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Software Equity Group, L.L.C.
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January 2010
Software Equity Group Flash Report
Selected M&A Transactionsand
Financial and Stock Market Performance
Public Software Companies By Product Category
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
San Diego, CA 92130
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Public SaaS Companies
Public Internet Companies By Product Category
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CAD Computer-aided Design
CAM Computer-aided Manufacturing
CRM Customer Relationship Management
EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization
EV Enterprise Value
FCF Free Cash Flow
FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates
HR Human Resources
NASDAQ National Association of Securities Dealers Automated Quotation SystemOS Operating System
PLM Product Lifecycle Management
R&D Research and Development
S&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
List of Commonly Used Acronyms
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
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Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
December 2009
Selected Software Industry M&A Transactions
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Category Performance
SEG Software Index
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SEG Software Index Category: Billing and Service Provisioning
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
Return
Amdocs Limited DOX $5,958.64 $4,786.62 $2,862.61 35.9% 20.5% -9.5% 1.7x 8.2x 1.7x 7.2x 58.4%
AsiaInfo Holdings, Inc. ASIA $1,424.16 $1,199.99 $226.76 52.8% 14.1% 39.4% 5.3x 37.6x 7.6x 38.9x 167.6%
CSG Systems International, Inc. CSGS $674.09 $672.47 $496.54 48.0% 22.6% 7.5% 1.4x 6.0x 1.4x 5.4x 12.5%
MIND C.T.I. Ltd. MNDO $17.90 -$13.58 $17.24 66.1% 14.0% -15.5% n/a n/a n/a n/a 29.3%
Median: $1,049.12 $936.23 $361.65 50.4% 17.3% -1.0% 1.7x 8.2x 1.7x 7.2x 43.8%
TTM Revenue Growth -1.0%
TTM EBITDA Growth 2.5%
TTM Earnings Growth 6.2%
Gross Profit Margin 50.4%
EBITDA Margin 17.3%
Net Income Margin 11.7%
SG&A Expenses as a % of Total Revenue 18.6%
R&D Expenses as a % of Total Revenue 14.5%
Current Ratio 3.0
Quick Ratio 2.7
Cash as Percent of Market Cap 21.5%
Avg Days Outstanding: Accounts Receivable 90
Avg Days Outstanding: Accounts Payable 32
Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 7.1%
Cash from Operations Growth (YoY) 4.2%
Cash from Investing Growth (YoY) 31.9%
Cash from Financing Growth (YoY) -57.6%
Levered FCF Growth (YoY) 32.9%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Billing & Service Provisioning Software Stock Market Return: 2009
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60%
80%
100%
Billing & Service Provisioning SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Business Intelligence
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
Return
Actuate Corporation ACTU $197.92 $158.28 $121.34 83.3% 17.7% -11.4% 1.3x 7.4x 1.2x 6.3x 51.4%
Datawatch Corporation DWCH $14.34 $8.69 $19.62 72.6% 10.7% -14.8% 0.4x 4.1x n/a n/a 105.1%
Informatica Corporation INFA $2,360.59 $2,138.20 $474.21 83.7% 22.6% 6.5% 4.5x 20.0x 4.7x 21.6x 91.8%
MicroStrategy Incorporated MSTR $1,130.37 $929.70 $367.02 82.8% 23.5% 1.8% 2.5x 10.8x 2.6x 12.4x 162.9%
Pegasystems Inc. PEGA $1,291.80 $1,093.44 $250.42 65.2% 16.2% 25.8% 4.4x 26.9x 5.3x n/a 192.5%
PROS Holdings PRO $263.70 $207.77 $71.63 73.2% 15.3% -2.7% 2.9x 18.9x 2.7x 11.2x 84.0%
Median: $697.04 $568.73 $185.88 78.0% 17.0% -0.5% 2.7x 14.9x 2.7x 11.8x 98.4%
TTM Revenue Growth -0.5%
TTM EBITDA Growth 25.5%
TTM Earnings Growth -10.7%
Gross Profit Margin 78.0%
EBITDA Margin 17.0%
Net Income Margin 11.3%
SG&A Expenses as a % of Total Revenue 48.6%
R&D Expenses as a % of Total Revenue 15.3%
Current Ratio 2.2
Quick Ratio 2.0
Cash as Percent of Market Cap 19.6%
Avg Days Outstanding: Accounts Receivable 70
Avg Days Outstanding: Accounts Payable 28
Working Capital to TTM Operating Expense Ratio 0.7
Levered FCF Margin 9.5%
Cash from Operations Growth (YoY) 4.3%
Cash from Investing Growth (YoY) -26.5%
Cash from Financing Growth (YoY) -71.3%Levered FCF Growth (YoY) -20.0%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median)Business Intelligence Software Stock Market Return: 2009
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0%
20%
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60%
80%
100%
120%
Business Intelligence SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Content & Document 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
Return
Adobe Systems Incorporated ADBE $19,489.11 $18,584.64 $2,945.85 89.9% 33.8% -17.7% 6.3x 18.7x 6.3x 15.3x 76.8%
Datawatch Corporation DWCH $14.34 $8.69 $19.62 72.6% 10.7% -14.8% 0.4x 4.1x n/a n/a 105.1%
EasyLink Services International ESIC $45.72 $57.97 $83.05 70.0% 23.0% -11.6% 0.7x 3.0x n/a n/a 30.8%
Ninetowns Internet Tech Grp Ltd. NINE $64.07 -$29.63 $14.53 68.6% -19.2% -8.8% n/a n/a n/a n/a 115.4%
Open Text Corporation OTEX $2,286.25 $2,356.96 $814.46 73.6% 25.9% 9.4% 2.9x 11.2x 3.0x 11.3x 32.5%
Median: $64.07 $57.97 $83.05 72.6% 23.0% -11.6% 1.8x 7.7x 4.6x 13.3x 76.8%
TTM Revenue Growth -11.6%
TTM EBITDA Growth 12.3%
TTM Earnings Growth -55.7%
Gross Profit Margin 72.6%
EBITDA Margin 23.0%
Net Income Margin -6.6%
SG&A Expenses as a % of Total Revenue 48.3%
R&D Expenses as a % of Total Revenue 14.6%
Current Ratio 1.4
Quick Ratio 1.3
Cash as Percent of Market Cap 32.6%
Avg Days Outstanding: Accounts Receivable 58
Avg Days Outstanding: Accounts Payable 35
Working Capital to TTM Operating Expense Ratio 0.1
Levered FCF Margin 25.8%
Cash from Operations Growth (YoY) 21.4%
Cash from Investing Growth (YoY) n/a
Cash from Financing Growth (YoY) 73.2%Levered FCF Growth (YoY) 207.6%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Content & Document Management Software Stock Market Return: 2009
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80%
100%
Content & Document Management SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: CRM, Marketing, and Sales
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
Return
Astea International Inc. ATEA $11.20 $8.23 $20.42 38.6% -4.8% -17.5% 0.4x n/a n/a n/a 52.9%
Blackbaud, Inc. BLKB $1,071.32 $1,068.43 $310.82 60.3% 18.6% 6.4% 3.4x 18.5x 3.5x n/a 84.1%
CDC Software Corporation CDCS $262.99 $201.42 $203.87 52.6% 17.9% 0.8% 1.0x 5.5x n/a n/a n/a
Chordiant Software, Inc. CHRD $88.35 $38.49 $77.46 70.8% -3.0% -31.4% 0.5x n/a 0.5x 15.3x 26.5%
Rainmaker Systems Inc. RMKR $30.69 $16.27 $50.46 43.1% -9.4% -30.9% 0.3x n/a 0.2x n/a 68.2%
Unica Corporation UNCA $160.79 $110.48 $100.62 74.2% 0.6% -16.9% 1.1x 175.6x 1.1x n/a 58.3%
