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ITT Educational Services, Inc. Reports 2013 Fourth Quarter And Full-Year Results

CARMEL, Ind., Jan. 30, 2014 /PRNewswire/ -- ITT Educational Services, Inc. (NYSE: ESI), a leading provider of technology-oriented postsecondary degree programs, today reported that new student enrollment in the fourth quarter of 2013 increased 4.5% to 13,995 compared to 13,398 in the same period in 2012.  Total student enrollment decreased 5.8% to 57,542 as of December 31, 2013 compared to 61,059 as of December 31, 2012. 

The company provided the following information for the three and twelve months ended December 31, 2013 and 2012:

Financial and Operating Data for the Three Months Ended December 31st, Unless Otherwise Indicated

(Dollars in millions, except per share and per student data)















Increase/

2013


2012

(Decrease)








Revenue


$262.9


$300.8


(12.6)%

Operating (Loss)


$(20.7)


$(16.0)


29.5%

Operating Margin


(7.9)%


(5.3)%


 (260) basis points

Net (Loss)


$(11.6)


$(9.5)


21.9%

(Loss) Per Share (diluted)


$(0.49)


$(0.41)


19.5%

New Student Enrollment  


13,995


13,398


4.5%

Continuing Students  


43,547


47,661


(8.6)%

Total Student Enrollment as of December 31st


57,542


61,059


(5.8)%

Persistence Rate as of December 31st  (A)


71.4%


72.6%


 (120) basis points

Revenue Per Student 


$4,310


$4,582


(5.9)%

Cash and Cash Equivalents, Restricted Cash and







Investments as of December 31st


$218.8


$246.9


(11.4)%

Bad Debt Expense as a Percentage of Revenue


9.0%


6.9%


210 basis points

Days Sales Outstanding as of December 31st


32.7 days


23.6 days


 9.1 days

Deferred Revenue as of December 31st


$147.6


$135.9


8.6%

Debt as of December 31st


$50.0


$140.0


(64.3)%

Weighted Average Diluted Shares of Common Stock 
     Outstanding


23,419,000


23,360,000



Shares of Common Stock Repurchased


0


0



Number of New Colleges in Operation


0


0



Capital Expenditures, Net


$0.2


$2.4


(92.0)%

 


Financial and Operating Data for the Twelve Months Ended December 31st

(Dollars in millions, except per share and per student data)



2013


2012


Increase/
(Decrease)








Revenue


$1,070.0


$1,287.2


(16.9)%

Operating Income


$99.4


$232.8


(57.3)%

Operating Margin


9.3%


18.1%


(880) basis points

Net Income


$59.4


$140.5


(57.7)%

Earnings Per Share (diluted)


$2.52


$5.85


(56.9)%

Bad Debt Expense as a Percentage of Revenue


7.5%


6.1%


140 basis points

Revenue Per Student


$17,707


$18,625


(4.9)%

Weighted Average Diluted Shares of Common 
     Stock Outstanding


23,521,000


23,999,000



Shares of Common Stock Repurchased


0


3,025,700 (B)



Number of New Colleges in Operation


0


6



Capital Expenditures, Net


$4.5


$17.2


(74.0)%








(A) Represents the number of Continuing Students in the academic term, divided by the Total Student Enrollment in the immediately preceding academic term.

(B) For approximately $207.9 million or at an average price of $68.72 per share.

Due to the effect that certain actions that the company is evaluating in connection with the 2009 Loan Program (defined on Schedule A) and the PEAKS Program (defined on Schedule A) may have, the company's audited consolidated financial statements that will be included in its 2013 annual report on Form 10-K filed with the U.S. Securities and Exchange Commission could be materially different from the unaudited consolidated financial statements for the three and twelve months ended December 31, 2013 that are included in this release.

The attached Schedule A summarizes the company's:

  • charges related to private student loan programs in the three months ended December 31, 2013;
  • contingency liability roll-forward in the three and twelve months ended December 31, 2013; and
  • internal goals for the twelve months ending December 31, 2014.

