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ARC Document Solutions Reports Results for Second Quarter 2014

WALNUT CREEK, CA -- (Marketwired) -- 08/05/14 -- ARC Document Solutions, Inc. (NYSE: ARC), the nation's leading document solutions provider for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the second quarter ended June 30, 2014.

Quarterly Business Highlights:

  • Q2 Adjusted earnings per share of $0.10 vs. $0.04 in Q2 2013
  • Q2 Gross margin of 36.0%; year-over-year increase of 200 basis points
  • Q2 cash flow from operations increased to $14.0 million from $8.1 million for the same period last year
  • Q2 Adjusted EBITDA margin of 19.1%; year-over-year increase of 160 basis points on higher sales and gross margin
  • Term B Loan principal reduced by $16.5 million as of July 31, 2014; represents payments of $11.5 million more than required
  • Maintains 2014 fully-diluted annual adjusted earnings per share outlook in the range $0.19 to $0.23; outlook for 2014 annual cash provided by operating activities in the range of $51-$56 million, and adjusted EBITDA in the range of $69-73 million

Financial Highlights:
                                     Three Months Ended   Six Months Ended
                                          June 30,            June 30,
                                     ------------------  ------------------
(All dollar amounts in millions,
 except EPS)                           2014      2013      2014      2013
                                     --------  --------  --------  --------
Net Revenue                          $  109.0  $  104.6  $  209.4  $  204.7
Gross Margin                             36.0%     34.0%     34.9%     33.2%
Net Income attributable to ARC       $    4.5  $    0.7  $    5.9  $    1.1
Adjusted Net Income attributable to
 ARC                                 $    4.5  $    1.6  $    6.3  $    2.2
Earnings per share - Diluted         $   0.10  $   0.02  $   0.13  $   0.02
Adjusted earnings per share -
 Diluted                             $   0.10  $   0.04  $   0.13  $   0.05
Adjusted EBITDA                      $   20.9  $   18.3  $   37.0  $   34.3
Cash provided by operating
 activities                          $   14.0  $    8.1  $   21.7  $   20.0
Capital Expenditures                 $    3.0  $    4.4  $    6.6  $   10.0
Debt & Capital Leases (including
 current)                                                $  210.8  $  220.8

Management Commentary

"Our managed print services program continued to perform well in the second quarter, and the rest of the business is stabilizing," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "With exceptional operational performance, we have been able to deliver a strong quarter, generate excellent cash flows, and create an opportunity to aggressively reduce our senior debt."

Chief Operating Officer, Dilo Wijesuriya, said, "We made significant gains with some of our largest prospects and clients during the quarter, and made good progress in placing our technology products and services. The construction market appears to be regaining some of its strength in certain markets, and that will help us in the coming quarters as we leverage the operational improvements we've made since the recession."

"Our revenue improvement was welcome particularly when combined with the fundamental increase in our margins. Ultimately our generation of free cash tells our story best during this period, growing 199% on a year-over-year basis for the quarter," said John Toth, Chief Financial Officer. "We continue to put a high priority on improving our credit quality, and leveraging the upgrade by S&P to pursue further improvements in our capital structure."

2014 Second Quarter Supplemental Information:

Net sales were $109.0 million, a 4.2% increase compared to the second quarter of 2013.

Days sales outstanding in Q2 2014 were 52, compared to 54 days in Q2 2013.

AEC customers comprised approximately 77% of our total net sales, while non-AEC customers made up approximately 23% of our total net sales.

Total number of Onsite Services contracts at the end of the second quarter was approximately 8,000, a gain of nearly 300 contracts from the beginning of the year.

Adjusted EBITDA is EBITDA net of the impact of restructuring costs, stock based compensation, and one-time significant legal expenses.


