SEG Monthly Flash Report August 2012

8/13/2019 SEG Monthly Flash Report August 2012

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Select M&A Transactionsand

Financial and Stock Market Performance

Public Software Companies By Product Category

August 2012

Software Equity Group Flash Report

Public Internet Companies By Product Category

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CRM Customer Relationship Management

EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization

ERP Enterprise Resource Planning

EV Enterprise Value

FCF Free Cash Flow

List of Commonly Used Acronyms

FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates

NASDAQ National Association of Securities Dealers Automated Quotation System

PLM Product Lifecycle Management

R&D Research and DevelopmentS&P Standard & Poor's

SaaS Software-as-a-Service

SEG Software Equity Group

SG&A Selling, General, & Administrative

SW Software

TTM Trailing Twelve Month

YoY Year-over-Year

YTD Year-to-date

http://www.softwareequity.com/


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July 2012

Select Software Industry M&A Transactions



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Category Performance

SEG Software Index



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SEG Software Index Category: Bil ling and Service Management

Company Name Ticker Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnAmdocs Limited DOX $4,992.3 $4,096.8 $3,237.0 35.7% 18.4% 3.5% 1.3x 6.9x 1.2x 5.9x -6.2%

AsiaInfo Holdings, Inc. ASIA $754.8 $501.1 $500.3 40.7% 15.2% 9.8% 1.0x 6.6x 0.9x 5.6x -31.9%

CSG Systems International, Inc. CSGS $568.0 $684.6 $739.2 50.4% 22.3% 13.3% 0.9x 4.2x 0.9x 4.2x -0.3%

Evolving Systems, Inc. EVOL $64.6 $50.9 $21.8 64.8% 10.7% 6.0% 2.3x 22.0x 2.0x 12.0x -19.6%

MIND C.T.I. Ltd. MNDO $31.5 $14.7 $20.4 59.9% 21.1% 7.3% 0.7x 3.4x n/a n/a -34.4%

NeuStar, Inc NSR $2,368.9 $2,725.2 $732.7 77.3% 42.0% 30.8% 3.7x 8.9x 3.2x 6.5x 37.0%

Synchronoss Technologies, Inc. SNCR $676.3 $555.1 $252.9 56.0% 19.2% 25.6% 2.2x 11.4x 1.9x 6.3x -39.6%

Median: $676.3 $555.1 $500.3 56.0% 19.2% 9.8% 1.3x 6.9x 1.5x 6.1x -19.6%

TTM Revenue Growth 9.8%

TTM EBITDA Growth 15.1%

TTM Earnings Growth 7.5%

Gross Profit Margin 56.0%

EBITDA Margin 19.2%

Net Income Margin 11.8%

SG&A Expenses as a % of Total Revenue 18.0%

R&D Expenses as a % of Total Revenue 14.9%

Current Ratio 2.6xQuick Ratio 2.3x

Cash as Percent of Market Cap 17.9%

Avg Days Outstanding: Accounts Receivable 73.6

Avg Days Outstanding: Accounts Payable 29.3

Working Capi tal to TTM Operat ing Expense Ratio 0.6x

Levered FCF Margin 15.6%

Cash from Operations Growth (YoY) 17.9%

Cash from Investing Growth (YoY) -98.6%

Cash from Financing Growth (YoY) 10.8%

Levered FCF Growth (YoY) 42.2%


August 2012 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Billing and Service Management Software Stock Market Return: Jan - Jul 2012

Billing & Service Management S&P NASDAQ SEG Internet Index


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SEG Software Index Category: Business Intelligence


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnActuate Corporation BIRT $314.9 $247.2 $140.2 84.3% 22.4% 1.6% 1.8x 7.9x 1.7x 5.8x 5.3%

MicroStrategy Incorporated MSTR $1,299.8 $1,104.3 $588.9 74.5% 6.1% 14.6% 1.9x 30.7x 1.6x 15.3x -25.4%

Pegasystems Inc. PEGA $1,039.4 $951.4 $425.5 60.9% 6.5% 16.9% 2.2x 34.6x 1.9x 17.1x -32.0%

Progress Software Corporation PRGS $1,244.4 $916.2 $503.7 82.3% 18.8% -7.2% 1.8x 9.7x 1.9x 8.0x -18.5%

PROS Holdings PRO $381.4 $310.5 $106.6 72.7% 10.5% 31.5% 2.9x 27.8x 2.6x 15.3x -14.5%

Qlik Technologies QLIK $1,714.9 $1,519.7 $348.5 89.5% 6.5% 29.7% 4.4x 67.5x 3.7x 25.4x -33.7%

Median: $1,141.9 $933.8 $387.0 78.4% 8.5% 15.8% 2.1x 29.2x 1.9x 15.3x -22.0%





EBITDA Margin 8.5%












Cash from Financing Growth (YoY) -19.3%







-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

Business Intelligence Software Stock Market Return: Jan - Jul 2012

Business Intelligence S&P NASDAQ SEG Internet Index


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SEG Software Index Category: Development Platforms


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnActuate Corporation BIRT $314.9 $247.2 $140.2 84.3% 22.4% 1.6% 1.8x 7.9x 1.7x 5.8x 5.3%

Adobe Systems Incorporated ADBE $15,249.6 $13,761.5 $4,335.0 89.4% 34.4% 7.1% 3.2x 9.2x 3.0x 6.8x 11.9%

BSQUARE Corporation BSQR $33.8 $17.0 $96.4 20.3% -0.1% -8.9% 0.2x n/a n/a n/a -50.5%

Compuware Corporation CPWR $2,024.7 $1,977.7 $1,006.0 66.2% 17.5% 5.6% 2.0x 11.2x 1.9x 8.2x -3.4%

GeekNet GKNT $126.9 $94.4 $124.8 26.8% 1.0% 19.3% 0.8x 75.1x 0.7x 13.6x -19.8%

Magic Software Enterprises Ltd. MGIC $159.5 $119.6 $118.5 42.0% 18.1% 18.2% 1.0x 5.6x 0.9x n/a -16.0%

Microsoft Corporation MSFT $248,483.9 $199,214.9 $73,723.0 76.2% 41.7% 5.4% 2.7x 6.5x 2.5x 5.8x 8.2%

Oracle Corporation ORCL $149,307.0 $135,504.0 $37,121.0 78.8% 43.2% 4.2% 3.7x 8.4x 3.5x 6.9x 0.0%

Progress Software Corporation PRGS $1,244.4 $916.2 $503.7 82.3% 18.8% -7.2% 1.8x 9.7x 1.9x 8.0x -18.5%

Red Hat, Inc. RHT $10,377.1 $9,558.1 $1,183.1 84.6% 22.1% 22.6% 8.1x 36.5x 6.9x 24.2x 27.8%

Software AG XTRA:SOW $2,835.4 $2,853.5 $1,371.4 61.6% 27.8% -4.4% 2.1x 7.5x n/a n/a -33.3%

