Safeguard Scientifics Fourth Quarter and Year-End Financial Results Recap, Highlighting Aggregate Partner Company Revenue Growth, Acquisitions and IPOs

Posted by | March 3, 2011

This morning, we announced our fourth quarter and year-end 2010 financial results. In 2010, our aggregate partner company revenue was $403 million, up 54 percent from the previous year. In addition, the well-timed exits from Avid Radiopharmaceuticals and Clarient have strengthened Safeguard’s balance sheet and demonstrated the power of Safeguard’s business model.

In addition, Safeguard’s market capitalization increased nearly 70 percent in 2010, which was on top of a more than 150 percent increase in 2009. Safeguard common stock outperformed Russell 2000, Dow Jones Industrials and the S&P 500 Indices for the second year in a row. The majority of senior convertible debentures were restructured in the spring of 2010, and our debt to equity ratio is expected to be 1:5 at March 31, 2011, compared to the 1:2 that it was at December 31, 2009.

Some highlights from our partner companies:

  • Advanced BioHealing, Inc. (ABH) filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission in preparation for its initial public offering.
  • MediaMath (@MediaMath) launched its enhanced media buying platform, TerminalOne™ (@TerminalOne) with a user interface that allows marketers to directly manage campaigns according to specific objectives. In addition, the company made key strategic hires and acquisitions, the latter of which included Adroit Interactive, to combine, under one roof, the key components of successful banner advertising to drive improved campaign results to advertisers and agencies. Continuing to execute on all cylinders, MediaMath has been aggressively growing its domestic and international operations, opening offices in Los Angeles, Chicago, Boston, Washington, D.C., Ontario, Canada and London. MediaMath’s revenue was up over 150% from the previous year and is expected to continue to grow rapidly in 2011.
  • NuPathe (Nasdaq: PATH) raised $43 million in net proceeds from its initial public offering of common stock in August 2010. The FDA recently accepted NuPathe’s NDA for its lead product candidate, Zelrix™, a single-use transdermal sumatriptan patch being developed to treat acute migraine. Zelrix is the first ever submission to the FDA of a transdermal patch for the treatment of migraine. The company continues to prepare for commercial launch.
  • (@Swap) has grown its user base more than 15x since becoming a Safeguard partner company, and has begun to broaden its merchandise categories to include women’s clothing and to revise its business model to incorporate transaction fees. 

Our pipeline is flush with interesting opportunities.  We continue to focus on life sciences companies in the areas of diagnostics, medical devices, regenerative medicine, specialty pharmaceuticals and selected healthcare business; while in technology, we still pursue Internet and new media, financial tech, healthcare IT and selected business services.  Our deal teams are actively evaluating the potential for several new capital deployments over the near term. In fact, signs of economic growth, as well as improving M&A and IPO markets are encouraging, and we’re optimistic about our prospects for continued success as we look to deploy capital in 2011 and beyond.

If you missed this morning’s call, we’ll be posting the full podcast and transcript to our Investor Relations website over the next few days.

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