Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.
Upstate consumer confidence inches up in July
Upstate New York’s consumers regained some confidence in July, a month after curtailing their willingness to spend in June. That’s according to the overall consumer-confidence
Big Lots opens new Binghamton store
BINGHAMTON — Big Lots opened its new Binghamton store Friday with a ribbon-cutting ceremony and check presentation. The new store at 10 Glenwood Ave. replaces
DeWITT — Inficon (SIX Swiss Exchange: IFCN) earned $9.1 million in the second quarter, down from $10.7 million a year earlier. Earnings per share for
NY seeks proposals for flood-control surveying in Broome, Steuben, Schuyler counties
New York State is calling for proposals to perform $355,000 in boundary survey work on flood-control projects in Broome, Steuben, and Schuyler counties. The surveying
Keystone Associates adjusts to survive tough economy
BINGHAMTON — There aren’t a lot of huge building projects going on in the area, but Keystone Associates Architects, Engineers and Surveyors, LLC has managed
Chemung Financial profit dips 7 percent in 2nd quarter
ELMIRA — Chemung Financial Corporation (ticker: CHMG) reported net income of $2.4 million, or 53 cents a share, in the second quarter, down 7 percent from
Elmira Savings profit up 4 percent in second quarter
ELMIRA — Steady mortgage and consumer-loan activity helped Elmira Savings Bank (NASDAQ: ESBK) produce a 4 percent increase in net income in the second quarter,
Pinckney Hugo marks 10 years of double-digit growth
How does a company get listed on the Inc. 5000 list six years in a row? For the Syracuse–based marketing-communications firm Pinckney Hugo Group (PHG), LLC, the answer is to post average annual, compounded revenue growth of 25 percent to 30 percent. “Capitalized billings are now $38 million with gross revenues running at $15 million
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How does a company get listed on the Inc. 5000 list six years in a row?
For the Syracuse–based marketing-communications firm Pinckney Hugo Group (PHG), LLC, the answer is to post average annual, compounded revenue growth of 25 percent to 30 percent.
“Capitalized billings are now $38 million with gross revenues running at $15 million in 2012,” according to Douglas (Doug) Pinckney, company president. PHG now employs 45 people, up from the original six and an increase of 10 employees in just the last year, he adds.
PHG is a full-service, marketing-communications agency providing strategic solutions for clients in a broad range of industries. The firm offers clients strategic planning, creative design, research, direct-marketing, media placement, public relations, social media, and video production.
The three corporate principals are Doug Pinckney (48), president; Christopher Pinckney (45), executive creative director; and Aaron Hugo (36), executive vice president. Key staff also includes Kathi Brogan, vice president of media services; Colleen O’Mara, director of public relations; Cathy Van Order, director of production services; and Adam Jwaskiewicz, director of interactive services.
Recounting the firm’s history, Doug Pinckney says, “[The] agency was founded in 1940 as the Spitz Agency and later sold to Mike Siano, who renamed it Siano-Spitz … We [the three principals] purchased the agency in 2002.”
PHG outgrew its original location and purchased a former warehouse at 760 W. Genesee St. in downtown Syracuse. The agency currently occupies 20,000 square feet of the 36,000-square-foot structure, having expanding four times since occupying the building. No other tenant is in the structure. The three principals formed a real-estate company called PH Crane, LLC, which owns the building. The property is currently assessed at $480,000, with a full market value of $568,047, according to City of Syracuse online property-tax records. PH Crane bought the structure for $350,000 in December 2005. The previous owner was Marnandi Realty Corp.
Doug Pinckney ascribes his success to what some call the Satchel Paige school of management. Paige, a legendary baseball player, was quoted as saying “I’m always looking over my shoulder to see who’s gaining on me.” Pinckney paraphrased Paige by saying, he “runs scared, preferring to focus on keeping the client happy. As a buyer of advertising services for many years, sitting on the other side of the table, I saw too many agencies become complacent. I want us [the agency] to stay hungry.” Consequently, PHG eschews long-term contracts and most retainers.
Pinckney also attributes the firm’s sustained growth to a laser-like focus on talent. Attracting outstanding talent to Central New York is problematic, with the best results coming from those who already have a tie to the region. He estimates that half of the current staff left the region and returned to escape the high costs and pressures of major metropolitan areas and to raise families. “There are times we hire staff even when there isn’t a position, anticipating we will generate the business to support the talent,” he says. “Now that we have become one of the top local firms, we are drawing a number of résumés, which makes recruiting and retention [a little] easier … I also think there has been a renaissance in Syracuse that is helping our efforts.”