Median: $2,024.7 $1,977.7 $1,006.0 76.2% 22.1% 5.4% 2.0x 8.8x 1.9x 7.4x -3.4%



TTM Earnings Growth -19.2%


EBITDA Margin 22.1%



















-5%

0%

5%

10%

15%

20%

25%

Development Platforms Soft ware Stock Market Return: Jan - Jul 2012

Development Platforms S&P NASDAQ SEG Internet Index


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SEG Software Index Category: Engineering & PLM


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnANSYS, Inc. ANSS $5,641.0 $5,199.4 $751.5 87.4% 47.3% 19.9% 6.9x 14.6x n/a 12.1x 19.7%

Autodesk, Inc. ADSK $7,840.8 $6,328.8 $2,275.9 89.7% 21.5% 13.5% 2.8x 12.9x 2.5x 8.8x -0.8%

Cadence Design Systems, Inc CDNS $3,364.7 $3,088.0 $1,242.8 84.3% 21.1% 19.9% 2.5x 11.8x 2.3x 7.8x 18.5%

Cimatron Ltd. CIMT $35.0 $20.7 $42.3 87.9% 16.0% 9.6% 0.5x 3.1x n/a n/a 10.3%

Dassault Systmes DSY $12,129.7 $10,487.1 $2,421.6 86.6% 31.3% 12.1% 4.3x 13.8x n/a n/a 10.9%

GSE Systems Inc. GVP $42.3 $25.1 $52.2 32.2% 7.0% 8.0% 0.5x 6.9x 0.5x n/a 4.5%

Mentor Graphics Corp MENT $1,704.2 $1,802.9 $1,032.5 84.0% 17.9% 7.1% 1.7x 9.7x 1.6x 7.3x 35.9%

Parametric Technology Corporation PMTC $2,566.7 $2,468.6 $1,269.8 69.9% 17.4% 15.9% 1.9x 11.2x 1.9x 7.8x 4.0%

PDF Solutions Inc PDFS $275.8 $230.3 $77.7 57.4% 18.4% 22.9% 3.0x 16.1x 2.6x 8.3x 61.0%

Stratasys, Inc. SSYS $1,328.3 $1,286.2 $177.9 52.6% 22.3% 29.9% 7.2x 32.4x 6.7x 22.8x 144.2%

Synopsys Inc SNPS $4,517.1 $3,970.5 $1,635.4 81.9% 22.6% 11.2% 2.4x 10.8x 2.2x 7.7x 28.1%

Median: $2,566.7 $2,468.6 $1,032.5 84.0% 21.1% 13.5% 2.5x 11.8x 2.2x 8.1x 18.5%





EBITDA Margin 21.1%




Current Ratio 1.8x

Quick Ratio 1.8x















-5%

0%

5%

10%

15%

20%

25%

30%Engineering & PLM Software Stock Market Return: Jan - Jul 2012

Engineering, PLM & CAD/CAM S&P NASDAQ SEG Internet Index


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SEG Software Index Category: Enterprise Resource Planning


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnAmerican Software, Inc. AMSW.A $220.5 $161.1 $102.6 55.3% 17.5% 19.9% 1.6x 9.0x 1.4x n/a -5.0%


QAD Inc. QADA $217.8 $155.5 $251.6 57.9% 9.4% 10.1% 0.6x 6.6x 0.6x 5.2x 28.2%

Sage Group plc LSE:SGE $5,856.8 $5,665.2 $2,137.7 93.7% 29.0% 8.8% 2.7x 9.1x n/a n/a 3.8%

SAP SAP $76,412.4 $76,887.6 $19,214.0 71.6% 36.1% 13.2% 4.0x 11.1x 3.7x 9.9x 2.7%

Median: $5,856.8 $5,665.2 $2,137.7 71.6% 29.0% 10.1% 2.7x 9.0x 2.4x 6.9x 2.7%





EBITDA Margin 29.0%




Current Ratio 1.2x

Quick Ratio 1.0x









Levered FCF Growth (YoY) -8.5%






-5%

0%

5%

10%

15%

20%

25%

Enterprise Resource Planning Software Stock Market Return: Jan - Jul 2012

Enterprise Resource Planning S&P NASDAQ SEG Internet Index


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SEG Software Index Category: Financial & Account ing


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnACI Worldwide, Inc. ACIW $1,716.5 $1,930.6 $534.6 67.7% 19.8% 17.2% 3.6x 18.3x 2.6x 9.7x 21.1%

Bottomline Technologies EPAY $703.0 $584.6 $217.1 54.4% 16.0% 22.9% 2.7x 16.9x 2.4x 14.6x -17.9%

DST Systems, Inc. DST $2,376.3 $3,375.0 $2,500.8 17.3% 14.3% 8.4% 1.3x 9.5x 1.6x 7.9x 5.7%

Fair Isaac Corporation FICO $1,458.6 $1,811.9 $650.6 70.6% 29.0% 5.9% 2.8x 9.6x 2.7x 9.2x 44.9%

Fiserv FISV $9,860.9 $12,973.9 $4,432.0 41.6% 30.2% 5.1% 2.9x 9.7x 2.8x 8.7x 19.7%

Intuit Inc INTU $17,182.6 $16,159.6 $4,151.0 82.4% 34.3% 9.4% 3.9x 11.4x 3.5x 9.2x 25.3%

NetSol Technologies Inc. NTWK $36.4 $50.9 $32.3 58.4% 15.3% -19.9% 1.6x 10.3x 1.2x 4.4x -44.9%

Sage Group plc LSE:SGE $5,856.8 $5,665.2 $2,137.7 93.7% 29.0% 8.8% 2.7x 9.1x n/a n/a 3.8%

Median: $2,046.4 $2,652.8 $1,394.1 63.1% 24.4% 8.6% 2.7x 10.0x 2.6x 9.2x 12.7%





EBITDA Margin 24.4%




Current Ratio 1.5x

Quick Ratio 1.1x






Cash from Operations Growth (YoY) -2.1%









-5%

0%

5%

10%

15%

20%

25%

Financial & Account ing Software Stock Market Return: Jan - Jul 2012

Financial & Accounting S&P NASDAQ SEG Internet Index


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SEG Software Index Category: Gaming


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnActivision Blizzard ATVI $13,373.9 $9,897.9 $4,407.0 61.8% 24.6% -7.6% 2.2x 9.1x 2.1x 5.9x 1.6%

Electronic Arts Inc. EA $3,569.7 $2,259.7 $4,099.0 62.2% 6.7% 8.6% 0.6x 8.2x 0.5x 3.4x -49.5%

GameLoft SA ENXTPA:GF $447.1 $401.8 $223.9 88.9% 14.8% 14.1% 1.8x 12.1x n/a n/a -17.0%

Konami Corporation TSE: 9766 $2,878.6 $2,410.0 $3,252.5 34.6% 18.9% 0.1% 0.7x 3.9x 0.7x 3.4x -20.8%

