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IBM Is Not Out of the Woods Yet

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On Thursday afternoon, International Business Corporation (NYSE: IBM) reported its weaker than expected fourth quarter, showing that its transformation struggles continue. The large software acquisition  of Red Hat that helps customers manage a growing hybrid cloud world while using AI to drive efficiency did not manage to bring the desired improvement. The pandemic led to an entirely different scenario and adjusted profits declined by nearly a third in 2020. Upon the results, stock fell more than 6% in after-hours trading. For the past year, Big Blue’s shares have declined 5.1% while the Dow Jones Industrial Average to which it is a member of, gained 6.8% with the S&P gaining 16% during the same period.

Q4 earnings

Net income was $1.36 billion, or $1.51 a share, which is significantly less than $4.11 a share in the same quarter last year and less than the $1.81 a share that analysts had expected. After taking away significant restructuring charges and similar effects, earnings amount to $2.07 a share, down from $4.79 a share in 2019’s quarter.

Analysts expected sales of $20.7 billion, but they shrank from $21.78 billion the year before to $20.37 billion. This is IBM’s lowest quarterly revenue since 1997. Looking at YoY figures, revenue has fallen 30 of the past 34 quarters. The only solace investors could possibly find is in the fact that Red Hat’s revenue increased 18% compared to last year’s quarter, but this wasn’t enough to move the needle.

2020 figures

Revenue dropped from $77.15 billion in 2019 to $73.62 billion, pulling down adjusted earnings from $12.81 a share to $8.67. Before COVID-19 started its relentless march across the globe, analysts expected adjusted earnings of $13.30 a share on sales of $79.4 billion, according to FactSet, but expectations took a sharp dive afterwards. The delivered results were even weaker. At the end of the day, companies are what their figures say they are and right now IBM’s record continues to trend in the wrong direction with shrinking earnings and sales.

2021 outlook

Although Big Blue will be getting smaller on purpose, the planned spinoff of the managed infrastructure business at the end of the year is expected to result in sustainable mid-single-digit revenue growth and a strong free cash flow. The spin-off, along with the $34 billion 2018 Red Hat acquisition and new Chief Executive Arvind Krishna are all parts of an effort to better position IBM in the cloud space which is ran by no other than Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG)(NASDAQ: GOOGL). As if things weren’t hard enough.

IBM expects to grow revenue this year, but the story is more complicated than that. It will take a while before its strategic acquisition makes its way to improved top and bottom lines. Unfortunately, the overall picture is that revenue shrank for the fourth straight quarter, leaving the new executive sitting in the same chair as his predecessor who had 22 straight quarters of revenue losses under his watch. Despite Krishna’s sound approach, IBM’s efforts are simply not generating the expected growth, for now. But it is certainly too soon to say his transformation strategy has failed. However, something needs to change and as soon as possible.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

News From The Vaccine World

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Less than a year before the COVID-19 started its relentless march across the globe Novavax (NASDAQ: NVAX) was facing delisting from the Nasdaq. The 33-year-old Maryland-based pharmaceutical company didn’t have a single approved shot after hundreds of millions of dollars invested in its R&D efforts. Wall Street likes to take bets on unproven biotech such as Moderna Inc (NASDAQ: MRNA), but it can be unforgiving of failure.  Fortunately, Novavax is now on the verge of getting approval in the UK, which will probably be followed by the US. Interim data have shown that its vaccine has an efficacy rate up there with the shots developed by Moderna, BioNTech (NASDAQ: BNTX) and Pfizer (NYSE: PFE), all of which are based on revolutionary mRNA technology. However, Novavax’ candidate s is cheaper and easier to transport and can be stored at room temperature for at least 24 hours. Additionally, the one-shot candidate by Johnson & Johnson (NYSE: JMJ) that can be kept at normal temperatures was granted an emergency use authorization during the weekend.

Merck and Johnson will join forces

Merck & Co Inc (NYSE: MRK) will manufacture the vaccine made by Johnson & Johnson (NYSE: JMJ) under an unusual deal that the Biden administration engineered to boost production of the single-shot ja which has been hampered by manufacturing delays.