Median: $124.57 $74.48 $89.04 56.4% -1.2% -17.2% 0.7x 18.5x 0.8x 15.3x 58.3%
TTM Revenue Growth -17.2%
TTM EBITDA Growth -26.4%
TTM Earnings Growth -70.0%
Gross Profit Margin 56.4%
EBITDA Margin -1.2%
Net Income Margin -9.2%
SG&A Expenses as a % of Total Revenue 31.5%
R&D Expenses as a % of Total Revenue 17.1%
Current Ratio 1.5
Quick Ratio 1.3
Cash as Percent of Market Cap 28.9%
Avg Days Outstanding: Accounts Receivable 88
Avg Days Outstanding: Accounts Payable 86
Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin -0.4%
Cash from Operations Growth (YoY) 19.1%
Cash from Investing Growth (YoY) 88.0%
Cash from Financing Growth (YoY) -174.2%
Levered FCF Growth (YoY) -44.2%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median)CRM, Marketing, & Sales Software Stock Market Return: 2009
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CRM, Marketing, & Sales SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Database and File 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
Return
BMC Software, Inc. BMC $7,392.53 $6,512.63 $1,879.50 78.6% 33.7% 2.7% 3.5x 10.3x 3.5x 8.6x 48.1%
Double-Take Software DBTK $221.19 $131.80 $85.42 89.2% 18.1% -10.0% 1.5x 8.5x 1.4x 5.4x 20.9%
Guidance Software, Inc. GUID $123.28 $93.10 $79.26 72.1% -12.7% -10.7% 1.2x n/a 1.0x n/a 43.8%
Informatica Corporation INFA $2,360.59 $2,138.20 $474.21 83.7% 22.6% 6.5% 4.5x 20.0x 4.7x 21.6x 91.8%
Oracle Corporation ORCL $125,330.61 $119,298.61 $23,225.00 81.1% 47.6% -1.3% 5.1x 10.8x 5.1x 10.5x 40.3%
Pervasive Software Inc. PVSW $85.52 $45.08 $47.53 88.1% 16.7% 7.6% 0.9x 5.7x 1.0x 5.0x 26.5%
Quest Software, Inc. QSFT $1,667.23 $1,372.86 $702.30 90.5% 22.9% -2.5% 2.0x 8.5x 1.9x 7.7x 46.2%
Sybase, Inc. SY $3,582.52 $3,226.79 $1,143.98 71.2% 28.5% 2.0% 2.8x 9.9x 2.9x 9.8x 82.2%
Versant Corporation VSNT $53.54 $25.73 $18.15 89.8% 27.2% -28.3% 1.4x 5.2x n/a n/a 1.3%
Median: $1,667.23 $1,372.86 $474.21 83.7% 22.9% -1.3% 2.0x 9.2x 2.4x 8.6x 43.8%
TTM Revenue Growth -1.3%
TTM EBITDA Growth 18.5%
TTM Earnings Growth 0.9%
Gross Profit Margin 83.7%
EBITDA Margin 22.9%
Net Income Margin 13.9%
SG&A Expenses as a % of Total Revenue 46.4%
R&D Expenses as a % of Total Revenue 17.9%
Current Ratio 2.4
Quick Ratio 2.2
Cash as Percent of Market Cap 24.5%
Avg Days Outstanding: Accounts Receivable 72
Avg Days Outstanding: Accounts Payable 32
Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 16.1%
Cash from Operations Growth (YoY) 1.2%
Cash from Investing Growth (YoY) 46.5%
Cash from Financing Growth (YoY) -138.3%Levered FCF Growth (YoY) -12.3%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Database & File Management Software Stock Market Return: 2009
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30%
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50%
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Database & File Management SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Development Tools, OS, and App Testing
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
Return
BSQUARE Corporation BSQR $23.82 $13.35 $66.26 25.2% 1.5% 3.1% 0.2x 13.6x n/a n/a 0.7%
Google Inc. GOOG $196,517.26 $174,522.87 $22,677.64 62.0% 40.7% 8.4% 7.7x 18.9x 8.0x 18.9x 104.3%
Magic Software Enterprises Ltd. MGIC $71.12 $34.36 $55.94 52.2% 12.8% -10.6% 0.6x 4.8x n/a n/a 89.0%
Microsoft Corporation MSFT $278,715.61 $251,244.61 $56,296.00 78.4% 38.7% -8.8% 4.5x 11.5x 4.2x 10.7x 62.3%
Phoenix Technologies Ltd. PTEC $101.21 $67.10 $67.70 85.8% -28.6% -8.1% 1.0x n/a 1.0x n/a -6.8%
Progress Software Corporation PRGS $1,168.77 $983.36 $496.77 85.1% 17.5% -3.2% 2.0x 11.3x 2.0x n/a 53.0%
Red Hat, Inc. RHT $5,821.06 $5,099.62 $689.58 84.5% 19.9% 15.3% 7.4x 37.1x 7.8x 29.5x 135.0%
SourceForge, Inc. LNUX $72.57 $37.97 $61.19 30.8% -9.2% 12.1% 0.6x n/a n/a n/a 40.8%
Median: $634.99 $525.23 $282.23 70.2% 15.1% 0.0% 1.5x 12.6x 4.2x 18.9x 57.7%
TTM Revenue Growth 0.0%
TTM EBITDA Growth -15.8%
TTM Earnings Growth -61.6%
Gross Profit Margin 70.2%
EBITDA Margin 15.1%
Net Income Margin 5.7%
SG&A Expenses as a % of Total Revenue 37.0%
R&D Expenses as a % of Total Revenue 14.1%
Current Ratio 2.1
Quick Ratio 1.9
Cash as Percent of Market Cap 25.3%
Avg Days Outstanding: Accounts Receivable 67
Avg Days Outstanding: Accounts Payable 46
Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 15.9%
Cash from Operations Growth (YoY) 4.4%
Cash from Investing Growth (YoY) -97.2%
Cash from Financing Growth (YoY) -61.3%Levered FCF Growth (YoY) 28.9%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median)Development Tools, OS, and App Testing Software Stock Market Return: 2009
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SEG Software Index Category: eCommerce Enablement Software
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
Return
Art Technology Group, Inc. ARTG $582.73 $508.76 $175.12 65.6% 14.1% 10.4% 2.9x 20.5x 3.2x 24.2x 163.8%
CyberSource Corporation CYBS $1,438.19 $1,331.64 $251.30 52.9% 18.4% 18.4% 5.3x 28.7x 5.9x 29.6x 77.3%
Imergent, Inc. IIG $69.02 $48.81 $84.52 68.8% -4.0% -31.2% 0.6x n/a n/a n/a 48.9%
Optimal Group Inc. OPMR $8.50 $4.33 $96.40 30.0% -30.6% -3.3% n/a n/a n/a n/a -26.7%
VeriSign, Inc. VRSN $4,695.14 $3,884.40 $1,008.11 77.2% 38.6% 7.9% 3.9x 10.0x 4.1x 8.9x 27.3%
Median: $582.73 $508.76 $175.12 65.6% 14.1% 7.9% 3.4x 20.5x 4.1x 24.2x 48.9%
TTM Revenue Growth 7.9%
TTM EBITDA Growth 44.7%
TTM Earnings Growth 119.0%
Gross Profit Margin 65.6%
EBITDA Margin 14.1%
Net Income Margin 5.7%
SG&A Expenses as a % of Total Revenue 39.6%
R&D Expenses as a % of Total Revenue 9.3%
Current Ratio 1.8
Quick Ratio 1.6
Cash as Percent of Market Cap 29.4%
Avg Days Outstanding: Accounts Receivable 59
Avg Days Outstanding: Accounts Payable 28
Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 8.3%
Cash from Operations Growth (YoY) 10.9%
Cash from Investing Growth (YoY) 114.5%
Cash from Financing Growth (YoY) -87.9%Levered FCF Growth (YoY) 108.0%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median)eCommerce Enablement Software Stock Market Return: 2009
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eCommerce Enablement SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Education and eLearning
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
Return
Archipelago Learning, Inc. ARCL $499.13 $551.72 $42.43 92.1% 36.3% 32.3% 13.0x 35.8x n/a n/a n/a
Blackboard Inc. BBBB $1,506.93 $1,529.49 $361.99 70.1% 21.7% 24.7% 4.2x 19.4x 4.9x 26.1x 78.4%
GSE Systems Inc. GVP $102.20 $80.48 $37.36 25.9% 6.0% 29.9% 2.2x 35.7x 2.8x n/a 4.9%
PLATO Learning, Inc. TUTR $103.39 $75.22 $65.18 57.3% 20.6% -4.7% 1.2x 5.6x 1.2x 5.6x 242.4%
Renaissance Learning, Inc. RLRN $331.66 $300.06 $118.68 78.1% 24.2% 4.2% 2.5x 10.5x 2.6x 13.1x 26.7%
