Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

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Friday, July 11, 2008

Johnson Controls and IBM Develop Software Solution to Help Data Center Management

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MILWAUKEE, July 11, 2008 /PRNewswire via COMTEX/ ----Johnson Controls, Inc., the global leader in creating smart environments, today announced plans to integrate IBM Tivoli Monitoring for Energy Management software to help make data centers more energy efficient and sustainable. The offering fuses the advanced energy monitoring and control capabilities of Johnson Controls Metasys(R) building management system with data center energy management capabilities provided by IBM Tivoli Monitoring for Energy Management software.

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The integration of the two systems will help data center customers address the growing need to maximize energy efficiency, reduce power and cooling costs, and make real-time power decisions. For example, the Web-enabled offering will allow customers to decide whether to scale back data center power consumption, allocate energy consuming assets based on the priority needs of the business and make fast failover decisions to help ensure uninterrupted performance of critical IT services.

While the Metasys building management system provides real-time monitoring and control for building and system infrastructure, IBM Tivoli Monitoring for Energy Management software provides real-time monitoring and control for a facility's IT infrastructure. When integrated, data centers will have a complete solution that addresses both their systems and IT energy efficiency needs.

The Metasys building management system integrates building systems and equipment to provide centralized monitoring and control and a high degree of automation. Metasys software organizes and interprets events, audits and other critical data. It allows monitoring and control from any Web-enabled device. The result is buildings that are more comfortable, safe and sustainable.

The combination of the systems is intended to enhance an enterprisewide view of energy consumption -- from data centers to security systems, air conditioning and lighting. This information will allow customers to analyze events and alerts and then take action that can lower energy consumption and support quality delivery of IT services.

"As far as technology and solutions are concerned, this combined offering will provide customers with one comprehensive solution to help them improve energy efficiency," said David Love, director of Private Sector Solutions for Johnson Controls. "By combining IBM's software innovation with Johnson Controls' facility management expertise, customers around the globe will have efficient and manageable data centers. We will have truly set the standard."

Metasys software already includes features that reduce energy usage and lower utility bills. The latest Metasys software features expanded support for Demand Limiting and Load Rolling (DLLR). Demand Limiting predicts potential energy peaks by monitoring the utility meters and employs a flexible control strategy to defer energy consuming loads to times of the day when energy usage is billed at lower rates. Load Rolling provides a control strategy that reduces total energy usage by adjusting or resetting noncritical equipment, while maintaining occupant comfort. By incorporating IBM Tivoli Monitoring for Energy Management software into Metasys building management system, another layer of energy management will be added to an already robust platform.

In combination, Metasys with IBM Tivoli Monitoring for Energy Management software will consolidate views of energy management information, enabling optimization across data centers and building infrastructures. Web-enabled monitoring capabilities will offer customers the ability to understand energy usage remotely, allowing facility and IT managers to identify potential energy-related problems and take corrective or preventive action immediately. Additionally, historical trending and forecasting capabilities can enhance precision in existing environments. Energy planning features will allow customers to set power and usage thresholds to control energy usage regardless of demand.

"Customers today are faced with an array of energy challenges such as increased power and cooling costs, exceeding power capacity, and an inability to monitor and plan for power consumption," said Stuart McIrvine, director, Emerging Markets, IBM Tivoli. "IBM's software offers tools to monitor and manage power usage, and together with Johnson Controls, we will be able to expand on our data center management capabilities to include facility management in order to provide customers with a holistic view of energy consumption and its potential impact on their businesses."

About Johnson Controls

Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and 1 million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit http://www.johnsoncontrols.com/.

SOURCE Johnson Controls

http://www.johnsoncontrols.com

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