Sales from Services and Product Lines
 as a Percentage of Net Sales
                                        Three Months Ended  Six Months Ended
                                             June 30,           June 30,
                                       -------------------------------------
Services and Product Line                2014     2013       2014     2013
----------------------------------------------------------------------------
Onsite Services                           31.3%    29.2%      31.3%    29.1%
Traditional Reprographics                 27.8%    29.2%      27.9%    29.4%
Color Services                            21.2%    20.9%      21.2%    20.9%
Digital Services                           8.0%     8.3%       8.0%     8.3%
Equipment and Supplies Sales              11.7%    12.4%      11.6%    12.3%

Outlook:

ARC Document Solutions continues to anticipate annual adjusted earnings per share in 2014 to be in the range of $0.19 to $0.23 on a fully diluted basis. Annual cash flow from operations is expected to be in the range of $51 million to $56 million. Annual adjusted EBITDA is projected to be in the range of $69 million to $73 million.

Teleconference and Webcast:

ARC Document Solutions will host a conference call and audio webcast today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time) to discuss results for the Company's second quarter of 2014. To access the live audio call, dial 888-505-4375. International callers may join the conference by dialing 719-457-2085. The conference ID number is 2162568. A live webcast will also be made available on the investor relations page of ARC Document Solutions' website at www.e-arc.com.

A replay of the call will be available for five days after the call's conclusion. To access the replay, dial 888-203-1112. International callers may access the replay by dialing 719-457-0820. The conference ID number is 2162568. The webcast will also be made available at www.e-arc.com for approximately 90 days following the call's conclusion.

About ARC Document Solutions (NYSE: ARC)

ARC Document Solutions is a leading document solutions company serving businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction industries. The Company helps more than 90,000 customers reduce costs and increase efficiency in the use of their documents, improve document access and control, and offers a wide variety of ways to print, produce, and store documents. ARC provides its solutions onsite in more than 8,000 of its customers' offices, offsite in service centers around the world, and digitally in the form of proprietary software and web applications. For more information please visit www.e-arc.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on current opinions, estimates and assumptions of management regarding future events and the future financial performance of the Company. Words such as "continuing growth," "confidence" "sustainable," and similar expressions identify forward-looking statements and all statements other than statements of historical fact, including, but not limited to, any projections regarding earnings, revenues and financial performance of the Company, could be deemed forward-looking statements. We caution you that such statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. In addition to matters affecting the construction, managed print services, document management or reprographics industries, or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled "Risk Factors" in Item 1A in ARC Document Solution's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.


ARC Document Solutions, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
                                                   June 30,    December 31,
Current assets:                                      2014          2013
                                                 ------------  ------------
  Cash and cash equivalents                      $     24,206  $     27,362
  Accounts receivable, net of allowances for
   accounts receivable of $2,506 and $2,517            63,622        56,328
  Inventories, net                                     16,013        14,047
  Deferred income taxes                                   207           356
  Prepaid expenses                                      4,455         4,324
  Other current assets                                  3,275         4,013
                                                 ------------  ------------
    Total current assets                              111,778       106,430
Property and equipment, net of accumulated
 depreciation of $214,115 and $206,636                 57,923        56,181
Goodwill                                              212,608       212,608
Other intangible assets, net                           26,078        27,856
Deferred financing fees, net                            2,866         3,242
Deferred income taxes                                   1,254         1,186
Other assets                                            2,420         2,419
                                                 ------------  ------------
    Total assets                                 $    414,927  $    409,922
                                                 ============  ============
Current liabilities:
  Accounts payable                               $     25,793  $     23,363
  Accrued payroll and payroll-related expenses         11,698        11,497
  Accrued expenses                                     23,096        21,365
  Current portion of long-term debt and capital
   leases                                              13,859        21,500
                                                 ------------  ------------
    Total current liabilities                          74,446        77,725
Long-term debt and capital leases                     196,977       198,228
Deferred income taxes                                  32,724        31,667
Other long-term liabilities                             3,190         3,163
                                                 ------------  ------------
    Total liabilities                                 307,337       310,783
                                                 ------------  ------------
Commitments and contingencies
Stockholders' equity:
ARC Document Solutions, Inc. stockholders'
 equity:
  Preferred stock, $0.001 par value, 25,000
   shares authorized; 0 shares issued and
   outstanding                                             --            --
  Common stock, $0.001 par value, 150,000 shares
   authorized; 46,751 and 46,365 shares issued
   and 46,682 and 46,320 shares outstanding                46            46
  Additional paid-in capital                          108,525       105,806
  Retained deficit                                     (8,687)      (14,628)
  Accumulated other comprehensive income                  655           634
                                                 ------------  ------------
                                                      100,539        91,858
  Less cost of common stock in treasury, 69 and
   45 shares                                              319           168
                                                 ------------  ------------
    Total ARC Document Solutions, Inc.
     stockholders' equity                             100,220        91,690
Noncontrolling interest                                 7,370         7,449
                                                 ------------  ------------
    Total equity                                      107,590        99,139
                                                 ------------  ------------
    Total liabilities and equity                 $    414,927  $    409,922
                                                 ============  ============



