SEG Monthly Flash Report September 2011

8/3/2019 SEG Monthly Flash Report September 2011

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Public SaaS Companies

Public Internet Companies By Product Category

September 2011

Software Equity Group Flash Report

Select M&A Transactionsand

Financial and Stock Market Performance

Public Software 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 S stem

List of Commonly Used Acronyms

OS 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-YearYTD Year-to-date



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August 2011

Select 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 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

Amdocs Limited DOX $4,969.5 $3,835.6 $3,127.7 35.1% 18.9% 6.8% 1.2x 6.5x 1.2x 5.8x 4.7%AsiaInfo Holdings, Inc. ASIA $822.9 $603.4 $455.5 44.0% 25.9% 104.5% 1.3x 5.1x 1.2x 4.8x -35.9%

CSG Systems International, Inc. CSGS $437.7 $617.5 $652.2 50.7% 21.9% 26.9% 0.9x 4.3x 0.8x 3.5x -27.0%

Evolving Systems, Inc. EVOL $73.3 $57.1 $35.1 65.1% 17.9% 10.0% 1.6x 9.1x 2.6x 19.8x 0.7%

MIND C.T.I. Ltd. MNDO $39.9 $23.9 $19.0 69.3% 29.9% -0.9% 1.3x 4.2x n/a n/a 17.0%

Synchronoss Technologies, Inc. SNCR $1,035.0 $878.4 $201.4 51.8% 14.6% 42.8% 4.4x 29.9x 3.5x 13.2x 75.7%

Median: $630.3 $610.4 $328.4 51.2% 20.4% 18.5% 1.3x 5.8x 1.2x 5.8x 2.7%

TTM Revenue Growth 18.5%

TTM EBITDA Growth 7.7%

TTM Earnings Growth -0.1%

Gross Profit Margin 51.2%

EBITDA Margin 20.4%

Net Income Margin 14.7%

SG&A Expenses as a % of Total Revenue 18.7%

R&D Expenses as a % of Total Revenue 13.6%

Current Ratio 2.8

Quick Ratio 2.2

Cash as Percent of Market Cap 24.8%

Avg Days Outstanding: Accounts Receivable 84

Avg Days Outstanding: Accounts Payable 30

Working Capital to TTM Operating Expense Ratio 0.8

Levered FCF Margin 1.8%

Cash from Operations Growth (YoY) -14.3%

Cash from Investing Growth (YoY) -266.1%

Cash from Financing Growth (YoY) 89.4%

Levered FCF Growth (YoY) -67.3%


Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

August 2011 Monthly Flash Report

Income Statement Analysis (Median)

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Billing and Service Management Software Stock Market Return: Jan - August 2011

Billing and Service Management S&P NASDAQ SEG SW Index


10/43

SEG Software Index Category: Business Intelligence


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnActuate Corporation BIRT $301.0 $246.8 $137.9 83.4% 21.4% 15.0% 1.8x 8.3x 1.8x 6.9x 59.9%

Informatica Corporation INFA $4,457.1 $3,893.0 $720.0 84.1% 24.7% 27.4% 5.4x 21.9x 4.6x 16.4x 30.0%

MicroStrategy Incorporated MSTR $1,316.1 $1,123.0 $513.8 75.1% 7.9% 25.1% 2.2x 27.6x 1.9x 22.8x 57.7%

Pegasystems Inc. PEGA $1,517.0 $1,417.4 $385.1 60.7% 6.7% 30.5% 3.7x 54.9x 3.0x 19.3x 84.5%

PROS Holdings PRO $427.2 $362.8 $81.1 74.5% 10.5% 18.2% 4.5x 42.7x 3.4x 21.1x 101.5%

Qlik Technologies QLIK $2,106.8 $1,932.3 $268.7 88.9% 5.3% 39.2% 7.2x 136.2x 5.4x 39.2x 36.2%

Median: $1,416.6 $1,270.2 $326.9 79.2% 9.2% 26.3% 4.1x 35.1x 3.2x 20.2x 58.8%





EBITDA Margin 9.2%




Current Ratio 1.7

Quick Ratio 1.6




Working Capital to TTM Operati ng Expense Ratio 0.8


Cash from Operations Growth (YoY) 6.4%

Cash from Investing Growth (YoY) 5.1%

Cash from Financing Growth (YoY) -56.6%







-20%

-10%

0%

10%

20%

30%

40%

50%

Business Intelligence Software Stock Market Return: Jan - August 2011

Business Intelligence S&P NASDAQ SEG SW Index


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SEG Software Index Category: Content and Document Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnAdobe Systems Incorporated ADBE $12,465.2 $11,358.1 $4,049.2 89.5% 35.8% 24.3% 2.8x 7.8x 2.7x 6.4x -8.9%

Autonomy Corp. LSE:AU. $9,966.0 $10,012.2 $931.1 87.3% 44.1% 12.2% 10.8x 24.4x n/a n/a 71.2%

EasyLink Services International ESIC $150.8 $239.9 $137.9 66.8% 24.6% 67.8% 1.7x 7.1x 1.2x n/a 106.7%

EMC EMC $46,647.1 $45,652.1 $18,553.9 59.8% 22.4% 19.5% 2.5x 11.0x 2.2x 7.8x 23.8%

IBM IBM $205,308.4 $223,373.4 $104,562.0 46.4% 24.7% 7.4% 2.1x 8.7x 2.0x 8.4x 39.6%

Open Text Corporation OTEX $3,382.6 $3,396.1 $1,033.3 73.6% 28.6% 13.3% 3.3x 11.5x 2.8x 9.6x 34.1%

Median: $11,215.6 $10,685.1 $2,541.2 70.2% 26.6% 16.4% 2.6x 9.8x 2.2x 8.1x 36.9%



TTM Earnings Growth 29.5%


EBITDA Margin 26.6%




Current Ratio 1.2

Quick Ratio 1.0















-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Content and Document Management Software Stock Market Return: Jan - August 2011

Content and Document Management S&P NASDAQ SEG SW Index


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SEG Software Index Category: Data Management and Integration


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnGuidance Software, Inc. GUID $161.0 $133.5 $97.3 70.5% -0.7% 18.8% 1.4x n/a 1.2x 95.3x 27.5%

IBM IBM $205,308.4 $223,373.4 $104,562.0 46.4% 24.7% 7.4% 2.1x 8.7x 2.0x 8.4x 39.6%

Informatica Corporation INFA $4,457.1 $3,893.0 $720.0 84.1% 24.7% 27.4% 5.4x 21.9x 4.6x 16.4x 30.0%

Oracle Corporation ORCL $141,998.2 $129,541.2 $35,622.0 76.4% 40.8% 32.8% 3.6x 8.9x 3.3x 6.7x 28.5%

Pervasive Software Inc. PVSW $104.5 $66.0 $48.4 86.7% 10.5% 2.5% 1.4x 13.0x 1.3x 9.2x 36.6%

TIBCO Software Inc. TIBX $3,641.1 $3,402.9 $827.5 73.1% 22.3% 22.7% 4.1x 18.5x 3.6x 12.6x 54.5%

Median: $4,049.1 $3,647.9 $773.7 74.8% 23.5% 20.8% 2.9x 13.0x 2.7x 10.9x 33.3%





EBITDA Margin 23.5%




Current Ratio 2.0

Quick Ratio 1.8




W orking Capital to TTM Operating Expense Ratio 0.5





Levered FCF Growth (YoY) 5.0%






-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Data Management and Integration Software Stock Market Return: Jan - August 2011

