INVESTMENT BANKING
September 2010
September 2010 MONTHLY TECHNOLOGY NEWSLETTER LTM Market Performance
CONTENTS Section
Page
Market Highlights .............................. 1 Industry and Sector Valuation
30%
20%
Metrics ................................................ 2 Observations: Internet ...................... 3
10%
Observations: Software .................... 5 Observations: Communications ...... 6
0%
Technology IPO Spotlight................. 7 Industry Performance and Metrics:
-10% Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Internet ..................................... 10 S&P 500
Software ................................... 11
NASDAQ
Dow Jones Industrial Average
Communications ..................... 12 Mergers & Acquisitions .................... 13 Private Placements............................ 27 Detailed Sector Data, Valuation Multiples, Metrics .............................. 39 Morgan Joseph LLC Overview ......... 50 For more information please contact Morgan Joseph’s Senior Technology Investment Banking Team: Mary Lou Malanoski EVP and Head of Investment Banking (212) 218-3748
[email protected] Rick Juarez Managing Director (650) 270-2702
[email protected] Gene Ramirez Managing Director (650) 270-2703
[email protected] Sandeep Beotra Director (212) 218-3722
[email protected] Zachary Fisher Director (212) 218-3749
[email protected] Piyush Pandey Vice President (650) 270-2706
[email protected]
Market Highlights • The Dow Jones Industrial and S&P 500 scored their strongest September since 1939. In September, the Dow Industrial rose 7.7% and the S&P 500 gained 8.8%. The Nasdaq Composite rose an impressive 12% for the month which was its best performance since 1998. • The U.S. IPO market appeared to pick up steam and saw the debut of 33 companies raising $5.3 billion. This dramatic improvement in U.S. performance was driven by fast-growing tech companies and Asian ADRs. On a global basis, approximately $44 billion was raised representing a 31% increase on a year-over-year basis. Asia Pacific companies accounted for the largest share, raising $37 billion. • Technology IPOs continue to be well received. Leading performers included U.S. software companies; Qlik (NasdaqGM:QLIK) - business intelligence, RealPage (NasdaqGM:RP) - on demand property management software, and Intralinks (NYSE:IL) - online document manager, who all saw an average gain of 75% from their original IPO price. • The U.S. IPO market appears to be well positioned for an active 4Q10 with approximately 170 companies in the registration pipeline.
Observations and Updates • There were 768 Tech M&A deals in 3Q10 with a value of $46 billion. This was down from 2Q10 which had 773 deals with a value of $62 billion. • The most active participants in 3Q included IBM (NYSE:IBM) and HP (NYSE:HP) who completed 7 and 4 deals respectively. On a combined dollar basis their deals represented 16% of all deals. Microsoft (NasdaqGM:MSFT), Oracle (NasdaqGM:ORCL), and Symantec (NasdaqGM:SYMC) completed no deals in the third quarter. On a YTD basis, Google (NasdaqGM:GOOG) leads with 28 deals while Microsoft (NasdaqGM:MSFT) sits at zero. • The security sector saw more consolidation. Intel (NasdaqGM:INTC) scooped up McAfee (NYSE:MFE) for $7.7 billion (approximately 3.4x Implied Enterprise Value/Revenues). HP (NYSE:HP) picked up ArcSight for $1.6 billion (approximately 7.7x Implied Enterprise Value/Revenues). IBM (NYSE:IBM) grabbed OpenPages for a reported $175 million. • After an 18 day bidding war, HP (NYSE:HP) outbid Dell (NasdaqGM:DELL) to pick up 3Par, a leading provider of data storage and information management for $2.3 billion (approximately 10.9x Implied Enterprise Value/Revenues). • Social networking companies continue to be in demand. Salesforce.com (NYSE:CRM) acquired Activa Live, an enterprise, on-demand, and live chat software for customer service, sales, and support. AOL (NYSE:AOL) also acquired Thing Labs (Brizzly) an online social media platform that incorporates Twitter, Facebook, and Instant Message like features. • There continues to be activity in the Mobile Resource Management sector. Trimble’s (NasdaqGS:TRMB) acquisition of Punch Telematix will enable them to grow its European business by offering a full solution to fleet managers in Europe.
Please see disclosures on page 50 of this newsletter. Note: All stock prices as of 9/30/2010 unless otherwise stated.
Morgan Joseph LLC
Page 1 of 51
Monthly Technology Newsletter
2010
Industry and Sector Valuation Metrics LTM Revenue
EBITDA
Revenue
NTM EBITDA
Software Applications Infrastructure On Demand Software and Services Open Source Business Intelligence and Analytics Communications Security Search
1.8x 2.9x 3.5x 3.6x 1.7x 2.0x 2.8x 3.7x
14.6x 11.2x 36.4x 35.3x 10.3x 13.0x 13.3x 12.3x
1.7x 2.5x 3.1x 4.3x 1.6x 1.7x 2.4x 3.9x
8.6x 8.1x 18.4x 22.4x 7.8x 6.3x 8.2x 9.6x
Internet Commerce Internet Media Internet Gaming and Mobile Content Internet Infrastructure Services
3.1x 2.0x 1.0x 2.8x
23.4x 18.7x 8.9x 13.1x
3.3x 1.9x 0.3x 2.4x
11.8x 13.2x 10.0x 8.4x
Communications Equipment Optical Components Wireline Telecom Storage/Enterprise
1.3x 1.8x 1.8x
17.7x 11.6x 9.8x
1.4x 1.6x 1.5x
7.8x 10.1x 9.0x
Semiconductor Equipment
1.5x
10.1x
1.1x
5.2x
Semiconductors Memory/Programmable Analog Digital Media Wireless Semiconductor Telecom and Data Networks Semiconductor Design IP
2.6x 1.8x 1.3x 2.2x 3.0x 6.5x
10.0x 7.6x 16.8x 12.7x 15.1x 31.9x
2.1x 1.6x 0.9x 2.2x 2.1x 4.5x
7.0x 6.0x 7.0x 8.0x 11.4x 14.3x
Wireless Wireless Carriers Wireless Infrastructure Integrated Wireline & Wireless Carriers
1.6x 2.9x 1.5x
5.3x 10.6x 4.5x
1.2x 2.2x 1.5x
4.5x 7.8x 4.3x
2.1x 1.5x 11.5x
8.2x 9.5x 9.4x
2.1x 1.7x 2.6x
7.0x 6.8x 7.1x
2.8x 0.5x 3.5x 2.5x 2.4x 0.6x 12.5x 1.6x
8.0x 8.5x 17.0x 7.9x 18.4x 33.6x NM 10.9x
1.3x NA 1.1x 1.3x 2.2x 10.0x 1.5x 1.7x
10.4x NA 10.6x 6.6x 12.6x 6.6x NA 9.8x
Financial Technology Mobile Payment Payment Software & Services Broad Based Financial Services Clean Technology Alternative Fuels Wind Solar Hydrogen/Methanol Fuel Cell Water/Geothermal Recycling Technologies/Services Clean Energy Management Waste Emissions/Purification
Source: Capital IQ 1) Please see pages 38 to 48 for detailed sector composition, valuation multiples and other metrics. Figures above are as of 9/30/10 2) The metrics above should only be used as preliminary valuation guides. Individuals should conduct their own independent analyses before making any investment related decisions
Morgan Joseph LLC
Page 2 of 51
Monthly Technology Newsletter
2010
Internet: Observations & Select Transactions Internet M&A Transactions: Alibaba.com acquires Auctiva Alibaba.com Limited (SEHK:1688), a leading global e-commerce company for small businesses based in China, acquired California based Auctiva Corporation, the largest e-Bay third party developer, on August 18, 2010. The acquisition is a key component of Alibaba.com’s strategy to expand its U.S. presence. Through this acquisition, Alibaba.com gains access to 170,000 active users with potential sourcing needs from suppliers on Alibaba.com's sourcing platform, and AliExpress, a wholesale transaction platform operated by Alibaba.com. Auctiva will operate as a new business unit within Alibaba.com and will retain its own brand name and operations. Jeff Schlicht will remain the CEO of Auctiva and the management team, staff, locations, dedication and commitment to the users remain unchanged. Morgan Joseph acted as the financial advisor for Auctiva. Welsh Carson acquisition of Peak 10 On September 1, 2010 Welsh, Carson, Anderson & Stowe announced that in a partnership with Peak 10's executive management, they will acquire a majority stake in Peak 10, Inc., purchasing the Company from previous investors, Seaport Capital and McCarthy Group LLC. The financial terms of the transaction were undisclosed. President and Chief Executive Officer, David Jones will continue to lead Peak 10’s existing management team. Peak 10 has also closed a new credit facility for $155 million for future growth plans in managed services and high-growth markets. Two members of the Welsh Carson team, John Clark, serving as Chairman, and Darren Battistoni, will now serve on Peak 10’s Board of Directors. SoftLayer Technologies' completes management buyout with GI Partners SoftLayer Technologies, Inc. management team and GI Partners acquired SoftLayer Technologies, Inc. for approximately $480 million in a management buyout on August 3, 2010. SoftLayer announced that it was in discussions to merge with The Planet (www.theplanet.com), one of GI’s other hosting properties. Chief Executive Officer Lance Crosby will lead the merged corporation, which is likely to keep the SoftLayer name; current CEO of The Planet, Doug Erwin will resign following the merger. Combined, the companies revenue projections are approximately $300 million and would boost SoftLayer to number two in the web hosting industry. IBM acquires Netezza On September 19, 2010 International Business Machines Corp. (NYSE: IBM) announced it will acquire Netezza Corporation (NYSE: NZ) from Battery Ventures, MeriTech Capital Partners, Matrix Partners and others for $1.7 billion in cash (approximately 7.1x Implied Enterprise Value/Revenues). IBM will pay $27 per share of each issued and outstanding common stock. Netezza restricted stock will be canceled and converted for an amount in cash equal to the product of the number of shares of Netezza common stock subject to such RSU and $27.00 per share. Netezza will become a wholly owned subsidiary of IBM, who intends to integrate Netezza within their Information Management software portfolio. The agreement provides a break up fee of $56 million to be paid by Netezza. The agreement was unanimously approved by the Board of both companies and is expected to close in late 2010. HP buys 3Par after bidding war with Dell On August 28, 2010, 3PAR's Board of Directors accepted the unsolicited proposal by Hewlett-Packard (NYSE:HPQ) for $2.1 billion in cash ($33 per share), but provided Dell (NasdaqGS: DELL) with the ability to match the bid within three days. On September 2, 2010, Hewlett-Packard Company entered into a merger agreement to acquire 3PAR, Inc. for $2.3 billion in cash (approximately 10.9x Implied Enterprise Value/Revenues). This decision led 3PAR to terminate its original August 23, 2010 merger agreement with Dell, thus they will pay Dell a $72 million termination fee. Under the terms of the agreement, Hewlett-Packard will acquire all the issued and outstanding stock and in the money options of 3Par. 3Par Board of Directors unanimously approved Hewlett-Packards bid. On September 14, 2010, the transaction was approved by antitrust authorities. TechCrunch Acquisition by AOL On September 28, 2010 AOL, Inc. (NYSE: AOL) acquired Techcrunch, Inc, a leading authority on technology news, for a rumored $40 million with $25 million cash. The deal includes Techcrunch’s network of sites. TechCrunch, its properties and conferences will join the AOL Technology Network while retaining editorial independence. TechCrunch will remain based in San Francisco, and Michael Arrington (Founder and Co-Editor) expects to continue for at least three years. Internet Brand acquired by Hellman & Friedman On September 17, 2010 Hellman & Friedman LLC announced it will acquire Internet Brands, Inc. (NasdaqGS: INET) from Idealab, Clearstone Venture Partners I of Clearstone Venture Partners, Redpoint Ventures, Polaris Venture Partners, Inc., Battery Ventures and others for approximately $620 million in cash. Internet Brands stockholders will receive $13.35 in cash for each outstanding share of common stock, restricted stock award, and in the money options. *The information presented is drawn from publicly available sources, including public filings with the Securities and Exchange Commissions and market information made publicly available by third party providers.
Morgan Joseph LLC
Page 3 of 51
Monthly Technology Newsletter
2010
Internet: Observations & Select Transactions (Continued) Internet Private Placements: DocExchange (DBA SpringCM) raises $15 million On September 15, 2010 SpringCM, who provides enterprise content management solutions and a web-based SaaS model, announced that it raised $15 million from existing investors (Foundation Capital and North Bridge Venture Partners). The funding involved the participation of new investor, Silicon Valley Bank. SpringCM will use the proceeds to fuel expansion of channel sales, partner relationships and also for research and development purposes. iContact Corporation raises $42 million On August 27, 2010 iContact Corporation, who provides web-based software for online communication management, announced its series B round of funding provided gross proceeds of $42.50 million. The company will issue common shares. iContact raised $40 million from JMI Equity. iContact Corporation will use the proceeds to make investments in sales and marketing, back-end technology, its product features and usability, and for global expansion. ValueScout Inc. (DBA Bloomspot) raises $9 million An September 3, 2010 Bloomspot, who operates a website that provides dramatically discounted coupons for high end consumption, announced that it will raise $9 million in its Series A round of equity funding led by Menlo Ventures, The transaction included participation from existing investors; True Ventures, Harrison Metal, Jeff Weiner, Erik Blachford, and Brad Garlinghouse. The Company will use the proceeds to further pursue its market for luxury hotels, restaurants, and spas that cater to more affluent, mature clientele. MeetYourFriends.com raises $50 million MeetYourFriends.com has reportedly raised $50 million in its first round of funding by issuing common shares to investors. No investors were disclosed, but reportedly the round saw participation from leading venture capitalists.
*The information presented is drawn from publicly available sources, including public filings with the Securities and Exchange Commissions and market information made publicly available by third party providers.
Morgan Joseph LLC
Page 4 of 51
Monthly Technology Newsletter
2010
Software and Services: Observations & Select Transactions Software M&A Transactions: Intel buys McAfee On August 18, 2010 Intel Corporation (NasdaqGS: INTC) entered into a definitive agreement to acquire McAfee, Inc. (NYSE: MFE) for $7.5 billion in cash (approximately 3.4x Implied Enterprise Value/Revenues). Intel will pay $48 per share for all the issued and outstanding stock of McAfee, along with acquiring all in the money options, restricted stock units, and performance stock units of McAfee. McAfee will operate as a wholly-owned subsidiary of Intel under Intel’s Software and Services Group. The agreement provides a breakup fee of $230 million to be paid by McAfee to Intel in the event of termination of the acquisition. The completion of the transaction is subject to proxy by McAfee’s stockholders. HP buys Arcsight On September 13, 2010 Hewlett-Packard Company (NYSE: HPQ) signed a definitive agreement to acquire ArcSight, Inc. (NasdaqGM: ARST) for $1.5 billion in cash (approximately 7.7x Implied Enterprise Value/Revenues). Hewlett-Packard will tender offer to acquire all the issued and outstanding stock and in the money options of ArcSight for $43.5 per share. The agreement provides a break up fee of $61 million to be paid by ArcSight to Hewlett-Packard in the event of termination. Certain stockholders of ArcSight, who own 15.6% of the outstanding stock of ArcSight, have entered into tender and voting agreements with Hewlett-Packard which provides that these shareholders will tender their shares in offer and vote in favor of transaction. Hewlett-Packard has the Top-Up option to purchase from ArcSight additional number of shares to enable Hewlett to own one more than 90% of the stock of ArcSight. The transaction was unanimously approved by both Companies’ Boards. The deal is expected to close by the end of 2010. IBM buys GRC player OpenPages On September 15, 2010. International Business Machines Corp. (NYSE: IBM) entered into a definitive agreement to acquire OpenPages, Inc. The financial terms of the transaction were not disclosed. International Business Machines intends to integrate OpenPages within its Business Analytics software portfolio.
Software Private Placements: Conviva raises $15 million On September 15, 2010 Conviva, Inc. announced that it has raised $15 million in funding in its series C round led by new investor GGV Capital. Foundation Capital, New Enterprise Associates, and Pelion Venture Partners all participated in the round. Conviva, Inc. will use the proceeds to expand their online video technology and to fund expansion into global markets.
*The information presented is drawn from publicly available sources, including public filings with the Securities and Exchange Commissions and market information made publicly available by third party providers.
Morgan Joseph LLC
Page 5 of 51
Monthly Technology Newsletter
2010
Communications: Observations & Select Transactions
Communication M&A Transactions: EarthLink to Acquire ITC^DeltaCom One of the nation’s leading Internet service providers, EarthLink, Inc. (Nasdaq: ELNK), will acquire ITC^DeltaCom, Inc. (OTCBB: ITCD), a provider of integrated communications services in the southeast. ITC^DeltaCom shareholders will receive $3.00 per share in cash, which amounts to a transaction value of $516 million, including the assumption of $325 million in debt. EarthLink is paying a multiple 4.7x Adjusted EBITDA for the twelve months ended June 30, 2010. PAETEC to Acquire Cavalier Telephone PAETEC Holding Corp. (NasdaqGS: PAET) announced that it has agreed to acquire Cavalier Telephone Corp. from M/C Venture Partners and other investors in an all-cash deal valued at $460 million. PAETEC, a provider of local communications services, would gain 17,000 additional fiber route miles. Pro Forma revenue and EBITDA for the 12 months ended June 30, 2010 are $1.95 billion and $391 million, respectively. Nokia Siemens Networks to Acquire Motorola Inc.’s Wireless Infrastructure Business Nokia Siemens Networks (NSN), will acquire most of Motorola’s wireless network infrastructure assets for $1.2 billion in cash. NSN will receive assets associated with Motorola’s GSM, CDMA, WCDMA, WiMax, and LTE products and services. Motorola will keep its iDEN business and substantially all of the patents related to the wireless network infrastructure business. The deal strengthens Nokia Siemens presence in the US and Japan.
*The information presented is drawn from publicly available sources, including public filings with the Securities and Exchange Commissions and market information made publicly available by third party providers.
Morgan Joseph LLC
Page 6 of 51
Monthly Technology Newsletter
2010
Selected Technology IPOs: Recent Performance ($ in millions, except per share data) Pricing Date
Company
09/29/2010
Elster Group
09/16/2010
SouFun Holdings
08/11/2010
Ticker
Industry
Current Price
Offer Price
% Change Current/Offer
Shares Offered (mm)
Amount Raised
LTM Revenue
LTM EBITDA
ELT
Technology
13.80
13.00
6.2%
16.2
210.6
1,689.2
239.8
SFUN
Technology
65.18
42.50
53.4%
2.9
124.7
158.3
55.1
RealPage
RP
Technology
19.08
11.00
73.5%
12.3
135.3
160.0
21.6
08/11/2010
MediaMind
MDMD
Technology
13.80
11.50
20.0%
5.0
57.5
74.9
15.7
08/05/2010
IntraLinks
IL
Technology
16.91
13.00
30.1%
11.0
143.0
157.6
9.2
07/28/2010
Envestnet
ENV
Technology
10.46
9.00
16.2%
7.0
63.0
87.4
9.6
07/20/2010
Camelot Information Systems
CIS
Technology
17.57
11.00
59.7%
13.3
146.7
153.7
26.0 (14.0)
07/15/2010
RealD
RLD
Technology
18.49
16.00
15.6%
12.5
200.0
188.8
07/15/2010
Qlik Technologies
QLIK
Technology
22.05
10.00
120.5%
11.2
112.0
193.0
31.5
07/14/2010
Smart Technologies
TSX:SMA
Technology
13.91
17.00
(18.2%)
38.8
660.1
708.7
165.1
06/30/2010
AutoNavi Holdings
AMAP
Technology
17.50
12.50
40.0%
8.6
107.5
62.1
18.9
06/28/2010
Tesla Motors
TSLA
Technology/Auto mfg.
