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ExamWorks Reports Fourth Quarter and Full Year 2012 Financial Results

ATLANTA, GA -- (Marketwire) -- 02/27/13 -- ExamWorks Group, Inc. (NYSE: EXAM), a leading provider of independent medical examinations ("IMEs"), peer reviews, bill reviews and related services, today reported financial results for the fourth quarter and the full year of 2012.

Q4 and Full Year 2012 Highlights

  • Revenues for the fourth quarter of 2012 were $139.6 million, an increase of $24.3 million, or 21.1%, over the year-ago quarter revenues of $115.3 million. Excluding the impact of acquisitions completed within the past twelve months, organic revenue grew by 5.4% over the prior year quarter.

  • Pro forma revenues for the fourth quarter of 2012 were $142.6 million, an increase of $10.5 million, or 7.9%, over the year-ago quarter pro forma revenues of $132.1 million. Excluding the impact of currency, revenues would have grown by 6.9% over the prior year pro forma quarter. Pro forma revenues assume that acquisitions completed in 2011 and 2012 were completed on January 1, 2010 and 2011, respectively.

  • Adjusted EBITDA for the fourth quarter of 2012 was $20.3 million (14.6% of revenues), an increase of $3.5 million, or 20.8%, over the year-ago quarter adjusted EBITDA of $16.8 million. Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net loss below and is not a substitute for the GAAP equivalent.

  • Revenues for the year ended December 31, 2012 were $521.2 million, an increase of $123.3 million, or 31.0%, over the prior year revenues of $397.9 million. Adjusted EBITDA for the year ended December 31, 2012 was $79.8 million, an increase of 26.1% over the prior year.

  • Pro forma revenues for the year ended December 31, 2012 were $573.7 million, an increase of 5.6%, over the prior year pro forma revenues. Excluding the impact of currency, revenues would have grown by 5.9% over the prior year pro forma period. Pro forma adjusted EBITDA for the year ended December 31, 2012 was approximately $92 million.

  • On December 19, 2012, we completed the acquisition of PMG, based in Southern California, for net cash consideration of $11.8 million. The PMG acquisition increases our market position in the workers' compensation market. On an annual basis, PMG generated revenues of approximately $12.5 million and adjusted EBITDA of approximately $2.5 million. In the fourth quarter of 2012, PMG contributed revenues and adjusted EBITDA of $285,000 and $52,000, respectively.

Commentary

Commenting on today's earnings announcement, James K. Price, Chief Executive Officer of ExamWorks, said: "During 2012, we continued to redefine the IME industry by raising customer expectations for quality and service. We are continuing our investment in developing cloud-based technology that keeps customer data safe and secure and better integrates our customers' processes with ours, thereby increasing connectivity and efficiency. With $574 million and approximately $92 million of pro forma run rate revenue and EBITDA and growing, we will continue raising the bar as we solidify our reputation as the global IME industry leader."

Richard E. Perlman, Executive Chairman of ExamWorks, said: "We are delighted with our financial and operating results, particularly the growth of our U.K. and Australian businesses, as well as the positive trends in our U.S. and Canadian businesses. Our performance reflects the solid execution of our integration, multiple brand, technology and geographic diversification strategies, which combined with our national account focus, will continue to drive increasing revenue and EBITDA growth in 2013 and beyond."

Financial Review

Revenues - For the three months ended December 31, 2012, revenues were $139.6 million, an increase of 21.1% over the $115.3 million in revenues in the fourth quarter of 2011. Excluding the impact of acquisitions completed within the past twelve months, organic revenue grew by 5.4% over the prior year quarter.

For the year ended December 31, 2012, revenues were $521.2 million, an increase of 31.0% over the $397.9 million in revenues in the comparable period of 2011. Excluding the impact of acquisitions completed in 2011 and 2012, organic revenue grew by 3.4% over the comparable prior year period.

Below is a table presenting our pro forma revenues and growth rates for each of the regions that we serve. The numbers presented below are pro forma for the effect of acquisitions completed in 2011 and 2012.