ARC Document Solutions, Inc.
Consolidated Statements of
 Operations
(In thousands, except per share
 data)
(Unaudited)                       Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Service sales                    $  96,198  $  91,628  $ 185,129  $ 179,428
Equipment and supplies sales        12,784     12,994     24,226     25,230
                                 ---------  ---------  ---------  ---------
  Total net sales                  108,982    104,622    209,355    204,658
Cost of sales                       69,775     69,011    136,214    136,668
                                 ---------  ---------  ---------  ---------
  Gross profit                      39,207     35,611     73,141     67,990
Selling, general and
 administrative expenses            28,283     24,891     54,389     48,664
Amortization of intangible assets    1,503      1,699      3,001      3,446
Restructuring expense                  271        636        754      1,108
                                 ---------  ---------  ---------  ---------
  Income from operations             9,150      8,385     14,997     14,772
Other income                           (23)       (35)       (49)       (61)
Interest expense, net                3,944      6,076      7,857     12,117
                                 ---------  ---------  ---------  ---------
  Income before income tax
   provision                         5,229      2,344      7,189      2,716
Income tax provision                   607      1,467      1,271      1,156
                                 ---------  ---------  ---------  ---------
  Net income                         4,622        877      5,918      1,560
(Income) loss attributable to
 noncontrolling interest               (77)      (155)        23       (423)
                                 ---------  ---------  ---------  ---------
  Net income attributable to ARC
   Document Solutions, Inc.
   shareholders                  $   4,545  $     722  $   5,941  $   1,137
                                 =========  =========  =========  =========
Earnings per share attributable
 to ARC Document Solutions, Inc.
 shareholders:
  Basic                          $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
  Diluted                        $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
Weighted average common shares
 outstanding:
  Basic                             46,254     45,901     46,122     45,832
  Diluted                           46,834     46,058     46,759     45,884



ARC Document Solutions, Inc.
Non-GAAP Measures Reconciliation of cash flows
 provided by operating activities to EBIT, EBITDA and
 Adjusted EBITDA
(In thousands) (Unaudited)

                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Cash flows provided by operating
 activities (1)                  $  14,024  $   8,110  $  21,738  $  19,991
  Changes in operating assets
   and liabilities, net of
   effect of business
   acquisitions                        930      4,314      5,159      2,558
  Non-cash expenses, including
   depreciation, amortization
   and restructuring               (10,332)   (11,547)   (20,979)   (20,989)
  Income tax provision                 607      1,467      1,271      1,156
  Interest expense, net              3,944      6,076      7,857     12,117
  (Income) loss attributable to
   the noncontrolling interest         (77)      (155)        23       (423)
                                 ---------  ---------  ---------  ---------
EBIT                                 9,096      8,265     15,069     14,410
  Depreciation and amortization      8,532      8,719     17,025     17,421
                                 ---------  ---------  ---------  ---------
EBITDA                              17,628     16,984     32,094     31,831
  Trade secret litigation
   costs(2)                          2,083         --      2,481         --
  Restructuring expense                271        636        754      1,108
  Stock-based compensation             881        729      1,662      1,321
                                 ---------  ---------  ---------  ---------
Adjusted EBITDA                  $  20,863  $  18,349  $  36,991  $  34,260
                                 =========  =========  =========  =========

(1)  Cash flows provided by operating activities for the three and six
     months ended June 30, 2013 includes cash payments related to
     restructuring of $1.0 million and $2.6 million, respectively. Cash
     flows provided by operating activities for the six months ended June
     30, 2013 includes an income tax refund of $3.8 million received in 2013
     related to our 2009 consolidated federal income tax return. Cash flows
     provided by operating activities for the three and six months ended
     June 30, 2014 includes cash payments for trade secret litigation costs
     of $1.1 million and $1.5 million, respectively, and cash payments
     related to restructuring of $0.3 million and $0.6 million,
     respectively.

