40.2 %

------------------------------------------------------ --- ------- ---------- --- --- ------- ----- ---

Operating profit as reported $ 1,355.8 16.0 % $ 1,583.3 20.8 %

Mark-to-market effects (b) 132.1 1.6 % (99.9 ) (1.3 ) %

Acquisition integration costs (c) 4.0 - % - - %

------------------------------------------------------ ------- ---------- --- ------- ----- ---

Adjusted operating profit $ 1,491.9 17.6 % $ 1,483.4 19.5 %

------------------------------------------------------ --- ------- ---------- --- --- ------- ----- ---

Net earnings as reported $ 850.4 10.0 % $ 1,086.0 14.3 %

Mark-to-market effects, net of tax (b) 83.2 1.0 % (62.9 ) (0.8 ) %

Acquisition integration costs, net of tax (c) 3.1 - % - - %

Uncertain tax items (d) - - % (88.9 ) (1.2 ) %

------------------------------------------------------ ------- ---------- --- ------- --- ----- ---- ---

Adjusted net earnings attributable to General Mills $ 936.7 11.0 % $ 934.2 12.3 %

------------------------------------------------------ --- ------- ---------- --- --- ------- ----- ---

(a) Net sales less cost of sales.

(b) See Note 4.

(c) Integration costs resulting from the acquisitions of Yoplait S.A.S.

and Yoplait Marques S.A.S.

(d) Effects of court decisions and audit settlements on uncertain tax

matters.

A reconciliation of total segment operating profit to the relevant GAAP measure, operating profit, is included in the Statements of Operating Segment Results.

The reconciliation of International segment and region net sales growth rates as reported to growth rates excluding the impact of foreign currency exchange below demonstrates the effect of foreign currency exchange rate fluctuations from year to year. To present this information, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

Quarter Ended Nov. 27, 2011

-----------------------------------------------------------

Impact of

Percentage Change in Foreign Percentage Change in

Net Sales Currency Net Sales on Constant

as Reported Exchange Currency Basis

--------------------- --------- ---------------------

Europe 130 % 2 pts 128 %

Canada 39 2 37

Asia/Pacific 20 4 16

Latin America 17 (3 ) 20

------------------- ---------- --- --- ----------

Total International 55 % 2 pts 53 %

------------------- ---------- --------- --- --- ---------- ---------

Six-Month Period Ended Nov. 27, 2011

-----------------------------------------------------------

Impact of

Percentage Change in Foreign Percentage Change in

Net Sales Currency Net Sales on Constant

as Reported Exchange Currency Basis

--------------------- --------- ---------------------

Europe 88 % 8 pts 80 %

Canada 28 4 24

Asia/Pacific 22 7 15

Latin America 15 (1 ) 16

------------------- ---------- --- --- ----------

Total International 43 % 6 pts 37 %

------------------- ---------- --------- --- --- ---------- ---------

A reconciliation of the effective income tax rate as reported to the effective income tax rate excluding certain items affecting comparability follows:

Quarter Ended Six-Month Period Ended

------------------------------------------------------------ ---------------------------------------------------------------

Nov. 27, 2011 Nov. 28, 2010 Nov. 27, 2011 Nov. 28, 2010

---------------------------- ------------------------------ ----------------------------- --------------------------------

Pretax Income Pretax Income Pretax Income Pretax Income

In Millions Earnings (a) Taxes Earnings (a) Taxes Earnings (a) Taxes Earnings (a) Taxes

------------------------------------- -------------- ------------ ---------------- ------------ --------------- ------------ ------------------ ------------

As reported $ 629.7 $ 209.4 $ 741.3 $ 160.7 $ 1,183.2 $ 386.9 $ 1,411.4 $ 383.7

Mark-to-market effects (b) 94.4 34.9 (28.0 ) (10.4 ) 132.1 48.9 (99.9 ) (37.0 )

Acquisition integration costs (c) 3.9 0.9 - - 4.0 0.9 - -

Uncertain tax items (d) - - - 88.9 - - - 88.9

------------------------------------- ------ ----- ----- ----- ------- ----- ------- -----

As adjusted $ 728.0 $ 245.2 $ 713.3 $ 239.2 $ 1,319.3 $ 436.7 $ 1,311.5 $ 435.6

------------------------------------- ------ ------ -- ----- ---- ----- -- ----- ------ ------- -- ----- ---- ------- -- -----

Effective tax rate:

As reported 33.3 % 21.7 % 32.7 % 27.2 %

As adjusted 33.7 % 33.5 % 33.1 % 33.2 %

------------------------------------- ----- -- ----- -- ----- -- ----- --

(a) Earnings before income taxes and after-tax earnings from joint

ventures.