ITT Educational Services, Inc. will conduct a conference call with financial analysts to discuss its 2013 fourth quarter earnings at 11:00 am (ET) this morning.  The public is invited to listen to a live webcast of the conference call.  The webcast may be accessed by following the "Live Webcast" directions on ITT/ESI's website at www.ittesi.com.

Except for the historical information contained herein, the matters discussed in this press release, including in the attached Schedule A, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are made based on the current expectations and beliefs of the company's management concerning future developments and their potential effect on the company. The company cannot assure you that future developments affecting the company will be those anticipated by its management. These forward-looking statements involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: changes in federal and state governmental laws and regulations with respect to education and accreditation standards, or the interpretation or enforcement of those laws and regulations, including, but not limited to, the level of government funding for, and the company's eligibility to participate in, student financial aid programs utilized by the company's students; business conditions and growth in the postsecondary education industry and in the general economy; the company's failure to comply with the extensive education laws and regulations and accreditation standards that it is subject to; effects of any change in ownership of the company resulting in a change in control of the company, including, but not limited to, the consequences of such changes on the accreditation and federal and state regulation of its campuses; the company's ability to implement its growth strategies; the company's failure to maintain or renew required federal or state authorizations or accreditations of its campuses or programs of study; receptivity of students and employers to the company's existing program offerings and new curricula; loss of access by the company's students to lenders for education loans; the company's ability to collect internally funded financing from its students; the company's exposure under its guarantees related to private student loan programs; the company's ability to successfully defend litigation and other claims brought against it; and other risks and uncertainties detailed from time to time in the company's filings with the U.S. Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise.


ITT EDUCATIONAL SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)




As of


December 31, 2013


December 31, 2012


(unaudited)



Assets




Current assets:




     Cash and cash equivalents

$218,204


$246,342

     Restricted cash

610


601

     Accounts receivable, net

93,435


77,313

     Deferred income taxes

33,961


44,547

     Prepaid expenses and other current assets

27,827


16,162

          Total current assets

374,037


384,965





Property and equipment, net

168,509


189,890

Deferred income taxes

62,373


56,112

Other assets

67,354


41,263

     Total assets

$672,273


$672,230





Liabilities and Shareholders' Equity




Current liabilities:




     Current portion of long-term debt

$50,000


$0

     Accounts payable

58,021


63,304

     Accrued compensation and benefits

18,107


21,023

     Other current liabilities

65,382


86,722

     Deferred revenue

147,630


135,900

          Total current liabilities

339,140


306,949





Long-term debt

0


140,000

Other liabilities

129,890


98,327

     Total liabilities

469,030


545,276





Shareholders' equity:




     Preferred stock, $.01 par value,




        5,000,000 shares authorized, none issued

0


0

    Common stock, $.01 par value, 300,000,000 shares authorized,




         37,068,904 issued

371


371

    Capital surplus

209,630


206,703

    Retained earnings

1,018,456


959,072

    Accumulated other comprehensive income (loss)

3,146


(7,930)

    Treasury stock, 13,698,716 and 13,744,395 shares, at cost

(1,028,360)


(1,031,262)

        Total shareholders' equity

203,243


126,954

        Total liabilities and shareholders' equity

$672,273


$672,230

 

ITT EDUCATIONAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)




Three Months


Twelve Months


Ended December 31,


Ended December 31,


(unaudited)


(unaudited)




2013


2012


2013


2012









Revenue

$262,921


$300,843


$1,069,984


$1,287,209









Costs and expenses:








Cost of educational services

121,111


129,394


492,154


539,223

Student services and administrative expenses 

102,209


94,566


408,524


422,345

Settlement cost

0


21,750


0


21,750

Loss related to private student loan programs

60,277


71,102


69,954


71,102

Total costs and expenses

283,597


316,812


970,632


1,054,420









Operating income (loss)

(20,676)


(15,969)


99,352


232,789

Interest income

202


40


578


1,348

Interest (expense)

(809)


(901)


(3,989)