(2)  On February 1, 2013, we filed a civil complaint against a competitor
     and a former employee in the Superior Court of California for Orange
     County, which alleged, among other claims, the misappropriation of ARC
     trade secrets; namely, proprietary customer lists that were used to
     communicate with our customers in an attempt to unfairly acquire their
     business. In prior litigation with the competitor based on related
     facts, in 2007 the competitor entered into a settlement agreement and
     stipulated judgment, which included an injunction. We instituted this
     suit to stop the defendant from using similar unfair business practices
     against us in the Southern California market. The case proceeded to
     trial in May 2014, and a jury verdict was entered for the defendants.
     We are considering our appeal options. Legal fees associated with the
     litigation totaled $2.1 million and $2.5 million for the three and six
     months ended June 30, 2014, respectively.




ARC Document Solutions, Inc.
Non-GAAP Measures Reconciliation of net income
 attributable to ARC to unaudited adjusted net income
 attributable to ARC (In thousands, except per share
 data) (Unaudited)


                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Net income attributable to ARC
 Document Solutions, Inc.        $   4,545  $     722  $   5,941  $   1,137
  Restructuring expense                271        636        754      1,108
  Trade secret litigation costs      2,083         --      2,481         --
  Income tax benefit related to
   above items                        (917)      (252)    (1,261)      (431)
  Deferred tax valuation
   allowance and other discrete
   tax items                        (1,469)       542     (1,626)       388
                                 ---------  ---------  ---------  ---------
Unaudited adjusted net income
 attributable to ARC Document
 Solutions, Inc.                 $   4,513  $   1,648  $   6,289  $   2,202
                                 =========  =========  =========  =========

Actual:
Earnings per share attributable
 to ARC Document Solutions, Inc.
 shareholders:
  Basic                          $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
  Diluted                        $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
Weighted average common shares
 outstanding:
  Basic                             46,254     45,901     46,122     45,832
  Diluted                           46,834     46,058     46,759     45,884

Adjusted:
Earnings per share attributable
 to ARC Document Solutions, Inc.
 shareholders:
  Basic                          $    0.10  $    0.04  $    0.14  $    0.05
                                 =========  =========  =========  =========
  Diluted                        $    0.10  $    0.04  $    0.13  $    0.05
                                 =========  =========  =========  =========
Weighted average common shares
 outstanding:
  Basic                             46,254     45,901     46,122     45,832
  Diluted                           46,834     46,058     46,759     45,884




ARC Document Solutions, Inc. Non-GAAP Measures
 Reconciliation of net income attributable to ARC
 Document Solutions, Inc. shareholders to EBIT, EBITDA
 and Adjusted EBITDA
(In thousands) (Unaudited)

                                   Three Months Ended     Six Months Ended
                                        June 30,              June 30,
                                  --------------------  --------------------
                                     2014       2013       2014       2013
                                  ---------  ---------  ---------  ---------
Net income attributable to ARC
 Document Solutions, Inc.
 shareholders                     $   4,545  $     722  $   5,941  $   1,137
  Interest expense, net               3,944      6,076      7,857     12,117
  Income tax provision                  607      1,467      1,271      1,156
                                  ---------  ---------  ---------  ---------
EBIT                                  9,096      8,265     15,069     14,410
  Depreciation and amortization       8,532      8,719     17,025     17,421
                                  ---------  ---------  ---------  ---------
EBITDA                               17,628     16,984     32,094     31,831
  Trade secret litigation costs       2,083         --      2,481         --
  Restructuring expense                 271        636        754      1,108
  Stock-based compensation              881        729      1,662      1,321
                                  ---------  ---------  ---------  ---------
Adjusted EBITDA                   $  20,863  $  18,349  $  36,991  $  34,260
                                  =========  =========  =========  =========