Majesco Entertainment Company COOL $74.4 $42.7 $141.3 35.5% 9.2% 21.6% 0.3x 3.3x 0.3x 2.5x -26.5%

TakeTwo Interactive TTWO $823.2 $719.2 $717.6 29.7% -23.2% -34.5% 1.0x n/a 0.4x 2.5x -32.3%

THQ Inc. THQI $34.7 $58.8 $769.4 57.8% -5.0% 8.2% 0.1x n/a 0.1x n/a -81.0%

Median: $823.2 $719.2 $769.4 57.8% 9.2% 8.2% 0.7x 8.2x 0.5x 3.4x -26.5%


TTM EBITDA Growth -8.1%



EBITDA Margin 9.2%




Current Ratio 2.8x

Quick Ratio 1.7x




Working Capi tal to TTM Operating Expense Ratio 0.4x











-40%

-30%

-20%

-10%

0%

10%

20%

30%

Gaming Software Stock Market Return: Jan - Jul 2012

Gaming S&P NASDAQ SEG SW Index


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SEG Software Index Category: Healthcare


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Accelrys Inc. ACCL $449.7 $304.3 $153.8 75.5% 9.9% 19.5% 2.0x 19.9x 1.8x 8.7x 11.4%

Allscripts Healthcare Solutions Inc. MDRX $1,769.2 $1,939.2 $1,486.7 43.8% 15.8% 19.9% 1.3x 8.3x 1.3x 5.4x -48.9%

Cerner Corporation CERN $12,638.1 $11,834.3 $2,415.7 79.0% 27.2% 24.5% 4.9x 18.0x 4.3x 13.5x 11.0%

Computer Programs and Sys, Inc. CPSI $559.9 $537.1 $174.5 44.4% 24.1% 0.7% 3.1x 12.8x 2.6x 9.6x -31.1%

Epocrates EPOC $189.0 $107.3 $110.7 60.4% 0.3% -0.7% 1.0x 282.4x 1.0x 9.1x -53.3%

Greenway Medical Technologies, Inc GWAY $410.3 $373.9 $117.0 54.3% 7.7% 45.3% 3.2x 41.2x 2.6x 19.6x n/a

MedAssets MDAS $769.8 $1,741.9 $613.2 79.3% 29.7% 27.6% 2.8x 9.6x 2.8x 8.9x 4.2%

Merge Healthcare MRGE $281.3 $492.5 $248.0 63.0% 19.6% 24.2% 2.0x 10.2x 2.0x 9.8x -40.0%

Nuance Communications, Inc. NUAN $6,332.2 $6,763.9 $1,549.8 67.0% 22.7% 22.9% 4.4x 19.3x 3.5x 8.7x 3.2%

Omnicell, Inc. OMCL $439.3 $229.7 $266.9 54.5% 9.5% 15.2% 0.9x 9.1x 0.7x 4.6x -23.6%

Quality Systems, Inc. QSII $950.7 $815.8 $447.7 63.2% 27.3% 20.7% 1.8x 6.7x 1.6x 6.1x -64.9%

Simulations Plus, Inc. SLP $66.7 $53.8 $12.2 76.9% 29.2% 28.4% 4.4x 15.1x 5.1x 9.7x 25.8%Median: $504.8 $514.8 $257.5 63.1% 21.1% 21.8% 2.4x 13.9x 2.3x 9.0x -23.6%





EBITDA Margin 21.1%




Current Ratio 2.1x

Quick Ratio 1.7x















-10%

-5%

0%

5%

10%

15%

20%

25%

Healthcare Software Stock Market Return: Jan - Jul 2012

Healthcare S&P NASDAQ SEG Internet Index


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SEG Software Index Category: IT Conglomerates


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Hewlett Packard HPQ $36,005.7 $58,190.7 $124,040.0 22.9% 11.9% -3.0% 0.5x 3.9x 0.5x 3.6x -48.1%

IBM IBM $224,215.2 $245,555.2 $106,099.0 47.4% 25.3% 1.5% 2.3x 9.2x 2.3x 8.5x 8.2%



SAP AG SAP $76,412.4 $76,887.6 $19,214.0 71.6% 36.1% 13.2% 4.0x 11.1x 3.7x 9.9x 2.7%

Median: $149,307.0 $135,504.0 $73,723.0 71.6% 36.1% 4.2% 2.7x 8.4x 2.5x 6.9x 2.7%





EBITDA Margin 36.1%




Current Ratio 1.2x

Quick Ratio 1.0x




Working Capital to TTM Operating Expense Ratio 0.1x











-5%

0%

5%

10%

15%

20%

25%

IT Conglomerates Software Stock Market Return: Jan - Jul 2012

IT Conglomerates S&P NASDAQ SEG Internet Index


18/43


19/43

SEG Software Index Category: Networking/Network Performance Mgmt


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Allot Communications Ltd. ALLT $781.3 $615.8 $92.7 71.2% 16.2% 39.4% 6.6x 41.1x 5.6x 24.0x 66.5%

Aruba Networks, Inc. ARUN $1,592.1 $1,275.6 $491.3 70.0% 4.9% 36.4% 2.6x 52.7x 2.2x 9.4x -38.2%

Brocade Communications Systems, BRCD $2,227.8 $2,352.4 $2,157.4 61.0% 19.6% 0.5% 1.1x 5.6x 1.0x 4.6x -9.7%

Cisco Systems, Inc. CSCO $85,013.7 $52,991.7 $45,566.0 61.4% 28.2% 6.3% 1.2x 4.1x 1.1x 3.6x -0.6%

Compuware Corporation CPWR $2,024.7 $1,977.7 $1,006.0 66.2% 17.5% 5.6% 2.0x 11.2x 1.9x 8.2x -3.4%

F5 Networks, Inc. FFIV $7,528.4 $7,008.7 $1,329.3 82.7% 33.5% 21.8% 5.3x 15.8x 4.6x 11.3x 1.9%

Juniper Networks, Inc. JNPR $9,293.6 $6,853.9 $4,332.8 62.5% 14.3% -2.1% 1.6x 11.1x 1.5x 7.2x -25.0%

Keynote Systems, Inc. KEYN $241.5 $197.9 $121.5 50.1% 15.3% 26.5% 1.6x 10.6x 1.5x 8.1x -42.4%

Radware Ltd. RDWR $670.4 $534.6 $179.1 80.7% 20.1% 15.1% 3.0x 14.9x 2.7x 11.4x -7.1%

Riverbed Technology, Inc. RVBD $2,761.5 $2,334.0 $773.5 75.2% 15.6% 19.5% 3.0x 19.3x 2.6x 9.0x -37.5%

Median: $2,126.3 $2,155.8 $889.7 68.1% 16.8% 17.3% 2.3x 13.0x 2.0x 8.6x -8.4%





EBITDA Margin 16.8%




Current Ratio 2.7x

Quick Ratio 2.4x




Working Capital to TTM Operati ng Expense Ratio 0.6x











-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Networking/Network Performance Mgmt Software Stock Market Return: Jan - Jul 2012

