Corporate News

NxStage Medical, Inc. (Nasdaq: NXTM) has entered into new agreements covering its supply of home, critical care and in-center products to DaVita, the kidney care division of DaVita Healthcare Partners Inc (NYSE: DVA).

For the use of products for home hemodialysis in the United States, NxStage has executed a second amended and restated National Service Provider Agreement with DaVita (the "Home Agreement"). The Home Agreement continues, in all material respects, the terms of the first amended and restated National Service Provider Agreement between NxStage and DaVita dated July 22, 2010, with pricing for NxStage's products subject to System One™ home patient growth targets.

The term of the Home Agreement extends through December 31, 2015, and thereafter automatically extends on a monthly basis unless terminated by either party.

NxStage and DaVita also entered into an agreement covering the purchase of NxStage's System One and other products for acute inpatient therapy within the critical care market through December 31, 2015.

Lastly, NxStage's subsidiary, Medisystems, and DaVita extended the term of their Needle Purchase Agreement dated January 6, 2008 through at least December 31, 2014, although DaVita may by October 31, 2013 elect to extend this to December 31, 2015.

3D Systems Corporation (NYSE: DDD) today announced that, at its annual meeting held today, its stockholders approved an amendment to its Certificate of Incorporation to increase the authorized number of shares of Common Stock from 120,000,000 to 220,000,000.

"We are grateful to our stockholders for their support," said Avi Reichental, President and Chief Executive Officer, 3D Systems. "This increase in our authorized shares restores our flexibility to use newly issued shares of our common stock for appropriate corporate purposes."

Gilead Sciences, Inc. (Nasdaq: GILD) today announced that the company’s Marketing Authorisation Application (MAA) for sofosbuvir, a once-daily oral nucleotide analogue inhibitor for the treatment of chronic hepatitis C virus (HCV) infection, which was submitted to the European Medicines Agency (EMA) on April 17, 2013, has been fully validated and is now under assessment. The data submitted in this MAA support the use of sofosbuvir and ribavirin (RBV) as an all-oral therapy for patients with genotype 2 and 3 HCV infection, and for sofosbuvir in combination with RBV and pegylated interferon (peg-IFN) for treatment-naïve patients with genotype 1, 4, 5 and 6 HCV infection.

Chronic HCV is a major cause of liver cancer and liver transplantation in Europe and around the world. The current standard of care for HCV involves 24-48 weeks of therapy with RBV and peg-IFN, which has to be injected and is associated with significant side effects.

Avid Technology, Inc. (NASDAQ: AVID) announced that due to the delay in the filing of its annual report on Form 10-K for the year ended December 31, 2012 (“Form 10-K”), it had received a notification letter from the staff of the NASDAQ Listing Qualifications Department (the “NASDAQ Staff”) stating that the Company does not comply with NASDAQ Listing Rule 5250(c)(1), which requires timely filing of periodic reports with the Securities and Exchange Commission (the “SEC”). Avid, announced today that on May 17, 2013, it received from the NASDAQ Staff an anticipated notification of Avid's continued noncompliance with NASDAQ Listing Rule 5250(c)(1) due to Avid's delay in filing its Form 10-Q for the first quarter ended March 31, 2013 (“Form 10-Q”). These notifications were issued in accordance with NASDAQ procedures and have no immediate effect on the listing of Avid's common stock on the NASDAQ Global Market.

On May 20, 2013, Avid has, in accordance with the NASDAQ Staff's requirements as set forth in the notification, submitted a plan explaining how it expects to regain compliance with NASDAQ's continued listing requirements. If the NASDAQ Staff accepts the Company's plan, the Company expects to have up to 180 calendar days from the initial due date for the Form 10-K, or until September 16, 2013, to regain compliance. If the NASDAQ Staff does not accept Avid's plan, Avid will have the opportunity to appeal that decision to a NASDAQ Hearings Panel.

