Upload
others
View
8
Download
0
Embed Size (px)
Citation preview
Software Equity Group, L.L.C.
p: (858) 509-2800f: (858) 509-2818
March 2010
Software Equity Group Flash Report
Selected M&A Transactionsand
Financial and Stock Market PerformancePublic Software Companies By Product Category
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
San Diego, CA 9213012220 El Camino Real, #320
Public SaaS CompaniesPublic Internet Companies By Product Category
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
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 program, please contact Kris Beible at [email protected] or 858-509-2800.
ADDITIONAL RESEARCH
For our complimentary current and archived Quarterly Reports from 1Q03, please visit: http://www.softwareequity.com/research_quarterly_reports.aspx
For our complimentary current and archived Monthly Flash Reports from July 2008, please visit: http://www.softwareequity.com/research_flash_reports.aspx
For our Annual Reports from 2003 through 2008, please visit: http://www.softwareequity.com/research_annual_reports.aspx
CAD Computer-aided DesignCAM Computer-aided ManufacturingCRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationEV Enterprise ValueFCF 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
List of Commonly Used Acronyms
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
February 2010
Selected Software Industry M&A Transactions
Selected February 2010 Software Industry M&A Transactions
Date Announced Target EV/ Revenue
02/26/2010 Zaptronix Limited (JSE:ZPT) i to i Technologies Pty Ltd. - $2.3 -02/26/2010 United Stationers Supply Company MBS Dev Inc. - $18.0 -02/24/2010 hi5 Networks, Inc. Big Six Games, Inc. - - -02/23/2010 Alibris, Inc. Monsoon, Inc. $400.0 - -02/23/2010 Unit 4 Agresso NV (ENXTAM:U4AGR) IBS Consist B.V. $20.3 - -02/22/2010 Raytheon Co. (NYSE:RTN) Compucat Research Pty. Ltd. - - -02/22/2010 New Mountain Capital, LLC RedPrairie Holding, Inc. $265.5 - -02/22/2010 Iron Mountain Inc. (NYSE:IRM) Mimosa Systems, Inc. - $112.0 -02/22/2010 High Amuse Limited Raxco Assets Corp. - $14.6 -02/22/2010 VMware, Inc. (NYSE:VMW) RTO Software, Inc. - - -02/22/2010 Open Text Corp. (NASDAQ:OTEX) Nstein Technologies Inc. (TSXV:EIN) $23.3 $27.4 1.2x02/21/2010 Left Behind Games Inc. (OTCBB:LFBG) Digital Praise Inc. - $3.0 -02/19/2010 Provident Capital Ventures Global Supply Chain Solutions, Inc. - - -02/18/2010 TriTech Software Systems, Inc. Ortivus, Inc. $7.1 $11.5 1.6x02/18/2010 Gary Jonas Computing Ltd. Centaman Holdings Pty Ltd. - - -02/17/2010 Google Inc. (NASDAQ:GOOG) Nextmail Corp. - - -02/17/2010 Nuance Communications, Inc. (NASDAQ:NUAN) Language and Computing NV - $13.4 -02/16/2010 Mentor Graphics Corp. (NASDAQ:MENT) Freescale Semiconductor Inc., Virtual Garage - - -02/16/2010 RealPage, Inc. Domin-8 Enterprise Solutions, LLC - - -02/15/2010 Tivoli Systems, Inc. Intelliden Corporation - - -02/13/2010 Playtech Limited (AIM:PTEC) Virtue Fusion Ltd. $19.3 $56.3 2.9x02/12/2010 MAXIMUS, Inc. (NYSE:MMS) Deltaware Systems, Inc. - - -02/12/2010 Nuance Communications, Inc. (NASDAQ:NUAN) MacSpeech, Inc. - $12.2 -02/12/2010 Facebook, Inc. Octazen Solutions - - -02/11/2010 Advanced Computer Software plc (AIM:ASW) COA Solutions Ltd. $93.6 $156.5 1.7x02/11/2010 Dell Inc. (NASDAQ:DELL) KACE Networks, Inc. - - -02/11/2010 Google Inc. (NASDAQ:GOOG) The Mechanical Zoo, Inc. - - -02/10/2010 Oracle Corp. (NASDAQ:ORCL) Convergin, Inc. $15.0 - -02/10/2010 Quality Systems Inc. (NASDAQ:QSII) Opus Healthcare Solutions, Inc. - $24.8 -02/09/2010 Bentley Systems, Incorporated Exor Corporation Limited - - -02/09/2010 Autonomy Corp. plc (LSE:AU.) MicroLink, LLC - $55.0 -02/09/2010 Thomson Reuters Corporation (TSX:TRI) Aegis Software, Inc. - - -02/09/2010 Bentley Systems, Incorporated Enterprise Informatics Inc. (OTCPK:EINF) - - -02/08/2010 Synopsys Inc. (NASDAQ:SNPS) CoWare, Inc. - - -02/08/2010 Oracle Corp. (NASDAQ:ORCL) AmberPoint, Inc. - - -02/08/2010 Parametric Technology Corporation (NASDAQ:PMTC) Planet Metrics Inc. - - -02/08/2010 Dell Inc. (NASDAQ:DELL) Exanet Ltd. - $12.0 -02/05/2010 Intel Corporation (NASDAQ:INTC) Virtutech, Inc. - - -02/05/2010 SunGard Data Systems Inc. Inmatrix Technology Pty. Ltd. - - -02/04/2010 Sybase, Inc. (NYSE:SY) Aleri, Inc. - - -02/04/2010 SuccessFactors, Inc. (NASDAQ:SFSF) Inform Business Impact - $40.5 -02/04/2010 Verint Systems Inc. (OTCPK:VRNT) Iontas Ltd. - $14.8 -02/03/2010 International Business Machines Corp. (NYSE:IBM) Initiate Systems, Inc. - - -02/03/2010 QUALCOMM Inc. (NASDAQ:QCOM) Mango Technologies Pvt. Ltd. - - -02/03/2010 First Derivatives plc (AIM:FDP) Cognotec Holdings Ltd. - $4.7 -02/01/2010 Unica Corp. (NASDAQ:UNCA) Microchannel Technologies Limited - $1.8 -02/01/2010 NorthgateArinso UK Limited Neller Pty Ltd. $16.0 - -02/01/2010 Synopsys Inc. (NASDAQ:SNPS) VaST Systems Technology Corporation - - -
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Implied Enterprise Value ($mm)
Target TTM Revenue ($mm)Acquirer
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Category Performance
SEG Software Index
SEG Software Index: All Categories
Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue
EV/ EBITDA
Forward EV/ Revenue
Forward EV/
EBITDA
YoY Stock Market Return
SEG Software Index $516.49 $451.21 $217.66 68.8% 15.3% -1.7% 2.1x 13.0x 2.2x 11.5x 68.0% Billing & Service Management $936.53 $777.33 $375.03 49.5% 18.7% -2.3% 1.7x 8.0x 1.7x 7.2x 86.8% Business Intelligence $649.61 $514.46 $191.67 77.6% 17.1% -2.0% 2.3x 13.6x 2.3x 11.7x 97.6% Content/Document Management $59.77 $71.42 $83.05 71.5% 23.0% -11.6% 2.1x 8.2x 4.7x 13.7x 63.7% CRM, Marketing & Sales Software $110.52 $68.71 $81.20 54.3% -2.1% -17.5% 0.8x 16.6x 1.1x 13.0x 57.1% Database & File Management $1,528.63 $1,211.91 $500.69 84.1% 22.8% -1.3% 1.7x 8.2x 2.3x 7.8x 49.1% Dev Tools, OS & Application Testing Software $626.69 $501.72 $280.20 71.2% 16.9% -0.5% 1.5x 11.4x 2.8x 13.6x 66.3% eCommerce Enablement Software $605.26 $526.21 $179.38 66.0% 14.5% 7.2% 3.3x 19.1x 3.7x 14.0x 39.0% Education & eLearning $141.20 $118.80 $104.99 70.6% 10.8% 11.7% 1.5x 13.1x 1.6x 11.3x 123.0% Electronic Design Automation $817.94 $927.20 $808.23 80.2% 0.1% -2.8% 1.4x 12.2x 1.6x 12.6x 87.8% Engineering, PLM & CAD/CAM Software $1,079.93 $1,326.43 $516.89 81.2% 12.9% -6.3% 2.0x 15.1x 2.6x 12.7x 112.2% Enterprise Application Integration $1,527.40 $1,277.82 $621.39 70.9% 21.1% -3.6% 2.1x 14.3x 2.5x 8.3x 63.3% Enterprise Resource Planning $526.15 $627.42 $334.19 56.5% 18.7% -8.7% 1.6x 10.5x 1.7x 10.0x 57.7% Entertainment $1,760.12 $1,075.74 $286.11 61.2% 13.0% -11.6% 0.9x 7.3x 0.7x 7.6x 30.9% Financial Services Software $828.00 $946.03 $249.29 59.1% 21.3% 1.7% 2.5x 12.8x 2.6x 10.4x 72.5% Healthcare $437.07 $376.74 $213.26 56.7% 19.6% 6.8% 2.3x 15.3x 2.2x 13.4x 61.8% Messaging, Conferencing & Communications $213.06 $109.85 $117.72 64.8% 12.4% 4.2% 1.6x 12.5x 1.9x 12.5x 96.9% Multimedia, Graphics, Digital Media $562.23 $393.22 $422.08 68.7% 11.8% -11.3% 2.8x 18.9x 2.7x 10.5x 83.3% Networking & Connectivity $1,450.70 $912.21 $466.61 78.4% 22.1% -0.5% 2.5x 16.6x 2.6x 15.0x 88.0% Security $896.47 $686.21 $178.15 78.1% 16.4% 8.3% 2.9x 13.4x 2.8x 8.2x 60.3% Storage & Systems Management Software $8,449.16 $7,030.75 $1,961.57 80.3% 19.8% 0.2% 2.4x 10.8x 2.5x 13.4x 54.3% Supply Chain Management & Logistics $412.57 $277.21 $214.46 57.0% 11.1% -9.9% 1.6x 13.2x 1.9x 12.0x 70.6% Wireless $292.25 $246.39 $192.17 46.5% 11.9% -3.7% 1.7x 13.1x 1.7x 9.3x 49.9%
TTM Revenue Growth -1.7%TTM EBITDA Growth 14.0%TTM Earnings Growth 13.8%Gross Profit Margin 68.8%EBITDA Margin 15.3%Net Income Margin 6.6%SG&A Expenses as a % of Total Revenue 38.1%R&D Expenses as a % of Total Revenue 15.0%
Current Ratio 2.0Quick Ratio 1.7Cash as Percent of Market Cap 20.3%Avg Days Outstanding: Accounts Receivable 72Avg Days Outstanding: Accounts Payable 41Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 9.4%Cash from Operations Growth (YoY) 5.5%Cash from Investing Growth (YoY) -16.6%Cash from Financing Growth (YoY) 34.2%Levered FCF Growth (YoY) 16.4%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved March 2010 Monthly Flash Report
