Ironpath Network Inc

Company Information
Company Name Ironpath Network Inc
Also Known As
Company Website http://www.ironpath.com
Primary ASN 36217
IRR Record
Network Type NSP
Approx Prefixes
Traffic Levels 1-5Gbps
Traffic Ratios Mostly Outbound
Geographic Scope North America
Public Peering Exchange Points

Exchange Point Name ASN IP Address Mbit/sec

Equinix Ashburn 36217 --PENDING 1000

Immersion 1Q 2009: a second half 2009 story?

Immersion (IMMR) reported 1Q 2009 results on May 4^th.

Total revenues were $ 7.5 million, including $ 0.5 million related to the discontinued 3D line of business. Net loss for the quarter was $(7.5) million, or $(0.27) per share. Both numbers were worse than consensus ($7.5 million in revenue, excluding the CyberGlove (3D) segment, and a loss of $(0.23) a share).

Shares had closed at $ 4.47, before the conference call, and lost about 10% the following trading day. After a few other negative days, they seem now to be recovering, being in the $4.25 range, as we write this article.

The market obviously did not like the fact that both revenues and bottom line were worse than expected. Let’s see have a closer look:

• · The medical segment posted a poor result, with revenues of $ 2.5 million, less than in the 1Q 2008 ($ 3.0 million) and also a sequential decrease from $ 4.3 million in the 4Q 2008. While some seasonality is to be expected in this business segment, it seems that the decision to move the headquarters to California and a few layoffs, also related with the relocation, were a distraction and probably impacted 1Q results negatively.
• · The touch segment, on the other hand, delivered a good result, with $ 4.5 million in revenues, although the number, as we explained in our forecast, was impacted by approximately $700,000 of repeating license revenues that were not recognized in the 4Q 2008, due to accounting rules.

Going beyond the actual numbers, the Company achieved a few goals in the quarter:

• · Signed an exclusive distribution agreement for its medical simulation products with Gadelius K.K., one of Japan’s prominent distributors of medical devices, with common participation at several medical events foreseen throughout 2009 (see Immersion medical events web page for more info);
• · Introduced two new products into the medical segment, including the first-ever haptic medical simulation, Endobronchial Ultrasound with Transbronchial Needle Aspiration (EBUS-TBNA);
• · Sold its CyberGlove® (3D) business to a private equity firm to concentrate on two business segments, medical and touch;
• · Started cost cut initiatives throughout the business to lower its break-even point and achieve the goal of cash neutrality in the second half of 2009;
• · Achieved shipping over 15.3 million haptic enabled mobile phones in 1Q, up from 12.5 million in 4Q of 2008;
• · Signed the first two licensees in the semi conductor segment, Leadis and Imagis;
• · And finally announced its first licensee in the high-growth robotic surgery market (MAKO Surgical), which means that the Company is going beyond simulators and trying to approach a new market in the medical segment.

The tone of the conference call, in spite of an unimpressive quarter, was quite upbeat. As we discussed in our first article about Immersion, “Can It Bring Great Potential into Actual Revenues?”, the real problem of the Company, now that haptic seems to be gaining more and more popularity, is to understand if (or hopefully when…) Immersion will be able to translate this trend into real revenues. The impression is that the next quarter will still be similar, in results, to the first quarter, while the Company is restructuring to reach significant milestones in the second half of 2009.

After earnings, Immersion CEO and one Director bought a few shares on the open market, which is usually a sign of confidence for the future.

Let’s now have a look at some highlights from the conference call, thanks to Seeking Alpha Immersion 1Q 2009 earnings call transcripts. But first, a different approach to the conference call.

Thanks to Worldle I have generated a “word cloud” of what’s been said on that occasion (excluding, on purpose, management and analysts names) – an unusual approach to underline what’s been discussed the most. Apparently, medical had even more mentions than Touch, and, excluding words like business, quarter or million, cash was one of the most mentioned items – not surprisingly, given today’s economic environment and as the Company set the target to be cash neutral in the second half of the year.