ARC Document Solutions, Inc.
Net Sales by Product Line
(In thousands) (Unaudited)
                                   Three Months Ended     Six Months Ended
                                        June 30,              June 30,
                                  --------------------  --------------------
                                     2014       2013       2014       2013
                                  ---------  ---------  ---------  ---------
Service Sales
Traditional reprographics         $  30,181  $  30,516  $  58,506  $  60,074
Color                                23,148     21,846     44,313     42,751
Digital                               8,759      8,690     16,818     17,051
                                  ---------  ---------  ---------  ---------
  Subtotal                           62,088     61,052    119,637    119,876
Onsite services(1)                   34,110     30,576     65,492     59,552
                                  ---------  ---------  ---------  ---------
  Total services sales               96,198     91,628    185,129    179,428
Equipment and supplies sales         12,784     12,994     24,226     25,230
                                  ---------  ---------  ---------  ---------
  Total net sales                 $ 108,982  $ 104,622  $ 209,355  $ 204,658
                                  =========  =========  =========  =========

(1) Represents work done at our customer sites, which includes Facilities Management ("FM") and Managed Print Services ("MPS").

Non-GAAP Financial Measures

EBIT, EBITDA and related ratios presented in this report are supplemental measures of our performance that are not required by or presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These measures are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating, investing or financing activities as a measure of our liquidity.

EBIT represents net income before interest and taxes. EBITDA represents net income before interest, taxes, depreciation and amortization. EBIT margin is a non-GAAP measure calculated by dividing EBIT by net sales. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by net sales.

We present EBIT, EBITDA and related ratios because we consider them important supplemental measures of our performance and liquidity. We believe investors may also find these measures meaningful, given how our management makes use of them. The following is a discussion of our use of these measures.

We use EBIT and EBITDA to measure and compare the performance of our operating segments. Our operating segments' financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating segments. As a result, we believe EBIT is the best measure of operating segment profitability and the most useful metric by which to measure and compare the performance of our operating segments. We also use EBIT to measure performance for determining operating segment-level compensation and we use EBITDA to measure performance for determining consolidated-level compensation. In addition, we use EBIT and EBITDA to evaluate potential acquisitions and potential capital expenditures.

EBIT, EBITDA and related ratios have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:

  • They do not reflect our cash expenditures, or future requirements for capital expenditures and contractual commitments;

  • They do not reflect changes in, or cash requirements for, our working capital needs;

  • They do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;

  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and

  • Other companies, including companies in our industry, may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Because of these limitations, EBIT, EBITDA, and related ratios should not be considered as measures of discretionary cash available to us to invest in business growth or to reduce our indebtedness. We compensate for these limitations by relying primarily on our GAAP results and using EBIT, EBITDA and related ratios only as supplements. For more information, see our interim Condensed Consolidated Financial Statements and related notes on our 2014 second quarter report on Form 10-Q. Additionally, please refer to our 2013 Annual Report on Form 10-K.

Our presentation of adjusted net income and adjusted EBITDA over certain periods is an attempt to provide meaningful comparisons to our historical performance for our existing and future investors. The unprecedented changes in our end markets over the past several years have required us to take measures that are unique in our history and specific to individual circumstances. Comparisons inclusive of these actions make normal financial and other performance patterns difficult to discern under a strict GAAP presentation. Each non-GAAP presentation, however, is explained in detail in the reconciliation tables above.

Specifically, we have presented adjusted net income attributable to ARC and adjusted earnings per share attributable to ARC shareholders for the three and six months ended June 30, 2014 and 2013 to reflect the exclusion of restructuring expense, trade secret litigation costs, and changes in the valuation allowances related to certain deferred tax assets and other discrete tax items. This presentation facilitates a meaningful comparison of our operating results for the three and six months ended June 30, 2014 and 2013. We believe these charges were the result of the current macroeconomic environment, our capital restructuring, or other items which are not indicative of our actual operating performance.