20.41
17.00
20.0%
13.3
226.1
113.3
(76.1)
05/19/2010
ReachLocal
RLOC
Technology
13.78
13.00
6.0%
4.2
54.6
246.4
(4.8)
05/12/1010
Telenav
TNAV
Technology
5.29
8.00
(33.9%)
7.0
56.0
171.2
72.7
04/28/2010
Alpha and Omega
AOSL
Technology
11.36
18.00
(36.9%)
5.1
91.8
301.8
42.2
04/28/2010
Convio
CNVO
Technology
9.22
9.00
2.4%
5.1
45.9
63.1
4.0
04/21/2010
DynaVox
DVOX
Technology
8.12
15.00
(45.9%)
9.4
141.0
114.3
29.4
04/21/2010
Mitel Networks
MITL
Technology
6.14
14.00
(56.1%)
10.5
147.0
648.5
86.5
04/21/2010
SPS Commerce
SPSC
Technology
12.82
12.00
6.8%
4.1
49.2
40.8
4.4
03/30/2010
Meru Networks
MERU
Technology
17.24
15.00
14.9%
4.4
66.0
77.6
0.7
03/30/2010
SS&C Technologies
SSNC
Technology
15.80
15.00
5.3%
10.7
160.5
299.7
114.6
03/23/2010
Calix
CALX
Technology
14.36
13.00
10.5%
6.3
81.9
267.8
(0.3)
03/23/2010
MaxLinear
MXL
Technology
11.22
14.00
(19.9%)
6.4
89.6
65.7
8.5
03/10/2010
Sensata Technologies
ST
Technology
19.76
18.00
9.8%
31.6
568.8
1,409.5
369.4 56.7
02/10/2010
QuinStreet
QNST
Technology
14.99
15.00
(0.1%)
10.0
150.0
334.8
11/19/2009
Archipelago Learning
ARCL
Bus Services-Education
11.97
16.50
(27.5%)
6.3
104.0
48.7
17.2
11/19/2009
Global Defense Tech
GTEC
Technology
13.70
13.00
5.4%
4.6
59.8
204.9
13.2 41.3
11/17/2009
Fortinet
FTNT
Technology
25.00
12.50
100.0%
12.5
156.3
282.7
11/04/2009
Ancestry.com
ACOM
Technology
22.76
13.50
68.6%
7.4
99.9
256.0
76.3
09/24/2009
Shanda Games Limited
GAME
Technology
5.36
12.50
(57.1%)
83.5
1,043.8
4,864.1
1,810.5
09/23/2009
A123 Systems
AONE
Energy
8.97
13.50
(33.6%)
28.2
380.7
95.2
(92.0)
08/05/2009
Avago Technologies
AVGO
Technology
22.51
15.00
50.1%
43.2
648.0
1,949.0
549.0
08/05/2009
CDC Software
CDCS
Technology
6.05
12.00
(49.6%)
4.8
57.6
206.1
34.7
07/01/2009
LogMeIn
LOGM
Technology
35.98
16.00
124.9%
6.7
106.7
84.0
14.8
06/25/2009
Medidata Solutions, Inc.
MDSO
Technology
19.20
14.00
37.1%
6.3
88.2
150.7
23.3
05/20/2009
OpenTable
OPEN
Technology
68.08
20.00
240.4%
3.0
60.0
79.9
19.6
05/19/2009
SolarWinds
SWI
Technology
17.26
12.50
38.1%
12.1
151.3
135.2
53.6
Source: CapIQ, date: 09/30/10
Morgan Joseph LLC
Page 7 of 51
Monthly Technology Newsletter
2010
Selected Technology IPOs: Filings ($ in millions, except per share data) Initial Filing Date
Transaction Company Name
Exchange:Ticker
Value
LTM Revenue
Short Business Description
09/28/2010
Cornerstone OnDemand, Inc.
NA
115
TBA
Cornerstone OnDemand, Inc. provides learning and talent management solution delivered as software-as-a-service.
09/27/2010
AnaPass Inc.
NA
21
TBA
AnaPass, Inc., a fabless semiconductor company, designs, develops, and markets serial link technology based mixed signal IC and IP products for display applications.
09/24/2010
Didasko Ltd.
NA
11
TBA
Didasko Limited engages in the development and supply of technology-based learning resources; and the delivery of vocational training in Australia.
09/21/2010
Jiangsu Dongguang MicroElectronics Co., Ltd.
NA
27
15
09/20/2010
Trony Solar Holdings Company Limited
NA
TBA
96
09/13/2010
Elster Group SE (NYSE:ELT)
NYSE:ELT
211
TBA
Elster Group SE develops, manufactures, and distributes metering solutions for water, gas, and electricity.
09/13/2010
Shanghai Chaori Solar Energy Science & Technology Co., Ltd.
NA
191
TBA
Shanghai Chaori Solar Energy Science & Technology Co., Ltd. provides monocrystalline and polycrystalline solar modules and solar cells.
09/09/2010
ChinaCache International Holdings Ltd. (NasdaqGM:CCIH) SouFun Holdings Ltd. (NYSE:SFUN)
NasdaqGM:CCIH
84
46
NYSE:SFUN
125
158
SouFun Holdings Limited provides marketing, listing, technology, and information consultancy services to the real estate and home furnishing industries in the People’s Republic of China.
09/02/2010
Jiangsu DongGuang Micro-Electronics Co.,Ltd. engages in the design, fabrication, packaging, testing, marketing, and after-sales service of integrated circuits (ICs) and semiconductor power devices/components. Trony Solar Corporation designs, manufactures, and supplies photovoltaic power generation solutions and services for solar energy industry.
ChinaCache International Holdings Ltd. provides Internet content and application delivery services to businesses, government agencies, and other enterprises in the People's of Republic of China.
08/27/2010
Shenzhen Yitoa Intelligent Control Co., Ltd.
NA
63
TBA
Shenzhen Yitoa Intelligent Control Co., Ltd. engages in the design, development, manufacture, and sale of intelligent controllers.
08/23/2010
Shenzhen Tat Fook Technology Co., Ltd.
NA
118
TBA
Shenzhen Tat Fook Technology Co., Ltd. provides radio frequency products and services for use in wireless communication base stations of various telecommunication network systems in China.
08/13/2010
AlphaChips Inc. (KOSE:A117670)
KOSE:A117670
6
29
08/09/2010
Skype S.A.
NasdaqGM:SKP
TBA
TBA
Skype operates a software-based platform that enables real-time communications over the Internet.
08/06/2010
Demand Media, Inc.
NA
125
221
Demand Media, Inc. operates as an online media company in the United States.
08/06/2010
SemiLEDs Corporation
NA
173
29
08/03/2010
EnterMo Limited
NA
5
TBA
EnterMo Limited develops and markets ruggedized cases for wireless mobile technologies.
08/03/2010
Monocrystal PLC
NA
284
TBA
Monocrystal PLC develops, manufactures, and supplies synthetic sapphire for high-tech applications in electronics, optical devices, and metallization pastes for solar cells.
07/29/2010
SiGe Semiconductor, Inc.
NA
144
93
SiGe Semiconductor, Inc., a fabless semiconductor company, provides radio frequency (RF) semiconductor front end solutions that enable wireless connectivity across a range of applications.
07/26/2010
MakeMyTrip Limited (NasdaqGM:MMYT)
NasdaqGM:MMYT
70
84
MakeMyTrip Limited, an online travel company, provides travel products and solutions in India and the United States.
07/26/2010
Fujian Rongji Software Co., Ltd. (SZSE:002474)
SZSE:002474
142
TBA
07/22/2010
Woojin Inc. (KOSE:A105840)
KOSE:A105840
27
44
Woojin Inc develops sensing technologies.
07/15/2010
PC House Limited (COSE:PCHN-0000)
COSE:PCHNANN A0000
6
27
PC House Limited operates as an information communication technology (ICT) company in Sri Lanka.
07/12/2010
Suzhou Jinfu New Material Co., Ltd.
NA
129
64
Jin-fu, Suzhou New Material Co., Ltd. manufactures and sells thin film photovoltaic devices.
07/12/2010
SafeNet Inc.
NA
300
440
SafeNet Inc. provides enterprise network security solutions, hardware, software, and chips to protect communications, intellectual property, and digital identities.
07/12/2010
TPK Holdings Ltd.
NA
164
TBA
TPK Holdings Ltd. manufactures and markets touch screens.
07/12/2010
Shenzhen O-film Technologies Co., Ltd. (SZSE:002456)
SZSE:002456
106
66
Alphachips Inc. provides application-specific integrated circuit/system-on-chip (ASIC/SoC) frontend and back-end design and full custom layout services.
SemiLEDs Corporation develops, manufactures, and sells light emitting diodes (LED) chips and LED components.
Fujian Rongji Software Development Co. Ltd. manufactures software for software development.
Shenzhen O-film Technologies Co., Ltd. offers professional optical coating services for mobile phones model and cameras.
Source: IPO Home, IPO Market Watch and Capital IQ Note: As of 9/30/2010. This list is not representative of Morgan Joseph’s transactions; deals completed by various underwriting firms.
Morgan Joseph LLC
Page 8 of 51
Monthly Technology Newsletter
2010
Selected Technology IPOs: Withdrawals ($ in millions, except per share data) Transaction
Initial Filing Date
Company Name
Exchange:Ticker
LTM Revenue
Value
Short Business Description [Target/Issuer]
09/08/2010
Zhuhai Topsun Electronic Technology Co., Ltd.
-
-
-
Zhuhai Topsun Electronic Technology Co., Ltd. designs, manufactures, and distributes printed circuit boards for pick-up head, mobile phone, built-in antenna, LCD, camera, industrial, and medical applications. Trony Solar Corporation designs, manufactures, and supplies photovoltaic power generation solutions and services for solar energy industry.
10/30/2009
Trony Solar Holdings Company Limited
214.5
96.0
11/18/2009
Linkage Technologies International Holdings Limited
-
1,530.0
-
Linkage Technology Co., Ltd. provides application software development, system integration, and network equipment manufacturing services in electronic and information industry in China.
01/10/2008
Intelius, Inc.
-
143.75
133.2
Intelius, Inc., an information commerce company, engages in the provision of intelligence services to consumers over the Internet in the United States.
Source: IPO Home, IPO Market Watch and Capital IQ Note: As of 9/30/2010
Morgan Joseph LLC
Page 9 of 51
Monthly Technology Newsletter
2010
Industry Performance and Metrics: Internet Internet Comparable Group Relative Performance VC Investments: Internet ($ in millions)
Sub-Sector Business-to-Business (B2B) Content Delivery Internet Community Internet Retail Messaging Services Multimedia Streaming and Online Presentation Personal Applications Web Hosting Total:
2/16/10-3/1/10 3/16/10-4/15/10 4/16/10-5/15/10 5/16/10-6/15/10 6/16/10-7/09/10 7/9/10 - 9/30/10 Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions $9.1 2 $153.8 16 $55.5 15 $16.9 21 $24.0 17 $104.8 18 0.6 2 6.0 1 0.0 0 0.0 0 0.0 0 15.0 2 48.3 11 41.8 16 67.5 15 22.5 14 21.5 16 94.5 22 111.6 4 1,073.6 8 0.0 0 67.9 19 118.0 19 113.3 21 11.3 3 1.5 1 4.0 1 4.5 2 0.0 0 1.1 2 1.0 2 2.0 1 50.0 2 11.0 3 0.0 0 50.0 1 19.8 7 745.3 4 14.1 4 21.2 6 33.4 5 13.1 4 0.0 0 2.5 1 15.0 1 1.7 1 2 5.0 1 $201.7 31 $2,026.5 48 $206.1 38 $145.7 66 $196.8 59 $396.8 71
Source: Capital IQ
M&A Metrics: Internet ($ in millions)
Sub-Sector Business-to-Business (B2B) Content Delivery Internet Community Internet Retail Internet Service Providers (ISP) Messaging Services Multimedia Streaming and Online Presentation Personal Applications Web Hosting Total:
2/16/10-3/15/10 3/16/10-4/15/10 4/16/10-5/15/10 5/16/10-6/15/10 6/16/10-7/09/10 7/10/10 - 9/30/10 Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions $159.1 0.0 0.0 22.9 9.0 85.3 25.8 16.8 30.0 $349.0
13 1 3 17 3 3 1 6 1 48
$87.6 0.0 0.0 61.0 17.8 5.3 0.0 252.2 6.3 $430.2
14 1 5 8 5 4 0 3 3 43
$171.9 0.0 6.4 0.0 2.5 0.0 187.9 300.5 2.4 $671.6
11 1 8 0 5 0 6 5 4 35
$37.4 0.0 0.3 267.3 0.0 40.0 3.2 $348.3
18 0 13 16 1 2 0 5 5 60
$432.2 6.9 6.7 0.0 0.0 56.9 135.0 $637.6
13 1 7 11 2 0 0 5 5 44
$4,568.5 185.6 36.5 67.6 0.0 17.7 0.0 114.8 476.6 $5,467.4
48 6 20 19 0 6 4 16 11 130
Source: Capital IQ
Morgan Joseph LLC
Page 10 of 51
Monthly Technology Newsletter
2010
Industry Performance and Metrics: Software Software Comparable Group Relative Performance VC Investments: Software ($ in millions)
Sub-Sector Application Software Home Entertainment Software Internet Software Systems Software Total:
3/16/10-4/15/10 4/16/10-5/15/10 5/16/10-6/15/10 6/16/10-7/09/10 6/16/10-7/09/10 Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed Deal # of Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Value Transactions $292.4 $274.4 $618.8 $282.0 $981.1 52 53 107 61 147 23.5 76.7 35.1 35.9 43.3 2 17 16 9 18 49.6 76.7 57.0 42.3 1,877.9 22 17 22 19 445 40.0 178.2 1,441.7 137.9 3,556.8 18 16 36 25 63 $405.4 94 $605.9 103 $2,152.6 181 $498.1 114 $6,459.1 673
Source: Capital IQ
M&A Metrics: Software ($ in millions) Sub-Sector Application Software Home Entertainment Software Internet Software Systems Software Total:
3/16/10-4/15/10 4/16/10-5/15/10 5/16/10-6/15/10 6/16/10-7/09/10 7/09/10-9/30/10 Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions $620.9 $528.7 $488.3 50 59 $4,047.1 79 $2,400.2 58 27 0.1 28.2 57.7 22.2 198.8 1 9 6 6 7 7.9 25.8 16.1 16.0 1,404.4 10 8 11 9 59 29.5 7,978.9 1,871.3 923.6 1.7 12 20 24 18 6 $658.3 73 $8,561.6 20 $5,992.2 120 $3,362.0 91 $2,093.1 99
Source: Capital IQ
Morgan Joseph LLC
Page 11 of 51
Monthly Technology Newsletter
2010
Industry Performance and Metrics: Communications Communications Comparable Group Relative Performance VC Investments: Communications ($ in millions)
Sub-Sector Communications Processing Equipment Communications Towers Diversified Telecommunication Services Networking Equipment Radio and Television Broadcasting Equipment RFID Systems Satellite and Microwave Equipment Telephone and Telecommunications Equipment Wireless Telecommunication Services Total:
2/16/10-3/15/10 3/16/10-4/15/10 4/16/10-5/15/10 5/16/10-6/15/10 6/16/10-7/15/10 7/16/10-9/30/10 Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Disclosed # of Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions Deal Value Transactions $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $10.0 1 15.0 1 20.0 1 0.0 0 0.0 0 0.0 0 0.0 0 537.1 9 5,184.2 8 18.1 8 1,126.4 4 678.6 8 1,796.5 15 49.6 7 62.3 8 164.8 10 48.7 8 120.8 4 190.6 24 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 5.5 1 10.9 1 12.0 1 5.6 3 0.0 0 1.0 1 26.0 3 0.0 0 2.0 1 0.0 1 2.8 1 0.2 1 0.0 1 15.5 2 4.1 1 16.0 1 85.0 4 9.0 1 66.8 7 2.0 1 2,158.2 8 510.7 4 144.6 4 5.9 3 4,441.8 10 $630.1 21 $7,442.8 28 $715.2 27 $1,407.4 21 $815.4 18 $6,537.2 62
Source: Capital IQ
M&A Metrics: Communications ($ in millions)
Sub-Sector Communications Processing Equipment Communications Towers Diversified Telecommunication Services Networking Equipment Radio and Television Broadcasting Equipment RFID Systems Satellite and Microwave Equipment Telephone and Telecommunications Equipment Wireless Telecommunication Services Total:
2/16/10-3/15/10 Disclosed # of Deal Value Transactions $0.0 0 56.3 2 53.1 19 50.8 5 0.0 0 0.0 1 0.0 1 11.5 5 825.0 5 $996.6 38
3/16/10-4/15/10 Disclosed # of Deal Value Transactions $0.0 1 291.0 1 267.7 21 61.6 9 0.0 0 0.0 0 25.0 1 13.7 4 10,820.6 10 $11,479.6 47
4/16/10-5/15/10 Disclosed # of Deal Value Transactions $0.0 0 0.0 0 24,273.0 22 418.1 10 0.0 0 24.5 2 325.1 5 1,819.1 4 20.2 9 $26,879.9 52
5/16/10-6/15/10 Disclosed # of Deal Value Transactions $0.0 0 0.0 0 1,344.4 28 33.4 7 0.0 0 20.0 1 1.0 1 62.7 5 12.8 6 $1,474.3 48
6/16/10-7/15/10 Disclosed # of Deal Value Transactions $0.0 0 0.0 0 207.8 15 2,109.3 6 0.0 0 0.0 1 0.0 1 0.0 2 28.2 12 $2,345.2 37
7/15/10-9/30/10 Disclosed # of Deal Value Transactions $0.0 0 0.1 1 2,510.6 45 893.5 16 0.0 0 3.5 2 48.0 2 1,316.5 3 4,838.0 14 $9,610.2 83
Source: Capital IQ
Morgan Joseph LLC
Page 12 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Internet
Date
Target
Buyer
09/30/2010
INPUT, Inc.
Deltek, Inc (NasdaqGS:PROJ)
09/30/2010
Adenclassifieds S.A. (ENXTPA:ADEN)
09/29/2010
Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
60
13
4.5x INPUT, Inc. provides market intelligence, analysis, consulting, and events and training services in the United States.
Le Figaro SA
182
73
2.5x Adenclassifieds S.A. operates in the Internet classified advertisements market in France.
mSnap, Inc.
Marketron Broadcast Solutions, LLC
NA
NA
09/29/2010
Keithley Instruments Inc. (NYSE:KEI)
Danaher Corp. (NYSE:DHR)
326
113
09/28/2010
Hancom Inc. (KOSE:A030520) SoftForum Co. Ltd. (KOSE:A054920)
227
55
09/28/2010
Thing Labs, Inc.
AOL, Inc. (NYSE:AOL)
NA
NA
NA Thing Labs, Inc. develops Web-based software solutions.
