NJTechWeekly.com is trying to catch up on all the company news that happened while we were recovering from Superstorm Sandy. Here are some highlights, including word that two N.J. tech growth-stage companies attracted big funding from the VC community this month.
LiveU: LiveU (Hackensack), which plays in the portable video-over-cellular solutions market, has announced that it has raised $27 million in a funding round to expedite its product development and global expansion. The round was led by new investor Lightspeed Venture Partners (Menlo Park, Calif.), with participation by existing investors Canaan Partners, Carmel Ventures and Pitango Venture Capital. To date, LiveU has raised around $50 million.
Samuel Wasserman, LiveU's CEO, said, "LiveU's year-on-year growth is a testament to our technological leadership and the fast-growing demand for cellular-based live video transmission in the broadcasting and online media markets. As we move from being a product-based to [a] solutions-based company, this substantial investment will enable us to expand our mobile offerings, continue our technological innovation and extend our geographical presence."
Billtrust: Billtrust, the Hamilton, N.J.-based provider of outsourced billing services, closed a $25 million funding round from Bain Capital Ventures (Boston and New York) on Nov. 14, 2012. The company is known as an innovator in both electronic and paper-based billing solutions. Matt Harris, managing partner at Bain Capital’s New York office, will join the Billtrust board. Flint Lane, president of Billtrust, said Bain will help the company with its continued round of strategic acquisitions. Harris said that while there are many billing companies in the consumer space, Billtrust is "the first company we have seen that is so well positioned to dominate the enterprise market."
Glowpoint: Glowpoint (Murray Hill), a global provider of cloud and managed video services, has announced that the U.S. Patent and Trademark Office has approved and issued patent No. 8,259,152 for its Video Call Distributor (VCD) invention, which allows high-definition video to be distributed and integrated with traditional voice call distribution systems to support applications such as video banking. Glowpoint's VCD application and software code integrate many traditional voice call distribution systems’ features and services with video calls, eliminating businesses’ need to upgrade their existing platforms to add video capabilities. The VCD also allows end users to answer both audio and video calls from the same interface, reducing the need for additional hardware and resources to increase video capabilities.
The company also issued guidance to investors, saying that based on “strong sales bookings in the third-quarter period, the company has announced that it expects to see fourth-quarter 2012 revenue and adjusted EBITDA margins to exceed $9 million and 15 percent respectively.”
Authentidate: Troubled Authentidate (Berkeley Heights), a provider of secure web-based software applications and telehealth products and services for healthcare organizations, has reported fiscal year 2013 Q1 results, which include good news. The company said it had increased revenues for the quarter, compared with the same period in the prior year, for both its telehealth products and services and its hosted software services.
The company also completed the required test-in phase with the U.S. Department of Veterans Affairs (VA) for its Electronic House Call (EHC) telehealth solution. The department has approved the VA facilities’ use of Authentidate’s EHC products and services throughout the country in its national Care Coordination Home Telehealth program.
Authentidate completed $3.3 million secured loan financing in September 2012 with certain accredited investors, including some company directors, officers and significant shareholders, and extended the maturity date of existing secured notes so they mature at the end of October 2013 along with the new notes.
In early September (soon after the markets closed on Aug. 30, 2012), the company executed a 1-for-2 reverse split of its shares because the stock had closed below $1 every day since Sept. 16, 2011. This move prevented its delisting on the NASDAQ.
SilverSun: SilverSun Technologies — the publicly traded, Livingston-based company that sells business management applications and professional consulting services — announced last week that it had shown a strong operating performance this quarter, with total sales revenue for the quarter climbing 46 percent to $3,468,154. Income from operations rose to $119,212 compared with $10,643 in the three months ending Sept. 30, 2011. The company is making progress, Mark Meller, chairman and CEO, said, crediting the efforts of the company’s sales and marketing teams and “several accretive acquisitions during the year.” Yet the bottom line is that the company experienced a $0.01 loss per basic and diluted shares this quarter.
Mindtree: Mindtree, based in Warren, N.J., and Bangalore, India, held a ribbon-cutting ceremony for its first U.S. delivery center. The center, located in Gainesville, Fla., is expected to employ more than 400 people over the next five years.
Vonage: Holmdel-based Vonage, the VoIP communication services provider, has announced a new relationship with AARP. Vonage is offering organization members a unique discount offer on its home phone service. "This relationship marks a significant milestone in Vonage's focus on broadening our business through mutually beneficial relationships," said Barbara Goodstein, Vonage chief marketing officer.
Cognizant: Soon after Sandy struck, Teaneck IT outsourcing giant Cognizant reported its earnings, which were very good. Revenue grew to just over $1.89 billion, a 5.4 percent sequential increase and an 18 percent increase over the same quarter last year. “We maintained our non-GAAP [generally accepted accounting principles] operating margin at the top of our guided range at 20 percent,” said CEO Francisco D’Souza.