software equity group flash report

8/14/2019 Software Equity Group Flash Report

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Software Equity Group, L.L.C.

p: (858) 509-2800

f: (858) 509-2818

January 2010

Software Equity Group Flash Report

Selected M&A Transactionsand

Financial and Stock Market Performance

Public Software Companies By Product Category

[email protected]

Copyright 2009 by Software Equity Group, L.L.C., All Rights Reserved

San Diego, CA 92130

12220 El Camino Real, #320

Public SaaS Companies

Public Internet Companies By Product Category
mailto:%[email protected]:%[email protected]://www.softwareequity.com/


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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



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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%


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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0%

20%

40%

60%

80%

100%

Billing & Service Provisioning SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Business Intelligence


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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 Earnings Growth -10.7%


EBITDA Margin 17.0%




Current Ratio 2.2

Quick Ratio 2.0







Cash from Investing Growth (YoY) -26.5%

Cash from Financing Growth (YoY) -71.3%Levered FCF Growth (YoY) -20.0%





Income Statement Analysis (Median)Business Intelligence Software Stock Market Return: 2009

-40%

-20%

0%

20%

40%

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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 23.0%

Net Income Margin -6.6%



Current Ratio 1.4

Quick Ratio 1.3







Cash from Investing Growth (YoY) n/a

Cash from Financing Growth (YoY) 73.2%Levered FCF Growth (YoY) 207.6%






Content & Document Management Software Stock Market Return: 2009

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0%

20%

40%

60%

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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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 EBITDA Growth -26.4%



EBITDA Margin -1.2%




Current Ratio 1.5

Quick Ratio 1.3





Levered FCF Margin -0.4%




Levered FCF Growth (YoY) -44.2%





Income Statement Analysis (Median)CRM, Marketing, & Sales Software Stock Market Return: 2009

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

CRM, Marketing, & Sales SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Database and File Management


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 22.9%




Current Ratio 2.4

Quick Ratio 2.2














Database & File Management Software Stock Market Return: 2009

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%




EBITDA Margin 15.1%




Current Ratio 2.1

Quick Ratio 1.9








Cash from Financing Growth (YoY) -61.3%Levered FCF Growth (YoY) 28.9%





Income Statement Analysis (Median)Development Tools, OS, and App Testing Software Stock Market Return: 2009

-30%

-20%

-10%

0%

10%

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30%

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50%

60%

Development Tools, OS, and App Testing SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: eCommerce Enablement Software


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 14.1%




Current Ratio 1.8

Quick Ratio 1.6













Income Statement Analysis (Median)eCommerce Enablement Software Stock Market Return: 2009

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-20%

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0%

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20%

30%

40%

50%

60%

70%

eCommerce Enablement SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Education and eLearning


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 12.5%




Current Ratio 1.0

Quick Ratio 1.0














Education & eLearning Software Stock Market Return: 2009

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-20%

-10%

0%

10%

20%

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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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 Earnings Growth n/a


EBITDA Margin -2.3%




Current Ratio 1.8

Quick Ratio 1.7






Cash from Operations Growth (YoY) -27.8%







Income Statement Analysis (Median)Electronic Design Automation Software Stock Market Return: 2009

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

Electronic Design Automation SW S&P 500 NASDAQ SEG SW Index


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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 11.1%




Current Ratio 2.1

Quick Ratio 1.9








Cash from Financing Growth (YoY) 75.7%Levered FCF Growth (YoY) -27.6%






Engineering, PLM, & CAD/CAM Software Stock Market Return: 2009

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-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Engineering, PLM, & CAD/CAM SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Enterprise Application Integration


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 20.5%




Current Ratio 1.8

Quick Ratio 1.6













Income Statement Analysis (Median) Enterprise Application Integration Software Stock Market Return: 2009

