SEG Feb 2012 Monthly Flash Report February 2012

Public SaaS Companies

Select M&A Transactionsand

Financial and Stock Market PerformancePublic Software Companies By Product Category

February 2012

Software Equity Group Flash Report

Public SaaS CompaniesPublic Internet Companies By Product Category

12220 El Camino Real, #320

[email protected]

Copyright © 2012 by Software Equity Group, L.L.C., All Rights Reserved

San Diego, CA 92130

Software Equity Group, L.L.C.

p: (858) 509-2800f: (858) 509-2818


ABOUT OUR FIRM

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domainexpertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.


THE SEG SOFTWARE COMPANY MENTORING PROGRAM

As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in the next few years. We meet with them periodically, invite them to call whenever they’d like our opinion on an operational issue that might have exit implications later on, and we keep them apprised of M&A activity and financings in their product category. And the best news – we don’t charge for this mentoring advice. It’s complimentary. It’s our way of building value, and relationships.

We’re looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone conversation. We’ll then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, we’ll discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. We’ll assess the strengths and weakness of your financial performance, how that compares to other software companies your size, and how that relates to buyer expectations. We’ll discuss your market strategy, sales strategy, sales team track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road. We’re a terrific sounding board. We’ll give you an informed, honest and frank opinion – that’s what we’re known for. And we’ll offer informed and insightful observations, ideas and options based on 17 years of working with countless software companies worldwide.

If you run a profitable software company with revenue in excess of $10 million, and you’re interested in learning more about SEG’s complimentary, no obligation mentoring .2800-509-858or [email protected], please contact Kris Beible at

ADDITIONAL RESEARCH

http://www.softwareequity.com/research_quarterly_reports.aspx, please visit: 03Q1For our complimentary current and archived Quarterly Reports from

http://www.softwareequity.com/research_flash_reports.aspx, please visit: 2008For our complimentary current and archived Monthly Flash Reports from July

http://www.softwareequity.com/research_annual_reports.aspx, please visit: 2010through 2003 For our Annual Reports from

mailto: [email protected]

http://www.softwareequity.com/research_quarterly_reports.aspx

http://www.softwareequity.com/research_flash_reports.aspx

http://www.softwareequity.com/research_annual_reports.aspx

http://www.softwareequity.com

CAD Computer-aided DesignCAM Computer-aided ManufacturingCRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationEV Enterprise Value

List of Commonly Used Acronyms

FCF Free Cash FlowFORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesHR Human ResourcesNASDAQ National Association of Securities Dealers Automated Quotation SystemOS Operating SystemPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date


Category Performance

Select Software Industry M&A Transactions


Select January 2012 Software Industry M&A TransactionsDate

Announced EV/ Revenue

01/31/2012 Kenexa Corp. (NYSE:KNXA) OutStart, Inc. - $38.90 -01/31/2012 International Business Machines Corp. (NYSE:IBM) WorkLight Ltd. - $70.00 -01/31/2012 Imaging Spectrum, Inc. Express Digital Graphics, Inc. - - -01/27/2012 BMC Software Inc. (NasdaqGS:BMC) Numara Software, Inc. - $300.00 -01/26/2012 TDC A/S (CPSE:TDC) BluePosition ApS - - -01/25/2012 Waterland Private Equity Investments BV Actuera BV $19.47 - -01/24/2012 Playtech Limited (AIM:PTEC) Geneity Limited $3.59 $23.40 6.5x01/24/2012 Pacific Control Systems LLC Infotility, Inc. - - -01/23/2012 ISIS Equity Partners LLP; Foresight Group Autologic Diagnostics Ltd. $22.60 $71.70 3.2x01/23/2012 KeyedIn Solutions, Inc. Atlantic Global plc (AIM:ATL) - $4.51 2.5x01/23/2012 Cloud XL Network Resource Group Limited - $31.17 -01/23/2012 Meredith Corp. (NYSE:MDP) Allrecipes.com, Inc. - $175.00 -01/23/2012 Synopsys Inc. (NasdaqGS:SNPS) ExpertIO, Inc - - -01/23/2012 Descartes Systems Group Inc. (TSX:DSG) GeoMicro, Inc. - - -01/23/2012 Cornerstone Software, Inc. Makana Solutions, Inc. - - -01/23/2012 Twitter, Inc. Dasient, Inc. - - -01/20/2012 Groupon, Inc. (NasdaqGS:GRPN) Six Times Seven Inc. - - -01/20/2012 CITIC Capital Partners AsiaInfo-Linkage,Inc. (NasdaqGS:ASIA) - - -01/19/2012 Sony Entertainment Television UK Dolphin Television Ltd - - -

Acquirer TargetTarget TTM Revenue

($mm)Implied Enterprise

Value ($mm)

01/19/2012 Sony Entertainment Television UK Dolphin Television Ltd.01/19/2012 Hexagon AB (OM:HEXA B) MicroSurvey Software Inc. - - -01/19/2012 Constant Contact, Inc. (NasdaqGS:CTCT) CardStar, Inc. - - -01/19/2012 Twitter, Inc. Context Media Technologies, Inc. - - -01/18/2012 Arrow Electronics, Inc. (NYSE:ARW) TechTurn, Inc. - - -01/17/2012 BasWare Oyj (HLSE:BAS1V) First Businesspost GmbH $3.08 $15.64 5.1x01/17/2012 Everwin SAS STRAT-MIX - - -01/16/2012 Blackbaud Inc. (NasdaqGS:BLKB) Convio, Inc. (NasdaqGS:CNVO) - $276.24 3.6x01/16/2012 SAP AG (DB:SAP) datango AG - - -01/13/2012 VentureBeat, Inc. Bitmob Media, Inc. - - -01/12/2012 GINSMS Inc. (TSXV:GOK) Inphosoft Group Pte. Ltd. - $11.37 -01/12/2012 SAI Global Limited (ASX:SAI) Compliance 360, Inc. - $42.30 -01/12/2012 International Game Technology (NYSE:IGT) Double Down Interactive, LLC - $415.00 -01/12/2012 Thomson Reuters Tax & Accounting, Inc. Dr Tax Software Inc. - - -01/12/2012 Trimble Navigation Limited (NasdaqGS:TRMB) Plancal Holding AG - - -01/11/2012 Combitech CSE AB Sörman Information AB - - -01/10/2012 Investcorp Technology Partners Thought Equity Motion, Inc. $25.00 - -01/10/2012 Tangoe, Inc. (NasdaqGS:TNGO) Anomalous Networks, Inc. - $8.94 -01/09/2012 Brinks Co. (NYSE:BCO) Kheops, SAS - $17.00 -01/09/2012 Symantec Corporation (NasdaqGS:SYMC) LiveOffice LLC - $115.00 -01/09/2012 AuthenTec, Inc. (NasdaqGM:AUTH) Proxure, Inc. - - -01/09/2012 24 Mobile Advertising Solutions AB Liquid Air Lab GmbH - - -01/07/2012 InfoSpace, Inc. (NasdaqGS:INSP) 2nd Story Software, Inc. $78.10 $287.50 3.7x01/06/2012 LogMeIn, Inc. (NasdaqGS:LOGM) Bold Software, LLC - $16.50 -01/05/2012 Synchronoss Technologies, Inc. (NasdaqGS:SNCR) Miyowa Inc. $12.95 $59.00 4.6x01/04/2012 Trinity Mirror plc (LSE:TNI) The Communicator Corporation Limited $5.47 $12.49 2.3x01/04/2012 International Business Machines Corp. (NYSE:IBM) Green Hat Software Limited - - -01/04/2012 @WalmartLabs Small Society - - -01/03/2012 Callidus Software Inc. (NasdaqGM:CALD) LeadFormix Inc. - $9.00 -01/03/2012 Myriad Group AG (SWX:MYRN) Synchronica PLC (AIM:SYNC) - $41.85 2.3x


SEG Software Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA

YoY Stock Market Return

SEG Software Index $1,030.8 $949.5 $373.2 66.4% 20.3% 14.2% 2.5x 11.7x 2.3x 8.9x 3.2% Billing & Service Management $525.2 $600.8 $464.3 50.2% 23.4% 23.6% 1.3x 5.2x 1.2x 6.1x -16.3% Business Intelligence $1,153.9 $1,011.6 $342.3 79.0% 8.3% 22.8% 3.2x 33.8x 2.7x 18.0x 6.0% Content/Document Management $15,283.2 $13,885.8 $4,216.3 65.1% 25.1% 17.6% 2.5x 9.5x 2.3x 8.7x 3.5% Data Management & Integration $4,371.9 $3,951.1 $852.0 75.5% 23.0% 14.3% 2.9x 15.6x 2.7x 11.3x 7.1% Development Tools & Open Source $167.3 $132.6 $108.8 33.8% 9.9% 29.0% 1.2x 9.7x 2.3x 7.3x -16.2% Electronic Design Automation $339.1 $304.0 $105.9 80.4% 9.9% 10.1% 1.9x 26.6x 1.6x 7.5x 9.6% Engineering, PLM & CAD/CAM Software $6,876.4 $6,070.3 $1,405.4 87.0% 25.5% 14.2% 3.5x 13.9x 4.8x 11.7x -2.6% Enterprise Resource Planning $36,336.6 $35,404.6 $9,414.8 66.5% 23.3% 15.5% 2.9x 9.6x 2.7x 8.2x 24.7% Financial Services $1,001.4 $883.3 $374.3 57.1% 21.2% 6.9% 2.1x 8.9x 1.8x 8.3x 8.7% Healthcare $514.2 $604.5 $214.5 65.9% 23.1% 19.1% 2.9x 14.4x 2.5x 9.1x -0.7% IT Conglomerates $141,778.9 $125,891.9 $72,052.0 61.7% 27.1% 7.1% 2.3x 7.0x 2.2x 6.6x -7.1% Mobile Solutions/Content $171.7 $149.6 $115.3 66.3% 6.4% 9.4% 2.1x 11.2x 0.9x 6.4x -32.6% Multimedia, Graphics, Digital Media $562.3 $558.5 $677.9 66.5% 20.8% 11.0% 3.3x 15.2x 3.1x 9.7x -13.3% Networking & Networking Performance Mgmt. $857.6 $755.7 $198.4 79.5% 22.9% 19.8% 4.1x 20.5x 3.6x 14.6x 10.5% Security $890.5 $761.3 $364.2 81.8% 19.4% 12.4% 2.3x 11.3x 2.2x 10.7x 1.9% Storage & Systems Management Software $12,519.9 $11,419.9 $3,767.1 77.9% 25.1% 11.2% 2.3x 9.7x 2.3x 7.2x -2.4% Supply Chain Management & Logistics $499.5 $424.0 $227.3 57.8% 8.2% 13.7% 2.0x 12.9x 2.2x 12.4x 15.4% Vertical - Finance $2,206.8 $2,279.2 $596.4 59.9% 32.3% 15.1% 4.1x 11.6x 3.7x 10.3x -0.5%