(3,723)

Income (loss) before provision for income taxes

(21,283)


(16,830)


95,941


230,414

Provision for income taxes

(9,737)


(7,362)


36,557


89,949









Net income (loss)

$(11,546)


$(9,468)


$59,384


$140,465









Earnings (loss) per share:








     Basic

$(0.49)


$(0.41)


$2.54


$5.88

     Diluted

$(0.49)


$(0.41)


$2.52


$5.85









Supplemental Data:








Cost of educational services

46.1%


43.0%


46.0%


41.9%

Student services and administrative expenses

38.9%


31.4%


38.2%


32.8%

Settlement cost

0.0%


7.2%


0.0%


1.7%

Loss related to private student loan programs

22.9%


23.6%


6.5%


5.5%

Operating margin

(7.9%)


(5.3%)


9.3%


18.1%

Student enrollment at end of period 

57,542


61,059


57,542


61,059

Campuses at end of period

147


147


147


147

Shares for earnings per share calculation:








     Basic

23,419,000


23,360,000


23,412,000


23,880,000

     Diluted

23,419,000


23,360,000


23,521,000


23,999,000









Effective tax rate

45.8%


43.7%


38.1%


39.0%

 


ITT EDUCATIONAL SERVICES, INC.


 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Dollars in thousands)







Three Months


Twelve Months



Ended December 31,


Ended December 31,



(unaudited)


(unaudited)




2013


2012


2013


2012


Cash flows from operating activities:









    Net income (loss)

$(11,546)


$(9,468)


$59,384


$140,465


    Adjustments to reconcile net income to net cash flows









        from operating activities:









           Depreciation and amortization

6,436


7,305


27,252


29,350


           Provision for doubtful accounts

23,648


20,827


80,538


78,307


           Deferred income taxes

(22,536)


(42,543)


(5,922)


(58,640)


           Excess tax benefit from stock option exercises

0


0


0


(1,382)


           Stock-based compensation expense

2,940


3,612


11,638


16,658


           Settlement cost

0


21,750


(46,000)


21,750


           Asset impairment

0


15,166


0


15,166


           Other

143


6,895


610


6,992


           Changes in operating assets and liabilities, net of

             acquisition:









               Restricted cash

2


119


(9)


1,527


               Accounts receivable

2,369


(8,715)


(95,643)


(107,514)


               Accounts payable

(3,447)


(13,054)


(5,459)


(15,572)


               Other operating assets and liabilities

47,407


67,882


38,773


68,890


               Deferred revenue

15,539


16,811


11,299


(90,643)


Net cash flows from operating activities

60,955


86,587


76,461


105,354











Cash flows from investing activities:









     Facility expenditures and land purchases

(138)


(553)


(679)


(1,046)


     Capital expenditures, net

(191)


(2,384)


(4,468)


(17,204)


     Acquisition of company, net of cash acquired

(197)


0


(7,150)


0


     Proceeds from sales and maturities of investments and

        repayment of notes

95


577


508


217,301


     Purchase of investments and note advances

(1,036)


(12,342)


(2,415)


(75,887)


Net cash flows from investing activities

(1,467)


(14,702)


(14,204)


123,164











Cash flows from financing activities:









     Excess tax benefit from stock option exercises

0


0


0


1,382


     Proceeds from exercise of stock options

0


0


0


8,345


     Debt issue costs

0


0


0


(1,525)


     Proceeds from revolving borrowings

0


0


0


175,000


     Repayment of revolving borrowings

(10,000)


0


(90,000)


(185,000)


     Repurchase of common stock and shares tendered for taxes

(5)


(1)


(395)


(209,371)


Net cash flows from financing activities

(10,005)


(1)


(90,395)


(211,169)











Net change in cash and cash equivalents

49,483


71,884


(28,138)


17,349











Cash and cash equivalents at beginning of period

168,721


174,458


246,342


228,993











Cash and cash equivalents at end of period

$218,204


$246,342


$218,204


$246,342


 


Schedule A









In the three months ended December 31, 2013, the company recorded $60.3 million of additional charges related to its guarantee obligations associated with the 2009 RSA(a) and the PEAKS Program(b).  The additional charges were recorded based on an enhanced default rate methodology and more recent performance data that the company obtained in the three months ended December 31, 2013.  As of December 31, 2013, the recorded liability related to the company's guarantee obligations under the 2009 RSA and the PEAKS Program was $127.0 million, compared to $72.2 million as of December 31, 2012.  See below for more information regarding the company's recorded liability related to the 2009 RSA and the PEAKS Program.