                             Pro Forma Revenues
---------------------------------------------------------------------------
                                     (In thousands except %)
                         Three Months Ended
                            December 31,           Year Ended December 31,
                     --------------------------  --------------------------
                                         Change                      Change
                        2011      2012     (a)      2011      2012     (b)
                     --------- --------- ------  --------- --------- ------
ExamWorks U.S.       $  83,476 $  82,673  (1.0)% $ 345,215 $ 352,817    2.2%
United Kingdom          27,969    35,804   28.0%   111,083   131,279   18.2%
Australia               13,252    16,936   27.8%    49,793    61,474   23.5%
Canada                   7,404     7,139  (3.6)%    37,190    28,166 (24.3)%
                     --------- --------- ------  --------- --------- ------
Total                $ 132,101 $ 142,552    7.9% $ 543,281 $ 573,736    5.6%
                     ========= ========= ======  ========= ========= ======

(a) For the three months ended December 31, 2012 and excluding the impact of
    currency, our growth in the U.K. would have been 25.4%, our growth in
    Australia would have been 24.6%, the decline in Canada would have been
    (6.5)%, and our total growth would have been 6.9%.
(b) For the year ended December 31, 2012 and excluding the impact of
    currency, our growth in the U.K. would have been 19.5%, our growth in
    Australia would have been 23.3%, the decline in Canada would have been
    (23.2)%, and our total growth would have been 5.9%.

In the fourth quarter of 2012, our U.S. businesses generated pro forma revenues of $82.7 million, a (1.0)% decline from the $83.5 million of pro forma revenues generated in the fourth quarter of 2011. In the fourth quarter, our U.S. revenues were negatively impacted by an estimated $3 million as a result of Hurricane Sandy. For the year ended December 31, 2012, our U.S. businesses generated revenues of $352.8 million, a 2.2% increase over the $345.2 million of pro forma revenues generated in the year ended December 31, 2011. The growth was largely due to increased volumes resulting from market share gains.

In the fourth quarter of 2012, our U.K. businesses generated revenues of $35.8 million, a 28.0% increase over the $28.0 million of revenues generated in the fourth quarter of 2011. For the year ended December 31, 2012, our U.K. businesses generated revenues of $131.3 million, an 18.2% increase over the $111.1 million of pro forma revenues generated in the year ended December 31, 2011. The growth was largely due to increased volumes resulting from market share gains.

In the fourth quarter of 2012, our Australian business generated pro forma revenues of $16.9 million, a 27.8% increase over the $13.3 million of pro forma revenues generated in the fourth quarter of 2011. For the year ended December 31, 2012, our Australian business generated pro forma revenues of $61.5 million, a 23.5% increase over the $49.8 million of pro forma revenues generated in the year ended December 31, 2011. The growth was primarily due to increased volumes resulting from market share gains and a change in sales mix.

In the fourth quarter of 2012, our Canadian businesses generated revenues of $7.1 million, a (3.6)% decline from the $7.4 million of pro forma revenues generated in the fourth quarter of 2011. For the year ended December 31, 2012, our Canadian businesses generated pro forma revenues of $28.2 million, a (24.3)% decline from the $37.2 million of pro forma revenues generated in the year ended December 31, 2011. Our Canadian businesses, which generate less than 5% of our total revenues, continue to be negatively impacted by the legislative changes in the province of Ontario, to a much lesser extent in the fourth quarter of 2012.

Costs of revenues - For the three months ended December 31, 2012, costs of revenues were $92.6 million, an increase of 21.8% over the $76.0 million in costs of revenues in the fourth quarter of 2011. The change was primarily due to the acquired costs of revenues for acquisitions completed in 2011 and 2012. Costs of revenues as a percentage of revenues for the fourth quarter of 2012 were 66.3% compared to 65.9% in the fourth quarter of 2011. Included in costs of revenues in the fourth quarter of 2011 and 2012 are $650,000 and $755,000 of share-based compensation expenses, respectively.