More seriously, a few notes are worth being quoted from the call (emphasis added):

On growth:

• · Clent Richardson – CEO
• · While Immersion is making operational progress and we are signing a number of exciting deals that bode very well for the future and growth of the company, we fully understand that we must improve our results both on the top and bottom line.
• · Our plan is to operate the business with a goal of cash neutrality in the second half of 2009 by lowering each expense line of our business to cross the important break even milestone and then drive for and deliver sustained profitability in 2010 and beyond.
• · Immersion is backed by an extremely strong balance sheet ending Q1 with approximately $81 million in cash. We have added further emphasis to our cash preservation plans and will maintain a very strong balance sheet as we exit 2009. I'll note the gross margins increased sharply to 84% in Q1. Maintaining healthy margins is a key element of our go forward financial plan and a focus area for our company.

Demand:

• · Clent Richardson
• · Demand for our Haptics solutions across the various sectors of our Touch line of business including mobile, gaming, automotive and touch interface products is in fact intensifying.
• · Interest in Touch based solutions is greater than ever before and industry trends such as the emphasis on touch and Windows 7, demonstrates just how focuses major OEM's are in creating a touch based product portfolio. And, despite current softness, interest in medical simulation is quite high as well.

On Medical:

· Clent Richardson

· At is evident from the results; our Medical line of business has not met revenue expectations. We believe this is due to a very challenging current macro economic environment, especially domestically. On a seasonal basis, it's important to note that Q1 has been the slowest quarter for our Medical line of business for each of the past four years.

· I am pleased to report that as of today, we are commencing Medical operations based here in San Jose. The time line of this transition has been managed aggressively and effectively to ensure that we have seamless operations for the most important selling month of the quarter, to avoid any unnecessary rent payments and eliminate expenses wherever we can.

· From an expense standpoint, we are reducing head count in Medical from roughly 80 down to 50 full time equivalents and we have taken significant cost of our the business in terms of consultants, temps and contractors.

· International demand for simulation remains strong and we are making progress globally as we continue to add and expand relationships with important distribution partners. As mentioned at the top of the call, one such partnership is an exclusive new distribution agreement with Gadelius K.K., one of Japan's prominent distributors of medical devices and industrial equipment.

· Demand for simulation solutions also remains extremely high in China and on my recent trip there, I observed the construction of a 90,000 square foot stimulation training center outside Beijing. Another 100,000 square foot center was also highlighted in the Wall Street Journal recently, a remarkable illustration for that country and its focus on providing health care to its enormous population.

On Touch:

• · Clent Richardson
• · The top three handset makers in the world, Nokia, Samsung and LG are all licensees for Immersion's Haptics solutions which are shipping in their high volume touch enabled phones.
• · In fact, our partners shipped over 15.3 million hand sets in Q1, up from 12.5 million in Q4 of '08. This means that on a cumulative basis, more than 58 million Immersion enabled hand sets have been delivered to the world wide market.
• · we believe that by the end of 2009 we will be designed into approximately 25% of the touch screen phones shipped during this calendar year.
• · Last quarter I commented on our strategy of vertically integrating Immersion solutions with semi conductor companies and our progress relative to signing our first two licensees in this area Leadis and Imagis. Not surprising, the integration of Immersion's technology is of substantial interest to a number of chip makers as it allows them to embed and deploy Haptic functionality ubiquitously across a wide spectrum of devices.
• · We are engaged in discussions with most of the auto manufacturers in the world and as previously announced two additional 2010 car models have designed in our technology; one from Toyota that is already in the Japanese market and another from a new licensee that will be available later this year.
• · While confidentiality agreement preclude us from disclosing progress in this area (consumer and office product sector) at this time, we are working closely with category dominant brands and household name OEM's to bring a number of innovative products to market and will update you as we are able to share more details.

The fact that immersion decided to stop reporting revenues in the touch segment divided by mobility, touch interface and gaming has actually made it more difficult to analyze the trends within these sub-categories. It’s true that the small revenues reported probably do not justify such a detailed analysis.

An interesting quarter overview has also been posted on the Investor Village Message Board by immr_oldie, and is available at this link.