Category Name

Vertical - Other $980.3 $1,012.5 $281.0 57.3% 15.7% 14.0% 3.3x 18.0x 3.0x 12.4x 15.7% Video Games $2,502.4 $2,337.5 $2,146.9 47.7% 6.8% 4.4% 1.2x 6.7x 1.0x 5.8x 22.1% Workforce & Service Management $328.4 $281.9 $121.3 62.9% 16.9% 15.7% 2.6x 15.2x 2.3x 10.5x 11.1%

TTM Revenue Growth 14.2%TTM EBITDA Growth 16.7%TTM Earnings Growth 29.5%Gross Profit Margin 66.4%EBITDA Margin 20.3%Net Income Margin 10.5%SG&A Expenses as a % of Total Revenue 35.5%R&D Expenses as a % of Total Revenue 13.8%

Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 16.2%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 37Working Capital to TTM Operating Expense Ratio 0.4

Levered FCF Margin 13.2%Cash from Operations Growth (YoY) 15.6%Cash from Investing Growth (YoY) -2.3%Cash from Financing Growth (YoY) -37.9%Levered FCF Growth (YoY) 12.6%


February 2012 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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9%SEG SW Index Software Stock Market Return: Jan 2012

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Amdocs Limited DOX $5,071.5 $4,149.5 $3,209.6 35.3% 18.7% 5.8% 1.3x 6.9x 1.2x 6.2x 1.0%AsiaInfo Holdings, Inc. ASIA $842.4 $600.8 $464.3 44.2% 24.8% 72.2% 1.3x 5.2x 1.2x 6.0x -45.4%CSG Systems International, Inc. CSGS $525.2 $698.8 $734.7 50.2% 23.4% 33.7% 1.0x 4.1x 0.9x 3.9x -16.3%Evolving Systems, Inc. EVOL $58.4 $28.8 $33.9 65.4% 17.1% 23.6% 0.8x 5.0x 1.3x 8.8x -35.5%MIND C.T.I. Ltd. MNDO $45.7 $29.5 $19.0 69.0% 28.0% -4.5% 1.6x 5.6x n/a n/a -10.3%Synchronoss Technologies, Inc. SNCR $1,255.3 $1,097.7 $229.1 53.7% 17.8% 38.0% 4.8x 27.0x 4.2x 15.1x 17.4%

Median: $525.2 $600.8 $464.3 50.2% 23.4% 23.6% 1.3x 5.2x 1.2x 6.1x -16.3%


Current Ratio 3.4xQuick Ratio 3.1xCash as Percent of Market Cap 29.5%Avg Days Outstanding: Accounts Receivable 86.0xAvg Days Outstanding: Accounts Payable 48.1xWorking Capital to TTM Operating Expense Ratio 0.8x

Levered FCF Margin 10.6%Cash from Operations Growth (YoY) -33.2%Cash from Investing Growth (YoY) -61.3%Cash from Financing Growth (YoY) -126.1%Levered FCF Growth (YoY) -22.6%






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14%Billing and Service Management Software Stock Market Return: Jan 2012

Billing & Service Management S&P NASDAQ SEG Internet Index

SEG Software Index Category: Business Intelligence


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Actuate Corporation BIRT $280.5 $213.1 $134.9 83.3% 20.6% 2.6% 1.6x 7.7x 1.5x 5.4x 3.8%Informatica Corporation INFA $4,498.5 $3,896.1 $783.8 84.2% 25.3% 20.6% 5.0x 19.7x 4.3x 14.2x -8.8%MicroStrategy Incorporated MSTR $1,238.9 $1,052.6 $562.2 74.7% 6.0% 23.7% 1.9x 31.4x 1.7x 16.9x 8.2%Pegasystems Inc. PEGA $1,068.9 $970.6 $390.6 59.5% 5.7% 22.0% 2.5x 43.6x 2.1x 31.5x -17.0%PROS Holdings PRO $436.9 $370.5 $96.6 72.6% 10.6% 36.0% 3.8x 36.3x 3.4x 19.0x 62.5%Qlik Technologies QLIK $2,359.6 $2,189.7 $293.9 89.0% 4.6% 42.0% 7.4x 162.9x 5.8x 38.6x 21.6%

Median: $1,153.9 $1,011.6 $342.3 79.0% 8.3% 22.8% 3.2x 33.8x 2.7x 18.0x 6.0%



Levered FCF Margin 4.3%Cash from Operations Growth (YoY) -4.2%Cash from Investing Growth (YoY) -82.2%Cash from Financing Growth (YoY) -30.6%Levered FCF Growth (YoY) 73.4%






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12%Business IntelligenceSoftware Stock Market Return: Jan 2012

Business Intelligence S&P NASDAQ SEG Internet Index

SEG Software Index Category: Content and Document Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Adobe Systems Incorporated ADBE $15,283.2 $13,885.8 $4,216.3 89.6% 34.8% 11.0% 3.3x 9.5x 3.1x 7.3x -6.4%EasyLink Services International ESIC $140.0 $212.3 $189.0 65.1% 23.4% 125.9% 1.1x 4.8x 1.1x n/a 9.7%EMC EMC $52,779.4 $50,853.8 $20,007.6 61.2% 25.1% 17.6% 2.5x 10.1x 2.3x 8.8x 3.5%IBM IBM $223,416.0 $242,911.0 $106,916.0 46.9% 24.5% 7.1% 2.3x 9.3x 2.2x 8.9x 18.9%Open Text Corporation OTEX $2,933.3 $3,158.7 $1,157.9 73.1% 27.5% 23.5% 2.7x 9.9x 2.5x 8.6x 2.6%

Median: $15,283.2 $13,885.8 $4,216.3 65.1% 25.1% 17.6% 2.5x 9.5x 2.3x 8.7x 3.5%



Levered FCF Margin 16.1%Cash from Operations Growth (YoY) 24.6%Cash from Investing Growth (YoY) 45.3%Cash from Financing Growth (YoY) -127.7%Levered FCF Growth (YoY) 8.9%






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12%Content and Document Management Software Stock Market Return: Jan 2012

Content/Document Management S&P NASDAQ SEG Internet Index

SEG Software Index Category: Data Management and Integration


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Guidance Software, Inc. GUID $195.0 $168.5 $104.6 72.8% 3.7% 13.8% 1.6x 43.6x 1.5x 15.6x 9.6%IBM IBM $223,416.0 $242,911.0 $106,916.0 46.9% 24.5% 7.1% 2.3x 9.3x 2.2x 8.9x 18.9%Informatica Corporation INFA $4,498.5 $3,896.1 $783.8 84.2% 25.3% 20.6% 5.0x 19.7x 4.3x 14.2x -8.8%Oracle Corporation ORCL $141,778.9 $125,891.9 $36,704.0 77.9% 42.0% 14.7% 3.4x 8.2x 3.3x 6.7x -11.9%Pervasive Software Inc. PVSW $93.2 $51.9 $49.4 86.0% 9.1% 7.2% 1.1x 11.5x 1.0x 9.1x 4.5%TIBCO Software Inc. TIBX $4,245.3 $4,006.2 $920.2 73.1% 21.5% 22.0% 4.4x 20.3x 3.9x 13.5x 18.6%

Median: $4,371.9 $3,951.1 $852.0 75.5% 23.0% 14.3% 2.9x 15.6x 2.7x 11.3x 7.1%









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12%Data Management and Integration Software Stock Market Return: Jan 2012

Data Management & Integration S&P NASDAQ SEG Internet Index

SEG Software Index Category: Development Tools and Open Source


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Adobe Systems Incorporated ADBE $15,283.2 $13,885.8 $4,216.3 89.6% 34.8% 11.0% 3.3x 9.5x 3.1x 7.3x -6.4%BSQUARE Corporation BSQR $42.5 $25.8 $101.0 21.5% 3.0% 19.8% 0.3x 8.5x n/a n/a -54.8%GeekNet GKNT $110.0 $86.0 $109.7 26.7% 0.4% 42.0% 0.8x 178.1x n/a n/a -8.8%Magic Software Enterprises Ltd. MGIC $224.7 $179.3 $107.9 41.0% 16.8% 38.2% 1.7x 9.9x 1.4x n/a -23.6%Microsoft Corporation MSFT $247,779.5 $209,891.5 $72,052.0 76.4% 41.6% 8.0% 2.9x 7.0x 2.7x 6.6x 6.5%Oracle Corporation ORCL $141,778.9 $125,891.9 $36,704.0 77.9% 42.0% 14.7% 3.4x 8.2x 3.3x 6.7x -11.9%Progress Software Corporation PRGS $1,446.3 $1,185.3 $533.6 83.6% 25.4% 0.8% 2.2x 8.7x 2.3x 9.0x -18.5%Red Hat, Inc. RHT $8,955.8 $8,147.5 $1,080.9 83.7% 22.4% 25.6% 7.5x 33.7x 6.5x 22.1x 12.2%

