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Public SaaS CompaniesPublic Internet Companies By Product Category
August 2011
Software Equity Group Flash Report
Select M&A Transactionsand
Financial and Stock Market PerformancePublic Software Companies By Product Category
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
San Diego, CA 9213012220 El Camino Real, #320Software Equity Group, L.L.C.
p: (858) 509-2800f: (858) 509-2818
Copyright © 2011 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 h i d f M&A i i d fi i i h i d A d h b d ’ h f hi i d i I ’ li I ’ f b ildi
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
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, .2800-509-858or [email protected] 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
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 System
List of Commonly Used Acronyms
NASDAQ 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
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
July 2011
Select Software Industry M&A Transactions
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Select July 2011 Software Industry M&A TransactionsDate
Announced EV/ Revenue
07/29/2011 Nimsoft, Inc. Watchmouse B.V. - - -07/29/2011 RealPage, Inc. (NasdaqGS:RP) Senior-Living.com, Inc. $1.0 $14.8 14.8x07/28/2011 Arbitron Inc. (NYSE:ARB) Arbitron Mobile - $23.7 -07/28/2011 Oracle Corporation (NasdaqGS:ORCL) InQuira, Inc. $45.0 $230.0 5.1x07/26/2011 ACI Worldwide, Inc. (NasdaqGS:ACIW) S1 Corporation (NasdaqGS:SONE) $227.3 $436.0 1.9x07/26/2011 Amazon.com Inc. (NasdaqGS:AMZN) Push Button Holdings Ltd. - - -07/26/2011 CCH Incorporated SpeedTax, Inc. - - -07/26/2011 IHS Inc. (NYSE:IHS) Seismic Micro-Technology, Inc. - $500.0 -07/26/2011 Retalix Ltd. (TASE:RTLX) MTXEPS, Inc. - $25.0 -07/25/2011 QUALCOMM Incorporated (NasdaqGS:QCOM) GestureTek, Inc., Certain Assets - - -07/22/2011 Google Inc. (NasdaqGS:GOOG) Pittsburgh Pattern Recognition - - -07/21/2011 Acer Inc. (TSEC:2353) iGware Inc. - $395.0 -07/21/2011 Oracle Corporation (NasdaqGS:ORCL) Ksplice, Inc. - - -07/20/2011 Google Inc. (NasdaqGS:GOOG) Inflatable Spaces Inc - - -07/19/2011 Autodesk, Inc. (NasdaqGS:ADSK) Code Mine in Stockholm AB - - -07/19/2011 LogMeIn, Inc. (NasdaqGS:LOGM) Connected Environments Ltd. - $15.2 -07/19/2011 Neowiz Corp. (KOSE:A042420) NEOWIZ Games Corporation (KOSE:A095660) $481.6 $1,191.0 2.5x07/19/2011 Quepasa Corp. (AMEX:QPSA) Insider Guides, Inc. $23.7 $100.0 4.2x07/19/2011 Riverbed Technology, Inc. (NasdaqGS:RVBD) Zeus Technology Limited - $140.0 7.5x07/18/2011 3D Systems Corp. (NYSE:DDD) Alibre, Inc. - $3.7 -07/18/2011 Move, Inc. (NasdaqGS:MOVE) SocialBios.com - - -07/17/2011 Adobe Systems Inc. (NasdaqGS:ADBE) EchoSign, Inc. - - -07/17/2011 Groupon, Inc. Zappedy, Inc - - -
Acquirer TargetTarget TTM Revenue
($mm)Implied Enterprise
Value ($mm)
07/14/2011 Mail.ru Group (LSE:MAIL) VKontakte Ltd $93.8 $1,501.3 16.0x07/14/2011 Nuance Communications, Inc. (NasdaqGS:NUAN) Webmedx, Inc. - - -07/13/2011 Open Text Corp. (NasdaqGS:OTEX) Global 360, Inc. $90.0 $260.0 2.9x07/12/2011 Citrix Systems, Inc. (NasdaqGS:CTXS) Cloud.com, Inc. - $250.0 -07/11/2011 Cadence Design Systems Inc. (NasdaqGS:CDNS) Azuro, Inc. - - -07/11/2011 Electronic Arts Inc. (NasdaqGS:ERTS) PopCap Games, Inc. - $1,250.0 7.5x07/11/2011 Google Inc. (NasdaqGS:GOOG) Punchd Labs Inc - - -07/11/2011 Internet Brands, Inc. eHarmony, Inc., Weddingbee.com and - - -07/11/2011 j2 Global Communications, Inc. (NasdaqGS:JCOM) DataHaven Ltd. - - -07/11/2011 Riverbed Technology, Inc. (NasdaqGS:RVBD) Aptimize Limited - $20.0 -07/11/2011 Shanda Games International (Pte) Ltd. Gamonster Inc. - - -07/08/2011 Local.com Corp. (NasdaqCM:LOCM) Screamin Media Group, Inc. $2.4 $32.8 13.7x07/08/2011 Zynga, Inc. Zynga Toronto, Inc. - - -07/07/2011 BMC Software Inc. (NasdaqGS:BMC) BMC Mobility for IT Service Management - - -07/07/2011 PayPal, Inc. Zong, Inc. - $240.0 -07/07/2011 SumTotal Systems, Inc. CyberShift, Inc. - - -07/06/2011 Callidus Software Inc. (NasdaqGM:CALD) iCentera Inc. - - -07/06/2011 Tencent Holdings Ltd. (SEHK:700) Kingsoft Corporation Limited (SEHK:3888) $147.9 $491.2 3.3x07/05/2011 Cap Gemini S.A. (ENXTPA:CAP) AIVE SpA - $62.0 -07/05/2011 DST Health Solutions, Inc. Intellisource Healthcare Solutions, Inc. - - -07/05/2011 Twitter, Inc. BackType, Inc. - - -07/05/2011 Western Union Co. (NYSE:WU) Travelex Global Business Payments, Inc. $227.7 $975.3 4.3x07/01/2011 Compuware Corporation (NasdaqGS:CPWR) dynaTrace software GmbH $26.0 $231.4 9.9x07/01/2011 Sebring Software, Inc. (OTCBB:SMXI) Scalix, Inc. $2.2 $11.7 5.3x
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Category Performance
SEG Software Index
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
SEG Software Index: All Categories
Market Cap EVTTM
Revenue
TTM Gross
Margin
TTM EBITDA Margin
TTM Revenue
Growth EV/ RevenueEV/
EBITDAForward
EV/ RevenueForward
EV/ EBITDA
YoY Stock Market Return
SEG Software Index $1,103.9 $962.9 $353.1 68.1% 20.2% 15.8% 2.5x 12.4x 2.4x 8.8x 24.6% Billing & Service Management $844.4 $790.2 $328.4 51.2% 20.4% 16.8% 1.7x 7.5x 1.6x 7.1x 9.7% Business Intelligence $1,607.3 $1,467.3 $326.9 79.2% 9.2% 26.3% 4.2x 40.5x 3.5x 22.5x 80.9% Content/Document Management $10,205.9 $9,675.7 $2,541.2 70.2% 26.6% 16.4% 3.0x 10.9x 2.5x 8.8x 36.7% Data Management & Integration $4,822.5 $4,421.3 $773.7 74.8% 23.5% 20.8% 3.1x 15.5x 2.9x 12.7x 55.3% Development Tools & Open Source $8,122.4 $7,211.9 $964.9 77.7% 29.3% 24.3% 2.7x 8.7x 2.7x 6.8x 29.4% Education & eLearning $333.5 $332.9 $197.5 80.7% 22.8% 12.5% 3.1x 14.0x 2.8x 11.8x -9.7% Electronic Design Automation $507.1 $486.3 $139.3 81.7% 10.3% 8.8% 1.8x 17.8x 1.6x 6.4x 18.8% Engineering, PLM & CAD/CAM Software $2,468.3 $2,457.5 $626.7 85.3% 20.2% 13.8% 3.3x 14.5x 2.9x 10.6x 15.9% Enterprise Resource Planning $466.7 $590.5 $319.3 61.4% 13.7% 20.6% 1.8x 9.8x 1.6x 7.6x 12.4% Financial Services $1,080.4 $667.8 $259.4 54.5% 20.9% 11.1% 2.4x 10.5x 2.3x 8.5x 24.7% Healthcare $742.6 $787.6 $231.7 63.5% 23.7% 27.3% 3.1x 18.5x 2.5x 10.8x 38.9% IT Conglomerates $154,903.4 $142,446.4 $69,943.0 62.2% 26.0% 11.9% 2.2x 6.4x 2.1x 5.9x 6.2% Mobile Solutions/Content $273.1 $193.3 $120.3 65.4% 9.9% 18.3% 2.0x 17.1x 1.1x 7.1x 2.7% Multimedia, Graphics, Digital Media $503.0 $494.2 $632.7 66.7% 21.1% 17.6% 3.1x 22.3x 2.9x 7.4x 6.7% Networking & Networking Performance Mgmt. $768.3 $653.6 $171.4 79.7% 22.6% 21.2% 4.2x 20.0x 3.7x 12.9x 45.0% Security $890.4 $734.9 $418.8 82.5% 20.9% 12.8% 2.4x 13.3x 2.4x 11.4x 18.7% Storage & Systems Management Software $13,543.2 $12,644.7 $3,314.8 76.4% 23.1% 10.8% 2.7x 10.3x 2.1x 8.1x 29.4% Supply Chain Management & Logistics $399.8 $293.4 $216.7 55.5% 11.0% 10.2% 2.0x 12.2x 1.9x 8.6x 19.0% Vertical - Finance $1,445.7 $1,599.4 $349.9 52.4% 31.7% 15.6% 3.8x 12.5x 3.4x 10.5x 10.0% Vertical - Other $955.0 $958.0 $323.6 56.0% 18.6% 15.5% 3.0x 13.3x 2.8x 11.8x 30.3% Video Games $2,402.5 $2,259.3 $2,158.2 48.9% 7.9% 0.1% 1.0x 8.2x 1.0x 6.7x 35.6% Workforce & Service Management $761.8 $1,072.5 $423.6 62.7% 7.8% 11.9% 2.3x 15.3x 2.1x 9.8x 50.5%
Category Name
TTM Revenue Growth 15.8%TTM EBITDA Growth 22.3%TTM Earnings Growth 24.4%Gross Profit Margin 68.1%EBITDA Margin 20.2%Net Income Margin 9.9%SG&A Expenses as a % of Total Revenue 34.7%R&D Expenses as a % of Total Revenue 13.4%
Current Ratio 2.1Quick Ratio 1.8Cash as Percent of Market Cap 16.1%Avg Days Outstanding: Accounts Receivable 65Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 12.2%Cash from Operations Growth (YoY) 13.1%Cash from Investing Growth (YoY) 2.8%Cash from Financing Growth (YoY) -19.7%Levered FCF Growth (YoY) 2.2%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-3%-2%-1%0%1%2%3%4%5%6%7%8%9%
10%11%12%13%14%
SEG SW Index Software Stock Market Return: Jan - July 2011
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
Growth EV/ RevenueEV/
EBITDAForward
EV/ RevenueForward
EV/ EBITDA
YoY Stock Market Return
