ParkerVision Inc. has staked a big part of its future on a patent infringement lawsuit against Qualcomm Inc., alleging that Qualcomm has used wireless technology developed by ParkerVision in its products.
The lawsuit filed two years ago is scheduled for trial in October. Although some investors have speculated the suit could bring a big payday for ParkerVision, the company had never said the amount of damages it is hoping to get from Qualcomm.
However, in ParkerVision's conference call with investors last week, CEO Jeff Parker gave the first hint of how much money his company is seeking.
"I'm not at liberty to provide you the amount of damages we're asking for in this case," Parker said. But he said as a "reference point," ParkerVision is asking for damages that are "significantly greater than our current market capitalization, and that number doesn't contemplate any additional award for willfulness or any consideration for future use."
Based on ParkerVision's stock price when it held the conference call Thursday, its market capitalization was about $350 million. You can only imagine how much higher ParkerVision's claim goes beyond that.
ParkerVision has not produced any revenue in years as it works with other companies to possibly use its wireless radio technology.
In the conference call, Parker said ParkerVision is working with several manufacturers, but he did not say when any of those relationships might translate into revenue.
With again no revenue in the first quarter, ParkerVision last week reported a net loss of $6.5 million, or 8 cents a share.
Parker, as always, remains optimistic about his company's prospects.
"The Qualcomm litigation is only one of many initiatives that are under way at ParkerVision, all of which should contribute to the value of the company and, in my opinion, are just beginning to be reflected in our increasing valuation. We believe the potential damages award in the Qualcomm litigation is just the tip of the iceberg for the ultimate value we believe our intellectual property holds," he said.
Stein Mart review paints better picture
Although Stein Mart Inc. raised red flags last year when it announced an accounting review would delay its required financial reports, analysts said this probably wouldn't be a big problem in the long run.
As it turned out, when the Jacksonville-based fashion retailer filed its overdue reports 10 days ago, it actually painted a better picture of Stein Mart's earnings in recent years.
After revising the accounting procedures for a number of items, Stein Mart said its fiscal 2010 earnings were actually $7.9 million, or 18 cents a share, higher than previously reported. Fiscal 2011 earnings were $103,000 higher, a figure that had no impact on earnings per share.
Along with the restatements, Stein Mart reported fiscal 2012 earnings of 57 cents a share, up from 44 cents in fiscal 2011.
In a conference call with analysts last week after the updated filings, interim CEO Jay Stein said he was happy the "communications blackout" was over and he could discuss his company's progress.
"We managed these distractions and the restatements well, staying focused on serving our customers and growing the business," Stein said.
"The results frankly speak for themselves," he said.
Stein Mart's stock, which closed at $8.59 on May 3 before the updated reports were filed, reached as high as $11.10 last week, its highest level in more than three years.
Avondale Partners analyst Mark Montagna last week raised his price target on the stock from $12 to $14.
"We continue to recommend purchase, as Stein Mart has surpassed the hurdle of proving to customers they have the right merchandise and customers have given their endorsement for the past year through its strongest comp since fiscal 2004. The comp gains should continue for multiple years and drive expense leverage," Montagna said in his research report.
After a 2.7 percent increase in comparable-store sales — sales at stores open for more than one year — in the fiscal year ended Feb. 2, Stein Mart last week said first-quarter comp-store sales rose by 1.2 percent after a strong April.
Stein said better weather in April brought shoppers into the stores to buy spring merchandise, after poor weather in February and March hurt sales.
Meanwhile, Stein Mart is taking steps to increase sales without getting shoppers into the stores. Stein said the company is launching a new e-commerce initiative in the second half of this year to sell merchandise online.
Sidoti & Co. analyst Michael Richardson found Stein Mart's sales trends encouraging enough to raise his price target on the stock from $11 to $16.
"We contend that Stein Mart will maintain the momentum that led to same-store sales growth in 10 out of the last 12 months," Richardson said in his research note.
St. Joe still working on strategy
It's been difficult to get a handle on The St. Joe Co.'s strategy since a management upheaval two years ago. In the company's quarterly conference call last week, CEO Park Brady still wasn't ready to discuss details.
Brady said the board of directors charged him with a three-step process when he joined the company two years ago.
The first step was to "stop the cash bleed and right-size the company." Brady said the company has accomplished that goal.
The second step is to come up with a long-term strategy and the third step is to execute that strategy.