Median: $167.3 $132.6 $108.8 33.8% 9.9% 29.0% 1.2x 9.7x 2.3x 7.3x -16.2%









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14%Development Tools and Open Source Software Stock Market Return: Jan 2012

Development Tools & Open Source S&P NASDAQ SEG Internet Index

SEG Software Index Category: Electronic Design Automation


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Cadence Design Systems, Inc. SCIL $50.5 $42.4 $43.1 75.5% -7.4% -12.6% 1.0x n/a 0.9x n/a -19.3%Magma Design Automation, Inc. LAVA $497.6 $471.5 $146.4 87.2% 11.9% 11.7% 3.2x 27.0x 2.7x 9.1x 31.9%Mentor Graphics Corporation MENT $1,517.7 $1,634.8 $1,001.6 85.4% 16.5% 18.6% 1.6x 9.9x 1.6x 7.5x 8.9%PDF Solutions, Inc. PDFS $180.6 $136.5 $65.3 60.4% 7.9% 8.5% 2.1x 26.6x 1.7x 7.0x 10.4%Synopsys, Inc. SNPS $4,206.3 $3,206.4 $1,535.6 81.4% 22.1% 11.2% 2.1x 9.5x 1.9x 6.7x 7.5%

Median: $339.1 $304.0 $105.9 80.4% 9.9% 10.1% 1.9x 26.6x 1.6x 7.5x 9.6%



Levered FCF Margin 12.0%Cash from Operations Growth (YoY) 320.0%Cash from Investing Growth (YoY) 34.0%Cash from Financing Growth (YoY) -56.7%Levered FCF Growth (YoY) -3.3%






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12%Electronic Design Automation Software Stock Market Return: Jan 2012

Electronic Design Automation S&P NASDAQ SEG Internet Index

SEG Software Index Category: Engineering, PLM & CAD/CAM


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ANSYS, Inc. ANSS $5,588.1 $5,319.4 $659.8 87.9% 49.0% 17.0% 8.1x 16.5x 6.7x 13.1x 15.3%Autodesk, Inc. ADSK $8,164.8 $6,821.2 $2,150.9 89.8% 20.8% 14.4% 3.2x 15.3x 2.9x 10.2x -11.5%Cimatron Ltd. CIMT $31.7 $20.2 $39.5 86.0% 12.7% 13.4% 0.5x 4.0x n/a n/a -10.7%Dassault Systèmes DSY $10,124.0 $8,787.5 $2,316.3 86.0% 30.3% 14.0% 3.8x 12.5x n/a n/a 5.5%GSE Systems Inc. GVP $32.3 $14.7 $48.5 28.5% 1.9% 5.4% 0.3x 16.1x 0.3x n/a -46.3%Parametric Technology Corporation PMTC $2,941.0 $2,953.7 $1,218.7 69.7% 17.2% 19.7% 2.4x 14.1x 2.2x 9.2x 13.2%Stratasys, Inc. SSYS $779.1 $760.8 $155.9 52.9% 25.0% 27.7% 4.9x 19.5x 4.4x 13.5x 11.3%

Median: $6,876.4 $6,070.3 $1,405.4 87.0% 25.5% 14.2% 3.5x 13.9x 4.8x 11.7x -2.6%



Levered FCF Margin 17.5%Cash from Operations Growth (YoY) 17.1%Cash from Investing Growth (YoY) -256.5%Cash from Financing Growth (YoY) -63.2%Levered FCF Growth (YoY) -16.3%






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12%Engineering, PLM & CAD/CAM Software Stock Market Return: Jan 2012

Enterprise Resource Planning S&P NASDAQ SEG Internet Index

SEG Software Index Category: Enterprise Resource Planning


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Deltek PROJ $672.0 $792.4 $340.5 63.5% 12.3% 21.8% 2.3x 18.9x 2.2x 10.0x 45.0%Oracle Corporation ORCL $141,778.9 $125,891.9 $36,704.0 77.9% 42.0% 14.7% 3.4x 8.2x 3.3x 6.7x -11.9%QAD Inc. QADA $208.0 $149.2 $244.6 56.7% 8.3% 16.3% 0.6x 7.3x 0.6x 5.2x 50.7%SAP SAP $72,001.3 $70,016.8 $18,489.1 69.5% 34.4% 14.2% 3.8x 11.0x 3.4x 9.7x 4.4%

Median: $36,336.6 $35,404.6 $9,414.8 66.5% 23.3% 15.5% 2.9x 9.6x 2.7x 8.2x 24.7%



Levered FCF Margin 14.0%Cash from Operations Growth (YoY) 26.2%Cash from Investing Growth (YoY) 63.0%Cash from Financing Growth (YoY) -145.4%Levered FCF Growth (YoY) -18.9%






0%

2%

4%

6%

8%

10%

12%

14%Enterprise Resource Planning Software Stock Market Return: Jan 2012

Enterprise Resource Planning S&P NASDAQ SEG Internet Index

SEG Software Index Category: Financial Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ACI Worldwide, Inc. ACIW $1,017.8 $913.1 $471.3 70.9% 21.9% 16.9% 1.9x 8.8x 1.8x 7.6x 14.7%Bottomline Technologies EPAY $984.9 $853.5 $210.6 54.4% 16.6% 25.6% 4.1x 24.5x 3.7x 15.3x 19.2%DST Systems, Inc. DST $2,152.5 $3,101.2 $2,388.7 16.9% 16.7% 2.6% 1.3x 7.8x 1.5x 7.4x 2.6%EPIQ Systems, Inc. EPIQ $435.3 $616.8 $277.3 59.8% 24.6% 18.6% 2.2x 9.0x 1.8x 6.4x -5.1%Fair Isaac Corporation FICO $1,299.4 $1,579.8 $634.1 70.6% 29.1% 3.9% 2.5x 8.6x 2.5x 8.3x 42.8%Fiserv FISV $8,858.6 $12,198.6 $4,337.0 41.4% 31.0% 4.9% 2.8x 9.1x 2.7x 8.4x 1.8%NetSol Technologies Inc. NTWK $31.0 $50.7 $32.6 61.3% 20.4% -15.4% 1.6x 7.6x n/a n/a -72.7%S1 Corporation SONE $538.7 $450.6 $235.2 46.3% 6.0% 8.8% 1.9x 31.8x 1.8x 12.8x 51.6%

Median: $1,001.4 $883.3 $374.3 57.1% 21.2% 6.9% 2.1x 8.9x 1.8x 8.3x 8.7%

TTM Revenue Growth 6.9%TTM EBITDA Growth 19.3%TTM Earnings Growth -4.6%Gross Profit Margin 57.1%EBITDA Margin 21.2%Net Income Margin 7.8%SG&A Expenses as a % of Total Revenue 31.4%R&D Expenses as a % of Total Revenue 11.0%


Levered FCF Margin 11.6%Cash from Operations Growth (YoY) 25.4%Cash from Investing Growth (YoY) -135.3%Cash from Financing Growth (YoY) 36.2%Levered FCF Growth (YoY) 13.5%






-2%

0%

2%

4%

6%

8%

10%

12%Financial Services Software Stock Market Return: Jan 2012

Financial Services Software S&P NASDAQ SEG Internet Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Accelrys Inc. ACCL $415.5 $299.0 $141.9 70.9% 1.3% n/a 2.1x 158.8x 2.0x 9.1x -8.9%Allscripts Healthcare Solutions Inc. MDRX $3,624.6 $3,920.3 $1,366.3 46.1% 18.0% n/a 2.9x 15.9x 2.5x 8.5x -9.4%Cerner Corporation CERN $10,315.1 $9,693.9 $2,203.2 80.0% 26.7% 19.1% 4.4x 16.5x 4.1x 12.3x 23.2%Computer Programs and Sys, Inc. CPSI $627.6 $604.5 $173.5 45.8% 25.2% 13.2% 3.5x 13.8x 3.1x 11.9x 10.3%Epocrates, Inc. EPOC $233.8 $149.6 $113.9 66.3% 5.8% 12.7% 1.3x 22.5x 1.3x 15.4x n/aeResearchTechnology, Inc. ERT $272.8 $263.4 $177.5 41.8% 23.1% 48.9% 1.5x 6.4x 1.4x 4.7x -13.8%MedAssets MDAS $617.0 $1,494.3 $528.4 76.5% 26.7% 39.0% 2.8x 10.6x 2.5x 7.5x -46.3%Merge Healthcare MRGE $496.0 $702.1 $214.5 64.3% 22.8% 89.1% 3.3x 14.4x 2.6x 11.1x 28.0%Omnicell, Inc. OMCL $514.2 $314.3 $245.5 55.3% 9.8% 10.4% 1.3x 13.1x 1.2x 7.5x 11.2%Quality Systems, Inc. QSII $2,389.0 $2,258.9 $417.9 65.9% 31.2% 24.8% 5.4x 17.3x 4.6x 13.7x 1.6%Simulations Plus, Inc. SLP $49.2 $36.5 $11.9 76.3% 32.3% 15.4% 3.1x 9.5x 3.7x 6.8x -3.1%