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


20/43

SEG Software Index Category: Security


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

AVG Technologies N.V. AVG $541.1 $636.1 $311.0 86.8% 26.8% n/a 2.0x 7.6x 1.9x 6.4x n/a

Check Point Software Tech Ltd. CHKP $9,895.9 $8,524.2 $1,306.8 88.4% 56.6% 11.4% 6.5x 11.5x 6.0x 10.4x -16.2%

Commtouch Software Ltd. CTCH $65.3 $43.3 $23.4 82.0% 21.3% 10.3% 1.9x 8.7x 1.6x 7.7x -27.2%

Fortinet Inc. FTNT $3,871.7 $3,470.1 $483.5 72.7% 21.0% 29.0% 7.2x 34.2x 6.0x 22.5x 21.1%

Guidance Software, Inc. GUID $237.9 $212.7 $114.2 73.2% 5.7% 17.4% 1.9x 32.9x 1.6x 13.1x 27.3%

Imperva IMPV $597.1 $495.8 $83.4 79.0% -10.1% 37.9% 5.9x n/a 4.8x 199.1x n/a

Palo Alto Networks, Inc. PANW $3,663.1 $3,572.8 $219.7 72.5% 3.6% n/a 16.3x 446.3x 10.0x 144.2x n/a

Proofpoint, Inc. PFPT $449.6 $551.3 $87.7 65.0% -12.5% n/a 6.3x n/a 5.3x n/a n/a

Sourcefire, Inc. FIRE $1,457.1 $1,307.0 $195.3 77.0% 9.3% 38.2% 6.7x 72.0x 6.0x 29.6x 101.4%

Symantec Corporation SYMC $11,149.9 $10,166.9 $6,745.0 84.9% 26.5% 5.2% 1.5x 5.7x 1.5x 4.8x -18.8%

Trend Micro TSE:4704 $3,906.9 $2,550.8 $1,153.3 81.5% 34.6% -0.6% 2.2x 6.4x n/a n/a -5.3%

VASCO Data Security International VDSI $349.0 $263.8 $168.8 65.8% 18.3% 22.8% 1.6x 8.5x 1.5x n/a -4.3%Websense, Inc. WBSN $565.3 $573.0 $364.2 83.9% 19.9% 3.9% 1.6x 7.9x 1.6x 6.2x -33.0%

Median: $597.1 $636.1 $219.7 79.0% 19.9% 14.4% 2.2x 8.7x 3.3x 11.7x -5.3%





EBITDA Margin 19.9%




Current Ratio 1.6x

Quick Ratio 1.5x















-10%

-5%

0%

5%

10%

15%

20%

25%

Security Software Stock Market Return: Jan - Jul 2012

Security S&P NASDAQ SEG Internet Index


21/43

SEG Software Index Category: Storage, Data Management & Integration


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Brocade Communications Systems, BRCD $2,227.8 $2,352.4 $2,157.4 61.0% 19.6% 0.5% 1.1x 5.6x 1.0x 4.6x -9.7%

CA, Inc. CA $11,374.2 $10,120.2 $4,796.0 86.7% 35.8% 6.0% 2.1x 5.9x 2.1x 5.6x 8.7%

Cisco Systems, Inc. CSCO $85,013.7 $52,991.7 $45,566.0 61.4% 28.2% 6.3% 1.2x 4.1x 1.1x 3.6x -0.6%

CommVault Systems, Inc. CVLT $2,037.2 $1,736.9 $426.4 86.7% 14.1% 25.4% 4.1x 28.8x 3.7x 18.2x 17.2%

EMC EMC $55,217.3 $52,376.3 $20,960.4 62.3% 23.9% 13.0% 2.5x 10.4x 2.3x 8.0x 0.9%

FalconStor Software, Inc. FALC $102.5 $65.5 $80.1 72.5% -10.9% -4.7% 0.8x n/a 0.7x n/a -49.8%

IBM IBM $224,215.2 $245,555.2 $106,099.0 47.4% 25.3% 1.5% 2.3x 9.2x 2.3x 8.5x 8.2%

Informatica Corporation INFA $3,232.5 $2,667.2 $809.5 84.1% 22.4% 12.4% 3.3x 14.7x 3.1x 10.4x -41.6%


NetApp, Inc. NTAP $11,923.8 $7,790.2 $6,233.2 59.6% 15.1% 21.7% 1.2x 8.3x 1.2x 6.8x -31.6%


Pervasive Software Inc. PVSW $110.2 $67.5 $49.2 84.7% 7.3% 1.6% 1.4x 18.7x 1.3x 10.5x -8.4%Splunk, Inc. SPLK $2,779.9 $2,513.8 $137.5 89.9% -7.6% n/a 18.3x n/a 13.3x n/a n/a

TIBCO Software Inc. TIBX $4,634.0 $4,541.7 $991.5 73.0% 22.7% 19.8% 4.6x 20.2x 4.0x 13.3x 9.8%

Median: $8,004.1 $6,166.0 $3,476.7 74.6% 22.6% 6.0% 2.4x 8.8x 2.3x 7.4x 0.0%





EBITDA Margin 22.6%




Current Ratio 2.3x

Quick Ratio 2.2x















-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Storage, Data Management & Integration Soft ware Stock Market Return: Jan - Jul 2012

Storage, Data Management & Integration S&P NASDAQ SEG SW Index


22/43

SEG Software Index Category: Supply Chain Management & Logistics


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

American Software, Inc. AMSW.A $220.5 $161.1 $102.6 55.3% 17.5% 19.9% 1.6x 9.0x 1.4x n/a -5.0%

Aspen Technology, Inc. AZPN $2,192.4 $2,043.5 $231.8 76.6% -11.2% 26.1% 8.8x n/a 7.5x 239.1x 51.2%

JDA Software Group JDAS $1,263.3 $1,251.0 $669.5 64.0% 23.6% 3.1% 1.9x 7.9x 1.7x 6.4x 6.2%

Manhattan Associates, Inc. MANH $926.1 $825.2 $354.2 58.2% 22.1% 15.9% 2.3x 10.6x 2.2x 8.9x 24.0%

Retalix Ltd. RTLX $512.4 $391.0 $258.0 41.3% 8.3% 18.0% 1.5x 18.3x 1.5x 14.1x n/a

The Descartes Systems Group Inc. TSX:DSG $527.6 $459.1 $116.8 65.8% 28.1% 11.3% 3.9x 14.0x 3.5x 11.9x 22.4%

Median: $726.8 $642.1 $244.9 61.1% 19.8% 16.9% 2.1x 10.6x 2.0x 11.9x 22.4%





EBITDA Margin 19.8%




Current Ratio 2.5x

Quick Ratio 2.3x







Cash from Investing Growth (YoY) 25.2%








-5%

0%

5%

10%

15%

20%

25%

30%

Supply Chain Management & Logist ics Software Stock Market Return: Jan - Jul 2012

