Science & Technology
Science and Technology
Science and Technology
Thu, December 9, 2010
Wed, December 8, 2010
j2 Global Communications, Open text, EasyLink Services Int., Premiere Global Services and 3M Company
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: j2 Global Communications Inc. (Nasdaq: [ JCOM ]), Open text Corp. (Nasdaq: [ OTEX ]), EasyLink Services Int. Corp. (Nasdaq: [ ESIC ]), Premiere Global Services Inc. (NYSE: [ PGI ]) and 3M Company (NYSE: [ MMM ]).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]
Here are highlights from Wednesdaya™s Analyst Blog:
J2 Global on Buying Spree
j2 Global Communications Inc. (Nasdaq: [ JCOM ]), a leading unified collaborative messaging solutions provider, recently acquired Canada-based Protus IP Solutions Inc. Protus is a Software-as-a-service (SaaS) solutions provider for business enterprises. j2 Global paid approximately $213 million in cash for this acquisition. This deal was funded from j2 Globala™s cash on hand. The company has an exceptionally strong balance sheet. At the end of the third quarter of 2010, it had around $5.93 per share of net cash.
Protus has three flagship products. These are: MyFax (Internet fax), Campaigner (email marketing), and My1Voice (virtual phone service). We believe the primary reason for j2 Globala™s decision is the huge synergy between the two companya™s flagship products. Target market for MyFax, Campaigner, and My1Voice are very much similar to that of j2 Globala™s own eFax, Electric Mail, and eVoice products.
During the last one year, Protus generated around $72 million in revenue of which MyFax contributed 81%. After this acquisition, j2 Global has 1.9 million paid DIDs (Dial In Demand) installed globally. In the previous quarter, j2 Global organically added 76,000 DIDs (Dial In Demand), the largest quarterly growth since the fourth quarter of 2000. Importantly, the company maintained its reduced cancellation rate at the pre-recession 2006 level of 2.6%.
The company will incur approximately $15 million of integration costs during the next three quarters of which 50% will be assumed in the ensuing fourth quarter of 2010. j2 Global expects the acquisition of Protus to be accretive immediately. The company now expects revenue for the fourth quarter of 2010 within the range of $69.5 million to $71.5 million. Non-GAAP EPS (excluding share-based expenses and acquisition-related expenses) will be within the range of 48a"50 cents.
j2 Global mainly competes with Open text Corp. (Nasdaq: [ OTEX ]), EasyLink Services Int. Corp. (Nasdaq: [ ESIC ]), and Premiere Global Services Inc. (NYSE: [ PGI ]). We maintain our long-term Neutral recommendation for j2 Global. Currently it is a short-term Zacks #3 (Hold) Rank stock.
3M Provides 2011 Outlook
3M Company (NYSE: [ MMM ]) has reaffirmed its earnings expectation for 2010 and declared its outlook for 2011. The company targets to achieve sales in the range of $29 billion to $30.5 billion in 2011, representing a year-over-year organic growth of 5.5% to 7.5%. This includes positive currency effect of 1% to 2% and acquisitions related growth of 4% to 6%.
Earnings per share for 2011 are expected to be in the range of $5.90 to $6.10 per share. Increase in pension expense by $0.27 per share year over year is included in the earnings guidance. Without an increase in pension expense, earnings are expected to be in the range of $6.17 to $6.37 per share, representing a year-over-year increase of 10% to 14% on a GAAP basis.
For 2010, the company has maintained its earnings guidance range of $5.59 to $5.63 per share. Excluding the Medicare Part D-related charge recorded in the first quarter of 2010, earnings per share are expected to be in the range of $5.70 to $5.74.
The company continues to boost its R&D, sales and marketing investments and is building new manufacturing units, especially concentrating on developing economies. The third quarter 2010 results showed that the Asia-Pacific was the star performer amongst all geographic regions with a 28% sales increase. One-third of 3Ma™s sales is derived from the developing economies and is expected to climb up to 45% by 2015, according to the company.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/ZacksResearch ]
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