Median: $514.2 $604.5 $214.5 65.9% 23.1% 19.1% 2.9x 14.4x 2.5x 9.1x -0.7%



Levered FCF Margin 7.9%Cash from Operations Growth (YoY) 42.6%Cash from Investing Growth (YoY) 28.5%Cash from Financing Growth (YoY) 5.6%Levered FCF Growth (YoY) 31.7%






0%

2%

4%

6%

8%

10%

12%

14%Healthcare Software Stock Market Return: Jan 2012

Healthcare S&P NASDAQ SEG Internet Index

SEG Software Index Category: IT Conglomerates


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Cisco Systems, Inc. CSCO $105,608.8 $78,099.8 $44,844.0 61.7% 27.1% 5.9% 1.7x 6.4x 1.7x 5.8x -7.1%Hewlett Packard HPQ $55,513.2 $78,453.2 $127,245.0 23.8% 13.3% 1.0% 0.6x 4.6x 0.6x 4.8x -38.8%IBM IBM $223,416.0 $242,911.0 $106,916.0 46.9% 24.5% 7.1% 2.3x 9.3x 2.2x 8.9x 18.9%Microsoft Corporation MSFT $247,779.5 $209,891.5 $72,052.0 76.4% 41.6% 8.0% 2.9x 7.0x 2.7x 6.6x 6.5%Oracle Corporation ORCL $141,778.9 $125,891.9 $36,704.0 77.9% 42.0% 14.7% 3.4x 8.2x 3.3x 6.7x -11.9%

Median: $141,778.9 $125,891.9 $72,052.0 61.7% 27.1% 7.1% 2.3x 7.0x 2.2x 6.6x -7.1%









0%

2%

4%

6%

8%

10%

12%IT Conglomerates Software Stock Market Return: Jan 2012

IT Conglomerates S&P NASDAQ SEG Internet Index

SEG Software Index Category: Mobile Solutions/Content


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Access TSE:4813 $155.5 -$109.1 $223.4 68.9% 20.6% -48.7% n/a n/a n/a n/a -69.1%AutoNavi Holdings AMAP $539.9 $369.7 $115.3 70.8% 34.3% 47.0% 3.2x 9.3x 2.7x 6.4x -32.6%Bitstream Inc. BITS $63.7 $59.6 $27.5 51.4% -13.5% 23.7% 2.2x n/a n/a n/a -19.5%DigitalGlobe, Inc. DGI $726.0 $925.3 $323.7 83.2% 45.7% 3.9% 2.9x 6.3x 2.5x 4.2x -48.9%Epocrates, Inc. EPOC $233.8 $149.6 $113.9 66.3% 5.8% 12.7% 1.3x 22.5x 1.3x 15.4x n/aGlu Mobile, Inc. GLUU $214.0 $177.0 $66.2 80.5% -20.1% 2.9% 2.7x n/a 2.3x n/a 6.7%Gree TSE:3632 $6,697.3 $6,424.3 $1,422.2 92.4% 53.0% 133.2% 4.5x 8.5x n/a n/a 79.6%Myriad Group SWX:MYRN $213.6 $201.2 $78.2 66.9% 3.8% -35.3% 2.6x 68.4x n/a n/a -19.0%Motricity MOTR $35.8 $38.6 $133.2 64.8% 1.3% 8.5% 0.3x 22.3x 0.3x 16.3x -96.0%Openwave Systems Inc. OPWV $171.7 $115.5 $162.4 53.7% -6.6% -1.7% 0.7x n/a 0.9x n/a -1.0%Opera OB:OPERA $587.2 $507.0 $143.3 47.3% 26.0% 30.7% 3.5x 13.6x n/a n/a 10.4%PCTEL, Inc. PCTI $125.9 $64.3 $75.4 46.9% 6.5% 15.1% 0.9x 13.1x 0.8x 6.5x 1.7%Sky-mobi Limited MOBI $119.7 $32.6 $106.2 31.7% 5.9% 5.8% 0.3x 5.2x 0.3x 2.1x -48.4%Smith Micro Software, Inc. SMSI $65.1 $11.0 $81.8 81.6% -27.2% -34.5% 0.1x n/a 0.2x n/a -85.6%TeleCommunication Systems, Inc. TSYS $133.9 $229.8 $425.4 35.6% 9.0% 9.4% 0.5x 6.0x 0.5x 3.9x -42.8%Trunkbow International Holdings TBOW $78.8 $69.2 $33.2 74.5% 51.6% 117.1% 2.1x 4.0x n/a n/a n/aVelti Plc VELT $539.6 $409.6 $159.6 57.5% 6.4% 28.1% 2.6x 39.9x 1.7x 6.7x -38.5%

Median: $171.7 $149.6 $115.3 66.3% 6.4% 9.4% 2.1x 11.2x 0.9x 6.4x -32.6%

TTM Revenue Growth 9.4%TTM EBITDA Growth -26.9%TTM Earnings Growth -55.9%Gross Profit Margin 66.3%EBITDA Margin 6.4%Net Income Margin -0.4%SG&A Expenses as a % of Total Revenue 36.4%R&D Expenses as a % of Total Revenue 18.4%


Levered FCF Margin -2.4%Cash from Operations Growth (YoY) -14.0%Cash from Investing Growth (YoY) -44.6%Cash from Financing Growth (YoY) 10.3%Levered FCF Growth (YoY) -32.6%






-2%

0%

2%

4%

6%

8%

10%

12%Mobile Solutions/Content Software Stock Market Return: Jan 2012

Mobile Solutions/Content S&P NASDAQ SEG Internet Index

SEG Software Index Category: Multimedia, Graphics and Digital Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Adobe Systems Incorporated ADBE $15,283.2 $13,885.8 $4,216.3 89.6% 34.8% 11.0% 3.3x 9.5x 3.1x 7.3x -6.4%Avid Technology, Inc. AVID $374.1 $353.4 $677.9 53.1% 3.0% -0.1% 0.5x 17.1x 0.5x 6.5x -41.8%Monotype Imaging Holdings TYPE $562.3 $558.5 $120.9 92.2% 40.1% 18.1% 4.6x 11.5x 4.2x 9.7x 38.9%Nuance Communications, Inc. NUAN $8,634.4 $9,020.5 $1,375.6 66.5% 20.8% 18.6% 6.6x 31.5x 5.4x 13.3x 40.3%RealNetworks, Inc. RNWK $350.5 $167.4 $353.3 62.7% 0.6% -21.4% 0.5x 77.1x 0.5x 17.4x -32.1%Rovi Corporation ROVI $3,529.8 $4,167.7 $691.2 88.4% 39.8% 28.4% 6.0x 15.2x 5.2x 11.6x -48.0%SeaChange International, Inc. SEAC $232.4 $149.8 $216.9 50.3% 11.0% 4.1% 0.7x 6.3x 0.7x 5.4x -13.3%

Median: $562.3 $558.5 $677.9 66.5% 20.8% 11.0% 3.3x 15.2x 3.1x 9.7x -13.3%









-2%

0%

2%

4%

6%

8%

10%

12%

14%Multimedia, Graphics and Digital Media Software Stock Market Return: Jan 2012

Multimedia, Graphics & Digital Media S&P NASDAQ SEG SW Index

SEG Software Index Category: Networking/Network Performance Mgmt


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Allot Communications Ltd. ALLT $471.6 $404.9 $77.8 71.5% 16.1% 36.5% 5.2x 32.3x 4.7x 23.5x 34.8%Cisco Systems, Inc. CSCO $105,608.8 $78,099.8 $44,844.0 61.7% 27.1% 5.9% 1.7x 6.4x 1.7x 5.8x -7.1%F5 Networks, Inc. FFIV $9,479.7 $8,923.2 $1,205.3 82.2% 32.5% 25.6% 7.4x 22.8x 6.1x 15.3x 10.5%NetScout Systems Inc. NTCT $857.6 $755.7 $297.2 78.8% 22.9% 4.5% 2.5x 11.1x 2.3x 8.5x -9.9%OPNET Technologies, Inc. OPNT $797.7 $686.3 $169.3 79.5% 20.3% 19.8% 4.1x 20.0x 3.6x 13.8x 23.7%Radware Ltd. RDWR $661.1 $560.2 $167.0 80.0% 16.4% 15.9% 3.4x 20.5x 3.1x n/a -15.7%SolarWinds, Inc. SWI $2,310.5 $2,147.1 $198.4 94.0% 47.9% 30.2% 10.8x 22.6x 9.3x 20.2x 67.2%

Median: $857.6 $755.7 $198.4 79.5% 22.9% 19.8% 4.1x 20.5x 3.6x 14.6x 10.5%









-2%

0%

2%

4%

6%

8%

10%

12%Networking/Network Performance Mgmt Software Stock Market Return: Jan 2012

Networking & Network Performance Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Security