Selling, general and administrative expenses ("SGA") - For the three months ended December 31, 2012, SGA expenses were $28.9 million, an increase of 14.2% over the $25.3 million in SGA expenses in the fourth quarter of 2011. The change was primarily due to the acquired SGA expenses for acquisitions completed in 2011 and 2012. Included in SGA expenses in the fourth quarter of 2012 are $439,000 in share-based compensation expenses and $944,000 in acquisition-related transaction and other non-recurring costs. Included in SGA expenses in the fourth quarter of 2011 were $1.8 million in share-based compensation expenses and $413,000 in acquisition-related transaction costs and other non-recurring costs.

Depreciation and amortization expenses ("D&A") - For the three months ended December 31, 2012, D&A expenses were $16.3 million, an increase of 14.0% over the $14.3 million in D&A expenses in the fourth quarter of 2011. The change was primarily due to acquisitions completed in 2011 and 2012. For the three months ended December 31, 2012, depreciation expense was $1.5 million and amortization expense was $14.8 million.

Interest and other expenses, net - For the three months ended December 31, 2012, interest and other expenses, net were $7.8 million, an increase of 13.0% over the $6.9 million in interest and other expenses, net in the three months ended December 31, 2011. Included in interest and other expenses, net in the fourth quarter of 2012 are $7.8 million of interest expenses and deferred loan cost amortization.

Adjusted EBITDA - For the three months ended December 31, 2012, adjusted EBITDA was $20.3 million, an increase of 20.8% over the $16.8 million in adjusted EBITDA in the fourth quarter of 2011.

Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net loss below and is not a substitute for the GAAP equivalent.

Other financial data - We generated $24.8 million of cash flow from operations in 2012, of which $9.7 million was generated in the fourth quarter. We ended the quarter with $8.6 million of cash on hand, approximately $385.0 million of total debt and total leverage of 4.15x. Our total debt consisted of $250.0 million of senior unsecured notes due July 2019, $99.9 million outstanding under the senior secured revolving credit facility, $34.5 million outstanding under the working capital facilities in the U.K., and $575,000 in seller subordinated notes. As of the end of the year, our committed availability under our credit facilities was approximately $180 million, of which approximately $55 million is immediately available and the balance of approximately $125 million is available to fund future acquisitions.

Business Outlook

ExamWorks is providing the following business outlook for the full year and the first quarter of 2013:

  • Full year 2013 reported revenues are expected to increase organically by 5-7% from our 2012 pro forma revenues of approximately $574 million, excluding the effects of currency.

  • Full year 2013 adjusted EBITDA margins are expected to range between 15.5% and 16.5% of reported revenues. The 50 bps change from our prior guidance is the result of significantly higher healthcare costs and employee enrollment into our benefit plans than originally anticipated. On a quarterly basis, adjusted EBITDA margins as a percentage of revenue will fluctuate between 15% and 17%.

  • First quarter 2013 reported revenues are expected to range between $144 million and $148 million.

  • First quarter 2013 reported adjusted EBITDA margins are expected to be approximately 15% of reported revenues.

  • Starting in 2013, we intend to announce acquisitions as they close rather than guiding to an annual number. We believe that this will allow analysts and shareholders to more accurately and consistently model our expected results going forward.

About ExamWorks Group

ExamWorks Group, Inc. is a leading provider of independent medical examinations ("IMEs"), peer and bill reviews and related services. We help our clients manage costs and enhance their risk management processes by verifying the validity, nature, cause and extent of claims, identifying fraud and providing fast, efficient and quality IME services. ExamWorks is focused on providing clients a national presence while maintaining the local service and capabilities they need and expect.

Non-GAAP Financial Measures

In connection with the ongoing operation of our business, our management regularly reviews Adjusted EBITDA, a non-GAAP financial measure, to assess our performance. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, acquisition-related transaction costs, share-based compensation expenses, and other non-recurring costs. We believe that Adjusted EBITDA is an important measure of our operating performance because it allows management, lenders, investors and analysts to evaluate and assess our core operating results from period to period after removing the impact of changes to our capitalization structure, acquisition related costs, income tax status, and other items of a non-operational nature that affect comparability.