Amdocs Limited DOX $5,853.7 $4,719.9 $3,127.7 35.1% 18.9% 6.8% 1.5x 8.0x 1.4x 7.1x 15.4%AsiaInfo Holdings, Inc. ASIA $1,122.1 $827.7 $455.5 44.0% 25.9% 104.5% 1.8x 7.0x 1.7x 6.4x -25.1%CSG Systems International, Inc. CSGS $581.4 $752.6 $652.2 50.7% 21.9% 26.9% 1.2x 5.3x 1.0x 4.3x -5.8%Evolving Systems, Inc. EVOL $77.2 $60.2 $35.1 65.5% 17.9% -10.5% 1.7x 9.6x 1.6x 8.0x 4.1%MIND C.T.I. Ltd. MNDO $47.9 $32.6 $19.0 69.3% 29.9% -0.9% 1.7x 5.7x n/a n/a 32.6%Synchronoss Technologies, Inc. SNCR $1,107.3 $927.8 $201.4 51.8% 14.6% 42.8% 4.6x 31.5x 4.0x 15.0x 50.1%
Median: $844.4 $790.2 $328.4 51.2% 20.4% 16.8% 1.7x 7.5x 1.6x 7.1x 9.7%
TTM Revenue Growth 16.8%TTM EBITDA Growth 3.0%TTM Earnings Growth -0.1%Gross Profit Margin 51.2%EBITDA Margin 20.4%Net Income Margin 14.7%SG&A Expenses as a % of Total Revenue 18.7%R&D Expenses as a % of Total Revenue 13.6%
Current Ratio 2.8Quick Ratio 2.2Cash as Percent of Market Cap 20.4%Avg Days Outstanding: Accounts Receivable 84Avg Days Outstanding: Accounts Payable 30Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 2.4%Cash from Operations Growth (YoY) -25.8%Cash from Investing Growth (YoY) -411.5%Cash from Financing Growth (YoY) 70.9%Levered FCF Growth (YoY) -67.3%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-5%
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5%
10%
15%
20%Billing and Service Management Software Stock Market Return: Jan - July 2011
Billing and Service Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Business Intelligence
Company Name Ticker 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
Actuate Corporation BIRT $279.3 $237.1 $137.9 83.4% 21.4% 15.0% 1.7x 8.0x 1.8x 7.5x 27.5%Informatica Corporation INFA $5,408.4 $4,844.2 $720.0 84.1% 24.7% 27.4% 6.7x 27.3x 5.7x 20.6x 69.7%MicroStrategy Incorporated MSTR $1,706.6 $1,503.4 $513.8 75.1% 7.9% 25.1% 2.9x 36.9x 2.7x 24.0x 92.0%Pegasystems Inc. PEGA $1,508.1 $1,431.2 $385.1 60.7% 6.7% 30.5% 3.7x 55.5x 3.1x 21.2x 31.2%PROS Holdings PRO $437.0 $375.2 $81.1 74.5% 10.5% 18.2% 4.6x 44.1x 3.8x 23.8x 130.8%Qlik Technologies QLIK $2,443.8 $2,269.3 $268.7 88.9% 5.3% 39.2% 8.4x 159.9x 6.3x 46.1x 110.9%
Median: $1,607.3 $1,467.3 $326.9 79.2% 9.2% 26.3% 4.2x 40.5x 3.5x 22.5x 80.9%
TTM Revenue Growth 26.3%TTM EBITDA Growth 37.1%TTM Earnings Growth -31.8%Gross Profit Margin 79.2%EBITDA Margin 9.2%Net Income Margin 5.7%SG&A Expenses as a % of Total Revenue 43.7%R&D Expenses as a % of Total Revenue 16.6%
Current Ratio 1.7Quick Ratio 1.6Cash as Percent of Market Cap 11.3%Avg Days Outstanding: Accounts Receivable 72Avg Days Outstanding: Accounts Payable 30Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 3.8%Cash from Operations Growth (YoY) 6.4%Cash from Investing Growth (YoY) 5.1%Cash from Financing Growth (YoY) -56.6%Levered FCF Growth (YoY) -26.7%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-10%
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15%
20%
25%
30%
35%
40%Business Intelligence Software Stock Market Return: Jan - July 2011
Business Intelligence S&P NASDAQ SEG SW Index
SEG Software Index Category: Content and Document Management
Company Name Ticker 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
Adobe Systems Incorporated ADBE $13,685.1 $12,578.0 $4,049.2 89.5% 35.8% 24.3% 3.1x 8.7x 2.9x 6.8x -3.5%Autonomy Corp. LSE:AU. $6,726.7 $6,773.4 $931.1 87.3% 44.1% 12.2% 7.3x 16.5x n/a n/a 7.2%EasyLink Services International ESIC $161.1 $250.2 $137.9 66.8% 24.6% 67.8% 1.8x 7.4x 1.2x n/a 126.5%EMC EMC $53,661.4 $52,666.3 $18,553.9 59.8% 22.4% 19.5% 2.8x 12.7x 2.5x 8.9x 31.8%IBM IBM $217,179.5 $235,244.5 $104,562.0 46.4% 24.7% 7.4% 2.2x 9.1x 2.1x 8.7x 41.6%Open Text Corporation OTEX $3,866.9 $3,927.8 $1,033.3 73.6% 28.6% 13.3% 3.8x 13.3x 3.4x 11.1x 71.0%
Median: $10,205.9 $9,675.7 $2,541.2 70.2% 26.6% 16.4% 3.0x 10.9x 2.5x 8.8x 36.7%
TTM Revenue Growth 16.4%TTM EBITDA Growth 23.7%TTM Earnings Growth 41.8%Gross Profit Margin 70.2%EBITDA Margin 26.6%Net Income Margin 14.8%SG&A Expenses as a % of Total Revenue 31.7%R&D Expenses as a % of Total Revenue 12.5%
Current Ratio 1.2Quick Ratio 1.0Cash as Percent of Market Cap 10.4%Avg Days Outstanding: Accounts Receivable 50Avg Days Outstanding: Accounts Payable 48Working Capital to TTM Operating Expense Ratio 0.1
Levered FCF Margin 12.9%Cash from Operations Growth (YoY) 20.8%Cash from Investing Growth (YoY) -95.9%Cash from Financing Growth (YoY) -53.1%Levered FCF Growth (YoY) -8.7%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
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25%
Content and Document Management Software Stock Market Return: Jan - July 2011
Content and Document Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Data Management and Integration
Company Name Ticker 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
Guidance Software, Inc. GUID $190.4 $165.4 $97.3 70.5% -0.5% 18.8% 1.7x n/a 1.6x 157.2x 57.7%IBM IBM $217,179.5 $235,244.5 $104,562.0 46.4% 24.7% 7.4% 2.2x 9.1x 2.1x 8.7x 41.6%Informatica Corporation INFA $5,408.4 $4,844.2 $720.0 84.1% 24.7% 27.4% 6.7x 27.3x 5.7x 20.6x 69.7%Oracle Corporation ORCL $154,903.4 $142,446.4 $35,622.0 76.4% 40.8% 32.8% 4.0x 9.8x 3.6x 7.3x 29.4%Pervasive Software Inc. PVSW $116.7 $78.2 $48.4 86.7% 10.5% 2.5% 1.6x 15.5x 1.5x 10.9x 52.9%TIBCO Software Inc. TIBX $4,236.5 $3,998.4 $827.5 73.1% 22.3% 22.7% 4.8x 21.7x 4.2x 14.6x 92.0%
Median: $4,822.5 $4,421.3 $773.7 74.8% 23.5% 20.8% 3.1x 15.5x 2.9x 12.7x 55.3%
TTM Revenue Growth 20.8%TTM EBITDA Growth 26.6%TTM Earnings Growth 20.6%Gross Profit Margin 74.8%EBITDA Margin 23.5%Net Income Margin 12.9%SG&A Expenses as a % of Total Revenue 41.0%R&D Expenses as a % of Total Revenue 16.5%
Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 12.5%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 13.0%Cash from Operations Growth (YoY) 10.9%Cash from Investing Growth (YoY) 3.0%Cash from Financing Growth (YoY) 7.1%Levered FCF Growth (YoY) 5.0%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-5%
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30%Data Management and Integration Software Stock Market Return: Jan - July 2011
Data Management and Integration S&P NASDAQ SEG SW Index
SEG Software Index Category: Development Tools and Open Source
Company Name Ticker 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
Adobe Systems Incorporated ADBE $13,685.1 $12,578.0 $4,049.2 89.5% 35.8% 24.3% 3.1x 8.7x 2.9x 6.8x -3.5%BSQUARE Corporation BSQR $66.1 $45.7 $102.4 21.4% 4.3% 35.7% 0.4x 10.5x n/a n/a 96.8%Magic Software Enterprises Ltd. MGIC $187.7 $139.2 $100.3 41.1% 16.6% 45.0% 1.4x 8.4x 1.2x n/a 106.8%Microsoft Corporation MSFT $229,564.5 $191,331.5 $69,943.0 77.7% 42.9% 11.9% 2.7x 6.4x 2.6x 5.9x 6.2%Oracle Corporation ORCL $154,903.4 $142,446.4 $35,622.0 76.4% 40.8% 32.8% 4.0x 9.8x 3.6x 7.3x 29.4%Progress Software Corporation PRGS $1,611.2 $1,222.7 $542.8 84.8% 29.3% 6.1% 2.3x 7.7x 2.1x 6.5x 20.9%Red Hat, Inc. RHT $8,122.4 $7,211.9 $964.9 83.5% 21.3% 23.2% 7.5x 35.0x 6.4x 21.5x 30.9%
Median: $8,122.4 $7,211.9 $964.9 77.7% 29.3% 24.3% 2.7x 8.7x 2.7x 6.8x 29.4%
TTM Revenue Growth 24.3%TTM EBITDA Growth 33.3%TTM Earnings Growth 53.7%Gross Profit Margin 77.7%EBITDA Margin 29.3%Net Income Margin 12.5%SG&A Expenses as a % of Total Revenue 26.4%R&D Expenses as a % of Total Revenue 12.8%
Current Ratio 2.7Quick Ratio 2.5Cash as Percent of Market Cap 20.8%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 32Working Capital to TTM Operating Expense Ratio 0.7
Levered FCF Margin 18.4%Cash from Operations Growth (YoY) 27.5%Cash from Investing Growth (YoY) 0.5%Cash from Financing Growth (YoY) 37.0%Levered FCF Growth (YoY) -0.7%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-15%
-10%
-5%
0%
5%
10%
15%Development Tools and Open Source Software Stock Market Return: Jan - July 2011
Development Tools and Open Source S&P NASDAQ SEG SW Index
SEG Software Index Category: Education and eLearning
Company Name Ticker 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
Archipelago Learning, Inc. ARCL $253.8 $298.2 $68.1 90.9% 31.3% 39.8% 4.4x 14.0x 4.0x 18.8x -11.9%Blackboard Inc. BBBB $1,529.4 $1,640.5 $481.4 68.7% 16.4% 18.2% 3.4x 20.7x 3.0x 11.8x 14.7%Renaissance Learning, Inc. RLRN $377.0 $367.7 $136.1 79.1% 29.1% 6.8% 2.7x 9.3x 2.6x 8.6x -7.6%Rosetta Stone, Inc. RST $290.0 $169.2 $258.9 82.3% -4.3% -3.8% 0.7x n/a 0.6x n/a -35.6%
Median: $333.5 $332.9 $197.5 80.7% 22.8% 12.5% 3.1x 14.0x 2.8x 11.8x -9.7%
