Welcome!

Agile Computing Authors: Astadia CloudGPS, Elizabeth White, Yeshim Deniz, Pat Romanski, Harry Trott

News Feed Item

Look For Under Pressure DSS Stock To Get A Boost From New IP Leadership Following Corporate Merger Along With Improved Third Quarter Results

CHICAGO, Dec. 3, 2012 /PRNewswire/ - Lexington Technology Group Inc. (LTG) recently appointed veteran IP executive Jeff Ronaldi as chief executive officer of the company, as it prepares for a merger with Document Security Systems Inc. (NYSE MKT: DSS).  Ronaldi will continue as CEO following the merger.  Ronaldi, a former board advisor to Lexington, replaced Will Rosellini, who now assumes an advisor role to LTG's wholly owned subsidiary, Bascom Research, LLC.

Ronaldi has spent the last ten years specializing in monetizing patents.  Ronaldi brings expertise in leading successful patent lawsuits, including winning a $50 million verdict for Shelbyzyme against Genzyme and a $20 million willful infringement verdict versus Citrix Systems Inc. in 2012. He also managed a venture capital group for SPX Corp, in which he was behind a patent infringement lawsuit against Microsoft that resulted in a $62.3 million verdict, which later settled for $60 million. Prior to LTG, Ronaldi served as CEO of Turtle Bay Technologies, Ltd, a wholly owned subsidiary of Juridica Capital. There, he used his financial expertise to determine the value of different patent technologies.

"In many ways, leading Lexington is a perfect opportunity to leverage the two phases of my career: leading technology startups and monetizing IP," Ronaldi stated about his appointment. "One of the things that attracted me to Lexington is the quality of the portfolio. I've been monetizing patents for more than 10 years and I've had a lot of success. I expect this portfolio to be every bit as successful as any of the others I've managed."

Also, DSS has promoted Robert Bzdick to acting CEO. Bzdick , DSS's current President and Chief Operating Officer, brings an extensive background in managing manufacturing operations. He will assume this role until the merger of the two companies become finalized, projected for the in the first half of 2013.

While LTG owns intellectual property assets, DSS specializes in anticounterfeit, authenticication, and mass-serialization technologies.  Its technologies are designed to determine the authenticity of different products in various forums. This combination will help strengthen DSS's intellectual property portfolio and potentially enhance its revenue through the monetization of the combined company's intellectual property assets.  If the merger closes, LTG will bringing over $7 to $10 million in debt free cash to DSS.

Bascom Research
LTG acquired patent assets from Thomas L. Bascom, president of LinkSpace, LLC. LTG and Linksys are currently collaborating, through Bascom Research, to pursue research and development of radio frequency identification (RFID) software for use in the electronic health records space.  Bascom Research hopes to increase the safety of patents in hospitals through utilizing its assets with LinkSpace's enterprise-level software framework and DSS's digital security.

Bascom Research also owns several patents regarding the means for companies to utilize social media. For the most part, Bascom Research is enforcing these patents by suing major social media platforms for patent infringement. Bascom Research could bring hundreds of millions of dollars to the new combined LTG/DSS entity if it can win any of its lawsuits filed against five companies, including Facebook (FB), LinkedIn (LNKD), and Jive Software (JIVE), which are pending in federal court for the Eastern District of Virgina.  For its claims against Facebook, Bascom is seeking past damages dating back to 2006. Since that time, the social media giant has generated $7.38 billion, so a potential damages award could be massive.  A hearing is scheduled for December 7,  2012 to determine whether the case will remain before the "rocket docket" in Virginia or be moved elsewhere.

DSS 3rd Quarter Results
DSS reported several improvements in its Q3 results including a 15% revenue jump from Q3 of 2011. Year-to-date, total revenue is $11.7 million, which is a 27% increase from 2011 and put ths company on pace for its strongest year.

Increased sales in the packaging division led the way for DSS, rising 39% during the quarter. Licensing and digital sales also increased by 13% from the prior quarter. Overall, for the first nine months of 2012, packaging sales are up by 54% from the first nine month of 2011 and licensing and digital sales have increased 27%.

DSS also made strides in its gross profit performance during Q3, which saw gross profit increase by 20% from Q3 2011. This resulted in gross profits reaching $1.52 million for the quarter. DSS has made efforts to streamline operating costs and focus its attention on sales efforts with higher margin opportunities. These decisions have paid off for DSS mainly in its printing division, where gross profit for the year to date has increased by 149%.

When measuring performance using adjusted EBITDA, the third quarter reflected a 7% improvement over adjusted EBITDA of Q3 of 2011.

These results seem to be promising for DSS, as it has an opportunity to build on its 3rd quarter momentum in the fourth quarter, which has historically been the company's strongest.

DSS's former CEO Patrick White stated, "We are very pleased with our third quarter results, where we saw strength in all of our business divisions.  As we enter the final quarter of 2012, we expect to continue to build upon our revenue and gross profit growth that allowed us to reach the important financial milestone of positive adjusted EBITDA in the month of September."

DSS stock last traded at $2.70 with a market capitalization of $58.6 million. Over the last year, the company has traded between $2.26 and $5.12 per share.

SOURCE Lexington Technology Group Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effic...