     The following tables set forth the roll-forward of the company's contingency liability in the three and twelve months ended December 31, 2013, which primarily related to the 2009 RSA and the PEAKS Guarantee(b).  The changes to the company's contingency liability included:

  • additional amounts recorded for the 2009 RSA and PEAKS Guarantee;
  • guarantee payments, Payments on Behalf of Borrowers(b), and Discharge Payments(a) related to the 2009 RSA and PEAKS Program (net of recoveries); and
  • estimated recoverable amounts under the PEAKS Guarantee.









Contingency Liability Roll-forward
in the Three Months Ended
December 31, 2013



(Dollars in thousands)


Balance at September 30, 2013

$81,235


Accruals for PEAKS Guarantee and 2009 RSA

60,277


Other accruals

632


Guarantee Payments, net

(1,985)


Payments on Behalf of Borrowers

(3,851)


Discharge Payments

(912)


Estimated Recovery

604


Balance at December 31, 2013

$136,000














Contingency Liability Roll-forward
in the Twelve Months Ended
December 31, 2013



(Dollars in thousands)


Balance at January 1, 2013

$123,439


Accruals for PEAKS Guarantee and 2009 RSA

69,954


Other accruals

3,716


Settlement Payment (2007 RSA)

(46,000)


Guarantee Payments, net

(4,106)


Payments on Behalf of Borrowers

(11,499)


Discharge Payments

(912)


Estimated Recovery

1,408


Balance at December 31, 2013

$136,000














 


     The following table sets forth the range of the company's internal goals for the twelve months ending December 31, 2014 with respect to:

  • the percentage increase/(decrease) in New Student Enrollment in 2014 compared to 2013;
  • Revenue per Student per Quarter;
  • Free Cash Flow(c);
  • Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") (d); and
  • Earnings per Share (diluted).











Internal Goals for the Twelve
Months Ending December 31, 2014







Low End of
Range


High End of
Range







(Dollars in thousands,

except per share and
per student data)






New Student Enrollment in 2014 compared to 2013

(2.0)%


8.0%






Revenue per Student per Quarter

$4,300


$4,500






Free Cash Flow(c)

$75,000


$100,000






EBITDA(d)

$140,000


$170,000






Earnings per Share (diluted)

$3.00


$3.65






_____________









(a) On February 20, 2009, the company entered into agreements with an unaffiliated entity (the "2009 Entity") to create a program that made private education loans available to its students (the "2009 Loan Program"). Under the 2009 Loan Program, an unaffiliated lender originated private education loans to the company's eligible students and, subsequently, sold those loans to the 2009 Entity. No new private education loans were or will be originated under the 2009 Loan Program after December 31, 2011, but immaterial amounts related to loans originated prior to that date were disbursed by the lender through June 2012.