After the conference call, a few other news confirmed some of the positive trends surrounding the Company:

• · a new Android OS update introduced touch-screen haptics into Google's mobile phones operating system (it’s worth remembering that Immersion made its technology available for implementation in phones powered by Android:

http://www.youtube.com/watch?v=zpfQISmjmVs

• · both Samsung and LG announced having surpassed the 20 million touchscreen handset sales level
• · Gartner recently reported 1Q 2009 mobile phones sales, and the smart phones category is the only growing one, with a 12.7 per cent increase from the same period last year. Nokia, Samsung and LG are now the largest producers in this sector, accounting for 61.5 % of the total mobile phone market (all three are Immersion partners).
• · Immersion keeps innovating in the field, as noticed by cellodude on the Investor Village Message
• Board, who posted a few new patent applications made by the Company, including this one:

Thermal Haptic Effects

[Abstract

A thermal haptic feedback device includes a plurality of cells coupled to a processor. The processor controls each of the cells so that each cell can independently generate heating or cooling effects. Unique haptic effects, such as a simulated wind effect, can be generated by causing some cells to be hot or cold, or changing some of the cells from hot to cold.]

No doubt this could give a new meaning to the text message “I’m hot for you” sent to a mobile phone… jokes apart, Immersion keeps the leading edge as far as innovation in the sector, while management is now required to translate all this into actual products in the market place.

Some highlights from Immersion’s 1Q 2009 10-Q are resumed in this blog entry.

Equinix will replace Western Digital in the S&P MidCap 400

SAN FRANCISCO (MarketWatch) -- Hard drive developer Western Digital Corp. will replace data center services provider Embarq Corp. in the S&P 500 index, Standard & Poor's said late Thursday. Meanwhile Equinix Inc. will replace Western Digital in the S&P MidCap 400, Standard & Poor's said. Embarq is being acquired by CenturyTel Inc.

Gartner Says Worldwide Mobile Phone Sales Declined 8.6 Per Cent and Smartphones Grew 12.7 Per Cent in First Quarter of 2009

Worldwide mobile phone sales totalled 269.1 million units in the first quarter of 2009, a 8.6 per cent decrease from the first quarter of 2008, according to Gartner, Inc. Smartphone sales surpassed 36.4 million units, a 12.7 per cent increase from the same period last year.

Table 1
Worldwide Mobile Terminal Sales to End Users in 1Q09 (Thousands of Units)

Company	1Q09 Sales	1Q09 Market Share (%)	1Q08 Sales	1Q08 Market Share (%)
Nokia	97,398.2	36.2	115,191.8	39.1
Samsung	51,385.4	19.1	42,396.5	14.4
LG	26,546.9	9.9	23,645.8	8.0
Motorola	16,587.3	6.2	29,884.7	10.2
Sony Ericsson	14,470.3	5.4	22,061.0	7.5
Others	62,732.0	23.4	61,103.20	20.8
TOTAL	269,120.1	100.0	294,283.0	100.0

Table 2
Worldwide Smartphone Sales to End Users in 1Q09 (Thousands of Units)

Company	1Q09 Sales	1Q09 Market Share (%)	1Q08 Sales	1Q08 Market Share (%)
Nokia	14,991.2	41.2	14,588.6	45.1
Research In Motion	7,233.6	19.9	4,311.8	13.3
Apple	3,938.8	10.8	1,725.3	5.3
HTC	1,957.3	5.4	1,276.9	4.0
Fujitsu	1,387.0	3.8	1,317.5	4.1
Others	6,896.4	18.8	9,094.8	28.1
TOTAL	36,404.4	100.0	32,314.9	100.0

Additional information is in the Gartner report “Dataquest Insight: Market Share for Mobile Devices, 1Q09." The report is available on Gartner’s Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=984612&subref=simplesearch.

IMMR partner Nyko releases rumble controller for Nintendo Wii today

from the IV MB, by cellodude:

>>IMMR partner Nyko releases rumble controller for Nintendo Wii today

Today, IMMR partner Nyko has for sale their new Wand for the Nintendo Wii which won "Best of CES 2009" in the Gaming category.

Like Nintendo's WiiMote, it has haptics (though Nyko's haptics are licensed from IMMR). Unlike Nintendo, peripheral controllers which attach to the main unit may also rumble. Nyko is expected to release a rumbling equivalent to Nintendo's "Nunchuck" soon.