The Biden administration helped to engineer the deal between the competitors after J&J, which was, experienced production hold-ups. J&J is the world’s largest healthcare company, but when it comes to vaccines, Merck has the expertise as it is one of the world’s largest vaccine makers with many approved shots.

Sanofi (NASDAQ: SNY) is another large vaccine maker that has fallen behind in the COVID-19 vaccine race and has agreed to help boost supplies of the J&J vaccine in Europe. Last month, it stated it would use its capacity to fill vials.

Novavax has finally stopped gasping for air

The CEO of Novavax, Stanley Erck, stated their candidate is more than 90% effective against the original strain, 86% effective against the U.K. strain and considerably less effective against the South African strain. According to forecasts, Novavax will generate more than $5 billion in revenue this year. As it is applying for approval for it flu shot, it will start studies on combining the Covid-19 and flu vaccine into a single shot later this year.

A story with a happy ending for everyone?

Novavax’s story resembles a Cinderella story as a little company that was on the verge of potentially closing has really been able to play with the big boys in the race for the Covid vaccine. The bottom line is that the US will have enough coronavirus vaccine doses for every adult by the end of May, which is sooner than anticipated, thanks in part to an unusual type of collaboration we didn’t see since World War II between two of the country’s largest drugmakers.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Workhorse and Worksport Both Delivered Good News This Week

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EV Update

This week began with good news in the EV world. On Monday, electric truck maker Workhorse Group (NASDAQ: WKHS) reported before market open. Its shares bounced 4.7% in midday trading Monday after the electric vehicle maker reported a surprise fourth-quarter net profit despite falling short on sales. A piece of good news were more then welcome after last week’s selloff that plunged as low as 47.5% plunge last Tuesday, after the U.S. Postal Service awarded a contract for delivery trucks exclusively to Oshkosh Corporation (NYSE: OSK), while Workhorse was widely expected to win at least a part of the contract. On Tuesday morning, tonneau-cover manufacturer Worksport (OTC: WKSP) announced it is expanding its capacity to meet increased demand. Worksport announced this morning that it received over US$2.3 Million to date from Exercised Warrants from the recent oversubscribed Regulation A offering.

Workhorse Q4 results

The company reported its net income rose to $280.5 million from $655,000 a year ago, thanks largely to income derived from its investment in Lordstown Motors (NASDAQ: RIDE), an electric pickup startup founded by Workhorse’s former chief executive. The FactSet expected a net loss of $15.1 million. Revenues increased from $3,000 to $652,000, due to a higher volume of produced and delivered trucks, but still came short of FactSet consensus of $1.2 million. According to its Chief Executive, the company is entering the new year in its strongest-ever position, both financially and operationally. With over $200 million of cash on its balance sheet and over 8,000 vehicles in its backlog, it can reliably continue building its multi-year growth plan.

The EV maker is not taking a recent high-profile defeat lying down

The company also revealed it will meet with U.S. Postal Service (USPS) management on Wednesday to discuss the latter’s recent awarding of a 10-year contract that would place Workhorse among top EV manufacturers. With at least 50,000 trucks to be manufactured within a decade, this will be the most dramatic modernization of the USPS fleet in three decades. While the USPS is one of the more financially strapped government entities, cy it’s considered to be an extremely reliable business partner. Following the USPS’s awarding of the contract to Oshkosh, Workhorse issued a press release in which it clearly stated it intends to explore all avenues that are available to non-awarded finalists in a government bidding process. Its odds of getting a second shot could depend on whether President Biden is able to force out the postmaster general who was installed last year by board members appointed by former President Donald Trump.

Worksport is expanding due to increased demand

Innovative pickup truck tonneau cover manufacturer Worksport partnered with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its revolutionary TerraVis solar system for their upcoming electric pickup trucks is expanding further. The company announced on Tuesday morning it is in the final phase of a strategic manufacturing expansion discussions with a few Tier-1 and Tier-2 OEM manufacturing power houses in Canada. The company aims to expand its manufacturing into North American state-of-the-art facilities with 20,000 to 50,000 square feet of operating space to meet its recent U.S.-based Private Label customer growth.  Considering the company was awarded its first trademark in China, this is only the beginning of Worksport’s growth story, not to mention the company is also expanding outside the pickup truck market to the consumer market by extending its solar fusion line with mobile TerraVis COR™ system that can be used independently and recharged via solar or A/C power. These discussions involve logistics to ensure scalability in the manufacturing processes. The expansion will give the company control over capital expenses, greatly reducing risks of overextending its financials during periods of intense demand while building its major Automotive, Freight & Transport, Marine, and Rail ecosystems. With its CEO Steven Rossi at the helm, Workhorse is going all in to exceed customer expectations in terms of quality, innovation, convenience and last but not least, affordability.