Data Management and Integration S&P NASDAQ SEG SW Index


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SEG Software Index Category: Development Tools and Open Source


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnAdobe Systems Incorporated ADBE $12,465.2 $11,358.1 $4,049.2 89.5% 35.8% 24.3% 2.8x 7.8x 2.7x 6.4x -8.9%

BSQUARE Corporation BSQR $50.1 $27.9 $102.4 21.4% 4.3% 35.7% 0.3x 6.4x n/a n/a 63.2%

Magic Software Enterprises Ltd. MGIC $161.7 $115.4 $100.3 41.1% 16.6% 45.0% 1.2x 6.9x 1.0x n/a 84.7%

Microsoft Corporation MSFT $222,861.9 $184,628.9 $69,943.0 77.7% 42.9% 11.9% 2.6x 6.1x 2.5x 5.7x 13.4%


Progress Software Corporation PRGS $1,391.9 $1,003.4 $542.8 84.8% 29.3% 6.1% 1.8x 6.3x 1.8x 5.5x 16.9%

Red Hat, Inc. RHT $7,632.1 $6,721.6 $964.9 83.5% 21.3% 23.2% 7.0x 32.7x 6.0x 20.2x 14.4%

Median: $7,632.1 $6,721.6 $964.9 77.7% 29.3% 24.3% 2.6x 6.9x 2.6x 6.4x 16.9%





EBITDA Margin 29.3%




Current Ratio 2.7

Quick Ratio 2.5















-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Development Tools and Open Source Software Stock Market Return: Jan - August 2011

Development Tools and Open Source S&P NASDAQ SEG SW Index


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SEG Software Index Category: Education and eLearning


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnArchipelago Learning, Inc. ARCL $244.7 $286.1 $68.1 90.9% 31.3% 39.8% 4.2x 13.4x 3.6x 14.2x -10.7%

Blackboard Inc. BBBB $1,483.9 $1,610.2 $481.4 68.7% 16.4% 18.2% 3.3x 20.3x 2.8x 11.8x 27.6%

Renaissance Learning, Inc. RLRN $454.7 $445.4 $136.1 79.1% 29.1% 6.8% 3.3x 11.3x 3.1x 10.4x 95.0%

Rosetta Stone, Inc. RST $283.8 $168.6 $258.9 82.3% -4.3% -3.8% 0.7x n/a 0.6x 14.0x -21.2%

Median: $369.2 $365.8 $197.5 80.7% 22.8% 12.5% 3.3x 13.4x 2.9x 12.9x 8.5%


TTM EBITDA Growth -1.9%



EBITDA Margin 22.8%




Current Ratio 0.8

Quick Ratio 0.7




Working Capital to TTM Operati ng Expense Ratio -0.2











-20%

-15%

-10%

-5%

0%

5%

10%

15%

Education and eLearning Software Stock Market Return: Jan - August 2011

Education & eLearning S&P NASDAQ SEG SW Index


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SEG Software Index Category: Electronic Design Automation


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnCadence Design Systems, Inc. SCIL $53.1 $44.4 $42.8 75.2% -6.0% -27.9% 1.0x n/a 1.0x 88.8x -41.5%

Magma Design Automation, Inc. LAVA $347.7 $322.0 $142.0 86.4% 10.7% 12.0% 2.3x 21.2x 1.9x 6.7x 62.6%

Mentor Graphics Corporation MENT $1,242.9 $1,342.9 $990.0 85.1% 16.3% 24.6% 1.4x 8.3x 1.3x 6.3x 23.3%

PDF Solutions, Inc. PDFS $140.9 $99.2 $63.2 61.1% 7.7% 6.7% 1.6x 20.3x 1.2x 6.2x 45.4%

Synopsys, Inc. SNPS $3,718.1 $2,679.8 $1,520.6 81.5% 20.6% 13.2% 1.8x 8.6x 1.7x 5.9x 13.2%

Median: $347.7 $322.0 $142.0 81.5% 10.7% 12.0% 1.6x 14.4x 1.3x 6.3x 23.3%





EBITDA Margin 10.7%

Net Income Margin -0.1%



Current Ratio 1.6

Quick Ratio 1.4




Working Capi tal to TTM Operating Expense Ratio 0.2











-20%

-10%

0%

10%

20%

30%

40%

Electronic Design Automation Software Stock Market Return: Jan - August 2011

Electronic Design Automation S&P NASDAQ SEG SW Index


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


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnANSYS, Inc. ANSS $4,978.7 $4,497.3 $626.7 88.0% 49.1% 13.5% 7.2x 14.6x 6.0x 11.5x 39.2%

Autodesk, Inc. ADSK $6,452.2 $5,078.9 $2,079.0 90.0% 20.3% 14.2% 2.4x 12.0x 2.2x 7.8x 1.7%

Cimatron Ltd. CIMT $35.9 $21.4 $38.6 85.3% 12.3% 16.0% 0.6x 4.5x n/a n/a n/a

Dassault Systmes DSY $9,892.5 $8,490.5 $2,474.6 86.0% 30.0% 28.3% 3.4x 11.4x n/a n/a 34.7%

GSE Systems Inc. GVP $39.6 $21.0 $47.8 24.2% -1.0% 8.0% 0.4x n/a 0.4x n/a -42.7%

Parametric Technology Corporation PMTC $2,113.9 $2,103.1 $1,095.6 69.4% 14.9% 10.9% 1.9x 12.9x 1.6x 7.5x 5.8%

Stratasys, Inc. SSYS $489.7 $474.1 $135.9 51.4% 24.3% 25.1% 3.5x 14.4x 2.8x n/a 1.9%

Median: $2,113.9 $2,103.1 $626.7 85.3% 20.3% 14.2% 2.4x 12.5x 2.2x 7.8x 3.8%





EBITDA Margin 20.3%




Current Ratio 2.2

Quick Ratio 2.0















-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Engineering, PLM & CAD/CAM Software Stock Market Return: Jan - August 2011

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


17/43

SEG Software Index Category: Enterprise Resource Planning


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

ReturnCDC Software Corporation CDCS $103.6 $72.8 $218.6 54.5% 11.3% 6.1% 0.3x 3.0x 0.3x 3.0x -30.3%

Deltek PROJ $430.2 $554.0 $319.3 61.4% 8.3% 21.5% 1.7x 20.8x 1.5x 7.2x -7.7%


QAD Inc. QADA $179.8 $117.3 $239.2 57.1% 8.6% 13.3% 0.5x 5.7x 0.5x 4.1x n/a

SAP SAP $65,233.8 $65,119.9 $19,433.8 70.2% 35.7% 20.6% 3.4x 9.4x 3.1x 8.5x 25.5%

Median: $430.2 $554.0 $319.3 61.4% 11.3% 20.6% 1.7x 8.9x 1.5x 6.7x 8.9%





EBITDA Margin 11.3%




Current Ratio 1.1

Quick Ratio 1.0















-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Enterprise Resource Planning Software Stock Market Return: Jan - August 2011

Enterprise Resource Planning S&P NASDAQ SEG SW Index


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SEG Software Index Category: Financial Services


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

ACI Worldwide, Inc. ACIW $1,001.0 $905.2 $456.2 70.3% 20.9% 11.1% 2.0x 9.5x 1.9x 8.0x 57.5%

Bottomline Technologies EPAY $781.7 $669.6 $189.4 54.5% 13.9% 19.9% 3.5x 25.4x 3.0x 12.9x 64.0%