Category Name
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
SEG SW Index Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
DOW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Billing and Service Management
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Amdocs Limited DOX $5,981.20 $4,689.05 $2,833.58 36.0% 20.6% -10.7% 1.7x 8.0x 1.7x 7.2x 73.6%AsiaInfo Holdings, Inc. ASIA $1,154.72 $877.27 $249.34 54.1% 16.8% 42.0% 3.5x 20.9x 4.2x 23.5x 100.0%CSG Systems International, Inc. CSGS $718.33 $677.40 $500.72 44.9% 21.2% 6.1% 1.4x 6.4x 1.4x 6.2x 49.0%MIND C.T.I. Ltd. MNDO $25.73 -$5.74 $17.24 66.1% 14.0% -15.5% n/a n/a n/a n/a 116.4%
Median: $936.53 $777.33 $375.03 49.5% 18.7% -2.3% 1.7x 8.0x 1.7x 7.2x 86.8%
TTM Revenue Growth -2.3%TTM EBITDA Growth -7.5%TTM Earnings Growth 43.0%Gross Profit Margin 49.5%EBITDA Margin 18.7%Net Income Margin 13.2%SG&A Expenses as a % of Total Revenue 17.7%R&D Expenses as a % of Total Revenue 14.9%
Current Ratio 2.9Quick Ratio 2.7Cash as Percent of Market Cap 25.9%Avg Days Outstanding: Accounts Receivable 86Avg Days Outstanding: Accounts Payable 63Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 9.1%Cash from Operations Growth (YoY) 33.5%Cash from Investing Growth (YoY) 101.5%Cash from Financing Growth (YoY) -19.6%Levered FCF Growth (YoY) -30.1%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Billing & Service Management Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Billing & Service Management SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Business Intelligence
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Actuate Corporation ACTU $243.32 $197.79 $119.33 84.3% 17.3% -8.9% 1.7x 9.6x 1.8x 7.8x 49.7%Datawatch Corporation DWCH $13.57 $7.69 $18.65 71.5% 9.7% -15.9% 0.4x 4.3x n/a n/a 97.4%Informatica Corporation INFA $2,282.76 $2,019.28 $500.69 84.1% 22.8% 9.9% 4.0x 17.7x 4.3x 16.5x 97.8%MicroStrategy Incorporated MSTR $1,055.90 $831.13 $377.79 82.4% 25.7% 4.8% 2.2x 8.6x 2.2x 8.3x 142.6%Pegasystems Inc. PEGA $1,325.48 $1,122.83 $264.01 65.6% 16.9% 24.7% 4.3x 25.2x 4.3x 24.1x 151.2%PROS Holdings PRO $224.25 $161.80 $68.78 72.9% 12.6% -9.0% 2.4x 18.7x 2.3x 11.7x 88.9%
Median: $649.61 $514.46 $191.67 77.6% 17.1% -2.0% 2.3x 13.6x 2.3x 11.7x 97.6%
TTM Revenue Growth -2.0%TTM EBITDA Growth 25.9%TTM Earnings Growth 2.2%Gross Profit Margin 77.6%EBITDA Margin 17.1%Net Income Margin 11.2%SG&A Expenses as a % of Total Revenue 47.6%R&D Expenses as a % of Total Revenue 15.2%
Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 24.6%Avg Days Outstanding: Accounts Receivable 67Avg Days Outstanding: Accounts Payable 38Working Capital to TTM Operating Expense Ratio 0.7
Levered FCF Margin 10.6%Cash from Operations Growth (YoY) -20.7%Cash from Investing Growth (YoY) -3.0%Cash from Financing Growth (YoY) 102.9%Levered FCF Growth (YoY) -5.0%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Business Intelligence Software Stock Market Return: Jan-Feb 2010
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Business Intelligence SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Content & Document Management
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Adobe Systems Incorporated ADBE $18,160.76 $17,256.29 $2,945.85 89.9% 34.4% -17.7% 5.9x 17.0x 5.9x 14.2x 107.5%Datawatch Corporation DWCH $13.57 $7.69 $18.65 71.5% 9.7% -15.9% 0.4x 4.3x n/a n/a 97.4%EasyLink Services International ESIC $59.17 $71.42 $83.05 70.0% 23.0% -11.6% 0.9x 3.7x n/a n/a -8.9%Ninetowns Internet Tech Grp Ltd. NINE $59.77 -$33.92 $14.52 68.6% -19.2% -8.8% n/a n/a n/a n/a 63.7%Open Text Corporation OTEX $2,746.36 $2,792.43 $854.60 73.9% 26.9% 11.1% 3.3x 12.1x 3.5x 13.3x 53.9%
Median: $59.77 $71.42 $83.05 71.5% 23.0% -11.6% 2.1x 8.2x 4.7x 13.7x 63.7%
TTM Revenue Growth -11.6%TTM EBITDA Growth 18.1%TTM Earnings Growth -52.2%Gross Profit Margin 71.5%EBITDA Margin 23.0%Net Income Margin -6.6%SG&A Expenses as a % of Total Revenue 48.3%R&D Expenses as a % of Total Revenue 14.4%
Current Ratio 1.4Quick Ratio 1.4Cash as Percent of Market Cap 25.2%Avg Days Outstanding: Accounts Receivable 58Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin 22.4%Cash from Operations Growth (YoY) -9.7%Cash from Investing Growth (YoY) -47.3%Cash from Financing Growth (YoY) 29.0%Levered FCF Growth (YoY) 9.0%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Content & Document Management Software Stock Market Return: Jan-Feb 2010
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
Content & Document Management SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: CRM, Marketing, and Sales
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Astea International Inc. ATEA $11.37 $8.41 $20.42 38.6% -4.8% -17.5% 0.4x n/a n/a n/a 26.0%Blackbaud, Inc. BLKB $1,037.15 $1,015.67 $309.34 60.9% 19.8% 2.3% 3.3x 16.6x 3.4x 13.0x 127.3%Callidus Software, Inc. CALD $102.26 $68.71 $81.20 39.4% -12.0% -24.2% 0.8x n/a 0.9x n/a 44.2%CDC Software Corporation CDCS $287.06 $250.16 $203.90 54.3% 25.6% -15.3% 1.2x 4.8x 1.3x 5.2x n/aChordiant Software, Inc. CHRD $110.52 $58.19 $76.31 71.8% -2.1% -28.8% 0.8x n/a 0.7x 23.4x 70.1%Rainmaker Systems Inc. RMKR $22.00 $9.71 $47.79 44.8% -5.1% -27.9% 0.2x n/a 0.2x n/a 40.8%Unica Corporation UNCA $184.28 $134.52 $99.65 74.0% 3.0% -16.1% 1.3x 45.1x 1.4x n/a 87.6%
Median: $110.52 $68.71 $81.20 54.3% -2.1% -17.5% 0.8x 16.6x 1.1x 13.0x 57.1%
TTM Revenue Growth -17.5%TTM EBITDA Growth 25.3%TTM Earnings Growth -4.8%Gross Profit Margin 54.3%EBITDA Margin -2.1%Net Income Margin -11.9%SG&A Expenses as a % of Total Revenue 31.1%R&D Expenses as a % of Total Revenue 17.1%
Current Ratio 1.5Quick Ratio 1.4Cash as Percent of Market Cap 27.0%Avg Days Outstanding: Accounts Receivable 80Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin -0.4%Cash from Operations Growth (YoY) 40.2%Cash from Investing Growth (YoY) 30.3%Cash from Financing Growth (YoY) -111.7%Levered FCF Growth (YoY) 111.6%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) CRM, Marketing, & Sales Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
CRM, Marketing, & Sales SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Database and File Management
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
BMC Software, Inc. BMC $6,727.76 $5,894.46 $1,899.20 78.7% 33.5% 2.1% 3.1x 9.3x 3.1x 7.8x 24.3%Double-Take Software DBTK $195.81 $99.59 $83.24 89.3% 17.0% -13.6% 1.2x 7.0x 1.1x 5.3x 28.2%Guidance Software, Inc. GUID $125.88 $89.47 $74.89 72.5% -12.9% -18.1% 1.2x n/a 1.2x n/a 63.5%Informatica Corporation INFA $2,282.76 $2,019.28 $500.69 84.1% 22.8% 9.9% 4.0x 17.7x 4.3x 16.5x 97.8%Oracle Corporation ORCL $123,526.57 $117,878.57 $23,225.00 81.1% 47.5% -1.3% 5.1x 10.7x 5.1x 10.4x 58.6%Pervasive Software Inc. PVSW $89.97 $48.26 $47.95 88.6% 16.8% 6.5% 1.0x 6.0x 1.1x 5.6x 42.6%Quest Software, Inc. QSFT $1,528.63 $1,211.91 $695.24 90.5% 21.6% -5.5% 1.7x 8.1x 1.8x 6.4x 49.1%Sybase, Inc. SY $3,656.36 $3,216.86 $1,170.57 70.9% 33.3% 3.4% 2.7x 8.3x 2.8x 8.3x 63.3%Versant Corporation VSNT $51.80 $24.70 $16.99 89.1% 24.9% -31.0% 1.5x 5.8x n/a n/a 1.0%
Median: $1,528.63 $1,211.91 $500.69 84.1% 22.8% -1.3% 1.7x 8.2x 2.3x 7.8x 49.1%
TTM Revenue Growth -1.3%TTM EBITDA Growth 11.8%TTM Earnings Growth 3.4%Gross Profit Margin 84.1%EBITDA Margin 22.8%Net Income Margin 14.0%SG&A Expenses as a % of Total Revenue 46.8%R&D Expenses as a % of Total Revenue 18.4%
Current Ratio 2.4Quick Ratio 2.2Cash as Percent of Market Cap 29.1%Avg Days Outstanding: Accounts Receivable 75Avg Days Outstanding: Accounts Payable 38Working Capital to TTM Operating Expense Ratio 0.9
Levered FCF Margin 15.3%Cash from Operations Growth (YoY) 4.0%Cash from Investing Growth (YoY) 32.4%Cash from Financing Growth (YoY) 4.9%Levered FCF Growth (YoY) 4.1%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Database & File Management Software Stock Market Return: Jan-Feb 2010