Rosetta Stone, Inc. RST $346.19 $275.02 $240.21 86.6% 7.5% 29.0% 1.1x 15.3x n/a n/a n/a
Saba Software, Inc. SABA $114.21 $93.16 $103.33 63.1% 8.6% -4.0% 0.9x 10.5x 0.9x 10.2x 195.0%
Scientific Learning Corporation SCIL $93.33 $76.42 $52.03 78.2% 12.5% 11.7% 1.5x 11.8x 1.6x n/a 209.6%
Median: $114.21 $93.16 $103.33 70.1% 12.5% 11.7% 1.5x 13.5x 2.1x 11.6x 136.7%
TTM Revenue Growth 11.7%
TTM EBITDA Growth 89.6%
TTM Earnings Growth 132.3%
Gross Profit Margin 70.1%
EBITDA Margin 12.5%
Net Income Margin 1.9%
SG&A Expenses as a % of Total Revenue 41.7%
R&D Expenses as a % of Total Revenue 12.2%
Current Ratio 1.0
Quick Ratio 1.0
Cash as Percent of Market Cap 18.9%
Avg Days Outstanding: Accounts Receivable 53
Avg Days Outstanding: Accounts Payable 34
Working Capital to TTM Operating Expense Ratio 0.0
Levered FCF Margin 7.0%
Cash from Operations Growth (YoY) 22.2%
Cash from Investing Growth (YoY) 45.4%
Cash from Financing Growth (YoY) 51.4%Levered FCF Growth (YoY) 37.2%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Education & eLearning Software Stock Market Return: 2009
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10%
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30%
40%
50%
60%
70%
Education & Computer Based Training SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Electronic Design Automation
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
Return
Cadence Design Systems, Inc. CDNS $1,626.05 $1,481.75 $859.69 79.3% -5.1% -32.3% 1.7x n/a 1.4x 14.8x 77.9%
Magma Design Automation, Inc. LAVA $116.73 $144.40 $123.26 72.7% -2.3% 5.8% 1.2x n/a n/a n/a 153.8%
Mentor Graphics Corporation MENT $903.41 $1,012.68 $808.23 86.6% 9.4% -2.8% 1.3x 13.3x 1.3x 13.3x 95.9%
PDF Solutions, Inc. PDFS $104.79 $71.88 $47.46 50.8% -31.9% -44.0% 1.5x n/a 0.9x n/a 180.1%
Synopsys, Inc. SNPS $3,280.15 $2,119.95 $1,360.05 82.3% 23.1% 1.7% 1.6x 6.8x 1.6x 5.0x 22.4%
Median: $903.41 $1,012.68 $808.23 79.3% -2.3% -2.8% 1.5x 10.0x 1.4x 13.3x 95.9%
TTM Revenue Growth -2.8%
TTM EBITDA Growth -131.4%
TTM Earnings Growth n/a
Gross Profit Margin 79.3%
EBITDA Margin -2.3%
Net Income Margin -69.9%
SG&A Expenses as a % of Total Revenue 49.9%
R&D Expenses as a % of Total Revenue 42.6%
Current Ratio 1.8
Quick Ratio 1.7
Cash as Percent of Market Cap 35.4%
Avg Days Outstanding: Accounts Receivable 126
Avg Days Outstanding: Accounts Payable 28
Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 9.2%
Cash from Operations Growth (YoY) -27.8%
Cash from Investing Growth (YoY) 67.4%
Cash from Financing Growth (YoY) -0.9%Levered FCF Growth (YoY) 283.1%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median)Electronic Design Automation Software Stock Market Return: 2009
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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/ Revenue EV/ EBITDA
Forward
EV/ Revenue
Forward
EV/ EBITDA
YoY Stock
Market
Return
ANSYS, Inc. ANSS $3,873.55 $3,813.64 $501.82 88.1% 46.9% 10.5% 7.6x 16.2x 7.7x 13.6x 53.9%
Autodesk, Inc. ADSK $5,860.16 $4,898.56 $1,747.40 88.8% 13.4% -27.9% 2.8x 20.9x 2.1x 7.9x 34.5%
Cadence Design Systems, Inc. CDNS $1,626.05 $1,481.75 $859.69 79.3% -5.1% -32.3% 1.7x n/a 1.4x 14.8x 77.9%
Cimatron Ltd. CIMT $10.90 $3.70 $33.60 80.3% 1.5% -16.9% 0.1x 7.3x n/a n/a 69.0%
Dassault Systmes DSY $6,756.26 $5,650.26 $1,851.45 84.2% 22.2% -1.5% 3.1x 13.7x n/a n/a 28.0%
DigitalGlobe, Inc. DGI $1,090.04 $1,336.84 $281.20 89.0% 56.3% 12.6% 4.8x 8.4x n/a n/a n/a
GSE Systems Inc. GVP $102.20 $80.48 $37.36 25.9% 6.0% 29.9% 2.2x 35.7x 2.8x n/a 4.9%
Magma Design Automation, Inc. LAVA $116.73 $144.40 $123.26 72.7% -2.3% 5.8% 1.2x n/a n/a n/a 153.8%
Mentor Graphics Corporation MENT $903.41 $1,012.68 $808.23 86.6% 9.4% -2.8% 1.3x 13.3x 1.3x 13.3x 95.9%
Parametric Technology Corporation PMTC $1,965.11 $1,787.87 $938.19 67.0% 11.1% -12.3% 1.9x 17.2x 1.9x 11.4x 36.4%
PDF Solutions, Inc. PDFS $104.79 $71.88 $47.46 50.8% -31.9% -44.0% 1.5x n/a 0.9x n/a 180.1%
Stratasys, Inc. SSYS $353.80 $306.60 $104.07 47.0% 15.1% -15.2% 2.9x 19.5x 2.5x 9.5x 67.8%Synopsys, Inc. SNPS $3,280.15 $2,119.95 $1,360.05 82.3% 23.1% 1.7% 1.6x 6.8x 1.6x 5.0x 22.4%
Median: $1,090.04 $1,336.84 $501.82 80.3% 11.1% -2.8% 1.9x 15.0x 1.9x 11.4x 60.8%
TTM Revenue Growth -2.8%
TTM EBITDA Growth -44.3%
TTM Earnings Growth -60.5%
Gross Profit Margin 80.3%
EBITDA Margin 11.1%
Net Income Margin 3.4%
SG&A Expenses as a % of Total Revenue 37.5%
R&D Expenses as a % of Total Revenue 26.9%
Current Ratio 2.1
Quick Ratio 1.9
Cash as Percent of Market Cap 20.6%
Avg Days Outstanding: Accounts Receivable 90
Avg Days Outstanding: Accounts Payable 32
Working Capital to TTM Operating Expense Ratio 0.5
Levered FCF Margin 7.3%
Cash from Operations Growth (YoY) -43.8%
Cash from Investing Growth (YoY) 57.3%
Cash from Financing Growth (YoY) 75.7%Levered FCF Growth (YoY) -27.6%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Engineering, PLM, & CAD/CAM Software Stock Market Return: 2009
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Engineering, PLM, & CAD/CAM SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Enterprise Application Integration
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
Return
BluePhoenix Solutions, Ltd. BPHX $59.01 $53.55 $80.89 45.7% 8.9% -6.3% 0.7x 7.4x 0.6x 5.4x 54.9%
Citrix Systems, Inc. CTXS $7,723.59 $7,144.92 $1,578.63 91.5% 20.5% 0.7% 4.5x 22.1x 4.5x 17.1x 79.9%
Jacada Ltd. JCDA $24.66 $0.44 $16.84 34.4% -50.0% -28.9% n/a n/a n/a n/a -46.2%
Sybase, Inc. SY $3,582.52 $3,226.79 $1,143.98 71.2% 28.5% 2.0% 2.8x 9.9x 2.9x 9.8x 82.2%
TIBCO Software Inc. TIBX $1,656.37 $1,406.79 $611.34 73.8% 20.9% -5.2% 2.3x 11.0x 2.3x 8.5x 95.0%
Median: $1,656.37 $1,406.79 $611.34 71.2% 20.5% -5.2% 2.6x 10.4x 2.6x 9.1x 79.9%
TTM Revenue Growth -5.2%
TTM EBITDA Growth 15.4%
TTM Earnings Growth 0.3%
Gross Profit Margin 71.2%
EBITDA Margin 20.5%
Net Income Margin 10.3%
SG&A Expenses as a % of Total Revenue 40.6%
R&D Expenses as a % of Total Revenue 17.0%
Current Ratio 1.8
Quick Ratio 1.6
Cash as Percent of Market Cap 30.9%
Avg Days Outstanding: Accounts Receivable 83
Avg Days Outstanding: Accounts Payable 40
Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 11.3%
Cash from Operations Growth (YoY) 14.6%
Cash from Investing Growth (YoY) -108.2%
Cash from Financing Growth (YoY) 66.3%Levered FCF Growth (YoY) 139.2%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) Enterprise Application Integration Software Stock Market Return: 2009
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SEG Software Index Category: Enterprise Resource Planning
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
Return
American Software, Inc. AMSW.A $155.36 $113.83 $75.53 57.6% 11.7% -8.7% 1.5x 12.9x 1.4x 10.0x 46.7%
CDC Corporation CHIN.A $241.71 $210.89 $334.19 42.2% 6.0% -21.9% 0.6x 10.6x 0.5x 9.2x 105.4%
