Finnzymes is a Finland-based provider of integrated tools for molecular biology analysis, including reagents, instruments, consumables and kits. The company generated revenues of $20 million in fiscal 2009.

The Finnzymes acquisition will expand Thermo Fisher’s portfolio of reagents and other consumables for the molecular biology research and diagnostics markets. Finnzymes has expertise in DNA polymerases, which have demonstrated significant increases in the performance of enzymes. This benefits a variety of applications in different fields like genetic testing, basic genomic research, forensics and food testing.

Thermo Fisher will add Finnzymes primarily to its Analytical Technologies Segment, with a few of its equipment and consumables product lines into the company’s Laboratory Products and Services Segment.

Headquartered in Waltham, Massachusetts, Thermo Fisher Scientific, Inc. was formed through the merger of Thermo Electron Corporation with Fisher Scientific International Inc. in Nov 2006. Thermo Fisher Scientific serves its customers through two principal brands, Thermo Scientific and Fisher Scientific.

Thermo Fisher offers a wide range of products and an unmatched breadth of technologies to its customers. This differentiates the company from its peers and gives it a competitive edge. Presently, we have a ‘Neutral’ recommendation on Thermo Fisher.

Total revenues were down in 39 of the 46 states for which data was available, and all three of the major sources of state revenue declined. Corporate income taxes were down the most, falling 5.8%, followed by individual income taxes, which were off by 4.5% and sales taxes were down 4.2%.

The Southwest region had the biggest drop in tax collections, with revenue down by 18.1 percent overall. New England was the only region reporting growth in overall tax collections at 0.5 percent — almost all due to Massachusetts, where an increase in collections was due to legislated changes. The worst hit state was Oklahoma where total revenues were down a stunning 26.9%, followed by Arizona, with revenues off 17.1% from a year ago. This was the fifth straight quarter of year over year declines in revenues, which means that we were already dealing with easy comps.

On the bright side, the year-over-year decline was far smaller than the declines seen earlier in the year. The year-over-year declines in the first three quarters of the year were all in double-digits, peaking at a 16.4% decline in the second quarter. In other words, the fourth quarter year over year decline was only a quarter of that in the second quarter.

States & Their Budgets

“Calendar 2009 will be remembered as bringing historically sharp declines in tax revenue to states," the report says. “Revenue gains toward the end of calendar 2009 were often driven by legislated tax increases rather than growth in the economy and tax base." Despite revenue gains in some states during the fourth quarter, the report concludes, “another negative quarter for the nation as a whole would not be unexpected. The troubling fiscal picture for states remains clearly in place."

By law or by state constitution, States have to have a balanced budget (Vermont is the exception). In good times, they can build up “rainy day funds" to tide them over through tougher times, but these are generally not popular during good times. Legislators would far rather cut taxes or increase spending in good times. Nobody ever won a landslide during an economic expansion by bragging about how much taxpayer money the state was holding in reserve. As a result, those rainy day funds are by now largely depleted.

Without the ARRA (aka the Stimulus Bill) -- about one third of which was aid to the States -- they would be in an even worse position. The Federal Aid helped in 2009, and will still help a bit in 2010, but by 2011 it will have mostly been spent. To balance their budgets they will have to either now raise taxes, which is something that the public is clearly in no mood for (and which would be counter productive for the economy), or slash spending.

Like the Federal government, much of the spending is legally mandated and will be very hard to cut. Just how many violent criminals do the states really want to release? Well, if you don’t release them, you have to keep them in prison at the cost of about $70,000 per year.

For years, states have been putting off paying into their pension plans, and now they are deeply underfunded (in total, the estimates run to about a $1 Trillion gap over what is actuarially needed, including post retirement healthcare expenses). Yes, the state pensions are often lavish, but they represent deferred compensation for work that has already been done, and cannot be altered for those who are already vested in them. They could change the rules for new employees, and that is likely to happen, but that will not provide much in the way of immediate relief.

The Tea Leaves Tell a Grim Tale

The total expected deficits for the states, most of which have fiscal years that end in June, are in the neighborhood of $180 billion for fiscal 2010. Fiscal 2011 is likely to be almost as bad. This is likely to lead to mass layoffs of state workers, including public safety personnel like state troopers. The lines at the Department of Motor Vehicles are likely to get much longer. Aid to municipalities and schools is likely to be cut back, resulting in layoffs of teachers, firefighters and police.