TTM Revenue Growth 12.5%TTM EBITDA Growth -1.9%TTM Earnings Growth -44.4%Gross Profit Margin 80.7%EBITDA Margin 22.8%Net Income Margin 3.2%SG&A Expenses as a % of Total Revenue 51.6%R&D Expenses as a % of Total Revenue 10.9%
Current Ratio 0.8Quick Ratio 0.7Cash as Percent of Market Cap 9.9%Avg Days Outstanding: Accounts Receivable 59Avg Days Outstanding: Accounts Payable 51Working Capital to TTM Operating Expense Ratio -0.2
Levered FCF Margin 17.4%Cash from Operations Growth (YoY) -7.1%Cash from Investing Growth (YoY) -42.0%Cash from Financing Growth (YoY) -53.4%Levered FCF Growth (YoY) -2.3%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-20%
-15%
-10%
-5%
0%
5%
10%
15%Education and eLearning Software Stock Market Return: Jan - July 2011
Education & eLearning S&P NASDAQ SEG SW Index
SEG Software Index Category: Electronic Design Automation
Company Name Ticker 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
Cadence Design Systems, Inc. SCIL $55.0 $42.6 $42.8 75.2% -6.0% -27.9% 1.0x n/a 0.9x n/a -43.9%Magma Design Automation, Inc. LAVA $507.1 $486.3 $139.3 86.0% 10.3% 13.2% 3.5x 33.9x 3.1x 10.8x 129.6%Mentor Graphics Corporation MENT $1,269.6 $1,372.9 $964.2 85.7% 15.5% 22.1% 1.4x 9.2x 1.4x 6.7x 18.8%PDF Solutions, Inc. PDFS $168.6 $129.3 $63.2 61.1% 7.7% 6.7% 2.0x 26.5x 1.6x 5.8x 46.3%Synopsys, Inc. SNPS $3,515.9 $2,675.4 $1,470.7 81.7% 20.1% 8.8% 1.8x 9.1x 1.7x 6.2x 9.8%
Median: $507.1 $486.3 $139.3 81.7% 10.3% 8.8% 1.8x 17.8x 1.6x 6.4x 18.8%
TTM Revenue Growth 8.8%TTM EBITDA Growth 124.5%TTM Earnings Growth 2.2%Gross Profit Margin 81.7%EBITDA Margin 10.3%Net Income Margin -0.3%SG&A Expenses as a % of Total Revenue 43.9%R&D Expenses as a % of Total Revenue 30.1%
Current Ratio 1.5Quick Ratio 1.4Cash as Percent of Market Cap 15.7%Avg Days Outstanding: Accounts Receivable 69Avg Days Outstanding: Accounts Payable 20Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin 10.8%Cash from Operations Growth (YoY) -15.3%Cash from Investing Growth (YoY) 33.3%Cash from Financing Growth (YoY) -75.5%Levered FCF Growth (YoY) 4.1%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%Electronic Design Automation Software Stock Market Return: Jan - July 2011
Electronic Design Automation S&P NASDAQ SEG SW Index
SEG Software Index Category: Engineering, PLM & CAD/CAM
Company Name Ticker Market Cap EV
TTM Revenue
TTM Gross
Margin
TTM EBITDA Margin
TTM Revenue
Growth EV/ RevenueEV/
EBITDAForward
EV/ Revenue
Forward EV/
EBITDA
YoY Stock Market Return
ANSYS, Inc. ANSS $4,645.5 $4,249.2 $626.7 88.0% 49.1% 13.5% 6.8x 13.8x 6.2x 12.1x 12.6%Autodesk, Inc. ADSK $7,944.8 $6,595.0 $2,005.5 90.0% 20.2% 13.8% 3.3x 16.2x 2.9x 10.6x 16.5%Cimatron Ltd. CIMT $31.7 $19.3 $38.6 85.3% 12.3% 16.0% 0.5x 4.1x n/a n/a 143.6%Dassault Systèmes DSY $10,789.7 $9,390.8 $2,474.6 86.0% 30.0% 28.3% 3.8x 12.7x n/a n/a 36.1%GSE Systems Inc. GVP $42.3 $22.9 $47.8 24.2% -1.5% 8.0% 0.5x n/a 0.4x n/a -45.4%Parametric Technology Corporation PMTC $2,468.3 $2,457.5 $1,095.6 69.4% 14.9% 10.9% 2.2x 15.1x 1.9x 8.8x 15.9%Stratasys, Inc. SSYS $538.8 $523.3 $135.9 51.4% 24.3% 25.1% 3.9x 15.9x 3.1x n/a 12.3%
Median: $2,468.3 $2,457.5 $626.7 85.3% 20.2% 13.8% 3.3x 14.5x 2.9x 10.6x 15.9%
TTM Revenue Growth 13.8%TTM EBITDA Growth 42.1%TTM Earnings Growth 53.8%Gross Profit Margin 85.3%EBITDA Margin 20.2%Net Income Margin 12.1%SG&A Expenses as a % of Total Revenue 38.8%R&D Expenses as a % of Total Revenue 17.4%
Current Ratio 2.1Quick Ratio 2.0Cash as Percent of Market Cap 16.8%Avg Days Outstanding: Accounts Receivable 86Avg Days Outstanding: Accounts Payable 65Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 12.9%Cash from Operations Growth (YoY) 13.0%Cash from Investing Growth (YoY) -111.2%Cash from Financing Growth (YoY) -67.5%Levered FCF Growth (YoY) 18.8%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-10%
-5%
0%
5%
10%
15%Engineering, PLM & CAD/CAM Software Stock Market Return: Jan - July 2011
Engineering, PLM & CAD/CAM S&P NASDAQ SEG SW Index
SEG Software Index Category: Enterprise Resource Planning
Company Name Ticker 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
CDC Software Corporation CDCS $117.3 $83.0 $214.7 54.8% 13.7% 5.2% 0.4x 2.8x 0.4x 2.6x -39.2%Deltek PROJ $466.7 $590.5 $319.3 61.4% 8.3% 21.5% 1.8x 22.2x 1.6x 8.0x -4.5%Oracle Corporation ORCL $154,903.4 $142,446.4 $35,622.0 76.4% 40.8% 32.8% 4.0x 9.8x 3.6x 7.3x 29.4%QAD Inc. QADA $169.5 $112.4 $228.6 57.4% 7.7% 8.3% 0.5x 6.4x 0.5x n/a n/aSAP SAP $74,319.9 $74,206.2 $19,433.8 70.2% 35.7% 20.6% 3.8x 10.7x 3.5x 9.2x 36.4%
Median: $466.7 $590.5 $319.3 61.4% 13.7% 20.6% 1.8x 9.8x 1.6x 7.6x 12.4%
TTM Revenue Growth 20.6%TTM EBITDA Growth 19.5%TTM Earnings Growth 26.4%Gross Profit Margin 61.4%EBITDA Margin 13.7%Net Income Margin 5.6%SG&A Expenses as a % of Total Revenue 34.0%R&D Expenses as a % of Total Revenue 14.4%
Current Ratio 1.1Quick Ratio 1.0Cash as Percent of Market Cap 16.4%Avg Days Outstanding: Accounts Receivable 77Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.1
Levered FCF Margin 18.4%Cash from Operations Growth (YoY) 3.4%Cash from Investing Growth (YoY) -70.6%Cash from Financing Growth (YoY) 63.0%Levered FCF Growth (YoY) 9.0%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%Enterprise Resource Planning Software Stock Market Return: Jan - July 2011
Enterprise Resource Planning S&P NASDAQ SEG SW Index
SEG Software Index Category: Financial Services
Company Name Ticker 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
ACI Worldwide, Inc. ACIW $1,210.2 $1,114.4 $456.2 70.3% 20.9% 11.1% 2.4x 11.7x 2.3x 9.9x 86.4%Bottomline Technologies EPAY $792.6 $645.1 $189.4 54.5% 13.9% 19.9% 3.4x 24.5x 3.0x 13.6x 64.4%DST Systems, Inc. DST $2,378.5 $3,070.9 $2,321.8 19.6% 17.0% 1.7% 1.3x 7.8x 1.6x 5.8x 24.6%EPIQ Systems, Inc. EPIQ $457.4 $652.0 $259.4 59.9% 24.0% 11.2% 2.5x 10.5x 2.0x 7.2x -0.8%Fair Isaac Corporation FICO $1,185.0 $1,446.7 $614.5 69.7% 25.0% 2.0% 2.4x 9.4x 2.3x 8.5x 24.7%Fiserv FISV $8,668.4 $11,646.4 $4,216.0 41.9% 30.7% 3.2% 2.8x 9.0x 2.6x 8.0x 20.5%Longtop Financial Technologies LFT $1,080.4 $667.8 $229.3 51.9% 2.9% 51.0% 2.9x 101.2x 2.3x n/a n/aNetSol Technologies Inc. NTWK $48.7 $70.7 $40.4 72.6% 41.8% 22.6% 1.8x 4.2x 1.6x n/a 3.7%S1 Corporation SONE $506.5 $446.7 $227.3 46.5% 5.4% 2.1% 2.0x 36.4x 1.9x 15.4x 60.1%
Median: $1,080.4 $667.8 $259.4 54.5% 20.9% 11.1% 2.4x 10.5x 2.3x 8.5x 24.7%
TTM Revenue Growth 11.1%TTM EBITDA Growth 2.4%TTM Earnings Growth -7.1%Gross Profit Margin 54.5%EBITDA Margin 20.9%Net Income Margin 10.4%SG&A Expenses as a % of Total Revenue 28.8%R&D Expenses as a % of Total Revenue 11.0%
Current Ratio 2.2Quick Ratio 1.9Cash as Percent of Market Cap 14.1%Avg Days Outstanding: Accounts Receivable 78Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 9.4%Cash from Operations Growth (YoY) 24.0%Cash from Investing Growth (YoY) 17.2%Cash from Financing Growth (YoY) 43.6%Levered FCF Growth (YoY) 24.4%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-10%
-5%
0%
5%
10%
15%
Financial Services Software Stock Market Return: Jan - July 2011
Financial Services Software S&P NASDAQ SEG SW Index
SEG Software Index Category: Healthcare
Company Name Ticker Market Cap EVTTM
Revenue
TTM Gross
Margin
TTM EBITDA Margin
TTM Revenue
Growth EV/ RevenueEV/
EBITDAForward
EV/ RevenueForward
EV/ EBITDA
YoY Stock Market Return
Accelrys Inc. ACCL $403.3 $290.1 $114.8 71.0% -7.0% n/a 2.5x n/a 1.9x 8.7x 3.1%Allscripts Healthcare Solutions Inc. MDRX $3,452.6 $3,756.6 $1,240.0 47.4% 17.0% n/a 3.0x 17.8x 2.5x 11.1x 8.7%Cerner Corporation CERN $11,223.5 $10,656.3 $1,978.8 81.6% 26.7% 12.2% 5.4x 20.2x 4.7x 14.8x 71.7%Computer Programs and Sys, Inc. CPSI $812.6 $787.6 $173.2 45.0% 23.7% 27.3% 4.5x 19.2x 4.2x 17.0x 63.3%eResearchTechnology, Inc. ERT $312.5 $302.8 $174.6 42.5% 24.9% 80.3% 1.7x 7.0x 1.6x 5.6x -21.4%MedAssets MDAS $742.6 $1,653.3 $480.7 75.6% 27.6% 31.1% 3.4x 12.4x 2.7x 8.7x -45.9%Merge Healthcare MRGE $428.1 $618.8 $199.6 63.5% 22.6% 134.4% 3.1x 13.7x 2.5x 10.6x 56.8%Omnicell, Inc. OMCL $566.7 $385.4 $231.7 54.8% 7.2% 6.6% 1.7x 23.0x 1.5x 10.8x 38.9%Quality Systems, Inc. QSII $2,673.6 $2,548.4 $370.9 64.8% 30.3% 20.4% 6.9x 22.7x 5.7x 16.7x 66.4%Simulations Plus, Inc. SLP $51.7 $41.8 $11.8 75.9% 32.7% 14.1% 3.5x 10.8x 3.1x 7.5x 38.8%