Nyko is also releasing a light gun accessory to the Wand, the Pistol Grip. The Wand/Pistol Grip combo eliminates previous clumsy mechanized trigger/controller links by using Nyko's digital electric "Trans-Port" technology. Trans-Port is what allows rumble commands to be passed through to peripherals.

Reviews are excellent, IGN giving it a 9 out of 10.

Wachovia Resuming Coverage of the Data Center Space - Rates Equinix (EQIX) and Switch & Data (SDXC) with an Outperform

from StreetInsider:

>>Wachovia initiating coverage on the data center space with an Overweight rating.

Wachovia analyst says, "We are initiating coverage on the data center space with an OVERWEIGHT rating. Within the group, we are resuming coverage on network neutral data center operators – Equinix (Nasdaq: EQIX) and Switch and Data (Nasdaq: SDXC) with OUTPERFORM ratings. We admit that it is difficult to initiate on anything with an Outperform rating in this current market environment. However, based on our channel checks, we feel confident that both EQIX and SDXC can hit 2009 forecasts. Specifically, we spoke with a few industry contacts in the sector in addition to the routine calls that we made to company management. These include contacts at Level 3 Communications and Cogent Communications. Based on our conversations, we think that the supply demand environment continues to favor network neutral data center operators."

"We believe the network neutral data center space represents a relatively safe derivative way to play on the continued growth of IP and internet traffic. We also note that EQIX and SDXC are two of the few growth stories left within telecom services. Both companies have high visibility into its revenue base and low churn driven by 1 – 3+ year contracts with escalators. EQIX, SDXC, and other network neutral data centers benefit from a supply demand imbalance due to growth in IP and internet traffic and limited available space close to fiber hubs for telecom equipment and networking gear. As a result, EQIX and SDXC enjoy a favorable pricing environment. Lastly, there is high fixed cost leverage in the model and the business environment within a data center is difficult to replicate which limits competition. As a result, we have a high degree of confidence in our forecasts for EQIX and believe the stock deserves some premium to other growth names in telecom."

Hibernia Atlantic Extends Its Global Financial Network into Equinix London Data Center, Adding Another Major Financial Hub onto Its Network

SUMMIT, N.J. & DUBLIN & LONDON--

(BUSINESS WIRE)--Hibernia Atlantic, the largest, privately held and only diverse TransAtlantic submarine transport cable provider and a wholly-owned subsidiary of Columbia Ventures Corporation, and Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today announced that Hibernia Atlantic has expanded its network into Equinix’s LD4 London Slough International Business eXchange (IBX®) data center. This new Point of Presence (POP) extends Hibernia Atlantic’s footprint in the London area and reiterates the company’s commitment to providing redundant, reliable connectivity solutions by-passing major congestion points generally located within major metro city centers. This POP also extends Hibernia’s Global Financial Network (GFN), into Equinix Financial eXchange, a neutral electronic marketplace consisting of active financial market participants, which is located within the LD4 center.

The GFN is layered over Hibernia Atlantic’s diverse fiber optic network reaching key financial cities including Toronto, Montreal, Chicago, Boston, Philadelphia, Stamford, Weehawken, Secaucus, Newark, White Plains, New York, Frankfurt, Reading and London. It is specifically designed to meet the demanding performance and reliability requirements of the global financial community by providing fast, active service, low-latency and high performance network connectivity.

Within the LD4 data center, the GFN will have a direct connection to Equinix Financial eXchange’s established community of execution venues, buy and sell side firms, market data providers and technology utilities, that have located at Equinix’s high performance data center to access the widest choice of low-latency networks and to directly exchange data with strategic partners and customers in close proximity. The high quality, advanced design LD4 facility offers financial customers a full range of scalable services, including collocation, interconnection, support and monitoring.

“Equinix’s facility provides Hibernia Atlantic, and the GFN, the ability to offer additional network options to the global financial community already benefiting from Equinix’s Financial eXchange platform,” commented Joe Hilt, Vice President of Sales for North America. “The GFN provides flexible solutions, including dedicated Packet over SONET (POS), on Hibernia’s 24,000 kilometer low-latency, resilient network.”