(b) See Note 4.

(c) Integration costs resulting from the acquisitions of Yoplait S.A.S.

and Yoplait Marques S.A.S.

(d) Effects of court decisions and audit settlements on uncertain tax

matters.

SOURCE: General Mills

General Mills

Analysts:

Kris Wenker: 763-764-2607

or

Media:

Kirstie Foster: 763-764-6364

iFrogz (ZAGG) Reports Continued Success In Wal-Mart Sidekick Displays

2011-12-20T08:15:00.003-08:00

LOGAN, Utah--(BUSINESS WIRE)-- iFrogz by ZAGG (NASDAQ: ZAGG - News), a company dedicated to the manufacture of innovative digital audio, mobile phone and computing accessories, has expanded its product offerings at 1,500 Wal-Mart® stores nationwide on four unique sidekick displays. The vertical displays represent an increased presence in Wal-Mart for iFrogz (www.iFrogz.com), which first appeared in stores in 2010 with a product from its EarPollution line of headphones.

“iFrogz is very pleased with our growing presence in Wal-Mart stores,” said Jeff Morgan, Vice President of Sales for iFrogz. “We have an excellent working relationship with the retailer, and we look forward to continued strong acceptance of our mobile device accessories at Wal-Mart in the future.”

“ZAGG is very happy with the progress and direction of iFrogz, as demonstrated by the expansion of their footprint at Wal-Mart,” said Robert G. Pedersen II, CEO and Chairman of ZAGG Inc. “iFrogz is a great fit for ZAGG on many levels, and we are working towards bringing even more operational efficiencies from both companies going into 2012.”

iFrogz began its relationship with Wal-Mart in 2010 with one product SKU and has since expanded to 45 active SKUs, with the help of the new sidekick product displays. The first sidekick vertical display was introduced in November and additional sidekicks will be featured throughout December and January 2012 in 1500 Wal-Mart stores. Each sidekick features a different iFrogz product.

In November, the iFrogz sidekick featured a 60-unit display for the Plugz earbuds. The Plugz were released in new packaging, featuring colored cords and new exclusive colors for Wal-Mart, including: mint, graphite, ocean, bubble gum and hornet.

For December, two individual sidekick displays are featured, each holding 48 units. One sidekick features the Luxe™ Micro Bud earbuds with microphone, available in “smart” colors to match the iPad™ Smart Cover colors. A product new to Wal-Mart shelves, the Unique Sync, is the other featured display. A convenient USB-to-device cord with a 30-pin connector, it is available in seven different colors.

The upcoming January sidekick will include a 60-unit display for the original Luxe Bud earbuds. The Luxe Buds will also be available in the “smart” colors of grey, light blue, lime, light orange and light pink.

For more information on iFrogz and its product offerings, please visit www.ifrogz.com.

About iFrogz

iFrogz (www.ifrogz.com) develops innovative accessories for the iPod™, iPhone™, iPad™ and other consumer electronics. iFrogz accessories utilize unique design and innovation, allowing customers to individualize the look of their iPod, iPhone or iPad, while receiving quality protection. iFrogz accessories are distributed globally, online and at various retailers. iFrogz launched in March 2006 and is based in Logan, Utah. iFrogz is a division of ZAGG Inc, (NASDAQ: ZAGG - News), and designs, produces, and distributes cases, earbuds and headphones under the iFrogz™ brands.

About ZAGG, Inc.

ZAGG Inc., based in Salt Lake City, prides itself on offering premium quality and superior service. ZAGG is a market leader in innovative mobile device accessories that protect, personalize, and enhance the mobile experience. The company designs, produces, and distributes branded screen protection, keyboards, keyboard cases, earbuds, mobile power solutions and device cleaning accessories under the family of ZAGG® brands. In addition, the company designs, produces and distributes cases, earbuds and headphones under the iFrogz™ brands in the value-priced lifestyle sector. The company’s products are sold worldwide in leading consumer and electronics retailers, wireless retailers and their affiliates, and through the ZAGG website. For more information, visit ZAGG.com

Contact:

OrangePR

Tenaya Bookout, 317-284-1607 x 2

tenaya@orangepublicrelations.com

FSI International, Inc. Announces Availability of Its December 20 Teleconference on First Quarter Fiscal 2012 Financial Results

2011-12-14T11:23:00.001-08:00

MINNEAPOLIS--(BUSINESS WIRE)-- FSI International, Inc. (Nasdaq: FSII - News), a manufacturer of capital equipment for the microelectronics industry, will release its financial results for first quarter fiscal 2012 on Tuesday, December 20, 2011, after the market close. The company will host a conference call later the same day at 4:30 p.m. Eastern Time (3:30 p.m. Central Time), to discuss the results.