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
Database & File Management SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Development Tools, OS, and App Testing
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
BSQUARE Corporation BSQR $23.31 $12.84 $66.26 25.2% 1.5% 3.1% 0.2x 13.1x n/a n/a 43.8%Google Inc. GOOG $167,511.49 $143,026.72 $23,650.56 62.6% 41.6% 8.5% 6.0x 14.5x 6.3x 13.6x 55.9%Magic Software Enterprises Ltd. MGIC $57.41 $15.59 $55.35 52.5% 14.2% -10.7% 0.3x 2.0x n/a n/a 57.9%Microsoft Corporation MSFT $251,449.12 $224,005.12 $58,689.00 79.8% 41.6% -5.3% 3.8x 9.2x 3.7x 9.5x 77.5%Phoenix Technologies Ltd. PTEC $97.03 $70.18 $65.92 85.9% -25.8% -10.6% 1.1x n/a 1.1x n/a 18.4%Progress Software Corporation PRGS $1,156.36 $933.26 $494.14 85.1% 19.7% -4.2% 1.9x 9.6x 2.0x n/a 75.8%Red Hat, Inc. RHT $5,293.32 $4,555.42 $718.59 84.7% 20.3% 14.5% 6.3x 31.2x 7.2x 27.2x 104.9%SourceForge, Inc. LNUX $87.69 $48.34 $65.58 31.2% -9.6% 12.1% 0.7x n/a 0.8x n/a 74.7%
Median: $626.69 $501.72 $280.20 71.2% 16.9% -0.5% 1.5x 11.4x 2.8x 13.6x 66.3%
TTM Revenue Growth -0.5%TTM EBITDA Growth -5.1%TTM Earnings Growth -17.5%Gross Profit Margin 71.2%EBITDA Margin 16.9%Net Income Margin 8.9%SG&A Expenses as a % of Total Revenue 37.0%R&D Expenses as a % of Total Revenue 13.5%
Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 24.1%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 43Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 9.7%Cash from Operations Growth (YoY) 2.5%Cash from Investing Growth (YoY) -114.7%Cash from Financing Growth (YoY) 70.1%Levered FCF Growth (YoY) 14.1%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Development Tools, OS, and App Testing Software Stock Market Return: Jan-Feb 2010
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
Development Tools, OS, and App Testing SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: eCommerce Enablement Software
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Art Technology Group, Inc. ARTG $605.26 $526.21 $179.38 66.0% 14.5% 9.0% 2.9x 20.3x 3.0x 14.0x 82.1%CyberSource Corporation CYBS $1,208.68 $1,080.63 $265.14 52.8% 19.2% 15.8% 4.1x 21.2x 4.5x 20.8x 39.0%Imergent, Inc. IIG $79.66 $58.12 $76.01 69.8% 4.3% -26.3% 0.8x 18.0x n/a n/a 58.2%Optimal Group Inc. OPMR $8.50 $4.33 $96.40 30.0% -30.6% -3.3% n/a n/a n/a n/a -42.1%VeriSign, Inc. VRSN $4,571.52 $3,717.66 $1,030.62 77.4% 40.4% 7.2% 3.6x 8.9x 3.7x 8.2x 28.9%
Median: $605.26 $526.21 $179.38 66.0% 14.5% 7.2% 3.3x 19.1x 3.7x 14.0x 39.0%
TTM Revenue Growth 7.2%TTM EBITDA Growth 38.7%TTM Earnings Growth 165.5%Gross Profit Margin 66.0%EBITDA Margin 14.5%Net Income Margin 9.4%SG&A Expenses as a % of Total Revenue 39.7%R&D Expenses as a % of Total Revenue 9.4%
Current Ratio 1.9Quick Ratio 1.7Cash as Percent of Market Cap 27.0%Avg Days Outstanding: Accounts Receivable 37Avg Days Outstanding: Accounts Payable 117Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 10.5%Cash from Operations Growth (YoY) -11.5%Cash from Investing Growth (YoY) 110.8%Cash from Financing Growth (YoY) 83.0%Levered FCF Growth (YoY) 60.9%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) eCommerce Enablement Software Stock Market Return: Jan-Feb 2010
-20%
-15%
-10%
-5%
0%
5%
eCommerce Enablement SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Education and eLearning
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Archipelago Learning, Inc. ARCL $456.19 $508.79 $42.43 92.1% 36.3% 32.3% 12.0x 33.0x n/a n/a n/aBlackboard Inc. BBBB $1,301.91 $1,290.74 $377.00 70.6% 22.7% 20.8% 3.4x 15.1x 3.5x 15.4x 42.3%GSE Systems Inc. GVP $108.25 $86.53 $37.36 25.9% 6.0% 29.9% 2.3x 38.4x 3.0x n/a 8.3%PLATO Learning, Inc. TUTR $97.52 $69.86 $64.73 57.4% 8.7% -5.2% 1.1x 12.4x 1.1x 5.3x 150.0%Renaissance Learning, Inc. RLRN $408.36 $368.87 $121.51 79.1% 27.3% 5.5% 3.0x 11.1x 3.1x n/a 96.2%Rosetta Stone, Inc. RST $449.68 $354.49 $252.27 86.8% 10.2% 20.5% 1.4x 13.8x 1.6x 9.2x n/aSaba Software, Inc. SABA $141.20 $118.80 $104.99 64.6% 10.8% -1.6% 1.1x 10.5x 1.2x 13.5x 164.9%Scientific Learning Corporation SCIL $92.97 $76.06 $52.03 78.2% 12.5% 11.7% 1.5x 11.7x 1.4x n/a 149.8%
Median: $141.20 $118.80 $104.99 70.6% 10.8% 11.7% 1.5x 13.1x 1.6x 11.3x 123.0%
TTM Revenue Growth 11.7%TTM EBITDA Growth 184.9%TTM Earnings Growth 169.8%Gross Profit Margin 70.6%EBITDA Margin 10.8%Net Income Margin 3.5%SG&A Expenses as a % of Total Revenue 40.5%R&D Expenses as a % of Total Revenue 12.2%
Current Ratio 1.1Quick Ratio 1.0Cash as Percent of Market Cap 18.2%Avg Days Outstanding: Accounts Receivable 53Avg Days Outstanding: Accounts Payable 23Working Capital to TTM Operating Expense Ratio 0.1
Levered FCF Margin 10.6%Cash from Operations Growth (YoY) 95.9%Cash from Investing Growth (YoY) 40.2%Cash from Financing Growth (YoY) -9.0%Levered FCF Growth (YoY) 312.5%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Education & eLearning Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
Education & Computer Based Training SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Electronic Design Automation
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Cadence Design Systems, Inc. CDNS $1,531.98 $1,396.70 $852.63 80.2% 0.1% -17.9% 1.6x 1511.6x 1.7x 22.3x 35.7%Magma Design Automation, Inc. LAVA $124.82 $152.49 $123.26 72.7% -2.3% 5.8% 1.2x n/a n/a n/a 124.5%Mentor Graphics Corporation MENT $817.94 $927.20 $808.23 86.6% 9.4% -2.8% 1.1x 12.2x 1.2x 12.6x 87.8%PDF Solutions, Inc. PDFS $104.79 $70.12 $48.44 53.0% -19.0% -34.6% 1.4x n/a 1.5x n/a 269.2%Synopsys, Inc. SNPS $3,209.31 $2,116.97 $1,350.46 82.1% 22.3% -0.8% 1.6x 7.0x 1.6x 5.1x 17.6%
Median: $817.94 $927.20 $808.23 80.2% 0.1% -2.8% 1.4x 12.2x 1.6x 12.6x 87.8%
TTM Revenue Growth -2.8%TTM EBITDA Growth -2.5%TTM Earnings Growth 68.6%Gross Profit Margin 80.2%EBITDA Margin 0.1%Net Income Margin -17.6%SG&A Expenses as a % of Total Revenue 48.0%R&D Expenses as a % of Total Revenue 40.8%
Current Ratio 1.9Quick Ratio 1.8Cash as Percent of Market Cap 34.0%Avg Days Outstanding: Accounts Receivable 123Avg Days Outstanding: Accounts Payable 87Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 5.7%Cash from Operations Growth (YoY) -21.6%Cash from Investing Growth (YoY) 64.6%Cash from Financing Growth (YoY) -18.3%Levered FCF Growth (YoY) 12.0%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Electronic Design Automation Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Electronic Design Automation SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Engineering, PLM, & CAD/CAM
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
ANSYS, Inc. ANSS $3,890.40 $3,771.98 $516.89 88.3% 48.6% 8.1% 7.3x 15.0x 7.5x 12.8x 117.5%Autodesk, Inc. ADSK $6,404.59 $5,403.99 $1,713.70 88.8% 14.4% -26.0% 3.2x 21.9x 3.3x 16.1x 119.7%Cadence Design Systems, Inc. CDNS $1,531.98 $1,396.70 $852.63 80.2% 0.1% -17.9% 1.6x 1511.6x 1.7x 22.3x 35.7%Cimatron Ltd. CIMT $18.17 $12.10 $32.96 81.2% 1.9% -19.6% 0.4x 19.6x n/a n/a 110.5%Dassault Systèmes DSY $6,839.58 $5,669.48 $1,793.34 84.3% 24.0% -6.3% 3.2x 13.2x n/a n/a 65.3%DigitalGlobe, Inc. DGI $1,079.93 $1,326.43 $281.90 89.0% 59.4% 2.4% 4.7x 7.9x 4.8x 8.0x n/aGSE Systems Inc. GVP $108.25 $86.53 $37.36 25.9% 6.0% 29.9% 2.3x 38.4x 3.0x n/a 8.3%Magma Design Automation, Inc. LAVA $124.82 $152.49 $123.26 72.7% -2.3% 5.8% 1.2x n/a n/a n/a 124.5%Mentor Graphics Corporation MENT $817.94 $927.20 $808.23 86.6% 9.4% -2.8% 1.1x 12.2x 1.2x 12.6x 87.8%Parametric Technology Corporation PMTC $2,039.84 $1,865.32 $956.22 68.1% 12.9% -10.6% 2.0x 15.1x 2.1x 12.5x 113.9%PDF Solutions, Inc. PDFS $104.79 $70.12 $48.44 53.0% -19.0% -34.6% 1.4x n/a 1.5x n/a 269.2%Stratasys, Inc. SSYS $534.05 $469.66 $98.36 47.2% 15.2% -21.0% 4.8x 31.5x 4.9x 27.1x 189.8%Synopsys, Inc. SNPS $3,209.31 $2,116.97 $1,350.46 82.1% 22.3% -0.8% 1.6x 7.0x 1.6x 5.1x 17.6%
Median: $1,079.93 $1,326.43 $516.89 81.2% 12.9% -6.3% 2.0x 15.1x 2.6x 12.7x 112.2%