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Blue Coat Systems, Inc. BCSI $1,109.1 $826.3 $467.2 77.1% 14.4% -7.2% 1.8x 12.3x 1.8x 10.7x -10.6%Check Point Software Tech Ltd. CHKP $11,685.2 $10,325.6 $1,247.0 88.4% 55.6% 13.6% 8.3x 14.9x 7.5x 12.7x 26.4%Commtouch Software Ltd. CTCH $80.1 $62.4 $22.4 82.8% 21.0% 33.6% 2.8x 13.2x 2.5x n/a -13.7%Imperva IMPV $728.9 $718.3 $72.0 79.1% -14.0% n/a 10.0x n/a 7.9x n/a n/aSourcefire, Inc. FIRE $890.5 $761.3 $150.4 78.2% 8.5% 17.6% 5.1x 59.3x 4.2x 23.0x 26.0%Symantec Corporation SYMC $12,539.1 $12,270.1 $6,722.0 85.5% 27.5% 11.1% 1.8x 6.6x 1.8x 5.3x -2.4%Trend Micro TSE:4704 $4,177.1 $2,817.6 $1,252.2 81.8% 34.6% 1.1% 2.3x 6.5x n/a n/a 5.2%VASCO Data Security International VDSI $318.2 $240.7 $152.6 65.1% 17.5% 42.7% 1.6x 9.0x 1.4x n/a 11.4%Websense, Inc. WBSN $733.7 $730.5 $364.2 83.6% 19.4% 9.4% 2.0x 10.3x 1.9x 8.5x -1.4%

Median: $890.5 $761.3 $364.2 81.8% 19.4% 12.4% 2.3x 11.3x 2.2x 10.7x 1.9%



Levered FCF Margin 20.4%Cash from Operations Growth (YoY) -10.3%Cash from Investing Growth (YoY) 29.8%Cash from Financing Growth (YoY) -25.6%Levered FCF Growth (YoY) -3.4%






-2%

0%

2%

4%

6%

8%

10%

12%SecuritySoftware Stock Market Return: Jan 2012

Security S&P NASDAQ SEG Internet Index

SEG Software Index Category: Storage and Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


BMC Software, Inc. BMC $6,171.4 $5,040.3 $2,169.5 75.1% 33.6% 8.8% 2.3x 6.9x 2.3x 5.4x -24.0%CA, Inc. CA $12,519.9 $11,478.9 $4,754.0 86.9% 36.5% 10.7% 2.4x 6.6x 2.3x 6.3x 8.3%Citrix Systems CTXS $12,159.7 $11,419.9 $2,206.4 89.7% 26.1% 17.7% 5.2x 19.8x 4.6x 14.8x 3.2%CommVault Systems, Inc. CVLT $2,045.5 $1,825.6 $382.2 86.8% 13.6% 28.0% 4.8x 35.0x 4.4x 22.3x 52.2%Compuware Corporation CPWR $1,712.2 $1,740.0 $993.3 66.2% 18.9% 9.2% 1.8x 9.3x 1.7x 7.5x -26.9%EMC EMC $52,779.4 $50,853.8 $20,007.6 61.2% 25.1% 17.6% 2.5x 10.1x 2.3x 8.8x 3.5%FalconStor Software, Inc. FALC $116.7 $80.1 $83.9 73.3% -7.6% 6.5% 1.0x n/a 0.9x n/a -31.3%IBM IBM $223,416.0 $242,911.0 $106,916.0 46.9% 24.5% 7.1% 2.3x 9.3x 2.2x 8.9x 18.9%Network Appliance, Inc. NTAP $13,533.8 $10,068.0 $5,683.1 63.1% 17.2% 23.9% 1.8x 10.3x 1.5x 6.8x -31.0%Oracle Corporation ORCL $141,778.9 $125,891.9 $36,704.0 77.9% 42.0% 14.7% 3.4x 8.2x 3.3x 6.7x -11.9%Quest Software, Inc. QSFT $1,690.7 $1,492.7 $828.3 88.4% 15.4% 11.2% 1.8x 11.7x 1.6x 5.6x -21.2%Symantec Corporation SYMC $12,539.1 $12,270.1 $6,722.0 85.5% 27.5% 11.1% 1.8x 6.6x 1.8x 5.3x -2.4%VMWare VMW $38,662.9 $34,600.7 $3,767.1 83.5% 28.0% 31.8% 9.2x 32.8x 7.6x 21.6x 6.7%

Median: $12,519.9 $11,419.9 $3,767.1 77.9% 25.1% 11.2% 2.3x 9.7x 2.3x 7.2x -2.4%









0%

2%

4%

6%

8%

10%

12%Storage and Systems Management Software Stock Market Return: Jan 2012

Storage and Systems Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Supply Chain Management & Logistics


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


American Software, Inc. AMSW.A $236.3 $191.0 $94.8 54.9% 16.4% 20.4% 2.0x 12.3x 1.7x n/a 35.5%Ariba, Inc. ARBA $2,558.0 $2,393.6 $479.1 65.7% 7.6% 27.3% 5.0x 66.1x 4.4x 18.9x -2.8%Aspen Technology, Inc. AZPN $1,687.6 $1,579.8 $223.0 76.6% -13.8% 26.2% 7.1x n/a 5.9x 237.6x 27.3%JDA Software Group JDAS $1,254.0 $1,241.7 $671.8 60.4% 24.5% 8.8% 1.8x 7.5x 1.7x 6.3x -2.4%Manhattan Associates, Inc. MANH $907.5 $809.2 $329.3 57.8% 20.1% 10.8% 2.5x 12.2x 2.2x 9.6x 48.6%ModusLink Global Solutions, Inc. MLNK $247.5 $135.9 $846.2 10.7% 3.1% -7.4% 0.2x 5.3x n/a n/a -6.7%Retalix Ltd. RTLX $426.2 $298.7 $227.3 41.7% 8.2% 13.7% 1.3x 16.1x 1.2x 13.0x 22.9%The Descartes Systems Group Inc. TSX:DSG $499.5 $424.0 $111.3 66.3% 28.0% 22.0% 3.8x 13.6x 3.4x 11.7x 15.4%XATA Corporation XATA $14.4 $49.3 $65.7 48.7% 2.8% -2.2% 0.8x 26.5x n/a n/a -53.3%

Median: $499.5 $424.0 $227.3 57.8% 8.2% 13.7% 2.0x 12.9x 2.2x 12.4x 15.4%









-2%

0%

2%

4%

6%

8%

10%

12%Supply Chain Management & Logistics Software Stock Market Return: Jan 2012

Supply Chain Management and Logistics S&P NASDAQ SEG Internet Index

SEG Software Index Category: Vertical - Finance


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Advent Software, Inc. ADVS $1,333.5 $1,276.6 $326.2 80.9% 32.3% 15.1% 3.9x 12.1x 3.6x 11.4x -11.2%Jack Henry & Associates, Inc. JKHY $2,961.0 $3,009.3 $993.6 41.4% 32.2% 7.9% 3.0x 9.4x 2.8x 8.7x 15.7%MSCI, Inc. MSCI $3,928.1 $4,681.2 $831.6 69.6% n/a n/a 5.6x n/a 5.0x 10.9x -4.8%SS&C Corporation SSNC $1,452.6 $1,549.1 $361.2 50.1% 36.8% 15.1% 4.3x 11.6x 3.9x 9.7x 3.9%

Median: $2,206.8 $2,279.2 $596.4 59.9% 32.3% 15.1% 4.1x 11.6x 3.7x 10.3x -0.5%









-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Vertical - Finance Software Stock Market Return: Jan 2012

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Blackbaud, Inc. BLKB $1,318.3 $1,266.3 $363.2 58.4% 19.4% 13.8% 3.5x 18.0x 3.1x 13.2x 15.7%Constellation TSX:CSU $1,871.6 $1,868.5 $743.9 56.2% 21.1% 25.3% 2.5x 11.9x 2.3x 10.4x 77.3%Ebix, Inc. EBIX $916.8 $928.4 $160.0 80.7% 43.9% 24.6% 5.8x 13.2x 5.2x n/a 9.9%Guidewire Software, Inc. GWRE $881.5 $886.9 $190.2 61.8% 13.6% n/a 4.7x 34.3x n/a n/a n/aItron, Inc. ITRI $1,580.0 $1,947.6 $2,412.3 30.5% 13.2% 14.0% 0.8x 6.1x 0.9x 6.9x -33.1%Micros Systems MCRS $3,983.4 $3,249.9 $1,054.3 56.2% 22.9% 10.1% 3.1x 13.5x 2.8x 11.6x 8.7%PROS Holdings PRO $436.9 $370.5 $96.6 72.6% 10.6% 36.0% 3.8x 36.3x 3.4x 19.0x 62.5%Rosetta Stone, Inc. RST $165.9 $54.6 $262.2 82.2% -5.7% -0.3% 0.2x n/a 0.2x n/a -58.5%Sapiens International SPNS $168.4 $155.7 $60.0 45.2% 12.5% 21.6% 2.6x 20.7x n/a n/a 32.0%Tyler Technologies, Inc. TYL $1,043.9 $1,096.6 $299.8 45.2% 17.8% 3.2% 3.7x 20.5x 3.3x 16.6x 69.3%

Median: $980.3 $1,012.5 $281.0 57.3% 15.7% 14.0% 3.3x 18.0x 3.0x 12.4x 15.7%









0%

2%

4%

6%

8%

10%

12%

14%Vertical - Other Software Stock Market Return: Jan 2012

Vertical - Other S&P NASDAQ SEG Internet Index

SEG Software Index Category: Video Games


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Activision Blizzard ATVI $14,119.7 $11,218.7 $4,776.0 60.0% 30.1% 4.4% 2.3x 7.8x 2.5x 6.6x 9.3%Electronic Arts Inc. EA $6,156.2 $5,186.2 $3,865.0 59.8% 0.8% 11.1% 1.3x 167.3x 1.2x 7.2x 19.1%Konami Corporation TSE: 9766 $3,653.0 $3,481.5 $3,433.9 32.9% 18.1% 1.8% 1.0x 5.6x 1.0x 5.1x 31.7%Majesco Entertainment Company COOL $100.4 $87.9 $125.3 38.5% 12.8% 65.6% 0.7x 5.5x 0.6x 3.4x 109.1%TakeTwo Interactive TTWO $1,351.9 $1,193.5 $860.0 38.1% -3.2% -29.5% 1.4x n/a 1.1x 14.2x 25.1%THQ Inc. THQI $45.8 $94.8 $770.8 56.9% -10.8% 4.4% 0.1x n/a 0.1x 2.4x -88.5%