FSI invites all those interested in hearing management’s discussion of its first quarter results to join the call by dialing 888.989.5162 and entering access code 6859863.

About FSI

FSI International, Inc. is a global supplier of surface conditioning equipment, technology and support services for microelectronics manufacturing. Using the company’s broad portfolio of cleaning products, which include batch and single-wafer platforms for immersion, spray and cryogenic aerosol technologies, customers are able to achieve their process performance flexibility and productivity goals. The company’s support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment. For more information, visit FSI’s website at http://www.fsi-intl.com or call Benno Sand, 952.448.8936.

Contact:

FSI International, Inc.

Benno Sand, 952-448-8936

Where To Invest: Select Comfort Works On Base On Base

2011-12-13T05:17:00.001-08:00

Story courtesy of SCOTT STODDARD, INVESTOR'S BUSINESS DAILY Posted 12/12/2011 04:19 PM ET
Featured Stocks

Select Comfort, (SCSS) the maker of Sleep Number adjustable beds, appears to be forming a base-on-base pattern. The potential buy point in the handle is 21.24.

The Minneapolis-based company has the best Composite Rating in the 13-member Retail-Home Furnishings group, which was ranked fifth out of 197 industry groups as of Monday's IBD. It also has the highest Relative Strength Rating in the group.

Select Comfort and other home furniture companies were hit hard during the recession as consumers slashed spending on discretionary purchases such as mattresses.

But the sector is bouncing back. The percentage of holiday shoppers who said they plan to buy furniture or home accessories rose this year for the third straight year, a BIGresearch survey found. Meanwhile, trade groups expect home furnishing sales to rise about 7% this year to almost $95 billion, a three-year high.

After laying off staff and closing unprofitable stores, Select Comfort is now aiming to grow by moving out of its traditional mall locations and opening more of its own stores to better showcase its products. It's also benefiting from a trend away from box-spring beds to the adjustable air-chamber mattresses it specializes in.

EPS is expected to grow 62% in Q4, down from 114%, 82% and 63% in recent quarters. Sales over the past three quarters rose 22%, 16% and 25%. Followers of the CAN SLIM investing strategy like to see quarterly sales increases of 25% or more. The company has no debt.

The stock's Accumulation/Distribution Rating has risen to B from C+ in early November, indicating that demand for the shares is strong. Fund ownership has increased for eight straight quarters and up-down volume is 1.7, well above the neutral 1, another sign that demand is growing.

Get Ready for the Bounce?

2011-12-13T05:14:00.000-08:00

Story courtesy of Motley Fool, click here for the whole story.
Rich Smith December 12, 2011

"Don't catch a falling knife," as the old saw commands. (Pardon my mixing a cutlery metaphor.) The idea of buying a former superstar stock at a discount price certainly has its attractions, but you've got to make sure you catch the haft -- not the blade. That's where Motley Fool CAPS comes in.

Thanks to last week's sell-off, we once again have a chance to stand beneath Mr. Market's silverware drawer in hopes of snagging a bargain. Let's meet today's contenders:

Company

52-Week High

Recent Price

CAPS Rating

(out of 5)

Digital River (Nasdaq: DRIV ) $39.85 $15.27 ****

Intrepid Potash (NYSE: IPI ) $40.22 $21.80 ****

Spansion (Nasdaq: CODE ) $21.60 $8.54 ****

Broadcom (Nasdaq: BRCM ) $47.39 $30.29 ***

U.S. Natural Gas (NYSE: UNG ) $12.96 $7.35 **

Companies selected from the list of stocks hitting new intraday 52-week lows as reported on finviz.com. Recent price and 52-week high provided by Yahoo! Finance. CAPS ratings from Motley Fool CAPS.

The week in weak stocks

After a rough week for investors, markets enjoyed a big bounce Friday -- a bounce thanks to which many stocks managed to (just barely) avoid ending the week at new 52-week lows. But note that I said "many." Not all. Up above, you see five stocks that managed to end the week on a low note despite the last-minute reprieve. What went wrong? The answers range from painfully obvious, to murkily unclear.

Let's start with the easy ones: For years, since the oil and gas industry discovered new ways to frack up the environment, natural gas prices have been tumbling, and taking shares of the U.S. Natural Gas ETF along with them. The more things don't change, the more they stay the same.

Broadcom and Spansion? No mystery there, either. Texas Instruments dropped a bombshell on semiconductor investors of all sorts when it issued a weak Q4 forecast Thursday. Personally, I think investors overreacted, but that doesn't change the fact that these two industry participants became collateral damage to TI's bad news.