TTM Revenue Growth -6.3%TTM EBITDA Growth -9.2%TTM Earnings Growth -11.9%Gross Profit Margin 81.2%EBITDA Margin 12.9%Net Income Margin 3.5%SG&A Expenses as a % of Total Revenue 37.2%R&D Expenses as a % of Total Revenue 26.7%
Current Ratio 2.1Quick Ratio 1.9Cash as Percent of Market Cap 20.1%Avg Days Outstanding: Accounts Receivable 97Avg Days Outstanding: Accounts Payable 74Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 2.1%Cash from Operations Growth (YoY) -54.0%Cash from Investing Growth (YoY) 30.9%Cash from Financing Growth (YoY) 94.3%Levered FCF Growth (YoY) -36.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Engineering, PLM, & CAD/CAM Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Engineering, PLM, & CAD/CAM SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Enterprise Application Integration
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
BluePhoenix Solutions, Ltd. BPHX $54.36 $47.28 $77.78 45.6% 3.2% -15.2% 0.6x 18.9x 0.6x n/a 18.2%Citrix Systems, Inc. CTXS $7,906.40 $7,306.79 $1,614.09 91.4% 21.3% 1.9% 4.5x 21.3x 4.6x 16.0x 109.0%Jacada Ltd. JCDA $24.90 $6.07 $16.66 34.4% -47.0% -31.6% 0.4x n/a n/a n/a -39.7%Sybase, Inc. SY $3,656.36 $3,216.86 $1,170.57 70.9% 33.3% 3.4% 2.7x 8.3x 2.8x 8.3x 63.3%TIBCO Software Inc. TIBX $1,527.40 $1,277.82 $621.39 74.4% 21.1% -3.6% 2.1x 9.7x 2.2x 8.2x 89.9%
Median: $1,527.40 $1,277.82 $621.39 70.9% 21.1% -3.6% 2.1x 14.3x 2.5x 8.3x 63.3%
TTM Revenue Growth -3.6%TTM EBITDA Growth 15.4%TTM Earnings Growth 18.4%Gross Profit Margin 70.9%EBITDA Margin 21.1%Net Income Margin 10.0%SG&A Expenses as a % of Total Revenue 40.4%R&D Expenses as a % of Total Revenue 17.5%
Current Ratio 1.8Quick Ratio 1.6Cash as Percent of Market Cap 32.4%Avg Days Outstanding: Accounts Receivable 85Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 13.4%Cash from Operations Growth (YoY) 5.9%Cash from Investing Growth (YoY) -138.6%Cash from Financing Growth (YoY) 78.0%Levered FCF Growth (YoY) 30.6%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Enterprise Application Integration Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Enterprise Application Integration SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Enterprise Resource Planning
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
American Software, Inc. AMSW.A $146.49 $104.96 $75.53 57.6% 11.7% -8.7% 1.4x 11.9x 1.4x 9.7x 51.3%CDC Corporation CHIN.A $260.80 $229.97 $334.19 42.2% 6.0% -21.9% 0.7x 11.5x 0.6x 10.5x 213.4%CDC Software Corporation CDCS $287.06 $250.16 $203.90 54.3% 25.6% -15.3% 1.2x 4.8x 1.3x 5.2x n/aDeltek PROJ $516.52 $563.14 $265.82 62.8% 20.2% -8.1% 2.1x 10.5x 2.3x 9.4x 111.3%Epicor Software Corporation EPIC $526.15 $675.02 $409.62 55.9% 14.4% -16.0% 1.6x 11.4x 1.7x 11.5x 205.0%Intuit Inc. INTU $10,250.39 $10,302.39 $3,258.54 80.6% 30.0% 6.4% 3.2x 10.5x 3.3x 9.4x 42.0%Lawson Software, Inc. LWSN $975.02 $839.46 $713.47 55.0% 16.6% -15.4% 1.2x 7.1x 1.2x 9.1x 56.8%Oracle Corporation ORCL $123,526.57 $117,878.57 $23,225.00 81.1% 47.5% -1.3% 5.1x 10.7x 5.1x 10.4x 58.6%QAD Inc. QADI $171.52 $144.58 $221.87 56.5% 6.3% -20.6% 0.7x 10.4x 0.6x n/a 118.7%SAP SAP $54,584.40 $52,706.62 $15,293.44 68.8% 33.7% -7.7% 3.4x 10.2x 3.6x 12.0x 37.9%Tyler Technologies, Inc. TYL $637.16 $627.42 $290.29 44.4% 18.7% 9.5% 2.2x 11.6x 2.2x 11.5x 33.4%
Median: $526.15 $627.42 $334.19 56.5% 18.7% -8.7% 1.6x 10.5x 1.7x 10.0x 57.7%
TTM Revenue Growth -8.7%TTM EBITDA Growth 14.2%TTM Earnings Growth 20.1%Gross Profit Margin 56.5%EBITDA Margin 18.7%Net Income Margin 8.0%SG&A Expenses as a % of Total Revenue 31.6%R&D Expenses as a % of Total Revenue 11.9%
Current Ratio 1.4Quick Ratio 1.2Cash as Percent of Market Cap 28.4%Avg Days Outstanding: Accounts Receivable 80Avg Days Outstanding: Accounts Payable 34Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin 14.7%Cash from Operations Growth (YoY) 32.5%Cash from Investing Growth (YoY) 9.7%Cash from Financing Growth (YoY) 26.2%Levered FCF Growth (YoY) 41.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Enterprise Resource Planning Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Enterprise Resource Planning SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Entertainment
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Electronic Arts Inc. ERTS $5,415.76 $3,631.76 $3,535.00 45.8% -13.7% -21.1% 1.0x n/a 0.9x n/a 1.7%Giant Interactive GA $1,760.12 $1,075.74 $202.18 89.1% 68.2% -17.6% 5.3x 7.8x 4.4x 7.0x 21.3%Glu Mobile, Inc. GLUU $27.88 $33.75 $79.34 64.2% -3.6% -11.6% 0.4x n/a 0.4x 8.2x 87.8%Konami Corporation KNM $2,500.94 $2,543.13 $2,865.04 29.1% 13.0% -13.6% 0.9x 6.8x 0.7x 5.3x 30.9%Majesco Entertainment Company COOL $30.88 $25.10 $94.45 26.9% -2.4% 47.8% 0.3x n/a 0.3x n/a 8.1%Perfect World PWRD $1,959.94 $1,777.09 $286.11 86.3% 55.0% 52.9% 6.2x 11.3x 7.6x 14.4x 242.5%THQ Inc. THQI $409.48 $291.92 $871.73 61.2% 42.0% 3.0% 0.3x 0.8x 0.4x n/a 142.4%
Median: $1,760.12 $1,075.74 $286.11 61.2% 13.0% -11.6% 0.9x 7.3x 0.7x 7.6x 30.9%
TTM Revenue Growth -11.6%TTM EBITDA Growth -7.4%TTM Earnings Growth 34.2%Gross Profit Margin 61.2%EBITDA Margin 13.0%Net Income Margin -7.6%SG&A Expenses as a % of Total Revenue 21.7%R&D Expenses as a % of Total Revenue 11.2%
Current Ratio 2.3Quick Ratio 1.3Cash as Percent of Market Cap 37.7%Avg Days Outstanding: Accounts Receivable 28Avg Days Outstanding: Accounts Payable 60Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 9.4%Cash from Operations Growth (YoY) 31.7%Cash from Investing Growth (YoY) 30.3%Cash from Financing Growth (YoY) 19.6%Levered FCF Growth (YoY) -18.9%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Entertainment Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Entertainment SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Financial Services
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
ACI Worldwide, Inc. ACIW $620.83 $569.91 $405.80 100.0% 14.7% -2.8% 1.4x 9.5x 1.4x 8.4x 2.1%Advent Software, Inc. ADVS $1,035.18 $946.03 $259.51 70.4% 15.1% -2.0% 3.6x 24.2x 3.8x 15.3x 48.0%Blackbaud, Inc. BLKB $1,037.15 $1,015.67 $309.34 60.9% 19.8% 2.3% 3.3x 16.6x 3.4x 13.0x 127.3%Bottomline Technologies EPAY $427.62 $372.81 $144.85 57.2% 13.0% 5.1% 2.6x 19.8x 2.9x 24.4x 171.6%DST Systems, Inc. DST $1,877.50 $2,831.60 $2,217.90 18.2% 18.0% -3.0% 1.3x 7.1x 1.8x 6.7x 30.6%Ebix, Inc. EBIX $493.06 $525.14 $86.52 79.9% 44.9% 29.5% 6.1x 13.5x n/a n/a 108.4%EPIQ Systems, Inc. EPIQ $420.17 $429.98 $239.07 55.8% 22.8% 1.3% 1.8x 7.9x 2.0x 6.7x -31.1%Fair Isaac Corporation FICO $1,067.53 $1,300.27 $618.77 69.3% 27.2% -13.8% 2.1x 7.7x 2.1x 8.4x 109.7%Fiserv FISV $7,343.35 $10,621.35 $4,077.00 41.6% 31.4% -14.0% 2.6x 8.3x 2.6x 8.3x 47.8%Fundtech Ltd. FNDT $208.11 $165.95 $117.76 54.1% 10.6% -2.7% 1.4x 13.3x 1.5x 11.5x 107.4%Jack Henry & Associates, Inc. JKHY $1,908.01 $1,943.80 $765.48 40.9% 30.8% 2.1% 2.5x 8.2x 2.7x 9.2x 41.7%Longtop Financial Technologies LFT $1,864.68 $1,502.16 $151.87 64.5% 45.4% 57.3% 9.9x 21.8x 13.7x 27.2x 118.9%MSCI MXB $3,147.57 $3,057.66 $442.95 73.5% 42.9% 2.8% 6.9x 16.1x 7.6x 15.7x 90.2%NetSol Technologies Inc. NTWK $34.09 $53.13 $29.02 53.2% 7.8% -15.0% 1.8x 23.6x 2.0x n/a 159.5%Risk Metrics Group, Inc RISK $1,178.65 $1,255.41 $303.36 69.9% 33.5% 2.4% 4.1x 12.3x 4.9x 14.0x 69.5%S1 Corporation SONE $324.24 $270.49 $238.09 55.2% 17.0% 6.6% 1.1x 6.7x 1.2x 6.6x 8.9%Sapiens International SPNS $32.60 $23.18 $44.94 42.6% n/a 5.2% 0.5x n/a n/a n/a 75.6%TradeStation Group, Inc. TRAD $285.35 n/a $134.71 76.9% n/a -16.0% n/a n/a n/a n/a 29.2%
Median: $828.00 $946.03 $249.29 59.1% 21.3% 1.7% 2.5x 12.8x 2.6x 10.4x 72.5%
TTM Revenue Growth 1.7%TTM EBITDA Growth 12.3%TTM Earnings Growth 19.0%Gross Profit Margin 59.1%EBITDA Margin 21.3%Net Income Margin 10.9%SG&A Expenses as a % of Total Revenue 30.9%R&D Expenses as a % of Total Revenue 12.6%