Kids who are stuck in the foster care system are going to be hurt very badly. Medicaid will likely be cut back, and as a result, poor people will die. States will most likely decide to use the same textbooks as last year, hurting revenues for firms like McGraw-Hill (MHP).  State parks and municipal swimming pools are likely to close.

In short, the quality of life is likely to deteriorate. The layoffs of state workers will simply add to the ranks of the unemployed and make the national unemployment  If the $180 billion gap were to be closed entirely by cutting staff, if we assume a cost of $100,000 per employee (how many cops and teachers are pulling down six figures, by the way?), then that could translate into an additional 1.8 million jobs lost.

Just to put that into perspective, at all levels of government there were only 22.4 million civilian employees in January. While it is not going to be entirely personnel costs that are cut, and some taxes and fees will go up, we are still probably looking at the prospect of a million more jobs lost.

Spending cuts and tax increases are not something that you want to see when the economy is still deeply distressed. State fiscal problems are one of the reasons why this recovery is going to be very slow and lethargic. Still, relative to how things were earlier in 2009, when states were seeing on average a 16.4% decline in revenues year over year, a 4.1% decline seems downright manageable.

Dirk van Dijk, CFA is the Chief Equity Strategist for Zacks.com. With more than 25 years investment experience he has become a popular commentator appearing in the Wall Street Journal and on CNBC. Dirk is also the Editor in charge of the market beating Zacks Strategic Investor service.

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However, continuing near-term losses due to start-up costs, capital expenditures, apprehension over a subsidy roll-back in Germany and earnings dilutive stock issuances may stunt the near-term share price upside potential. We maintain our market Neutral recommendation on the Zacks #3 Rank ('hold') stock.

Total revenues during the quarter, including discontinued operations, decreased 0.3% year-over-year to $220.7 million. Same-store quarterly rental revenues decreased 6.1% year-over-year due to a 0.2% decline in economic occupancy and 6.3% dip in average rental rates. Same-store revenue decreased across all geographic segments. Same-store operating expenses increased 6.7% during the quarter compared to the year-ago period. Same-store net operating income (NOI) during the quarter decreased 11.8% year-over-year to $92.4 million.

For full year 2009, total revenues including discontinued operations, increased 0.4% year-over-year to $886.7 million. Same-store fiscal 2009 rental revenues decreased 3.7% year-over-year due to a 0.6% decline in economic occupancy and 3.1% decline in average rental rates. Same-store operating expenses increased 4.0% during full year 2009 compared to the previous year. Same-store NOI during the fiscal decreased 7.1% year-over-year to $387.1 million.

AvalonBay completed development activities in four communities during the quarter, totaling 1,382 apartment homes at an aggregate cost of $465.2 million. These include Avalon White Plains in White Plains, New York; Avalon Union City in Union City, California; Avalon at Mission Bay North III in San Francisco, California; and Avalon Blue Hills in Randolph, Massachusetts. For full year 2009, the company completed the development activities of nine communities totaling 2,526 apartment homes at an aggregate cost of $810.7 million.

During the quarter, AvalonBay started development work on two communities totaling 399 apartment homes at a total cost of $64.9 million. The new construction activities are the first of its kind for full year 2009, and signify the stabilization of the markets. At year-end 2009, the company had seven properties in its development pipeline at a total estimated cost of $813.3 million.

During the quarter, AvalonBay commenced the redevelopment of an apartment community in California totaling 235 apartment homes for a total cost of $7.5 million. For full year 2009, the company completed the redevelopment of four communities totaling 926 apartment homes for a total cost of $28.7 million. AvalonBay sold three communities totaling 640 apartment homes for $110.2 million during the quarter. Subsequent to the end of the quarter, the company sold a 295-apartment home community for $45.5 million. For full year 2009, the company sold five communities totaling 1,037 apartment homes for $179.7 million.