Median: $2,502.4 $2,337.5 $2,146.9 47.7% 6.8% 4.4% 1.2x 6.7x 1.0x 5.8x 22.1%



Levered FCF Margin 10.4%Cash from Operations Growth (YoY) -7.6%Cash from Investing Growth (YoY) -133.3%Cash from Financing Growth (YoY) 7.3%Levered FCF Growth (YoY) 7.7%






-15%

-10%

-5%

0%

5%

10%

15%

Video Game Software Stock Market Return: Jan 2012

Video Games S&P NASDAQ SEG SW Index

SEG Software Index Category: Workforce and Service Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ClickSoftware Technologies Ltd. CKSW $328.4 $272.3 $87.1 63.6% 20.6% 22.6% 3.1x 15.2x 2.9x 11.8x 46.4%Callidus Software, Inc. CALD $219.7 $222.1 $83.8 41.1% -10.6% 18.2% 2.7x n/a 2.4x 22.6x 7.8%NICE Systems Ltd. NICE $2,298.5 $1,990.5 $766.4 61.4% 16.9% 15.7% 2.6x 15.4x 2.3x 8.9x 11.1%Saba Software SABA $296.1 $281.9 $121.3 62.9% -8.0% 7.7% 2.3x n/a 2.0x n/a 52.7%Verint VRNT $1,098.9 $1,875.1 $757.5 67.7% 17.4% 6.3% 2.5x 14.2x 2.2x 9.1x -17.9%

Median: $328.4 $281.9 $121.3 62.9% 16.9% 15.7% 2.6x 15.2x 2.3x 10.5x 11.1%



Levered FCF Margin 10.4%Cash from Operations Growth (YoY) -7.6%Cash from Investing Growth (YoY) -133.4%Cash from Financing Growth (YoY) -316.9%Levered FCF Growth (YoY) -5.9%






-2%

0%

2%

4%

6%

8%

10%

12%Workforce and Service Mgmt Software Stock Market Return: Jan 2012

Workforce & Service Management S&P NASDAQ SEG Internet Index


SEG SaaS Index


SEG SaaS Index


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA


Athenahealth ATHN $2,055.4 $1,936.9 $300.9 62.6% 17.1% 30.5% 6.4x 37.6x 4.9x 25.9x 35.5%Concur CNQR $2,834.6 $2,519.7 $369.6 71.6% 11.4% 21.0% 6.8x 59.8x 5.8x 25.0x 2.6%Constant Contact CTCT $742.9 $615.2 $214.4 71.3% 11.4% 23.1% 2.9x 25.2x 2.5x 14.0x -10.8%Convio CNVO $296.2 $246.1 $80.4 61.2% 9.0% 15.2% 3.1x 33.9x 2.8x 19.1x 75.2%Cornerstone OnDemand CSOD $884.6 $806.7 $61.8 69.2% -30.9% 51.9% 13.1x n/a 8.1x n/a n/aDealerTrack TRAK $1,133.8 $1,069.3 $324.0 46.6% 16.7% 37.9% 3.3x 19.8x 2.8x 13.0x 38.3%DemandTec DMAN $446.2 $386.7 $89.1 63.9% -8.8% 11.8% 4.3x n/a 3.9x 35.7x 9.4%Ellie Mae ELLI $122.2 $101.4 $49.4 71.4% 8.6% 25.5% 2.1x 24.0x 1.7x n/a n/aIntraLinks Holdings IL $370.3 $396.5 $212.1 74.2% 11.2% 23.7% 1.9x 16.7x 1.9x 5.9x -66.2%Kenexa KNXA $650.0 $608.2 $282.9 60.4% 11.8% 44.1% 2.1x 18.2x 1.9x 10.5x 15.8%LivePerson LPSN $639.1 $558.2 $126.5 73.6% 20.4% 20.8% 4.4x 21.7x 3.6x 14.6x 9.3%Medidata Solutions MDSO $517.9 $415.4 $184.6 71.0% 21.7% 17.9% 2.2x 10.4x 2.1x 8.7x -16.2%Netsuite N $2,842.9 $2,721.2 $236.3 70.0% -7.3% 22.4% 11.5x n/a 9.8x 112.6x 55.5%RealPage RP $1,847.1 $1,857.6 $240.9 58.3% 12.0% 39.8% 7.7x 64.4x 5.9x 26.4x -6.1%Responsys MKTG $555.6 $468.8 $128.4 53.6% 19.0% 54.1% 3.7x 19.2x 3.1x 19.5x n/aSalesforce.com CRM $15,884.8 $15,781.6 $2,091.5 78.7% 4.3% 34.6% 7.5x 173.6x 5.8x 32.2x -9.6%SciQuest SQI $322.6 $267.3 $50.2 75.9% 14.0% 22.0% 5.3x 38.0x 4.4x 19.5x 8.9%SoundBite Communications SDBT $45.9 $18.2 $39.8 58.8% -0.7% -0.3% 0.5x n/a 0.4x 12.2x -1.8%SPS Commerce SPSC $304.2 $272.7 $58.0 73.5% 6.5% 30.0% 4.7x 72.1x 4.1x 35.7x 58.7%SuccessFactors SFSF $3,375.1 $3,126.8 $291.8 67.6% -9.3% 55.2% 10.7x n/a 7.8x 154.3x 36.7%T l TLEO $1 494 3 $1 383 3 $308 9 68 0% 6 0% 30 2% 4 5 74 9 3 8 19 1 22 2%Taleo TLEO $1,494.3 $1,383.3 $308.9 68.0% 6.0% 30.2% 4.5x 74.9x 3.8x 19.1x 22.2%The Ultimate Software Group, Inc. ULTI $1,735.9 $1,689.9 $269.2 56.8% 10.4% 18.2% 6.3x 60.2x 5.4x 30.9x 37.2%Vocus VOCS $458.8 $353.2 $110.4 81.0% 1.3% 18.9% 3.2x 255.4x 2.8x 15.8x -11.6%Zix Corporation ZIXI $199.3 $177.3 $37.1 80.9% 29.3% 31.7% 4.8x 16.3x 4.3x 12.3x -32.9%

Median: $644.5 $583.2 $198.4 69.6% 10.8% 24.6% 4.4x 33.9x 3.8x 19.3x 9.3%


Balance Sheet Analysis (Median)Current Ratio 0.5xQuick Ratio 1.8xCash as Percent of Market Cap 13.0%Avg Days Outstanding: Accounts Receivable 56.0xAvg Days Outstanding: Accounts Payable 26.8xWorking Capital to TTM Operating Expense Ratio 0.4x

Cash Flow Statement Analysis (Median)Levered FCF Margin 10.8%Cash from Operations Growth (YoY) 61.2%Cash from Investing Growth (YoY) -72.8%Cash from Financing Growth (YoY) 15.7%Levered FCF Growth (YoY) -2.0%




-4%

-2%

0%

2%

4%

6%

8%

10%SEG SaaS Index Software Stock Market Return: Jan 2012

SEG SaaS S&P NASDAQ SEG SW Index


SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


SEG Internet Index $822.7 $754.0 $350.5 65.4% 15.7% 26.1% 2.3x 11.1x 1.8x 8.7x -21.8% Ad Tech & Lead Generation $458.3 $711.3 $297.3 56.2% 8.4% 23.8% 2.7x 16.4x 1.8x 6.3x -35.5% Infastructure $485.8 $373.8 $241.8 67.2% 15.7% 26.0% 2.0x 12.5x 1.8x 9.3x -8.0% Media $1,577.9 $1,246.6 $314.0 51.7% 13.4% 14.4% 2.0x 7.9x 1.7x 7.9x -31.1% Retail $421.03 $344.5 $354.2 37.4% 9.0% 19.3% 1.3x 11.1x 1.2x 7.5x -6.6% Search $2,269.47 $1,747.1 $550.1 63.0% 13.4% 27.5% 1.4x 10.4x 1.2x 7.2x -12.6% Services $831.31 $741.1 $132.4 73.0% 16.1% 34.1% 5.1x 21.3x 3.9x 14.8x -8.4% Travel $2,178.94 $2,006.9 $526.3 77.9% 19.0% 28.9% 4.4x 15.7x 3.4x 10.5x -32.2% Video Games $3,693.41 $2,948.3 $778.5 75.8% 42.5% 33.2% 3.4x 7.8x 2.0x 5.0x -5.6%


Current Ratio 2.3Quick Ratio 2.0Cash as Percent of Market Cap 17.5%Avg Days Outstanding: Accounts Receivable 32Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.5

Levered FCF Margin 8.0%Cash from Operations Growth (YoY) 12.4%Cash from Investing Growth (YoY) -46.6%Cash from Financing Growth (YoY) 2.5%Levered FCF Growth (YoY) -1.1%






