Safeguard Scientifics, Inc.
(NYSE: SFE), a holding company that builds value in growth-stage
companies, today announced results of operations for the second quarter of 2011.
Consolidated net income in the second quarter of 2011 was $121.8 million, or $5.87 per share, compared with net income of $2.7 million, or $0.13 per share, in the second quarter of 2010. For the six months ended June 30, 2011, net income was $112.8 million, or $5.45 per share, versus a net loss of $19.1 million, or $0.93 per share, in the same period of 2010. The quarter’s income was principally due to the sale of life sciences partner company, Advanced BioHealing.
“During the second quarter of 2011, we deployed $45.8 million in new and existing partner companies while we realized $145.4 million, including $7.6 million held in escrow, through the sale of life sciences partner company, Advanced BioHealing, to Shire,” said
Peter J. Boni
, President and Chief Executive Officer. “Yesterday, we announced the completed sale of technology partner company Portico Systems to McKesson for $90 million, of which Safeguard expects to receive $38.1 million. In light of our continued success and commitment to execute against our game plan, it’s also important to look at the bigger picture as it relates to Safeguard’s current management team’s track record.”
Boni continued, “Since January 2006, Safeguard has deployed approximately $268 million and realized approximately $631 million through the sale of partner companies and private-equity holdings that represented transactions undertaken and value built by Safeguard’s current management team. The sale of partner companies Advanced BioHealing, Avid Radiopharmaceuticals, Clarient and Portico Systems to Shire, Eli Lilly, GE Healthcare, Eli Lilly, and McKesson, respectively, represents well-timed exits with top-tier multinational acquirers yielding cash-on-cash returns ranging from 3x to 13.5x. Despite this recent success, we continue to remain focused and disciplined in the execution of our game plan to drive value for our partner companies and our shareholders.”