At year-end 2009, AvalonBay had $316.4 million of unrestricted cash and cash in escrow, and an interest coverage ratio of 2.7x. During the quarter, AvalonBay purchased a principal amount of $300 million worth of unsecured notes at 108% of par. The company also purchased an additional $10.1 million principal amount of unsecured notes at 107% of par. In addition, the company repaid $112.2 million of unsecured debt and repaid $33.6 million of variable rate secured notes. Amid the continued challenges in the macroeconomic environment, the company expects FFO for full year 2010 in the range of $3.60 to $3.85 per share, with first quarter FFO in the range of 89 cents to 93 cents.

Company Description

Danvers is a holding company for banks in Massachusetts, with 25 branches. The company's has $2.5 billion in assets and provides traditional banking services and non-deposit investment products and services.

Income Surges

Danvers reported quarter results on Jan 28 that showed net income of $2.6 million, up from a slight loss one year ago. Total deposits rose 58%. Net interest and non-interest incomes were up 52% and 45%, respectively.

Earnings per share came out to 14 cents, well ahead of the 8 cent loss analysts were expecting.

Openings and Mergers

Danvers opened 2 new branches last year and acquired Beverly National Corp, which added 8 branches to the company's network. The company gave Beverly shareholders just under 4.5 million shares, valued at $62 million.

Estimates Jump

Following the report full-year estimates jumped. The Zacks Consensus Estimate for 2010 is up a dime to 63 cents on 6 revisions. There are only 2 upward revisions for 2011 so far, but he consensus is up 1 penny, to 82 cents.

If Danvers meets these projections, year-over-year growth will be 103% this year and another 30% in 2011.

The Chart

Shares are trading at a solid value as well. DNBK will cost you about 16 times forward earnings and the price to book is 0.94 times.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research

Quarterly Results

Total revenues in the fourth quarter increased 7% year over year to a record $2.84 billion. Growth was fueled by acquisitions and a favorable foreign currency translation. Analytical Technologies revenues increased 5% year over year to $1.19 billion. Laboratory Products and Services revenues increased 9% year over year to $1.77 billion. The company follows the practice of reporting inter-segment revenues, which were a negative $126.8 million in the reported quarter.

Thermo Fisher witnessed a contraction in margins. Gross margin declined 20 basis points (bps) year over year to 41.3% in the reported quarter. Adjusted operating and net margins declined 60 bps and 40 bps year over year to 18.0% and 13.6%, respectively. Both adjusted operating and net margins exclude amortization of acquisition-related intangible assets and other acquisition-related costs; restructuring costs; and related tax benefits.

Fiscal Year Results

Total revenues in fiscal 2009 declined 4% year over year to $10.11 billion, partly due to an unfavorable foreign currency translation. Analytical Technologies revenues declined 7% year over year to $4.15 billion. Laboratory Products and Services revenues were roughly flat year over year at $6.43 billion. Inter-segment revenues were a negative $470.8 million.

Balance Sheet and Cash Flow

Thermo Fisher ended fiscal 2009 with cash, cash equivalents and short-term investments of roughly $1.57 billion, an increase of 22% year over year. The company generated free cash flow of $0.46 billion and $1.47 billion in the fourth quarter and full fiscal 2009, respectively.

Outlook

Thermo Fisher has provided revenue and earnings per share guidance for fiscal 2010. For the year, Thermo Fisher expects revenues to grow 5% to 7% year over year to a range of $10.60 billion to $10.80 billion. Earnings per share are estimated to increase between 8% and 13% to a range of $3.30 to $3.45.

Headquartered in Waltham, Massachusetts, Thermo Fisher Scientific, Inc. is a scientific instrument maker and a world leader in serving science. The company was formed through the merger of Thermo Electron Corporation with Fisher Scientific International Inc. in Nov 2006. Thermo Fisher Scientific serves its customers through two principal brands, Thermo Scientific and Fisher Scientific.

Presently, we have a Neutral recommendation on Thermo Fisher.

The top-line growth was driven by increasing demand for mobile Internet applications, increasingly diversified linear products and the rapid adoption of smart-grid technologies.

Gross margin came in at 42.2%, up 130 basis points sequentially driven by a richly diversified product mix, volume ramp of high-margin new products, continued factory process and productivity enhancements, product and end yield improvements and double-digit year over year material cost reductions.

Operating margin came in at 21.3% compared to 14.4% in the previous quarter. Earnings per share (EPS) came in at 27 cents easily, beating the Zacks Consensus Estimate of 21 cents. The reported EPS beat management’s guidance by 2 cents and was up from 17 cents reported in the first fiscal quarter of 2009.