CDC Software Corporation CDCS $262.99 $201.42 $203.87 52.6% 17.9% 0.8% 1.0x 5.5x n/a n/a n/a
Deltek PROJ $528.99 $577.88 $267.17 62.2% 19.1% -9.3% 2.2x 11.3x 2.0x 9.2x 68.8%
Epicor Software Corporation EPIC $478.87 $642.69 $419.66 55.5% 15.3% -13.6% 1.5x 10.0x 1.3x 8.3x 78.1%
Intuit Inc. INTU $9,806.92 $9,877.92 $3,194.54 80.4% 29.9% 2.8% 3.1x 10.3x 3.1x 8.9x 31.2%
Lawson Software, Inc. LWSN $1,096.60 $929.57 $735.40 54.3% 15.8% -14.0% 1.3x 8.0x 1.2x 9.6x 48.7%
Oracle Corporation ORCL $125,330.61 $119,298.61 $23,225.00 81.1% 47.6% -1.3% 5.1x 10.8x 5.1x 10.5x 40.3%
QAD Inc. QADI $190.89 $163.95 $221.87 56.5% 6.3% -20.6% 0.7x 11.8x 0.6x n/a 74.1%
SAP SAP $55,799.83 $54,674.82 $15,678.65 66.6% 31.7% -3.1% 3.5x 11.0x 3.3x 11.6x 31.1%
Tyler Technologies, Inc. TYL $719.19 $719.40 $285.61 43.6% 17.3% 11.6% 2.5x 14.5x 2.7x 14.3x 78.3%
Median: $528.99 $642.69 $334.19 56.5% 17.3% -8.7% 1.5x 10.8x 1.7x 9.6x 58.8%
TTM Revenue Growth -8.7%
TTM EBITDA Growth 7.6%
TTM Earnings Growth 5.6%
Gross Profit Margin 56.5%
EBITDA Margin 17.3%
Net Income Margin 5.9%
SG&A Expenses as a % of Total Revenue 30.6%
R&D Expenses as a % of Total Revenue 11.5%
Current Ratio 1.5
Quick Ratio 1.2
Cash as Percent of Market Cap 26.7%
Avg Days Outstanding: Accounts Receivable 75
Avg Days Outstanding: Accounts Payable 35
Working Capital to TTM Operating Expense Ratio 0.2
Levered FCF Margin 10.7%
Cash from Operations Growth (YoY) 0.6%
Cash from Investing Growth (YoY) 70.4%
Cash from Financing Growth (YoY) -19.0%Levered FCF Growth (YoY) -17.1%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) Enterprise Resource Planning Software Stock Market Return: 2009
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SEG Software Index Category: Entertainment
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
Return
Electronic Arts Inc. ERTS $5,849.06 $3,837.06 $3,946.00 44.6% -10.0% -8.8% 1.0x n/a 0.9x n/a 16.8%
Giant Interactive GA $1,610.17 $925.80 $202.25 89.1% 68.2% -17.6% 4.6x 6.7x 4.0x 6.4x 16.6%
Glu Mobile, Inc. GLUU $33.94 $39.70 $81.87 65.8% -9.6% -5.2% 0.5x n/a 0.4x 17.2x 187.2%
Konami Corporation KNM $2,385.32 $2,467.49 $2,987.22 28.3% 12.3% -10.9% 0.8x 6.7x 0.8x 5.4x -27.4%
Majesco Entertainment Company COOL $43.95 $38.42 $88.54 30.6% 6.0% 53.3% 0.4x 7.2x 0.6x n/a 142.6%
Perfect World PWRD $2,012.68 $1,829.83 $286.22 86.3% 55.0% 52.9% 6.4x 11.6x 8.8x 16.6x 142.5%
THQ Inc. THQI $333.52 $245.65 $872.36 60.3% 36.1% -12.7% 0.3x 0.8x 0.3x n/a 34.6%
Median: $1,610.17 $925.80 $286.22 60.3% 12.3% -8.8% 0.8x 6.7x 0.8x 11.5x 34.6%
TTM Revenue Growth -8.8%
TTM EBITDA Growth -11.5%
TTM Earnings Growth -78.2%
Gross Profit Margin 60.3%
EBITDA Margin 12.3%
Net Income Margin -2.7%
SG&A Expenses as a % of Total Revenue 25.0%
R&D Expenses as a % of Total Revenue 11.5%
Current Ratio 2.3
Quick Ratio 1.3
Cash as Percent of Market Cap 29.1%
Avg Days Outstanding: Accounts Receivable 28
Avg Days Outstanding: Accounts Payable 59
Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 8.2%
Cash from Operations Growth (YoY) -52.1%
Cash from Investing Growth (YoY) 13.2%
Cash from Financing Growth (YoY) -115.2%Levered FCF Growth (YoY) 59.3%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Entertainment Software Stock Market Return: 2009
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120%
Entertainment SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Healthcare
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
Return
Allscripts Healthcare Solutions Inc. MDRX $2,965.04 $2,921.38 $620.56 53.4% 12.9% 61.9% 4.7x 36.6x 4.5x 24.9x 107.6%AMICAS, Inc. AMCS $196.63 $156.47 $73.65 49.6% 2.7% 46.4% 2.1x 80.1x 3.0x n/a 254.9%
Cerner Corporation CERN $6,835.05 $6,544.34 $1,671.28 82.7% 25.5% 4.1% 3.9x 15.4x 4.0x 15.3x 118.9%
Computer Programs and Sys, Inc. CPSI $503.11 $484.91 $126.03 43.1% 21.3% 8.9% 3.8x 18.1x 4.1x 19.2x 73.1%
Eclipsys Corporation ECLP $1,064.43 $1,003.17 $512.32 45.1% 8.4% -0.2% 2.0x 23.4x 2.0x 17.0x 32.6%
eResearchTechnology, Inc. ERES $294.20 $221.31 $100.75 53.2% 32.4% -23.7% 2.2x 6.8x 1.6x n/a -6.2%
MedAssets MDAS $1,210.75 $1,449.91 $329.28 78.4% 27.1% 31.8% 4.4x 16.2x 5.3x 16.7x 50.5%
Merge Healthcare MRGE $256.47 $254.90 $62.63 77.5% 60.4% 9.3% 4.1x 6.7x n/a n/a 172.8%
Omnicell, Inc. OMCL $377.92 $231.61 $220.86 50.0% 6.9% -10.9% 1.0x 15.2x 0.9x 6.7x -4.3%
Phase Forward Incorporated PFWD $662.82 $550.32 $202.76 57.3% 14.6% 27.0% 2.7x 18.6x 3.3x 16.3x 24.6%
Quality Systems, Inc. QSII $1,820.26 $1,736.89 $269.65 61.9% 29.1% 26.3% 6.4x 22.2x 7.0x 20.8x 45.7%
Simulations Plus, Inc. SLP $21.83 $14.36 $9.14 74.6% 20.3% 2.0% 1.6x 7.8x 1.5x 4.7x 47.4%Vital Images, Inc. VTAL $181.48 $56.49 $59.90 75.7% 0.7% -11.1% 0.9x 141.9x 0.8x n/a -5.2%
Median: $503.11 $484.91 $202.76 57.3% 20.3% 8.9% 2.7x 18.1x 3.1x 16.7x 47.4%
TTM Revenue Growth 8.9%
TTM EBITDA Growth 21.4%
TTM Earnings Growth -21.3%
Gross Profit Margin 57.3%
EBITDA Margin 20.3%
Net Income Margin 5.4%
SG&A Expenses as a % of Total Revenue 33.4%
R&D Expenses as a % of Total Revenue 11.5%
Current Ratio 2.4Quick Ratio 2.2
Cash as Percent of Market Cap 14.2%
Avg Days Outstanding: Accounts Receivable 78
Avg Days Outstanding: Accounts Payable 29
Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 6.1%
Cash from Operations Growth (YoY) 10.5%
Cash from Investing Growth (YoY) -7.9%
Cash from Financing Growth (YoY) -71.8%Levered FCF Growth (YoY) 48.8%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) Healthcare Software Stock Market Return: 2009
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40%
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80%
Healthcare SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: HR and Workforce 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
Return
Callidus Software Inc. CALD $91.61 $55.66 $93.00 40.1% -9.0% -11.2% 0.6x n/a 0.5x n/a 13.2%ClickSoftware Technologies Ltd. CKSW $213.37 $177.42 $58.08 67.5% 21.1% 19.6% 3.1x 14.5x 3.4x 29.0x 306.6%
The Ultimate Software Group, Inc. ULTI $743.89 $717.48 $194.01 54.5% 5.4% 13.4% 3.7x 68.6x 4.0x 35.7x 110.9%
Websense, Inc. WBSN $776.49 $800.28 $312.01 84.3% 19.4% 15.6% 2.6x 13.2x 2.3x 6.2x 24.4%
Workstream Inc. WSTM $15.96 $36.01 $20.20 72.2% 0.3% -24.1% 1.8x 562.6x n/a n/a 833.3%
Median: $213.37 $177.42 $93.00 67.5% 5.4% 13.4% 2.6x 41.6x 2.8x 29.0x 110.9%
TTM Revenue Growth 13.4%
TTM EBITDA Growth 101.0%
TTM Earnings Growth 89.3%
Gross Profit Margin 67.5%
EBITDA Margin 5.4%
Net Income Margin -1.7%
SG&A Expenses as a % of Total Revenue 39.0%
R&D Expenses as a % of Total Revenue 15.6%
Current Ratio 1.1Quick Ratio 0.8
Cash as Percent of Market Cap 9.8%
Avg Days Outstanding: Accounts Receivable 75
Avg Days Outstanding: Accounts Payable 23
Working Capital to TTM Operating Expense Ratio 0.06