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


23/43

SEG Software Index Category: Systems Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

BMC Software Inc. BMC $6,290.0 $5,550.8 $2,174.0 73.0% 29.4% 3.2% 2.6x 8.7x 2.4x 6.0x -8.6%

CA Technologies CA $11,374.2 $10,120.2 $4,796.0 86.7% 35.8% 6.0% 2.1x 5.9x 2.1x 5.6x 8.7%

Citrix Systems, Inc. CTXS $13,638.5 $12,340.7 $2,389.4 88.8% 24.8% 18.1% 5.2x 20.8x 4.5x 14.2x 1.7%

Netscout Systems, Inc. NTCT $974.3 $826.8 $321.7 78.7% 24.0% 12.1% 2.6x 10.7x 2.3x 8.6x 53.2%

Red Hat, Inc. RHT $10,377.1 $9,558.1 $1,183.1 84.6% 22.1% 22.6% 8.1x 36.5x 6.9x 24.2x 27.8%

SolarWinds, Inc. SWI $3,959.0 $3,775.8 $233.3 93.4% 48.5% 36.1% 16.2x 33.4x 13.0x 25.4x 148.3%

VMWare, Inc. VMW $39,466.4 $34,569.5 $4,180.4 84.0% 25.8% 26.1% 8.3x 32.0x 6.9x 18.7x -7.9%

Median: $10,377.1 $9,558.1 $2,174.0 84.6% 25.8% 18.1% 5.2x 20.8x 4.5x 14.2x 8.7%





EBITDA Margin 25.8%




Current Ratio 1.7x

Quick Ratio 1.5x















-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Systems Management Software Stock Market Return: Jan - Jul 2012

Systems Management S&P NASDAQ SEG Internet Index


24/43

SEG Software Index Category: Vertical - Finance


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Advent Software, Inc. ADVS $1,372.9 $1,289.7 $347.5 69.3% 20.6% 14.7% 3.7x 18.0x 3.4x 10.6x 16.7%

FX Alliance Inc FX $626.9 $570.9 $122.9 100.0% 38.9% 15.6% 4.6x 11.9x 4.3x 8.9x n/a

Jack Henry & Associates, Inc. JKHY $3,042.7 $3,094.0 $1,009.8 41.5% 32.3% 6.8% 3.1x 9.5x 2.9x 8.8x 20.4%

MSCI, Inc. MSCI $4,040.2 $4,656.8 $918.8 68.9% 44.5% n/a 5.1x 11.4x 4.8x 10.4x -6.3%

SS&C Corporation SSNC $1,915.7 $1,958.7 $375.5 50.3% 36.9% 10.5% 5.2x 14.1x 3.1x 9.0x 32.6%

Median: $1,915.7 $1,958.7 $375.5 68.9% 36.9% 12.6% 4.6x 11.9x 3.4x 9.0x 18.5%





EBITDA Margin 36.9%




Current Ratio 1.3x

Quick Ratio 1.1x




Working Capi tal to TTM Operating Expense Ratio 0.1x











-5%

0%

5%

10%

15%

20%

25%

Vertical - Finance Software Stock Market Return: Jan - Jul 2012

Vertical - Finance S&P NASDAQ SEG SW Index


25/43

SEG Software Index Category: Vertical - Other


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Blackbaud, Inc. BLKB $1,175.9 $1,129.9 $395.4 56.2% 13.9% 13.1% 2.9x 20.6x 2.5x 11.2x 5.6%

Constellation TSX:CSU $1,952.5 $1,891.9 $804.9 33.6% 23.1% 13.6% 2.4x 10.2x 2.2x 10.0x 19.7%

EPIQ Systems, Inc. EPIQ $418.0 $671.4 $311.0 60.8% 22.9% 32.2% 2.2x 9.4x 1.7x 6.3x -10.2%

Guidewire Software, Inc. GWRE $1,351.1 $1,149.3 $215.5 61.5% 12.4% 28.8% 5.3x 43.1x 4.4x 39.4x n/a

Micros Systems MCRS $3,771.2 $2,958.9 $1,079.1 56.0% 22.7% 9.9% 2.7x 12.1x 2.4x 10.1x -4.1%

PROS Holdings PRO $381.4 $310.5 $106.6 72.7% 10.5% 31.5% 2.9x 27.8x 2.6x 15.3x -14.5%

Sapiens International SPNS $142.5 $127.0 $82.6 41.8% 13.5% 54.0% 1.5x 11.4x n/a n/a -3.0%

The Active Network, Inc. ACTV $857.6 $776.0 $381.7 53.8% 2.5% 24.6% 2.0x 82.5x 1.7x 13.9x -19.2%

Tyler Technologies, Inc. TYL $1,194.0 $1,259.4 $333.4 46.0% 18.3% 12.5% 3.8x 20.7x 3.3x 16.0x 54.6%

Median: $1,175.9 $1,129.9 $333.4 56.0% 13.9% 24.6% 2.7x 20.6x 2.5x 12.5x -3.6%





EBITDA Margin 13.9%




Current Ratio 1.3x

Quick Ratio 1.2x






Cash from Operations Growth (YoY) -9.8%









-5%

0%

5%

10%

15%

20%

25%

30%

Vertical - Other Software Stock Market Return: Jan - Jul 2012

Vertical - Other S&P NASDAQ SEG Internet Index


26/43


SEG SaaS Index



27/43

SEG Software Index: All Categories

Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

SEG SaaS Index $830.1 $806.0 $169.0 69.8% 9.1% 27.3% 5.6x 40.0x 4.7x 23.2x 18.2% CRM & Marketing $775.0 $683.1 $188.1 74.3% 7.4% 27.2% 4.6x 37.9x 3.7x 21.2x -13.0%

ERP & Supply Chain $401.1 $365.6 $65.7 69.8% 8.1% 26.8% 5.6x 81.4x 5.8x 30.5x 39.1%

Vertically Focused $1,426.2 $1,373.5 $333.5 60.4% 14.2% 30.3% 5.0x 31.1x 4.4x 15.9x 18.2%

Workforce Management $915.4 $849.5 $193.7 58.2% -1.2% 26.6% 5.0x 49.5x 4.3x 35.0x 19.0%

Category Name





EBITDA Margin 9.1%

Net Income Margin -0.5%



Current Ratio 1.8x

Quick Ratio 1.7xCash as Percent of Market Cap 8.9%














-5%

0%

5%

10%

15%

20%

25%

30%

35%

SEG SaaS Index Software Stock Market Return: Jan - Jul 2012

DOW S&P NASDAQ SEG SaaS


28/43

SEG SaaS Index Category: CRM & Marketing


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Constant Contact CTCT $511.1 $430.0 $233.9 71.1% 10.4% 20.0% 1.8x 17.7x 1.6x 10.6x -6.5%

ExactTarget, Inc. ET $1,546.8 $1,335.3 $227.5 65.1% -2.1% n/a 5.9x n/a 4.7x 264.2x n/a