Median: $742.6 $787.6 $231.7 63.5% 23.7% 27.3% 3.1x 18.5x 2.5x 10.8x 38.9%
Income Statement Analysis (Median) H lth S ft St k M k t R t J J l 2011TTM Revenue Growth 27.3%TTM EBITDA Growth 40.4%TTM Earnings Growth 30.8%Gross Profit Margin 63.5%EBITDA Margin 23.7%Net Income Margin 4.6%SG&A Expenses as a % of Total Revenue 32.9%R&D Expenses as a % of Total Revenue 7.8%
Current Ratio 2.5Quick Ratio 2.1Cash as Percent of Market Cap 8.2%Avg Days Outstanding: Accounts Receivable 78Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 10.8%Cash from Operations Growth (YoY) 23.2%Cash from Investing Growth (YoY) -11.6%Cash from Financing Growth (YoY) -49.2%Levered FCF Growth (YoY) 2.3%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-10%
-5%
0%
5%
10%
15%
20%Healthcare Software Stock Market Return: Jan - July 2011
Healthcare S&P NASDAQ SEG SW Index
SEG Software Index Category: IT Conglomerates
Company Name Ticker Market Cap EVTTM
Revenue
TTM Gross
Margin
TTM EBITDA Margin
TTM Revenue
Growth EV/ RevenueEV/
EBITDAForward
EV/ RevenueForward
EV/ EBITDA
YoY Stock Market Return
Cisco Systems, Inc. CSCO $87,838.0 $61,263.0 $42,859.0 62.2% 26.0% 13.6% 1.4x 5.5x 1.4x 4.5x -30.8%Hewlett Packard HPQ $72,948.1 $83,563.1 $127,941.0 24.4% 14.3% 6.3% 0.7x 4.6x 0.6x 4.5x -23.6%IBM IBM $217,179.5 $235,244.5 $104,562.0 46.4% 24.7% 7.4% 2.2x 9.1x 2.1x 8.7x 41.6%Microsoft Corporation MSFT $229,564.5 $191,331.5 $69,943.0 77.7% 42.9% 11.9% 2.7x 6.4x 2.6x 5.9x 6.2%Oracle Corporation ORCL $154,903.4 $142,446.4 $35,622.0 76.4% 40.8% 32.8% 4.0x 9.8x 3.6x 7.3x 29.4%
Median: $154,903.4 $142,446.4 $69,943.0 62.2% 26.0% 11.9% 2.2x 6.4x 2.1x 5.9x 6.2%
TTM Revenue Growth 11.9%TTM EBITDA Growth 8.9%TTM Earnings Growth 9.7%Gross Profit Margin 62.2%EBITDA Margin 26.0%Net Income Margin 16.8%SG&A Expenses as a % of Total Revenue 21.5%R&D Expenses as a % of Total Revenue 12.7%
Current Ratio 2.6Quick Ratio 2.3Cash as Percent of Market Cap 18.6%Avg Days Outstanding: Accounts Receivable 53Avg Days Outstanding: Accounts Payable 48Working Capital to TTM Operating Expense Ratio 1.1
Levered FCF Margin 12.4%Cash from Operations Growth (YoY) 12.1%Cash from Investing Growth (YoY) 20.4%Cash from Financing Growth (YoY) -2.7%Levered FCF Growth (YoY) -1.0%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-5%
0%
5%
10%
15%
20%IT Conglomerates Software Stock Market Return: Jan - July 2011
IT Conglomerates S&P NASDAQ SEG SW Index
SEG Software Index Category: Mobile Solutions/Content
Company Name Ticker 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
Access TSE:4813 $299.7 -$2.9 $254.9 68.0% 19.2% -43.8% n/a n/a n/a n/a -44.1%AutoNavi Holdings AMAP $810.6 $640.2 $105.4 69.7% 35.6% n/a 6.1x 17.1x 5.0x 12.9x 13.2%Bitstream Inc. BITS $56.7 $53.3 $26.6 52.7% -13.8% 21.7% 2.0x n/a n/a n/a -22.4%DigitalGlobe, Inc. DGI $1,206.6 $1,389.6 $322.9 85.2% 47.3% 6.6% 4.3x 9.1x 3.9x 6.4x -4.2%Glu Mobile, Inc. GLUU $270.6 $246.2 $65.2 77.6% -3.5% -9.4% 3.8x n/a 3.9x n/a 286.2%Gree TSE:3632 $5,250.1 $4,950.3 $795.8 91.4% 48.8% 82.2% 6.2x 12.7x n/a n/a 39.8%Myriad Group SWX:MYRN $208.9 $172.7 $101.0 66.7% 8.2% -4.2% 1.7x 20.9x n/a n/a -5.8%Motricity MOTR $275.5 $214.0 $140.7 64.1% 14.1% 24.7% 1.5x 10.8x 1.1x 4.0x -25.8%Openwave Systems Inc. OPWV $191.7 $109.5 $155.5 60.3% -9.8% -15.1% 0.7x n/a 0.7x 23.2x 10.8%Opera OB:OPERA $768.6 $677.8 $135.2 43.8% 22.0% 24.4% 5.0x 22.8x n/a n/a 65.7%PCTEL, Inc. PCTI $120.3 $63.6 $73.2 45.1% 1.9% 18.3% 0.9x 46.8x 0.8x 7.6x 2.7%Sky-mobi Limited MOBI $241.9 $162.6 $103.1 31.2% 3.5% 24.1% 1.6x 45.3x 1.1x 6.7x n/aSmith Micro Software, Inc. SMSI $127.7 $63.3 $103.2 85.3% -2.4% -13.1% 0.6x n/a 0.7x n/a -63.8%TeleCommunication Systems, Inc. TSYS $288.1 $376.1 $396.3 36.8% 11.5% 14.5% 0.9x 8.2x 0.8x 5.8x 41.5%Trunkbow International Holdings TBOW $121.9 $100.6 $25.5 79.2% 58.4% 48.6% 3.9x 6.8x n/a n/a n/aVelti Plc VELT $972.1 $929.6 $142.0 60.2% 7.7% 24.5% 6.5x 85.2x 5.0x 16.4x n/a
Median: $273.1 $193.3 $120.3 65.4% 9.9% 18.3% 2.0x 17.1x 1.1x 7.1x 2.7%
TTM Revenue Growth 18.3%TTM EBITDA Growth -1.9%TTM Earnings Growth -5.5%Gross Profit Margin 65.4%EBITDA Margin 9.9%Net Income Margin -2.7%SG&A Expenses as a % of Total Revenue 32.3%R&D Expenses as a % of Total Revenue 20.2%
Current Ratio 2.4Quick Ratio 2.0Cash as Percent of Market Cap 18.4%Avg Days Outstanding: Accounts Receivable 66Avg Days Outstanding: Accounts Payable 60Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 2.1%Cash from Operations Growth (YoY) -20.8%Cash from Investing Growth (YoY) 45.7%Cash from Financing Growth (YoY) -21.3%Levered FCF Growth (YoY) 35.8%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-10%
-5%
0%
5%
10%
15%Mobile Solutions/Content Software Stock Market Return: Jan - July 2011
Mobile Solutions/Content S&P NASDAQ SEG SW Index
SEG Software Index Category: Multimedia, Graphics and Digital Media
Company Name Ticker 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
Adobe Systems Incorporated ADBE $13,685.1 $12,578.0 $4,049.2 89.5% 35.8% 24.3% 3.1x 8.7x 2.9x 6.8x -3.5%Avid Technology, Inc. AVID $503.0 $478.4 $688.1 52.7% 3.1% 6.7% 0.7x 22.3x 0.7x 7.4x 1.2%Monotype Imaging Holdings TYPE $489.9 $494.2 $118.6 92.6% 41.1% 22.2% 4.2x 10.2x 3.9x 8.8x 64.7%Nuance Communications, Inc. NUAN $6,057.2 $6,252.9 $1,261.5 66.7% 21.1% 17.6% 5.0x 23.5x 4.3x 11.0x 21.2%RealNetworks, Inc. RNWK $462.4 $134.5 $355.3 63.2% 0.9% -29.4% 0.4x 42.9x 0.4x 5.1x 1.8%Rovi Corporation ROVI $5,982.2 $6,522.3 $632.7 85.0% 38.6% 22.9% 10.3x 26.7x 7.8x 16.8x 19.0%SeaChange International, Inc. SEAC $307.2 $218.9 $214.2 49.6% 9.8% 3.3% 1.0x 10.4x 0.9x 4.8x 6.7%
Median: $503.0 $494.2 $632.7 66.7% 21.1% 17.6% 3.1x 22.3x 2.9x 7.4x 6.7%
TTM Revenue Growth 17.6%TTM EBITDA Growth 35.9%TTM Earnings Growth 122.0%Gross Profit Margin 66.7%EBITDA Margin 21.1%Net Income Margin 3.6%SG&A Expenses as a % of Total Revenue 39.1%R&D Expenses as a % of Total Revenue 17.3%
Current Ratio 2.0Quick Ratio 1.9Cash as Percent of Market Cap 10.8%Avg Days Outstanding: Accounts Receivable 49Avg Days Outstanding: Accounts Payable 47Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 18.4%Cash from Operations Growth (YoY) 32.2%Cash from Investing Growth (YoY) 63.7%Cash from Financing Growth (YoY) -85.7%Levered FCF Growth (YoY) 43.8%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-15%
-10%
-5%
0%
5%
10%
15%
20%Multimedia, Graphics and Digital Media Software Stock Market Return: Jan - July 2011
Multimedia, Graphics & Digital Media S&P NASDAQ SEG SW Index
SEG Software Index Category: Networking/Network Performance Mgmt
Company Name Ticker 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
Allot Communications Ltd. ALLT $352.8 $291.9 $66.5 71.6% 12.2% 37.2% 4.4x 36.0x 4.0x n/a 206.2%Cisco Systems, Inc. CSCO $87,838.0 $61,263.0 $42,859.0 62.2% 26.0% 13.6% 1.4x 5.5x 1.4x 4.5x -30.8%F5 Networks, Inc. FFIV $7,546.4 $6,961.0 $1,091.5 81.8% 32.0% 36.0% 6.4x 20.0x 5.3x 12.9x 6.4%NetScout Systems Inc. NTCT $651.6 $534.2 $287.0 78.9% 22.6% 6.7% 1.9x 8.2x 1.7x 6.3x -3.8%OPNET Technologies, Inc. OPNT $768.3 $653.6 $157.1 79.9% 18.3% 21.2% 4.2x 22.7x 3.7x 16.9x 125.1%Radware Ltd. RDWR $696.4 $607.7 $155.6 79.7% 13.9% 20.0% 3.9x 28.0x 3.5x n/a 45.0%SolarWinds, Inc. SWI $1,563.2 $1,419.9 $171.4 94.5% 46.9% 26.8% 8.3x 17.7x 7.1x 13.8x 55.6%
Median: $768.3 $653.6 $171.4 79.7% 22.6% 21.2% 4.2x 20.0x 3.7x 12.9x 45.0%
TTM Revenue Growth 21.2%TTM EBITDA Growth 60.5%TTM Earnings Growth 69.1%Gross Profit Margin 79.7%EBITDA Margin 22.6%Net Income Margin 11.3%SG&A Expenses as a % of Total Revenue 41.2%R&D Expenses as a % of Total Revenue 14.7%
Current Ratio 2.6Quick Ratio 2.4Cash as Percent of Market Cap 17.3%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 32Working Capital to TTM Operating Expense Ratio 0.7
Levered FCF Margin 12.4%Cash from Operations Growth (YoY) 17.4%Cash from Investing Growth (YoY) 35.1%Cash from Financing Growth (YoY) -260.1%Levered FCF Growth (YoY) 5.4%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%Networking/Network Performance Mgmt Software Stock Market Return: Jan - July 2011
Networking & Network Performance Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Security
Company Name Ticker 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