DST Systems, Inc. DST $2,183.5 $2,960.2 $2,321.8 19.6% 17.0% 1.7% 1.3x 7.5x 1.6x 5.8x 15.2%

EPIQ Systems, Inc. EPIQ $447.0 $641.5 $259.4 59.9% 24.0% 11.2% 2.5x 10.3x 2.0x 7.1x 0.6%

Fair Isaac Corporation FICO $986.6 $1,240.1 $614.5 69.7% 25.0% 2.0% 2.0x 8.1x 1.9x 6.2x 14.1%

Fiserv FISV $7,902.8 $10,942.8 $4,216.0 41.9% 30.7% 3.2% 2.6x 8.5x 2.5x 7.5x 11.6%

NetSol Technologies Inc. NTWK $50.3 $72.3 $40.4 72.6% 41.8% 22.6% 1.8x 4.3x 1.7x n/a 12.2%

S1 Corporation SONE $502.2 $430.5 $227.3 46.5% 5.4% 2.1% 1.9x 35.1x 1.7x 12.7x 89.5%

Median: $884.1 $787.4 $357.8 57.2% 22.5% 7.2% 2.0x 9.0x 1.9x 7.5x 14.6%





EBITDA Margin 22.5%




Current Ratio 1.9

Quick Ratio 1.6















-15%

-10%

-5%

0%

5%

10%

15%

Financial Services Software Stock Market Return: Jan - August 2011

Financial Services Software S&P NASDAQ SEG SW Index


19/43

SEG Software Index Category: Healthcare


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/ EBITDA

YoY Stock

Market

Return

Accelrys Inc. ACCL $359.2 $243.6 $114.8 71.0% -7.0% n/a 2.1x n/a 1.6x 7.3x 7.4%

Allscripts Healthcare Solutions Inc. MDRX $3,374.9 $3,683.3 $1,240.0 47.4% 17.0% n/a 3.0x 17.5x 2.4x 7.9x 7.8%

Cerner Corporation CERN $11,150.7 $10,583.5 $1,978.8 81.6% 26.7% 12.2% 5.3x 20.1x 4.7x 14.7x 81.1%

Computer Programs and Sys, Inc. CPSI $783.5 $758.5 $173.2 45.0% 23.7% 27.3% 4.4x 18.5x 3.9x 15.8x 73.3%

eResearchTechnology, Inc. ERT $256.5 $244.9 $174.6 42.5% 24.9% 80.3% 1.4x 5.6x 1.3x 4.3x -29.3%

MedAssets MDAS $672.8 $1,573.9 $480.7 75.6% 27.6% 31.1% 3.3x 11.8x 2.6x 8.3x -42.3%

Merge Healthcare MRGE $530.7 $735.8 $199.6 63.5% 22.6% 134.4% 3.7x 16.3x 2.9x 11.8x 134.9%

Omnicell, Inc. OMCL $518.2 $337.0 $231.7 54.8% 7.2% 6.6% 1.5x 20.1x 1.3x 9.4x 40.2%

Quality Systems, Inc. QSII $2,695.8 $2,570.7 $370.9 64.8% 30.3% 20.4% 6.9x 22.9x 5.7x 17.3x 64.2%

Simulations Plus, Inc. SLP $50.2 $40.3 $11.8 75.9% 32.7% 14.1% 3.4x 10.4x 3.0x 7.2x 31.3%

Median: $672.8 $758.5 $231.7 63.5% 23.7% 27.3% 3.3x 18.0x 2.6x 9.4x 40.2%





EBITDA Margin 23.7%




Current Ratio 2.5

Quick Ratio 2.1














-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Healthcare Software Stock Market Return: Jan - August 2011

Healthcare S&P NASDAQ SEG SW Index


20/43

SEG Software Index Category: IT Conglomerates


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/ EBITDA

YoY Stock

Market

Return

Cisco Systems, Inc. CSCO $86,187.9 $58,424.9 $43,218.0 61.8% 25.8% 7.9% 1.4x 5.2x 1.3x 4.2x -21.6%Hewlett Packard HPQ $53,990.3 $67,128.3 $128,401.0 24.2% 14.0% 3.9% 0.5x 3.7x 0.5x 4.0x -32.3%

IBM IBM $205,308.4 $223,373.4 $104,562.0 46.4% 24.7% 7.4% 2.1x 8.7x 2.0x 8.4x 39.6%

Microsoft Corporation MSFT $222,861.9 $184,628.9 $69,943.0 77.7% 42.9% 11.9% 2.6x 6.1x 2.5x 5.7x 13.4%


Median: $141,998.2 $129,541.2 $69,943.0 61.8% 25.8% 7.9% 2.1x 6.1x 2.0x 5.7x 13.4%





EBITDA Margin 25.8%




Current Ratio 2.6Quick Ratio 2.3










Copyright 2011 by Software Equity Group, L.L.C., All Rights Reserved August 2011 Monthly Flash Report




-20%

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-10%

-5%

0%

5%

10%

15%

20%

IT Conglomerates Software Stock Market Return: Jan - August 2011

IT Conglomerates S&P NASDAQ SEG SW Index


21/43

SEG Software Index Category: Mobile Solutions/Content


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

Access TSE:4813 $336.7 $31.4 $254.9 68.0% 19.2% -43.8% 0.1x 0.6x n/a n/a -36.8%

AutoNavi Holdings AMAP $743.1 $579.8 $105.4 69.7% 35.6% n/a 5.5x 15.4x 4.2x 10.6x -2.3%

Bitstream Inc. BITS $58.8 $54.9 $26.6 52.7% -13.8% 21.7% 2.1x n/a n/a n/a -10.2%

DigitalGlobe, Inc. DGI $1,048.3 $1,248.5 $322.9 85.2% 47.3% 6.6% 3.9x 8.2x 3.4x 5.7x -26.1%

Glu Mobile, Inc. GLUU $192.6 $166.2 $65.2 77.6% -3.7% -9.4% 2.5x n/a 2.3x n/a 169.9%

Gree TSE:3632 $7,411.1 $7,121.0 $795.8 91.4% 48.8% 82.2% 8.9x 18.3x n/a n/a 119.1%

Myriad Group SWX:MYRN $188.7 $153.2 $101.0 66.7% 8.2% -4.2% 1.5x 18.5x n/a n/a -23.9%

Motricity MOTR $108.2 $105.2 $140.7 64.1% 14.9% 24.7% 0.7x 5.0x 0.8x 15.4x -68.3%

Openwave Systems Inc. OPWV $162.8 $81.6 $155.5 60.3% -9.8% -15.1% 0.5x n/a 0.6x 52.3x 17.9%

Opera OB:OPERA $640.3 $555.4 $148.2 45.0% 22.9% 32.9% 3.7x 16.3x n/a n/a 48.2%

PCTEL, Inc. PCTI $110.8 $54.1 $73.2 45.1% 1.9% 18.3% 0.7x 39.8x 0.7x 6.5x 11.0%

Sky-mobi Limited MOBI $193.0 $110.9 $104.9 30.4% 5.4% n/a 1.1x 19.5x 1.0x 10.4x n/aSmith Micro Software, Inc. SMSI $67.5 $5.5 $103.2 85.3% -2.4% -13.1% 0.1x n/a 0.1x n/a -75.3%

TeleCommunication Systems, Inc. TSYS $216.3 $304.3 $396.3 36.8% 11.5% 14.5% 0.8x 6.7x 0.6x 4.6x 23.1%