Current Ratio 1.7Quick Ratio 1.3Cash as Percent of Market Cap 15.9%Avg Days Outstanding: Accounts Receivable 68Avg Days Outstanding: Accounts Payable 27Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 10.2%Cash from Operations Growth (YoY) 18.0%Cash from Investing Growth (YoY) -28.5%Cash from Financing Growth (YoY) 8.5%Levered FCF Growth (YoY) 17.8%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Financial Services Software Stock Market Return: Jan-Feb 2010
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
Financial Services SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Healthcare
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Allscripts Healthcare Solutions Inc. MDRX $2,611.48 $2,547.93 $661.29 54.4% 15.4% 59.1% 3.9x 25.0x 4.2x 22.8x 105.6%AMICAS, Inc. AMCS $214.05 $173.89 $73.65 49.6% 2.7% 46.4% 2.4x 89.0x 3.5x n/a 202.6%Cerner Corporation CERN $6,792.78 $6,354.58 $1,671.86 83.2% 25.0% -0.2% 3.8x 15.2x 3.9x 13.5x 126.6%Computer Programs and Sys, Inc. CPSI $394.37 $376.74 $127.74 41.7% 19.6% 6.8% 2.9x 15.0x 3.0x 14.4x 34.4%Eclipsys Corporation ECLP $1,064.23 $971.12 $519.18 46.1% 9.4% 0.7% 1.9x 20.0x 2.0x 13.3x 133.5%eResearchTechnology, Inc. ERES $293.23 $213.44 $93.82 52.8% 32.5% -29.5% 2.3x 7.0x 2.2x n/a 24.7%MedAssets MDAS $1,227.88 $1,447.40 $341.28 78.1% 27.8% 22.0% 4.2x 15.3x 4.2x 13.0x 46.5%Merge Healthcare MRGE $161.71 $142.85 $66.84 76.0% 24.4% 17.8% 2.1x 8.8x 2.0x 6.5x 56.9%Omnicell, Inc. OMCL $437.07 $267.84 $213.46 49.9% 5.8% -15.3% 1.3x 21.6x 1.4x 14.6x 88.4%Phase Forward Incorporated PFWD $516.49 $407.38 $213.26 56.7% 14.3% 25.3% 1.9x 13.3x 1.9x 9.5x -13.9%Quality Systems, Inc. QSII $1,641.24 $1,554.07 $279.13 61.4% 28.3% 20.9% 5.6x 19.7x 6.4x 18.9x 47.6%Simulations Plus, Inc. SLP $26.18 $18.21 $9.45 74.9% 21.3% 3.6% 1.9x 9.1x 1.9x 6.2x 81.5%Vital Images, Inc. VTAL $226.99 $97.00 $58.23 75.6% 0.7% -14.5% 1.7x 239.5x 1.7x n/a 61.8%
Median: $437.07 $376.74 $213.26 56.7% 19.6% 6.8% 2.3x 15.3x 2.2x 13.4x 61.8%
TTM Revenue Growth 6.8%TTM EBITDA Growth 12.7%TTM Earnings Growth -14.7%Gross Profit Margin 56.7%EBITDA Margin 19.6%Net Income Margin 5.8%SG&A Expenses as a % of Total Revenue 33.4%R&D Expenses as a % of Total Revenue 11.2%
Current Ratio 2.3Quick Ratio 2.2Cash as Percent of Market Cap 15.3%Avg Days Outstanding: Accounts Receivable 82Avg Days Outstanding: Accounts Payable 32Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 8.1%Cash from Operations Growth (YoY) 19.5%Cash from Investing Growth (YoY) 1.7%Cash from Financing Growth (YoY) -92.5%Levered FCF Growth (YoY) 68.9%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Healthcare Software Stock Market Return: Jan-Feb 2010
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Healthcare SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Messaging, Conferencing, and Comms
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
8x8 Inc. EGHT $84.59 $67.62 $63.29 64.8% 0.2% -3.0% 1.1x 441.9x 1.0x 19.0x 168.0%Evolving Systems, Inc. EVOL $61.31 $60.03 $38.41 65.8% 21.1% 4.2% 1.6x 7.4x 1.7x 10.3x 212.1%Interactive Intelligence, Inc. ININ $340.32 $275.34 $131.42 69.7% 14.2% 8.2% 2.1x 14.8x 2.1x 12.5x 121.3%OpenTV Corp. OPTV $213.06 $104.88 $117.72 61.9% 12.4% -6.4% 0.9x 7.2x n/a n/a 30.5%SeaChange International, Inc. SEAC $220.03 $177.76 $202.63 51.3% 8.6% 3.5% 0.9x 10.2x 0.9x 9.1x 45.4%Synchronoss Technologies, Inc. SNCR $541.52 $458.19 $128.81 50.0% 21.4% 16.1% 3.6x 16.6x 3.9x 13.8x 82.5%Zix Corporation ZIXI $122.85 $109.85 $30.65 70.9% -4.6% 9.3% 3.6x n/a 4.1x n/a 96.9%
Median: $213.06 $109.85 $117.72 64.8% 12.4% 4.2% 1.6x 12.5x 1.9x 12.5x 96.9%
TTM Revenue Growth 4.2%TTM EBITDA Growth 11.6%TTM Earnings Growth 3.5%Gross Profit Margin 64.8%EBITDA Margin 12.4%Net Income Margin 6.6%SG&A Expenses as a % of Total Revenue 36.7%R&D Expenses as a % of Total Revenue 18.3%
Current Ratio 2.0Quick Ratio 1.7Cash as Percent of Market Cap 19.1%Avg Days Outstanding: Accounts Receivable 73Avg Days Outstanding: Accounts Payable 51Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 4.8%Cash from Operations Growth (YoY) 6.4%Cash from Investing Growth (YoY) -215.6%Cash from Financing Growth (YoY) 106.1%Levered FCF Growth (YoY) 288.8%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Messaging, Conferencing, & Comms Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Messaging, Conferencing, & Comms SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Multimedia, Graphics, and Digital Media
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Adobe Systems Incorporated ADBE $18,160.76 $17,256.29 $2,945.85 89.9% 34.4% -17.7% 5.9x 17.0x 5.9x 14.2x 107.5%Avid Technology, Inc. AVID $504.21 $395.34 $628.97 51.8% -1.6% -25.6% 0.6x n/a 0.7x n/a 35.0%Bitstream Inc. BITS $79.65 $61.18 $21.55 59.8% 8.3% -12.6% 2.8x 34.3x n/a n/a 83.3%DigitalGlobe, Inc. DGI $1,079.93 $1,326.43 $281.90 89.0% 59.4% 2.4% 4.7x 7.9x 4.8x 8.0x n/aDivX, Inc. DIVX $197.59 $58.45 $73.70 88.6% 2.4% -22.6% 0.8x 33.6x 0.7x 2.5x 30.5%Monotype Imaging Holdings TYPE $329.58 $391.09 $96.26 93.0% 41.1% -13.3% 4.1x 9.9x 3.6x 8.3x 285.0%NICE Systems Ltd. NICE $1,892.30 $1,568.13 $583.12 59.4% 15.4% -6.6% 2.7x 17.5x 2.7x 10.5x 44.6%Nuance Communications, Inc. NUAN $4,086.18 $4,524.51 $996.50 66.9% 22.3% 11.9% 4.5x 20.4x 4.6x 14.8x 62.4%RealNetworks, Inc. RNWK $620.24 $242.59 $562.26 60.5% -3.9% -7.0% 0.4x n/a 0.5x 12.7x 100.0%Sonic Solutions SNIC $277.24 $220.92 $110.22 70.4% 4.2% -10.1% 2.0x 47.4x 2.4x n/a 818.2%
Median: $562.23 $393.22 $422.08 68.7% 11.8% -11.3% 2.8x 18.9x 2.7x 10.5x 83.3%
TTM Revenue Growth -11.3%TTM EBITDA Growth 1.2%TTM Earnings Growth -1.3%Gross Profit Margin 68.7%EBITDA Margin 11.8%Net Income Margin 5.1%SG&A Expenses as a % of Total Revenue 38.2%R&D Expenses as a % of Total Revenue 19.2%
Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 18.7%Avg Days Outstanding: Accounts Receivable 50Avg Days Outstanding: Accounts Payable 57Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 8.5%Cash from Operations Growth (YoY) -11.8%Cash from Investing Growth (YoY) -33.2%Cash from Financing Growth (YoY) 111.8%Levered FCF Growth (YoY) -25.6%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Multimedia, Graphics, & Digital Media Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Multimedia, Graphics, & Digital Media SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Networking and Connectivity
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Allot Communications Ltd. ALLT $89.54 $50.74 $41.75 71.7% -7.6% 12.5% 1.2x n/a 1.3x n/a 168.5%CA, Inc. CA $11,700.61 $10,630.61 $4,285.00 87.3% 34.5% -0.8% 2.5x 7.2x 2.5x 7.3x 32.7%Cisco Systems, Inc. CSCO $139,304.72 $114,880.72 $35,533.00 64.5% 26.5% -10.2% 3.2x 12.2x 3.2x 11.3x 67.0%Citrix Systems, Inc. CTXS $7,906.40 $7,306.79 $1,614.09 91.4% 21.3% 1.9% 4.5x 21.3x 4.6x 16.0x 109.0%F5 Networks, Inc. FFIV $4,436.49 $4,066.33 $678.67 78.5% 24.8% 2.6% 6.0x 24.2x 6.8x 24.4x 179.0%NetScout Systems Inc. NTCT $600.73 $566.65 $254.55 78.0% 23.0% -1.8% 2.2x 9.7x 2.1x 8.6x 10.4%Novell, Inc. NOVL $1,631.48 $640.19 $849.68 78.4% 15.9% -9.7% 0.8x 4.7x 0.8x n/a 48.7%OPNET Technologies, Inc. OPNT $308.36 $207.58 $120.82 75.6% 8.2% -0.1% 1.7x 21.0x 1.7x 13.9x 61.9%Radware Ltd. RDWR $320.88 $261.79 $108.90 79.5% -0.9% 15.1% 2.4x n/a 2.6x 28.6x 182.9%SolarWinds, Inc. SWI $1,269.92 $1,184.24 $116.45 95.8% 39.5% 25.0% 10.2x 25.8x 9.9x 19.7x n/aTTI Team Telecom International Ltd. TTIL $28.01 -$1.72 $45.00 54.0% 9.8% -12.2% n/a n/a n/a n/a 196.6%
Median: $1,450.70 $912.21 $466.61 78.4% 22.1% -0.5% 2.5x 16.6x 2.6x 15.0x 88.0%
TTM Revenue Growth -0.5%TTM EBITDA Growth 21.5%TTM Earnings Growth 19.7%Gross Profit Margin 78.4%EBITDA Margin 22.1%Net Income Margin 11.1%SG&A Expenses as a % of Total Revenue 44.8%R&D Expenses as a % of Total Revenue 16.3%
Current Ratio 2.3Quick Ratio 2.0Cash as Percent of Market Cap 20.9%Avg Days Outstanding: Accounts Receivable 59Avg Days Outstanding: Accounts Payable 57Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 13.3%Cash from Operations Growth (YoY) 4.4%Cash from Investing Growth (YoY) -64.7%Cash from Financing Growth (YoY) 75.4%Levered FCF Growth (YoY) 18.8%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Networking & Connectivity Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Networking and Connectivity SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Security