-40%

-20%

0%

20%

40%

60%

80%

100%

Enterprise Application Integration SW S&P 500 NASDAQ SEG SW Index


20/42

SEG Software Index Category: Enterprise Resource Planning


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%


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%





EBITDA Margin 17.3%




Current Ratio 1.5

Quick Ratio 1.2













Income Statement Analysis (Median) Enterprise Resource Planning Software Stock Market Return: 2009

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Enterprise Resource Planning SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Entertainment


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 12.3%




Current Ratio 2.3

Quick Ratio 1.3














Entertainment Software Stock Market Return: 2009

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Entertainment SW S&P 500 NASDAQ SEG SW Index


22/42


23/42

SEG Software Index Category: Healthcare


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 20.3%




Current Ratio 2.4Quick Ratio 2.2













Income Statement Analysis (Median) Healthcare Software Stock Market Return: 2009

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80%

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SEG Software Index Category: HR and Workforce Management


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 5.4%












Cash from Financing Growth (YoY) -283.0%Levered FCF Growth (YoY) n/a






HR & Workforce Management Software Stock Market Return: 2009

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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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 12.4%


















Messaging, Conferencing, & Comms Software Stock Market Return: 2009

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SEG Software Index Category: Multimedia, Graphics, and Digital Media


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 11.6%

















Income Statement Analysis (Median)Multimedia, Graphics, & Digital Media Software Stock Market Return: 2009

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-20%

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0%

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20%

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60%

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Multimedia, Graphics, & Digital Media SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Networking and Connectivity


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 21.5%

















Income Statement Analysis (Median) Networking & Connectivity Software Stock Market Return: 2009

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40%

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80%

Networking and Connectivity SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Security


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 16.5%


















Security Software Stock Market Return: 2009

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20%

30%

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Security SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Storage and Systems Management


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 18.0%

















Income Statement Analysis (Median) Storage & Systems Management Software Stock Market Return: 2009

-30%

-20%

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0%

10%

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30%

40%

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60%

Storage & Systems Management SW S&P 500 NASDAQ SEG SW Index


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SEG Software Index Category: Supply Chain Management and Logistics


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%


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%





EBITDA Margin 11.7%


















Supply Chain Management & Logistics Software Stock Market Return: 2009

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0%

20%

40%

60%

80%

100%

Supply Chain Management & Logistics SW S&P 500 NASDAQ SEG SW Index


31/42

SEG Software Index Category: Wireless


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 12.5%

















Income Statement Analysis (Median) Wireless Software Stock Market Return: 2009

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0%

20%

40%

60%

80%

Wireless SW S&P 500 NASDAQ SEG SW Index


32/42


Company Performance

SEG SaaS Index


33/42

SEG SaaS Index


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 8.6%


















Income Statement Analysis (Median) SEG SaaS Index Stock Market Return: 2009

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Category Performance

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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%





EBITDA Margin 10.6%




Current Ratio 2.6

Quick Ratio 2.2














January 2010 Monthly Flash Report

SEG Internet Index Stock Market Return: 2009

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SEG Internet Index Category: Advertising


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 16.8%












Cash from Financing Growth (YoY) 72.9%






Income Statement Analysis (Median) SEG Internet: Advertising Stock Market Return: 2009

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SEG Internet Index Category: Financial


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 7.1%













Levered FCF Growth (YoY) n/a






SEG Internet: Financial Stock Market Return: 2009

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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


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%





EBITDA Margin 11.8%



















SEG Internet: Networking & Connectivity Stock Market Return: 2009

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SEG Internet Index Category: New Media


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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


Median: $327.47 $182.15 $105.80 57.6% 11.0% -6.3% 1.9x 15.1x 1.8x 10.8x 32.4%





EBITDA Margin 11.0%


















Income Statement Analysis (Median) SEG Internet: New Media Stock Market Return: 2009

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SEG Internet Index Category: Search Engine


TTM Gross

Margin

TTM EBITDA

Margin

TTM

Revenue


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%


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%





EBITDA Margin 40.7%



















SEG Internet: Search Engine Stock Market Return: 2009

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SEG Internet: Search Engine S&P 500 NASDAQ SEG SW Index
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