Trunkbow International Holdings TBOW $108.4 $90.0 $30.5 73.8% 54.1% 104.4% 3.0x 5.5x n/a n/a n/a

Velti Plc VELT $582.3 $444.9 $142.0 60.2% 7.0% 24.5% 3.1x 44.7x 2.2x 8.4x n/a

Median: $192.8 $132.0 $123.1 65.4% 9.9% 16.4% 1.8x 15.9x 0.9x 9.4x -2.3%


TTM EBITDA Growth -1.9%



EBITDA Margin 9.9%

Net Income Margin -2.7%



Current Ratio 2.3

Quick Ratio 2.0





Levered FCF Margin -1.2%










-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Mobile Solutions/Content Software Stock Market Return: Jan - August 2011

Mobile Solutions/Content S&P NASDAQ SEG SW Index


22/43

SEG Software Index Category: Multimedia, Graphics and Digital Media


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Adobe Systems Incorporated ADBE $12,465.2 $11,358.1 $4,049.2 89.5% 35.8% 24.3% 2.8x 7.8x 2.7x 6.4x -8.9%

Avid Technology, Inc. AVID $379.2 $354.6 $688.1 52.7% 3.1% 6.7% 0.5x 16.5x 0.5x 5.9x -11.0%

Monotype Imaging Holdings TYPE $421.9 $426.8 $118.6 92.6% 41.1% 22.2% 3.6x 8.8x 3.3x 7.6x 58.4%

Nuance Communications, Inc. NUAN $5,671.7 $6,052.1 $1,261.5 66.7% 21.1% 17.6% 4.8x 22.8x 4.0x 10.1x 26.7%

RealNetworks, Inc. RNWK.D $316.4 -$11.5 $355.3 63.2% 0.9% -29.4% n/a n/a n/a n/a -14.7%

Rovi Corporation ROVI $5,439.6 $6,025.5 $632.7 85.0% 38.6% 22.9% 9.5x 24.7x 7.1x 14.6x 12.4%

SeaChange International, Inc. SEAC $252.6 $164.3 $212.7 49.9% 10.5% 0.1% 0.8x 7.3x 0.7x n/a 1.6%

Median: $421.9 $426.8 $632.7 66.7% 21.1% 17.6% 3.2x 12.7x 3.0x 7.6x 1.6%





EBITDA Margin 21.1%




Current Ratio 2.0

Quick Ratio 1.9















-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Multimedia, Graphics and Digital Media Software Stock Market Return: Jan - August 2011

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


23/43

SEG Software Index Category: Networking/Network Performance Mgmt


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Allot Communications Ltd. ALLT $312.2 $251.3 $66.5 71.6% 12.2% 37.2% 3.8x 31.0x 3.2x n/a 158.6%

Cisco Systems, Inc. CSCO $86,187.9 $58,424.9 $43,218.0 61.8% 25.8% 7.9% 1.4x 5.2x 1.3x 4.2x -21.6%

F5 Networks, Inc. FFIV $6,584.9 $5,999.6 $1,091.5 81.8% 32.0% 36.0% 5.5x 17.2x 4.6x 11.2x -6.7%

NetScout Systems Inc. NTCT $590.0 $472.5 $287.0 78.9% 22.6% 6.7% 1.6x 7.3x 1.5x 5.5x -12.8%

OPNET Technologies, Inc. OPNT $774.1 $652.9 $157.1 79.9% 18.3% 21.2% 4.2x 22.7x 3.5x 15.0x 119.0%

Radware Ltd. RDWR $557.9 $469.3 $155.6 79.7% 13.9% 20.0% 3.0x 21.6x 2.7x n/a 9.1%

SolarWinds, Inc. SWI $1,804.7 $1,635.2 $171.4 94.5% 46.8% 26.8% 9.5x 20.4x 7.6x 15.3x 71.8%

Median: $774.1 $652.9 $171.4 79.7% 22.6% 21.2% 3.8x 20.4x 3.2x 11.2x 9.1%





EBITDA Margin 22.6%




Current Ratio 2.6

Quick Ratio 2.4Cash as Percent of Market Cap 19.5%














-40%

-30%

-20%

-10%

0%

10%

20%

30%

Networking/Network Performance Mgmt Software Stock Market Return: Jan - August 2011

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


24/43

SEG Software Index Category: Security


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Blue Coat Systems, Inc. BCSI $620.6 $357.6 $474.1 77.6% 16.2% -5.7% 0.8x 4.7x 0.8x 6.4x -22.0%

Check Point Software Tech Ltd. CHKP $11,301.1 $10,150.6 $1,173.6 88.1% 54.8% 16.0% 8.6x 15.8x 7.8x 13.1x 56.1%

Commtouch Software Ltd. CTCH $78.8 $62.8 $21.2 83.0% 21.8% 31.6% 3.0x 13.6x 2.5x n/a -8.7%

Sourcefire, Inc. FIRE $787.5 $653.4 $141.4 78.7% 9.1% 18.7% 4.6x 50.6x 3.9x 21.5x 8.9%

Symantec Corporation SYMC $12,858.1 $12,640.1 $6,410.0 85.2% 27.1% 7.1% 2.0x 7.3x 1.8x 5.1x 25.8%

Trend Micro TSE:4704 $4,132.3 $2,637.9 $1,196.4 81.9% 33.0% 0.1% 2.2x 6.7x n/a n/a 15.9%

VASCO Data Security International VDSI $270.5 $185.9 $138.6 65.5% 14.7% 35.0% 1.3x 9.1x 1.2x 10.1x 18.9%

Websense, Inc. WBSN $818.6 $805.4 $350.5 83.5% 19.9% 9.5% 2.3x 11.6x 2.2x 8.0x 5.8%

Median: $803.0 $729.4 $412.3 82.5% 20.9% 12.8% 2.3x 10.3x 2.2x 9.1x 12.4%

Income Statement Analysis (Median) -

TTM Revenue Growth 12.8%TTM EBITDA Growth 11.9%



EBITDA Margin 20.9%




Current Ratio 2.5

Quick Ratio 2.3




Working Capi tal to TTM Operat ing Expense Ratio 0.9










-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-

Security S&P NASDAQ SEG SW Index


25/43

SEG Software Index Category: Storage and Systems Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

BMC Software, Inc. BMC $7,127.9 $5,867.3 $2,106.8 76.1% 32.1% 9.6% 2.8x 8.7x 2.6x 5.9x 12.6%

CA, Inc. CA $10,593.6 $9,044.6 $4,523.0 86.8% 35.2% 6.4% 2.0x 5.7x 1.8x 4.9x 16.7%

Citrix Systems CTXS $11,378.2 $10,479.8 $2,023.6 90.3% 25.5% 17.3% 5.2x 20.3x 4.5x 14.8x 4.3%

CommVault Systems, Inc. CVLT $1,509.7 $1,255.6 $340.0 87.2% 13.6% 22.7% 3.7x 27.2x 3.2x 16.8x 38.1%

Compuware Corporation CPWR $1,849.3 $1,654.5 $952.4 68.1% 20.8% 7.7% 1.7x 8.3x 1.5x 6.7x 18.0%

EMC EMC $46,647.1 $45,652.1 $18,553.9 59.8% 22.4% 19.5% 2.5x 11.0x 2.2x 7.8x 23.8%

FalconStor Software, Inc. FALC $152.8 $115.3 $84.0 73.1% -8.3% 3.3% 1.4x n/a 1.3x n/a 4.1%