We believe that various forms of the Adjusted EBITDA metric are often used by analysts, investors and other interested parties to evaluate companies such as ours for the reasons discussed above. Additionally, Adjusted EBITDA is used to measure certain financial covenants in our credit facility. Adjusted EBITDA is also used for planning purposes and in presentations to our Board of Directors as well as in our incentive compensation programs for our employees.

Non-GAAP information should not be construed as an alternative to GAAP information, as the items excluded from the non-GAAP measures often have a material impact on our financial results. Management uses, and investors should use, non-GAAP measures in conjunction with our GAAP results.

Below is a table presenting a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP measure, for each of the periods indicated.

Forward Looking Statements

Statements made in this press release that express ExamWorks' or management's intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements, which ExamWorks intends to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate," or the negative of these terms or other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements may include information concerning ExamWorks' possible or assumed future results of operations, including descriptions of ExamWorks' revenues, profitability, outlook and overall business strategy. You should not place undue reliance on these statements because they are subject to numerous uncertainties and factors relating to ExamWorks' operations and business environment, all of which are difficult to predict and many of which are beyond ExamWorks' control. Although ExamWorks believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many uncertainties and factors could affect ExamWorks' actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements, including but not limited to: our ability to implement our growth strategy and acquisition program; our ability to integrate completed acquisitions; our expansion into international markets; our ability to secure additional financing; regulation of our industry; our information technology systems; our ability to protect our intellectual property rights and other information; our ability to compete successfully with our competitors; our ability to retain qualified physicians and other medical providers for our medical panel; our ability to retain our clients; our ability to provide accurate health-related risk assessment analyses of data; our ability to retain key management personnel; and restrictions in our credit facility, senior notes indenture and future indebtedness. In addition, the risks discussed in our periodic reports, registration statements and other filings with the Securities and Exchange Commission could cause actual results to differ materially from the results anticipated by forward-looking statements.

You should keep in mind that any forward-looking statement made by ExamWorks herein, or elsewhere, speaks only as of the date on which made. ExamWorks expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in ExamWorks' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

ExamWorks will host a conference call to discuss the results and other matters at 5:00 p.m. Eastern Time. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio software. Interested parties may participate live via telephone by dialing (866) 713-8563 in the U.S. or (617) 597-5311 internationally with access code 50540404. A live webcast of the call is also accessible through the Investor Relations section of the company's web site at http://investorrelations.examworks.com/.

Following the conclusion of the call, a replay of the webcast will be available at the company's web site within two hours. Alternatively, a telephonic replay of the call will be available at 7:00 p.m. Eastern Time, and can be accessed until March 6th, 2013 at midnight Eastern Time, by calling (888) 286-8010 in the U.S. or (617) 801-6888 internationally, with access code 72477425.



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                   Consolidated Statements of Operations
             (In thousands, except share and per share amounts)
                                (Unaudited)

                           For the three months       For the year ended
                            ended December 31,           December 31,
                         ------------------------  ------------------------
                             2011         2012         2011         2012
                         -----------  -----------  -----------  -----------

Revenues:                $   115,312  $   139,637  $   397,860  $   521,237
Costs and expenses:
  Costs of revenues           76,017       92,575      262,242      344,051
  Selling, general and
   administrative
   expenses                   25,348       28,868       84,133      113,510
  Depreciation and
   amortization               14,286       16,306       47,439       58,551
                         -----------  -----------  -----------  -----------
    Total costs and
     expenses                115,651      137,749      393,814      516,112
                         -----------  -----------  -----------  -----------
    Income (loss) from
     operations                 (339)       1,888        4,046        5,125
                         -----------  -----------  -----------  -----------

Interest and other
 expenses, net:
  Interest expense, net        6,558        7,814       15,480       27,968
  Loss on early
   extinguishment of
   debt                            -            -          621            -
  Other income                     -            -            -         (226)
  Gain on interest rate
   swap                          (75)         (56)        (328)        (225)
  Realized foreign
   currency loss                 465            -          688          534
                         -----------  -----------  -----------  -----------

    Total interest and
     other expenses, net       6,948        7,758       16,461       28,051
                         -----------  -----------  -----------  -----------