“This expansion marks Hibernia’s presence in five Equinix data centers in the US and Europe,” added Petrina Steele, Equinix’s Vice President for Business Development in Europe. “Hibernia Atlantic’s TransAtlantic cable system, which has a reputation for providing a redundant, diverse route from traditional networks, will bring value to our Financial eXchange community that requires secure, reliable connectivity to the financial hubs around the world.”

“We are committed to providing quality services, quickly,” continued Joe Hilt. “By choosing Equinix’s LD4 facility in London Slough, we can now offer installation within five days from signature to service or one month free guaranteed.”

For more information on Hibernia Atlantic’s network and the GFN, please visit www.hiberniaatlantic.com or click here for the GFN Stat Sheet.

Web-server lawsuit settles for $1.67M

from Maryland Daily record:

>>A federal judge in Baltimore has granted final approval to a $1.67 million class-action settlement between a Web-hosting company and more than 5,500 of its clients who experienced long service interruptions as a result of a botched server migration.

The plaintiffs — business and personal Web site owners and larger resellers of server space from all over the world — will receive four times their monthly bills from Andover, Mass.-based NaviSite Inc., whose purchase of Baltimore-based Alabanza Corp. led to the costly snafu.

The checks, which will go out within a month, range from $10 to more than $10,000, according to the lead lawyer for the class, Stuart A. Davidson.

Davidson’s firm, Boca Raton, Fla.-based Coughlin, Stoia, Geller, Rudman & Robbins LLP, will receive $495,000 separate and apart from the settlement fund.

Winthrop University Hospital's 2nd cyberknife is put on hold indefinitely due to budget concern

from the IV MB, by yyy60:

>>Herald Community Newspaper
By ALEX COSTELLO and ANTHONY BOTTAN May 14, 2009

Long Island pocketbooks take a hit

.......

All not-for-profits, hospitals, municipalities, any company or organization that has a payroll, will feel the hit of a payroll tax.

Winthrop University Hospital President John Broder said that the combination of health care cuts in the state budget and the payroll tax has created a "very challenging environment." Winthrop has about 5,500 employees, Broder said, and a payroll of $334 million, so that works out to about $1.24 million in payroll taxes. Add that to the health care cuts, he said, and the hospital is losing nearly $9 million. "We will not have layoffs, but we will have to forgo all the capital projects that were in place," he said.

Approximately $119 million in capital projects - included expanding the hospital's neuroscience unit and adding another Cyber Knife unit - will be put on hold indefinitely. "We are doing everything we can to weather the storm," Broder said. "We have to monitor our expenses closely, and we are disappointed that we can't move forward on these projects."


** Winthrop is a 591-bed teaching hospital located on Long Island in Mineola, NY **

NYSE Euronext's Data Center Vision Ups Speed Ante

interesting article from Securities Industry News:

>>NYSE Euronext's Data Center Vision Ups Speed Ante

The data centers NYSE Euronext is building in New Jersey and suburban London were expected to be cutting-edge facilities, but the announcement earlier this month that they will run on a 100 gigabit network raises the ante in the securities industry's never-ending quest for speed.

When the centers go live next year, said Stanley Young, co-global chief information officer of NYSE Euronext and head of its commercial technology business, they will be supported by networking equipment from Linthicum, Md.-based Ciena Corp. and NYSE's Secure Financial Transaction Infrastructure (SFTI), which links to all the displayed U.S. equities venues and will soon replace the exchange operator's legacy infrastructure in Europe.

Samsung, LG each sell more than 20 mln touchscreen phones

from TradingMarkets.com, HT to cellodude on the IV MB:

>>SEOUL, May 18, 2009 (Asia Pulse Data Source via COMTEX) --

Samsung Electronics Co. and LG Electronics Inc., the world's No. 2 and No. 4 makers of mobile phones, each reported Sunday that sales of their touchscreen handsets have surpassed 20 million units.

The global market for smartphones with touchscreens is expected to triple to 500 million units in 2012, compared with an anticipated 170 million units this year, industry data showed.

First CyberKnife for Poland ? (Polish American Journal May 2009 edition)

from the IV MB, by yyy60:

>>First CyberKnife for Poland (Polish American Journal May 2009 edition)

http://www.polamjournal.com/

The Embassy of Poland in DC had a fundraising party in March for a cyberKnife. Now one of the news headline in the May 2009 edition of Polish American Journal is "First CyberKnife for Poland". Although I don't have the detail of the article, I think they may have raised enough fund to purachse a cyberknfie for Poland.