Levered FCF Margin 8.2%
Cash from Operations Growth (YoY) 20.6%
Cash from Investing Growth (YoY) 9.5%
Cash from Financing Growth (YoY) -283.0%Levered FCF Growth (YoY) n/a
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
HR & Workforce Management Software Stock Market Return: 2009
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80%
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HR & Workforce Management SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Messaging, Conferencing, and Comms
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
Return
8x8 Inc. EGHT $89.14 $73.12 $63.55 64.7% -1.5% -2.0% 1.2x n/a 1.1x 20.9x 215.6%Evolving Systems, Inc. EVOL $61.11 $59.84 $38.41 65.8% 21.1% 4.2% 1.6x 7.4x 1.6x 9.9x 275.6%
Interactive Intelligence, Inc. ININ $323.22 $263.20 $126.80 68.9% 13.0% 6.2% 2.1x 16.0x 2.2x 22.3x 228.8%
OpenTV Corp. OPTV $190.57 $82.15 $117.72 61.9% 12.4% -6.4% 0.7x 5.6x 0.7x 4.4x 20.0%
SeaChange International, Inc. SEAC $207.29 $165.02 $202.63 51.3% 8.6% 3.5% 0.8x 9.5x 0.8x 8.3x -1.3%
Synchronoss Technologies, Inc. SNCR $494.39 $421.59 $124.43 50.3% 20.7% 7.1% 3.4x 16.4x 3.8x 14.1x 57.4%
Zix Corporation ZIXI $110.12 $98.04 $29.63 68.2% -14.2% 6.4% 3.3x n/a 3.5x n/a 53.1%
Median: $190.57 $98.04 $117.72 64.7% 12.4% 4.2% 1.6x 9.5x 1.6x 12.0x 57.4%
TTM Revenue Growth 4.2%
TTM EBITDA Growth 0.8%
TTM Earnings Growth -42.7%
Gross Profit Margin 64.7%
EBITDA Margin 12.4%
Net Income Margin 6.0%
SG&A Expenses as a % of Total Revenue 36.7%
R&D Expenses as a % of Total Revenue 18.3%
Current Ratio 2.0Quick Ratio 1.5
Cash as Percent of Market Cap 18.1%
Avg Days Outstanding: Accounts Receivable 74
Avg Days Outstanding: Accounts Payable 49
Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 4.8%
Cash from Operations Growth (YoY) 6.4%
Cash from Investing Growth (YoY) -114.6%
Cash from Financing Growth (YoY) -72.6%Levered FCF Growth (YoY) 189.5%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Messaging, Conferencing, & Comms Software Stock Market Return: 2009
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Messaging, Conferencing, & Comms SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Multimedia, Graphics, and Digital Media
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
Return
Adobe Systems Incorporated ADBE $19,489.11 $18,584.64 $2,945.85 89.9% 33.8% -17.7% 6.3x 18.7x 6.3x 15.3x 76.8%Avid Technology, Inc. AVID $485.10 $382.11 $661.00 49.2% -2.0% -26.3% 0.6x n/a 0.4x 3.0x 23.7%
Bitstream Inc. BITS $74.99 $56.52 $21.55 59.8% 8.3% -12.6% 2.6x 31.7x n/a n/a 64.3%
DigitalGlobe, Inc. DGI $1,090.04 $1,336.84 $281.20 89.0% 56.3% -0.4% 4.8x 8.4x n/a n/a n/a
DivX, Inc. DIVX $179.27 $40.13 $73.70 88.6% 2.4% -22.6% 0.5x 23.1x 0.4x 1.7x 7.5%
Monotype Imaging Holdings TYPE $311.90 $373.42 $96.26 93.0% 41.1% -13.3% 3.9x 9.4x 3.4x 7.8x 69.8%
NICE Systems Ltd. NICE $1,950.73 $1,627.43 $587.38 60.3% 14.8% -2.9% 2.8x 18.7x 2.6x 10.6x 48.3%
Nuance Communications, Inc. NUAN $4,521.05 $4,894.12 $950.35 66.2% 20.7% 9.4% 5.1x 24.8x 4.9x 15.7x 62.7%
RealNetworks, Inc. RNWK $508.33 $140.57 $569.41 57.6% -7.2% -6.5% 0.2x n/a 0.2x 2.6x 6.2%
Sonic Solutions SNIC $359.90 $338.38 $110.35 71.2% 1.1% -16.2% 3.1x 270.5x 3.0x n/a 633.3%
Median: $496.71 $377.77 $425.30 68.7% 11.6% -12.9% 2.9x 20.9x 2.8x 7.8x 62.7%
TTM Revenue Growth -12.9%
TTM EBITDA Growth -18.2%
TTM Earnings Growth -55.5%
Gross Profit Margin 68.7%
EBITDA Margin 11.6%
Net Income Margin 5.1%
SG&A Expenses as a % of Total Revenue 38.2%
R&D Expenses as a % of Total Revenue 19.2%
Current Ratio 2.2Quick Ratio 1.8
Cash as Percent of Market Cap 14.5%
Avg Days Outstanding: Accounts Receivable 50
Avg Days Outstanding: Accounts Payable 54
Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 9.8%
Cash from Operations Growth (YoY) 7.1%
Cash from Investing Growth (YoY) -39.8%
Cash from Financing Growth (YoY) 100.5%Levered FCF Growth (YoY) -32.7%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median)Multimedia, Graphics, & Digital Media Software Stock Market Return: 2009
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SEG Software Index Category: Networking and Connectivity
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
Return
Allot Communications Ltd. ALLT $84.61 $45.63 $39.78 73.0% -6.8% 9.9% 1.1x n/a 1.2x n/a 119.8%CA, Inc. CA $11,754.79 $10,669.79 $4,199.00 86.9% 33.6% -4.1% 2.5x 7.6x 2.5x 7.3x 24.6%
Cisco Systems, Inc. CSCO $138,637.30 $113,569.30 $34,807.00 64.1% 25.1% -13.7% 3.3x 13.0x 3.1x 11.0x 48.5%
Citrix Systems, Inc. CTXS $7,723.59 $7,144.92 $1,578.63 91.5% 20.5% 0.7% 4.5x 22.1x 4.5x 17.1x 79.9%
F5 Networks, Inc. FFIV $4,126.90 $3,809.77 $653.08 78.1% 23.3% 0.4% 5.8x 25.0x 5.9x 21.3x 131.2%
NetScout Systems Inc. NTCT $597.35 $567.78 $255.89 77.9% 22.5% 6.2% 2.2x 9.9x 2.0x 8.4x 80.0%
Novell, Inc. NOVL $1,433.62 $450.15 $862.19 78.3% 15.8% -9.9% 0.5x 3.3x 0.5x n/a 9.0%
OPNET Technologies, Inc. OPNT $261.32 $171.83 $118.78 75.4% 7.9% 2.9% 1.4x 18.4x 1.4x 11.4x 38.2%
Radware Ltd. RDWR $278.41 $212.32 $101.67 79.4% -4.5% 8.0% 2.1x n/a 2.2x n/a 181.0%
SolarWinds, Inc. SWI $1,510.53 $1,428.84 $108.36 95.8% 46.3% 24.4% 13.2x 28.5x n/a n/a n/a
TTI Team Telecom International Ltd. TTIL $24.33 -$4.16 $45.00 54.0% 9.8% -12.2% n/a n/a n/a n/a 157.6%
Median: $1,472.07 $998.31 $454.48 78.2% 21.5% 0.6% 2.5x 15.7x 2.2x 11.2x 80.0%
TTM Revenue Growth 0.6%
TTM EBITDA Growth 37.3%
TTM Earnings Growth 17.7%
Gross Profit Margin 78.2%
EBITDA Margin 21.5%
Net Income Margin 10.2%
SG&A Expenses as a % of Total Revenue 43.8%
R&D Expenses as a % of Total Revenue 17.0%
Current Ratio 2.2Quick Ratio 2.0
Cash as Percent of Market Cap 24.6%
Avg Days Outstanding: Accounts Receivable 58
Avg Days Outstanding: Accounts Payable 67
Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 11.3%
Cash from Operations Growth (YoY) 12.6%
Cash from Investing Growth (YoY) -51.0%
Cash from Financing Growth (YoY) 61.1%Levered FCF Growth (YoY) 24.3%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) Networking & Connectivity Software Stock Market Return: 2009
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SEG Software Index Category: Security
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
Return
ActivCard Corp. ACTI $117.42 $39.00 $62.32 68.2% -1.3% 5.6% 0.6x n/a n/a n/a 57.1%ArcSight, Inc. ARST $888.25 $781.03 $155.73 81.1% 13.7% 32.5% 5.0x 36.6x 5.8x 58.1x 261.5%
Blue Coat Systems, Inc. BCSI $1,170.24 $1,105.51 $459.64 72.7% 8.6% 17.5% 2.4x 27.8x 2.5x n/a 245.8%
Check Point Software Tech Ltd. CHKP $7,144.83 $6,187.71 $869.86 89.7% 52.0% 9.1% 7.1x 13.7x 7.7x 14.5x 80.5%
Cogent, Inc. COGT $915.41 $619.65 $131.65 60.6% 33.1% 22.4% 4.7x 14.2x 4.9x 10.8x -23.9%
Commtouch Software Ltd. CTCH $88.20 $71.66 $14.68 85.8% 20.3% 5.7% 4.9x 24.0x n/a n/a 122.4%