0%

2%

4%

6%

8%

10%

12%SEG Internet Index Software Stock Market Return: Jan 2012

SEG Internet Index S&P NASDAQ SEG SW Index

SEG Internet Index Category: Ad Tech and Lead Generation


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


comScore Inc. SCOR $731.6 $711.3 $221.0 67.7% 4.6% 40.2% 3.2x 70.1x 2.7x 12.0x -7.6%DG FastChannel, Inc. DGIT $382.5 $794.1 $297.3 67.6% 42.9% 33.0% 2.7x 6.2x 1.8x 5.0x -49.3%Groupon GRPN $13,004.8 $12,110.1 $1,290.5 85.4% -28.3% n/a 9.4x n/a n/a n/a n/aInuvo, Inc. INUV $10.6 $12.6 $43.2 44.5% 0.4% -3.1% 0.3x 79.7x n/a n/a -64.7%LookSmart, Ltd. LOOK $24.2 $3.0 $32.3 43.5% 8.4% -35.9% 0.1x 1.1x 0.1x 0.9x -21.8%Marchex Inc. MCHX $168.5 $133.0 $135.7 43.3% 4.2% 45.8% 1.0x 23.2x 0.9x 6.3x -52.5%QuinStreet QNST $458.3 $416.8 $393.6 26.1% 17.8% 3.4% 1.1x 5.9x 1.0x 5.0x -57.3%SINA Corporation SINA $4,628.5 $3,893.0 $459.4 56.2% 15.5% 17.5% 8.5x 54.7x 7.1x 53.9x -17.6%ValueClick, Inc. VCLK $1,440.3 $1,486.6 $560.2 56.8% 28.0% 30.0% 2.7x 9.5x 2.2x 7.2x 24.5%

Median: $458.3 $711.3 $297.3 56.2% 8.4% 23.8% 2.7x 16.4x 1.8x 6.3x -35.5%

TTM Revenue Growth 23.8%TTM EBITDA Growth -23.8%TTM Earnings Growth -19.5%Gross Profit Margin 56.2%EBITDA Margin 8.4%Net Income Margin -1.7%SG&A Expenses as a % of Total Revenue 26.5%R&D Expenses as a % of Total Revenue 11.7%


Levered FCF Margin 15.5%Cash from Operations Growth (YoY) -14.5%Cash from Investing Growth (YoY) -196.0%Cash from Financing Growth (YoY) 37.5%Levered FCF Growth (YoY) 6.4%






0%

2%

4%

6%

8%

10%

12%Internet Ad Tech and Lead Generation Software Stock Market Return: Jan 2012

Internet Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


8x8, Inc. EGHT $308.7 $286.8 $79.8 67.2% 11.2% 17.6% 3.6x 32.0x 2.9x 19.2x 70.1%Akamai Technologies, Inc. AKAM $5,783.1 $5,095.5 $1,158.5 67.7% 40.0% 13.2% 4.4x 11.0x 4.1x 9.3x -33.3%BroadSoft, Inc. BSFT $753.1 $669.8 $133.3 83.1% 25.6% 68.4% 5.0x 19.7x 4.4x 16.1x 0.5%Cbeyond, Inc. CBEY $258.0 $249.5 $478.3 67.4% 13.1% 7.9% 0.5x 4.0x 0.5x 2.9x -42.0%ChinaCache International CCIH $168.6 $104.1 $89.6 31.3% 15.7% 63.1% 1.2x 7.4x 0.8x 4.4x -68.3%Digital River Inc. DRIV $597.7 $287.3 $398.1 83.7% 12.9% 9.6% 0.7x 5.6x 0.7x 3.3x -49.6%EarthLink Inc. ELNK $769.2 $1,164.8 $1,130.7 56.3% 25.6% 82.4% 1.0x 4.0x 0.9x 3.6x -15.5%Equinix, Inc. EQIX $5,687.3 $7,742.4 $1,520.8 45.3% 40.6% 36.1% 5.1x 12.5x 4.2x 9.4x 35.7%Interactive Intelligence, Inc. ININ $485.8 $417.0 $209.5 68.8% 13.6% 26.0% 2.0x 14.6x 1.8x 10.7x -21.1%Internap Network Services Corp. INAP $352.2 $373.8 $241.8 41.2% 15.3% -2.4% 1.5x 10.1x 1.4x 7.7x -8.0%Keynote Systems Inc. KEYN $338.0 $298.0 $111.3 53.7% 19.7% 32.5% 2.7x 13.6x 2.2x 11.1x 12.1%Limelight Networks, Inc. LLNW $352.7 $199.2 $197.4 54.8% 2.2% 36.3% 1.0x 45.8x 1.1x 8.9x -47.7%Rackspace Hosting RAX $5,690.0 $5,709.4 $956.5 69.4% 28.4% 30.1% 6.0x 21.0x 4.7x 13.7x 29.5%Tucows Inc. TCX $40.7 $37.7 $92.8 24.5% 6.7% 12.0% 0.4x 6.0x 0.4x 5.5x 2.7%VeriSign, Inc. VRSN $5,905.0 $5,248.9 $772.0 78.6% 51.9% 13.4% 6.8x 13.1x 6.0x 10.3x 10.1%

Median: $485.8 $373.8 $241.8 67.2% 15.7% 26.0% 2.0x 12.5x 1.8x 9.3x -8.0%



Levered FCF Margin 4.7%Cash from Operations Growth (YoY) 0.5%Cash from Investing Growth (YoY) -23.3%Cash from Financing Growth (YoY) -14.3%Levered FCF Growth (YoY) -20.8%






0%

2%

4%

6%

8%

10%

12%

Internet Infrastructure Software Stock Market Return: Jan 2012

Internet Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


AOL, Inc. AOL $1,577.9 $1,246.6 $2,202.1 28.1% 15.4% -8.9% 0.6x 3.7x 0.6x 4.0x -31.1%DemandMedia DMD $514.4 $435.3 $314.0 51.7% 19.1% 33.7% 1.4x 7.2x 1.2x 4.4x -68.9%eHealth, Inc. EHTH $324.5 $198.0 $159.2 80.4% 18.6% 10.5% 1.2x 6.7x 1.3x 8.6x 34.0%Google, Inc. GOOG $188,614.8 $151,499.8 $37,905.0 65.2% 37.2% 29.3% 4.0x 10.8x 3.3x 7.9x -3.4%Local.com Corp. LOCM $55.9 $53.7 $73.3 37.1% -7.7% -8.9% 0.7x n/a 0.5x 17.9x -37.7%Monster Worldwide, Inc. MWW $886.3 $824.8 $1,040.1 50.4% 13.4% 13.8% 0.8x 5.9x 0.8x 5.6x -56.8%Netflix NFLX $6,658.9 $6,261.1 $3,204.6 36.3% 13.4% 48.2% 2.0x 14.6x 1.7x 45.9x -43.9%Pandora P $2,128.4 $2,037.6 $240.7 40.1% -0.2% 111.2% 8.5x n/a 5.2x n/a n/aSohu.com Inc. SOHU $2,269.5 $1,747.1 $852.1 72.2% 40.2% 39.1% 2.1x 5.1x 1.7x 5.0x -23.2%TheStreet.com, Inc. TST $61.1 -$1.1 $58.2 54.2% -6.8% -1.4% n/a 0.3x n/a n/a -37.4%Tudou Holdings Limited TUDO $396.7 $241.5 $69.5 25.6% -69.9% 112.1% 3.5x n/a 1.9x n/a n/aWebMD Health Corp. WBMD $1,580.0 $1,276.3 $576.6 65.2% 25.8% 14.4% 2.2x 8.6x 2.4x 9.1x -46.4%XO Group XOXO $225.4 $142.0 $120.8 80.0% 11.5% 9.4% 1.2x 10.2x 1.1x 6.9x -25.6%Yahoo! Inc. YHOO $19,187.4 $17,317.2 $4,984.2 69.9% 29.6% -21.2% 3.5x 11.8x 3.9x 12.9x -4.0%Youku YOKU $2,440.3 $1,849.3 $116.1 34.9% 3.5% 156.8% 15.9x 455.0x 8.4x n/a -27.8%

Median: $1,577.9 $1,246.6 $314.0 51.7% 13.4% 14.4% 2.0x 7.9x 1.7x 7.9x -31.1%



Levered FCF Margin 7.7%Cash from Operations Growth (YoY) 29.7%Cash from Investing Growth (YoY) -78.3%Cash from Financing Growth (YoY) 3.0%Levered FCF Growth (YoY) -2.3%






0%

2%

4%

6%

8%

10%

12%

14%

16%Internet Media Software Stock Market Return: Jan 2012

Internet Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Retail


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


1-800-FLOWERS.COM, Inc. FLWS $187.3 $194.5 $716.2 40.1% 4.8% 8.8% 0.3x 5.7x 0.3x 4.5x 5.1%Amazon.com, Inc. AMZN $88,422.4 $78,846.4 $48,077.0 22.4% 3.6% 40.6% 1.6x 46.1x 1.2x 28.4x 14.6%Bitauto Holdings Limited BITA $181.9 $94.9 $76.0 67.5% 16.4% n/a 1.2x 7.6x 0.8x 4.3x -59.3%Bluefly, Inc. BFLY $59.4 $55.3 $95.5 33.3% -2.2% 13.2% 0.6x n/a n/a n/a -35.6%BlueNile NILE $546.3 $506.9 $350.5 21.2% 6.2% 9.2% 1.4x 23.4x 1.3x 16.3x -29.1%DangDang DANG $582.6 $339.6 $485.4 17.1% -3.2% 53.5% 0.7x n/a 0.4x n/a -74.0%eBay Inc. EBAY $40,660.1 $36,820.3 $11,651.7 70.3% 28.4% 27.3% 3.2x 11.1x 2.7x 8.3x 4.1%IAC/InterActiveCorp IACI $3,533.2 $2,877.5 $2,059.4 63.0% 13.4% 25.8% 1.4x 10.4x 1.2x 6.6x 52.2%Liquidity Services, Inc. LQDT $1,054.5 $925.5 $358.0 45.7% 16.8% 19.3% 2.6x 15.4x 2.1x 11.4x 141.8%Mecox Lane Limited MCOX $85.7 $16.7 $224.1 34.8% -7.8% 0.0% 0.1x n/a 0.1x n/a -73.9%Mercadolibre, Inc. MELI $3,858.0 $3,735.1 $274.8 76.3% 35.8% 35.1% 13.6x 38.0x 10.1x 27.1x 28.9%Overstock.com, Inc. OSTK $157.6 $116.0 $1,089.1 17.2% 1.1% 2.4% 0.1x 10.1x 0.1x 6.4x -54.6%PetMed Express, Inc. PETS $245.2 $192.9 $233.2 33.7% 11.8% 1.0% 0.8x 7.0x 0.8x 7.5x -17.3%ZAGG, Inc. ZAGG $295.8 $349.4 $140.8 45.4% 18.8% 141.6% 2.5x 13.2x 1.6x 7.2x 10.3%