We presented adjusted EBITDA in the three and six months ended June 30, 2014 and 2013 to exclude stock-based compensation expense, trade secret litigation costs, and restructuring expense. The adjustment of EBITDA for non-cash adjustments is consistent with the definition of adjusted EBITDA in our credit agreement; therefore, we believe this information is useful to investors in assessing our financial performance.


ARC Document Solutions
Consolidated Statements of Cash
 Flows (In thousands) (Unaudited) Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Cash flows from operating
 activities
Net income                       $   4,622  $     877  $   5,918  $   1,560
Adjustments to reconcile net
 income to net cash provided by
 operating activities:
  Allowance for accounts
   receivable                          100        301        247        446
  Depreciation                       7,029      7,020     14,024     13,975
  Amortization of intangible
   assets                            1,503      1,699      3,001      3,446
  Amortization of deferred
   financing costs                     214        278        397        561
  Amortization of discount on
   long-term debt                      224        167        449        332
  Stock-based compensation             881        729      1,662      1,321
  Deferred income taxes              2,279      1,145      4,172        736
  Deferred tax valuation
   allowance                        (1,748)       154     (3,037)       174
  Restructuring expense, non-cash
   portion                               7        235        391        293
  Other non-cash items, net           (157)      (181)      (327)      (295)
  Changes in operating assets and
   liabilities:
    Accounts receivable             (4,059)    (2,666)    (7,494)   (11,849)
    Inventory                           85        234     (1,929)       280
    Prepaid expenses and other
     assets                            415       (619)       637      3,090
    Accounts payable and accrued
     expenses                        2,629     (1,263)     3,627      5,921
                                 ---------  ---------  ---------  ---------
Net cash provided by operating
 activities                         14,024      8,110     21,738     19,991
                                 ---------  ---------  ---------  ---------
Cash flows from investing
 activities
Capital expenditures                (3,032)    (4,430)    (6,597)   (10,042)
Payments related to business
 acquisitions                         (342)        --       (342)        --
Other                                  236        182        400        539
                                 ---------  ---------  ---------  ---------
Net cash used in investing
 activities                         (3,138)    (4,248)    (6,539)    (9,503)
                                 ---------  ---------  ---------  ---------
Cash flows from financing
 activities
Proceeds from stock option
 exercises                             568         --      1,009         --
Proceeds from issuance of common
 stock under Employee Stock
 Purchase Plan                          27          9         48          9
Share repurchases, including
 shares surrendered for tax
 withholding                          (151)       (90)      (151)       (90)
Proceeds from borrowings on long-
 term debt agreements                   --        402         --        402
Payments on long-term debt
 agreements and capital leases     (10,477)    (3,075)   (18,440)    (6,407)
Net (repayments) borrowings under
 revolving credit facilities          (697)       929       (295)      (210)
Payment of deferred financing
 costs                                   3         --       (454)        --
                                 ---------  ---------  ---------  ---------
Net cash used in financing
 activities                        (10,727)    (1,825)   (18,283)    (6,296)
                                 ---------  ---------  ---------  ---------
Effect of foreign currency
 translation on cash balances           54        121        (72)       164
                                 ---------  ---------  ---------  ---------
Net change in cash and cash
 equivalents                           213      2,158     (3,156)     4,356
Cash and cash equivalents at
 beginning of period                23,993     30,219     27,362     28,021
                                 ---------  ---------  ---------  ---------
Cash and cash equivalents at end
 of period                       $  24,206  $  32,377  $  24,206  $  32,377
                                 =========  =========  =========  =========
Supplemental disclosure of cash
 flow information
Noncash financing activities
  Capital lease obligations
   incurred                      $   5,315  $   2,992  $   9,403  $   4,246
  Contingent liabilities in
   connection with business
   acquisitions                  $     924  $      --  $     924  $      --

Contact Information:
David Stickney
VP Corporate Communications
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An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...