LivePerson LPSN $1,003.7 $895.8 $146.1 77.5% 16.2% 21.4% 6.1x 37.9x 5.3x 21.5x 48.2%

Responsys MKTG $546.3 $450.6 $148.7 52.9% 13.1% 27.2% 3.0x 23.2x 2.6x 15.6x -22.0%

Salesforce.com CRM $17,370.1 $17,209.8 $2,457.6 78.1% 4.3% 37.7% 7.0x 162.5x 5.4x 30.0x -13.0%

Vocus VOCS $418.8 $470.4 $137.9 80.4% 0.8% 29.9% 3.4x 421.1x 2.4x 21.0x -37.8%

Median: $775.0 $683.1 $188.1 74.3% 7.4% 27.2% 4.6x 37.9x 3.7x 21.2x -13.0%





EBITDA Margin 7.4%




Current Ratio 3.7x















-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

CRM & Marketing SaaS Stock Market Return: Jan - Jul 2012

CRM & Marketing S&P NASDAQ SEG Internet Index


29/43

SEG SaaS Index Category: ERP & Supply Chain


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Ariba, Inc. ARBA $4,270.0 $4,052.4 $516.8 66.1% 8.1% 27.3% 7.8x 96.4x 6.9x 26.1x 34.7%

E2open, Inc. EOPN $316.8 $319.0 $63.9 65.3% 1.6% n/a 5.0x 303.6x n/a n/a n/a

Netsuite N $3,946.8 $3,782.3 $269.1 69.8% -5.6% 26.3% 14.1x n/a 11.2x 108.4x 43.4%

SciQuest SQI $372.4 $312.6 $57.6 72.3% 11.6% 22.0% 5.4x 46.9x 4.3x 25.0x -1.1%

SPS Commerce SPSC $401.1 $365.6 $65.7 73.2% 8.4% 31.5% 5.6x 66.4x 4.7x 34.9x 76.3%

Median: $401.1 $365.6 $65.7 69.8% 8.1% 26.8% 5.6x 81.4x 5.8x 30.5x 39.1%





EBITDA Margin 8.1%




Current Ratio 1.5x















-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

ERP & Supply Chain SaaS Stock Market Return: Jan - Jul 2012

ERP & Supply Chain S&P NASDAQ SEG Internet Index


30/43

SEG SaaS Index Category: Vertically Focused


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Athenahealth, Inc ATHN $3,331.7 $3,176.3 $376.3 61.1% 13.4% 34.2% 8.4x 63.1x 6.5x 32.1x 57.4%DealerTrack TRAK $1,238.4 $1,137.7 $375.1 43.4% 15.1% 28.7% 3.0x 20.1x 2.9x 11.2x 25.8%

Ebix Inc. EBIX $793.6 $806.0 $178.2 80.0% 42.4% 18.2% 4.5x 10.7x 4.1x 9.6x 10.5%

RealPage RP $1,614.0 $1,609.4 $292.0 59.7% 13.1% 32.0% 5.5x 42.0x 4.7x 20.7x -8.6%

Median: $1,426.2 $1,373.5 $333.5 60.4% 14.2% 30.3% 5.0x 31.1x 4.4x 15.9x 18.2%





EBITDA Margin 14.2%




Current Ratio 2.7x















-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Vertically Focus ed SaaS Stock Market Return: Jan - Jul 2012

Vertically Focused S&P NASDAQ SEG Internet Index


31/43

SEG SaaS Index Category: Workforce Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Callidus Software Inc. CALD $153.9 $174.8 $89.4 44.7% -11.5% 15.0% 2.0x n/a 1.8x 37.7x -13.6%Cornerstone OnDemand CSOD $1,164.7 $1,082.1 $81.3 71.0% -25.5% 63.2% 13.3x n/a 8.5x n/a 42.7%

Kenexa KNXA $666.2 $617.0 $318.0 60.0% 9.1% 32.1% 1.9x 21.4x 1.6x 9.7x -4.7%

The Ultimate Software Group, Inc. ULTI $2,459.8 $2,399.6 $297.9 56.5% 10.4% 21.0% 8.1x 77.5x 6.9x 35.0x 69.9%

Median: $915.4 $849.5 $193.7 58.2% -1.2% 26.6% 5.0x 49.5x 4.3x 35.0x 19.0%





EBITDA Margin -1.2%




Current Ratio 1.2x















-5%

0%

5%

10%

15%

20%

25%

30%

Workforc e Management SaaS Stock Market Return: Jan - Jul 2012

Workforce Management S&P NASDAQ SEG Internet Index


32/43

SEG SaaS Index Category: Other Publ ic SaaS Companies


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Bazaarvoice, Inc BV $958.3 $833.1 $106.1 65.7% -19.4% 64.6% 7.8x n/a 5.9x n/a n/aConcur CNQR $3,718.9 $3,489.0 $417.1 71.7% 11.9% 25.7% 8.4x 70.2x 7.1x 30.3x 49.4%

Demandware, Inc. DWRE $728.8 $624.3 $66.5 66.7% -3.5% 45.0% 9.4x n/a 8.0x n/a n/a

Ellie Mae ELLI $514.8 $485.2 $77.9 75.0% 20.6% 67.0% 6.2x 30.2x 6.0x 38.8x 262.6%

IntraLinks Holdings IL $233.4 $248.1 $211.7 71.5% 6.5% 2.9% 1.2x 18.0x 1.2x 7.9x -71.9%

Medidata Solutions MDSO $786.3 $675.3 $197.4 71.5% 17.9% 10.0% 3.4x 19.1x 3.1x 11.6x 52.6%

OpenTable, Inc. OPEN $830.1 $772.3 $150.4 72.7% 28.5% 22.0% 5.1x 18.0x 4.6x 10.9x -48.1%

Service-now.com NOW $3,054.2 $3,027.0 $169.0 59.8% -6.7% n/a 17.9x n/a 11.7x n/a n/a

Zix Corporation ZIXI $148.8 $130.0 $40.1 81.8% 31.5% 11.1% 3.2x 10.3x 2.8x 11.3x -36.5%

Median: $786.3 $675.3 $150.4 71.5% 11.9% 23.9% 6.2x 18.6x 5.9x 11.5x 6.5%





EBITDA Margin 11.9%




Current Ratio 2.6x















-10%

0%

10%

20%

30%

40%

50%

Other Public SaaS Companies SaaS Stock Market Return: Jan - Jul 2012

Other SaaS S&P NASDAQ SEG SaaS


33/43


SEG Internet Index



34/43

SEG Internet Index: Al l Categories

Category Name Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

SEG Internet Index $1,033.6 $748.0 $400.7 68.2% 13.2% 27.9% 2.0x 13.3x 1.7x 9.0x -24.3% Ad Tech & Lead Generation $1,324.1 $1,287.6 $488.8 68.7% 14.4% 34.5% 2.0x 13.8x 1.5x 8.7x -22.8%