09/28/2010
Plannr Company
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA Plannr Company develops mobile social calendar application which helps groups of people coordinate their plans by bringing together the multiple planning tools.
09/28/2010
5min LTD
AOL, Inc. (NYSE:AOL)
NA
NA
NA 5min LTD. operates a syndication platform for broadband instructional, knowledge, and lifestyle videos.
09/28/2010
TechCrunch, Inc.
AOL, Inc. (NYSE:AOL)
NA
NA
NA TechCrunch, Inc., a technology media property and statistical resource company, owns and operates a network of Websites from Europe to Japan.
09/28/2010
Barunson Interactive Co. Ltd.
Gravity Co., Ltd (NasdaqGM:GRVY)
20
NA
NA Barunson Interactive Co. Ltd. develops and publishes online games.
09/27/2010
Blade Network Technologies, Inc.
International Business Machines Corp. (NYSE:IBM)
NA
21
NA Blade Network Technologies, Inc. provides Ethernet, IP, and application switches for blade server systems and data centers.
09/26/2010
CPG Solutions, LLC
Kpit Infosystems, Inc.
13
4
09/26/2010
Visma ASA
Kohlberg Kravis Roberts & Co. (NYSE:KKR)
1,899
552
3.4x Visma ASA supplies software and services for finance, accounting, and administration.
09/25/2010
Nortel Networks Corp., MultiService Switch Business
LM Ericsson Telephone Co. (OM:ERIC B)
65
NA
09/24/2010
Hypercom Corp. (NYSE:HYC)
VeriFone Systems, Inc (NYSE:PAY)
315
421
09/23/2010
MCM Technologies Bhd (KLSE:MCMTECH)
Mezzanine Capital (M) Sdn Bhd
8
5
NA Nortel Networks Corp., Multi-Service Switch Business manufactures multiservice switches for Layer 2 VPNs, Layer 3 VPNs, circuit emulation, voice services and wireless applications. 0.7x Hypercom Corporation, together with its subsidiaries, designs and sells electronic payment and transaction solutions, and value-added services at the point of transaction primarily in the Americas, northern EMEA, southern EMEA, and the Asia-Pacific. 1.8x MCM Technologies Berhad, together with its subsidiaries, provides information technology (IT) services and solutions in Malaysia and Cambodia.
09/23/2010
TellyTopia, Inc.
NA
NA
NA TellyTopia, Inc. provides cross-platform online video systems and applications to television service providers.
09/23/2010
OpenSpirit Corporation
Concurrent Computer Corporation (NasdaqGM:CCUR) Tibco Software, Inc. (NasdaqGS:TIBX)
NA
NA
NA OpenSpirit Corporation provides integration solutions for upstream applications and data.
09/22/2010
TESSCO Technologies Inc. (NasdaqGM:TESS)
Discovery Group Holding Company, LLC
114
555
09/21/2010
TheMarkets.com LLC
Capital IQ, Inc.
NA
NA
09/20/2010
Mail.com Media Corporation, Mail.com Business
GMX GmbH
NA
NA
09/19/2010
RAE Systems Inc. (AMEX:RAE)
Battery Ventures
88
86
09/19/2010
Netezza Corporation (NYSE:NZ)
International Business Machines Corp. (NYSE:IBM)
1,593
223
09/19/2010
L-1 Identity Solutions Inc. (NYSE:ID)
Safran SA (ENXTPA:SAF)
1,584
645
09/19/2010
Nu Horizons Electronics Corp. Arrow Electronics, Inc. (NasdaqGS:NUHC) (NYSE:ARW)
176
734
NA mSnap, Inc. operates a mobile ad-network.
2.9x Keithley Instruments, Inc. designs, develops, manufactures, and markets electronic instruments and systems for use in production testing, process monitoring, product development, and research. 4.2x Hancom Inc. provides office software applications in South Korea.
3.5x CPG Solutions, LLC, an Oracle consulting company, implements and sells Oracle-based business solutions for engineering, manufacturing, and supply chain companies.
0.2x TESSCO Technologies Incorporated provides integrated product and supply chain solutions to the professionals that design, build, run, maintain, and use wireless mobile, fixed, and in-building systems. NA TheMarkets.com LLC provides a Web based research and estimates platform for institutional investors internationally. NA As of September 20, 2010, The Mail.com business of Mail.com Media Corporation was acquired by GMX GmbH.
1.0x RAE Systems Inc., together with its subsidiaries, develops and manufactures multi-sensor chemical and radiation detection monitors and networks for oil and gas, hazardous material management, industrial safety, civil defense, and environmental remediation 7.1x Netezza Corporation provides data warehouse, analytic, and monitoring appliances to enterprises, mid-market companies, and government agencies in the United States and internationally. 2.5x L-1 Identity Solutions, Inc. provides technology, products, systems and solutions, and services to protect and secure personal identities and assets in the United States and internationally. 0.2x Nu Horizons Electronics Corp., together with its subsidiaries, engages in the distribution of active and passive electronic components to original equipment manufacturers of electronic products in North America, Asia, and Europe.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 13 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Internet (Continued) Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Date
Target
Buyer
09/17/2010
Internet Brands, Inc. (NasdaqGS:INET)
Hellman & Friedman LLC
587
108
Multiple Business Description
09/16/2010
Occam Networks Inc. (NasdaqGM:OCNW)
Calix Inc. (NYSE:CALX)
122
90
09/15/2010
Digital Angel Corporation (NasdaqCM:DIGA)
PositiveID Corporation (NasdaqCM:PSID)
21
46
09/14/2010
Kale Consultants Ltd. (NSEI:KALECONSUL)
Accelya World SL
53
37
09/14/2010
Eyou.net
Xiamen 35.Com Technology Co., Ltd. (SZSE:300051)
5
NA
NA Eyou.net engages in development of email software and operates as an email service provider to government agencies and higher education institutions.
09/14/2010
Backstage Technologies Inc
GameHouse, Inc.
NA
NA
NA Backstage Technologies Inc., a software company, develops social and casual games for Facebook, MySpace, and other social networks.
09/14/2010
KSNET Inc.
Net 1 Ueps Technologies Inc. (NasdaqGS:UEPS)
236
NA
NA KSNET Inc. operates as a value-added network service provider for credit card and banking transaction processing in South Korea.
09/14/2010
Multiply, Inc.
Myriad International Holdings B.V.
NA
NA
NA Multiply, Inc., through its Web site, multiply.com, provides tools for sharing digital photo albums, videos, music, blogs, restaurant and movie reviews, and calendar events.
09/13/2010
Gameview Studios, LLC
DeNA Global, Inc.
NA
NA
NA Gameview Studios, LLC creates social gaming applications on iDevices such as iPhone and Android.
09/13/2010
MentorWave Technologies Ltd. Google Inc. (NasdaqGS:GOOG)
NA
NA
NA MentorWave Technologies Ltd. develops, manufactures, and markets 3D visualization solutions.
09/13/2010
ArcSight, Inc. (NasdaqGM:ARST)
Hewlett-Packard Company (NYSE:HPQ)
1,500
195
7.7x ArcSight, Inc. provides compliance and security management solutions that protect enterprises and government agencies.
09/09/2010
OmniBus Systems Limited
Miranda Technologies Inc. (TSX:MT)
47
23
2.0x OmniBus Systems Limited delivers master control, automation, play out, and media content management solutions to broadcast, cable, satellite, and telecom operators.
09/09/2010
Action Sports, Inc.
Metacafe, Inc.
NA
NA
NA Action Sports Inc. provides live Webcasts and video highlights of action sports events.
09/08/2010
Accela Communications, Inc.
KIT digital, Inc. (NasdaqGM:KITD)
5
NA
NA Accela Communications, Inc. provides interactive multimedia communications services in Massachusetts.
09/08/2010
Eyedentity Games, Inc.
Shanda Games Limited (NasdaqGS:GAME)
95
NA
NA Eyedentity Games, Inc. is an online game development studio.
09/08/2010
Semtek Innovative Solutions Corporation
VeriFone Systems, Inc (NYSE:PAY)
22
NA
09/08/2010
Amie Street, Inc.
Amazon.com Inc. (NasdaqGS:AMZN)
NA
NA
NA As of September 8, 2010, Semtek Innovative Solutions Corporation was acquired by VeriFone Systems, Inc. Semtek Innovative Solutions Corporation offers card reader components and interfaces. NA Amie Street, Inc., a Web based social music store, enables members to discover, download, and share music.
09/08/2010
Phyworks Ltd.
Maxim Integrated Products Inc. (NasdaqGS:MXIM)
73
NA
NA Phyworks Ltd., a fabless semiconductor company, designs and manufactures analog and mixed signal integrated circuits.
09/08/2010
Cequint Inc.
TNS Inc. (NYSE:TNS)
113
NA
NA Cequint Inc. provides technology that enables wireless carriers to offer caller ID services in North America.
09/08/2010
Venali, Inc.
j2 Global Communications, Inc. (NasdaqGS:JCOM)
17
NA
NA Venali, Inc. provides Internet fax services to various corporations.
09/07/2010
General Monitors, Inc.
Mine Safety Appliances Co. (NYSE:MSA)
280
40
7.0x General Monitors, Inc. designs, develops, and manufactures gas monitoring and flame detection instrumentation.
09/07/2010
OASYS Technology, LLC
BAE Systems plc (LSE:BA.)
55
10
5.5x OASYS Technology, LLC engages in the design and manufacture of electro-optical systems and components.
09/07/2010
Microtune Inc. (NasdaqGM:TUNE)
Zoran Corporation (NasdaqGS:ZRAN)
77
86
09/07/2010
NXP Semiconductors NV (NasdaqGS:NXPI)
Philips UK Pension Fund
7,034
4,604
0.9x Microtune, Inc. engages in the design and marketing of radio frequency (RF) integrated circuits (IC), digital signal processing ICs, and subsystem module solutions for the cable, automotive entertainment electronics, and digital television markets. 1.5x NXP Semiconductors N.V., through its subsidiary NXP B.V., provides mixed signal solutions and semiconductor components.
09/02/2010
CPM Braxis
Cap Gemini S.A. (ENXTPA:CAP)
133
51
5.5x Internet Brands, Inc., an Internet media company, owns, operates, and develops branded Web sites. 1.4x Occam Networks, Inc. develops, markets, and supports broadband access products designed to enable telecom service providers to offer voice, video, and high speed Internet . 0.5x Digital Angel Corporation develops identification and security products for consumer, commercial, and government sectors worldwide. 1.4x Kale Consultants Limited provides software solutions and outsourced services to the travel and transportation industry.
2.6x CPM Braxis engages in the provision of information technology consulting, application development and maintenance, software integration, and remote infrastructure support services to various companies worldwide.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 14 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Internet (Continued) Implied
EV / Total Revenue Revenue
Enterprise Date
Target
Buyer
09/02/2010
Arch Rock Corporation
Cisco Systems, Inc. (NasdaqGS:CSCO)
NA
NA
NA Arch Rock Corporation, a systems and software company, builds products and technology for wireless sensor networks.
09/02/2010
Polar Rose AB
Apple Inc. (NasdaqGS:AAPL)
29
NA
NA Polar Rose AB provides online services.
09/02/2010
Gamingstuff UG
Raptor Technology AG (WBAG:RAP)
NA
NA
NA Gamingstuff UG is an online retailer of computer gaming software.
09/01/2010
Peak 10
Welsh, Carlson, Anderson & Stowe
400 (est.)
NA
NA Skycom (Pty) Ltd. provides access control, time, and risk management solutions for companies.
09/01/2010
Nedstat BV
comScore, Inc. (NasdaqGS:SCOR)
37
NA
NA Nedstat BV, an application service provider company, offers Website analytics solutions.
09/01/2010
Learn.com, Inc.
Taleo Corp. (NasdaqGM:TLEO)
125
NA
NA Learn.com, Inc. provides on-demand workforce development and productivity solutions.
08/31/2010
Attenti Ltd
3M Israel Ltd.
230
NA
08/31/2010
Illumination and Detection Solutions Business
Veritas Capital
482
NA
08/31/2010
Rally Up, Inc.
AOL, Inc. (NYSE:AOL)
NA
NA
NA Dmatek Ltd., through its subsidiaries, develops remote personal electronic monitoring technologies and solutions for the supervision of the caseloads in the law enforcement and eldercare industries in the United States and internationally. NA Illumination and Detection Solutions Business represent the combined operations of PerkinElmer Canada, Inc., PerkinElmer Elcos GmbH, PerkinElmer Industrial (Shenzhen) Ltd., PerkinElmer Optoelectronics Philippines, Inc., PerkinElmer Q-Arc Ltd., PerkinElmer NA As of August 31, 2010, Rally Up, Inc. was acquired by AOL, Inc. Rally Up, Inc. provides a social network for friends.
08/31/2010
Wavesquare Inc.
AV Concept Holdings Ltd. (SEHK:595)
75
NA
NA Wavesquare Inc. is a semi conductor manufacturer engaged in the research, development, and manufacturing of the high brightness LED wafer.
08/31/2010
Accupix Inc.
AV Concept Holdings Ltd. (SEHK:595)
75
NA
NA Accupix Inc. provides mobile display solutions.
08/31/2010
WAY Systems, Inc.
VeriFone Systems, Inc (NYSE:PAY)
9
7
08/31/2010
Saehan Media Co., Ltd. (KOSE:A005070)
Cosmo Chemical Co., Ltd. (KOSE:A005420)
120
113
08/31/2010
Salary.com, Inc. (NasdaqCM:SLRY)
Kenexa Corp. (NasdaqGS:KNXA)
74
46
08/30/2010
SMARTRAC N.V. (XTRA:SM7) One Equity Partners LLC
400
184
08/30/2010
Arcot Systems, Inc.
CA Technologies (NasdaqGS:CA)
200
NA
NA Arcot Systems, Inc. offers authentication and digital signing solutions to protect and verify digital identity.
08/30/2010
SocialDeck Inc.
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA SocialDeck Inc. designs and develops social game play for iPhone, blackberry, and facebook.
08/29/2010
Ångströ Inc.
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA Ångströ Inc. provides online business news articles.
08/29/2010
Cogent Inc. (NasdaqGS:COGT)
3M Co. (NYSE:MMM)
663
117
08/27/2010
Kook Je Electric Korea Co. Ltd. Hitachi Kokusai Electric Inc. (KOSE:A053740) (TSE:6756)
68
39
08/27/2010
Sammy Networks Co. Ltd. (TSE:3745)
Sega Sammy Holdings Inc. (TSE:6460)
140
123
08/27/2010
Brilliant Semiconductor, Inc.
WT Microelectronics Co., Ltd. (TSEC:3036)
17
NA
08/26/2010
Etsy, Inc.
20
15
08/26/2010
Stratavia Corporation
Accel Management Co, Inc.; Index Ventures; Hubert Burda Media Holding GmbH & Co. Hewlett-Packard Company (NYSE:HPQ)
NA
NA
NA Stratavia Corporation provides data center automation solutions.
08/26/2010
ExtendMedia Corporation
NA
NA
NA ExtendMedia Corporation provides software and media services that enable global content providers and distributors to create, deliver, manage, and monetize online content offerings over various end user devices, including broadband, mobile, gaming, and set-
Cisco Systems, Inc. (NasdaqGS:CSCO)
Value ($mm)
Multiple Business Description
($mm)
1.2x As of August 31, 2010, WAY Systems, Inc. was acquired by VeriFone Systems, Inc. WAY Systems, Inc. designs, develops, and sells mobile wireless point-of-sale (POS) solutions for mobile merchants in the United States and internationally. 1.1x Saehan Media Co., Ltd. supplies magnetic tape worldwide.
1.6x Salary.com, Inc. provides on-demand compensation, payroll, human resource management, performance management, and competency management solutions in the human capital software-as-a-service (SaaS) market primarily in the United States. 2.2x Smartrac N.V. develops, manufactures, and supplies radio frequency identification (RFID) components principally in Europe, Asia, North America, and Latin America.
5.7x Cogent, Inc. provides automated fingerprint identification systems (AFIS) and other fingerprint biometrics solutions to governments, law enforcement agencies, and other organizations worldwide. 1.7x Kookje Electric Korea Co., Ltd. engages in the manufacture and sale of semiconductor and liquid crystal display equipment in South Korea. 1.1x Sammy NetWorks Co., Ltd. distributes music and game-related contents to mobile phones, personal computers, and home video game systems through the Internet. NA Brilliant Semiconductor distributes integrated circuits.
1.3x Etsy, Inc. operates as an online marketplace for buying and selling handmade products.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 15 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Internet (Continued) Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Date
Target
Buyer
08/25/2010
XGI Technology Inc.
Silicon Integrated Systems Corp. (TSEC:2363)
NA
NA
08/24/2010
Cellmania, Inc.
Research In Motion Limited (TSX:RIM)
NA
NA
08/24/2010
280 North, Inc.
Motorola Inc. (NYSE:MOT)
NA
NA
08/23/2010
Coinstar E-Payment Services, Sigue, Corp. Inc. and Coinstar UK Holdings Limited 3PAR, Inc. Hewlett-Packard Company (NYSE:HPQ)
42
NA
2,216
204
08/23/2010
Multiple Business Description NA XGI Technology Inc. designs, manufactures, and distributes graphics solutions for professional graphics, multimedia, embedded, IP license, legacy, 3D gaming, and mobile computing applications. NA Cellmania, Inc. provides a mobile content ecosystem platform in the United States and internationally. NA 280 North, Inc. develops Web applications.
NA Coinstar E-Payment Services, Inc. and Coinstar UK Holdings Limited represents the combined operations of Coinstar E-Payment Services, Inc. and Coinstar UK Holdings Limited in their sale to Sigue, Corp. Coinstar E-Payment Services, Inc. offers e-payment 10.9x 3PAR Inc., together with its subsidiaries, provides utility storage systems in the United States and internationally.
08/23/2010
Comsenz Inc.
Tencent Holdings Ltd. (SEHK:700)
60
NA
NA Comsenz Inc. provides bulletin board and social networking software, as well as hosting services, to Chinese websites.
08/23/2010
Comtrade SA
DCC Sercom Ltd.
32
NA
NA Comtrade SA distributes consumer electronic and audio visual products to the retail sector.
08/20/2010
Like.com
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA Like.com operates a visual search engine to buy shoes, apparel, jewelry, accessories, and home decoration products online.
08/20/2010
Hot Potato
Facebook, Inc.
NA
NA
NA As of August 20, 2010, Hot Potato was acquired by Facebook, Inc. Hot Potato offers internet based social networking services.
08/19/2010
Two Datacenter Properties
Digital Realty Trust Inc. (NYSE:DLR)
50
NA
NA Two Datacenter Properties comprises commercial real estate properties consisting of two data centers covering a total area of 56,000 rentable square feet.
08/19/2010
DataCash Group plc (AIM:DATA)
MasterCard/Europay U.K. Limited
491
57
8.6x DataCash Group plc develops and provides outsourced and multi-channel electronic payment and fraud solutions principally in Europe.
08/18/2010
Timo Technology Co., Ltd. (KOSE:A037340)
EROOM G&G Co., Ltd. (KOSE:A050640)
42
41
1.0x Timo Technology Co., Ltd. engages in the manufacture and sale of optical telecommunication equipments in South Korea.
08/18/2010
Next Code Co., Ltd. (KOSE:A035450)
BCNT Co., Ltd.