The principals at PHG show no signs they will slow down after celebrating the agency’s 10th anniversary in September. Except for a small mortgage on the building at 760 W. Genesee St., the company is debt-free and funding its growth from cash flow. While PHG isn’t focused on whether the company will make the Inc.–5000 list next year, past performance and the company focus suggest the agency will stay on the fast track for sustained growth.
Contact Poltenson at
npoltenson@cnybj.com
Anaren reports decline in sales and profit
DeWITT — A nearly 20 percent drop in sales resulted in a more than 30 percent profit plunge in the fiscal fourth quarter at Anaren, Inc. (NASDAQ; ANEN), which reported its earnings Aug. 6 after the market close. Anaren’s net sales for the quarter ending June 30 fell 19.1 percent to $38.2 million from $47.2 million
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DeWITT — A nearly 20 percent drop in sales resulted in a more than 30 percent profit plunge in the fiscal fourth quarter at Anaren, Inc. (NASDAQ; ANEN), which reported its earnings Aug. 6 after the market close.
Anaren’s net sales for the quarter ending June 30 fell 19.1 percent to $38.2 million from $47.2 million in the year-ago quarter. Net income slipped to $2.9 million, or 20 cents a share, this fiscal fourth quarter from $4.2 million, or 29 cents per share, in the same period in 2011.
DeWitt–based Anaren develops and manufactures components and subsystems for markets including satellite communications, defense, and wireless communications.
Excluding non-cash equity based compensation and intangible amortization, Anaren’s earnings per share (EPS) in the latest quarter was 26 cents, compared to 34 cents in the fiscal fourth quarter of 2011. The 26 cents beat analysts’ consensus EPS estimate of 23 cents, according to Thomson Reuters.
Still, Anaren’s shares dropped sharply Aug. 7 with the stock slipping $1.36, or 6.6 percent, to $19.22. At that price, the stock was still up more than 15 percent year to date.
Anaren’s leader pointed out the positives in the company’s earnings trends.
“While current quarter revenue and profitability remains below fiscal 2011 fourth-quarter levels, we were pleased to see 10 percent sequential quarterly sales growth, driven by strengthening demand for wireless infrastructure products,” Anaren President and CEO Lawrence A. Sala said in the earnings report. Improvements in operating income coupled with increasing sales and cost-cutting actions since the beginning of the year should lead to better sales and more profitability in fiscal 2013, he added.
In an Aug. 7 conference call with investors and the media, Sala said some of those cost-cutting measures, which began in late fiscal 2011, included cutting 20 percent of the company’s work force across several of its locations, reducing research and development expenses, and trimming discretionary spending on things such as outside consultants.
Anaren’s wireless group net sales dropped 32.5 percent from $19.7 million to $13.4 million during the fiscal fourth quarter as overall demand remained soft. However, sales improved 30 percent sequentially over the fiscal third quarter of this year as demand began to ramp up. As the company focuses on new product investments in the area of wireless-infrastructure components and low-power wireless Anaren Integrated Radio (AIR) module product lines, the company says it expects increased wireless sales in 2013. Some of Anaren’s major wireless customers include E.G. Components, Huawei, Nokia, and Richardson.
Anaren’s space and defense group sales dipped 9.5 percent from $27.5 million a year ago to $24.8 million in the latest quarter, primarily due to an expected decline in low-temperature co-fired ceramics sales. The $34.8 million in new orders during the quarter were driven by ground-based radar satellite and passive-ranging applications and helped boost the order backlog to $105 million. Major customers include Lockheed Martin, Northrop Grumman, and Raytheon.
Looking ahead to results from the fiscal first quarter of 2013, which runs through Sept. 30, company officials expect wireless and space and defense sales to compare with fourth-quarter levels with estimated net sales in the $36 million to $41 million range with earnings-per-share of 13 cents to 24 cents.
Sala said the company expects mid-single-digit growth in the space and defense sector throughout the fiscal year, but doesn’t expect wireless sales to begin to pick up until the fiscal second quarter, ending Dec. 31.
Anaren (www.anaren.com), founded in 1967, has more than 1,200 employees at five facilities around the world. The company produces high-frequency electronics for the wireless infrastructure, wireless consumer products, satellite, defense electronics, and other industries.