Blue Coat Systems, Inc. BCSI $874.7 $576.8 $487.1 78.1% 18.7% -1.8% 1.2x 6.3x 1.2x 6.6x -8.0%Check Point Software Tech Ltd. CHKP $11,967.5 $10,817.0 $1,173.6 88.1% 54.8% 16.0% 9.2x 16.8x 8.3x 13.9x 69.5%Commtouch Software Ltd. CTCH $85.6 $71.2 $21.2 83.0% 21.8% 31.6% 3.4x 15.4x 2.9x n/a 10.6%Sourcefire, Inc. FIRE $694.3 $555.1 $141.4 78.7% 9.1% 18.7% 3.9x 43.0x 3.5x 19.3x 15.2%Symantec Corporation SYMC $14,400.6 $14,182.6 $6,410.0 85.2% 27.1% 7.1% 2.2x 8.2x 2.1x 5.6x 47.0%Trend Micro TSE:4704 $4,140.7 $2,697.3 $1,196.4 81.9% 33.0% 0.1% 2.3x 6.8x n/a n/a 6.4%VASCO Data Security International VDSI $365.4 $280.8 $138.6 65.5% 14.7% 35.0% 2.0x 13.7x 1.8x 15.3x 52.0%Websense, Inc. WBSN $906.1 $892.9 $350.5 83.5% 19.9% 9.5% 2.5x 12.8x 2.4x 8.9x 22.2%
Median: $890.4 $734.9 $418.8 82.5% 20.9% 12.8% 2.4x 13.3x 2.4x 11.4x 18.7%
Income Statement Analysis (Median) Security Software Stock Market Return: Jan - July 2011TTM Revenue Growth 12.8%TTM EBITDA Growth 17.0%TTM Earnings Growth 3.8%Gross Profit Margin 82.5%EBITDA Margin 20.9%Net Income Margin 12.6%SG&A Expenses as a % of Total Revenue 47.5%R&D Expenses as a % of Total Revenue 16.9%
Current Ratio 2.5Quick Ratio 2.4Cash as Percent of Market Cap 17.4%Avg Days Outstanding: Accounts Receivable 52Avg Days Outstanding: Accounts Payable 75Working Capital to TTM Operating Expense Ratio 0.9
Levered FCF Margin 18.5%Cash from Operations Growth (YoY) 14.6%Cash from Investing Growth (YoY) -94.1%Cash from Financing Growth (YoY) 6.2%Levered FCF Growth (YoY) 31.0%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
y ( )
-10%
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0%
5%
10%
15%
20%Security Software Stock Market Return: Jan - July 2011
Security S&P NASDAQ SEG SW Index
SEG Software Index Category: Storage and Systems Management
Company Name Ticker 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
BMC Software, Inc. BMC $7,586.0 $6,325.4 $2,106.8 76.1% 32.1% 9.6% 3.0x 9.3x 2.8x 6.3x 21.5%CA, Inc. CA $11,254.7 $9,705.7 $4,523.0 86.8% 35.2% 6.4% 2.1x 6.1x 2.0x 5.3x 14.0%Citrix Systems CTXS $13,543.2 $12,644.7 $2,023.6 90.3% 25.5% 17.3% 6.2x 24.5x 5.5x 18.7x 30.9%CommVault Systems, Inc. CVLT $1,721.0 $1,502.7 $340.0 87.2% 13.6% 22.7% 4.4x 32.6x 4.1x 22.0x 109.1%Compuware Corporation CPWR $2,110.1 $1,915.2 $952.4 68.1% 20.8% 7.7% 2.0x 9.7x 1.8x 7.5x 18.1%EMC EMC $53,661.4 $52,666.3 $18,553.9 59.8% 22.4% 19.5% 2.8x 12.7x 2.5x 8.9x 31.8%FalconStor Software, Inc. FALC $200.4 $158.5 $84.0 73.1% -8.3% 3.3% 1.9x n/a 1.8x n/a 40.1%IBM IBM $217,179.5 $235,244.5 $104,562.0 46.4% 24.7% 7.4% 2.2x 9.1x 2.1x 8.7x 41.6%Network Appliance, Inc. NTAP $17,696.0 $13,786.3 $5,122.6 65.0% 18.7% 30.3% 2.7x 14.4x 2.0x 9.8x 12.3%Oracle Corporation ORCL $154,903.4 $142,446.4 $35,622.0 76.4% 40.8% 32.8% 4.0x 9.8x 3.6x 7.3x 29.4%Quest Software, Inc. QSFT $1,699.4 $1,375.3 $801.0 88.8% 15.8% 10.8% 1.7x 10.9x 1.6x 6.3x -5.9%Symantec Corporation SYMC $14,400.6 $14,182.6 $6,410.0 85.2% 27.1% 7.1% 2.2x 8.2x 2.1x 5.6x 47.0%VMWare VMW $42,302.1 $39,049.0 $3,314.8 82.8% 23.1% 37.8% 11.8x 51.0x 9.6x 25.9x 29.4%
Median: $13,543.2 $12,644.7 $3,314.8 76.4% 23.1% 10.8% 2.7x 10.3x 2.1x 8.1x 29.4%
TTM Revenue Growth 10.8%TTM EBITDA Growth 28.3%TTM Earnings Growth 26.1%Gross Profit Margin 76.4%EBITDA Margin 23.1%Net Income Margin 11.7%SG&A Expenses as a % of Total Revenue 40.8%R&D Expenses as a % of Total Revenue 11.6%
Current Ratio 1.4Quick Ratio 1.2Cash as Percent of Market Cap 14.8%Avg Days Outstanding: Accounts Receivable 73Avg Days Outstanding: Accounts Payable 37Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 13.1%Cash from Operations Growth (YoY) 14.1%Cash from Investing Growth (YoY) 20.4%Cash from Financing Growth (YoY) 6.5%Levered FCF Growth (YoY) 1.7%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-5%
0%
5%
10%
15%
20%Storage and Systems Management Software Stock Market Return: Jan - July 2011
Storage and Systems Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Supply Chain Management & Logistics
Company Name Ticker 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
American Software, Inc. AMSW.A $224.3 $179.8 $85.6 53.0% 13.4% 13.7% 2.1x 15.7x 1.9x n/a 70.5%Ariba, Inc. ARBA $3,068.4 $2,857.8 $446.7 63.5% 7.2% 39.7% 6.4x 88.5x 5.7x 24.2x 107.1%Aspen Technology, Inc. AZPN $1,458.8 $1,363.2 $183.8 70.2% -37.0% -7.8% 7.4x n/a 6.2x n/a 41.8%CDC Software Corporation CDCS $117.3 $83.0 $214.7 54.8% 13.7% 5.2% 0.4x 2.8x 0.4x 2.6x -39.2%JDA Software Group JDAS $1,183.0 $1,199.8 $653.2 58.5% 24.3% 32.5% 1.8x 7.5x 1.7x 6.1x 19.0%Manhattan Associates, Inc. MANH $789.1 $679.7 $305.6 56.3% 17.3% 9.5% 2.2x 12.9x 2.0x 9.0x 38.9%ModusLink Global Solutions, Inc. MLNK $181.7 $62.5 $905.8 10.4% 2.6% -1.7% 0.1x 2.7x n/a n/a -36.1%Retalix Ltd. RTLX $370.6 $233.5 $218.7 41.3% 8.6% 10.9% 1.1x 12.4x 1.0x 8.2x n/aThe Descartes Systems Group Inc. TSX:DSG $429.0 $353.3 $105.0 66.3% 27.7% 35.2% 3.4x 12.2x 3.0x 10.5x 17.4%XATA Corporation XATA $19.7 $51.2 $64.8 51.2% 7.3% -7.1% 0.8x 10.8x n/a n/a -30.0%
Median: $399.8 $293.4 $216.7 55.5% 11.0% 10.2% 2.0x 12.2x 1.9x 8.6x 19.0%
TTM Revenue Growth 10.2%TTM EBITDA Growth 15.1%TTM Earnings Growth 34.1%Gross Profit Margin 55.5%EBITDA Margin 11.0%Net Income Margin 8.1%SG&A Expenses as a % of Total Revenue 34.1%R&D Expenses as a % of Total Revenue 13.3%
Current Ratio 2.1Quick Ratio 1.6Cash as Percent of Market Cap 17.9%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 27Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 10.9%Cash from Operations Growth (YoY) 18.4%Cash from Investing Growth (YoY) -27.9%Cash from Financing Growth (YoY) -100.5%Levered FCF Growth (YoY) -5.9%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%Supply Chain Management & Logistics Software Stock Market Return: Jan - July 2011
Supply Chain Management and Logistics S&P NASDAQ SEG SW Index
SEG Software Index Category: Vertical - Finance
Company Name Ticker 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
Advent Software, Inc. ADVS $1,217.8 $1,139.3 $302.9 71.9% 20.8% 13.9% 3.8x 18.1x 3.4x 12.0x -9.4%Fundtech Ltd. FNDT $288.0 $207.0 $151.4 52.4% 13.1% 15.1% 1.4x 10.4x 1.3x 7.6x 57.5%Jack Henry & Associates, Inc. JKHY $2,499.2 $2,688.5 $966.9 41.3% 31.7% 15.6% 2.8x 8.8x 2.6x 8.3x 14.0%MSCI, Inc. MSCI $4,263.7 $5,205.1 $662.9 70.0% 44.5% 49.7% 7.9x 17.6x 5.6x 11.9x 10.0%SS&C Corporation SSNC $1,445.7 $1,599.4 $349.9 49.7% 36.6% 16.7% 4.6x 12.5x 4.2x 10.5x 8.3%
Median: $1,445.7 $1,599.4 $349.9 52.4% 31.7% 15.6% 3.8x 12.5x 3.4x 10.5x 10.0%
TTM Revenue Growth 15.6%TTM EBITDA Growth 14.1%TTM Earnings Growth 16.6%Gross Profit Margin 52.4%EBITDA Margin 31.7%Net Income Margin 10.5%SG&A Expenses as a % of Total Revenue 28.3%R&D Expenses as a % of Total Revenue 14.7%
Current Ratio 1.8Quick Ratio 1.5Cash as Percent of Market Cap 17.8%Avg Days Outstanding: Accounts Receivable 61Avg Days Outstanding: Accounts Payable 50Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin 10.0%Cash from Operations Growth (YoY) -0.5%Cash from Investing Growth (YoY) 60.8%Cash from Financing Growth (YoY) -32.0%Levered FCF Growth (YoY) -8.2%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-10%
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0%
5%
10%
15%Vertical - Finance Software Stock Market Return: Jan - July 2011
Vertical - Finance S&P NASDAQ SEG SW Index
SEG Software Index Category: Vertical - Other
Company Name Ticker 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
Blackbaud, Inc. BLKB $1,100.4 $1,076.2 $350.9 58.7% 19.3% 11.4% 3.1x 15.9x 2.8x 11.8x 7.2%Constellation TSX:CSU $1,630.6 $1,658.7 $705.2 56.9% 20.5% 31.2% 2.4x 11.5x 2.2x 10.7x 93.5%Ebix, Inc. EBIX $777.2 $772.1 $150.7 80.4% 44.1% 27.3% 5.1x 11.6x 4.3x 9.3x 18.5%Itron, Inc. ITRI $1,747.3 $2,154.6 $2,370.4 31.3% 14.1% 21.6% 0.9x 6.5x 0.9x 6.4x -33.9%Micros Systems MCRS $3,972.1 $3,229.3 $981.9 55.1% 22.0% 10.5% 3.3x 14.9x 3.0x 12.5x 36.9%PROS Holdings PRO $437.0 $375.2 $81.1 74.5% 10.5% 18.2% 4.6x 44.1x 3.8x 23.8x 130.8%Sapiens International SPNS $81.6 $65.7 $55.4 44.6% 14.0% 12.7% 1.2x 8.5x n/a n/a 23.7%Tyler Technologies, Inc. TYL $809.7 $839.8 $296.3 44.7% 17.9% 1.8% 2.8x 15.8x 2.6x 13.7x 55.1%
Median: $955.0 $958.0 $323.6 56.0% 18.6% 15.5% 3.0x 13.3x 2.8x 11.8x 30.3%