The Company has, as previously reported, been unable to file the Form 10-K and the Form 10-Q because it is continuing to evaluate the accounting treatment related to bug fixes, upgrades, enhancements and compatibility extensions (collectively, “Software Updates”). The first step in the Company's evaluation was to undertake an initial review of whether Software Updates previously made available by the Company to certain of its customers at no-charge included upgrades, enhancements or compatibility extensions and if so, whether such upgrades, enhancements or compatibility extensions met the definition of post-contract customer support (PCS) under U.S. Generally Accepted Accounting Principles (“GAAP”). During the course of this initial review, the Company concluded that certain of these no-charge Software Updates should have been accounted for as implied PCS when recognizing revenue for the original sale of the related product. The Company management has evaluated the potential impact of its findings on the Company's prior period financial statements and concluded that the Company's unaudited interim consolidated financial statements for the quarterly periods ended (i) September 30, 2012 and 2011, (ii) June 30, 2012 and 2011, and (iii) March 31, 2012 and 2011, as well as its audited consolidated financial statements for the years ended December 31, 2011, 2010 and 2009 should no longer be relied upon because of these errors in the application of GAAP. In addition, any previously issued press release or other publicly issued statement by the Company containing financial information for such periods should not be relied upon.

The Company expects that the timing of revenue recognition for the impacted customer arrangements will change from the historical presentation in the Company's financial statements pursuant to which revenue was recognized up front, generally to being recognized ratably over the estimated implied PCS service period. In addition, the timing of recognition of certain costs related to these customer arrangements may also be impacted, along with the timing of related income taxes. The Company cannot at this time estimate the full impact of the adjustments of revenue and costs, and the related impact on income taxes, on any previously issued financial statements for any individual reporting period, although it may be significant. However, while the restatement adjustments will impact previously reported revenue and operating results for prior periods, the restatement adjustments are not expected to affect the amount of total revenue ultimately to be earned, or the amount or timing of cash received or to be received, from the sales transactions or the Company's liquidity or cash flow for any prior period.

In addition, the Company will revise its consolidated financial statements for the years ended December 31, 2011, 2010 and 2009 for the correction of the errors previously identified and disclosed in its Form 10-Q for the quarterly periods ended September 30, 2012, June 30, 2012 and March 31, 2012.

The Company is also reassessing its accounting for certain restructuring expenses related to lease obligations and other exit activities in the quarters ended June 30, 2012 and September 30, 2012. While the Company continues to analyze the accounting treatment of these restructuring expenses, the Company has concluded that it has improperly accounted for such restructuring expenses and currently estimates that the restructuring expenses may have been cumulatively overstated by approximately $3.5 million on a pre-tax basis at September 30, 2012.

The Company's management, including its Chief Executive Officer and Chief Financial Officer, has concluded that the Company's disclosure controls and procedures and internal controls over financial reporting were not effective as of December 31, 2012 or March 31, 2013 because of the material weaknesses in the Company's internal controls over financial reporting relating to the matters disclosed in the Company's Form 10-Q for the quarterly periods ended September 30, 2012, June 30, 2012 and March 31, 2012 and the matters described in this press release.

The Company's evaluation of current and historical accounting treatment related to Software Updates is ongoing and the Company may identify additional issues, which could require further adjustments to the Company's prior financial statements for one or more prior fiscal years or periods.

The Company is working diligently to complete the review and continues to focus its efforts on completing and filing the delayed periodic reports, including restatements, as soon as possible. During this evaluation, the Company plans to continue to invest in its product innovation and execute on its growth strategy. The Company believes it is well positioned to support its customers' ongoing success.

SolarWinds (NYSE: SWI) entered into a definitive agreement to acquire privately held N-able Technologies, a leader in Cloud-based remote monitoring and management (RMM) and service automation software for Managed Service Providers (MSPs). SolarWinds is acquiring N-able for $120 million in cash. The company expects the acquisition to close before the end of May.

"Upon completion of the acquisition, the addition of N-able to the SolarWinds family gives us the opportunity to respond to a growing need in the IT industry. As more and more small businesses begin exploring ways to deploy and efficiently manage IT and SaaS-based technologies to drive their businesses, MSPs are stepping up with Cloud-based services designed to help ensure that IT environments are maintained and employees have the access and device support that they need to get their jobs done. We're excited to expand into another highly complementary branch of IT management that we believe is ripe for our disruptive go-to-market model," said Kevin Thompson, SolarWinds' President and CEO.