     In connection with the 2009 Loan Program, the company entered into a risk sharing agreement (the "2009 RSA") with the 2009 Entity. Under the 2009 RSA, the company guarantees the repayment of any private education loans that are charged off above a certain percentage of the private education loans made under the 2009 Loan Program, based on the annual dollar volume. The company made payments to the 2009 Entity related to its guarantee obligations under the 2009 RSA, net of recoveries, in the amount of approximately $1.9 million in the three months ended December 31, 2013 and $2.6 million in the twelve months ended December 31, 2013.  The company asserted the right to offset amounts owed to it by the 2009 Entity under a revolving promissory note (the "Revolving Note") related to the 2009 RSA, net of recoveries, of $0 in the three months ended December 31, 2013 and $8.0 million in the twelve months ended December 31, 2013.  Approximately $6.8 million of the amount that the company claimed as an offset against the Revolving Note in the twelve months ended December 31, 2013 related to the company's election under the 2009 RSA to discharge its guarantee obligations with respect to certain defaulted private education loans under the 2009 Loan Program.  The company recorded all amounts claimed as offsets in Other current liabilities on its Consolidated Balance Sheet.  The company has also elected to accelerate the timing of certain guarantee payments to the 2009 Entity that the company would otherwise be required to make at a later date, in order to discharge its guarantee obligations under the 2009 RSA related to certain 2009 Loan Program private education loans that default ("Discharge Payments").  The amount of Discharge Payments that the company made in the three and twelve months ended December 31, 2013 was $0.9 million.


     In addition, the company has made advances to the 2009 Entity under the Revolving Note.  The Revolving Note bears interest, is subject to customary terms and conditions and may be repaid at any time without penalty prior to its 2026 maturity date.  The company has no immediate plans to significantly increase the amount of advances that it makes to the 2009 Entity under the Revolving Note, but the company may decide to do so in the foreseeable future.  The face value of the Revolving Note as of December 31, 2013 was approximately $8.2 million.  The carrying value of the Subordinated Note (defined below in footnote (b)) and Revolving Note as of December 31, 2013 was approximately $2.5 million and is included in Prepaid expenses and other current assets on the company's Consolidated Balance Sheet.  For additional information about the 2009 RSA, see the company's Form 10-Q filed with the Securities and Exchange Commission ("SEC") on October 29, 2013.











(b) On January 20, 2010, the company entered into agreements with unrelated third parties to establish the PEAKS Private Student Loan Program ("PEAKS Program"). Under the PEAKS Program, an unaffiliated lender originated private education loans to the company's eligible students and, subsequently, sold those loans to an unaffiliated trust ("PEAKS Trust").


     The PEAKS Trust issued senior debt in the aggregate principal amount of $300 million ("PEAKS Senior Debt") to investors. The lender disbursed the proceeds of the private education loans to the company for application to the students' account balances, and the company transferred a portion of each disbursement to the PEAKS Trust in exchange for a subordinated note issued by the PEAKS Trust ("Subordinated Note"). No new private education loans were or will be originated under the PEAKS Program after July 2011, but immaterial amounts related to loans originated prior to that date were disbursed by the lender through March 2012.


     The Subordinated Note is non-interest bearing and has been recorded net of an unamortized discount based on an imputed interest rate of 9.0% in Other assets on the company's Consolidated Balance Sheets. The maturity date of the Subordinated Note is in March 2026. The face value of the Subordinated Note as of December 31, 2013 was approximately $73.0 million.


     The PEAKS Trust utilized the proceeds from the issuance of the PEAKS Senior Debt and the Subordinated Note to purchase the private education loans made by the lender to the company's students. The assets of the PEAKS Trust (which include, among other assets, the private education loans owned by the PEAKS Trust) serve as collateral for, and are intended to be the principal source of, the repayment of the PEAKS Senior Debt and the Subordinated Note.  The PEAKS Trust is required to maintain assets having an aggregate value that exceeds the outstanding balance of the PEAKS Senior Debt.


     The company guarantees payment of the principal and interest owed on the PEAKS Senior Debt, the administrative fees and expenses of the PEAKS Trust and the required ratio of assets of the PEAKS Trust to outstanding PEAKS Senior Debt ("PEAKS Guarantee"). The company made guarantee payments related to the PEAKS Program to the PEAKS Trust in the amount of approximately $1.0 million in the three months ended December 31, 2013 and $2.4 million in the twelve months ended December 31, 2013.  In addition, the company has made payments on behalf of certain student borrowers under the PEAKS Program to the organization that services the student loans on behalf of the PEAKS Trust to help those borrowers avoid defaulting on their PEAKS Program private education loans ("Payments on Behalf of Borrowers"), which defaults would have triggered contractually required payments by the company under the PEAKS Program.  The company made Payments on Behalf of Borrowers in the amount of $3.9 million in the three months ended December 31, 2013 and $11.5 million in the twelve months ended December 31, 2013.