87
6
08/18/2010
McAfee, Inc. (NYSE:MFE)
Intel Corporation (NasdaqGS:INTC)
6,907
2,003
3.4x McAfee, Inc. operates as a security technology company that secures systems and networks worldwide.
08/18/2010
Stratus Technologies Bermuda Holdings, Ltd.
97
NA
NA Stratus Technologies Bermuda Holdings, Ltd. is based in Maynard, Massachusetts.
08/17/2010
Fortify Software, Inc.
Greenwich Loan Income Fund Limited (AIM:GLIF); T2 Advisers LLC Hewlett-Packard Company (NYSE:HPQ)
NA
12
NA Fortify Software, Inc. provides security products that help companies to identify and remediate software vulnerabilities.
08/17/2010
Phoenix Technologies Ltd. (NasdaqGM:PTEC)
Marlin Equity Partners, LLC
98
62
1.6x Phoenix Technologies Ltd. designs, develops, and supports core system software (CSS) for personal computers (PCs) and other computing devices.
08/16/2010
ICx Technologies, Inc. (NasdaqGM:ICXT)
FLIR Systems, Inc. (NasdaqGS:FLIR)
226
168
08/16/2010
NewRiver, Inc.
Broadridge Financial Solutions Inc. (NYSE:BR)
77
12
1.3x ICx Technologies, Inc., together with its subsidiaries, engages in the development and integration of advanced sensor technologies for homeland security, force protection, and commercial applications. 6.6x NewRiver, Inc. provides electronic compliance and intelligent document fulfillment solutions.
08/15/2010
3PAR, Inc.
Dell Inc. (NasdaqGS:DELL)
1,780
204
8.7x 3PAR Inc., together with its subsidiaries, provides utility storage systems in the United States and internationally.
08/13/2010
SouFun Holdings Ltd. (NYSE:SFUN)
Apax Partners Worldwide LLP; General Atlantic LLC
643
158
08/13/2010
Cypoint Group AB
Sigma AB (OM:SIGM B)
24
NA
4.1x SouFun Holdings Limited provides marketing, listing, technology, and information consultancy services to the real estate and home furnishing industries in the People’s Republic of China. NA Cypoint Group AB provides information technology (IT) consulting and outsourcing services in Sweden and internationally.
08/13/2010
Lycos, Inc.
Ybrant Digital Limited
36
NA
NA Lycos, Inc. operates a network of social media Web sites that foster online communities in the United States and internationally.
08/12/2010
Unica Corporation (NasdaqGM:UNCA)
International Business Machines Corp. (NYSE:IBM)
447
109
08/11/2010
Wireless-TT Info Services, Ltd. Macquarie SBI Infrastructure Management Pte. Ltd.
2,764
NA
4.1x Unica Corporation provides enterprise marketing management and on-demand marketing solutions to financial services, insurance, retail, telecommunications, and travel and hospitality industries worldwide. NA Wireless-TT Info Services, Ltd. provides telecommunication infrastructure, equipment, systems, networks, and services on a shared multi-tenancy basis for the transmission of voice and data communications in India.
15.3x Next Code Co., Ltd. manufactures semiconductor packaging services.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 16 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Internet (Continued)
Date
Target
08/10/2010
Roke Manor Research Limited Chemring Group plc (LSE:CHG)
Buyer
08/09/2010
CAS, Inc.
Wyle
08/09/2010
Jambool, Inc.
08/06/2010
Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
87
NA
NA Roke Manor Research Limited provides technology consultancy, product development, and life solutions in sensors, information systems, and communications.
235
NA
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA CAS, Inc., a department of defense weapon system analysis contractor, provides engineering, analytical, and automation services solutions for material development, combat development, test and evaluation, and operational user customers. NA Jambool, Inc. provides a virtual economy platform.
QL Electronics Co., Ltd.
Ningbo Lisi Information Technology Ltd.
117
NA
08/06/2010
Slide, Inc.
Google Inc. (NasdaqGS:GOOG)
NA
NA
08/05/2010
GameLogic, Inc.
Scientific Games Corporation (NasdaqGS:SGMS)
NA
NA
NA GameLogic, Inc. develops player loyalty and acquisition products to the regulated casino industry in the United States.
08/05/2010
Unoh Inc.
Zynga, Inc.
NA
NA
NA Unoh Inc. produces fun and entertaining products and services on the Internet.
08/05/2010
Kickfire, Inc.
Teradata Corporation (NYSE:TDC)
NA
NA
NA Kickfire, Inc. designs, develops, and markets database appliances.
08/05/2010
Stellar Satellite Communications Ltd.
QUAKE Global, Inc.
48
NA
NA Stellar Satellite Communications Ltd. designs and manufactures data communications products for two-way messaging, tracking, and monitoring applications.
08/05/2010
BV! Media Inc. (TSXV:BVM)
Rogers Media, Inc.
24
13
08/04/2010
Riverland Solutions GmbH
Reply SpA (CM:REY)
8
NA
NA Riverland Solutions GmbH provides consultancy services for Oracle customer relationship management (CRM) services in Germany.
08/04/2010
MSpoke, Inc.
LinkedIn Corporation
NA
NA
NA MSpoke, Inc. provides personalization solutions.
08/04/2010
Instantiations, Inc., Java Business
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA As of August 4, 2010, Java business of Instantiations, Inc. was acquired by Google Inc. Java business of Instantiations, Inc. comprises Java and Ajax software solutions.
08/03/2010
Gaming Technology Ltd.
Algosys Limited
5
NA
NA Gaming Technology Ltd. develops technology for deployment in land based casinos and algorithms for better odds concept betting.
08/03/2010
Investopedia ULC
ValueClick, Inc. (NasdaqGS:VCLK)
42
NA
NA Investopedia ULC operates an online portal for investor education.
08/03/2010
SoftLayer Technologies, Inc.
GI Partners
475
6
08/03/2010
Rovion, Inc.
DigitalPost Interactive, Inc. (OTCBB:DGLP)
4
NA
08/03/2010
Frogster Interactive Pictures AG (XTRA:FRG)
Gameforge AG
86
21
08/03/2010
Solarfun Power Holdings Co. Ltd. (NasdaqGS:SOLF)
Hanwha Chemical Corp. (KOSE:A009830)
NA
806
08/02/2010
Walla! Communication Ltd. (TASE:WALA)
Bezeq International Ltd.
76
40
08/02/2010
E-mail Vision (ENXTPA:ALEMV)
Francisco Partners Management LLC
NA
42
NA E-mail Vision operates as an email service provider worldwide.
08/02/2010
SiRViS IT Holdings Ltd
Esteem Systems Ltd.
16
NA
08/02/2010
Whitney Automotive Group, Inc.
U.S. Auto Parts Network, Inc. (NasdaqGS:PRTS)
28
NA
NA SiRViS IT Holdings Ltd., together with its subsidiaries, provides computer and IT support services to corporate businesses and small to medium enterprises in the United Kingdom and Western Europe. NA Whitney Automotive Group, Inc. is a holding company.
07/31/2010
Delve Networks, Inc.
Limelight Networks, Inc. (NasdaqGM:LLNW)
NA
NA
07/31/2010
ZEturf Limited
IDInvest Partners
163
NA
NA Ningbo QL Electronics Co., Ltd. engages in the research and development of single crystal silicon ingot, polished wafer, epiwafer, and semiconductor material in China, America, Europe, Singapore, Malaysia, Japan, Korea, Taiwan, and other countries. NA Slide, Inc., a social entertainment company, offers online application for social networking websites.
1.9x BV! Media Inc., an Internet media company, provides Internet advertising solutions to advertisers and publishers in Canada.
77.9x SoftLayer Technologies, Inc. provides Web hosting and on-demand services.
NA Rovion, Inc. creates, delivers, and tracks interactive Websites.
4.1x Frogster Interactive Pictures AG publishes online computer games.
NA Solarfun Power Holdings Co., Ltd., an investment holding company, engages in the development, manufacture, and sale of photovoltaic (PV) products. 1.9x Walla! Communication Ltd., together with its subsidiaries, provides various online services in Israel.
NA Delve Networks, Inc. provides an online video publishing and search platform for the content providers to manage, publish, measure, advertise, and monetize videos on the Web. NA ZEturf Limited operates an online information and betting Website on horse racing.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 17 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Internet (Continued) Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
Date
Target
Buyer
07/30/2010
PacketVideo Corporation
NTT DOCOMO, Inc. (TSE:9437)
172
NA
NA PacketVideo Corporation provides software products that form the foundation for audience-interactive media experiences.
07/30/2010
Allyes Information Technology Silver Lake Partners Co., Ltd.
200
NA
NA Allyes Information Technology Co., Ltd., an online media agency, provides interactive marketing solutions.
07/30/2010
E-mail Vision (ENXTPA:ALEMV)
Francisco Partners Management LLC
101
42
2.4x E-mail Vision operates as an email service provider worldwide.
07/30/2010
Sparsh BPO Services Ltd. (BSE:532833)
Intelenet Global Services Pvt. Ltd.
121
54
2.2x Sparsh BPO Services Limited engages in the provision of call center and transaction processing services.
07/29/2010
Crystal Systems, Inc.
GT Solar International, Inc. (NasdaqGS:SOLR)
78
15
5.4x Crystal Systems, Inc. manufactures and supplies crystals for industrial, semiconductor, defense, and medical applications.
07/29/2010
Storwize, Inc.
International Business Machines Corp. (NYSE:IBM)
140
NA
07/28/2010
Day Software Holding AG (SWX:DAYN)
Adobe Systems Inc. (NasdaqGS:ADBE)
182
35
07/27/2010
SMobile Systems, Inc.
Juniper Networks, Inc. (NYSE:JNPR)
70
NA
NA SMobile Systems, Inc. develops and delivers mobile security software solutions for smartphones and other mobile devices in the United States and internationally.
07/27/2010
Playdom, Inc.
Walt Disney Co. (NYSE:DIS)
763
NA
NA Playdom, Inc. operates as a social game developing company.
07/26/2010
Insurance.com Insurance Agency, LLC
QuinStreet, Inc. (NasdaqGS:QNST)
37
NA
07/23/2010
Meetroduction, LLC
CrowdGather, Inc. (OTCBB:CRWG)
1
NA
NA As of July 26, 2010, Insurance.com Insurance Agency, LLC was acquired by QuinStreet, Inc. Insurance.com Insurance Agency, LLC operates as an online auto insurance agency in the United States. NA Meetroduction, LLC has developed proximity based instant messenger platform called Meetro.
07/23/2010
Overtis Solutions Limited
Digital Barriers plc (AIM:DGB)
5
NA
NA Overtis Solutions Limited develops physical and electronic security solutions.
07/22/2010
iTradeNetwork, Inc.
Roper Industries Inc. (NYSE:ROP)
525
NA
NA iTradeNetwork, Inc. provides Web-based software that automates the supply chain for the retail and foodservice industries.
07/19/2010
Ocarina Networks, Inc.
Dell Inc. (NasdaqGS:DELL)
NA
NA
NA Ocarina Networks, Inc. provides online storage optimization solutions.
07/16/2010
Metaweb Technologies, Inc.
Google Inc. (NasdaqGS:GOOG)
NA
NA
NA Metaweb Technologies, Inc. designs and builds Web infrastructure technology for Web application developers and publishers.
07/15/2010
Layerboom Systems Inc
Joyent, Inc.
NA
NA
NA As of July 15, 2010, Layerboom Systems Inc was acquired by Joyent, Inc. Layerboom Systems Inc offers virtual server management appliances.
07/15/2010
Threadbox, Inc.
MySpace, Inc.
NA
NA
07/14/2010
Sanyo Semiconductor Co., Ltd. ON Semiconductor Corp. (NasdaqGS:ONNN)
681
NA
NA As of July 15, 2010, Threadbox, Inc. was acquired by MySpace, Inc. Threadbox, Inc. operates an online workspace to host conversations, store and share files, manage to-do lists, launch on-the-fly conference calls, and gather group opinions. NA Sanyo Semiconductor Co., Ltd. manufactures and provides semiconductor products.
07/12/2010
ADC Telecommunications Inc. Tyco Electronics, Ltd. (NasdaqGS:ADCT) (NYSE:TEL)
1,278
1,112
07/12/2010
NaviSite Inc. (NasdaqCM:NAVI)
Atlantic Investors, LLC
199
151
07/11/2010
Hewitt Associates Inc. (NYSE:HEW)
Aon Corporation (NYSE:AON)
4,838
3,092
07/11/2010
Coral-Tell Internet Services Ltd.
Walla! Communication Ltd. (TASE:WALA)
40
NA
NA Storwize, Inc. provides enterprise-class storage capacity optimization solutions.
5.2x Day Software Holding AG, together with its subsidiaries, provides content, portal, and digital asset management software in Europe and the Americas.
1.1x ADC Telecommunications, Inc. provides broadband communications network infrastructure products and related services worldwide. 1.3x NaviSite, Inc. provides information technology hosting, outsourcing, and professional services for mid-market organizations. 1.6x Hewitt Associates, Inc., together with its subsidiaries, provides human resources benefits, outsourcing, and consulting services primarily in the United States and the United Kingdom. NA Coral-Tell Internet Services Ltd. owns and operates web portals.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 18 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Software Implied
Total
EV /
Enterprise
Revenue
Revenue
Date
Target
Buyer
Value ($mm)
($mm)
9/30/2010
Adenclassifieds S.A. (ENXTPA:ADEN)
Le Figaro SA
$181.6
$80.7
2.3x
Adenclassifieds S.A. operates in the Internet classified advertisements market in France. It primarily focuses on recruitment, training, and property markets.
9/28/2010
Hancom Inc. (KOSE:A030520)
SoftForum Co. Ltd. (KOSE:A054920)
$227.3
$55.7
4.1x
Hancom Inc. provides office software applications in South Korea.
9/28/2010
Barunson Interactive Co. Ltd.
Gravity Co., Ltd (NasdaqGM:GRVY)
$20.1
$2.9
7.0x
Barunson Interactive Co. Ltd. develops and publishes online games. The company was founded in 2003 and is based in Seoul, South Korea.
9/28/2010
Codecode Technologies Ltd.
eWave Ltd.
$1.4
NA
NA
Codecode Technologies Ltd. offers integrated software and hardware solutions in the barcode and print sectors based on dedicated printer terminals.
9/27/2010
E-Bill (China) Holding Ltd.
Undisclosed
$40.0
NA
NA
E-Bill (China) Holding Ltd. provides electronic payment services. The company is based in Shenzhen, China.
9/22/2010
Lombard Risk Management Plc (AIM:LRM)
Undisclosed
$12.4
$14.0
0.9x
Lombard Risk Management plc engages in the provision of trading, valuation, and risk management systems, and regulatory, anti money laundering; and compliance systems to the financial markets.
9/22/2010
Leboncoin.fr
Schibsted ASA (OB:SCH)
NA
23.6x
NA
Leboncoin.fr operates as an online classifieds portal.
9/19/2010
Locaweb Serviços de Internet S.A.
Silver Lake Partners
NA
$76.3
NA
Locaweb Ltda. operates as an Internet data center and Web hosting company. The company is based in Sao Paulo, Brazil.
9/18/2010
Injoy Information Technology Co. Limited
Moli Group Ltd.
$23.8
NA
NA
Injoy Information Technology Co., Limited is engaged in mobile digital entertainment business in China.
9/17/2010
Export Credit Exchange (Pty) Ltd.
IQUAD Group Limited (JSE:IQG)
$1.3
NA
NA
Export Credit Exchange (Pty) Ltd., an online credit exchange, trades import rebate credit certificates in South Africa.
9/17/2010
SUMOTEXT, Inc. (OTCBB:SMXI.D)
Undisclosed
$0.9
$1.1
0.9x
SUMOTEXT, Inc., a short code application provider, enables businesses and organizations to launch product offers, promotions, and time-sensitive alerts into the mobile channel through text messaging.
9/15/2010
OpenPages, Inc.
International Business Machines Corp. (NYSE: IBM)
NA
NA
NA
OpenPages, Inc. provides enterprise governance, risk, and compliance management solutions. The company also offers advisory, implementation, training, hosting, customer support, and optimization services.
9/9/2010
Danal, Inc.
Danal Co. Ltd. (KOSE:A064260)
$22.0
NA
NA
Danal, Inc. provides online payment solutions. It offers BilltoMobile, an online payment service that enables consumers to charge online purchases to their mobile phone bills.
9/1/2010
Systematic Investment Group AB
360 Holding AB (OM:360H)
$2.1
NA
NA
Systematic Investment Group AB develops a trading system for buying and selling shortterm odds on various marketplaces. The company was founded in 2006 and is based in Kista, Sweden.
9/1/2010
Canal Inc.
Qunelb Inc.
$1.2
$9.9
0.1x
Canal Inc. develops mobile media. The company was founded in 2003 and is based in Shibuya, Japan.
9/1/2010
ATIVI - Telecomnet, Inc.
E-Pay Holdings Limited
NA
$44.0
NA
ATIVI - Telecomnet, Inc. provides payment processing services for prepaid and cash payment transactions in Brazil.
8/31/2010
bigmouthmedia GmbH
LBI International AB (ENXTAM:LBI)
$25.0
NA
NA
bigmouthmedia GmbH operates as an Internet marketing agency.
8/31/2010
FarEastern New Century Information Technology (Beijing) Limited
FarEastern New Diligent Company
$10.9
NA
NA
FarEastern New Century Information Technology (Beijing) Limited operates as a software developer. The company is based in China.
8/31/2010
B-future Information Tech Inc.
Undisclosed
$1.0
NA
NA
Beijing bFuture Inc. provides software as a service and business-to-business supply chain management platform between suppliers and retailers and a business-to-consumer web-based store for retailers.
8/31/2010
Liligo.com
Voyages-sncf.com SAS
NA
$127.1
NA
Liligo.com is a travel search that offers online travel related information.
8/27/2010
Sammy Networks Co. Ltd. (TSE:3745)
Sega Sammy Holdings Inc. (TSE:6460)
$140.4
$127.7
1.1x
Sammy NetWorks Co., Ltd. distributes music and game-related contents to mobile phones, personal computers, and home video game systems through the Internet.
8/26/2010
Etsy, Inc.
$20.0
$20.0
1.0x
Etsy, Inc. operates as an online marketplace for buying and selling handmade products.
8/18/2010
Stratus Technologies Bermuda Holdings, Ltd.
Accel Management Co, Inc.; Index Ventures; Hubert Burda Media H ldi G Loan bH & Income C Greenwich
$97.1
NA
NA
Stratus Technologies Bermuda Holdings, Ltd. is based in Maynard, Massachusetts. Stratus Technologies Bermuda Ltd. operates as a subsidiary of Stratus Technologies International Sarl.
Fund Limited (AIM:GLIF); T2 Advisers LLC
Multiple Business Description
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 19 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Software (Continued) Implied
Total
EV /
Enterprise
Revenue
Revenue
Date
Target
Buyer
Value ($mm)
($mm)
8/18/2010
McAfee, Inc. (NYSE:MFE)
Intel Corporation (NasdaqGS:INTC)
$6,906.9
$2,002.9
Multiple Business Description 3.4x
McAfee, Inc. operates as a security technology company that secures systems and networks worldwide.
8/17/2010
Videovalis GmbH
ad pepper media International N.V. (XTRA:APM)
$6.5
NA
NA
Videovalis GmbH operates as a video content provider offering premium video content, and content syndication solutions to customers and publishers. The company is based in Cologne, Germany.