Going forward, management expects revenues to grow 30% year over year to approximately $225 million, driven by broad-based strength and new applications. Gross margin is projected at 41% – 41.5%. EPS is forecasted at 21 cents.

Skyworks continues to gain share across the mobile Internet spectrum, which covers everything from net books and data cards to smartphones and even entry-level handsets. In the reported quarter, Skyworks added several new Android-based platforms including Google’s (GOOG) recently launched Nexus One mobile phone.

The company continues to gain traction in the smartphone category. The company continues to leverage its expertise for producing cost-effective solutions that help decrease the handset manufacturers total billable material costs. The company has tie-ups with major OEMs that underscore the company’s success in gaining market share.

Headquartered in Woburn, Massachusetts, Skyworks Solutions designs, manufactures and markets a broad range of high performance analog and mixed-signal semiconductors that enable wireless connectivity.

If quarterly results come inline with expectations, as is most likely given its recent track record, fourth-quarter 2009 EPS would be 52.4% below the year-earlier level. The year-over-year drop is due to the lingering effects of operational issues at the company's Allston Landing, Massachusetts facility. For the full-year 2009, the current Zacks Consensus Estimate is $1.74, only modestly up in the last 30 days. Genzyme earned $1.95 a share in 2008.

In terms of earnings surprises, Genzyme reported in-line results in the third quarter but delivered a 6.9% negative surprise in the second quarter of 2009, with the four-quarter average being a negative 1.5%. We see no upgrade potential to the upcoming quarter, with earnings coming inline with the Zacks Consensus Estimate.

Genzyme's earnings outlook brightens significantly going forward, with the current Zacks Consensus Estimate for 2010 at $3.05 a share, a roughly 77% year-over-year growth. This is due to the resolution of the company's recent operational challenges. Genzyme spent a major part of 2009 dealing with contamination issues at its manufacturing plant at Allston Landing. In June 2009, the company had to temporarily halt production at this manufacturing plant due to contamination issues. The temporary suspension of production hampered the company's supply schedule for lead product Cerezyme as well as Fabrazyme. However, we are pleased to see that Genzyme is working on emerging from the impact of its manufacturing issues. The company has not only started supplying new lots of Cerezyme and Fabrazyme, it has also hired a new head of Quality Control.

For 2010, we have seen four estimate revisions in the last 30 days, out of the 12 for the year. There is no agreement among them, with an equal number going in either direction. In terms of magnitude, however, there is a positive trend, though very modest at this stage. This positive trend is evident from the roughly 3-cents increase in the estimate over the last 30 days. While Genzyme may have to face additional challenges before it is able to go back to a normal production and supply schedule, we believe the worst is over. We expect the market's focus to shift to the company's emerging pipeline and updates regarding the supply schedule of Cerezyme and Fabrazyme. The recurrence of manufacturing issues would be a major setback for the stock. The current Zacks #5 Rank ('strong sell') reflects the company's continuing near-term challenges. However, our recent upgrade of the stock's long-term recommendation to Neutral is based on the improving long-term outlook.

If Democrats fail to win the seat of late Senator Edward Kennedy, Republicans would have the necessary 41 votes to stall Democratic proposals, including the healthcare bill.  Those speculations made healthcare stocks look attractive yesterday.        

Technology shares rallied after a Credit Suisse (NYSE:CS) analyst raised his rating on Ciena Corp. (NASDAQ:CIEN), a maker of telecommunications equipment, saying revenue at the firm would beat expectations.

Health care stocks surged 2%, led by gains in DJIA components Merck (NYSE:MRK), up 2.9%, and Pfizer (NYSE:PFE), up 2.6%.  Health insurers also found favor with investors, with Humana (NYSE:HUM) rising 7.1%, Aetna (NYSE:AET) up 4.2%, and UnitedHealth Group (NYSE:UNH) up 4.1%.

On Tuesday, the Dow Jones industrial average rose 115.78 points, or 1.1%, to 10,725.43.  The broader Standard & Poor's 500 index rose 14.20 points, or 1.3%, to 1,150.23 points.  The technology-heavy Nasdaq composite index rose 32.41, or 1.4%, to 2,320.40.  It was the highest close for the Dow and the S&P 500 index in more than 15 months.  The market’s measure of volatility, the CBOE Vix, dropped 1.8% to 17.58.  Volume on the NYSE was a moderate 1.03 billion shares, with advancers ahead of losing issues by a 7-to-1 margin.