TTM Revenue Growth 15.5%TTM EBITDA Growth 29.0%TTM Earnings Growth 32.8%Gross Profit Margin 56.0%EBITDA Margin 18.6%Net Income Margin 12.9%SG&A Expenses as a % of Total Revenue 25.6%R&D Expenses as a % of Total Revenue 10.7%
Current Ratio 1.4Quick Ratio 1.2Cash as Percent of Market Cap 6.4%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 45Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin 17.2%Cash from Operations Growth (YoY) 6.8%Cash from Investing Growth (YoY) 2.9%Cash from Financing Growth (YoY) 63.0%Levered FCF Growth (YoY) 13.5%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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25%
30%
Vertical - Other Software Stock Market Return: Jan - July 2011
Vertical - Other S&P NASDAQ SEG SW Index
SEG Software Index Category: Video Games
Company Name Ticker 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
Activision Blizzard ATVI $13,546.9 $10,187.9 $4,767.0 57.6% 28.1% 5.1% 2.1x 7.6x 2.5x 6.4x -0.3%Electronic Arts Inc. ERTS $7,372.4 $5,524.4 $3,773.0 59.8% 4.0% -1.4% 1.5x 36.3x 1.3x 9.2x 39.7%Konami Corporation TSE: 9766 $3,635.8 $3,522.4 $3,220.5 28.2% 14.9% 0.1% 1.1x 7.3x 1.0x 6.7x 70.5%Majesco Entertainment Company COOL $100.2 $81.7 $116.1 34.3% 10.4% 43.0% 0.7x 6.7x 0.6x n/a 263.0%TakeTwo Interactive TTWO $1,169.3 $996.2 $1,095.9 40.1% 5.3% n/a 0.9x 17.0x 0.9x 19.7x 31.6%THQ Inc. THQI $182.1 $163.1 $711.0 60.8% 2.6% -11.7% 0.2x 8.9x 0.2x 4.4x -41.6%
Median: $2,402.5 $2,259.3 $2,158.2 48.9% 7.9% 0.1% 1.0x 8.2x 1.0x 6.7x 35.6%
TTM Revenue Growth 0.1%TTM EBITDA Growth 23.3%TTM Earnings Growth 40.4%Gross Profit Margin 48.9%EBITDA Margin 7.9%Net Income Margin 7.3%SG&A Expenses as a % of Total Revenue 21.7%R&D Expenses as a % of Total Revenue 6.4%
Current Ratio 2.3Quick Ratio 1.5Cash as Percent of Market Cap 19.3%Avg Days Outstanding: Accounts Receivable 39Avg Days Outstanding: Accounts Payable 19Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 8.9%Cash from Operations Growth (YoY) -3.0%Cash from Investing Growth (YoY) 75.9%Cash from Financing Growth (YoY) -95.1%Levered FCF Growth (YoY) 53.7%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
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25%
Video Game Software Stock Market Return: Jan - July 2011
Video Games S&P NASDAQ SEG SW Index
SEG Software Index Category: Workforce and Service Management
Company Name Ticker 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
ClickSoftware Technologies Ltd. CKSW $277.5 $221.8 $75.9 62.6% 16.5% 10.3% 2.9x 17.7x 2.5x 11.1x 56.2%Callidus Software, Inc. CALD $172.8 $146.3 $77.7 42.1% -3.7% 17.6% 1.9x n/a 1.8x 21.8x 44.8%NICE Systems Ltd. NICE $2,304.8 $1,950.2 $741.7 61.5% 16.2% 17.4% 2.6x 16.3x 2.3x 9.2x n/aSaba Software SABA $219.6 $194.9 $116.7 63.8% -0.5% 6.5% 1.7x n/a 1.5x n/a 58.0%Verint VRNT $1,304.0 $2,010.1 $730.5 69.0% 19.3% 4.2% 2.8x 14.3x 2.5x 9.8x 50.5%
Median: $761.8 $1,072.5 $423.6 62.7% 7.8% 11.9% 2.3x 15.3x 2.1x 9.8x 50.5%
TTM Revenue Growth 11.9%TTM EBITDA Growth 31.6%TTM Earnings Growth -27.5%Gross Profit Margin 62.7%EBITDA Margin 7.8%Net Income Margin 1.2%SG&A Expenses as a % of Total Revenue 36.7%R&D Expenses as a % of Total Revenue 12.6%
Current Ratio 2.5Quick Ratio 1.5Cash as Percent of Market Cap 21.3%Avg Days Outstanding: Accounts Receivable 56Avg Days Outstanding: Accounts Payable 53Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 20.4%Cash from Operations Growth (YoY) 28.4%Cash from Investing Growth (YoY) -107.7%Cash from Financing Growth (YoY) -98.2%Levered FCF Growth (YoY) 24.1%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-5%
0%
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15%
20%
25%
30%Workforce and Service Mgmt Software Stock Market Return: Jan - July 2011
Workforce and Service Mgmt S&P NASDAQ SEG SW Index
Company Performance
SEG SaaS Index
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
SEG SaaS Index
Company Name Ticker Market Cap EVTTM
Revenue
TTM Gross
Margin
TTM EBITDA Margin
TTM Revenue
Growth EV/ RevenueEV/
EBITDAForward
EV/ RevenueForward
EV/ EBITDA
YoY Stock Market Return
Athenahealth ATHN $2,056.9 $1,952.5 $280.3 62.5% 16.9% 30.5% 7.0x 41.2x 5.3x 25.5x 111.7%Concur CNQR $2,451.9 $2,132.9 $331.8 72.0% 14.7% 18.4% 6.4x 43.8x 5.3x 18.7x -1.8%Constant Contact CTCT $557.8 $438.1 $194.8 71.1% 8.0% 28.2% 2.2x 28.1x 1.9x 10.0x -2.9%Convio CNVO $183.2 $134.4 $73.8 62.5% 8.7% 10.2% 1.8x 21.0x 1.6x 10.9x 26.7%Cornerstone OnDemand CSOD $779.6 $691.6 $56.6 68.9% -28.2% n/a 12.2x n/a 8.8x n/a n/aDealerTrack TRAK $953.5 $896.0 $291.4 47.1% 15.7% 26.3% 3.1x 19.6x 2.7x 13.7x 48.6%DemandTec DMAN $233.1 $167.6 $86.8 64.3% -8.5% 12.0% 1.9x n/a 1.8x 28.3x 6.4%Ellie Mae ELLI $118.7 $186.1 $46.7 71.7% 10.5% n/a 4.0x 38.0x 3.6x 19.0x n/aIntraLinks Holdings IL $798.0 $878.5 $205.7 74.6% 13.9% 30.6% 4.3x 30.6x 3.9x 11.6x n/aKenexa KNXA $675.2 $697.1 $240.8 62.7% 7.3% 46.9% 2.9x 39.6x 2.5x 15.4x 112.6%LivePerson LPSN $648.4 $581.2 $120.4 72.9% 20.5% 21.9% 4.8x 23.5x 4.1x 16.7x 74.9%Medidata Solutions MDSO $495.8 $405.2 $179.4 70.3% 21.4% 19.0% 2.3x 10.5x 2.1x 8.9x 35.5%Netsuite N $2,590.1 $2,469.0 $213.1 69.8% -7.9% 21.1% 11.6x n/a 9.6x 85.3x 164.2%RealPage RP $1,672.4 $1,611.5 $221.3 57.9% 13.1% 38.3% 7.3x 55.4x 5.9x 25.4x n/aResponsys MKTG $683.6 $735.3 $116.9 54.0% 18.5% n/a 6.3x 34.1x 5.6x 34.5x n/aRightNow RNOW $1,121.9 $1,041.0 $207.1 69.9% 10.3% 24.9% 5.0x 48.9x 4.2x 23.4x 114.6%Salesforce.com CRM $19,376.7 $19,140.3 $1,784.7 80.1% 7.8% 29.6% 10.7x 138.0x 8.3x 48.6x 46.2%SciQuest SQI $372.9 $341.6 $47.2 77.0% 15.3% 19.7% 7.2x 47.4x 6.0x 28.2x n/aSoundBite Communications SDBT $39.4 $5.5 $38.6 58.9% -3.9% -5.2% 0.1x n/a 0.1x n/a -15.8%SPS Commerce SPSC $219.6 $189.8 $50.0 72.8% 7.6% 22.5% 3.8x 49.8x 3.0x 29.2x 72.7%SuccessFactors SFSF $2,133.6 $1,766.1 $252.1 68.9% -11.2% 44.0% 7.0x n/a 6.0x 187.4x 32.9%Taleo TLEO $1,359.3 $1,213.6 $273.7 67.3% 13.1% 28.7% 4.4x 33.9x 3.7x 19.0x 34.6%The Ultimate Software Group, Inc. ULTI $1,405.1 $1,357.7 $246.1 56.5% 8.6% 16.8% 5.5x 64.1x 4.6x 23.9x 68.6%Vocus VOCS $561.5 $445.1 $106.2 80.7% 0.9% 19.1% 4.2x 490.7x 3.6x 20.7x 75.4%Zix Corporation ZIXI $254 9 $237 9 $36 1 80 7% 27 2% 31 5% 6 6x 24 2x 5 7x 16 8x 68 4%Zix Corporation ZIXI $254.9 $237.9 $36.1 80.7% 27.2% 31.5% 6.6x 24.2x 5.7x 16.8x 68.4%
Median: $683.6 $697.1 $194.8 69.8% 10.3% 23.7% 4.8x 38.8x 4.1x 20.7x 48.6%
TTM Revenue Growth 23.7%TTM EBITDA Growth 15.3%TTM Earnings Growth 20.0%Gross Profit Margin 69.8%EBITDA Margin 10.3%Net Income Margin 1.5%SG&A Expenses as a % of Total Revenue 44.9%R&D Expenses as a % of Total Revenue 14.6%
Balance Sheet Analysis (Median)Current Ratio 2.0Quick Ratio 1.9Cash as Percent of Market Cap 12.3%Avg Days Outstanding: Accounts Receivable 58Avg Days Outstanding: Accounts Payable 28Working Capital to TTM Operating Expense Ratio 0.4
Cash Flow Statement Analysis (Median)Levered FCF Margin 4.4%Cash from Operations Growth (YoY) 33.4%Cash from Investing Growth (YoY) -142.7%Cash from Financing Growth (YoY) 190.4%Levered FCF Growth (YoY) 8.2%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
August 2011 Monthly Flash Report
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%SEG SaaS Index Software Stock Market Return: Jan - July 2011
SEG SaaS S&P NASDAQ SEG SW Index
Category Performance
SEG Internet Index
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
SEG Internet Index: All Categories
Category Name 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 Internet Index $884.51 $825.48 $342.93 65.2% 16.3% 20.1% 2.6x 14.1x 2.2x 9.5x 27.7% Ad Tech & Lead Generation $454.16 $414.63 $163.98 43.7% 9.8% 24.8% 1.9x 17.1x 1.9x 9.0x 6.9% Infastructure $586.39 $487.50 $222.75 62.7% 15.3% 21.5% 2.4x 13.9x 2.2x 8.1x 32.9% Media $1,960.02 $1,685.73 $437.34 52.6% 17.9% 16.3% 2.6x 12.1x 3.0x 9.0x -5.6% Retail $497.36 $460.69 $336.27 40.5% 9.4% 16.4% 1.6x 14.5x 1.4x 10.4x 45.8% Search $1,990.59 $1,602.49 $522.41 54.9% 11.3% 26.1% 1.4x 12.5x 1.2x 9.3x 27.7% Services $1,151.97 $1,344.86 $306.43 73.1% 17.6% 18.1% 5.2x 26.2x 3.7x 18.0x 56.6% Travel $4,878.20 $4,822.11 $628.99 78.8% 20.6% 25.5% 6.1x 28.4x 5.8x 18.4x 27.1% Video Games $2,712.34 $2,305.88 $582.18 78.2% 49.7% 29.7% 5.6x 10.3x 3.0x 6.3x 31.9%