IBM IBM $205,308.4 $223,373.4 $104,562.0 46.4% 24.7% 7.4% 2.1x 8.7x 2.0x 8.4x 39.6%

Network Appliance, Inc. NTAP $14,009.3 $10,560.2 $5,427.1 64.3% 18.0% 27.8% 1.9x 10.8x 1.6x 6.9x -6.8%


Quest Software, Inc. QSFT $1,479.9 $1,265.4 $801.0 88.8% 15.8% 10.8% 1.6x 10.0x 1.4x 5.2x -19.6%

Symantec Corporation SYMC $12,858.1 $12,640.1 $6,410.0 85.2% 27.1% 7.1% 2.0x 7.3x 1.8x 5.1x 25.8%VMWare VMW $39,847.8 $36,594.7 $3,314.8 82.8% 23.1% 37.8% 11.0x 47.8x 9.0x 24.3x 20.3%

Median: $11,378.2 $10,479.8 $3,314.8 76.4% 23.1% 10.8% 2.1x 9.5x 2.0x 6.8x 18.0%





EBITDA Margin 23.1%




Current Ratio 1.4















-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Storage and Systems Management Software Stock Market Return: Jan - August 2011

Storage and Systems Management S&P NASDAQ SEG SW Index


26/43

SEG Software Index Category: Supply Chain Management & Logistics


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

American Software, Inc. AMSW.A $211.8 $169.2 $90.2 53.7% 14.4% 17.9% 1.9x 13.0x 1.7x n/a 58.7%

Ariba, Inc. ARBA $2,532.6 $2,322.1 $446.7 63.5% 7.2% 39.7% 5.2x 71.9x 4.7x 19.9x 75.7%

Aspen Technology, Inc. AZPN $1,578.5 $1,453.4 $198.2 73.6% -25.7% 19.1% 7.3x n/a 6.3x n/a 75.3%

CDC Software Corporation CDCS $103.6 $72.8 $218.6 54.5% 11.3% 6.1% 0.3x 3.0x 0.3x 3.0x -30.3%

JDA Software Group JDAS $1,123.3 $1,140.1 $653.2 58.5% 24.3% 32.5% 1.7x 7.2x 1.6x 5.8x 15.0%

Manhattan Associates, Inc. MANH $755.0 $645.7 $305.6 56.3% 17.3% 9.5% 2.1x 12.2x 1.8x 8.5x 37.0%

ModusLink Global Solutions, Inc. MLNK $179.1 $59.9 $905.8 10.4% 2.6% -1.7% 0.1x 2.6x n/a n/a -28.9%

Retalix Ltd. RTLX $325.9 $189.7 $218.7 41.3% 8.6% 10.9% 0.9x 10.1x 0.8x 7.0x 12.1%

The Descartes Systems Group Inc. TSX:DSG $394.5 $320.5 $108.6 66.3% 29.0% 28.8% 3.0x 10.2x 2.7x 9.5x 12.5%

XATA Corporation XATA $18.7 $50.2 $64.8 51.2% 7.3% -7.1% 0.8x 10.6x n/a n/a -33.2%

Median: $360.2 $255.1 $218.6 55.4% 9.9% 14.4% 1.8x 10.2x 1.8x 7.8x 13.8%





EBITDA Margin 9.9%




Current Ratio 2.1















-15%

-10%

-5%

0%

5%

10%

15%Supply Chain Management & Logistics Software Stock Market Return: Jan - August 2011

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


27/43

SEG Software Index Category: Vertical - Finance


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Advent Software, Inc. ADVS $1,212.4 $1,133.9 $302.9 71.9% 20.8% 13.9% 3.7x 18.0x 3.3x 11.9x -6.6%

Fundtech Ltd. FNDT $260.1 $185.9 $151.4 52.4% 13.1% 15.1% 1.2x 9.3x 1.1x 6.8x 30.6%

Jack Henry & Associates, Inc. JKHY $2,526.2 $2,616.2 $966.9 41.3% 31.7% 15.6% 2.7x 8.5x 2.5x 8.0x 24.3%

MSCI, Inc. MSCI $4,164.5 $4,994.8 $662.9 70.0% 44.5% 49.7% 7.5x 16.9x 5.2x 11.1x 15.6%

SS&C Corporation SSNC $1,298.0 $1,419.1 $349.9 49.7% 36.6% 16.7% 4.1x 11.1x 3.7x 9.0x 17.0%

Median: $1,298.0 $1,419.1 $349.9 52.4% 31.7% 15.6% 3.7x 11.1x 3.3x 9.0x 17.0%





EBITDA Margin 31.7%




Current Ratio 1.8















-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%Vertical - Finance Software Stock Market Return: Jan - August 2011

Vertical - Finance S&P NASDAQ SEG SW Index


28/43

SEG Software Index Category: Vertical - Other


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Blackbaud, Inc. BLKB $1,084.8 $1,051.4 $350.9 58.7% 19.3% 11.4% 3.0x 15.5x 2.7x 11.4x 20.3%

Constellation TSX:CSU $1,550.6 $1,595.0 $705.2 56.9% 20.5% 31.2% 2.3x 11.0x 2.0x 9.6x 86.5%

Ebix, Inc. EBIX $613.1 $615.1 $150.7 80.4% 44.1% 27.3% 4.1x 9.3x 3.3x n/a -11.8%

Itron, Inc. ITRI $1,620.5 $2,030.6 $2,370.4 31.3% 14.1% 21.6% 0.9x 6.1x 0.9x 6.0x -26.3%

Micros Systems MCRS $3,851.0 $3,077.3 $1,007.9 55.6% 22.8% 10.2% 3.1x 13.4x 2.8x 11.9x 25.1%

PROS Holdings PRO $427.2 $362.8 $81.1 74.5% 10.5% 18.2% 4.5x 42.7x 3.4x 21.1x 101.5%

Sapiens International SPNS $86.4 $71.2 $55.4 44.6% 14.0% 12.7% 1.3x 9.2x n/a n/a 101.0%

Tyler Technologies, Inc. TYL $801.5 $831.5 $296.3 44.7% 17.9% 1.8% 2.8x 15.7x 2.6x 13.1x 45.8%

Median: $943.1 $941.4 $323.6 56.3% 18.6% 15.5% 2.9x 12.2x 2.7x 11.7x 35.4%





EBITDA Margin 18.6%




Current Ratio 1.4














-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Vertical - Other Software Stock Market Return: Jan - August 2011

Vertical - Other S&P NASDAQ SEG SW Index


29/43

SEG Software Index Category: Video Games


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

Activision Blizzard ATVI $13,542.4 $10,598.4 $4,767.0 57.6% 28.1% 5.1% 2.2x 7.9x 2.6x 7.0x 11.0%

Electronic Arts Inc. ERTS $7,548.4 $5,700.4 $3,773.0 59.8% 4.0% -1.4% 1.5x 37.5x 1.4x 9.0x 48.3%

Konami Corporation TSE: 9766 $5,088.9 $4,981.7 $3,220.5 28.2% 14.9% 0.1% 1.5x 10.4x 1.4x 8.2x 128.4%

Majesco Entertainment Company COOL $99.8 $81.3 $116.1 34.3% 10.4% 43.0% 0.7x 6.7x 0.6x n/a 306.7%

TakeTwo Interactive TTWO $1,146.7 $1,007.2 $1,095.9 40.1% 5.3% n/a 0.9x 17.2x 0.8x 5.0x 59.3%

