A look at some of the day’s big movers
Digital Ally Inc (NASDAQ:DGLY) has won what it called a “signficant victory” in a patent battle with Axon Enterprise Inc (NASDAQ:AAXN).
The decision of the US patent office came as a jolt to the company formerly known as TASER International and maker of the eponymous electrically charged weapons.
Digital Ally said the patent office denied Axon’s petition for a review of a patent held by Digital Ally relating to automatic activation of multiple recording devices in response to a trigger event.
"We are extremely pleased with the Patent Office's decision to confirm the validity of our '452 Patent," said Digital's CEO, Stanton Ross.
"It is unfortunate that Axon continues to raise these baseless validity arguments to avoid a clear case of willful infringement. We remain committed to defeating Axon's arguments and ultimately winning this lawsuit,” Ross added.
Shares in Digital Ally rose by more than a third.
Go tell the Spartons
With the value of the pound lower than a snake’s belly following the UK’s decision to exit the European Union and the recent indecisive election result, the trend has been for US companies to swoop to buy UK companies, but London-listed Ultra Electronics Holdings PLC (LON:ULE) has reversed that trend.
It secured the backing of the Sparton Corporation (NYSE:SPA) board for a US$23.50 a share cash offer, prompting a 3.4% rise in Sparton’s share price to US$23.1236.
As bid premiums - or premia, if you were classically educated - go, it’s hardly a blockbuster but then it had been revealed back on 26 June that the two were in bid talks.
Prior to news of the negotiations, shares in electromechanical devices designer Sparton were languishing at around the US$18.34 mark.
“This transaction is the result of the significant time and effort the company has invested in its previously announced process to explore strategic alternatives, including a potential acquisition of Sparton,” said Joseph Hartnett, the interim president & chief executive officer of Sparton.
Home on the range
KB Home (NYSE:KBH) was wanted, after it announced what it called “the grand opening” of its newest Austin-area community, Pioneer Point in Round Rock, Texas.
Pioneer Point is close to several major employers, including high-tech giants Dell, Samsung, and IBM.
According to Round Rock’s web site, it is the 31st largest City in Texas and one of the fastest growing cities in the nation.
Trampled underfoot
Fashion brands owner Cherokee Inc (NASDAQ:CHKE) plunged 29% after its first quarter results were released after the market closed last night.
“Operationally, fiscal 2018 is off to a solid start,” said Henry Stupp, the chief executive officer of Cherokee Global Brands.
With the shares down 31% at US$5.35, heaven knows what the share price reaction would have been had the new financial year got off to a bad start … except it has.
Based on generally accepted accounting principles (GAAP), the net loss in the three months to the end of April was US$3.3mln, compared with a profit in the corresponding period of 2016 of US$2.6mln.
The company, which recently acquired the Hi-Tec sportswear brand, said that excluding Hi-Tec, like-for-like revenues plummeted to US$5.2mln from US$10.7mln the year before, largely due to the decrease in North America revenues related to the Cherokee brand as the company continues to make the transition to new wholesale licensees.
During the quarter, some of the decrease was offset by global revenue increases, particularly in Europe, Asia and South Africa as the demand for Cherokee-branded products continues to grow, the company said.
Problems in Dextera's laboratory
Market makers took a slice out of the stock price of medtech Dextera Surgical Inc. (NASADAQ:DXTR), after the company temporarily stopped shipping its MicroCutter 5/80 Stapler and reload cartridges.
The halt was in response to six reports that surgeons were unable to clamp the MicroCutter 5/80 Stapler after inserting a MicroCutter 30 Reload into the stapler prior or during a surgical procedure. No adverse events or complications have been associated with these reports.