Commerce $347.8 $254.7 $381.0 37.0% 8.1% 14.8% 0.7x 14.3x 0.7x 9.4x -11.9%

Content & Media $1,595.5 $1,366.9 $345.2 51.9% 12.9% 12.3% 1.6x 11.2x 1.3x 7.4x -21.0%

Gaming $1,805.27 $970.3 $998.6 73.0% 45.5% 39.2% 1.8x 2.9x 1.0x 3.7x -41.9%

Infrastructure $428.47 $335.0 $232.1 66.6% 9.6% 13.6% 1.4x 14.2x 1.1x 9.3x -31.4%

Services $1,145.63 $1,063.4 $324.6 70.1% 10.6% 41.9% 2.6x 13.3x 2.2x 9.9x -6.6%

Social $1,464.76 $1,130.0 $328.9 74.0% 12.6% 70.3% 10.5x 33.9x 7.2x 31.0x -40.7%

Travel $1,812.04 $1,221.5 $595.4 82.0% 18.8% 24.0% 2.5x 16.8x 4.0x 13.3x -27.4%





EBITDA Margin 13.2%




Current Ratio 2.5x















-5%

0%

5%

10%

15%

20%

25%

SEG Internet Index Software Stock Market Return: Jan - Jul 2012

SEG Internet Index S&P NASDAQ SEG SW Index


35/43


36/43

SEG Internet Index Category: Commerce


TTM

Revenue

TTM

Gross

Margin

TTM

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 $221.6 $229.8 $737.0 40.3% 5.1% 12.5% 0.3x 6.1x 0.3x 5.0x 13.6%Amazon.com, Inc. AMZN $106,728.0 $101,758.0 $54,326.0 23.3% 3.6% 34.9% 1.9x 52.5x 1.4x 26.8x 6.1%

Bitauto Holdings Limited BITA $168.0 $80.5 $117.2 70.6% 13.7% 48.3% 0.7x 5.0x 0.5x 3.3x -39.4%

Bluefly, Inc. BFLY $34.3 $31.8 $98.9 24.1% -16.7% 9.8% 0.3x n/a n/a n/a n/a

BlueNile NILE $349.9 $289.4 $361.4 19.5% 3.7% 5.4% 0.8x 21.8x 0.7x 12.2x -40.3%

DangDang DANG $399.5 $178.4 $637.2 13.0% -9.1% 59.3% 0.3x n/a 0.2x n/a -55.8%

Digital River Inc. DRIV $645.5 $298.3 $400.7 84.0% 14.4% 7.3% 0.7x 5.2x 0.7x 3.4x -31.4%

eBay Inc. EBAY $58,763.4 $55,091.4 $13,020.7 69.9% 28.9% 29.5% 4.2x 14.7x 3.7x 11.1x 39.2%

Liquidity Services, Inc. LQDT $1,371.6 $1,307.9 $432.2 45.9% 21.1% 40.6% 3.0x 14.3x 2.6x 11.3x 81.8%

Mecox Lane Limited MCOX $56.9 $4.0 $206.9 33.8% -14.3% -8.6% 0.0x n/a 0.0x n/a -66.8%

Mercadolibre, Inc. MELI $3,090.3 $2,935.9 $340.7 74.8% 36.3% 36.8% 8.6x 23.7x 7.2x 19.6x -11.9%

Overstock.com, Inc. OSTK $185.9 $142.9 $1,055.7 17.0% 0.8% -3.6% 0.1x 16.5x 0.1x 5.5x -37.5%

PetMed Express, Inc. PETS $197.0 $129.2 $233.6 33.5% 11.2% 1.2% 0.6x 5.0x 0.6x 5.1x -10.8%

Stamps.com STMP $345.7 $279.6 $108.7 75.0% 18.7% 17.1% 2.6x 13.8x 2.3x 9.4x 25.4%

Median: $347.8 $254.7 $381.0 37.0% 8.1% 14.8% 0.7x 14.3x 0.7x 9.4x -11.9%





EBITDA Margin 8.1%




Current Ratio 3.1x















-10%

-5%

0%

5%

10%

15%

20%

25%

30%Internet Commerce Software Stock Market Return: Jan - Jul 2012

Commerce S&P NASDAQ SEG Internet Index


37/43

SEG Internet Index Category: Content & Media


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

AOL, Inc. AOL $2,951.3 $1,605.2 $2,169.0 27.8% 20.6% -3.8% 0.7x 3.6x 0.7x 4.3x 82.9%DemandMedia DMD $853.8 $758.2 $345.2 51.9% 18.3% 15.9% 2.2x 12.0x 2.0x n/a 8.2%

InterActiveCorp IACI $4,664.7 $3,920.6 $2,435.0 64.4% 14.4% 34.5% 1.6x 11.2x 1.3x 7.3x 28.7%

Netflix NFLX $3,207.1 $2,793.8 $3,456.4 31.2% 6.6% 30.1% 0.8x 12.3x 0.7x 15.4x -78.3%

Pandora P $1,595.5 $1,515.0 $304.1 34.0% -6.8% 81.9% 5.0x n/a 3.3x n/a -36.4%

TheStreet.com, Inc. TST $48.8 $13.6 $53.9 53.9% -6.0% -7.3% 0.3x n/a n/a n/a -47.3%

Tudou Holdings Limited TUDO $765.9 $668.7 $98.8 -0.6% -52.6% n/a 6.8x n/a 4.0x n/a n/a

WebMD Health Corp. WBMD $842.7 $500.7 $505.4 58.5% 12.9% -12.4% 1.0x 7.7x 1.1x 7.4x -57.2%

XO Group XOXO $220.1 $151.9 $127.2 81.4% 13.2% 8.7% 1.2x 9.1x 1.1x 5.8x -5.5%

Yahoo! Inc. YHOO $19,540.3 $17,803.3 $4,979.8 69.2% 26.2% -10.6% 3.6x 13.6x 4.0x 10.5x 22.0%

Youku YOKU $1,940.1 $1,366.9 $193.4 25.6% -0.9% 107.3% 7.1x n/a n/a n/a -54.2%

Median: $1,595.5 $1,366.9 $345.2 51.9% 12.9% 12.3% 1.6x 11.2x 1.3x 7.4x -21.0%





EBITDA Margin 12.9%




Current Ratio 2.1x















-5%

0%

5%

10%

15%

20%

25%Internet Content & Media Software Stock Market Return: Jan - Jul 2012

Content & Media S&P NASDAQ SEG Internet Index


38/43

SEG Internet Index Category: Gaming


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

ChangYou.com CYOU $958.8 $620.5 $558.7 84.6% 64.7% 47.2% 1.1x 1.7x 1.0x 2.0x -64.9%Giant Interactive GA $1,056.7 $771.1 $313.0 90.3% 65.2% 28.7% 2.5x 3.8x 2.2x 3.9x -41.9%

Netease NTES $6,957.8 $4,745.9 $1,231.0 67.9% 49.9% 32.7% 3.9x 7.7x 3.3x 6.6x 5.2%