The dollar rose against a basket of currencies, up 0.7% to 77.51, as the euro continued to decline on Greece's debt issues.  As risk appetites grew, US Treasuries moved lower, with the 10-year down 6/32, and its yield moving higher to 3.700%. 

Of the thirty DJIA components, only four closed lower, with JP Morgan (NYSE:JPM) retreating 0.9% as the company said it sees larger-than-expected credit card write offs.  Kraft (NYSE:KFT) shares slipped 0.6% after the firm raised its bid for Cadbury (NYSE:CBY) to $19.6 billion, and the UK company approved the bid.  Boeing (NYSE:BA) shares fell 0.3%; this morning's news revealed its $10 billion in orders for 71 planes from recently-bankrupt Japan Airlines was more than previously disclosed.

All ten S&P500 sectors closed higher in yesterday's trade with healthcare shares leading the charge.  Gains were accorded to health care (+2.0%), basic materials (+1.8%), technology (+1.5%), telecommunications (+1.4%), utilities (+1.3%), financials (+1.2%), industrials (+1.1%), consumer services (+1.1%) oil and gas (+0.8%), and consumer goods (+0.7%).

Citigroup's (NYSE:C) results before the open failed upset investors’ calculations, as results of 33 cents were in line with Street estimates.  Citigroup noted a drop in consumer losses during the quarter with fewer write offs.

IBM (NYSE:IBM) came out with its numbers after the close.  The company reported fourth quarter results of $3.59 a share, ahead of consensus estimates of $3.47, and revenues of $27.2 billion exceeded estimates of $26.96 billion, helped by cost-cutting measures.  Also, its projections of 2010 earnings of at least $11.00 per share was ahead of Street projections of $10.88.

Headquartered in Chelmsford, Massachusetts, and founded in 1980, ZOLL Medical Corporation designs, manufactures, markets and sells non-invasive resuscitation devices and related software solutions both in the U.S. and overseas. The solutions include defibrillation devices with/without the pacing option, such as ZOLL's M Series, E Series, R Series, automated external defibrillator (AED) Plus, AED Pro, and LifeVest Wearable Defibrillator.

Furthermore, these solutions include a circulatory assist device called AutoPulse. The product pipeline also includes a unique fluid resuscitation product, called the Power Infuser, manufactured by Infusion Dynamics, a division of ZOLL. These devices help healthcare professionals, emergency medical service providers, and first responders to diagnose and treat cardiac arrest, wherever it occurs. ZOLL Data Systems, its subsidiary, designs and markets software that automates collection and management of clinical and non-clinical data.

ZOLL has operations in the United States, Canada, Germany, Austria, France, the Netherlands, New Zealand, the United Kingdom and Australia, and has distributorships and sales representative business relationships in the world’s major markets. Even though ZOLL’s international presence helps to widen its customer base among other positives, fluctuations in currency exchange rates can adversely impact the company’s international sales.

ZOLL operates in a highly competitive market. The industry is highly fragmented and includes numerous players. In the U.S. the company competes with the Physio-Control division of Medtronic Inc. (MDT) and Philips Electronics (PHG) in the area of defibrillation (in hospital and EMS).

Furthermore, ZOLL competes with Cardiac Science Corporation (CSCX), HeartSine Technologies, and Defibtech in the AED market. In the international market, ZOLL competes with Physio-Control, Philips, most AED competitors among others. Competitors will always look to grab market share by offering lower prices, new services or services that are different from those offered by ZOLL.

ZOLL has made multiple acquisitions including the acquisition of the assets of Lifecor, Inc., the manufacturer of the LifeVest Wearable Defibrillator, the purchase of the temperature management assets of Radiant Corporation and the acquisition  of intravascular temperature management (IVTM) assets from Alsius Corporation. These acquisitions have aided ZOLL’s growth and it is on the lookout for similar profitable transactions. However, the growth-by-acquisition strategy has inherent risks.

The above concerns have prompted us to downgrade ZOLL with a price target of $29.50. The price target is based on 37.3x our 2010 EPS estimate of $0.79.

