Wayne-Based Safeguard Scientifics Posts $15M Loss After Investment-Heavy Quarter

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Safeguard

The opportunistic capital and operational support firm headquartered in Wayne, Safeguard Scientifics, posted a $15.1 million loss in the fourth quarter of 2014 and an annualized $5.1 million loss after a year of investing into new partner companies and repurchasing more than 1 million shares of its stock, according to a CNBC brief and the company’s earnings announcement.

Last year Safeguard funneled $43.3 million into six new partners and $26.6 million into 10 existing partners, and realized $81.3 million in the sale of its interests in four companies.

“Overall, our financial strength, flexibility and liquidity remain the foundation of Safeguard’s evergreen business model. Safeguard remains well-positioned to continue to deploy capital in promising early- and growth-stage healthcare and technology companies,” Senior Vice President and CFO Jeffrey B. McGroarty said in the earnings release.

And Safeguard aims to continue its heavy investment strategy this year.

“As we embark on 2015, we remain focused and disciplined,” President and CEO Stephen T. Zarrilli said. “We have set out the following goals and objectives: to increase the total number of our partner companies (from 24) to approximately 30; to realize continued growth in partner company aggregate revenue; to deploy $35 million to $50 million in new partner companies; to deploy $30 million to $50 million in follow-on funding for current partner companies; and to realize a minimum of two profitable exits.”

Read more about Safeguard’s financial results and the beneficiaries of its capital and operational support on CNBC here and on the company’s website here.

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