McAfee, Inc. MFE $6,446.34 $5,662.89 $1,825.65 78.8% 20.7% 19.1% 3.1x 15.0x 3.5x 12.8x 21.5%
SonicWALL, Inc. SNWL $412.79 $225.13 $200.69 72.8% 12.8% -8.9% 1.1x 8.8x 1.0x 10.1x 94.1%
Sourcefire, Inc. FIRE $735.31 $636.67 $93.91 77.6% 7.4% 35.5% 6.8x 91.8x 8.9x n/a 412.0%
Symantec Corporation SYMC $14,614.40 $14,100.40 $5,887.85 85.5% 31.0% -5.4% 2.4x 7.7x 2.3x 6.0x 38.8%
VASCO Data Security International VDSI $251.54 $180.31 $98.69 69.7% 12.2% -27.0% 1.8x 15.0x 1.4x n/a -32.8%
VeriSign, Inc. VRSN $4,695.14 $3,884.40 $1,008.11 77.2% 38.6% 7.9% 3.9x 10.0x 4.1x 8.9x 27.3%Websense, Inc. WBSN $776.49 $800.28 $312.01 84.3% 19.4% 15.6% 2.6x 13.2x 2.3x 6.2x 24.4%
Zix Corporation ZIXI $110.12 $98.04 $29.63 68.2% -14.2% 6.4% 3.3x n/a 3.5x n/a 53.1%
Median: $832.37 $708.85 $178.21 77.4% 16.5% 8.5% 3.2x 14.6x 3.5x 10.4x 57.1%
TTM Revenue Growth 8.5%
TTM EBITDA Growth 28.8%
TTM Earnings Growth 13.9%
Gross Profit Margin 77.4%
EBITDA Margin 16.5%
Net Income Margin 5.7%
SG&A Expenses as a % of Total Revenue 47.0%
R&D Expenses as a % of Total Revenue 16.1%
Current Ratio 2.2Quick Ratio 2.0
Cash as Percent of Market Cap 14.8%
Avg Days Outstanding: Accounts Receivable 67
Avg Days Outstanding: Accounts Payable 47
Working Capital to TTM Operating Expense Ratio 0.8
Levered FCF Margin 9.4%
Cash from Operations Growth (YoY) 21.7%
Cash from Investing Growth (YoY) -128.5%
Cash from Financing Growth (YoY) 64.1%Levered FCF Growth (YoY) 40.0%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Security Software Stock Market Return: 2009
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SEG Software Index Category: Storage and Systems 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
Return
BMC Software, Inc. BMC $7,392.53 $6,512.63 $1,879.50 78.6% 33.7% 2.7% 3.5x 10.3x 3.5x 8.6x 48.1%CA, Inc. CA $11,754.79 $10,669.79 $4,199.00 86.9% 33.6% -4.1% 2.5x 7.6x 2.5x 7.3x 24.6%
CommVault Systems, Inc. CVLT $1,021.22 $888.74 $243.08 86.6% 10.1% 7.9% 3.7x 36.2x 3.7x 22.5x 87.3%
Compuware Corporation CPWR $1,719.31 $1,386.34 $954.34 65.2% 24.3% -21.6% 1.5x 6.0x 1.3x n/a 10.8%
EMC EMC $35,696.89 $33,092.36 $13,942.38 54.5% 16.7% -5.1% 2.4x 14.2x 2.2x 11.4x 68.3%
FalconStor Software, Inc. FALC $184.50 $138.78 $90.41 83.2% 2.8% 2.2% 1.5x 54.8x 1.6x n/a 55.1%
Network Appliance, Inc. NTAP $11,471.97 $9,594.45 $3,502.69 62.4% 12.7% -2.8% 2.7x 21.6x 2.7x 22.5x 152.8%
SupportSoft, Inc. SPRT $121.68 $28.06 $56.81 44.4% -23.4% 248.1% 0.5x n/a 0.6x n/a 27.3%
Symantec Corporation SYMC $14,614.40 $14,100.40 $5,887.85 85.5% 31.0% -5.4% 2.4x 7.7x 2.3x 6.0x 38.8%
VMWare VMW $17,213.01 $15,486.85 $1,930.34 83.2% 19.4% 8.5% 8.0x 41.4x 8.3x 27.3x 83.8%
Median: $9,432.25 $8,053.54 $1,904.92 80.9% 18.0% -0.3% 2.5x 14.2x 2.4x 11.4x 51.6%
TTM Revenue Growth -0.3%
TTM EBITDA Growth -4.7%
TTM Earnings Growth -17.0%
Gross Profit Margin 80.9%
EBITDA Margin 18.0%
Net Income Margin 6.0%
SG&A Expenses as a % of Total Revenue 42.1%
R&D Expenses as a % of Total Revenue 13.4%
Current Ratio 2.1Quick Ratio 1.8
Cash as Percent of Market Cap 18.3%
Avg Days Outstanding: Accounts Receivable 65
Avg Days Outstanding: Accounts Payable 42
Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 15.0%
Cash from Operations Growth (YoY) -5.3%
Cash from Investing Growth (YoY) -63.9%
Cash from Financing Growth (YoY) 13.7%Levered FCF Growth (YoY) -6.5%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) Storage & Systems Management Software Stock Market Return: 2009
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SEG Software Index Category: Supply Chain Management and Logistics
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
Return
American Software, Inc. AMSW.A $155.36 $113.83 $75.53 57.6% 11.7% -8.7% 1.5x 12.9x 1.4x 10.0x 46.7%Ariba, Inc. ARBA $1,121.30 $978.25 $338.97 63.6% 10.9% 3.3% 2.9x 26.4x 2.9x 13.5x 73.6%
Aspen Technology, Inc. AZPN $902.65 $902.50 $264.97 72.0% 3.2% -20.5% 3.4x 105.2x 2.5x n/a 54.4%
CDC Software Corporation CDCS $262.99 $201.42 $203.87 52.6% 17.9% 0.8% 1.0x 5.5x n/a n/a n/a
i2 Technologies, Inc. ITWO $437.47 $360.25 $231.82 63.3% 21.7% -9.2% 1.6x 7.2x 1.4x n/a 227.1%
JDA Software Group JDAS $889.11 $803.63 $384.89 63.5% 23.4% 0.6% 2.1x 8.9x 2.1x 8.5x 104.9%
Manhattan Associates, Inc. MANH $557.79 $454.57 $260.18 55.2% 12.4% -24.9% 1.7x 14.1x 1.3x 8.4x 60.3%
ModusLink Global Solutions, Inc. MLNK $428.60 $254.05 $963.82 13.5% 6.0% -11.2% 0.3x 4.4x n/a n/a 252.0%
Retalix Ltd. RTLX $296.25 $230.48 $198.18 42.1% 7.5% -11.8% 1.2x 15.5x n/a n/a 105.1%
The Descartes Systems Group Inc. DSG $363.70 $267.58 $70.57 68.8% 25.8% 6.3% 3.8x 14.7x n/a n/a 73.4%
XATA Corporation XATA $25.84 $47.88 $65.33 44.7% 5.6% 21.6% 0.7x 13.1x 0.7x n/a 54.7%
Median: $428.60 $267.58 $231.82 57.6% 11.7% -8.7% 1.6x 13.1x 1.4x 9.3x 73.5%
TTM Revenue Growth -8.7%
TTM EBITDA Growth 28.2%
TTM Earnings Growth -47.8%
Gross Profit Margin 57.6%
EBITDA Margin 11.7%
Net Income Margin 4.9%
SG&A Expenses as a % of Total Revenue 30.0%
R&D Expenses as a % of Total Revenue 13.1%
Current Ratio 2.2Quick Ratio 1.8
Cash as Percent of Market Cap 23.8%
Avg Days Outstanding: Accounts Receivable 70
Avg Days Outstanding: Accounts Payable 27
Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 10.6%
Cash from Operations Growth (YoY) -6.5%
Cash from Investing Growth (YoY) 25.9%
Cash from Financing Growth (YoY) 20.4%Levered FCF Growth (YoY) 19.1%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Supply Chain Management & Logistics Software Stock Market Return: 2009
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Supply Chain Management & Logistics SW S&P 500 NASDAQ SEG SW Index
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SEG Software Index Category: Wireless
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
Return
Hurray! Holding Co., Ltd. HRAY $86.67 $31.64 $42.90 14.4% n/a -22.6% 0.7x n/a n/a n/a 123.9%Itron, Inc. ITRI $2,744.48 $3,461.84 $1,643.01 32.7% 12.5% -16.1% 2.1x 16.9x 1.8x 11.8x 9.7%
Openwave Systems Inc. OPWV $192.93 $88.10 $190.50 59.8% 3.3% -4.3% 0.5x 14.1x 0.5x n/a 285.0%
PCTEL, Inc. PCTI $108.52 $40.02 $59.48 46.5% 2.5% -23.6% 0.7x 26.9x 0.5x 3.3x 0.2%
Smith Micro Software, Inc. SMSI $321.28 $272.74 $104.05 84.3% 19.2% 13.2% 2.6x 13.7x 2.7x 16.5x 75.1%
TeleCommunication Systems, Inc. TSYS $496.78 $446.14 $288.53 37.6% 13.8% 62.2% 1.5x 11.2x 2.2x 16.0x 14.2%
Median: $257.10 $180.42 $147.27 42.1% 12.5% -10.2% 1.1x 14.1x 1.8x 13.9x 44.7%
TTM Revenue Growth -10.2%
TTM EBITDA Growth 86.4%
TTM Earnings Growth -32.7%
Gross Profit Margin 42.1%
EBITDA Margin 12.5%
Net Income Margin -12.1%
SG&A Expenses as a % of Total Revenue 34.0%
R&D Expenses as a % of Total Revenue 12.6%
Current Ratio 4.8Quick Ratio 4.5
Cash as Percent of Market Cap 35.1%
Avg Days Outstanding: Accounts Receivable 82