The share registration for public sale conforms to the terms of the private financing agreement with Deerfield, and doesn’t indicate an unexpected exit or unloading of ownership on the part of Deerfield. As per the agreement, NeuroMetrix will not receive any proceeds from the public sale of these newly registered shares. 

Deerfield acquired NeuroMetrix’s common shares for $2 per share in Sept. 2009. The private placement generated a net $17.3 million for NeuroMetrix. 

NeuroMetrix designs, develops and sells proprietary medical devices to diagnose neuropathies, which are disturbances of the nervous system. Principally, the company offers physicians an in-office diagnostic system named the NC-stat System. The NC-stat System enables physicians to make rapid and accurate diagnoses of peripheral neuropathies, including carpal tunnel syndrome, low back and leg pain and diabetic peripheral neuropathy. 

The NC-stat System is composed of single use NC-stat disposable biosensors that are placed on the patient’s body; the NC-stat monitor and related components; and the NC-stat docking station, an optional device that transmits data via the company’s onCall Information System. The NC-stat System has been on the market since May 1999.

The new lawsuit filed by Haemonetics seeks multiple damages from Fenwal for wilful infringement and a permanent injunction on sale of its patented products.

Haemonetics Corporation is the market leader in developing and manufacturing blood collection and processing technology. Haemonetics operates in a very competitive environment, for both manual and automated systems, which includes big players such as Baxter International Inc. (BAX), Abbott Laboratories (ABT) and Medtronic Inc. (MDT).

Revenues for the quarter came in at $24.2 million as against $25.7 million in the year-ago quarter, down 5.8%. Research and development costs increased 5% to $23.2 million primarily because of increased costs for clinical and pre-clinical programs coupled with increased R&D headcount to support Alnylam’s alliances and development programs. 
 
General and administrative expenses increased 56% to $10.7 million. The increase in general and administrative spend was primarily driven by higher professional service fees in association with business activities, primarily legal activities, coupled with increased stock based compensation expenses.
 
Alnylam exited the quarter with $453.5 million in cash, cash equivalents and marketable securities and no debt compared to $512.7 million at the end of 2008. We are comfortable with the company’s current cash position, which allays our concern about its cash burn rate. Alnylam expects to end the year with cash, cash equivalents, and marketable securities balance in excess of $430 million.
 
Alnylam Pharmaceuticals, headquartered in Cambridge, Massachusetts, focuses on developing novel therapeutics based on a biological breakthrough known as RNA (Ribo Nucleic Acid) interference (RNAi). The company has entered into collaborations or deals with big pharmaceutical players like Novartis (NVS), Biogen Idec (BIIB), Roche and Takeda  to further develop and utilize its core technology. The partnerships with major players further validate the potential and viability of the RNAi approach. We believe the company will continue to form new alliances with leading pharmaceutical and biotech companies in future.
 
Currently, we are Neutral on Alnylam.

Revenues for the third quarter grew 4% from the previous year, totaling $412 million. Excluding a 3% unfavorable impact from changes in foreign currency, Millipore generated organic revenue growth of 7%. On a divisional basis, excluding changes in foreign currency, Millipore’s Bioprocess Division generated organic revenue growth of  8%, while the company’s Bioscience Division generated organic revenue growth of 4% from the previous year. In the Americas, revenue grew by 4% year over year while Asia recorded a 16% growth in revenues when compared to a similar period.

Bioprocess Division is sustaining its strong momentum and generating very attractive growth. The division’s performance has returned to tracking the strong fundamentals of the biotech industry and there was also an additional benefit of an increase in vaccine productions.

The company continues to increase its R&D spending in the third quarter and it is improving its innovation capabilities. Higher growth and profitability gives it the opportunity to invest while the general market is in a downturn. This investment will benefit its competitive position over time. The company completed the acquisition of BioAnaLab to extend the Company’s biopharmaceutical services offering to the European market.

Cash and equivalents were $190 million with long-term debt at $907 million and shareowner’s equity was at $1.4 billion.

It generated approximately $112 million of free cash flow, representing 74 % growth over the third quarter of 2008.  It also paid down $57 million of borrowings under the company’s $678 million primary revolving credit facility, leaving approximately $14 million drawn against it at the end of the quarter.