Now here's where it gets harder: If Broadcom and Spansion got hurt by somebody else's weak performance, you might have expected Intrepid Potash to be helped by a bullish forecast at fellow ag-industry player Monsanto (NYSE: MON ) , which upped guidance for its own fiscal Q1. Instead, it seems Intrepid got pulled down by the weight of a downgrade that JPMorgan leveled at fertilizer maker Mosaic (NYSE: MOS ) . Sometimes, you just can't win.

And speaking of stocks that just can't win, have you taken a look at Digital River lately? It recently inked a big deal with Panasonic to run e-commerce for its Viera Connect TV service in Europe, and another contract to launch a chain of Cisco Linksys-branded online stores in Europe. Regardless of the good news, and with no bad news in sight, DR stock has continued to slide to new lows. Which brings us to...

The bull case for Digital River

All-Star CAPS member TSIF starts us off with some background on Digital River and why the stock is in such a funk today. Revisiting the last quarterly report, he notes: "Profits were not far out of line, but Digital River did guide down, which is a huge no-no on a high flyer." That said, thanks to that reduced guidance, and the sell-off that ensued, we're now looking at a stock trading "at a near 52 week low, 2X cash to debt ($17 per share in cash), and decent cash flow."

CAPS member gooski1 likes the stock at this level, calling it a "beaten down tech stock," praising its "good cash position relative to debt," and musing that DR could become a "potential buyout target."

I agree. With Digital River's $310 million in net cash to work with, a buyout of Digital River would basically finance itself. Plus, if we net out the company's cash, and focus on ex-cash market cap (enterprise value), we're basically being asked to pay around $255 million for a company that:

collects $384 million in annual revenue (a 0.66 P/S ratio),

$18 million in profit (a 14 P/E),

and, most crucially, a whopping $40 million in free cash flow -- which works out to an ultralow 6.4 ratio on enterprise value-to-free cash flow.

Foolish takeaway

Fools, these kinds of numbers suggest that Digital River would be attractive if it were only growing in, say, the high single digits. But in fact, most analysts on Wall Street expect to see DR get through its current rough patch and go on to post five-year average growth of 16% annually. Charging a mere 6.4 times FCF for this kind of growth seems awfully cheap.

But is it cheap enough that I'm willing to stake my reputation on Digital River outperforming the market from here on out? Actually, yes it is. Right now, I'm heading over to Motley Fool CAPS to rate this stock an "outperform." Feel free to follow along, and jeer loudly if I turn out to be wrong.

A Change in Tides - Featured Research on Spreadtrum Communications, Inc (ADR) and Digital River, Inc.

2011-12-09T08:29:00.001-08:00

NEW YORK, NY--(Marketwire -12/09/11)- Today, www.BollingerReport.com introduced featured coverage of Spreadtrum Communications, Inc (ADR) (NASDAQ: SPRD - News) and Digital River, Inc. (NASDAQ: DRIV - News). Full research reports are available to readers at: www.BollingerReport.com/index.php?sm1=SPRD&sm2=DRIV.

Upcoming macro-economic 'tides of influence' are buoyed by crisis both home and abroad. Spanish and Italian yields continue to climb as efforts by the European Central Bank have stopped short of establishing sovereign bond guarantees for any one country. The result is historic yields and a grave concern for the solvency of interbank lending. Markets were drawn to concerns over domestic policy stalemates producing downgrade risks. Despite the situation, there continues to be unique value and opportunity found within careful discretion.

Bollinger Report screened and selected Spreadtrum Communications, Inc (ADR) for its current position within the technology industry. Spreadtrum Communications, Inc. is a fabless semiconductor company that designs, develops and markets baseband processor, radio frequency (RF) transceiver and turnkey solutions for the wireless communications and mobile television market. A copy of this report featuring Spreadtrum Communications, Inc (ADR) (NASDAQ: SPRD - News) is available at: www.BollingerReport.com/index.php?sm1=SPRD.

Bollinger Report is featuring Digital River, Inc. for its changing role within the technology industry. Digital River, Inc. is engaged in providing end-to-end global e-commerce and marketing solutions to a range of companies in software, consumer electronics, computer games, video games, and other markets. To download researches and analysis on Digital River, Inc. (NASDAQ: DRIV - News) we welcome investors to visit: www.BollingerReport.com/index.php?sm2=DRIV.

About Bollinger Report

Bollinger Report has come to be known among its peers as a trusted source of information for both investors and technical traders. Our online content is continually updated, bringing fresh new researches and analyses to the investment community.

Contact:

Martin Schwartz

Email Contact

www.BollingerReport.com