8/13/2010
SouFun Holdings Ltd. (NYSE:SFUN)
Apax Partners Worldwide LLP; General Atlantic LLC
$642.7
$158.3
4.1x
SouFun Holdings Limited provides marketing, listing, technology, and information consultancy services to the real estate and home furnishing industries in the People’s Republic of China.
8/13/2010
Fukui Computer Inc. (TSE:9790)
Daitec Co., Ltd.
$38.7
$76.4
0.5x
Fukui Computer Inc. is a computer aided design (CAD) software developer. The company was founded in 1979 and is based in Fukui, Japan.
8/6/2010
RBS WorldPay, Inc.
Advent International Corporation; Bain Capital, LLC
$2,324.7
NA
NA
RBS WorldPay, Inc. provides single card and non-card electronic payment processing services to businesses.
8/4/2010
Finet Group Ltd (SEHK:8317)
MAXX Capital International Limited
$13.3
$3.8
3.5x
Finet Group Limited, an investment holding company, engages in the development, production, and provision of financial information services and technology solutions to corporate clients and retail investors.
8/3/2010
Frogster Interactive Pictures AG (XTRA:FRG)
Gameforge AG
$92.5
$18.9
4.9x
Frogster Interactive Pictures AG publishes online computer games.
8/3/2010
Frogster Interactive Pictures AG (XTRA:FRG)
Gameforge AG
$86.2
$19.5
4.4x
Frogster Interactive Pictures AG publishes online computer games.
8/2/2010
Walla! Communication Ltd. Bezeq International Ltd. (TASE:WALA)
$76.3
$41.0
1.9x
Walla! Communication Ltd., together with its subsidiaries, provides various online services in Israel.
8/2/2010
Ferro Alloys Corp. Ltd. (BSE:500141)
Undisclosed
NA
$87.0
NA
Ferro Alloys Corporation Limited engages in the production and export of high carbon ferro chrome/charge chrome used in manufacture of steel and stainless steel.
8/2/2010
E-mail Vision (ENXTPA:ALEMV)
Francisco Partners Management LLC
NA
$38.7
NA
E-mail Vision operates as an email service provider worldwide.
7/31/2010
ZEturf Limited
IDInvest Partners
$163.0
NA
NA
ZEturf Limited operates an online information and betting Website on horse racing. The company was founded in 2001 and is based in Ta' Xbiex, Malta.
7/30/2010
Kayak.com
Undisclosed
$18.9
NA
NA
Kayak.com, an Internet media company, operates travel search engines.
7/30/2010
NetWork And System Fabricative Agency Inc.
Densan System Co.,Ltd. (TSE:3630)
$0.2
$0.1
2.3x
NetWork And System Fabricative Agency Inc. develops and markets packaged software and computer system. The company is based in Minato-ku, Japan.
7/27/2010
EquityStation, Inc.
Osage, LLC
$3.2
NA
NA
EquityStation, Inc. (ESTA) is a security brokerage firm that provides online trading services.
7/26/2010
anydayanyway.com
Tiger Global Management LLC
$25.0
$6.0
4.2x
anydayanyway.com through its web portal operates as a ticket broker.
7/26/2010
ubitronix system solutions gmbh
Kontron AG (XTRA:KBC)
$12.6
NA
NA
ubitronix system solutions gmbh provides custom software and hardware solutions for electricity, gas, water, and heat metering.
7/22/2010
Xero Limited. (NZSE:XRO) Undisclosed
$77.4
$2.5
31.5x
7/22/2010
Ubisoft Entertainment SA (ENXTPA:UBI)
Harbinger Capital Partners LLC
NA
$1,125.5
NA
Ubisoft Entertainment S.A. engages in developing, publishing, and distributing interactive entertainment products worldwide.
7/19/2010
Corero plc (AIM:CORO)
Rivington Street Holdings PLC
$6.7
$7.5
0.9x
Corero plc designs, develops, and delivers software products to the financial institutions, and business and education markets in Europe, North America, and the Asia Pacific.
7/16/2010
IM-Sense Limited
Undisclosed
$0.5
NA
NA
IM-Sense Limited engages in development of image enhancement technologies.
7/9/2010
Silverlake Axis Ltd. (Catalist:5CP)
Hainan Airlines Group Company Limited
NA
$54.9
NA
Silverlake Axis Ltd provides integrated banking solutions catering to conventional, Islamic, and microbanking that support front office, middle office, and back office operations.
7/8/2010
BeCognitive Systems Limited
Technis Ventures Ltd.
$0.4
NA
NA
BeCognitive Systems Limited, trading as VoiceScrum, develops telephony and conferencing platforms for home workers, professionals, small and medium enterprises, and corporates.
Xero Limited provides an online accounting solution for the small and medium sized enterprises in New Zealand and the United Kingdom.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 20 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Communications
Date
Target
Buyer
9/29/2010
Radiocomp ApS
Welltop Holdings
9/28/2010
ZAO Peterstar
Open joint stock company MegaFon
9/27/2010
XLN Telecom Ltd.
ECI Partners LLP
9/27/2010
Blade Network Technologies, Inc.
International Business Machines Corp.
9/24/2010
Nortel Networks Corp., Multi-LM Ericsson Telephone Co. Service Switch Business
9/23/2010
IPeX Telecom S.A.
9/23/2010
Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
NA
NA
NA
Manufactures radio frequency systems and components for mobile and wireless infrastructure networks.
$215.0
NA
NA
Operates as a telecommunications company in the Russian Federation.
$61.5
$85.5
0.7x
NA
NA
NA
Provides Ethernet, IP, and application switches for blade server systems and data centers.
$65.0
NA
NA
Manufactures multiservice switches for Layer 2 VPNs, Layer 3 VPNs, circuit emulation, voice services and wireless applications.
Acropolis Telecom SA
NA
$0.5
NA
Operates as a telecommunication company and internet service provider.
ETS Communications Limited
Undisclosed
NA
NA
NA
Provides B2B telecommunications services.
9/22/2010
South Telecom LLC
NA
NA
NA
Operates in the telecommunication sector.
9/22/2010
NA
NA
NA
Provides long distance and international telephone services and communication services for data transmission services.
9/21/2010
CJSC Synterra-Far East And CJSC Synterra-Volga And CJSC SynterraVerrillon Inc.
Public Joint Stock Company Southern Telecommunications Komet Telecoms Company
NA
NA
NA
Manufactures specialty optical fibers and components for oil and gas, military, avionics, industrial, and communications markets.
9/20/2010
ELXYS Innovations S.A.
Ceragon Networks Ltd.
$3.5
NA
NA
Designs radio-frequency integrated circuits and semiconductor intellectual property products for wireless applications.
9/20/2010
CyberTel USA Inc.
X-Change Corporation (The)
$0.8
NA
NA
Operates as a VoIP billing and call routing solutions company.
9/20/2010
Touchbase Singapore Pte Ltd.
Logicalis Group Limited
NA
$8.0
NA
Provides unified communications (UC) solutions focusing on the areas of UC and customer contact centers for enterprise and multinational corporations.
8/30/2010
Terra Telecom, LLC
EGPI Firecreek Inc.
$6.0
$13.2
0.5x
9/19/2010
Stream
NA
NA
NA
Provides Bitstream and traditional ADSL, leased line, MPLS virtual private networks (VPNs), and co-location services.
9/19/2010
Broadway Networks, Inc.
MetroBeam Wireless Telecommunications Co LLC Finisar Corp.
NA
NA
NA
Develops optical subsystems to the equipment vendors for broadband access applications.
9/17/2010
Sunrise Communications AG
CVC Capital Partners Ltd.
$3,268.9
NA
NA
Provides mobile telephony, fixed network, and Internet services for households and business clients in Switzerland.
9/17/2010
Usee, Inc.
Z3 Enterprises Inc
$105.0
NA
NA
Provides real-time face-to-face video communications solutions and content to consumers, businesses, and institutions.
9/17/2010
ZPSYS Co., Ltd.
SNH Inc
$8.4
$5.2
1.6x
9/17/2010
3Di Technologies, LLC
L-3 Communications Holdings Inc.
NA
NA
NA
9/16/2010
Occam Networks Inc.
Calix Inc.
$121.5
$89.7
1.4x
9/16/2010
Aloqa GmbH
Motorola SpinCo Holdings Corporation
NA
NA
NA
9/16/2010
Pervasic Ltd.
Undisclosed
NA
NA
NA
Provides mobile data solutions for field service businesses in the United Kingdom.
9/15/2010
Simpel BV
T-Mobile Netherlands B.V.
NA
NA
NA
Offers mobile services.
9/15/2010
Megalan Network Ltd.
MobilTel AD
NA
NA
NA
Provides broadband Internet and television access services.
AFL Telecommunications LLC
Provides telecommunication services to small businesses in the United Kingdom.
Offers communication technology solutions in North America.
Provides switching module, next generation gigabit, and ethernet solutions.
Provides satellite telecommunication solutions to government/military and commercial customers.I24 Develops broadband access products designed to enable telecom service providers to offer voice, video, and high speed Internet or triple play services over copper and fiber optic networks. Provides a mobile service that notifies interesting places, events, and Facebook friends in real time.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 21 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Communications (Continued) Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
Date
Target
Buyer
9/15/2010
Saga Group Ltd., Telephone Business
The Phone Co-op Limited
NA
NA
NA
Offers telephone services.
9/15/2010
Mobeel Group SAS
Keyyo
NA
NA
NA
Mobile phone network operator.
9/12/2010
Cavalier Telephone, LLC
PAETEC Holding Corp.
$460.0
NA
NA
A competitive local exchange carrier.
9/9/2010
Tinet SpA
Neutral Tandem, Inc.
$88.2
$53.4
1.7x
9/8/2010
Virtek Communications AS KVH Industries Inc.
$6.5
NA
NA
Provides data communication solutions for the maritime, land, and aviation industries.
9/8/2010
GTS Slovakia, inc.
Dial Telecom, a.s.
NA
NA
NA
Provides voice, Internet, data, and hosting telecommunications services for businesses and households in the Slovak Republic.
9/7/2010
Interlinked Media Inc.
Fulcrum Mobile, LLC
NA
NA
NA
Provides mobile marketing services.
9/4/2010
VODone LIMITED
$16.4
NA
NA
Engages in developing, designing, and providing maintenance services of mobile communication products.
9/2/2010
70% in Bright Way Technology and 70% in Shenzhen Tastech MainStream LLC
Datagroup, Close Joint Stock Company
NA
NA
NA
Offers internet and data transmission services through internet protocol and multi protocol label switching network.
9/2/2010
TX-11 Acquisition, LLC
Cellular One, LLC
NA
NA
NA
Operates as a wireless carrier in Texas.
8/29/2010
Infineon Technologies AG, Wireless Solutions Business Fibertech Networks, LLC
Intel Corporation
$1,400.0
$1,314.3
1.1x
$500.0
NA
NA
Engages in building and operating fiber optic networks in mid-size cities in the eastern and central regions of the United States.
8/26/2010
8/26/2010
Court Square Capital Partners
Provides internet protocol and ethernet transit services.
Offer cellular platforms for global phone makers.
Nortel’s North America, Caribbean and Latin America and Asia Multi Zero9 S.p.A
Marlin Equity Partners, LLC; Samnite Technologies Inc. Neomobile SpA
NA
NA
NA
Comprises substantially all assets of the Asia Multi Service Switch business.
NA
NA
NA
A wireless media company, engages in the creation, management, promotion, and distribution of interactive mobile content and services to mobile phone users.
8/24/2010
Tech Valley Communications, Inc.
Riverside Partners LLC
NA
NA
NA
A competitive local exchange carrier, provides telecommunication services in the Upstate New York’s Tech Valley.
8/23/2010
Ibsen Photonics
FOSS A/S
NA
NA
NA
Develops, produces and markets high technology optical components for the business to business market.
8/19/2010
TimeMill Oy
TDC Oy Finland
NA
$1.3
NA
Provides video conferencing services.
8/18/2010
Sparkplug, Inc.
Airband Communications, Inc.
NA
NA
NA
Provides fixed wireless business broadband services for businesses, government, hospitals, universities, schools, and carriers.
8/17/2010
World Wide Mobile Communications AS
Arendals Fossekompani ASA
$21.8
NA
NA
Offers communication services.
8/16/2010
Q-Comm Corporation
Windstream Corporation
$778.4
NA
NA
Provides telecommunications services to residential and business customers in the Midwest.
8/16/2010
Shanghai Ruiji Ningbo Bird Co., Ltd Communications Technology Co., Ltd. Teleport St. Petersburg Ltd. Undisclosed
$0.5
NA
NA
Operates as a value-added telecom business service provider focusing on short message business.
NA
NA
NA
Provides telecommunication services.
$54.0
NA
NA
Operates broadband telecommunication in China.
$105.0
NA
NA
Comprises radio space is in the 1900 band located in Austin, Texas; Seattle, Washington; Cincinnati, Ohio; and Virginia Beach, Virginia.
$62.0
NA
NA
Telecom services, 3G mobile and integrated wireline services.
8/25/2010
8/13/2010
7/26/2010
Great Wall Broadband Network Service Co., Ltd.
CITIC Networks Co., Ltd.
8/10/2010
10 megahertz of wireless spectrum
Sprint Nextel Corp.
8/10/2010
Telecom Seychelles Limited Bharti Airtel Ltd.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 22 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Communications (Continued)
Date
Target
Buyer
8/9/2010
Midcontinent Media, Inc.
Undisclosed
8/9/2010
Telefónica del Perú, S.A.A., ATC Sitios del Peru S.R.L. 468 Wireless Communication Tower Sites Stellar Satellite QUAKE Global, Inc. Communications Ltd.
8/5/2010
Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
NA
NA
NA
Provides telephone, broadband Internet, and cable television services.
NA
NA
NA
Comprises 468 wireless communication tower sites.
$48.0
NA
NA
Designs and manufactures data communications products for two-way messaging, tracking, and monitoring applications.
8/4/2010
jellico.com, Inc.
Sitestar Corp.
$0.0
NA
NA
Offers Internet service solutions for individuals and businesses in the United States.
8/4/2010
JSC Chermetresurs
ZAO Peterstar
NA
NA
NA
Provider of telecommunication services.
8/2/2010
Southwest Wireless Net, Inc., Wireless Broadband Assets In Southwest Pathworks Corporation
KeyOn Communications Holdings Inc.
$0.3
NA
NA
Offers wireless broadband services in Southwest Minnesota.
NA
NA
NA
Provides high-definition television, Internet access, and telephone services via fiber optic network.
8/2/2010
7/31/2010
Lexicon United Inc.
Gujarat Narmada Valley Fertilizers Company Limited, V-SAT/ISP Foratek Kommunikeishn Zao
ING Satcom Ltd.
$1.3
NA
NA
Comprises the broadband telecommunications operation.
VimpelCom Ltd.
$46.2
NA
NA
Owns and operates approximately 1,200 kilometers of fiber-optic networks for the broad band internet sector.
7/30/2010
Link BG
Blizoo
NA
NA
NA
Provides internet telecommunication services.
7/30/2010
Zenko Technologies, Inc.
Go!Foton Corporation
NA
NA
NA
Develops and markets optical devices and Integrated Circuit (IC) designs to the information technology and communication sectors.
3/10/2010
Sinotop Group Ltd.
China Broadband, Ltd.
$15.9
NA
NA
Provides cable and wireless broadband services.
7/29/2010
Storwize, Inc.
International Business Machines Corp.
$140.0
NA
NA
Provides enterprise-class storage capacity optimization solutions.
7/29/2010
Fixed & Mobile Pte Ltd
Ingenico Ventures SAS
NA
NA
NA
Operates a mobile airtime network.
7/28/2010
Mediamesh Holdings Pty Limited
$1.5
NA
NA
Prepaid wireless telecommunication service.
Undisclosed
NA
NA
NA
Comprises post paid and prepaid retail mobile business in Australia.
7/27/2010
ComTel Corporation Limited, Prepaid Retail Mobile Business ComTel Corporation Limited, Post Paid Retail Mobile Business Fiber SenSys, LLC
Optex Co. Ltd.
NA
NA
NA
Provides perimeter security and data security solutions.
7/21/2010
RAA Services
Omnicity, Corp.
$0.1
NA
NA
Operates 10 communication towers used in the audio video wireless transmission.
7/26/2010
SinglePipe Communications, Inc.
Integrated BroadBand Services, LLC
NA
NA
NA
Provides residential and business class voice over Internet protocol phone services.
7/26/2010
Inetera
NetByNet Holding
NA
$3.6
NA
Manages and provides broadband services.
7/26/2010
Alban Telecom Ltd.
j2 Global Communications, Inc.
NA
NA
NA
Provides telecommunications services.
7/25/2010
2Wire, Inc.
Pace plc
$420.0
$667.4
0.6x
7/22/2010
SpeechCard LLC
Musicians Exchange
NA
NA
NA
7/20/2010
Mintera Corporation
Oclaro, Inc.
$32.0
$40.1
0.8x
7/20/2010
APT Licensing Ltd.
CSR plc
$7.3
NA
NA
7/30/2010
7/28/2010
Provides broadband service delivery platforms.
Provides unified communication services.
Develops and markets high speed optical transmission systems.
Engages in the development of audio compression algorithms and broadcast audio hardware for broadcast, professional audio, and consumer electronics industries.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 23 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Communications (Continued) Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
Date
Target
Buyer
7/19/2010
Mountaineer Telecommunications LLC
NTELOS Inc.
$170.0
$76.0
2.2x
7/19/2010
Multinet Pakistan (Private) Limited
Undisclosed
$28.0
NA
NA
Provides communications solutions to carriers and enterprises in Pakistan.
7/19/2010
Thales Alenia Space Antwerp NV
OHB Technology AG
NA
$13.0
NA
Manufactures electrical power and telecommunications equipment for satellites.
7/17/2010
Intelligent Networks Limited Chess Telecom Limited
NA
$1.5
NA
Operates as a telecommunication service provider.
7/16/2010
Motorola Inc., Certain Wireless Network Infrastructure Assets BBned N.V.
Nokia Siemens Networks Oy
$1,200.0
NA
NA
Comprises certain wireless network infrastructure assets that provide wireless infrastructure services.
$64.7
$110.3
0.6x
7/16/2010
SaskTel, Load Trak Fleet Tracking Business
BSM Wireless Inc.
NA
NA
NA
Comprises LoadTrak that provides fleet tracking services.
7/16/2010
VocalTec Communications Ymax Communications Ltd., Prior to Reverse Corp. (nka:VocalTec Merger With Ymax Communications Ltd.)
NA
$7.1
NA
Provides carrier-class voice-over Internet protocol (VoIP) solutions for communication service providers worldwide.
7/16/2010
Tele2 AB
Integrated communications provider.
Provides digital subscriber line (DSL) communication services for the business market in the Netherlands.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 24 of 51
Monthly Technology Newsletter
2010
MERGERS & ACQUISITIONS Select Clean Technology
Date
Target
Buyer
9/21/2010
Recurrent Energy, Inc.