THQ Inc. THQI $133.2 $114.2 $711.0 60.8% 2.6% -11.7% 0.2x 6.2x 0.1x 2.9x -45.1%

Median: $3,117.8 $2,994.5 $2,158.2 48.9% 7.9% 0.1% 1.2x 9.1x 1.1x 7.0x 53.8%





EBITDA Margin 7.9%




Current Ratio 2.3















-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Video Game Software Stock Market Return: Jan - August 2011

Video Games S&P NASDAQ SEG SW Index


30/43

SEG Software Index Category: Workforce and Service Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

ClickSoftware Technologies Ltd. CKSW $269.0 $213.2 $75.9 62.6% 16.5% 10.3% 2.8x 17.0x 2.4x 10.7x 57.3%

Callidus Software, Inc. CALD $156.6 $150.1 $77.7 42.1% -3.7% 17.6% 1.9x n/a 1.7x 17.3x 44.9%

NICE Systems Ltd. NICE $1,990.9 $1,650.0 $741.7 61.5% 16.2% 17.4% 2.2x 13.8x 2.0x 7.7x 17.4%

Saba Software SABA $204.2 $179.5 $116.7 63.8% -0.5% 6.5% 1.5x n/a 1.4x n/a 33.3%

Verint VRNT $1,095.4 $1,801.6 $744.8 68.5% 18.4% 4.5% 2.4x 13.1x 2.3x 8.8x 21.2%

Median: $649.8 $914.8 $429.2 62.7% 7.8% 11.9% 2.1x 13.5x 1.8x 8.8x 27.3%





EBITDA Margin 7.8%




Current Ratio 2.5














-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%Workforce and Service Mgmt Software Stock Market Return: Jan - August 2011

Workforce and Service Mgmt S&P NASDAQ SEG SW Index


31/43

Company Performance

SEG SaaS Index



32/43


33/43

Category Performance

SEG Internet Index



34/43

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 $806.66 $711.92 $338.29 65.0% 16.3% 20.4% 2.5x 12.9x 2.1x 8.3x 26.1%Ad Tech & Lead Generation $439.72 $410.83 $163.98 43.7% 9.8% 25.1% 1.6x 13.6x 1.3x 6.6x 25.5%

Infastructure $510.57 $382.44 $222.75 62.7% 15.3% 24.6% 2.1x 11.9x 1.7x 7.3x 19.4%

Media $1,413.05 $1,205.20 $437.34 52.6% 17.9% 16.3% 2.4x 10.3x 2.2x 8.1x 3.8%

Retail $497.85 $424.54 $336.27 39.3% 9.4% 12.6% 1.4x 14.4x 1.3x 9.6x 32.9%

Search $1,778.44 $1,461.73 $522.41 54.9% 11.3% 26.1% 1.2x 11.1x 1.0x 7.5x 28.5%

Services $1,181.38 $944.30 $306.43 73.1% 16.8% 21.9% 5.1x 29.9x 3.5x 14.5x 69.1%

Travel $4,679.87 $4,578.41 $628.99 78.8% 20.3% 25.5% 5.6x 26.4x 5.7x 18.7x 3.0%

Video Games $2,142.45 $1,781.64 $596.65 78.2% 49.7% 29.7% 4.7x 7.3x 3.0x 5.3x 29.8%





EBITDA Margin 16.3%




Current Ratio 2.7




W orking Capital to TTM Operating Expense Ratio 0.4










-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%SEG Internet Index Software Stock Market Return: Jan - August 2011

SEG Internet Index S&P NASDAQ SEG SW Index


35/43

SEG Internet Index Category: Ad Tech and Lead Generation


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

comScore Inc. SCOR $508.2 $478.7 $207.9 68.4% 4.3% 44.6% 2.3x 53.2x 1.9x 9.9x -12.2%DG FastChannel, Inc. DGIT $600.7 $541.6 $268.4 66.6% 44.9% 24.1% 2.0x 4.5x 1.3x 3.4x 38.6%

interCLICK, Inc. ICLK $142.8 $136.1 $118.2 43.0% 9.2% 64.0% 1.2x 12.5x 0.9x 6.6x 56.6%

Inuvo, Inc. INUV $17.5 $18.9 $49.3 43.6% 2.6% 26.1% 0.4x 14.7x n/a n/a -38.9%

LookSmart, Ltd. LOOK $25.2 $4.0 $36.2 43.7% 10.5% -29.9% 0.1x 1.0x 0.1x 1.0x -5.8%

Marchex Inc. MCHX $371.3 $342.9 $120.0 42.0% 1.7% 31.9% 2.9x 171.3x 2.1x 13.0x 150.9%

QuinStreet QNST $573.6 $512.4 $403.0 27.5% 18.6% 20.4% 1.3x 6.8x 1.1x 5.4x 12.4%

SINA Corporation SINA $7,074.7 $6,252.7 $437.4 57.1% 20.9% 15.4% 14.3x 68.5x 12.2x 108.9x 150.8%

ValueClick, Inc. VCLK $1,210.9 $1,068.4 $477.1 71.3% 28.7% 16.1% 2.2x 7.8x 1.8x 6.1x 40.6%

Median: $439.7 $410.8 $164.0 43.7% 9.8% 25.1% 1.6x 13.6x 1.3x 6.6x 25.5%





EBITDA Margin 9.8%




Current Ratio 2.5















-40%

-30%

-20%

-10%

0%

10%

20%

30%Internet Ad Tech and Lead Generation Software Stock Market Return: Jan - August 2011

Internet Ad Tech and Lead Generation S&P NASDAQ SEG Internet Index


36/43

SEG Internet Index Category: Infrastructure


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 $270.9 $252.0 $71.8 67.6% 11.7% 11.1% 3.5x 29.9x 3.2x 21.9x 216.1%Akamai Technologies, Inc. AKAM $4,045.2 $3,548.0 $1,091.2 69.9% 38.6% 17.3% 3.3x 8.4x 3.0x 6.6x -52.4%

BroadSoft, Inc. BSFT $814.9 $701.5 $119.9 82.2% 21.5% 59.7% 5.9x 27.3x 4.9x 19.3x 275.8%

Cbeyond, Inc. CBEY $285.3 $275.9 $469.3 67.6% 13.0% 7.6% 0.6x 4.5x 0.6x 3.2x -22.1%

ChinaCache International CCIH $172.7 $105.1 $80.1 30.9% 10.3% 66.8% 1.3x 12.7x 1.0x 4.7x n/a

Digital River Inc. DRIV $798.4 $443.6 $373.4 82.5% 13.9% -3.0% 1.2x 8.5x 1.1x 4.7x -23.7%

EarthLink Inc. ELNK $795.4 $1,212.9 $918.5 57.8% 27.3% 41.5% 1.3x 4.8x 0.9x 3.6x -13.8%

Equinix, Inc. EQIX $4,423.2 $6,358.0 $1,433.5 44.9% 40.1% 41.3% 4.4x 11.1x 3.6x 8.0x 3.1%

Interactive Intelligence, Inc. ININ $608.4 $538.6 $192.2 68.8% 16.2% 34.5% 2.8x 17.3x 2.3x 13.4x 116.8%

Internap Network Services Corp. INAP $262.3 $270.3 $240.1 40.7% 14.5% -4.7% 1.1x 7.8x 1.1x 5.7x 26.0%