TTM Revenue Growth 20.1%TTM EBITDA Growth 30.6%TTM Earnings Growth 25.6%Gross Profit Margin 65.2%EBITDA Margin 16.3%Net Income Margin 5.4%SG&A Expenses as a % of Total Revenue 34.5%R&D Expenses as a % of Total Revenue 10.7%
Current Ratio 2.7Quick Ratio 2.2Cash as Percent of Market Cap 14.7%Avg Days Outstanding: Accounts Receivable 33Avg Days Outstanding: Accounts Payable 36Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 7.0%Cash from Operations Growth (YoY) 7.7%Cash from Investing Growth (YoY) -72.8%Cash from Financing Growth (YoY) 22.5%Levered FCF Growth (YoY) 31.0%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%SEG Internet Index Software Stock Market Return: Jan - July 2011
SEG Internet Index S&P NASDAQ SEG SW Index
SEG Internet Index Category: Ad Tech and Lead Generation
Company Name Ticker 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
comScore Inc. SCOR $694.8 $665.4 $207.9 68.4% 4.3% 44.6% 3.2x 73.9x 2.6x 12.3x 10.1%DG FastChannel, Inc. DGIT $774.6 $691.9 $268.4 66.6% 44.9% 24.1% 2.6x 5.7x 2.2x 4.9x -25.9%interCLICK, Inc. ICLK $176.0 $175.2 $118.2 43.0% 9.2% 64.0% 1.5x 16.1x 1.2x 9.0x 84.8%Inuvo, Inc. INUV $16.8 $19.3 $49.3 43.6% 2.2% 25.5% 0.4x 18.1x n/a n/a 1.2%LookSmart, Ltd. LOOK $25.2 $4.1 $36.2 43.7% 10.5% -29.9% 0.1x 1.1x 0.1x 1.0x -2.7%Marchex Inc. MCHX $322.1 $282.1 $120.0 42.0% 1.7% 31.9% 2.4x 140.9x 1.9x 12.9x 86.1%QuinStreet QNST $586.2 $547.2 $403.0 27.5% 18.9% 20.4% 1.4x 7.2x 1.3x 6.2x 3.7%SINA Corporation SINA $7,119.5 $6,315.9 $417.8 57.3% 25.9% 13.0% 15.1x 58.4x 12.6x 85.5x 152.7%ValueClick, Inc. VCLK $1,421.0 $1,221.2 $477.1 71.3% 28.7% 16.1% 2.6x 8.9x 2.3x 7.6x 64.9%
Median: $454.2 $414.6 $164.0 43.7% 9.8% 24.8% 1.9x 17.1x 1.9x 9.0x 6.9%
TTM Revenue Growth 24.8%TTM EBITDA Growth 42.5%TTM Earnings Growth 32.2%Gross Profit Margin 43.7%EBITDA Margin 9.8%Net Income Margin 1.1%SG&A Expenses as a % of Total Revenue 27.8%R&D Expenses as a % of Total Revenue 8.8%
Current Ratio 2.5Quick Ratio 2.4Cash as Percent of Market Cap 10.0%Avg Days Outstanding: Accounts Receivable 66Avg Days Outstanding: Accounts Payable 37Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 14.4%Cash from Operations Growth (YoY) 1.9%Cash from Investing Growth (YoY) -479.8%Cash from Financing Growth (YoY) -79.8%Levered FCF Growth (YoY) 58.6%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-10%
-5%
0%
5%
10%
15%
20%
25%
30%Internet Ad Tech and Lead Generation Software Stock Market Return: Jan - July 2011
Internet Ad Tech and Lead Generation S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Infrastructure
Company Name Ticker Market Cap EVTTM
Revenue
TTM Gross
Margin
TTM EBITDA Margin
TTM Revenue
Growth EV/ RevenueEV/
EBITDAForward
EV/ RevenueForward
EV/ EBITDA
YoY Stock Market Return
8x8, Inc. EGHT $244.0 $225.1 $71.8 67.6% 11.7% 11.1% 3.1x 26.7x 2.8x 18.1x 172.7%Akamai Technologies, Inc. AKAM $4,522.0 $4,024.8 $1,091.2 69.9% 38.6% 17.3% 3.7x 9.6x 3.3x 7.5x -36.9%BroadSoft, Inc. BSFT $778.5 $712.0 $119.9 82.2% 21.5% 59.7% 5.9x 27.7x 5.4x 25.6x 237.7%Cbeyond, Inc. CBEY $351.3 $334.0 $469.3 67.6% 13.0% 7.6% 0.7x 5.5x 0.7x 4.1x -26.3%ChinaCache International CCIH $185.4 $98.6 $70.8 31.2% 9.2% n/a 1.4x 15.1x 1.0x 4.5x n/aDigital River Inc. DRIV $1,011.1 $656.3 $373.4 82.5% 13.9% -3.0% 1.8x 12.6x 1.6x 6.9x -3.0%EarthLink Inc. ELNK $884.5 $931.1 $918.5 57.8% 27.3% 41.5% 1.0x 3.7x 0.7x 2.9x -8.9%Equinix, Inc. EQIX $4,913.7 $6,848.5 $1,433.5 44.9% 40.1% 41.3% 4.8x 11.9x 3.9x 8.7x 11.7%Interactive Intelligence, Inc. ININ $710.7 $641.0 $192.2 68.8% 16.2% 34.5% 3.3x 20.6x 2.8x 15.9x 134.9%Internap Network Services Corp. INAP $315.0 $323.0 $240.1 40.7% 14.5% -4.7% 1.3x 9.3x 1.3x 6.8x 32.9%Keynote Systems Inc. KEYN $394.4 $302.9 $96.0 54.0% 18.2% 21.5% 3.2x 17.3x 2.8x 11.7x 139.3%Limelight Networks, Inc. LLNW $462.1 $329.9 $205.4 54.8% 1.6% 42.2% 1.6x 99.9x 1.4x 10.3x -3.1%Rackspace Hosting RAX $5,171.8 $5,172.8 $891.7 69.1% 28.3% 27.7% 5.8x 20.5x 4.9x 14.4x 113.9%Tucows Inc. TCX $42.8 $39.4 $88.9 24.4% 6.8% 8.2% 0.4x 6.5x 0.4x 5.2x 33.3%VeriSign, Inc. VRSN $5,193.3 $4,383.5 $722.5 77.9% 48.3% 12.6% 6.1x 12.6x 5.4x 10.2x 10.9%
Median: $586.4 $487.5 $222.7 62.7% 15.3% 21.5% 2.4x 13.9x 2.2x 8.1x 32.9%
Income Statement Analysis (Median)TTM Revenue Growth 21.5%TTM EBITDA Growth 19.1%TTM Earnings Growth 50.7%Gross Profit Margin 62.7%EBITDA Margin 15.3%Net Income Margin 5.6%SG&A Expenses as a % of Total Revenue 38.6%R&D Expenses as a % of Total Revenue 7.5%
Current Ratio 2.2Quick Ratio 1.9Cash as Percent of Market Cap 12.7%Avg Days Outstanding: Accounts Receivable 32Avg Days Outstanding: Accounts Payable 34Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 5.2%Cash from Operations Growth (YoY) 5.7%Cash from Investing Growth (YoY) -64.9%Cash from Financing Growth (YoY) -17.9%Levered FCF Growth (YoY) 34.6%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-5%
0%
5%
10%
15%
20%
25%Internet Infrastructure Software Stock Market Return: Jan - July 2011
Internet Infrastructure S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Media
Company Name Ticker 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
AOL, Inc. AOL $1,837.0 $1,553.8 $2,253.8 33.4% 20.5% -21.1% 0.7x 3.4x 0.7x 3.8x -17.9%DemandMedia DMD $843.7 $735.7 $297.9 51.3% 20.6% 34.7% 2.5x 12.0x 2.2x 7.9x n/aeHealth, Inc. EHTH $277.0 $141.1 $161.9 81.8% 21.3% 14.2% 0.9x 4.1x 0.9x 6.4x 16.7%Google, Inc. GOOG $194,924.1 $161,943.1 $33,328.0 65.2% 38.4% 27.1% 4.9x 12.7x 3.9x 9.3x 24.5%Local.com Corp. LOCM $73.8 $53.6 $74.9 40.8% 1.0% 2.4% 0.7x 74.7x 0.6x n/a -44.6%Monster Worldwide, Inc. MWW $1,442.0 $1,365.1 $1,015.0 49.4% 11.0% 18.3% 1.3x 12.2x 1.2x 5.7x -14.4%Netflix NFLX $13,974.1 $13,832.8 $2,656.3 37.4% 15.2% 41.2% 5.2x 34.3x 3.5x 23.7x 159.4%Pandora P $2,410.3 $2,374.0 $167.2 40.5% -0.3% n/a 14.2x n/a 7.9x n/a n/aSohu.com Inc. SOHU $3,450.2 $2,836.6 $710.3 73.6% 41.1% 29.6% 4.0x 9.7x 3.4x 9.8x 91.6%TheStreet.com, Inc. TST $90.3 $38.4 $58.2 53.9% -7.9% -2.9% 0.7x n/a n/a n/a -7.5%WebMD Health Corp. WBMD $2,083.0 $1,817.6 $576.8 65.5% 26.1% 20.1% 3.2x 12.1x 3.0x 8.7x -23.8%XO Group XOXO $295.3 $194.4 $117.1 80.1% 11.5% 5.2% 1.7x 14.4x 1.6x 11.2x 13.6%Yahoo! Inc. YHOO $17,068.5 $14,691.1 $5,569.7 64.3% 25.7% -14.4% 2.6x 10.3x 3.2x 9.5x -5.6%Youku YOKU $4,199.0 $3,940.4 $91.7 32.2% 3.5% n/a 43.0x 1225.1x 27.3x n/a n/a
Median: $1,960.0 $1,685.7 $437.3 52.6% 17.9% 16.3% 2.6x 12.1x 3.0x 9.0x -5.6%
TTM Revenue Growth 16.3%TTM EBITDA Growth 28.1%TTM Earnings Growth 33.0%Gross Profit Margin 52.6%EBITDA Margin 17.9%Net Income Margin 6.1%SG&A Expenses as a % of Total Revenue 34.5%R&D Expenses as a % of Total Revenue 10.9%
Current Ratio 2.7Quick Ratio 2.5Cash as Percent of Market Cap 19.2%Avg Days Outstanding: Accounts Receivable 46Avg Days Outstanding: Accounts Payable 26Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 15.5%Cash from Operations Growth (YoY) 15.5%Cash from Investing Growth (YoY) -106.8%Cash from Financing Growth (YoY) -101.3%Levered FCF Growth (YoY) 0.4%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
-15%
-10%
-5%
0%
5%
10%
15%
20%Internet Media Software Stock Market Return: Jan - July 2011
Internet Media S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Retail
Company Name Ticker 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
1-800-FLOWERS.COM, Inc. FLWS $192.7 $226.2 $668.1 40.6% 5.0% -1.0% 0.3x 6.7x 0.3x 5.1x 35.0%Amazon.com, Inc. AMZN $101,009.6 $94,654.6 $40,277.0 22.4% 4.5% 40.5% 2.4x 51.8x 1.7x 32.0x 88.8%Bitauto Holdings Limited BITA $277.6 $171.9 $76.0 67.5% 16.4% n/a 2.3x 13.8x 1.7x 7.0x n/aBluefly, Inc. BFLY $66.9 $59.4 $93.5 34.8% -1.6% 13.7% 0.6x n/a n/a n/a n/aBlueNile NILE $619.0 $540.7 $342.9 21.6% 6.7% 7.0% 1.6x 23.6x 1.4x 16.0x -16.8%DangDang DANG $884.5 $636.0 $385.0 21.8% 1.2% n/a 1.7x 138.6x 1.1x 122.3x n/aeBay Inc. EBAY $42,206.9 $40,355.6 $10,050.7 71.7% 30.0% 11.4% 4.0x 13.4x 3.2x 9.6x 56.6%IAC/InterActiveCorp IACI $3,518.2 $2,758.6 $1,810.0 62.6% 12.2% 25.1% 1.5x 12.5x 1.3x 7.2x 65.6%Liquidity Services, Inc. LQDT $674.9 $578.8 $329.6 42.1% 12.1% 19.1% 1.8x 14.5x 1.7x 10.8x 78.1%Mecox Lane Limited MCOX $163.8 $63.4 $226.3 40.4% 2.7% 19.9% 0.3x 10.4x 0.3x n/a n/aMercadolibre, Inc. MELI $3,505.4 $3,451.5 $249.1 77.3% 35.0% 25.8% 13.9x 39.6x 11.0x 30.6x 31.3%Overstock.com, Inc. OSTK $295.4 $256.7 $1,094.8 17.4% 1.4% 8.2% 0.2x 16.2x 0.2x 10.1x -35.8%PetMed Express, Inc. PETS $233.2 $173.6 $230.9 35.0% 13.1% -2.0% 0.8x 5.8x 0.8x 7.3x -31.2%ZAGG, Inc. ZAGG $375.7 $380.7 $118.1 47.7% 18.7% 162.9% 3.2x 17.3x 2.5x 11.6x 351.5%