Sharp Corporation (TSE:6753)
9/16/2010
Solar Plant in Seville
White Owl Capital AG
9/15/2010
Green Mountain Energy Company
NRG Energy, Inc. (NYSE:NRG)
8/31/2010
Mascoma Canada
8/31/2010
Implied
Total
EV /
Enterprise
Revenue
Revenue
Value ($mm)
($mm)
Multiple Business Description
$305.0
NA
NA
Recurrent Energy, Inc., an independent power producer, develops distributed solar power projects in North America and Europe.
$32.7
NA
NA
Solar Plant in Seville comprises solar energy plant.
$350.0
NA
NA
Green Mountain Energy Company offers alternative energy generation and distribution services.
Mascoma Corporation
$51.0
NA
NA
Mascoma Canada engages in the design, construction, and optimization of biomass conversion process technologies, equipment, and facilities in Canada and internationally.
Meier Solar Solutions GmbH
NPC Europe GmbH
$11.2
NA
NA
Meier Solar Solutions GmbH designs, develops, and manufactures laminators and equipment for the photovoltaic industry.
8/30/2010
EHS Tech Ltd.
Acro Group Ltd.
$3.9
NA
NA
EHS Tech Ltd. represents and manufactures energy saving products for Israel, the United States, and European markets.
8/23/2010
Sunfield Technologies North America, Inc.
Xcelplus Global Holdings, Inc. (OTCPK:XPGH)
NA
$7.7
NA
Sunfield Technologies North America, Inc. distributes Sunfield solar thermal collectors.
8/23/2010
Solar Farm in Majorca
White Owl Capital AG
$19.0
NA
NA
Solar Farm in Majorca comprises a solar plant with a surface area of 12 hectares and capacity of 3,425 megawatts-peak. The plant is located in Majorca, Spain.
8/18/2010
SonnenTech
FutureWorld Energy, Inc. (OTCPK:FWDG)
$7.5
NA
NA
SonnenTech provides engineering, design, and implementation services for solar thermal, geothermal and cogeneration technologies.
8/16/2010
Shanghai JMS Electronic Materials Co., Ltd.
Jiangsu Huasheng Tianlong Mechanical Co., Ltd. (SZSE:300029)
$40.8
$49.3
0.8x
Shanghai JMS Electronic Materials Co., Ltd. engages in the research, development, and production of graphite hotzones for semiconductor and solar energy industries.
8/6/2010
Coser Srl, Solar Plant in Campania
Saniso S.r.l.
$5.7
NA
NA
As of August 6, 2010, Solar Plant in Campania of Coser Srl was acquired by Saniso S.r.l. Solar Plant in Campania of Coser Srl comprises a 20.4-MW photovoltaic plant in Campania.
7/19/2010
Zhuhai Oil Energy Science Biomagnetics Diagnostics and Technology Ltd. Corp. (OTCPK:BMGP)
$1.7
NA
NA
Zhuhai Oil Energy Science and Technology Ltd. operates as an inventor and producer of unique gasoline and diesel biofuel blends.
7/14/2010
Verenium Biofuels Corporation
BP Biofuels North America, LLC
$98.3
NA
NA
Verenium Biofuels Corporation manufactures ethanol from cellulosic biomass materials.
7/13/2010
Goldpoly International Ltd.
Time Infrastructure Holdings Ltd. (SEHK:686)
NA
$14.2
NA
Goldpoly International Ltd. manufactures and sells solar silicon cells. The company is based in China.
6/8/2010
Primafuel
EdeniQ
NA
NA
NA
Primafueldevelops and commercializes technology solutions for the biofuels industry.
5/31/2010
Sierra Geothermal Power
Ram Power
$23.0
NA
NA
Sierra Geothermal Power is a renewable energy company that engages in the exploration and development of geothermal power projects in the United States and Canada .
5/21/2010
Solaicx
MEMC Electronic Materials Inc.
$98.8
NA
NA
Solaicx manufactures and sells mono-crystalline silicon ingots and wafers. It serves solar cell and module manufacturers in the photovoltaic industry.
5/20/2010
Exlites Holdings International
Shining Bell
NA
NA
NA
Exlites develops and manufactures on grid and off grid solar lighting systems.
5/20/2010
Forefront Innovative Technologies Inc.
Kensington Capital Partners Limited
NA
NA
NA
Forefront Innovative Technologiesmanufactures solar panels.
5/13/2010
Clean Diesel Technologies Catalytic Solutions, Inc.
NA
$1.6
NA
Clean Diesel Technologies designs, develops, markets, and licenses technologies and solutions for the emission reduction market.
5/12/2010
Home Performance Pro, Inc SolarCity Corporation
NA
NA
NA
Home Performance Pro, doing business as Building Solutions provides energy efficiency services to homeowners in the United States.
5/11/2010
Renewable Energy
NA
$3,799.8
$1,556.0
2.4x
Renewable Energy engages in the development and sale of products related to the photovoltaic (PV) industry.
5/11/2010
ISI Solar
Alteris Renewables
NA
NA
NA
ISI Solar engages in the design and installation of solar electric/photovoltaic, solar thermal, and wind energy systems for residential and commercial clients.
Source: Capital IQ, 451 Group
Morgan Joseph LLC
Page 25 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Internet
Date
Target
09/30/2010
Stroz Friedberg, LLC
Amount Raised
Investors
Business Description
09/30/2010
Tonchidot Corporation
09/29/2010
Toppoly Optoelectronics (Nanjing) Ltd.
09/29/2010
glo AB
09/29/2010
Ongo Inc.
09/28/2010
EspaceMax SAS
09/28/2010
Retail Solutions, Inc.
09/28/2010
PVT Solar Inc.
09/27/2010
NetShelter Technology Media
09/24/2010
Groupe CommentÇaMarche Régie
36.41 IDInvest Partners; R Capital Management; Time Investors
Groupe CommentÇaMarche Régie provides online services.
09/22/2010
Aster Data Systems, Inc.
Aster Data Systems, Inc. provides massively parallel processing databases for data warehousing and analytics.
09/22/2010
RightScale, Inc.
09/21/2010
Aryaka Networks, Inc.
09/21/2010
Private Outlet SAS
09/21/2010
Rocket Fuel Inc.
09/20/2010
Brownstone Publishing, LLC
30.0 Institutional Venture Partners; Sequoia Capital; Cambrian Ventures, Inc.; JAFCO Ventures 25.0 Benchmark Capital; Index Ventures; Presidio STX, LLC; Tenaya Capital; DAG Ventures, LLC 14.0 Mohr Davidow Ventures; Trinity Ventures; Nexus Venture Partners; Stanford University, Endowment Arm 11.77 Kreos Capital; GIMV NV (ENXTBR:GIMB); Turenne Capital Partenaires; BayTech Venture Capital; GP Bullhound Limited, 10.0 Labrador Ventures; Mohr Davidow Ventures; Northgate Capital Group, L.L.C.; Nokia Growth Partners 22.5 Battery Ventures
09/20/2010
Cirtas Systems, Inc.
09/17/2010
BriVictory Display Technology (BVI) Co., Ltd.
09/16/2010
Netretail Holding B.V.
14.4 Intel Capital; MCI Management SA (WSE:MCI)
Netretail Holding B.V., through its subsidiary, engages in online retail.
09/15/2010
Quantenna Communications, Inc.
09/15/2010
Copia Interactive, LLC
30.0 Sequoia Capital; Sigma Partners; Venrock; Southern Cross Venture Partners; DAG Ventures, LLC 20.0 DMC Capital Funding, LLC
Quantenna Communications, Inc., a fabless semiconductor company, develops silicon for wireless high definition video home networking that delivers wireless bandwidth in North America. Copia Interactive, LLC develops social media and content delivery platform.
09/15/2010
Conviva, Inc.
Conviva, Inc. provides a media platform to companies for managing the distribution of live media and programming online.
09/15/2010
DocExchange, Inc.
09/15/2010
China Standard Software Co., Ltd.
09/14/2010
Nexant, Inc.
09/14/2010
SandForce, Inc.
15.0 Foundation Capital; New Enterprise Associates; Pelion Venture Partners; GGV Capital 15.0 Foundation Capital; North Bridge Venture Partners; SVB Financial Group (NasdaqGS:SIVB) 12.61 China National Software & Service Company Limited (SHSE:600536); Isoft Infrastructure Software Co., Ltd. 43.0 Beacon Group Investment Arm; Oak Investment Partners; Telesoft Partners; Intel Capital 25.0 Canaan Partners; LSI Corporation (NYSE:LSI); Doll Capital Management; Storm Ventures Inc.; UMC Capital;
115.0 New Mountain Capital, LLC
Stroz Friedberg, LLC, a technical consulting and services company, specializes in digital forensics, mobile device and cell phone forensics, electronic discovery, data breach response, online fraud and abuse incident response, and commercial investigations. 12.0 Doll Capital Management; JAFCO Co., Ltd. TonchiDot Corporation develops and provides mobile phone based applications and (TSE:8595); KDDI Corp. (TSE:9433); services. SPiRE, Inc. (OSE:4309); ITOCHU 150.0 Chimei Innolux Corporation (TSEC:3481) Toppoly Optoelectronics (Nanjing) Ltd. manufactures LCD modules.
25.26 VantagePoint Venture Partners; Teknoinvest AS; Wellington Partners Venture Capital GmbH; Provider Venture 12.0 Gannett Co., Inc. (NYSE:GCI); The Washington Post Company (NYSE:WPO); The New York Times Company 17.65 Amundi Asset Management; Serena Capital; Masseran Gestion 15.2 Bessemer Venture Partners; Red Rock Ventures; Venrock; SAP Ventures; Investor Growth Capital 13.7 Sigma Partners; Khosla Ventures; Environment and Energy Investment Co. Ltd. 15.0 JLA Ventures; Rho Capital Partners, Inc.
10.0 New Enterprise Associates; Lightspeed Venture Partners; Amazon.com Inc., Investment Arm 16.0 AU Optronics Corp. (TSEC:2409); TPV Technology Ltd. (SEHK:903)
glo AB develops and commercializes nanowire light emitting diodes for illumination markets in Sweden and internationally. Ongo Inc. offers news aggregation service.
EspaceMax SAS engages in online retail of fashion apparels and accessories.
Retail Solutions, Inc. develops and delivers a suite of software-as-a-service solutions for retailers and consumer packaged goods manufacturers in the Americas and Europe. PVT Solar Inc. develops solar electric/solar thermal systems.
NetShelter Technology Media provides digital marketing services focusing on the technology sector.
RightScale, Inc. provides an automated management platform and consulting services to create Web solutions. Aryaka Networks, Inc. offers cloud-based application acceleration and WAN optimization solutions in the United States, Asia, and Europe. Private Outlet SAS operates Private Outlet, an online shopping club.
Rocket Fuel Inc. provides an ad serving technology platform for agencies and advertisers to manage, run, and evaluate online campaigns. Brownstone Publishing, LLC, doing business as Angie's List, provides ratings, reports, and reviews about service companies to members in the United States. Cirtas Systems, Inc. provides cloud storage solutions.
BriVictory Display Technology (BVI) Co., Ltd., through its subsidiary, intends to manufacture and sell LCD modules and backlight units.
DocExchange, Inc., doing business as SpringCM, provides enterprise content management solutions through Web-based software-as-a-service model. China Standard Software Co., Ltd. specializes in the research, development, promotion, and service of system software for government, enterprise, and education industries. Nexant, Inc. provides electric power grid software, and alternative energy technologies and services in the United States and internationally. SandForce, Inc. provides solid state drive (SSD) processors for original equipment manufacturers.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 26 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Internet (Continued)
Date
Target
09/14/2010
Cint AB
Amount Raised
Investors
09/13/2010
StorSimple, Inc.
13.0 Mayfield Fund; Redpoint Ventures; Index Ventures; Ignition Partners
StorSimple, Inc. provides data storage services.
09/13/2010
Sonatype, Inc.
Sonatype, Inc. provides enterprise software development tools and services.
09/09/2010
Xian Walsin United Technology Co., Ltd.
11.6 Accel Management Co, Inc.; Bay Partners; Hummer Winblad Venture Partners; Morgenthaler 30.0 Walsin Lihwa Holdings Limited
09/08/2010
Livescribe, Inc.
Livescribe, Inc. provides a mobile computing platform.
09/08/2010
Ooyala, Inc.
09/08/2010
Winshuttle, Inc.
39.0 CrossLink Capital, Inc.; VantagePoint Venture Partners; Presidio STX, LLC; Scale Venture Partners; QUALCOMM Ventures; 22.0 Sierra Ventures; Rembrandt Venture Partners; The CID Group; ITOCHU Technology Ventures, Inc. 12.0 Summit Partners
09/08/2010
Penny Auction Solutions, Inc.
10.0 Kodiak Capital Group LLC
Penny Auction Solutions, Inc. develops penny auction Web sites.
09/07/2010
Yintai.com
09/07/2010
uTest Inc.
13.0 Egan-Managed Capital; Longworth Venture uTest Inc. operates an online marketplace for software testing services. Partners; Scale Venture Partners
09/07/2010
DataSphere Technologies, Inc.
10.0 OVP Venture Partners
DataSphere Technologies, Inc. is a software as a service Web technology and ad sales company.
09/06/2010
Foxconn Rus LLC
43.0 Hon Hai Precision Industry Co. Ltd. (TSEC:2317)
Foxconn Rus LLC manufactures electronic products, such as, computers.
09/03/2010
ActiFio Inc.
16.0 Advanced Technology Ventures; Greylock Partners; North Bridge Venture Partners
ActiFio Inc. operates as an information technology storage startup company which provides data storage and warehousing services.
09/02/2010
ZEturf Limited
09/01/2010
Doculynx, Inc.
15.0 Sverica International
DocuLynx, Inc. develops and distributes archive and Web presentment software products internationally.
09/01/2010
SportsMEDIA Technology Corporation
12.5 Vicente Capital Partners
SportsMEDIA Technology Corporation develops and markets real-time scoring and wireless data delivery systems.
08/31/2010
Showroomprive.com, SARL
08/27/2010
iContact Corporation
42.5 JMI Equity
iContact Corporation provides Web-based software for businesses and organizations to manage their online communications.
08/26/2010
Lattice Power Corp.
20.0 International Finance Corporation
Lattice Power Corp. designs and manufactures high-brightness light emitting diodes for use in displays.
08/25/2010
Telepo AB
08/25/2010
Atlantis Computing Inc.
10.0 Cisco Systems, Inc. (NasdaqGS:CSCO); El Atlantis Computing Inc. provides Virtual Desktop Infrastructure (VDI) performance and Dorado Ventures; Partech International storage optimization software solutions.
08/24/2010
BizArk Service Ltd.
40.0 IDG Ventures
BizArk Service Ltd. operates a foreign trade e-commerce service platform.
08/24/2010
Gas-n-Go Ltd.
15.0 Alleghany Capital Corporation
Gas-n-Go Ltd. provides automated vehicle identification products, technology, and service systems for fuel delivery.
08/24/2010
Quwan.com
10.0 TrustBridge Partners; Matrix Partners China; Ez Capital Funding, Inc
Quwan.com operates as an online department store.
08/23/2010
AVAST Software a.s.
08/23/2010
Nimbula, Inc.
12.99 Prime Technology Ventures N.V.; Creandum AB
14.72 Intime Department Store Group Company Ltd (SEHK:1833)
11.54 IDInvest Partners
47.03 Accel Management Co, Inc.
12.64 Accel Management Co, Inc.; Investor Growth Capital
100.0 Summit Partners
15.0 Accel Management Co, Inc.; Sequoia Capital
Business Description Cint AB offers online panel management and project management services.
Xian Walsin United Technology Co., Ltd. manufactures electronic devices and modules.
Ooyala, Inc. provides video solutions to video content providers, advertisers, publishers, and consumers. Winshuttle, Inc. provides SAP data software solutions that enable business and IT users to work with SAP directly from Excel, Web forms, and other interfaces.
Yintai.com operates as an online department store.
ZEturf Limited operates an online information and betting Website on horse racing.
Showroomprive.com, SARL operates as an online shopping website for clothing, cosmetics and household products.
Telepo AB provides enterprise mobility and converged communication solutions for businesses and service providers.
ALWIL Software a.
Nimbula, Inc., a stealth mode company, develops cloud infrastructure software.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 27 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Internet (Continued)
Date
Target
08/23/2010
Pocketgear, Inc.
Amount Raised
Investors
08/23/2010
Topcell Solar International Co., Ltd.
08/20/2010
Wistron Mexico S.A. de C.V.
08/20/2010
Brand Affinity Technologies, Inc.
08/20/2010
Apptio, Inc.
08/20/2010
Media V Co., Ltd.
08/20/2010
Adaptive Computing Enterprises Inc.
14.0 EPIC Ventures; Intel Capital; Tudor Ventures
Adaptive Computing Enterprises Inc. provides intelligent automation software solutions for data center, cloud, and high-performance computing environments.
08/20/2010
EverFi, Inc.
11.0 New Enterprise Associates; TomorrowVentures, LLC
08/19/2010
PlaySpan, Inc.
EverFi, Inc. provides college financial literacy and student loan management products for secondary schools, public high schools, colleges, foundations, community organizations, and universities. PlaySpan, Inc. offers monetization solutions for online games, virtual worlds, and social networks.
08/18/2010
MVL Telecom Limited
08/17/2010
Storage Appliance Corporation
08/17/2010
Quick Heal Technologies (P) Ltd.
08/16/2010
Smooth-Stone, Inc.
08/16/2010
Ybrant Digital Limited
08/16/2010
Cardlytics, Inc.
08/16/2010
Sojern, Inc.
08/12/2010
VSS Monitoring, Inc.
20.0 Battery Ventures
08/12/2010
MINDBODY, Inc.
14.0 Bessemer Venture Partners; Catalyst Investors
08/11/2010
Dongguan Masstop Liquid Crystal Display Co. Ltd.
60.0 Wintek Corp. (TSEC:2384)
08/11/2010
Manzuo.com
10.0 Kleiner, Perkins, Caufield & Byers
08/10/2010
TSMC China Company Limited
225.0 Taiwan Semiconductor Manufacturing Co. Ltd. (TSEC:2330)
TSMC China Company Limited manufactures and distributes integrated circuits.
08/10/2010
Nanosys, Inc.
Nanosys, Inc. engages in the development and commercialization of nanotechnologyenabled products in the United States.
08/06/2010
Nanhai Chi Mei Electronics Ltd.
30.0 Arch Venture Partners, L.P.; El Dorado Ventures; Prospect Venture Partners; Venrock; Samsung Venture Investment 100.0 Chimei Innolux Corporation (TSEC:3481)
08/06/2010
Ningbo Chi Mei Electronics Ltd.
65.0 Chimei Innolux Corporation (TSEC:3481)
-
08/06/2010
Innocom Technology (Shenzhen) Ltd.
36.0 Chimei Innolux Corporation (TSEC:3481)
Innocom Technology (Shenzhen) Ltd. designs, manufactures, and supplies liquid crystal display (LCD) manufacturing equipment in China.
08/06/2010
TPO Display (Shanghai) Ltd.
24.0 Tpo Displays Hong Kong Limited
TPO Display (Shanghai) Ltd. manufactures and distributes LCD modules.
15.0 JLA Ventures; Trident Capital, Inc.; RBC Venture Partners 11.27 UMC New Business Investment Corp.
34.3 Wistron Corp. (TSEC:3231)
Business Description Pocketgear, Inc., a mobile device software company, provides a platform that connects people internationally with smartphone applications from a network of developers. Topcell Solar International Co., Ltd. designs and manufactures mono-crystalline and multicrystalline solar cells. Wistron Mexico S.A. de C.V. manufactures technology hardware products such as personal computers and handheld devices.