    Loss before income
     taxes                    (7,287)      (5,870)     (12,415)     (22,926)

Income tax benefit            (2,262)      (3,187)      (4,082)      (7,987)
                         -----------  -----------  -----------  -----------

    Net loss             $    (5,025) $    (2,683) $    (8,333) $   (14,939)
                         ===========  ===========  ===========  ===========

Per Share Data:

  Net loss per share:
    Basic and diluted    $     (0.15) $     (0.08) $     (0.25) $     (0.44)
                         ===========  ===========  ===========  ===========

  Weighted average
   number of common
   shares outstanding:
    Basic and diluted     34,223,906   34,287,093   33,975,658   34,141,098
                         ===========  ===========  ===========  ===========

Adjusted EBITDA          $    16,809  $    20,332  $    63,304  $    79,789
                         ===========  ===========  ===========  ===========



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                        Consolidated Balance Sheets
             (In thousands, except share and per share amounts)
                                (Unaudited)

                                                        December 31,
                                                 --------------------------
                     ASSETS                          2011          2012
                                                 ------------  ------------

Current assets:
  Cash and cash equivalents                      $      8,416  $      8,627
  Accounts receivable, net                            144,041       144,676
  Other receivables                                        40            21
  Prepaid expenses                                      4,487         5,336
  Deferred tax assets                                   1,640            16
  Other current assets                                  1,173         1,213
                                                 ------------  ------------
    Total current assets                              159,797       159,889

Property, equipment and leasehold improvements,
 net                                                    8,918        10,333
Goodwill                                              300,260       370,143
Intangible assets, net                                146,168       152,896
Long-term accounts receivable, less current
 portion                                                    -        31,708
Deferred tax assets, noncurrent                             -         4,173
Deferred financing costs, net                          11,458        10,258
Other assets                                              438         1,101
                                                 ------------  ------------

    Total assets                                 $    627,039  $    740,501
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                               $     42,642  $     46,940
  Accrued expenses                                     28,410        35,995
  Accrued interest expense                             10,247        10,918
  Deferred revenue                                      1,332         3,951
  Current portion of subordinated unsecured
   notes payable                                        1,932           275
  Current portion of contingent earnout
   obligation                                              91            91
  Current portion of working capital facilities             -         5,983
  Other current liabilities                             5,459         5,973
                                                 ------------  ------------
    Total current liabilities                          90,113       110,126

Senior unsecured notes payable                        250,000       250,000
Senior secured revolving credit facility and
 working capital facilities, less current
 portion                                               44,063       128,402
Long-term subordinated unsecured notes payable,
 less current portion                                     717           300
Long-term contingent earnout obligation, less
 current portion                                           86             -
Deferred tax liability, noncurrent                      2,159             -
Other long-term liabilities                             1,977         7,525
                                                 ------------  ------------
    Total liabilities                                 389,115       496,353
                                                 ------------  ------------

Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.0001 par value; Authorized
 50,000,000 shares; no shares issued and
 outstanding at December 31, 2011 and 2012,
 respectively                                               -             -
Common stock, $0.0001 par value; Authorized
 250,000,000 shares; issued and outstanding
 34,090,618 and 34,341,360 at December 31, 2011
 and 2012, respectively                                     3             3
Additional paid-in capital                            268,162       285,938
Accumulated other comprehensive income (loss)          (1,429)        3,183
Accumulated deficit                                   (21,549)      (36,488)
Treasury stock, at cost: Outstanding 805,613 and
 905,349 shares at December 31, 2011 and 2012,
 respectively                                          (7,263)       (8,488)
                                                 ------------  ------------
    Total stockholders' equity                        237,924       244,148
                                                 ------------  ------------

    Total liabilities and stockholders' equity   $    627,039  $    740,501
                                                 ============  ============



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                   Consolidated Statements of Cash Flows
                               (In thousands)
                                (Unaudited)

                                                     For the year ended
                                                        December 31,
                                                 --------------------------
                                                     2011          2012
                                                 ------------  ------------

