• WATERLOO TECH DIGEST - November 2008 (1) (水城百事)

by beebo, Tuesday, December 02, 2008, 09:51

WATERLOO TECH DIGEST -- #141
December 2, 2008

In this issue:
1. Arise revenue jumps, but losses continue
2. MKS sales climb 19%
3. Coreworx looks to cut costs after lowering sales forecasts

4. Descartes quarterly profits top US$2M
5. RDM ends poor year with stronger quarterly sales
6. STOCK REPORT: Com Dev not immune to market woes

7. Miscellaneous tidbits from Crez, Well.ca, Tangam, IMS, LoyaltyMatch,
Com Dev, RIM, ATS, Biorem, TurboSonic, Desire2Learn

ARCHIVES
Read back issues, check stock prices, and find links to area high-tech
companies at: http://www.garywill.com/digest/

WATSTART: THE WATERLOO TECHNOLOGY STARTUP NETWORK
http://www.watstart.ca/
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[1]---------------------------------------------------------------
Arise revenue jumps, but losses continue
November 11, 2008

Arise reported its first significant revenue from the sale of PV cells in
the quarter ended September 30 (Q3 08), boosting total revenue to $15.9
million. Of that, more than 98% was generated by PV cells, with the
balance generated by Arise's traditional systems business.

While the top line was impressive, it didn't translate into better
earnings. Between equipment downtime, off-spec production, breakage, and
other production inefficiencies -- all of which the company expects will
improve in future quarters -- the costs of goods sold exceeded the revenue
they generated, leaving a negative gross profit of $2.6 million. Once
other expenses were added in, Arise lost $8.2 million in the quarter. The
loss takes the company's accumulated deficit to $43.2 million.

Arise also lowered its PV cell sales forecast for the current quarter by
about $6-9 million, but still expects sales to be in the $21-24 million
range.

The company is also looking at a delay of a month or two in the start of
its second production line in Germany. It says that a supplier will not be
able to deliver a key piece of equipment at the originally scheduled time.

Arise estimates that its PV cells would have sold at a gross margin of
about 3% if not for expenses related to being at the beginning of the
learning curve at its new facility in Germany -- which it said added about
$3.1 million in expenses.

Arise expects that it will soon select a site for its silicon
manufacturing plant. A pilot plant is being built in Kitchener, and the
company has narrowed its list of potential sites for a full manufacturing
plant to two locations.

The company ended the quarter with $21.8 million in cash.

[2]---------------------------------------------------------------
MKS sales climb 19%
November 25, 2008

A good quarter for MKS, which reported US$1.4 million in earnings on sales
of US$16.3 million in the quarter ended October 31 (Q2 09). Sales were up
19% from last year and 6% from the previous quarter.

The company spent US$2.5 million to repurchase its own shares in the
quarter, while operations generated US$4.5 million in cash. MKS finished
the quarter with US$10.6 million in cash.

[3]---------------------------------------------------------------
Coreworx looks to cut costs after lowering sales forecasts
November 13, 2008

Coreworx is "revising its operating plans for 2009" to cut costs after it
lowered its projected sales for the year. Even with the cuts, the company
expects that it will need to raise money in 2009. The new funds could come
from its parent company, Acorn Energy, or from new investors, or through a
bank line of credit or a combination of the three.

Coreworx was acquired by Acorn in August. Acorn has warned its investors
that it may be writing down the value of Coreworx in a future quarter.

[4]---------------------------------------------------------------
Descartes quarterly profits top US$2M
November 26, 2008

Descartes earned US$2.3 million on sales of US$17.0 million in the quarter
ended October 31 (Q3 09). Sales were flat from the previous quarter and up
10% from Q3 last year. Descartes has completed four acquisitions over the
past year.

Operations provided US$5.9 million in cash and Descartes finished the
quarter with a hefty US$53.5 in cash on the books.

[5]---------------------------------------------------------------
RDM ends poor year with stronger quarterly sales
November 27, 2008

RDM wrapped up a poor fiscal year with what was probably its best quarter
of 2008 -- certainly the best from a top line perspective. The company
lost $476,000 on sales of $7.5 million in the quarter ended September 30
(Q4 08). Sales were flat from a year ago and up 43% from a weak Q3.

For the year, RDM lost $1.0 million on sales of $26.6 million -- down 22%
from 2007.

The royalty payment made to Data Treasury Corporation -- part of a
settlement of a DTC patent infringement suit brought against RDM in 2003
-- climbed to $1.1 million in 2008, an amount equivalent to 4.2% of all
revenue. The payment was 34% higher than what DTC received from RDM in
2007.