Outlook

Workhorse aims to increase production to three trucks a day by the end of this month and reach a daily output of 10 trucks by the end of June. Worksport is aiming to become a Tier 1 OEM manufacturer of solar-powered tonneau covers for electric makers and by the looks of it, it’s well on track, especially as it successfully closed its $4 million Regulation A offering at the beginning February well ahead of the scheduled closing due in November 2021. Demand that is fueling Worksport to rapid growth is key, which is why Workhorse isn’t willing to take USPS’ no for answer.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaPRs

Worksport Receives over US$2.3 Million to date from Exercised Warrants

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WKSP

TORONTO – March 4th, 2021 — Worksport Ltd (OTC: WKSP) (or the “Company”) is announcing that following the success of their previously oversubscribed Regulation-A public offering, the Company has received over US$2,300,000 from investors who have exercised their warrants.  Having close to 20% of outstanding warrants exercised in such short order following the closeout of the offering again signals the strong interest and support from Worksport’s dedicated investors and shareholders alike.

This additional influx of capital will go to work towards its strategic North American and Chinese manufacturing investments as well as in the development of its TerraVis™ solar tonneau cover system and TerraVis COR™ mobile energy storage system (ESS).

“We would like to take this second opportunity to again express our sincere gratitude by thanking those who invested, continue to share our vision of a bright future, and managed to exercise their warrants in a quick turnaround,” said Worksport CEO Steven Rossi.  “We are in the midst of a major growth period for the Company as we continue to receive this additional working capital that will all but ensure the realization of both the TerraVis™ tonneau cover system and its allied TerraVis COR™ mobile energy storage system to market.  As was stated earlier this week, the Company is deep in discussions with high profile market players as strategic means for rapid & sustainable growth.  Worksport has a myriad of amazing developments in the works and will be updating shareholders on several projects as they become material.”

Investors are reminded that they may redeem their warrants anytime within a period of 12 months from the time of their investment at a price of 20 cents ($0.20) per share.  Worksport strongly encourages investors to exercise their warrants before they expire, especially as they are currently in the money as of the time of this writing.  Warrant redemption can be executed directly with Worksport by emailing the completed warrant redemption form (previously emailed to them) to Faran Ali at fali@worksport.com. They may also call 1 (888) 506-2013 or (917) 793-1634 for assistance through the process.

To stay up-to-date on all the latest Worksport news… investors, shareholders, and supporters are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com and www.goterravis.com.  Worksport will continue to update investors, shareholders, and supporters to maintain the highest level of disclosure and information dissemination as Worksport continues to grow and develop at a very rapid pace.

About Worksport Ltd.

Worksport Ltd. (currently OTCQB: WKSP) develops and manufactures high quality, modular, attractively priced tonneau covers and solar-powered systems for light-duty trucks such as the Sierra, Silverado, Canyon, RAM, Ford F-Series, et al. and consumer adventures & emergency/ disaster-recovery purposes, where portable energy is a necessity.  The modular, redefining Worksport TerraVis™ tonneau cover system is being mindfully designed for the jobsite contractor and off-road, light-duty trucker – for work and play – to sustainably supply extra energy for those additional miles.  Its allied TerraVis COR™ mobile energy storage system (ESS), expected to launch by end of 2021, will be another redefining product targeted for vacationers, second-home owners, and campers.  Plans are also being constructed to address the dire adoption & scaling needs of the EV markets with grid micro-charging stations to provide convenience and efficiency in recharging to smaller form-factor EVs.  For more information, please visit www.worksport.com and www.goterravis.com.

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:

Mr. Steven Rossi
CEO & Director

Worksport, Ltd

T: 1-888-554-8789
E: srossi@worksport.com

 

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport, Ltd. operations or to the environment in which it operates, which are based on Company estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport, Ltd.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport, Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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