Keynote Systems Inc. KEYN $412.8 $321.3 $96.0 54.0% 18.2% 21.5% 3.3x 18.4x 3.0x 12.4x 138.9%

Limelight Networks, Inc. LLNW $285.9 $173.0 $205.4 54.8% 1.6% 42.2% 0.8x 52.4x 0.9x 9.2x -36.6%

Rackspace Hosting RAX $4,768.0 $4,774.9 $891.7 69.1% 28.3% 27.7% 5.4x 18.9x 4.2x 12.5x 85.7%

Tucows Inc. TCX $39.6 $35.6 $88.9 24.4% 6.8% 8.2% 0.4x 5.9x 0.4x 5.4x 19.4%

VeriSign, Inc. VRSN $5,183.3 $4,373.5 $722.5 77.9% 48.3% 12.6% 6.1x 12.5x 5.4x 10.2x 7.1%

Median: $510.6 $382.4 $222.7 62.7% 15.3% 24.6% 2.1x 11.9x 1.7x 7.3x 19.4%

TTM Revenue Growth 24.6%TTM EBITDA Growth 19.1%



EBITDA Margin 15.3%




Current Ratio 2.2














-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Internet Infrastructure Software Stock Market Return: Jan - August 2011

Internet Infrastructure S&P NASDAQ SEG Internet Index


37/43

SEG Internet Index Category: Media


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

AOL, Inc. AOL $1,666.6 $1,327.8 $2,253.8 33.4% 20.5% -21.1% 0.6x 2.9x 0.6x 4.4x -29.9%DemandMedia DMD $726.0 $622.4 $297.9 51.3% 20.6% 34.7% 2.1x 10.2x 1.7x 6.2x n/a

eHealth, Inc. EHTH $272.7 $136.8 $161.9 81.8% 21.3% 14.2% 0.8x 4.0x 0.9x 6.3x 26.1%

Google, Inc. GOOG $174,669.4 $141,688.4 $33,328.0 65.2% 38.4% 27.1% 4.3x 11.1x 3.4x 8.1x 20.2%

Local.com Corp. LOCM $62.7 $49.2 $74.9 40.8% 1.0% 2.4% 0.7x 68.6x 0.6x 4.1x -16.2%

Monster Worldwide, Inc. MWW $1,159.5 $1,082.6 $1,015.0 49.4% 11.0% 18.3% 1.1x 9.7x 1.0x 4.5x -14.4%

Netflix NFLX $12,346.5 $12,205.3 $2,656.3 37.4% 15.2% 41.2% 4.6x 30.3x 3.1x 21.0x 87.2%

Pandora P $2,126.6 $2,031.3 $203.3 40.3% -0.5% n/a 10.0x n/a 5.8x n/a n/a

Sohu.com Inc. SOHU $3,131.5 $2,591.7 $710.3 73.6% 41.1% 29.6% 3.6x 8.9x 2.8x 8.3x 68.7%

TheStreet.com, Inc. TST $77.1 $20.8 $58.2 53.9% -7.9% -2.9% 0.4x n/a n/a n/a -13.9%

Tudou Holdings Limited TUDO $740.1 $692.2 $51.3 22.1% -85.5% n/a 13.5x n/a n/a n/a n/a

WebMD Health Corp. WBMD $2,072.3 $1,723.8 $576.8 65.5% 26.1% 20.1% 3.0x 11.4x 2.9x 8.2x -30.7%

XO Group XOXO $274.2 $179.5 $117.1 80.1% 11.5% 5.2% 1.5x 13.3x 1.4x 10.3x 27.9%

Yahoo! Inc. YHOO $17,184.1 $14,710.6 $5,569.7 64.3% 25.7% -14.4% 2.6x 10.3x 3.2x 9.5x 3.8%

Youku YOKU $2,855.9 $2,235.4 $91.7 32.2% 3.5% n/a 24.4x 695.0x 12.6x n/a n/a

Median: $1,413.1 $1,205.2 $437.3 52.6% 17.9% 16.3% 2.4x 10.3x 2.2x 8.1x 3.8%





EBITDA Margin 17.9%




Current Ratio 2.6















-40%

-30%

-20%

-10%

0%

10%

20%Internet Media Software Stock Market Return: Jan - August 2011

Internet Media S&P NASDAQ SEG Internet Index


38/43

SEG Internet Index Category: Retail


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

1-800-FLOWERS.COM, Inc. FLWS $159.4 $183.7 $689.8 40.6% 4.9% 3.3% 0.3x 5.4x 0.3x 4.3x 57.6%Amazon.com, Inc. AMZN $97,700.4 $91,345.4 $40,277.0 22.4% 4.5% 40.5% 2.3x 50.0x 1.6x 30.7x 72.4%

Bitauto Holdings Limited BITA $280.1 $180.4 $76.0 67.5% 16.4% n/a 2.4x 14.5x 1.6x 7.1x n/a

Bluefly, Inc. BFLY $39.1 $35.7 $93.5 34.8% -1.6% 13.7% 0.4x n/a n/a n/a 0.6%

BlueNile NILE $553.9 $480.5 $342.9 21.6% 6.7% 7.0% 1.4x 20.9x 1.3x 14.4x -5.4%

DangDang DANG $622.9 $368.6 $432.4 20.0% -0.1% n/a 0.9x n/a 0.6x 87.5x n/a

eBay Inc. EBAY $39,784.0 $37,932.8 $10,050.7 71.7% 30.0% 11.4% 3.8x 12.6x 3.0x 9.1x 32.9%

IAC/InterActiveCorp IACI $3,358.6 $2,599.1 $1,810.0 62.6% 12.2% 25.1% 1.4x 11.7x 1.3x 6.8x 59.5%

Liquidity Services, Inc. LQDT $679.2 $574.7 $329.6 42.1% 12.1% 19.1% 1.7x 14.4x 1.6x 10.0x 86.5%

Mecox Lane Limited MCOX $116.9 $16.5 $226.3 38.0% -2.0% 8.1% 0.1x n/a 0.1x n/a n/a

Mercadolibre, Inc. MELI $2,974.3 $2,857.9 $249.1 77.3% 35.0% 25.8% 11.5x 32.8x 8.4x 23.5x 2.2%

Overstock.com, Inc. OSTK $243.7 $205.0 $1,094.8 17.4% 1.4% 8.2% 0.2x 12.9x 0.2x 8.1x -25.3%

PetMed Express, Inc. PETS $212.8 $153.2 $230.9 35.0% 13.1% -2.0% 0.7x 5.1x 0.7x 6.5x -34.4%ZAGG, Inc. ZAGG $441.8 $496.8 $118.1 47.9% 21.0% 163.0% 4.2x 20.1x 2.7x 12.9x 336.9%

Median: $497.8 $424.5 $336.3 39.3% 9.4% 12.6% 1.4x 14.4x 1.3x 9.6x 32.9%





EBITDA Margin 9.4%




Current Ratio 2.3















-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Internet Retail Software Stock Market Return: Jan - August 2011

Internet Retail S&P NASDAQ SEG Internet Index


39/43

SEG Internet Index Category: Search


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 $50,868.3 $49,321.2 $1,632.8 80.5% 56.9% 83.7% 30.2x 53.1x 18.1x 30.2x 85.9%Google Inc. GOOG $174,669.4 $141,688.4 $33,328.0 65.2% 38.4% 27.1% 4.3x 11.1x 3.4x 8.1x 20.2%

IAC/InterActiveCorp IACI $3,358.6 $2,599.1 $1,810.0 62.6% 12.2% 25.1% 1.4x 11.7x 1.3x 6.8x 59.5%