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
ActivCard Corp. ACTI $114.85 $43.81 $60.68 68.9% -6.4% 1.3% 0.7x n/a n/a n/a 29.7%ArcSight, Inc. ARST $904.45 $797.23 $155.73 81.1% 13.7% 32.5% 5.1x 37.4x 6.2x 61.7x 186.9%Blue Coat Systems, Inc. BCSI $1,205.92 $1,096.46 $477.16 70.8% 10.4% 13.8% 2.3x 22.1x 2.5x n/a 163.9%Check Point Software Tech Ltd. CHKP $6,804.60 $5,920.60 $924.42 88.6% 52.3% 14.3% 6.4x 12.2x 6.6x 11.4x 48.4%Cogent, Inc. COGT $888.49 $362.61 $129.58 62.3% 35.0% 3.1% 2.8x 8.0x 2.8x 8.0x -4.8%Commtouch Software Ltd. CTCH $92.96 $75.69 $15.19 85.1% 21.0% 7.8% 5.0x 23.7x n/a n/a 100.0%McAfee, Inc. MFE $6,260.22 $5,310.06 $1,927.33 79.0% 23.3% 20.5% 2.8x 11.8x 2.8x 8.7x 42.0%SonicWALL, Inc. SNWL $434.49 $234.34 $200.58 72.6% 10.3% -8.3% 1.2x 11.3x 1.3x 7.3x 81.2%Sourcefire, Inc. FIRE $628.27 $575.20 $103.47 78.7% 11.5% 36.7% 5.6x 48.2x 6.3x 49.0x 245.1%Symantec Corporation SYMC $13,343.26 $12,576.26 $5,921.85 85.5% 30.0% -4.8% 2.1x 7.1x 2.0x 5.4x 19.7%VASCO Data Security International VDSI $296.90 $229.30 $101.70 70.0% 15.4% -23.5% 2.3x 14.6x 2.3x n/a 60.3%VeriSign, Inc. VRSN $4,571.52 $3,717.66 $1,030.62 77.4% 40.4% 7.2% 3.6x 8.9x 3.7x 8.2x 28.9%Websense, Inc. WBSN $928.72 $932.86 $313.71 88.0% 17.3% 8.8% 3.0x 17.2x 2.9x 8.0x 92.3%Zix Corporation ZIXI $122.85 $109.85 $30.65 70.9% -4.6% 9.3% 3.6x n/a 4.1x n/a 96.9%
Median: $896.47 $686.21 $178.15 78.1% 16.4% 8.3% 2.9x 13.4x 2.8x 8.2x 60.3%
TTM Revenue Growth 8.3%TTM EBITDA Growth 36.8%TTM Earnings Growth 101.7%Gross Profit Margin 78.1%EBITDA Margin 16.4%Net Income Margin 8.4%SG&A Expenses as a % of Total Revenue 46.4%R&D Expenses as a % of Total Revenue 16.0%
Current Ratio 2.3Quick Ratio 2.2Cash as Percent of Market Cap 17.1%Avg Days Outstanding: Accounts Receivable 67Avg Days Outstanding: Accounts Payable 72Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 4.6%Cash from Operations Growth (YoY) 35.2%Cash from Investing Growth (YoY) -146.2%Cash from Financing Growth (YoY) 51.5%Levered FCF Growth (YoY) 249.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Security Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Security SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Storage and Systems Management
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
BMC Software, Inc. BMC $6,727.76 $5,894.46 $1,899.20 78.7% 33.5% 2.1% 3.1x 9.3x 3.1x 7.8x 24.3%CA, Inc. CA $11,700.61 $10,630.61 $4,285.00 87.3% 34.5% -0.8% 2.5x 7.2x 2.5x 7.3x 32.7%CommVault Systems, Inc. CVLT $931.98 $783.33 $253.72 86.6% 10.8% 8.0% 3.1x 28.5x 3.2x 19.7x 100.4%Compuware Corporation CPWR $1,703.29 $1,650.43 $915.54 67.5% 23.5% -22.1% 1.8x 7.7x 1.5x n/a 26.7%EMC EMC $35,676.49 $32,592.03 $14,025.91 55.2% 18.9% -5.7% 2.3x 12.3x 2.4x 9.7x 66.6%FalconStor Software, Inc. FALC $159.36 $118.66 $89.46 81.9% -0.6% 2.8% 1.3x n/a 1.4x 17.1x 42.0%Network Appliance, Inc. NTAP $10,170.57 $8,167.05 $3,640.00 63.3% 13.9% 1.3% 2.2x 16.2x 2.5x 20.4x 123.3%SupportSoft, Inc. SPRT $137.07 $55.75 $17.50 5.0% -135.2% -64.2% 3.2x n/a 3.6x n/a 69.0%Symantec Corporation SYMC $13,343.26 $12,576.26 $5,921.85 85.5% 30.0% -4.8% 2.1x 7.1x 2.0x 5.4x 19.7%VMWare VMW $19,941.89 $17,905.42 $2,023.94 82.2% 20.7% 7.6% 8.8x 42.7x 9.4x 31.3x 138.5%
Median: $8,449.16 $7,030.75 $1,961.57 80.3% 19.8% 0.2% 2.4x 10.8x 2.5x 13.4x 54.3%
TTM Revenue Growth 0.2%TTM EBITDA Growth -4.9%TTM Earnings Growth 5.8%Gross Profit Margin 80.3%EBITDA Margin 19.8%Net Income Margin 8.8%SG&A Expenses as a % of Total Revenue 42.4%R&D Expenses as a % of Total Revenue 13.5%
Current Ratio 2.2Quick Ratio 1.9Cash as Percent of Market Cap 19.2%Avg Days Outstanding: Accounts Receivable 71Avg Days Outstanding: Accounts Payable 38Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 14.7%Cash from Operations Growth (YoY) -7.3%Cash from Investing Growth (YoY) -49.9%Cash from Financing Growth (YoY) 23.8%Levered FCF Growth (YoY) 24.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Storage & Systems Management Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Storage & Systems Management SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Supply Chain Management and Logistics
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
American Software, Inc. AMSW.A $146.49 $104.96 $75.53 57.6% 11.7% -8.7% 1.4x 11.9x 1.4x 9.7x 51.3%Ariba, Inc. ARBA $1,072.90 $928.76 $338.56 63.4% 10.6% 0.4% 2.7x 26.0x 2.9x 13.4x 37.3%Aspen Technology, Inc. AZPN $825.96 $813.03 $225.03 67.8% -18.2% -34.1% 3.6x n/a 2.3x n/a 36.4%CDC Software Corporation CDCS $287.06 $250.16 $203.90 54.3% 25.6% -15.3% 1.2x 4.8x 1.3x 5.2x n/aJDA Software Group JDAS $976.78 $1,173.05 $385.80 63.3% 23.0% -1.2% 3.0x 13.2x 3.8x 12.4x 191.8%Manhattan Associates, Inc. MANH $571.43 $451.21 $246.67 56.4% 14.8% -26.8% 1.8x 12.4x 1.9x 12.0x 70.6%ModusLink Global Solutions, Inc. MLNK $444.78 $270.22 $963.82 13.5% 6.0% -11.2% 0.3x 4.7x n/a n/a 421.1%Retalix Ltd. RTLX $314.51 $248.62 $198.18 42.1% 7.5% -11.8% 1.3x 16.8x n/a n/a 73.9%The Descartes Systems Group Inc. DSG $380.36 $284.20 $70.57 68.8% 25.8% 6.3% 4.0x 15.6x n/a n/a 168.0%XATA Corporation XATA $26.67 $73.02 $68.21 43.9% 6.6% 12.4% 1.1x 16.3x 1.1x n/a 21.4%
Median: $412.57 $277.21 $214.46 57.0% 11.1% -9.9% 1.6x 13.2x 1.9x 12.0x 70.6%
TTM Revenue Growth -9.9%TTM EBITDA Growth 46.8%TTM Earnings Growth 18.8%Gross Profit Margin 57.0%EBITDA Margin 11.1%Net Income Margin 4.0%SG&A Expenses as a % of Total Revenue 29.0%R&D Expenses as a % of Total Revenue 13.3%
Current Ratio 2.3Quick Ratio 1.7Cash as Percent of Market Cap 21.7%Avg Days Outstanding: Accounts Receivable 71Avg Days Outstanding: Accounts Payable 33Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 10.6%Cash from Operations Growth (YoY) 30.0%Cash from Investing Growth (YoY) 34.4%Cash from Financing Growth (YoY) 31.8%Levered FCF Growth (YoY) 24.8%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Supply Chain Management & Logistics Software Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Supply Chain Management & Logistics SW S&P 500 NASDAQ SEG SW Index
SEG Software Index Category: Wireless
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Itron, Inc. ITRI $2,689.11 $3,348.99 $1,687.45 31.9% 11.9% -11.6% 2.0x 16.7x 2.1x 17.1x 49.9%Openwave Systems Inc. OPWV $216.98 $111.83 $192.17 59.6% 4.5% -3.7% 0.6x 13.1x 0.6x n/a 215.9%PCTEL, Inc. PCTI $113.75 $45.25 $59.48 46.5% 2.5% -23.6% 0.8x 30.4x 0.7x 4.6x 20.1%Smith Micro Software, Inc. SMSI $292.25 $246.39 $107.28 85.6% 19.9% 9.0% 2.3x 11.6x 2.5x 8.1x 106.1%TeleCommunication Systems, Inc. TSYS $389.45 $511.07 $300.09 37.9% 13.2% 36.3% 1.7x 12.9x 1.7x 10.6x -7.6%
Median: $292.25 $246.39 $192.17 46.5% 11.9% -3.7% 1.7x 13.1x 1.7x 9.3x 49.9%
TTM Revenue Growth -3.7%TTM EBITDA Growth 71.5%TTM Earnings Growth -50.9%Gross Profit Margin 46.5%EBITDA Margin 11.9%Net Income Margin -0.1%SG&A Expenses as a % of Total Revenue 29.9%R&D Expenses as a % of Total Revenue 17.8%
Current Ratio 2.0Quick Ratio 1.7Cash as Percent of Market Cap 15.8%Avg Days Outstanding: Accounts Receivable 72Avg Days Outstanding: Accounts Payable 66Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 7.2%Cash from Operations Growth (YoY) -39.6%Cash from Investing Growth (YoY) -102.3%Cash from Financing Growth (YoY) 84.9%Levered FCF Growth (YoY) -36.8%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) Wireless Software Stock Market Return: Jan-Feb 2010
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Wireless SW S&P 500 NASDAQ SEG SW Index
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Company Performance
SEG SaaS Index
SEG SaaS Index