Contact DeLore at tdelore@cnybj.com
Upstate consumer confidence rebounds slightly in July
Upstate New York consumers grew slightly more willing to spend in July, according to a monthly survey from the Siena (College) Research Institute (SRI). SRI’s overall consumer-confidence index for upstate New York rose 2.1 points to 71.3. The increase marks a reversal from June, when the index plunged 5.5 points. Although July’s bump up in confidence
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Upstate New York consumers grew slightly more willing to spend in July, according to a monthly survey from the Siena (College) Research Institute (SRI).
SRI’s overall consumer-confidence index for upstate New York rose 2.1 points to 71.3. The increase marks a reversal from June, when the index plunged 5.5 points.
Although July’s bump up in confidence did not make up for the previous month’s loss, it did move the optimism index closer to its break-even point of 75. That’s the spot at which consumers split equally between expressing optimism and pessimism.
A confidence index above 75 means more consumers were optimistic than pessimistic. An index below 75 indicates prevailing pessimism.
July’s confidence index rose as upstate consumers became more willing to spend in both the present and the future. Upstate’s current consumer-confidence index moved up 1.9 points to 76.2, while its future confidence index climbed 2.2 points to 68.1.
“When we look at the current component, we’re slightly above the break-even point, although it’s very close,” says Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director. “It’s the future of Upstate that’s not looking so good.”
Consumers in New York State as a whole were essentially split between optimism and pessimism. The state’s overall-confidence index crept up 0.9 points to 75.4. Its current-confidence index increased 1.5 points to 75, and its future-confidence index nudged up by 0.5 points to 75.7.
Metropolitan New York City’s consumers displayed little change in attitude from last month. The area’s overall confidence slipped 0.2 points to 77.6. Meanwhile, a 1.2-point gain in current confidence pushed that indicator to 74.3 but was counterbalanced by a 1-point drop in future confidence, which declined to 79.8.
“July was kind of a ‘blah’ month,” Lonnstrom says. “Every time something good happened, something bad happened. As a result, we didn’t really move a lot.”
That trend held true across the nation, according to the University of Michigan’s Consumer Sentiment Index. It showed national consumer confidence eroded 0.9 points in July to 72.3.
The nation’s current confidence inched up 1.2 points to 82.7. But its future confidence dipped 2.2 points to 65.6.
Gas and food prices
The portion of upstate New Yorkers reporting hardships due to gasoline and food prices diminished slightly in July, according to SRI. The institute’s survey showed that 59 percent of upstate residents called gasoline prices a problem, down from 63 percent in June.
When it came to food prices, 68 percent of upstate consumers said they faced a challenge, a notch below the 69 percent who reported a problem paying for food in June. And 51 percent of the region’s residents said both gas and food were problematic in July, below June’s reading of 57 percent.
Statewide, opinions on gasoline and food prices trended in the opposite direction. In July, 56 percent of New York’s consumers cited gasoline prices as a problem, up from 55 percent the previous month. Food prices were a challenge for 68 percent of the state’s residents, an increase from 66 percent the previous month.
Finally, the SRI survey found 47 percent of statewide residents listing both gasoline and food prices as a problem. That’s above 46 percent doing so in June.
New York buying plans
Consumers increased their plans to buy computers, furniture, and major home improvements in July, SRI said. They drew back on intentions to purchase cars and trucks, as well as homes.
Buying plans rose 1.9 points for computers to reach 15.3 percent of consumers saying in July that they planned to buy a computer. Purchase plans ticked up 0.1 points for furniture to 19.9 percent.
Major home-improvement buying plans jumped 2.9 points in July. SRI found that 17.4 percent of consumers planned to purchase a major home improvement.
“People are still afraid to go out and buy a house,” Lonnstrom says. “As a result, we’ve got this pent-up demand. They’re saying, ‘If we’re not going to buy, we might as well fix up where we are.’ ”
Home-buying plans fell 1.4 points to 4.2 percent. Plans to buy cars and trucks slid 0.5 points to 10.3 percent.
SRI calculated its consumer-confidence index after surveying 804 New York State residents over the age of 18 in July. A margin of error does not apply to consumer confidence index results, SRI says. However, buying plans have a margin of error of plus or minus 3.5 points.
Contact Seltzer at rseltzer@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.