"At the present time, we are continuing to actively work on our second goal of creating our long-term corporate strategy," Brady said.
"I can tell you that this will include our residential resort communities, primary homes and active adult markets. We will also include the port of St. Joe, our timber assets and our resorts and lodging business," he said.
He didn't say when the final strategy will be in place.
Meanwhile, the real estate development company that moved its headquarters from Jacksonville to WaterSound in the Florida Panhandle reported a first-quarter net loss of $2.5 million, or 3 cents a share.
Goldman Sachs downgrades Landstar
For years, analysts have touted Landstar System Inc.'s business model as a key to the trucking company's success.
Instead of owning trucks, Jacksonville-based Landstar contracts with drivers who own their own vehicles to haul freight loads around the country.
However, in the current improving economic environment, Goldman Sachs analysts see Landstar's business model as a detriment. They downgraded Landstar from "neutral" to "sell" in a research report on the industry.
"Variable cost models, like Landstar's, tend to outperform during down cycles, due to their defensive characteristics," they said.
"However, in an up-cycle, variable cost models tend to post less robust earnings growth, as they tend to have less leverage to pricing and volumes than do asset owners," they said.
The analysts also are concerned about slowing revenue growth at Landstar. "For 2013, we expect relatively flat earnings, as compared to 12 percent growth among its trucking peers within our coverage universe," they said.
Landstar's stock has been trading slightly higher in recent weeks than Goldman Sachs' target price of $52, so the analysts see little downside risk in the stock, but they see more of an upside to other trucking companies.
Jacksonville Bancorp reports small profit
Jacksonville Bancorp Inc. last week reported first-quarter earnings of $199,000, down from $1.3 million in the first quarter of 2012. Adjusted earnings per share in the first quarter of 2013 were basically zero, compared with 22 cents the previous year.
The parent company of The Jacksonville Bank's earnings was mainly affected by higher non-interest expenses, including increases in professional fees and loan-related expenses.
Interline increases sales
Interline Brands Inc. last week reported that first-quarter sales rose 21 percent to $380.8 million, and earnings before interest, taxes, depreciation and amortization rose 1 percent to $26.2 million
Because of interest costs and other merger-related expenses after the company was acquired by two private equity firms last year, Interline reported a final net loss of $1.5 million.
"We continue to feel very good about our position in the markets we serve, and will remain focused on executing our strategic initiatives to grow national accounts, leverage our investments in talent and technology, and bring more products closer to our customers," CEO Michael Grebe said in a news release.
Jacksonville-based Interline, which markets and distributes maintenance, repair and operations products, continues to file quarterly financial reports with the Securities and Exchange Commission because of publicly issued bonds.
Florida East Coast turns a profit
Florida East Coast Holdings Corp. last week reported a first-quarter profit of $4.2 million, reversing a $4.5 million loss in the first quarter of 2012.
The Jacksonville-based company, which operates the Florida East Coast Railway from Jacksonville to Miami, has reported final net losses every year since it was acquired in 2007 by funds affiliated with Fortress Investment Group.
The company's first-quarter results were helped by a big 20 percent gain in revenue to $68.8 million.
Like Interline, Florida East Coast continues to file quarterly reports with the SEC because of publicly issued bonds.
McKesson helped by PSS deal
McKesson Corp.'s stock jumped to record highs Wednesday after reporting adjusted earnings, excluding special charges, of $2.32 a share for the fourth quarter ended March 31, 2 cents higher than the average forecast of analysts surveyed by Thomson Financial.
The San Francisco-based medical supply company's total revenue fell by 3 percent to $30.6 billion.
However, revenue in its medical-surgical distribution and services division grew by 37 percent after McKesson completed the acquisition of Jacksonville-based PSS World Medical Inc. during the quarter.
McKesson's stock rose by $7.48 to $116.11 Wednesday.
Colony American Homes looks at Jacksonville
New York-based Colony American Homes Inc. filed plans to sell up to $100 million in stock in an initial public offering.
According to its prospectus filed with the SEC, Colony is engaged "in the acquisition, ownership, renovation, leasing and management of single-family properties."
The company operates in eight states, including Florida, and what's interesting about its filing is that it identifies Jacksonville, along with Charlotte, as potential expansion markets.
"We believe conditions in these MSAs support attractive investment returns," it said.
Colony American reported total revenue of $16.3 million and a net loss of $4.5 million in 2012.
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