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Athenahealth ATHN $1,241.10 $1,149.12 $178.91 58.6% 13.2% 41.6% 6.4x 48.7x 8.4x 53.5x 44.5%Concur CNQR $1,943.28 $1,685.53 $256.69 69.6% 25.1% 14.2% 6.6x 26.2x 7.0x 23.3x 87.4%Constant Contact CTCT $529.52 $416.42 $129.06 70.8% 5.3% 47.9% 3.2x 61.2x 3.3x 36.0x 35.2%DealerTrack TRAK $569.81 $370.82 $225.63 49.5% 10.7% -7.0% 1.6x 15.4x 1.8x 11.9x 34.7%DemandTec DMAN $171.02 $124.45 $78.76 67.8% -5.3% 7.8% 1.6x n/a 1.7x 18.6x -20.2%Kenexa KNXA $222.69 $165.71 $157.67 66.2% 11.8% -22.6% 1.1x 8.9x 1.2x 7.2x 114.6%LivePerson LPSN $338.13 $292.56 $87.49 75.9% 20.8% 17.2% 3.3x 16.1x 3.6x 14.8x 266.8%Medidata Solutions MDSO $350.87 $268.56 $135.28 63.3% 12.6% 78.3% 2.0x 15.7x n/a n/a n/aNetsuite N $770.87 $674.39 $166.54 66.3% -7.7% 9.2% 4.0x n/a 4.1x 63.4x 34.3%RightNow RNOW $495.04 $398.54 $152.69 68.9% 7.8% 8.7% 2.6x 33.6x 2.9x 26.3x 95.7%Salary.com SLRY $41.37 $32.67 $46.17 67.6% -28.1% 14.1% 0.7x n/a 0.8x n/a 50.0%Salesforce.com CRM $8,486.96 $7,721.54 $1,305.58 80.2% 12.9% 21.3% 5.9x 45.8x 6.3x 33.1x 142.7%SoundBite Communications SDBT $45.83 $9.51 $40.23 60.5% 0.5% -8.3% 0.2x 50.9x 0.2x n/a 72.4%SuccessFactors SFSF $1,299.36 $976.11 $153.05 76.9% -5.3% 36.8% 6.4x n/a 6.6x n/a 256.5%Taleo TLEO $903.09 $659.38 $198.41 68.2% 13.1% 17.8% 3.3x 25.3x 3.5x 13.6x 161.6%The Ultimate Software Group, Inc. ULTI $762.63 $734.48 $196.58 55.2% 5.7% 10.1% 3.7x 65.5x 3.8x 30.8x 138.8%Vocus VOCS $275.62 $172.20 $84.58 81.7% 4.7% 9.1% 2.0x 43.5x 2.1x 9.7x -14.5%
Median: $529.52 $398.54 $153.05 67.8% 7.8% 14.1% 3.2x 33.6x 3.4x 23.3x 79.9%
TTM Revenue Growth 14.1%TTM EBITDA Growth 80.9%TTM Earnings Growth 38.7%Gross Profit Margin 67.8%EBITDA Margin 7.8%Net Income Margin -1.0%SG&A Expenses as a % of Total Revenue 48.2%R&D Expenses as a % of Total Revenue 13.8%
Current Ratio 2.1Quick Ratio 2.1Cash as Percent of Market Cap 24.8%Avg Days Outstanding: Accounts Receivable 70Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 5.5%Cash from Operations Growth (YoY) 18.0%Cash from Investing Growth (YoY) -4.4%Cash from Financing Growth (YoY) 102.8%Levered FCF Growth (YoY) 154.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) SEG SaaS Index Stock Market Return: Jan-Feb 2010
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
SEG SaaS Index S&P 500 NASDAQ SEG SW Index
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Category Performance
SEG Internet Index
SEG Internet Index: All Categories
Category Name Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue
EV/ EBITDA
Forward EV/ Revenue
Forward EV/
EBITDA
YoY Stock Market Return
SEG Internet Index $256.56 $185.60 $138.40 58.7% 10.2% 1.0% 1.2x 11.8x 1.6x 8.2x 77.2% Advertising $631.36 $508.57 $284.78 56.3% 16.6% 5.0% 2.8x 14.6x 2.9x 12.1x 64.0% eCommerce & Portals $352.74 $307.60 $232.89 73.1% 13.1% 1.4% 1.8x 12.6x 2.1x 12.2x 89.7% Financial $59.82 $32.44 $42.44 57.4% 7.1% -1.4% 1.1x 10.3x 1.3x 4.5x 72.4% Networking & Connectivity $325.34 $245.90 $214.15 39.0% 12.7% 1.3% 0.8x 10.1x 1.3x 6.8x 64.9% New Media $257.81 $151.22 $106.42 60.5% 7.2% -10.4% 1.2x 23.4x 1.3x 7.9x 85.8% Search Engine $18,025.84 $17,354.92 $651.40 62.6% 41.6% 8.5% 4.4x 14.6x 5.2x 12.5x 15.7%
TTM Revenue Growth 1.0%TTM EBITDA Growth 12.7%TTM Earnings Growth 43.2%Gross Profit Margin 58.7%EBITDA Margin 10.2%Net Income Margin 3.9%SG&A Expenses as a % of Total Revenue 39.9%R&D Expenses as a % of Total Revenue 9.6%
Current Ratio 2.7Quick Ratio 2.3Cash as Percent of Market Cap 26.2%Avg Days Outstanding: Accounts Receivable 36Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 7.1%Cash from Operations Growth (YoY) 18.0%Cash from Investing Growth (YoY) -6.1%Cash from Financing Growth (YoY) 4.1%Levered FCF Growth (YoY) 10.4%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
SEG Internet Index Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
SEG Internet Index S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: Advertising
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Autobytel Inc. ABTL $48.35 $23.11 $54.88 34.1% -13.1% -27.6% 0.4x n/a n/a n/a 197.2%Baidu.com, Inc. BIDU $18,025.84 $17,354.92 $651.40 69.9% 42.4% 39.1% 26.6x 62.8x 27.2x 60.5x 249.7%comScore Inc. SCOR $470.02 $382.94 $127.74 69.7% 13.7% 8.8% 3.0x 21.8x 3.1x 13.8x 72.1%Google Inc. GOOG $167,511.49 $143,026.72 $23,650.56 62.6% 41.6% 8.5% 6.0x 14.5x 6.3x 13.6x 55.9%InfoSpace, Inc. INSP $358.78 $132.38 $207.65 34.4% 8.1% 32.5% 0.6x 7.8x 0.8x 6.5x 90.5%LookSmart, Ltd. LOOK $15.76 -$8.45 $53.96 36.5% -8.4% -17.0% n/a n/a n/a n/a -26.4%Marchex Inc. MCHX $181.58 $147.94 $93.26 48.9% 4.6% -36.3% 1.6x 34.8x 1.7x 12.7x 26.3%SINA Corporation SINA $2,289.28 $1,793.52 $361.92 57.0% 22.5% 6.8% 5.0x 22.0x 4.9x 16.8x 76.2%Sohu.com Inc. SOHU $1,934.05 $1,438.26 $515.24 76.1% 43.1% 20.1% 2.8x 6.5x 2.7x 6.1x 3.7%Tucows Inc. TCX $47.91 $41.50 $80.94 28.4% 8.7% 3.1% 0.5x 5.9x 0.5x 4.8x 112.7%ValueClick, Inc. VCLK $792.69 $634.19 $422.72 72.4% 27.5% -32.5% 1.5x 5.5x 1.2x 4.8x 51.4%Yahoo! Inc. YHOO $21,437.09 $18,254.35 $6,460.32 55.5% 19.4% -10.4% 2.8x 14.6x 4.0x 11.4x 15.7%
Median: $631.36 $508.57 $284.78 56.3% 16.6% 5.0% 2.8x 14.6x 2.9x 12.1x 64.0%
TTM Revenue Growth 5.0%TTM EBITDA Growth 12.8%TTM Earnings Growth 47.9%Gross Profit Margin 56.3%EBITDA Margin 16.6%Net Income Margin 12.2%SG&A Expenses as a % of Total Revenue 29.3%R&D Expenses as a % of Total Revenue 10.6%
Current Ratio 3.4Quick Ratio 3.3Cash as Percent of Market Cap 20.1%Avg Days Outstanding: Accounts Receivable 50Avg Days Outstanding: Accounts Payable 18Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 4.6%Cash from Operations Growth (YoY) -1.9%Cash from Investing Growth (YoY) -44.4%Cash from Financing Growth (YoY) 39.7%Levered FCF Growth (YoY) 14.6%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) SEG Internet: Advertising Stock Market Return: Jan-Feb 2010
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
S&P 500 NASDAQ SEG SW Index SEG Internet: Advertising
SEG Internet Index Category: eCommerce and Portals
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
1-800-FLOWERS.COM, Inc. FLWS $128.93 $164.80 $673.71 40.4% 4.7% 4.3% 0.2x 5.2x 0.2x 5.1x 52.6%Amazon.com, Inc. AMZN $52,634.25 $46,661.25 $24,509.00 22.6% 5.7% 27.9% 1.9x 33.7x 2.1x 27.9x 82.7%Bluefly, Inc. BFLY $46.01 $35.96 $81.22 38.9% 0.3% -15.2% 0.4x 127.5x 0.4x n/a 210.0%Digital River Inc. DRIV $1,016.21 $617.09 $403.77 84.2% 22.4% 2.4% 1.5x 6.8x 1.7x 6.5x 9.9%eBay Inc. EBAY $29,903.14 $24,959.34 $8,727.36 71.6% 30.4% 2.2% 2.9x 9.4x 3.0x 8.6x 111.8%Expedia, Inc. EXPE $6,449.60 $6,723.34 $2,955.43 79.5% 25.4% 0.6% 2.3x 9.0x 2.4x 8.3x 179.0%GSI Commerce, Inc. GSIC $1,503.34 $1,480.71 $1,004.22 60.3% 7.4% 3.9% 1.5x 19.8x 1.6x 15.4x 125.2%InsWeb Corp. INSW $20.85 $14.44 $35.17 100.0% -3.1% -6.2% 0.4x n/a n/a n/a 109.7%Internet Brands, Inc INET $371.73 $311.58 $99.76 81.2% 36.3% -4.1% 3.1x 8.6x 3.3x 8.2x 71.8%Liquidity Services, Inc. LQDT $333.75 $272.55 $245.95 42.4% 9.4% -5.5% 1.1x 11.8x 1.2x 11.8x 161.7%LiveDeal, Inc. LIVE $3.95 -$2.04 $10.91 48.5% -77.9% -48.9% n/a n/a n/a n/a -55.2%LoopNet, Inc. LOOP $326.67 $245.86 $76.49 85.5% 26.7% -11.1% 3.2x 12.1x 3.5x 8.7x 61.3%Market Leader, Inc. LEDR $46.38 -$7.02 $26.08 100.0% -35.5% -39.0% n/a n/a n/a n/a 30.1%Mercadolibre, Inc. MELI $1,815.18 $1,754.01 $172.84 79.2% 34.7% 26.1% 10.1x 29.3x 10.0x 28.7x 146.2%Move, Inc. MOVE $244.57 $303.61 $219.82 77.7% 2.2% -11.1% 1.4x 61.9x 1.3x 14.5x -3.1%NetEase.com, Inc. NTES $5,033.19 $4,005.56 $550.23 74.7% 57.7% 21.8% 7.3x 12.6x 7.1x 12.2x 89.7%OpenTable, Inc. OPEN $762.47 $692.44 $68.60 69.8% 20.0% 22.8% 10.1x 50.4x 10.4x 47.1x n/aOverstock.com, Inc. OSTK $281.11 $262.78 $814.45 19.0% 1.2% -6.7% 0.3x 27.6x 0.3x 22.6x 51.0%priceline.com Incorporated PCLN $10,333.67 $9,729.38 $2,338.21 53.9% 21.8% 24.1% 4.2x 19.1x 4.5x 19.9x 167.2%Travelzoo, Inc. TZOO $187.46 $167.55 $93.97 94.0% 16.7% 15.4% 1.8x 10.7x 1.9x n/a 105.0%
Median: $352.74 $307.60 $232.89 73.1% 13.1% 1.4% 1.8x 12.6x 2.1x 12.2x 89.7%
TTM Revenue Growth 1.4%TTM EBITDA Growth 23.1%TTM Earnings Growth 40.8%Gross Profit Margin 73.1%EBITDA Margin 13.1%Net Income Margin 5.5%SG&A Expenses as a % of Total Revenue 41.5%R&D Expenses as a % of Total Revenue 10.3%