Median: $497.4 $460.7 $336.3 40.5% 9.4% 16.4% 1.6x 14.5x 1.4x 10.4x 45.8%
TTM Revenue Growth 16.4%TTM EBITDA Growth 12.6%TTM Earnings Growth -13.4%Gross Profit Margin 40.5%EBITDA Margin 9.4%Net Income Margin 2.5%SG&A Expenses as a % of Total Revenue 31.1%R&D Expenses as a % of Total Revenue 5.8%
Current Ratio 2.3Quick Ratio 1.4Cash as Percent of Market Cap 13.7%Avg Days Outstanding: Accounts Receivable 9Avg Days Outstanding: Accounts Payable 36Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 4.7%Cash from Operations Growth (YoY) 16.2%Cash from Investing Growth (YoY) -63.8%Cash from Financing Growth (YoY) 28.9%Levered FCF Growth (YoY) 8.1%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-15%
-10%
-5%
0%
5%
10%
15%
20%Internet Retail Software Stock Market Return: Jan - July 2011
Internet Retail S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Search
Company Name Ticker 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
Baidu.com, Inc. BIDU $54,807.8 $53,260.7 $1,632.8 80.5% 56.9% 83.7% 32.6x 57.4x 19.6x 32.9x 92.9%Google Inc. GOOG $194,924.1 $161,943.1 $33,328.0 65.2% 38.4% 27.1% 4.9x 12.7x 3.9x 9.3x 24.5%IAC/InterActiveCorp IACI $3,518.2 $2,758.6 $1,810.0 62.6% 12.2% 25.1% 1.5x 12.5x 1.3x 7.2x 65.6%InfoSpace, Inc. INSP $352.9 $89.5 $238.6 35.7% 6.8% -0.1% 0.4x 5.5x 0.4x 2.9x 21.7%Local.com Corp. LOCM $73.8 $53.6 $74.9 40.8% 1.0% 2.4% 0.7x 74.7x 0.6x n/a -44.6%LookSmart, Ltd. LOOK $25.2 $4.1 $36.2 43.7% 10.5% -29.9% 0.1x 1.1x 0.1x 1.0x -2.7%ReachLocal, Inc. RLOC $531.0 $446.4 $334.5 47.1% -1.9% 35.8% 1.3x n/a 1.1x 29.7x 31.0%Sohu.com Inc. SOHU $3,450.2 $2,836.6 $710.3 73.6% 41.1% 29.6% 4.0x 9.7x 3.4x 9.8x 91.6%Yandex YNDX $11,298.2 $10,629.2 $563.0 78.4% 45.1% n/a 18.9x 41.8x 13.6x 27.6x n/a
Median: $1,990.6 $1,602.5 $522.4 54.9% 11.3% 26.1% 1.4x 12.5x 1.2x 9.3x 27.7%
TTM Revenue Growth 26.1%TTM EBITDA Growth 24.4%TTM Earnings Growth 26.1%Gross Profit Margin 54.9%EBITDA Margin 11.3%Net Income Margin 6.6%SG&A Expenses as a % of Total Revenue 25.1%R&D Expenses as a % of Total Revenue 8.5%
Current Ratio 3.6Quick Ratio 3.5Cash as Percent of Market Cap 21.8%Avg Days Outstanding: Accounts Receivable 31Avg Days Outstanding: Accounts Payable 34Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 3.0%Cash from Operations Growth (YoY) 15.6%Cash from Investing Growth (YoY) -72.8%Cash from Financing Growth (YoY) 37.9%Levered FCF Growth (YoY) 60.6%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
August 2011 Monthly Flash Report
Income Statement Analysis (Median)
-20%
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5%
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20%Internet Search Software Stock Market Return: Jan - July 2011
Internet Search S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Services
Company Name Ticker 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
Active Networks ACTV $961.6 $1,344.9 $306.4 56.4% 7.2% n/a 4.4x 60.8x 4.0x 34.6x n/aAncestory.com ACOM $1,601.8 $1,530.8 $354.4 83.6% 33.1% 38.4% 4.3x 13.0x 3.4x 9.6x 80.4%Bankrate RATE $1,829.0 $2,334.9 $345.4 62.4% 32.0% n/a 6.8x 21.1x n/a n/a n/aeHealth, Inc. EHTH $277.0 $141.1 $161.9 81.8% 21.3% 14.2% 0.9x 4.1x 0.9x 6.4x 16.7%FriendFinder FFN $116.6 $601.9 $343.3 68.7% 32.0% 4.1% 1.8x 5.5x 1.7x 5.7x n/aJiayuan.com International DATE $449.8 $438.9 $32.5 65.7% 21.5% n/a 13.5x 62.6x 8.2x 32.5x n/aLinkedIn LNKD $9,547.2 $9,441.1 $358.5 82.7% 13.4% n/a 26.3x 197.1x 17.2x 211.0x n/aLoopNet, Inc. LOOP $746.6 $638.5 $82.1 84.1% 24.8% 9.1% 7.8x 31.3x 6.9x 19.6x 60.1%Qihoo QIHU $2,661.7 $2,669.3 $70.9 88.3% -12.7% 91.7% 37.6x n/a 18.8x 67.1x n/aRenren RENN $4,244.6 $4,464.4 $83.1 79.4% 13.4% n/a 53.7x 401.5x 32.9x n/a n/aStamps.com STMP $240.2 $203.6 $92.8 73.1% 12.6% 10.4% 2.2x 17.4x 2.0x 10.8x 53.1%Shutterfly SFLY $1,872.1 $1,796.2 $348.2 54.6% 9.5% 31.8% 5.2x 54.3x 3.3x 18.0x 116.9%VistaPrint VPRT $1,152.0 $914.9 $817.0 64.8% 17.6% 21.9% 1.1x 6.4x 0.9x 6.4x -19.2%Zillow Z $867.0 $851.5 $36.4 84.5% -8.0% n/a 23.4x n/a n/a n/a n/a
Median: $1,152.0 $1,344.9 $306.4 73.1% 17.6% 18.1% 5.2x 26.2x 3.7x 18.0x 56.6%
TTM Revenue Growth 18.1%TTM EBITDA Growth 32.2%TTM Earnings Growth 22.0%Gross Profit Margin 73.1%EBITDA Margin 17.6%Net Income Margin 4.7%SG&A Expenses as a % of Total Revenue 42.2%R&D Expenses as a % of Total Revenue 14.8%
Current Ratio 3.1Quick Ratio 2.7Cash as Percent of Market Cap 9.0%Avg Days Outstanding: Accounts Receivable 18Avg Days Outstanding: Accounts Payable 28Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 9.6%Cash from Operations Growth (YoY) 5.8%Cash from Investing Growth (YoY) -16.7%Cash from Financing Growth (YoY) 8.8%Levered FCF Growth (YoY) 20.2%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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Internet Services S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Travel
Company Name Ticker 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
Ctrip CTRP $6,618.3 $6,120.9 $494.4 78.1% 37.9% 33.6% 12.4x 32.7x 10.6x 25.3x 14.5%Expedia EXPE $8,691.2 $8,179.6 $3,642.0 79.6% 23.8% 17.4% 2.2x 9.4x 2.0x 7.5x 39.7%HomeAway AWAY $3,138.1 $3,523.3 $200.8 84.7% 17.4% n/a 17.5x 100.6x n/a n/a n/aMakeMyTrip MMYT $813.3 $749.4 $143.0 36.6% 4.1% n/a 5.2x 128.2x 8.5x 58.0x n/aOrbitz OWW $334.3 $652.7 $763.6 79.6% 14.7% 2.9% 0.9x 5.8x 0.8x 5.7x -27.7%Pricelilne PCLN $26,692.7 $25,579.9 $3,645.1 65.8% 29.1% 38.9% 7.0x 24.1x 5.8x 18.4x 139.6%Travelzoo TZOO $869.2 $828.9 $130.7 93.2% 24.6% 25.7% 6.3x 25.8x 4.7x 15.6x 239.3%
Median: $4,878.2 $4,822.1 $629.0 78.8% 20.6% 25.5% 6.1x 28.4x 5.8x 18.4x 27.1%
TTM Revenue Growth 25.5%TTM EBITDA Growth 51.3%TTM Earnings Growth 12.1%Gross Profit Margin 78.8%EBITDA Margin 20.6%Net Income Margin 3.3%SG&A Expenses as a % of Total Revenue 46.5%R&D Expenses as a % of Total Revenue 12.9%
Current Ratio 2.0Quick Ratio 1.9Cash as Percent of Market Cap 9.1%Avg Days Outstanding: Accounts Receivable 35Avg Days Outstanding: Accounts Payable 338Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 22.0%Cash from Operations Growth (YoY) 6.9%Cash from Investing Growth (YoY) -36.9%Cash from Financing Growth (YoY) 56.5%Levered FCF Growth (YoY) 65.6%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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35%Internet Travel Software Stock Market Return: Jan - July 2011
Internet Travel S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Video Games
Company Name Ticker 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
ChangeYou CYOU $2,712.3 $2,305.9 $379.5 88.6% 64.6% 31.2% 6.1x 9.4x 5.2x 9.1x 81.2%Giant Interactive GA $1,768.6 $825.5 $239.1 87.3% 63.6% 29.7% 3.5x 5.4x 3.0x 4.8x 14.3%Netease NTES $6,596.0 $5,010.9 $892.4 67.1% 50.0% 41.0% 5.6x 11.2x 4.7x 9.5x 31.9%NCSoft KOSE:A036 $6,100.0 $6,113.1 $582.2 78.2% 36.8% -4.6% 10.5x 28.6x n/a n/a 94.1%Perfect World PWRD $994.5 $719.8 $391.9 82.0% 36.8% 9.5% 1.8x 5.0x 1.5x 4.3x -15.3%Shanda SNDA $1,978.6 $1,293.9 $906.5 59.8% n/a 8.9% 1.4x n/a 1.1x 6.3x -12.3%Tencent Holdings SEHK:700 $47,509.9 $45,127.1 $3,685.0 66.3% 49.4% 49.4% 12.2x 24.8x n/a n/a 35.0%
Median: $2,712.3 $2,305.9 $582.2 78.2% 49.7% 29.7% 5.6x 10.3x 3.0x 6.3x 31.9%
TTM Revenue Growth 29.7%TTM EBITDA Growth 26.2%TTM Earnings Growth -10.6%Gross Profit Margin 78.2%EBITDA Margin 49.7%Net Income Margin 37.1%SG&A Expenses as a % of Total Revenue 23.2%R&D Expenses as a % of Total Revenue 12.4%
Current Ratio 4.1Quick Ratio 3.6Cash as Percent of Market Cap 29.4%Avg Days Outstanding: Accounts Receivable 14Avg Days Outstanding: Accounts Payable 49Working Capital to TTM Operating Expense Ratio 1.8
Levered FCF Margin 28.8%Cash from Operations Growth (YoY) 42.9%Cash from Investing Growth (YoY) -89.5%Cash from Financing Growth (YoY) 198.8%Levered FCF Growth (YoY) 84.9%
Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
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35%Internet Video Games Software Stock Market Return: Jan - July 2011
Internet Video Games S&P NASDAQ SEG Internet Index
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