     The carrying value of the Subordinated Note and Revolving Note as of December 31, 2013 was approximately $2.5 million and is included in Prepaid expenses and other current assets on the company's Consolidated Balance Sheet.  For additional information about the PEAKS Program, see the company's Form 10-Q filed with the SEC on October 29, 2013.











(c)  Projected free cash flow is an estimate of the company's operating cash flow adjusted for restricted cash and capital expenditures, net.  Projected free cash flow is not a measurement under GAAP in the United States and may not be similar to free cash flow measures used by other companies. The company's management utilizes free cash flow as a measure of cash generated from operations, and the company believes that projected free cash flow provides useful information to investors regarding the amount of cash that the company estimates that it will generate from operations over a certain period.

     Projected free cash flow is only an estimate and contains forward-looking information.  The company has made a number of assumptions in preparing the projections, including assumptions as to the components of the projected free cash flow.  These assumptions may not prove to be correct.  In order to provide projections with respect to free cash flow, the company must estimate amounts for the GAAP measures that are components of the reconciliation of projected free cash flow.  By providing these estimates, the company is in no way indicating that it is providing projections on those GAAP components of the reconciliation.  The projected free cash flow and component amounts are subject to various risks and uncertainties, and do not guarantee actual results for the period indicated.  Factors, risks and uncertainties that could cause actual results to differ materially from those projected include those discussed in the documents that the company files with the SEC.  The company undertakes no obligation to update or revise any of the projections, whether as a result of new information, future developments or otherwise.

     Projected free cash flow can be reconciled to the company's projected net cash flows from operating activities, as follows:


 


PROJECTED


For the Twelve Months Ending
December 31, 2014


Low End of
Range


High End of
Range


(Dollars in thousands)

Net cash flows from operating activities
   before guarantee payments

$125,000


$170,000

Guarantee payments

(30,000)


(50,000)





Net cash flows from operating activities

$95,000


$120,000





Adjust for: 




          Capital expenditures, net

(20,000)


(20,000)

Free Cash Flow

$75,000


$100,000

 

(d)   Projected EBITDA is an estimate of the company's net income plus interest, taxes, depreciation and amortization for the twelve months ended December 31, 2014. EBITDA is not a measurement under GAAP in the United States and may not be similar to EBITDA measures of other companies. Non-GAAP financial information should be considered in addition to, but not as a substitute for, information prepared in accordance with GAAP. The company believes that EBITDA provides useful information to management and investors as an indicator of the company's operating performance.

     Projected EBITDA is only an estimate and contains forward-looking information. The company has made a number of assumptions in preparing the projection, including assumptions as to the components of the projected EBITDA. These assumptions may or may not prove to be correct. In order to provide projections with respect to EBITDA, the company must estimate amounts for the GAAP measures that are components of the reconciliation of projected EBITDA. By providing these estimates, the company is in no way indicating that it is providing projections on those GAAP components of the reconciliation. The projected EBITDA and component amounts are subject to various risks and uncertainties, and do not guarantee actual results for the period indicated. Factors, risks and uncertainties that could cause actual results to differ materially from those projected include those discussed in the documents that the company files with the SEC. The company undertakes no obligation to update or revise any of the projections, whether as a result of new information, future developments or otherwise.

     Projected EBITDA can be reconciled to the company's projected net income for the period indicated, as follows:

 


PROJECTED


For the Twelve Months Ending

December 31, 2014


Low End of
Range


High End of
Range


(Dollars in thousands)

Net Income

$72,000


$88,000

Plus: Interest expense 

3,000


2,000

         Income taxes

40,000


55,000

         Depreciation and amortization

25,000


25,000

EBITDA

$140,000


$170,000

 

SOURCE ITT Educational Services, Inc.

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Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, de...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...