The first cyberknife installed in Saudi Arabia

from the IV MB, by yyy60:

>>The first cyberknife installed in Saudi Arabia

Prominent among them is the King Faisal Specialist Hospital and Research Center (KFSH) in Riyadh. One of 190 hospitals owned and operated by the government, the 894-bed teaching hospital is one of the country’s leading specialist care units. It also undertakes medical research and education programs, supports government initiatives with the formulation of national health policies and plans and offers postgraduate education and training programs. Its staff include a number of researchers and medical academics who have made their mark in health education and practice in the Middle East.

Ever keen to be at the forefront of new ideas, KFSH was the first in the Kingdom to use CyberKnife, a noninvasive frameless radiosurgery system which allows for significantly fewer complications and less risk than open surgery. The only robotic facility in the country, the technology should go a long way in treating cancer patients — important because KFSH has the largest cancer treatment facility in the Gulf region. The hospital’s vision is to become one of the premier centers for cancer research and studies in the world, particularly in the field of cancer prevention.

Arab News

Stereotactic robotic radiosurgery for localized prostate cancer: Initial evaluation of acute toxicities

from the IV MB, by yyy60:

>>Stereotactic robotic radiosurgery for localized prostate cancer: Initial evaluation of acute toxicities

2009 ASCO Annual Meeting Abstracts

Sub-category: Prostate Cancer
Category: Genitourinary Cancer
Meeting: 2009 ASCO Annual Meeting (May 29-June 2)

Citation: J Clin Oncol 27, 2009 (suppl; abstr e16006)
Abstract No: e16006

Author(s): L. E. Ponsky, C. Lillibridge, J. Brindle, Y. Zhang, B. Wessels, D. B. Einstein; University Hospitals Case Medical Center, Cleveland, OH


Abstract:

BACKGROUND: We evaluated the initial acute toxicities experienced by patients treated with cyberknife fractionated radiosurgery for low and low-intermediate risk prostate cancer.

METHODS: Twenty-two patients with low or low-intermediate risk prostate cancer (T2a, GG 3+3=6 or 3+4=7, PSA <10) were enrolled prospectively on an IRB approved protocol and treated the planning target volume (PTV)(prostate+5mm margin) with cyberknife fractionated radiosurgery to a dose of 36.25 Gy in 5 fractions (7.25Gy/fraction). The target volume included the prostate and seminal vesicles. PSA values, AUA symptom scores (AUA SS), and NCI CTC acute toxicities were analyzed prior to radiosurgery and at 1 month (N=16), 3 months (N=12) and 6 months (N=5)post-treatment.

RESULTS: Patients treated on study included 12 with GG 3+3=6 cancer and 10 with GG 3+4=7 cancer. Mean patient age was 66 years old (range 49-79). Mean pre-treatment PSA was 5.29 (range 0.64-9.36) declining to 3.44 (range 0.00-10.43) at 1 month post treatment, 1.99 (range 0.31-3.99) at 3 months post-treatment and 2.08 (1.05-3.13) at 6 months post-treatment. Mean pre-treatment AUA SS was 7 (range 0.-18) increasing to 12 (range 2-29) at 1 month post treatment, decreasing to 8 (range 2-17) at 3 months post-treatment and 11 (3-17). There were 5 grade 1 acute toxicities including (diarrhea, fatigue, mild urinary frequency, hemorrhoid and a rash) and 7 grade 2 toxicities including (bladder spasms, painful urinary, bowel irregularity, rectal pain, urethritis and numbness in the upper thigh), all grade 1 and 2 toxicities resolved within three months of treatment. The one patient with grade 2 thigh numbness was not thought to be study related toxicity. Two patients developed grade 3 toxicity. One developed bacteremia after the transrectal ultrasound guided placement of the fiducials, the infection completely resolved after treatment with antibiotics. One patient on Coumadin developed hematuria which resolved with conservative management.

CONCLUSIONS: Cyberknife fractionated radiosurgery for patients with early stage prostate cancer appears to be safe on our early initial assessment.Continued evaluation and longer follow-up ongoing.