Operating activities:
  Net loss                                       $     (8,333) $    (14,939)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
    Gain on interest rate swap                           (328)         (225)
    Depreciation and amortization                      47,439        58,551
    Amortization of deferred rent                        (450)          (82)
    Share-based compensation                            7,834        13,756
    Excess tax benefit related to share-based
     compensation                                           -        (2,853)
    Provision for doubtful accounts                     2,297         2,852
    Amortization of deferred financing costs            1,941         2,190
    Deferred income taxes                              (6,364)      (21,201)
    Loss on early extinguishment of debt                  621             -
    Other                                                   -           (31)
    Changes in operating assets and liabilities,
     net of effects of acquisitions:
      Accounts receivable                              (9,047)      (24,666)
      Prepaid expenses and other current assets        (1,801)          (64)
      Accounts payable and accrued expenses            (1,907)        8,300
      Accrued interest expense                         10,240           671
      Deferred revenue and customer deposits             (169)        2,425
      Other liabilities                                (2,430)           93
                                                 ------------  ------------
      Net cash provided by operating activities        39,543        24,777
                                                 ------------  ------------

Investing activities:
    Cash paid for acquisitions, net                  (322,248)     (108,970)
    Purchases of equipment and leasehold
     improvements, net                                 (6,856)       (5,841)
    Working capital and other settlements for
     acquisitions                                      (6,710)          427
                                                 ------------  ------------
      Net cash used in investing activities          (335,814)     (114,384)
                                                 ------------  ------------

Financing activities:
    Borrowings under credit facilities                278,000       170,640
    Excess tax benefit related to share-based
     compensation                                           -         2,853
    Proceeds from the exercise of options and
     warrants                                           2,292         2,258
    Borrowings under senior unsecured notes
     payable                                          250,000             -
    Purchases of treasury stock                        (9,421)         (387)
    Payment of deferred financing costs                (9,746)       (1,074)
    Repayment of subordinated unsecured notes
     payable                                           (2,421)       (2,193)
    Net borrowings (repayments) under working
     capital facilities                                35,621        (6,279)
    Repayment under credit facilities                (273,000)      (76,000)
    Other                                                (440)          (94)
                                                 ------------  ------------
      Net cash provided by financing activities       270,885        89,724
                                                 ------------  ------------

Exchange rate impact on cash and cash
 equivalents                                              178            94

Net increase (decrease) in cash and cash
 equivalents                                          (25,208)          211
Cash and cash equivalents, beginning of year           33,624         8,416
                                                 ------------  ------------
Cash and cash equivalents, end of year           $      8,416  $      8,627
                                                 ============  ============



                   EXAMWORKS GROUP, INC. AND SUBSIDIARIES
                     Reconciliation to Adjusted EBITDA
                               (In thousands)
                                (Unaudited)

                                 For the three months      For the year
                                  ended December 31,    ended December 31,
                                 --------------------  --------------------
                                    2011       2012       2011       2012
                                 ---------  ---------  ---------  ---------

Reconciliation of Adjusted
 EBITDA:

Net loss                         $  (5,025) $  (2,683) $  (8,333) $ (14,939)
  Share-based compensation
   expense (1)                       2,449      1,194      7,834     13,756
  Depreciation and amortization     14,286     16,306     47,439     58,551
  Acquisition-related
   transaction costs                   403        385      3,107      1,655
  Other non-recurring costs             10        559        878        702
  Interest and other expenses,
   net                               6,948      7,758     16,461     28,051
  Benefit for income taxes          (2,262)    (3,187)    (4,082)    (7,987)
                                 ---------  ---------  ---------  ---------
Adjusted EBITDA                  $  16,809  $  20,332  $  63,304  $  79,789
                                 =========  =========  =========  =========

(1) Share-based compensation expense of $755,000 and $3.0 million is
    included in costs of revenues for the three and twelve months ended
    December 31, 2012 and the remainder is included in SGA expenses. Share-
    based compensation expense of $650,000 and $2.0 million is included in
    costs of revenues for the three and twelve months ended December 31,
    2011 and the remainder is included in SGA expenses.

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A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.