Median: $421.0 $344.5 $354.2 37.4% 9.0% 19.3% 1.3x 11.1x 1.2x 7.5x -6.6%









0%

2%

4%

6%

8%

10%

12%

14%

Internet Retail Software Stock Market Return: Jan 2012

Internet Retail S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Search


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Baidu.com, Inc. BIDU $44,508.0 $43,250.5 $1,954.8 80.5% 56.7% 85.5% 22.1x 39.0x 13.4x 22.9x 17.4%Google Inc. GOOG $188,614.8 $151,499.8 $37,905.0 65.2% 37.2% 29.3% 4.0x 10.8x 3.3x 7.9x -3.4%IAC/InterActiveCorp IACI $3,533.2 $2,877.5 $2,059.4 63.0% 13.4% 25.8% 1.4x 10.4x 1.2x 6.6x 52.2%InfoSpace, Inc. INSP $485.4 $206.1 $211.9 34.8% 11.1% -9.9% 1.0x 8.8x 0.8x 4.1x 50.5%Local.com Corp. LOCM $55.9 $53.7 $73.3 37.1% -7.7% -8.9% 0.7x n/a 0.5x 17.9x -37.7%LookSmart, Ltd. LOOK $24.2 $3.0 $32.3 43.5% 8.4% -35.9% 0.1x 1.1x 0.1x 0.9x -21.8%ReachLocal, Inc. RLOC $231.6 $137.4 $356.0 48.3% -1.2% 31.4% 0.4x n/a 0.3x 7.2x -63.9%Sohu.com Inc. SOHU $2,269.5 $1,747.1 $852.1 72.2% 40.2% 39.1% 2.1x 5.1x 1.7x 5.0x -23.2%Yandex YNDX $6,569.8 $6,137.0 $550.1 77.3% 44.4% n/a 11.2x 25.1x 7.4x 16.3x n/a

Median: $2,269.5 $1,747.1 $550.1 63.0% 13.4% 27.5% 1.4x 10.4x 1.2x 7.2x -12.6%









0%

2%

4%

6%

8%

10%

12%Internet Search Software Stock Market Return: Jan 2012

Internet Search S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Active Networks ACTV $839.9 $704.4 $323.0 55.9% 7.3% 18.6% 2.2x 29.8x 1.8x 14.8x n/aAncestory.com ACOM $1,304.4 $1,257.5 $378.2 83.4% 33.5% 35.9% 3.3x 9.9x 2.8x 8.0x -16.9%Archipelago Learning, Inc. ARCL $273.6 $305.7 $70.9 91.0% 29.6% 32.3% 4.3x 14.6x 3.9x 14.6x 0.1%Angie's List ANGI $723.9 $728.1 $78.7 70.8% -56.5% n/a 9.3x n/a 5.8x n/a n/aBankrate RATE $2,338.8 $2,467.9 $424.2 66.1% 30.6% 92.3% 5.8x 19.0x 5.0x 15.8x n/aeHealth, Inc. EHTH $324.5 $198.0 $159.2 80.4% 18.6% 10.5% 1.2x 6.7x 1.3x 8.6x 34.0%FriendFinder FFN $40.3 $485.2 $338.1 68.8% 30.5% -0.8% 1.4x 4.7x 1.4x 5.3x n/aJiayuan.com International DATE $227.3 $134.0 $32.5 65.7% 21.5% n/a 4.1x 19.1x 1.9x 9.5x n/aJive Software, Inc. JIVE $877.1 $837.4 $77.3 55.6% -49.3% 67.0% 10.8x n/a n/a n/a n/aLinkedIn LNKD $7,038.6 $6,650.9 $522.2 84.4% 11.5% 114.8% 12.7x 111.2x 9.1x 55.4x n/aLoopNet, Inc. LOOP $660.9 $544.3 $84.6 84.3% 21.0% 10.8% 6.4x 30.6x 5.9x 15.8x 56.4%OpenTable OPEN $1,144.1 $1,064.2 $139.5 71.8% 31.8% 40.9% 7.6x 24.0x 6.6x 16.7x -38.7%Qihoo QIHU $2,090.1 $1,772.1 $125.3 88.8% 5.6% 161.9% 14.1x 253.7x 7.1x 22.3x n/aRenren RENN $2,175.7 $981.1 $83.1 79.4% 13.4% n/a 11.8x 88.2x 5.9x n/a n/aStamps.com STMP $465.4 $425.8 $101.6 74.2% 17.8% 18.8% 4.2x 23.5x 3.9x 19.0x 143.8%Shutterfly SFLY $822.7 $754.0 $473.3 53.6% 10.5% 53.8% 1.6x 15.1x 1.4x 8.9x -28.7%VistaPrint VPRT $1,323.6 $1,402.6 $924.7 65.0% 14.4% 25.8% 1.5x 10.6x 1.2x 10.2x -29.1%Zillow Z $815.3 $719.4 $55.7 84.0% 7.8% n/a 12.9x 165.8x 8.0x 44.3x n/a

Median: $831.3 $741.1 $132.4 73.0% 16.1% 34.1% 5.1x 21.3x 3.9x 14.8x -8.4%









-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Internet Services Software Stock Market Return: Jan 2012

Internet Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Ctrip CTRP $3,596.3 $2,981.5 $526.3 77.7% 36.1% 26.3% 5.7x 15.7x 4.6x 12.1x -39.1%Expedia EXPE $4,736.2 $4,515.9 $3,449.0 77.9% 19.0% 3.0% 1.3x 6.9x 1.2x 6.3x -35.7%HomeAway AWAY $2,178.9 $2,006.9 $217.3 84.8% 16.6% n/a 9.2x 55.6x n/a n/a n/aMakeMyTrip MMYT $867.2 $801.6 $181.0 37.5% 5.0% 58.1% 4.4x 88.1x 7.8x 52.5x -18.2%Orbitz OWW $379.7 $711.9 $772.0 79.6% 13.8% 3.0% 0.9x 6.7x 0.9x 5.3x -28.7%Pricelilne PCLN $26,359.6 $24,606.6 $4,096.2 69.2% 32.7% 41.5% 6.0x 18.4x 4.7x 13.3x 23.6%Travelzoo TZOO $412.8 $373.8 $148.3 91.0% 25.4% 31.5% 2.5x 9.9x 2.3x 8.9x -45.0%

Median: $2,178.9 $2,006.9 $526.3 77.9% 19.0% 28.9% 4.4x 15.7x 3.4x 10.5x -32.2%



Levered FCF Margin 13.5%Cash from Operations Growth (YoY) -3.1%Cash from Investing Growth (YoY) 1.0%Cash from Financing Growth (YoY) -94.1%Levered FCF Growth (YoY) 2.3%






0%

2%

4%

6%

8%

10%

12%

14%Internet Travel Software Stock Market Return: Jan 2012

Internet Travel S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Video Games


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ChangeYou CYOU $1,347.0 $921.8 $484.6 86.1% 60.7% 48.1% 1.9x 3.1x 1.7x 3.2x -25.1%Giant Interactive GA $1,002.8 $703.0 $260.9 87.4% 64.5% 34.2% 2.7x 4.2x 2.2x 3.6x -38.9%Netease NTES $6,242.2 $4,370.5 $1,069.3 66.9% 50.8% 33.2% 4.1x 8.0x 3.5x 6.5x 18.5%NCSoft KOSE:A036 $5,180.6 $4,668.3 $532.5 78.7% 28.3% -8.6% 8.8x 31.0x n/a n/a 52.1%Perfect World PWRD $493.1 $271.5 $451.4 82.4% 36.8% 19.7% 0.6x 1.6x 0.6x 1.8x -53.8%Shanda SNDA $2,206.3 $1,526.0 $1,040.9 57.8% 19.4% 19.7% 1.5x 7.6x 1.2x 8.8x 2.2%Tencent Holdings SEHK:700 $44,649.0 $42,706.7 $4,088.6 65.4% 48.1% 46.5% 10.4x 21.7x n/a n/a -5.6%Zynga, Inc. ZNGA $7,336.1 $6,410.5 $1,024.6 72.9% 18.6% n/a 6.3x 33.7x 4.9x 18.6x n/a

Median: $3,693.4 $2,948.3 $778.5 75.8% 42.5% 33.2% 3.4x 7.8x 2.0x 5.0x -5.6%









-4%

-2%

0%

2%

4%

6%

8%

10%

12%Internet Video Games Software Stock Market Return: Jan 2012

Internet Video Games S&P NASDAQ SEG Internet Index

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SEG Feb 2012 Monthly Flash Report February 2012