Current Ratio 2.5Quick Ratio 2.0Cash as Percent of Market Cap 19.4%Avg Days Outstanding: Accounts Receivable 19Avg Days Outstanding: Accounts Payable 68Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 9.2%Cash from Operations Growth (YoY) 43.9%Cash from Investing Growth (YoY) 34.8%Cash from Financing Growth (YoY) 20.9%Levered FCF Growth (YoY) 53.3%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
SEG Internet: eCommerce & Portals Stock Market Return: Jan-Feb 2010
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
SEG Internet: eCommerce and Portals S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: Financial
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Banks.com, Inc BNX $9.28 $11.47 $9.98 65.6% 8.5% -29.7% 1.1x 13.5x n/a n/a 78.0%China Finance Online Co. Ltd. JRJC $154.97 $53.40 $53.89 83.9% 1.6% 8.1% 1.0x 61.4x 1.0x 2.4x 486.7%Online Resources Corp. ORCC $110.36 $236.83 $151.86 49.1% 22.1% 0.1% 1.6x 7.1x 1.6x 6.5x 66.8%Track Data Corp. TRAC $7.05 $2.30 $31.00 35.4% 5.6% -2.9% 0.1x 1.3x n/a n/a 6.3%
Median: $59.82 $32.44 $42.44 57.4% 7.1% -1.4% 1.1x 10.3x 1.3x 4.5x 72.4%
TTM Revenue Growth -1.4%TTM EBITDA Growth 12.5%TTM Earnings Growth 9.1%Gross Profit Margin 57.4%EBITDA Margin 7.1%Net Income Margin 2.8%SG&A Expenses as a % of Total Revenue 52.6%R&D Expenses as a % of Total Revenue 12.1%
Current Ratio 2.0Quick Ratio 1.7Cash as Percent of Market Cap 44.1%Avg Days Outstanding: Accounts Receivable 27Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 10.1%Cash from Operations Growth (YoY) 56.9%Cash from Investing Growth (YoY) 24.4%Cash from Financing Growth (YoY) -27.3%Levered FCF Growth (YoY) n/a
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
SEG Internet: Financial Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
SEG Internet: Financial S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: Networking and Connectivity
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
EarthLink Inc. ELNK $894.74 $470.68 $723.73 48.6% 32.7% -24.3% 0.7x 2.0x 0.7x 2.0x 32.4%Internap Network Services Corp. INAP $255.32 $203.65 $256.92 37.1% 8.8% 2.2% 0.8x 9.0x 0.8x 6.1x 64.9%Internet Gold Golden Lines Ltd. IGLD $551.36 $698.84 $326.32 30.5% 20.2% 8.2% 2.1x 10.6x 2.2x n/a 456.9%Internet Initiative Japan Inc. IIJI $395.37 $436.08 $722.51 20.3% 13.3% -2.9% 0.6x 4.5x n/a n/a 147.7%iPass Inc. IPAS $66.60 $24.82 $171.38 39.5% -0.1% -10.4% 0.1x n/a n/a n/a 16.3%Keynote Systems Inc. KEYN $154.11 $98.19 $80.18 49.0% 12.2% 0.4% 1.2x 10.1x 1.3x 7.6x 43.1%LogMeIn, Inc. LOGM $418.40 $288.16 $74.41 89.9% 16.6% 43.9% 3.9x 23.3x 4.1x 19.0x n/aSify Technologies Limited SIFY $71.94 $127.01 $145.13 38.5% 1.3% 8.2% 0.9x 69.8x n/a n/a 184.7%
Median: $325.34 $245.90 $214.15 39.0% 12.7% 1.3% 0.8x 10.1x 1.3x 6.8x 64.9%
TTM Revenue Growth 1.3%TTM EBITDA Growth 0.9%TTM Earnings Growth 96.9%Gross Profit Margin 39.0%EBITDA Margin 12.7%Net Income Margin 3.7%SG&A Expenses as a % of Total Revenue 28.4%R&D Expenses as a % of Total Revenue 5.8%
Current Ratio 2.5Quick Ratio 2.3Cash as Percent of Market Cap 32.5%Avg Days Outstanding: Accounts Receivable 59Avg Days Outstanding: Accounts Payable 52Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 1.6%Cash from Operations Growth (YoY) -4.1%Cash from Investing Growth (YoY) 5.7%Cash from Financing Growth (YoY) 4.1%Levered FCF Growth (YoY) -7.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
SEG Internet: Networking & Connectivity Stock Market Return: Jan-Feb 2010
-8%
-6%
-4%
-2%
0%
2%
4%
6%
SEG Internet: Networking & Connectivity S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: New Media
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Inuvo, Inc. INUV $27.79 $35.09 $40.25 28.3% -4.5% -31.3% 0.9x n/a n/a n/a 127.8%RealNetworks, Inc. RNWK $620.24 $242.59 $562.26 60.5% -3.9% -7.0% 0.4x n/a 0.5x n/a 100.0%TechTarget, Inc. TTGT $219.86 $151.22 $89.94 70.1% 7.2% -15.4% 1.7x 23.4x 1.4x 6.8x 109.2%The Knot, Inc. KNOT $257.81 $126.31 $106.42 79.7% 13.4% 2.4% 1.2x 8.8x 1.2x 7.9x 23.6%TheStreet.com, Inc. TSCM $110.70 $47.40 $61.13 50.3% 2.8% -15.7% 0.8x 27.6x 0.6x 5.4x 78.2%WebMD Health Corp. WBMD $2,248.78 $2,271.32 $438.54 62.2% 16.2% 17.4% 5.2x 32.0x 5.5x 22.8x 85.8%Yahoo! Inc. YHOO $21,437.09 $18,254.35 $6,460.32 55.5% 19.4% -10.4% 2.8x 14.6x 4.0x 11.4x 15.7%
Median: $257.81 $151.22 $106.42 60.5% 7.2% -10.4% 1.2x 23.4x 1.3x 7.9x 85.8%
TTM Revenue Growth -10.4%TTM EBITDA Growth -4.9%TTM Earnings Growth -79.1%Gross Profit Margin 60.5%EBITDA Margin 7.2%Net Income Margin -4.6%SG&A Expenses as a % of Total Revenue 46.1%R&D Expenses as a % of Total Revenue 19.0%
Current Ratio 2.7Quick Ratio 2.5Cash as Percent of Market Cap 31.6%Avg Days Outstanding: Accounts Receivable 58Avg Days Outstanding: Accounts Payable 49Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 9.2%Cash from Operations Growth (YoY) -17.0%Cash from Investing Growth (YoY) -20.5%Cash from Financing Growth (YoY) -5.3%Levered FCF Growth (YoY) 174.2%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
Income Statement Analysis (Median) SEG Internet: New Media Stock Market Return: Jan-Feb 2010
-10%
-5%
0%
5%
10%
15%
SEG Internet: New Media S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: Search Engine
Company Name Ticker Market Cap EV TTM RevenueTTM Gross
MarginTTM EBITDA
Margin
TTM Revenue Growth EV/ Revenue EV/ EBITDA
Forward EV/ Revenue
Forward EV/ EBITDA
YoY Stock Market Return
Baidu.com, Inc. BIDU $18,025.84 $17,354.92 $651.40 69.9% 42.4% 39.1% 26.6x 62.8x 27.2x 60.5x 249.7%Google Inc. GOOG $167,511.49 $143,026.72 $23,650.56 62.6% 41.6% 8.5% 6.0x 14.5x 6.3x 13.6x 55.9%LookSmart, Ltd. LOOK $15.76 -$8.45 $53.96 36.5% -8.4% -17.0% n/a n/a n/a n/a -26.4%Sohu.com Inc. SOHU $1,934.05 $1,438.26 $515.24 76.1% 43.1% 20.1% 2.8x 6.5x 2.7x 6.1x 3.7%Yahoo! Inc. YHOO $21,437.09 $18,254.35 $6,460.32 55.5% 19.4% -10.4% 2.8x 14.6x 4.0x 11.4x 15.7%
Median: $18,025.84 $17,354.92 $651.40 62.6% 41.6% 8.5% 4.4x 14.6x 5.2x 12.5x 15.7%
TTM Revenue Growth 8.5%TTM EBITDA Growth 21.0%TTM Earnings Growth 40.9%Gross Profit Margin 62.6%EBITDA Margin 41.6%Net Income Margin 27.6%SG&A Expenses as a % of Total Revenue 25.3%R&D Expenses as a % of Total Revenue 12.0%
Current Ratio 3.5Quick Ratio 3.4Cash as Percent of Market Cap 15.4%Avg Days Outstanding: Accounts Receivable 34Avg Days Outstanding: Accounts Payable 16Working Capital to TTM Operating Expense Ratio 1.2
Levered FCF Margin 9.2%Cash from Operations Growth (YoY) -5.8%Cash from Investing Growth (YoY) -50.8%Cash from Financing Growth (YoY) 95.5%Levered FCF Growth (YoY) 88.4%
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
March 2010 Monthly Flash Report
SEG Internet: Search Engine Stock Market Return: Jan-Feb 2010
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
SEG Internet: Search Engine S&P 500 NASDAQ SEG SW Index
Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved
To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.
Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please contact Kris Beible, Director, Business Development (858 509-2800, [email protected]).
CONTACT INFORMATION:
Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.com
p: (858) 509-2800f: (858) 509-2818
The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.
Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are 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 domain expertise. 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.
Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than eighteen thousand industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. Software Equity Group’s senior bankers have keynoted and spoken at more than one hundred software industry conferences and seminars, including Software Business, SoftExpo, Culpepper, VAR Conference, ACETECH, and the Arizona, Colorado, Chicago, Southern California, Denver, San Diego, Washington State and Boulder Software Associations.