Millipore is a life science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, it collaborates with customers to confront the world's challenging human health issues. From research to development to production, its scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. The company was founded in 1954 and is headquartered in Billerica, Massachusetts. Major competitors of the company include Pall Corp. (PLL).

Chicago, IL – October 8, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Iron Mountain Incorporated (IRM), Equifax (EFX), R.R. Donnelley & Sons (RRD), Dun & Bradstreet Corp. (DNB) and Hewitt Associates, Inc. (HEW).

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Here are highlights from Wednesday’s Analyst Blog:

Iron Mountain Remains Solid

Boston, MA-based Iron Mountain Incorporated (IRM) is a leading provider of information protection and storage services in North America, Latin America, Europe and the Pacific Rim. We are encouraged by the company’s continuous momentum through 2007 and 2008, driven by strength in the storage segment, which has grown at a compound annual growth rate (CAGR) of 22%.

Through operational execution combined with record center optimization, the company expects to achieve over $20 million in cost savings. With an encouraging second half, steady recurring revenue, strong margins, strengthening capital structure and impressive cash flow, the company’s fundamentals remain strong.

Iron Mountain reported good second quarter results, with earnings exceeding the Zacks consensus estimates. We are encouraged by the continuing strength in the information protection and storage services business, which has driven steady profits for IRM. As a leader in record management and data protection services, it has further strengthened its position through acquisitions and international expansion.

While positive on the company’s prospects, we would like to caution investors about the high level of debt. Iron Mountain has a significant amount of debt (over 50% of its total asset balance) and low liquidity. At the end of the second quarter, the company reported $3.2 billion in total debt (including the current portion, yielding a debt-equity ratio of 1.65. Iron Mountain competes against Equifax (EFX), R.R. Donnelley & Sons (RRD), Dun & Bradstreet Corp. (DNB) and Hewitt Associates, Inc. (HEW).

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Cognex has alleged in complaints filed with the U.S. International Trade Commission (ITC) and in federal court in Massachusetts that HALCON software, marketed by MVTec Software GmbH, infringes on at least three Cognex machine vision patents. The ITC is investigating 20 companies for violating Cognex patents by selling, importing and using MVTec products that contain machine vision technology invented and patented by Cognex.

A prior settlement with Multitest Electronische Systeme GmbH was announced on Sep 8, 2009.

Headquartered in Massachusetts, Cognex Corporation designs, develops, manufactures and markets machine vision systems.

Other terms of the settlement were not disclosed. Management added that the company had invested over $100 million in R&D to develop its leading edge technology and will continue to take a very strong stand to protect its patents whenever the company discovers infringement.

Last month, the company reported weak results for the second quarter of 2009, due to a sharp slowdown in customer demand in the past few months.

Nevertheless, the rate of decline slowed and order rates stabilized a bit. The recent cost cutting measures undertaken by the management is expected to improve profitability in the coming quarters.

The desalination plant in Victoria will play a key role in meeting the needs of the drought-prone areas of southern and eastern Australia by turning sea water into 40 billion gallons of drinking water per year. This will reach 3.5 million people in Melbourne and adjoining areas. Under the $120 million contract, Tyco Flow Control will supply 6,200 mild steel pipes, stretching across 53 miles and connecting the desalination plant to the Melbourne water supply system.

Tyco Flow Control's innovative flow management technology enhances the safe and efficient delivery of water to homes, schools and communities. The superior quality of materials to be used will safeguard the pipeline for decades while reducing the energy needed for pumping water. The pipes will also be manufactured on a newly completed state-of-the-art production line that incorporates 'green' improvements such as reduced energy and water consumption.

Tyco International Ltd. emerged from the July 1997 acquisition of the namesake Massachusetts corporation by ADT Ltd., a public company organized under the laws of Bermuda. ADT changed its name to Tyco International Ltd. On June 29, 2007, Tyco International Ltd. completed the spin-offs of Covidien and Tyco Electronics, formerly its Healthcare and Electronics businesses, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders.

Effective March 17, 2009, the company discontinued its existence as a Bermuda corporation but remains a Swiss-domiciled entity. Its major competitors include General Electric Co. (GE), Honeywell International (HON) and United Technologies Corp. (UTX).

We currently have an Outperform recommendation on Tyco International.