Avg Days Outstanding: Accounts Payable 42
Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 7.2%
Cash from Operations Growth (YoY) -17.5%
Cash from Investing Growth (YoY) -75.6%
Cash from Financing Growth (YoY) 100.0%Levered FCF Growth (YoY) 62.4%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) Wireless Software Stock Market Return: 2009
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Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Company Performance
SEG SaaS Index
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SEG SaaS Index
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
Return
Athenahealth ATHN $1,563.84 $1,471.86 $178.91 58.6% 13.2% 41.6% 8.2x 62.3x 10.7x 67.8x 26.1%Concur CNQR $2,119.38 $1,857.97 $247.60 69.5% 25.0% 14.9% 7.5x 30.0x 7.5x 25.0x 34.2%
Constant Contact CTCT $458.90 $348.46 $118.08 71.0% 4.9% 52.0% 3.0x 60.3x 4.0x 92.6x 26.0%
DealerTrack TRAK $781.26 $590.91 $227.07 50.0% 11.2% -8.7% 2.6x 23.2x 2.5x 13.2x 69.1%
DemandTec DMAN $244.07 $175.98 $77.66 68.0% -5.0% 10.9% 2.3x n/a 2.3x 25.5x 12.9%
Kenexa KNXA $281.02 $231.44 $163.67 66.2% 10.6% -20.7% 1.4x 13.4x 1.1x 5.2x 72.3%
LivePerson LPSN $340.07 $303.58 $82.33 75.7% 17.8% 14.6% 3.7x 20.8x 4.0x 35.3x 291.6%
Medidata Solutions MDSO $354.51 $272.20 $135.28 63.3% 12.6% 78.3% 2.0x 16.0x n/a n/a n/a
Netsuite N $1,027.20 $929.16 $164.98 67.2% -6.3% 15.5% 5.6x n/a 6.1x n/a 106.1%
RightNow RNOW $568.76 $475.77 $147.19 68.0% 6.7% 9.0% 3.2x 48.1x 3.4x n/a 149.5%
Salary.com SLRY $36.43 $26.37 $45.30 68.7% -31.9% 17.2% 0.6x n/a 0.6x n/a 4.7%
Salesforce.com CRM $9,322.54 $8,906.64 $1,241.12 80.0% 11.8% 23.6% 7.2x 61.1x 8.3x 51.0x 141.1%
SoundBite Communications SDBT $44.69 $7.56 $40.23 60.5% 0.5% -8.3% 0.2x 40.4x 0.2x n/a 119.2%
SuccessFactors SFSF $1,207.34 $1,095.44 $143.87 75.4% -10.4% 46.7% 7.6x n/a 9.9x n/a 234.3%
Taleo TLEO $911.15 $835.37 $195.95 66.2% 11.3% 26.0% 4.3x 37.7x 4.7x 25.3x 235.0%
Vocus VOCS $358.52 $260.87 $83.15 81.3% 6.1% 13.5% 3.1x 51.5x 3.4x 15.8x 8.8%
Median: $513.83 $412.12 $145.53 68.0% 8.6% 15.2% 3.2x 39.1x 4.0x 25.4x 72.3%
TTM Revenue Growth 15.2%
TTM EBITDA Growth 71.6%
TTM Earnings Growth -34.3%
Gross Profit Margin 68.0%
EBITDA Margin 8.6%
Net Income Margin -2.5%
SG&A Expenses as a % of Total Revenue 52.0%
R&D Expenses as a % of Total Revenue 14.1%
Current Ratio 1.6Quick Ratio 1.4
Cash as Percent of Market Cap 17.1%
Avg Days Outstanding: Accounts Receivable 65
Avg Days Outstanding: Accounts Payable 26
Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 4.9%
Cash from Operations Growth (YoY) 6.0%
Cash from Investing Growth (YoY) 10.4%
Cash from Financing Growth (YoY) -73.8%
Levered FCF Growth (YoY) -4.5%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) SEG SaaS Index Stock Market Return: 2009
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80%
SEG SaaS Index S&P 500 NASDAQ SEG SW Index
8/14/2019 Software Equity Group Flash Report
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Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Category Performance
SEG Internet Index
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SEG Internet Index: All 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 $277.74 $213.73 $137.00 62.1% 10.6% -1.0% 1.4x 12.5x 1.6x 8.9x 51.6%
Advertising $693.63 $572.82 $267.93 56.7% 16.8% 4.9% 3.0x 17.0x 3.7x 9.9x 48.1%
eCommerce & Portals $351.68 $310.04 $228.05 75.0% 7.4% -3.4% 2.1x 17.3x 2.5x 13.0x 50.7%
Financial $84.20 $35.73 $42.44 57.3% 7.1% -2.0% 1.0x 10.0x 1.5x 6.0x 77.7%
Networking & Connectivity $241.11 $189.43 $177.17 39.1% 11.8% 2.2% 0.9x 8.7x 1.0x 6.5x 58.2%
New Media $327.47 $182.15 $105.80 57.6% 11.0% -6.3% 1.9x 15.1x 1.8x 10.8x 32.4%
Search Engine $14,556.02 $13,975.58 $598.88 62.0% 40.7% 8.4% 5.5x 17.0x 6.0x 14.9x 41.4%
TTM Revenue Growth -1.0%
TTM EBITDA Growth 6.9%
TTM Earnings Growth -11.0%
Gross Profit Margin 62.1%
EBITDA Margin 10.6%
Net Income Margin 2.4%
SG&A Expenses as a % of Total Revenue 39.9%
R&D Expenses as a % of Total Revenue 9.3%
Current Ratio 2.6
Quick Ratio 2.2
Cash as Percent of Market Cap 25.3%
Avg Days Outstanding: Accounts Receivable 38
Avg Days Outstanding: Accounts Payable 42
Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 7.0%
Cash from Operations Growth (YoY) 9.8%
Cash from Investing Growth (YoY) -10.5%
Cash from Financing Growth (YoY) -13.0%
Levered FCF Growth (YoY) 0.8%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Report
SEG Internet Index Stock Market Return: 2009
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SEG Internet Index Category: Advertising
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
Return
Autobytel Inc. ABTL $41.53 $16.29 $54.88 34.1% -13.1% -27.6% 0.3x n/a 0.2x n/a 129.8%Baidu.com, Inc. BIDU $14,556.02 $13,975.58 $598.88 69.6% 44.1% 42.6% 23.3x 52.9x 30.2x 65.1x 230.6%
comScore Inc. SCOR $530.59 $448.01 $125.51 68.6% 13.4% 13.0% 3.6x 26.6x 3.8x 17.7x 43.7%
Google Inc. GOOG $196,517.26 $174,522.87 $22,677.64 62.0% 40.7% 8.4% 7.7x 18.9x 8.0x 18.9x 104.3%
InfoSpace, Inc. INSP $296.11 $90.17 $173.94 38.6% 5.5% 9.4% 0.5x 9.4x 0.6x 3.7x 13.6%
LookSmart, Ltd. LOOK $17.12 -$7.09 $53.96 36.5% -8.4% -17.0% n/a n/a n/a n/a -37.2%
Marchex Inc. MCHX $181.02 $148.01 $104.64 53.0% 6.9% -29.6% 1.4x 20.5x 1.0x 4.6x -7.0%
SINA Corporation SINA $2,706.95 $2,211.18 $361.92 57.0% 22.5% 6.8% 6.1x 27.1x 6.0x 20.5x 95.4%
Sohu.com Inc. SOHU $2,203.97 $1,662.44 $500.98 76.1% 43.6% 34.4% 3.3x 7.6x 3.9x 8.9x 24.0%
Tucows Inc. TCX $46.29 $41.83 $79.77 28.8% 7.1% 2.9% 0.5x 7.4x 0.5x 7.1x 91.7%
ValueClick, Inc. VCLK $856.67 $697.63 $545.66 67.9% 24.0% -13.4% 1.3x 5.3x 1.1x 4.3x 52.4%
Yahoo! Inc. YHOO $23,705.87 $19,910.41 $6,534.73 56.4% 20.2% -9.7% 3.0x 15.1x 3.7x 10.8x 41.4%
Median: $693.63 $572.82 $267.93 56.7% 16.8% 4.9% 3.0x 17.0x 3.7x 9.9x 48.1%
TTM Revenue Growth 4.9%
TTM EBITDA Growth 15.3%
TTM Earnings Growth -6.7%
Gross Profit Margin 56.7%
EBITDA Margin 16.8%
Net Income Margin 8.3%
SG&A Expenses as a % of Total Revenue 29.9%
R&D Expenses as a % of Total Revenue 10.8%
Current Ratio 3.6Quick Ratio 3.5
Cash as Percent of Market Cap 18.4%
Avg Days Outstanding: Accounts Receivable 45
Avg Days Outstanding: Accounts Payable 19
Working Capital to TTM Operating Expense Ratio 0.6
Levered FCF Margin 4.6%
Cash from Operations Growth (YoY) -28.1%
Cash from Investing Growth (YoY) -11.0%
Cash from Financing Growth (YoY) 72.9%
Levered FCF Growth (YoY) -20.1%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) SEG Internet: Advertising Stock Market Return: 2009
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SEG I t t I d C t Fi i l
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SEG Internet Index Category: Financial
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
Return