21.63 Fulcrum Capital Group, LLC; ad pepper Brand Affinity Technologies, Inc. develops solutions for electronic media. media International N.V. (XTRA:APM); Miramar Venture Partners; CGI Opportunity 20.0 Greylock Partners; Madrona Venture Group; Apptio, Inc. provides on demand IT cost transparency/optimization solutions. Shasta Ventures; Andreessen Horowitz 14.72 Lightspeed Venture Partners; GGV Capital
18.0 Menlo Ventures; Vodafone Ventures; STIC Investments, Inc; Softbank China & India Holdings; Novel TMT Ventures Limited 52.63 MVL Ltd. (NSEI:MVL)
15.0 Tandem
12.86 Sequoia Capital India
48.0 Battery Ventures; Highland Capital Partners; ARM Holdings plc (LSE:ARM); Flybridge Capital Partners; Advanced 35.0 Asia Pacific Capital
Media V Co., Ltd. provides online sales support and solutions through its digital sales platform.
MVL Telecom Limited manufactures and markets mobile phones.
Storage Appliance Corporation, a software company, develops consumer backup solutions.
Quick Heal Technologies (P), Ltd. engages in the development, marketing, and export of antivirus and Internet security software for home users, small and medium businesses, and corporations under the brand name Quick Heal. Smooth-Stone, Inc. develops semiconductor solutions that reduce data center power consumption. Ybrant Digital Limited offers digital marketing solutions to businesses, agencies, and online publishers.
18.0 Kinetic Ventures, L.L.C.; Canaan Partners; Cardlytics, Inc. offers banking rewards solution services. Polaris Venture Partners, Inc.; ITC Holding Company, LLC; Total Technology Ventures, 10.0 Focus Ventures; Norwest Venture Partners; Sojern, Inc. provides customized and destination-oriented content to airline passengers in Trident Capital, Inc. their trip. VSS Monitoring, Inc., a network traffic capture solutions company, designs and manufactures network taps for voice over IP systems, carrier Ethernet, IPTV, and network forensics monitoring applications in the United States and internationally. MINDBODY, Inc., a software-as-a-service company, develops, sells, and supports scheduling and business management software for businesses in yoga, pilates, day spa, and fitness markets. Dongguan Masstop Liquid Crystal Display Co. Ltd. manufactures and sells liquid crystal modules (LCM) products. Manzuo.com engages in the business of online group buy and location based marketing campaigns.
Nanhai Chi Mei Electronics Ltd. manufactures and distributes TFT-LCD modules and touch panels.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 28 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Internet (Continued)
Date
Target
08/06/2010
Changzhou Vimic Electronic Equipment Co., Ltd.
Amount Raised
20.0 Moral Chance Asia Limited
Investors
08/06/2010
G5 Search Marketing, Inc.
15.0 Volition Capital LLC
08/06/2010
VAP Optoelectronics (NanJing) Corp.
10.0 Chimei Innolux Corporation (TSEC:3481)
08/04/2010
Ozsale Pty Ltd.
08/03/2010
Accedian Networks, Inc.
08/03/2010
Xactly Corporation
08/02/2010
Notonthehighstreet Enterprises Limited
07/30/2010
Suncore Photovoltaics Co., Ltd.
07/30/2010
YouSendIt, Inc.
07/29/2010
Morega Systems Inc.
07/28/2010
eWise Systems Pty Ltd
07/27/2010
13.28 Insight Venture Partners
19.5 Rho Capital Partners, Inc.; Summit Partners; Skypoint Capital Corporation
Business Description Changzhou Vimic Electronic Equipment Co., Ltd. engages in manufacturing of telecommunication transmission, signal switching, application terminal devices, and IT peripheral supporting equipment. G5 Search Marketing, Inc. provides local marketing solutions for mid-market companies and business owners in the United States and Canada. VAP Optoelectronics (NanJing) Corp. manufactures and distributes LCD modules, backlight, and related components. Ozsale Pty Ltd. operates as an online retailer of consumer goods like clothing for children.
Accedian Networks, Inc. provides carrier-grade test, measurement, and networking solutions.
12.0 Alloy Ventures, Inc.; Bay Partners; Glynn Xactly Corporation, a software-as-a-service provider, offers on-demand incentive Capital Management; Rembrandt Venture compensation management and sales performance management solutions. Partners; Outlook Ventures; Salesforce.com 11.92 Greylock Partners; Index Ventures Notonthehighstreet Enterprises Limited operates shopping website Notonthehighstreet.com. 30.0 EMCORE Corporation (NasdaqGM:EMKR); Sanan Optoelectronics Co. Ltd. (SHSE:600703) 15.0 Alloy Ventures, Inc.; Adams Street Partners, LLC; Sigma Partners; Emergence Capital Partners 10.0 Celtic House Venture Partners Inc.; Matrix Asset Management Inc. (TSX:MTA); The Ontario Capital Growth Corporation 12.1 Total Technology Ventures, LLC; Balderton Capital
Suncore Photovoltaics Co., Ltd. intends to manufacture and market concentration photovoltaic (CPV) receivers, modules and systems for terrestrial solar power applications.
CloudMade Ltd.
12.3 Greylock Partners; Sunstone Capital A/S
CloudMade Ltd., an open-source mapping company, provides datasets from geo-data for routing, desktop, and mobile or Web applications.
07/26/2010
Solera Networks, Inc.
15.0 Allegis Capital; Trident Capital, Inc.; Canopy Solera Networks, Inc. delivers network appliance products and monitoring services. Group
07/26/2010
SRL Global
11.61 Revere Capital Advisors LLC; Augmentum Capital LLP
SRL Global develops an enterprise investment platform for the asset management industry in the United Kingdom.
07/26/2010
Maya Technologies Limited
11.61 Revere Capital Advisors LLC; Augmentum Capital LLP
Maya Technologies Limited develops software to support financial trading desks and portfolio managers.
07/26/2010
Talari Networks, Inc.
10.0 Menlo Ventures; Silver Creek Ventures
Talari Networks, Inc. provides enterprise WAN/LAN switching and routing solutions.
07/26/2010
Red Lambda, Inc.
10.0 V2R Group, Inc.
Red Lambda, Inc. provides grid-based and identity-aware network security software.
07/24/2010
Hongfujin Precision Electronics (Zhengzhou) Co., Ltd.
20.0 Best Behaviour Holdings Limited
07/24/2010
Futaihua Precision Electronics (CHENGGDU) Co. Ltd.
12.0 Best Behaviour Holdings Limited
Hongfujin Precision Electronics (Zhengzhou) Co., Ltd., a development stage company, intends to offer 3G and new generation cell phones; base station systems; core network equipment; and metal and non-metal moulds. Futaihua Precision Electronics (CHENGGDU) Co. Ltd. engages in manufacturing tablet computers and set top boxes.
07/23/2010
Avere Systems, Inc.
17.0 Menlo Ventures; Norwest Venture Partners; Avere Systems, Inc. focuses on developing and delivering demand-driven storage Tenaya Capital solutions.
07/21/2010
Joyent, Inc.
15.0 Intel Capital; Greycroft, LLC
07/20/2010
Jive Software, Inc.
30.0 Kleiner, Perkins, Caufield & Byers; Sequoia Jive Software, Inc. develops, markets, and sells social productivity and community software Capital solutions for enterprises in the United States and internationally.
07/20/2010
Borrego Solar Systems, Inc.
20.0 East West Bank; U.S. Bank
07/20/2010
AdMeld, Inc.
07/20/2010
TrueCar, Inc.
07/20/2010
Validity Sensors, Inc.
YouSendIt, Inc. provides digital content delivery solutions.
Morega Systems, Inc. operates as a software and systems vendor for content portability.
eWise Systems Pty Ltd provides financial software solutions in the United Kingdom and internationally.
Joyent, Inc., a cloud computing company, provides public and private cloud computing solutions in the United States, China, and internationally.
Borrego Solar Systems, Inc. engages in the design, development, engineering, and installation of commercial, residential, and public sector grid-connected solar electric systems. 15.0 Norwest Venture Partners; Time Warner AdMeld, Inc. provides advertising network optimization technology for online publishers in Investments; Spark Capital; Foundry Group the United States and internationally. 14.0 GRP Partners; United Services Automobile Association; Capricorn Investment Group LLC 12.6 CrossLink Capital, Inc.; Telesoft Partners; QUALCOMM Ventures; VentureTech Alliance LLC; Panorama Capital
TrueCar, Inc. provides data and price reports of cars.
Validity Sensors, Inc. provides biometric sensor company specializing in fingerprint authentication sensors for personal computer products, mobile devices, portable media products, and access control solutions.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 29 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Internet (Continued)
Date
Target
07/20/2010
Flipboard, Inc.
Amount Raised
10.5 Kleiner, Perkins, Caufield & Byers; Index Ventures; The Chernin Group
Investors
Flipboard, Inc. provides a social magazine as an iPad application available in the iPad app store.
07/19/2010
Siliconware Technology (Suzhou) Limited
15.0 Siliconware Precision Industries Co. Ltd. (TSEC:2325)
Siliconware Technology (Suzhou) Limited engages in manufacturing and processing of module assembly and testing, flash memory card and related products.
07/19/2010
OkayBuy.com.cn
07/19/2010
Gazelle
12.0 Venrock; RockPort Capital Partners; Physic Gazelle, a recommerce company, provides an online service for selling and recycling Ventures, LLC unwanted electronics.
07/16/2010
Pixazza, Inc.
12.0 August Capital; CMEA Capital; Shasta Ventures; Google Ventures
07/15/2010
Trilliant Incorporated
07/15/2010
Wilocity Ltd.
07/15/2010
Edata Solutions LLC
07/14/2010
Atlassian Pty Ltd.
07/14/2010
NTL Electronics India Ltd.
07/14/2010
BlueArc Corporation
07/14/2010
Power Assure, Inc.
07/14/2010
7 Star Entertainment, Inc.
07/13/2010
Inflection LLC
07/13/2010
Mirics Semiconductor Inc.
13.0 Pond Venture Partners Ltd.; Intel Capital; Acacia Capital Partners
Mirics Semiconductor Inc., a fabless semiconductor company, develops silicon and software solutions for analog and digital broadcast reception.
07/13/2010
Okta, Inc.
10.0 Andreessen Horowitz
Okta, Inc. provides cloud application management service.
07/12/2010
Ubiquisys Ltd.
14.0 Accel Management Co, Inc.; Advent Ubiquisys, Ltd., a mobile communications company, designs and develops communications Venture Partners; Atlas Venture LLP; UMC devices for mobile operators and consumers. Capital; Sercomm (TSEC:5388); Pacific
14.74 Sequoia Capital China
106.0 VantagePoint Venture Partners; Zouk Ventures Ltd; Investor Growth Capital; ABB Group, Investment Arm; MissionPoint 20.0 Benchmark Capital; Atheros Communications Inc. (NasdaqGS:ATHR); Tallwood Venture Capital; Sequoia Capital 15.0 Greenbrook Capital Management, LLC; Spectrum Business Ventures, Inc. 60.0 Accel Management Co, Inc.
25.72 CX Partners
22.0 Investor Growth Capital
11.25 Draper Fisher Jurvetson; Point Judith Capital; Good Energies Inc. 10.0 Kodiak Capital Group LLC
30.27 Matrix Partners; Sutter Hill Ventures
Business Description
OkayBuy.com.
Pixazza, Inc. provides an Internet service that turns static images into engaging content.
Trilliant Incorporated provides wireless network solutions and software for advanced metering, demand response, and grid management applications. Wilocity Ltd. develops 60 GHz wireless chipsets for the notebook and peripheral markets.
Edata Solutions LLC provides SaaS (Software as a Service) technology solutions.
Atlassian Pty Ltd. develops and provides enterprise software solutions.
NTL Electronics India Ltd. manufactures electronic products for the lighting industry in the B2B segment. BlueArc Corporation provides unified network storage systems.
Power Assure, Inc. develops power management software as a service solution that reduces energy use and carbon emissions in commercial, corporate, and government data centers. 7 Star Entertainment, Inc. through its subsidiaries offers services such as online marketing, online videos, online dating, custom acquisitions, and social networking. Inflection LLC designs and develops family history and people search solutions.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 30 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Software Amount Raised Date
Company
Investors
Business Description
9/29/2010
Koofers, Inc.
$5.0
Altos Ventures; New Atlantic Ventures; Revolution LLC; QED Investors LLC
Koofers, Inc. operates an online community that serves the academic needs of college students through information sharing.
9/28/2010
Retail Solutions, Inc.
$15.2
Bessemer Venture Partners; Red Rock Ventures; Venrock; SAP Ventures; Investor Growth Capital
Retail Solutions, Inc. develops and delivers a suite of software-as-a-service solutions for retailers and consumer packaged goods manufacturers in the Americas and Europe.
9/28/2010
Verve Wireless, Inc.
$7.0
BlueRun Ventures; The Associated Press
Verve Wireless, Inc., a wireless technology developer, provides applications and services to publishers and media companies.
9/27/2010
NetShelter Technology Media
$15.0
JLA Ventures; Rho Capital Partners, Inc.
NetShelter Technology Media provides digital marketing services focusing on the technology sector.
9/27/2010
Monarch Innovative Technologies Private Limited
$5.5
NEA-IndoUS Ventures
Monarch Innovative Technologies Pvt. Ltd. develops application specific software for broadcast, video, and photo imaging industry.
9/24/2010
Groupe CommentÇaMarche Régie
$36.4
IDInvest Partners; R Capital Management; Time Investors
Groupe CommentÇaMarche Régie provides online services. The company was incorporated in 2009 and is based in Paris, France.
9/23/2010
Firmware Technologies Inc.
$33.3
Undisclosed
Firmware Technologies Inc. develops a collaboration and communications platform that distributes large sets of data and renders visualization.
9/22/2010
Aster Data Systems, Inc.
$30.0
Institutional Venture Partners; Sequoia Capital; Cambrian Ventures, Inc.; JAFCO Ventures
Aster Data Systems, Inc. provides massively parallel processing databases for data warehousing and analytics.
9/21/2010
RightScale, Inc.
$25.0
Benchmark Capital; Index Ventures; Presidio STX, LLC; Tenaya Capital; DAG Ventures, LLC
RightScale, Inc. provides an automated management platform and consulting services to create Web solutions.
9/20/2010
Brownstone Publishing, LLC
$22.5
Battery Ventures
Brownstone Publishing, LLC, doing business as Angie's List, provides ratings, reports, and reviews about service companies to members in the United States.
9/20/2010
Data Impact, Inc.
$5.0
Zon Capital Partners, LLC
Data Impact, Inc., a software as a service company, provides electronic invoice presentment and payment, and online document repository solutions.
9/15/2010
Copia Interactive, LLC
$20.0
DMC Capital Funding, LLC
Copia Interactive, LLC develops social media and content delivery platform.
9/15/2010
DocExchange, Inc.
$15.0
Foundation Capital; North Bridge Venture Partners; SVB Financial Group (NasdaqGS:SIVB)
DocExchange, Inc., doing business as SpringCM, provides enterprise content management solutions through Web-based software-as-a-service model.
9/15/2010
Conviva, Inc.
$15.0
Foundation Capital; New Enterprise Associates; Pelion Conviva, Inc. provides a media platform to companies for managing the distribution of live Venture Partners; GGV Capital media and programming online.
9/14/2010
Nexant, Inc.
$43.0
Beacon Group Investment Arm; Oak Investment Partners; Telesoft Partners; Intel Capital
Nexant, Inc. provides electric power grid software, and alternative energy technologies and services in the United States and internationally.
9/13/2010
Sonatype, Inc.
$11.6
Accel Management Co, Inc.; Bay Partners; Hummer Winblad Venture Partners; Morgenthaler
Sonatype, Inc. provides enterprise software development tools and services.
9/8/2010
Ooyala, Inc.
$22.0
Sierra Ventures; Rembrandt Venture Partners; The CID Group; ITOCHU Technology Ventures, Inc.
Ooyala, Inc. provides video solutions to video content providers, advertisers, publishers, and consumers.
9/8/2010
Winshuttle, Inc.
$12.0
Summit Partners
Winshuttle, Inc. provides SAP data software solutions that enable business and IT users to work with SAP directly from Excel, Web forms, and other interfaces.
9/8/2010
Penny Auction Solutions, Inc.
$10.0
Kodiak Capital Group LLC
Penny Auction Solutions, Inc. develops penny auction Web sites.
9/6/2010
MeetYourFriends.co m
$50.0
Undisclosed
MeetYourFriends.com operates as an online social community. It enables users to build a personal profile and upload photos, and search people, as well as to search, meet, chat, flirt, and socialize with people.
9/6/2010
FireID South Africa
$27.8
4Di Capital
FireID South Africa, a software development company, provides a solution for safe banking and online shopping.
9/3/2010
ValueScout, Inc.
$9.0
Menlo Ventures; True Ventures; Harrison Metal Capital ValueScout, Inc. operates website which provides online lifestyle magazine featuring specials to the best restaurants, hotels, and spas. ValueScout, Inc. was incorporated in 2008 and is based in San Francisco, California.
9/2/2010
Movilway SL
$30.0
Undisclosed
($mm)
Movilway SL offers a technology platform that enables electronic transactions of any kind through the use of a cell phone. The company was founded in 2010 and is based in Madrid, Spain.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 31 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Software (Continued) Amount Raised Date
Company
($mm)
Investors
Business Description
9/1/2010
Doculynx, Inc.
$15.0
Sverica International
DocuLynx, Inc. develops and distributes archive and Web presentment software products internationally.
8/31/2010
Showroomprive.com, SARL
$47.0
Accel Management Co, Inc.
Showroomprive.com, SARL operates as an online shopping website for clothing, cosmetics and household products.
8/27/2010
iContact Corporation
$42.5
JMI Equity
iContact Corporation provides Web-based software for businesses and organizations to manage their online communications.
8/25/2010
SilkRoad Technology, Inc.
$40.0
Undisclosed
SilkRoad Technology, Inc. provides talent management solutions.
8/24/2010
BizArk Service Ltd.
$40.0
IDG Ventures
BizArk Service Ltd. operates a foreign trade e-commerce service platform.
8/23/2010
AVAST Software a.s.
$100.0
Summit Partners
ALWIL Software a.s. provides a portfolio of computer security software products for home, home office, and businesses internationally.
8/23/2010
Nimbula, Inc.
$15.0
Accel Management Co, Inc.; Sequoia Capital
Nimbula, Inc., a stealth mode company, develops cloud infrastructure software. The company was formerly known as Benguela, Inc. The company was founded in 2008 and is based in Menlo Park, California.
8/23/2010
Pocketgear, Inc.
$15.0
JLA Ventures; Trident Capital, Inc.; RBC Venture Partners
Pocketgear, Inc., a mobile device software company, provides a platform that connects people internationally with smartphone applications from a network of developers.
8/20/2010
Adaptive Computing Enterprises Inc.
$14.0
EPIC Ventures; Intel Capital; Tudor Ventures
Adaptive Computing Enterprises Inc. provides intelligent automation software solutions for data center, cloud, and high-performance computing environments.
8/16/2010
Ybrant Digital Limited
$35.0
Asia Pacific Capital
Ybrant Digital Limited offers digital marketing solutions to businesses, agencies, and online publishers.