InfoSpace, Inc. INSP $364.7 $101.3 $238.6 35.7% 6.8% -0.1% 0.4x 6.2x 0.5x 3.2x 36.8%

Local.com Corp. LOCM $62.7 $49.2 $74.9 40.8% 1.0% 2.4% 0.7x 68.6x 0.6x 4.1x -16.2%

LookSmart, Ltd. LOOK $25.2 $4.0 $36.2 43.7% 10.5% -29.9% 0.1x 1.0x 0.1x 1.0x -5.8%

ReachLocal, Inc. RLOC $425.4 $331.7 $334.5 47.1% -1.9% 35.8% 1.0x n/a 0.7x 15.7x 11.8%

Sohu.com Inc. SOHU $3,131.5 $2,591.7 $710.3 73.6% 41.1% 29.6% 3.6x 8.9x 2.8x 8.3x 68.7%

Yandex YNDX $10,003.0 $9,334.0 $563.0 78.4% 45.1% n/a 16.6x 36.7x 12.5x 25.3x n/a

Median: $1,778.4 $1,461.7 $522.4 54.9% 11.3% 26.1% 1.2x 11.1x 1.0x 7.5x 28.5%





EBITDA Margin 11.3%




Current Ratio 3.6















-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Internet Search Software Stock Market Return: Jan - August 2011

Internet Search S&P NASDAQ SEG Internet Index

S G C S


40/43

SEG Internet Index Category: Services


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Active Networks ACTV $876.9 $722.3 $306.4 56.4% 7.2% n/a 2.4x 32.7x 2.0x 15.4x n/aAncestory.com ACOM $1,621.3 $1,550.3 $354.4 83.6% 33.1% 38.4% 4.4x 13.2x 3.5x 9.7x 86.0%

Bankrate RATE $1,665.0 $1,797.2 $345.4 62.4% 31.9% 156.2% 5.2x 16.3x 4.2x 13.3x n/a

eHealth, Inc. EHTH $272.7 $136.8 $161.9 81.8% 21.3% 14.2% 0.8x 4.0x 0.9x 6.3x 26.1%

FriendFinder FFN $84.2 $523.4 $342.1 69.4% 32.8% 2.5% 1.5x 4.7x 1.5x 5.2x n/a

Jiayuan.com International DATE $403.6 $313.3 $32.5 65.7% 21.5% n/a 9.6x 44.7x 5.0x 18.3x n/a

LinkedIn LNKD $8,098.4 $7,726.3 $358.5 82.7% 13.4% n/a 21.6x 161.3x 12.8x 87.5x n/a

LoopNet, Inc. LOOP $716.8 $608.7 $82.1 84.1% 24.8% 9.1% 7.4x 29.9x 6.6x 18.7x 66.6%

Qihoo QIHU $2,748.3 $2,439.0 $93.3 88.7% 0.7% 120.0% 26.1x 3813.9x 12.8x 48.9x n/a

Renren RENN $2,877.4 $1,649.1 $83.1 79.4% 13.4% n/a 19.9x 148.3x 10.7x n/a n/a

Stamps.com STMP $280.6 $257.4 $92.8 73.1% 12.6% 10.4% 2.8x 21.9x 2.5x 13.6x 71.7%

Shutterfly SFLY $1,854.4 $1,778.5 $348.2 54.6% 9.5% 31.8% 5.1x 53.8x 3.3x 17.8x 141.4%

VistaPrint VPRT $1,181.4 $944.3 $817.0 64.8% 16.8% 21.9% 1.2x 6.9x 0.9x 6.5x -4.1%Zillow Z $1,024.6 $1,008.4 $44.9 84.1% 2.8% n/a 22.5x 797.8x 13.0x 79.1x n/a

Median: $1,181.4 $944.3 $306.4 73.1% 16.8% 21.9% 5.1x 29.9x 3.5x 14.5x 69.1%





EBITDA Margin 16.8%




Current Ratio 3.1














-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25% Internet Services Software Stock Market Return: Jan - August 2011

Internet Services S&P NASDAQ SEG Internet Index

SEG I t t I d C t T l


41/43

SEG Internet Index Category: Travel


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA

YoY Stock

Market

Return

Ctrip CTRP $5,989.5 $5,401.3 $494.4 78.1% 37.9% 33.6% 10.9x 28.8x 8.9x 21.6x 3.0%Expedia EXPE $8,312.7 $7,801.1 $3,642.0 79.6% 23.8% 17.4% 2.1x 9.0x 1.9x 7.2x 32.6%

HomeAway AWAY $3,370.3 $3,755.5 $200.8 84.7% 16.8% n/a 18.7x 111.5x 14.8x 53.4x n/a

MakeMyTrip MMYT $695.4 $598.1 $143.0 36.6% 4.1% n/a 4.2x 101.2x 6.1x 38.5x -44.1%

Orbitz OWW $262.5 $589.8 $763.6 79.6% 14.7% 2.9% 0.8x 5.3x 0.8x 4.6x -49.6%

Pricelilne PCLN $26,739.4 $25,432.5 $3,645.1 65.8% 29.1% 38.9% 7.0x 24.0x 5.3x 15.8x 84.3%

Travelzoo TZOO $601.2 $560.9 $130.7 93.2% 24.6% 25.7% 4.3x 17.4x 3.2x 10.5x 100.0%

Median: $4,679.9 $4,578.4 $629.0 78.8% 20.3% 25.5% 5.6x 26.4x 5.7x 18.7x 3.0%





EBITDA Margin 20.3%




Current Ratio 2.0














-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35% Internet Travel Software Stock Market Return: Jan - August 2011

Internet Travel S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Video Games


42/43

SEG Internet Index Category: Video Games


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

ChangeYou CYOU $2,142.5 $1,781.6 $379.5 88.6% 64.6% 31.2% 4.7x 7.3x 3.6x 6.2x 53.7%Giant Interactive GA $1,877.1 $923.3 $239.1 87.3% 63.6% 29.7% 3.9x 6.1x 3.0x 4.9x 32.9%

Netease NTES $6,601.2 $4,858.3 $969.3 66.9% 49.7% 36.5% 5.0x 10.1x 4.2x 8.3x 27.3%

NCSoft KOSE:A036 $6,500.6 $6,011.5 $596.6 78.2% 32.7% -8.8% 10.1x 30.9x n/a n/a 70.8%

Perfect World PWRD $1,066.7 $752.8 $425.6 82.7% 38.2% 13.8% 1.8x 4.6x 1.5x 3.7x -14.1%

Shanda SNDA $1,929.4 $1,102.8 $967.5 59.0% 20.5% 12.3% 1.1x 5.6x 0.9x 5.3x -17.3%

Tencent Holdings SEHK:700 $43,281.4 $41,306.8 $3,685.0 66.3% 50.4% 49.4% 11.2x 22.2x n/a n/a 29.8%

Median: $2,142.5 $1,781.6 $596.6 78.2% 49.7% 29.7% 4.7x 7.3x 3.0x 5.3x 29.8%





EBITDA Margin 49.7%




Current Ratio 3.3

Quick Ratio 3.1














-20%

-10%

0%

10%

20%

30%

40%

Internet Video Games Software Stock Market Return: Jan - August 2011

Internet Video Games S&P NASDAQ SEG Internet Index
http://www.softwareequity.com/index.aspx


43/43
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SEG Monthly Flash Report September 2011

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