NCSoft KOSE:A036 $3,922.0 $3,475.5 $1,035.9 75.0% n/a 85.8% 3.4x n/a n/a n/a -35.9%

Perfect World PWRD $451.5 $304.5 $473.5 83.3% 38.8% 20.4% 0.6x 1.7x 0.6x 2.0x -51.9%

Sohu.com Inc. SOHU $1,324.1 $748.0 $961.3 68.7% 38.2% 35.3% 0.8x 2.0x 0.7x 3.6x -61.3%

Tencent Holdings SEHK:700 $54,257.1 $51,201.6 $5,047.7 63.6% 45.5% 46.2% 10.1x 22.3x n/a n/a 14.2%

Zynga, Inc. ZNGA $2,286.5 $1,169.5 $1,271.5 71.0% -36.0% 43.1% 0.9x n/a 1.0x 6.7x n/a

Median: $1,805.3 $970.3 $998.6 73.0% 45.5% 39.2% 1.8x 2.9x 1.0x 3.7x -41.9%





EBITDA Margin 45.5%




Current Ratio 2.4x















-30%

-20%

-10%

0%

10%

20%

30%

40%Internet Gaming Software Stock Market Return: Jan - Jul 2012

Gaming S&P NASDAQ SEG Internet Index


39/43

SEG I t t I d C t S i


40/43

SEG Internet Index Category: Services


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Ancestory.com ACOM $1,400.0 $1,330.4 $434.9 83.0% 32.7% 22.7% 3.1x 9.3x 2.6x 7.0x -7.8%Angie's List, Inc. ANGI $761.3 $699.6 $119.1 71.4% -45.5% 69.7% 5.9x n/a 3.7x n/a n/a

Bankrate RATE $1,727.7 $1,856.9 $473.8 68.7% 29.4% 37.2% 3.9x 13.3x 3.3x 10.7x -5.5%

Carbonite, Inc. CARB $227.7 $159.6 $72.1 63.0% -22.7% 46.7% 2.2x n/a 1.8x n/a n/a

Monster Worldwide, Inc. MWW $859.7 $820.7 $992.1 52.1% 13.8% -2.3% 0.8x 6.0x 0.8x 5.2x -39.6%

Qihoo QIHU $1,770.0 $1,408.2 $214.2 88.9% 27.3% 202.1% 6.6x 24.1x 4.2x 11.3x -35.7%

Shutterfly SFLY $1,200.3 $1,082.2 $530.6 52.7% 9.6% 52.4% 2.0x 21.1x 1.7x 10.5x -38.6%

Tree.Com, Inc. TREE $151.6 $92.6 $54.0 94.1% -23.2% -7.3% 1.7x n/a 1.1x 9.3x 141.5%

VistaPrint VPRT $1,163.5 $1,330.3 $1,020.3 65.2% 11.2% 24.9% 1.3x 11.6x 1.1x 8.9x 27.7%

Zillow Z $1,127.8 $1,044.7 $89.5 85.9% 10.0% 99.4% 11.7x 116.3x 8.7x 50.4x 21.4%

Median: $1,145.6 $1,063.4 $324.6 70.1% 10.6% 41.9% 2.6x 13.3x 2.2x 9.9x -6.6%





EBITDA Margin 10.6%




Current Ratio 1.7x















-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Internet Services Software Stock Market Return: Jan - Jul 2012

Services S&P NASDAQ SEG Internet Index

SEG I t t I d C t S i l


41/43

SEG Internet Index Category: Social


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Facebook FB $49,496.7 $40,014.7 $4,327.0 74.0% 24.2% n/a 9.2x 38.2x 7.2x 13.3x n/aFriendFinder Networks Inc FFN $27.7 $479.5 $328.9 65.4% 22.1% -4.2% 1.5x 6.6x n/a n/a -79.1%

Jive Software, Inc JIVE $1,254.2 $1,100.8 $95.6 57.4% -36.6% 56.8% 11.5x n/a n/a n/a n/a

LinkedIn LNKD $10,761.9 $10,141.1 $723.9 85.9% 12.6% 101.9% 14.0x 111.3x n/a 48.8x 3.1%

Mail.ru Group LSE:MAIL $6,286.9 $6,135.1 $505.9 75.2% 41.0% 83.8% 12.1x 29.6x n/a n/a -15.8%

Renren Inc RENN $1,464.8 $414.1 $143.9 68.2% -39.4% n/a 2.9x n/a 2.1x n/a -65.7%

Yelp, Inc. YELP $1,260.7 $1,130.0 $107.2 92.7% -12.6% n/a 10.5x n/a 7.8x n/a n/a

Median: $1,464.8 $1,130.0 $328.9 74.0% 12.6% 70.3% 10.5x 33.9x 7.2x 31.0x -40.7%





EBITDA Margin 12.6%




Current Ratio 2.7x















-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%Internet Social Software Stock Market Return: Jan - Jul 2012

Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


42/43

SEG Internet Index Category: Travel


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Ctrip CTRP $1,812.0 $1,177.5 $595.4 75.8% 25.8% 18.4% 2.0x 7.7x 1.7x 6.0x -72.7%Expedia EXPE $7,617.8 $6,581.0 $3,664.1 77.6% 18.8% 17.3% 1.8x 9.6x 1.6x 8.1x -11.5%

HomeAway AWAY $1,947.3 $1,726.1 $255.3 84.7% 18.1% 27.2% 6.8x 37.4x 5.6x 18.6x -39.7%

Kayak Software Corp KYAK $1,264.3 $1,221.5 $245.2 92.3% 17.1% 31.4% 5.0x 29.1x 4.0x 17.1x n/a

MakeMyTrip MMYT $599.4 $512.3 $208.7 28.7% 2.1% 45.9% 2.5x 115.3x 4.9x 28.6x -27.4%

Orbitz OWW $456.0 $708.8 $770.8 82.0% 13.8% 0.9% 0.9x 6.6x 0.9x 4.8x 34.4%

Priceline PCLN $33,985.7 $31,991.9 $4,807.6 74.3% 34.9% 31.9% 6.7x 19.1x 5.6x 15.2x 26.9%

Travelzoo TZOO $350.2 $295.7 $152.5 89.8% 25.9% 16.7% 1.9x 7.5x 1.8x 9.1x -58.4%

TripAdvisor Inc TRIP $5,125.4 $5,061.5 $699.5 98.3% 43.0% 24.0% 7.2x 16.8x 6.1x 13.3x n/a

Median: $1,812.0 $1,221.5 $595.4 82.0% 18.8% 24.0% 2.5x 16.8x 4.0x 13.3x -27.4%





EBITDA Margin 18.8%




Current Ratio 2.1x















-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Internet Travel Software Stock Market Return: Jan - Jul 2012

Travel S&P NASDAQ SEG Internet Index
http://www.softwareequity.com/


43/43
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Documents

SEG Monthly Flash Report August 2012