Banks.com, Inc BNX $5.75 $7.93 $9.98 65.6% 8.5% -29.7% 0.8x 9.3x n/a n/a 10.0%China Finance Online Co. Ltd. JRJC $165.10 $63.53 $53.89 83.9% 1.6% 8.1% 1.2x 73.0x 1.1x 2.8x 525.0%
Online Resources Corp. ORCC $162.39 $294.10 $150.78 48.9% 18.3% -1.2% 2.0x 10.7x 1.9x 9.2x 145.5%
Track Data Corp. TRAC $6.01 $1.26 $31.00 35.4% 5.6% -2.9% 0.0x 0.7x n/a n/a -9.4%
Median: $84.20 $35.73 $42.44 57.3% 7.1% -2.0% 1.0x 10.0x 1.5x 6.0x 77.7%
TTM Revenue Growth -2.0%
TTM EBITDA Growth -6.6%
TTM Earnings Growth -41.3%
Gross Profit Margin 57.3%
EBITDA Margin 7.1%
Net Income Margin 3.5%
SG&A Expenses as a % of Total Revenue 52.7%
R&D Expenses as a % of Total Revenue 12.1%
Current Ratio 1.9Quick Ratio 1.7
Cash as Percent of Market Cap 41.1%
Avg Days Outstanding: Accounts Receivable 32
Avg Days Outstanding: Accounts Payable 44
Working Capital to TTM Operating Expense Ratio 0.3
Levered FCF Margin 10.5%
Cash from Operations Growth (YoY) 81.4%
Cash from Investing Growth (YoY) 55.5%
Cash from Financing Growth (YoY) -93.6%
Levered FCF Growth (YoY) n/a
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
SEG Internet: Financial Stock Market Return: 2009
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SEG Internet: Financial S&P 500 NASDAQ SEG SW Index
SEG I t t I d C t N t ki d C ti it
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SEG Internet Index Category: Networking and Connectivity
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
Return
Delta Three, Inc. DDDC $27.33 $25.15 $19.97 26.0% -9.3% -8.8% 1.3x n/a n/a n/a 2433.3%EarthLink Inc. ELNK $890.40 $466.34 $775.25 48.4% 32.8% -24.1% 0.6x 1.8x 0.5x 1.5x 25.1%
Internap Network Services Corp. INAP $241.11 $189.43 $256.92 37.1% 8.8% 2.2% 0.7x 8.4x 0.7x 5.5x 91.5%
Internet Gold Golden Lines Ltd. IGLD $420.13 $567.61 $325.03 30.5% 20.2% 8.2% 1.7x 8.7x 1.9x 8.1x 759.7%
Internet Initiative Japan Inc. IIJI $379.16 $419.42 $742.02 19.9% 13.1% -1.9% 0.6x 4.3x n/a n/a 61.9%
iPass Inc. IPAS $65.35 $14.98 $177.17 39.1% 0.7% -9.0% 0.1x 12.9x n/a n/a -8.7%
Keynote Systems Inc. KEYN $160.86 $102.91 $80.11 48.6% 11.8% 4.2% 1.3x 10.9x 1.3x 7.4x 54.4%
LogMeIn, Inc. LOGM $446.06 $325.05 $70.17 89.8% 15.7% 58.4% 4.6x 29.5x n/a n/a n/a
Sify Technologies Limited SIFY $74.51 $129.58 $137.00 39.5% 0.0% 6.2% 0.9x n/a n/a n/a 13.0%
Median: $241.11 $189.43 $177.17 39.1% 11.8% 2.2% 0.9x 8.7x 1.0x 6.5x 58.2%
TTM Revenue Growth 2.2%
TTM EBITDA Growth -1.7%
TTM Earnings Growth -10.7%
Gross Profit Margin 39.1%
EBITDA Margin 11.8%
Net Income Margin 2.6%
SG&A Expenses as a % of Total Revenue 32.8%
R&D Expenses as a % of Total Revenue 4.2%
Current Ratio 2.4Quick Ratio 2.2
Cash as Percent of Market Cap 33.6%
Avg Days Outstanding: Accounts Receivable 47
Avg Days Outstanding: Accounts Payable 47
Working Capital to TTM Operating Expense Ratio 0.4
Levered FCF Margin 4.2%
Cash from Operations Growth (YoY) 39.2%
Cash from Investing Growth (YoY) -48.1%
Cash from Financing Growth (YoY) 65.5%
Levered FCF Growth (YoY) -6.9%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
SEG Internet: Networking & Connectivity Stock Market Return: 2009
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SEG Internet: Networking & Connectivity S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: New Media
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SEG Internet Index Category: New Media
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
Return
Inuvo, Inc. INUV $19.65 $26.96 $40.25 28.3% -4.5% -31.3% 0.7x n/a n/a n/a 480.0%RealNetworks, Inc. RNWK $508.33 $140.57 $569.41 57.6% -7.2% -6.5% 0.2x n/a 0.2x n/a 6.2%
TechTarget, Inc. TTGT $250.13 $182.15 $93.88 69.4% 11.0% -6.3% 1.9x 17.6x 1.7x 8.3x 52.6%
The Knot, Inc. KNOT $327.47 $198.56 $105.80 79.7% 12.4% 2.1% 1.9x 15.1x 1.9x 11.5x 23.5%
TheStreet.com, Inc. TSCM $71.62 $7.09 $66.98 51.0% 2.9% -4.1% 0.1x 3.6x 0.1x 0.8x -15.5%
WebMD Health Corp. WBMD $2,238.59 $2,297.96 $419.77 62.1% 11.4% 16.6% 5.5x 47.9x 6.0x 24.5x n/a
Yahoo! Inc. YHOO $23,705.87 $19,910.41 $6,534.73 56.4% 20.2% -9.7% 3.0x 15.1x 3.7x 10.8x 41.4%
Median: $327.47 $182.15 $105.80 57.6% 11.0% -6.3% 1.9x 15.1x 1.8x 10.8x 32.4%
TTM Revenue Growth -6.3%
TTM EBITDA Growth -29.1%
TTM Earnings Growth -97.5%
Gross Profit Margin 57.6%
EBITDA Margin 11.0%
Net Income Margin -1.8%
SG&A Expenses as a % of Total Revenue 47.7%
R&D Expenses as a % of Total Revenue 18.8%
Current Ratio 3.4Quick Ratio 3.3
Cash as Percent of Market Cap 27.8%
Avg Days Outstanding: Accounts Receivable 57
Avg Days Outstanding: Accounts Payable 51
Working Capital to TTM Operating Expense Ratio 0.7
Levered FCF Margin 7.8%
Cash from Operations Growth (YoY) -39.5%
Cash from Investing Growth (YoY) -85.3%
Cash from Financing Growth (YoY) -111.1%
Levered FCF Growth (YoY) 119.9%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
Income Statement Analysis (Median) SEG Internet: New Media Stock Market Return: 2009
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SEG Internet: New Media S&P 500 NASDAQ SEG SW Index
SEG Internet Index Category: Search Engine
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SEG Internet Index Category: Search Engine
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
Return
Baidu.com, Inc. BIDU $14,556.02 $13,975.58 $598.88 69.6% 44.1% 42.6% 23.3x 52.9x 30.2x 65.1x 230.6%Google Inc. GOOG $196,517.26 $174,522.87 $22,677.64 62.0% 40.7% 8.4% 7.7x 18.9x 8.0x 18.9x 104.3%
LookSmart, Ltd. LOOK $17.12 -$7.09 $53.96 36.5% -8.4% -17.0% n/a n/a n/a n/a -37.2%
Sohu.com Inc. SOHU $2,203.97 $1,662.44 $500.98 76.1% 43.6% 34.4% 3.3x 7.6x 3.9x 8.9x 24.0%
Yahoo! Inc. YHOO $23,705.87 $19,910.41 $6,534.73 56.4% 20.2% -9.7% 3.0x 15.1x 3.7x 10.8x 41.4%
Median: $14,556.02 $13,975.58 $598.88 62.0% 40.7% 8.4% 5.5x 17.0x 6.0x 14.9x 41.4%
TTM Revenue Growth 8.4%
TTM EBITDA Growth 21.3%
TTM Earnings Growth -2.4%
Gross Profit Margin 62.0%
EBITDA Margin 40.7%
Net Income Margin 21.7%
SG&A Expenses as a % of Total Revenue 24.5%
R&D Expenses as a % of Total Revenue 12.5%
Current Ratio 3.6Quick Ratio 3.5
Cash as Percent of Market Cap 16.5%
Avg Days Outstanding: Accounts Receivable 34
Avg Days Outstanding: Accounts Payable 20
Working Capital to TTM Operating Expense Ratio 1.2
Levered FCF Margin 14.2%
Cash from Operations Growth (YoY) 11.2%
Cash from Investing Growth (YoY) -11.0%
Cash from Financing Growth (YoY) 186.2%
Levered FCF Growth (YoY) 0.8%
Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved
Income Statement Analysis (Median)
Balance Sheet Analysis (Median)
Cash Flow Statement Analysis (Median)
January 2010 Monthly Flash Repor
SEG Internet: Search Engine Stock Market Return: 2009
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50%
60%
SEG Internet: Search Engine S&P 500 NASDAQ SEG SW Index
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