8/12/2010
Travelport Limited
$250.0
Undisclosed
Travelport Limited provides business services, as well as transaction processing solutions and data to companies operating in the travel industry worldwide.
8/11/2010
Soft Machines, Inc.
$30.2
Undisclosed
Soft Machines, Inc. develops machine software. The company was founded in 2006 and is based in Santa Clara, California.
8/4/2010
PatientsLikeMe, Inc.
$30.0
Undisclosed
PatientsLikeMe, Inc. operates an online community for patients, doctors, and healthcare organizations.
7/27/2010
CloudMade Ltd.
$12.3
Greylock Partners; Sunstone Capital A/S
CloudMade Ltd., an open-source mapping company, provides datasets from geo-data for routing, desktop, and mobile or Web applications.
7/23/2010
Hungry Machine, Inc.
$10.2
Undisclosed
Hungry Machine, Inc., doing business as LivingSocial.com, is a social discovery and cataloging network. Hungry Machine, Inc. was founded in 2008 and is based in Washington, District of Columbia.
7/21/2010
Joyent, Inc.
$15.0
Intel Capital; Greycroft, LLC
Joyent, Inc., a cloud computing company, provides public and private cloud computing solutions in the United States, China, and internationally.
7/20/2010
Jive Software, Inc.
$30.0
Kleiner, Perkins, Caufield & Byers; Sequoia Capital
Jive Software, Inc. develops, markets, and sells social productivity and community software solutions for enterprises in the United States and internationally.
7/20/2010
Flipboard, Inc.
$10.5
Kleiner, Perkins, Caufield & Byers; Index Ventures; The Chernin Group
Flipboard, Inc. provides a social magazine as an iPad application available in the iPad app store. The company was founded in 2010 and is based in Palo Alto, California.
7/14/2010
Fair Isaac Corp. (NYSE:FICO)
$245.0
Undisclosed
Fair Isaac Corporation, together with its subsidiaries, provides decision management solutions that enable businesses to automate, improve, and connect decisions to enhance business performance worldwide.
7/14/2010
Atlassian Pty Ltd.
$60.0
Accel Management Co, Inc.
Atlassian Pty Ltd. develops and provides enterprise software solutions.
7/13/2010
Nexant, Inc.
$50.4
Undisclosed
Nexant, Inc. provides electric power grid software, and alternative energy technologies and services in the United States and internationally.
7/13/2010
Inflection LLC
$30.3
Matrix Partners; Sutter Hill Ventures
Inflection LLC designs and develops family history and people search solutions.
7/12/2010
Oracle Corp. (NasdaqGS:ORCL)
Undisclosed
Oracle Corporation manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide.
$3,221.7
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 32 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Communications Amount Raised Date
Company
09/30/2010
Tonchidot Corporation
09/30/2010
Civico Limited
09/29/2010
WIBRO Infra Co., Ltd.
128.0
Samsung Electronics Co. Ltd. (KOSE:A005930); KT Corp. (KOSE:A030200); Intel Capital
Enables wireless data transmission services on mobile devices.
09/22/2010
Windstream Corporation (NasdaqGS:WIN) CCO Holdings LLC
500.0
Undisclosed
Provides various telecommunications services.
1,000.0
Undisclosed
Provides broadband communication services.
Sequoia Capital; Madison Capital Management, LLC; Sandstone Capital, LLC
Offers mobile phone solutions and wireless technologies.
Undisclosed
Provides fixed satellite capacity and related communications services.
Dublin Business Innovation Centre, Investment Arm; Enterprise Equity (Irl) Limited
Manufactures test automation and components for wireless communications industry.
103.0
Undisclosed
Provides fiber-based bandwidth, voice, and managed services.
09/20/2010
($mm) $12.0
0.2
-
Investors
Business Description
Doll Capital Management; JAFCO Co., Ltd. (TSE:8595); KDDI Corp. (TSE:9433); SPiRE, Inc. (OSE:4309); ITOCHU Technology Ventures, Inc. Advantage Creative Fund
Develops and provides mobile phone based applications and services.
Delivers live audio streamed via the Internet.
09/20/2010
Micromax Informatics Limited
09/16/2010
Intelsat Jackson Holdings S.A.
09/16/2010
Benetel Ltd.
09/14/2010
Zayo Group Inc.
09/14/2010
Yugratel OAO
22.9
Undisclosed
Offers telecommunication services.
09/14/2010
Capella Photonics, Inc.
17.5
Undisclosed
Provides wavelength management subsystems for use in reconfigurable optical add/drop multiplexer (ROADM) and optical crossconnect (OXC) applications.
09/14/2010
Sezmi Corporation
17.3
Undisclosed
Markets and distributes digital broadcast and broadband solutions.
09/13/2010
Cyan Optics, Inc.
5.0
NebraskaLink, LLC
Manufactures optical packet systems.
09/13/2010
&TV Communications Inc.
3.0
Undisclosed
Provides wire and wireless Internet protocol television (IPTV) services.
09/13/2010
Whaleback Systems, Inc.
1.2
Undisclosed
Develops phone solutions for small and medium businesses.
09/13/2010
VimpelCom Ltd.
-
Weather Investments S.r.l.
Provides voice and data services.
09/10/2010
G-Mobile Holdings Limited
30.0
Musa Capital Advisors, Ltd
Owns and operates WirelessG which is a WiFi and broadband provider.
09/10/2010
INL
CM-CIC Capital Privé SA; CapDecisif
Provides information security solutions.
09/09/2010
Barrett XPlore Inc.
30.0
Undisclosed
Provides wireless broadband services.
09/08/2010
Socowave Limited
3.8
Balderton Capital
Develops radio access systems and products for high-speed cellular and wireless broadband networks.
09/08/2010
Lyrix Inc.
BroadSoft, Inc. (NasdaqGM:BSFT)
Provides unified communications software and services.
09/07/2010
Voddler AB
5.5
Elisa Oyj (HLSE:ELI1V)
Provides virtual cable television system.
09/06/2010
SIPARTECH Sarl
1.9
Undisclosed
Operates as a dark fibre network provider.
09/01/2010
Two Degrees Mobile Limited
Trilogy International Partners, LLC
Provides mobile phone services in New Zealand.
1,000.0
-
1.9
-
13.5
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 33 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Communications (Continued) Amount Raised Date
Company
09/01/2010
Traak Systems Ltd.
0.3
Investors
Business Description
Scottish Enterprise, Investment Arm; Braveheart Investment Group plc (AIM:BRH); E-Synergy Ltd.
Develops RFID and sensor network appliances and services.
09/01/2010
Cluster Mobile, Inc.
-
Nauta Capital
Offers mobile telecommunication services.
08/30/2010
Skorpios Technologies, Inc.
2.0
Sun Mountain Capital; Cottonwood Technology Fund
Intends to offer opto-electronic modules for development of next generation communications ecosystem.
08/26/2010
Agile RF, Inc.
0.8
Undisclosed
Engages in the design and fabrication of tunable integrated components for wireless communications applications.
08/24/2010
Gas-n-Go Ltd.
15.0
Alleghany Capital Corporation
Provides automated vehicle identification products, technology, and service systems for fuel delivery.
08/24/2010
Full Spectrum Inc.
1.7
Undisclosed
Develops and manufacturers wireless communications infrastructure equipment for mission critical industries.
08/24/2010
Life Depot Inc.
0.1
Japan Best Rescue System (TSE:2453)
Provides “life support pack” contents services to customers availing cellular phone services and sells cancellation services for inconveniences.
08/20/2010
Whaleback Systems, Inc.
0.2
Undisclosed
Develops phone solutions for small and medium businesses.
08/19/2010
Airband Communications, Inc.
11.0
M/C Venture Partners; Ignition Partners; Key Venture Partners (KVP); Trilogy Equity Partners
Operates as a fixed wireless broadband provider.
08/18/2010
MVL Telecom Limited
52.6
MVL Ltd. (NSEI:MVL)
Manufactures and markets mobile phones.
08/17/2010
Precyse Technologies, Inc.
11.0
Undisclosed
Provides wireless asset network solutions.
08/13/2010
Celtro Ltd.
7.0
Rho Capital Partners, Inc.; Cedar Fund; Genesis Partners Ltd.
Develops and delivers mobile backhaul switching solutions.
08/13/2010
Aztek Networks, Inc.
6.0
Undisclosed
Supplies telecommunications switch solutions for network migration.
08/13/2010
Nicheken Technologies Pvt Ltd
-
Subhkam Ventures
Engages in the research, development, and manufacture of communication equipment and power electronics.
08/12/2010
VSS Monitoring, Inc.
20.0
Battery Ventures
Designs and manufactures network taps for voice over IP systems, carrier Ethernet, IPTV, and network forensics monitoring applications.
08/12/2010
ATX Innovation, Inc.
0.3
Undisclosed
Offers its users to pay restaurant and bar bills using mobile phones.
08/11/2010
Datagroup, Close Joint Stock Company
40.0
Horizon Capital
Provides integrated telecommunications services in Ukraine and the CIS.
08/11/2010
Xceedium, Inc.
7.4
Undisclosed
Provides entitlement management solutions.
08/10/2010
SpotterRF LLC
-
In-Q-Tel, Inc.
Provides radar products.
08/06/2010
Changzhou Vimic Electronic Equipment Co., Ltd. Omnitrol Networks, Inc.
Moral Chance Asia Limited
Engages in manufacturing of telecommunication transmission, signal switching, application terminal devices, and IT peripheral supporting equipment.
Undisclosed
Develops and distributes converged service-oriented application network solutions for the wireless, RFID, and sensor automation markets.
Gemtek Technology Co., Ltd. (TSEC:4906)
Manufactures and distributes communication and data transmission products.
Undisclosed
Provides wholesale long distance telephone services.
08/06/2010
08/06/2010
BandRich Inc.
08/04/2010
Phonetime Inc. (TSX:PHD)
08/03/2010
Accedian Networks, Inc.
($mm)
20.0
2.5
-
1.0
19.5
Rho Capital Partners, Inc.; Summit Partners; Skypoint Provides carrier-grade test, measurement, and networking solutions. Capital Corporation
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 34 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Communications (Continued) Amount Raised Date
Company
08/03/2010
Netpulse, Inc.
08/03/2010
Securus Inc.
07/31/2010
WalkinWifi Limited
07/28/2010
07/26/2010
Crown Castle International Corp. (NYSE:CCI) Solera Networks, Inc.
07/26/2010
07/24/2010
07/23/2010
Investors
Business Description
Undisclosed
Provides an interactive media platform for fitness centers and active lifestyle consumers.
-
Naples Ventures
Develops, manufactures, and sells pet tracking devices.
-
Midven Limited
Provides free of charge Wi-Fi internet access to members of the public, across a national network, in return for their agreement to be marketed to, via e-mail and text message.
Undisclosed
Engages in the ownership, operation, and leasing of towers and other communications structures.
15.0
Allegis Capital; Trident Capital, Inc.; Canopy Group
Delivers network appliance products and monitoring services.
Talari Networks, Inc.
10.0
Menlo Ventures; Silver Creek Ventures
Provides enterprise WAN/LAN switching and routing solutions.
Hongfujin Precision Electronics (Zhengzhou) Co., Ltd. SynapSense Corporation
20.0
Best Behaviour Holdings Limited
Intends to offer 3G and new generation cell phones; base station systems; core network equipment; and metal and non-metal moulds.
Nth Power LLC; Sequoia Capital; American River Ventures; GE Energy Financial Services; Emerald Technology Ventures AG; DFJ Frontier Undisclosed
Provides wireless instrumentation solutions that offer energy efficiency and carbon footprint reduction for data centers and enterprises.
10.0
Undisclosed
Designs, manufactures, and sells fiber optic cross-connection systems (FOCS) for telecommunications service providers.
Undisclosed
Provides Ethernet wide area network (WAN) services.
Harbinger Capital Partners LLC
Offers mobile satellite communication services.
50.5
Undisclosed
Provides voice and data networking solutions.
6.0
Undisclosed
Designs, develops, and distributes data networking solutions.
($mm) 2.0
1,550.0
5.0
07/23/2010
Iota, Inc.
0.8
07/21/2010
CALIENT Technologies, Inc.
07/21/2010
Last Mile, Inc.
3.0
07/20/2010
LightSquared Company
1,750.0
07/16/2010
MDNX plc
07/16/2010
Pie Digital, Inc
Provides GSM phone products that connect tablets and other devices through Bluetooth to GSM networks.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 35 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Clean Technology Amount Raised Date
Company
($mm)
Investors
Business Description
9/29/2010
Terra-Gen Power, LLC
$175.0
Undisclosed
Terra-Gen Power, LLC, through its subsidiaries, engages in the development, ownership, and operation of renewable energy projects focused on geothermal, wind, and solar generation in North America.
9/29/2010
Canatu Ltd.
$6.4
Infosto Mediat Oy; Inventure Oy; Tekes
Canatu Ltd., a nanotechnology company, produces and sells carbon nanotube and nanomaterial based optical and electronic components and offers solar cells.
9/29/2010
Entegra Ltd (BSE:532287)
NA
Undisclosed
Entegra Limited develops integrated renewable energy projects in India.
9/28/2010
Globo Plc (AIM:GBO)
$4.7
Undisclosed
Globo Plc provides information and communications technology services in Greece, the United Kingdom, Ireland, France, Belgium, Cyprus, Romania, Bulgaria, Spain, and Italy.
9/28/2010
Bhoruka Aluminium Ltd (BSE:506027)
NA
Undisclosed
Bhoruka Aluminium offers aluminum sections and extrusions to industrial, transportation, building and construction, electrical and electronics, interiors, and solar applications.
9/28/2010
Shinsung Holdings Corporation (KOSE:A011930)
$8.7
Undisclosed
Shinsung Holdings Corporation operates in the environment industry offering ice thermal storage systems, automotive emission analyzers, and cleanroom systems.
9/28/2010
Starwood SSM2 Canada Incorporated
NA
Starwood Energy Group Global, LLC
Starwood SSM2 Canada Incorporated engages in the construction of solar power plants.
9/28/2010
PVT Solar Inc.
$13.7
Sigma Partners; Khosla Ventures; Environment and Energy Investment Co. Ltd.
PVT Solar Inc. develops solar electric/solar thermal systems. PVT Solar Inc. is based in Berkeley, California.
9/28/2010
Direct Energie Neoen SAS
$27.2
Crédit Agricole Private Equity; Louis Dreyfus SAS
Direct Energie Neoen SAS engages in generating electricity by using solar, biomass, wind, and other alternative fuels.
9/28/2010
Surana Ventures Limited
$13.3
Undisclosed
Surana Ventures Limited manufactures solar and photovoltaic cells and offers system integration services.
9/26/2010
BrightSource Energy, Inc.
$30.0
Undisclosed
BrightSource Energy, Inc. designs, builds, finances, and operates utility-scale solar power projects.
9/26/2010
NSL Power Private Limited
$55.3
Undisclosed
NSL Power Private Limited focuses on the implementation of power plants based on renewable energies, such as wind, solar, biomass, hydel, and thermal energies, as well as other infrastructure projects in India.
9/23/2010
Titan Energy Systems Ltd.
$6.6
IFCI Venture Capital Funds Ltd.
Titan Energy Systems Ltd. designs, manufactures, and sells solar photovoltaic modules and specialty solar products.
9/23/2010
GlassPoint Solar, Inc.
$3.5
Chrysalix Energy
GlassPoint Solar, Inc. develops and sells solar industrial process heat generating equipment for enhanced oil recovery, municipal waste water treatment, and electrical power generation industries in the United States.
9/22/2010
Freescale Semiconductor Inc.
$750.0
Undisclosed
Freescale Semiconductor, Inc. engages in designing, developing, manufacturing, and marketing a range of semiconductor products worldwide.
9/22/2010
Acta SpA (AIM:ACTA)
$4.7
Undisclosed
Acta S.p.A engages in the research, development, and commercialization of platinum-free catalysts for renewable energy, carbon-free motoring, battery, and industrial waste applications in Italy.
9/22/2010
New Generation Biofuels Holdings, Inc. (N d Inc. CM NGBF) Ener1,
$0.5
Undisclosed
New Generation Biofuels Holdings holds an exclusive license to commercialize proprietary technology to manufacture alternative biofuels from vegetable oils and animal fats in North America, Central America, and the Caribbean.
$20.0
Ener1 Group, Inc.
Ener1, Inc. offers rechargeable lithium-ion batteries and battery systems for energy storage in the United States and South Korea.
9/21/2010
(NasdaqGM:HEV) 9/21/2010
Joint Stock Company Russian Space Systems
$32.0
Undisclosed
Joint Stock Company Russian Space Systems provides information on environmental and natural disasters.
9/20/2010
WHL Energy Limited (ASX:WHN)
NA
Undisclosed
WHL Energy Limited, a renewable energy company, focuses on the development and commercialization of energy assets that include wind energy, solar, biomass, and fossil fuels in Australia, the United Kingdom, and the United States.
9/16/2010
ORISOL Corporación Energética, S.A.
$10.5
Repsol YPF SA (CATS:REP)
ORISOL Corporación Energética, S.A. engages in the development, construction, implementation, and marketing of renewable energy projects, such as solar panel, wind, and biomass energies.
9/9/2010
Korea Hydro & Nuclear Power Co., Ltd.
$493.8
Undisclosed
Korea Hydro & Nuclear Power Co., Ltd. engages in the generation and sale of electricity in Korea. The company generates electricity through wind, hydro, and solar energy.
9/9/2010
Comtec Solar Systems Group Limited (SEHK:712)
$29.6
Undisclosed
Comtec Solar Systems Group Limited, an investment holding company, engages in the design, development, manufacture, and marketing of monocrystalline solar ingots and wafers.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 36 of 51
Monthly Technology Newsletter
2010
PRIVATE PLACEMENTS Select Clean Technology (Continued) Amount Raised Date
Company
($mm)
Investors
Business Description
9/2/2010
Ener1, Inc. (NasdaqGM:HEV)
$55.0
Goldman Sachs Asset Management, L.P.; Whitebox Advisors, LLC
Ener1, Inc. offers batteries for hybrid, plug-in hybrid, and electric vehicles, as well as for buses, trucks, and other alternative transportation vehicles.
9/2/2010
Nevada Geothermal Power Inc. (TSXV:NGP)
$10.1
Undisclosed
Nevada Geothermal Power Inc. operates as an emerging renewable energy producer focusing on the development of clean electrical power from high temperature geothermal resources primarily in the United States.
9/1/2010
Green Energy Technology Inc. (TSEC:3519)
$90.0
Undisclosed
Green Energy Technology Inc., Ltd. engages in the manufacture of multicrystalline solar wafers.
8/31/2010
Nuvosun, Inc
$20.0
Undisclosed
Nuvosun, Inc. develops and manufactures solar cells and modules. The company was founded in 2008 and is headquartered in Palo Alto, California.
8/25/2010
CaliSolar, Inc.
$10.0
Undisclosed
CaliSolar, Inc. engages in the development, manufacture, and sale of wafer-based solar cells to module manufacturers.
8/23/2010
Topcell Solar International Co., Ltd.
$11.3
UMC New Business Investment Corp.
Topcell Solar International Co., Ltd. designs and manufactures mono-crystalline and multicrystalline solar cells.
8/19/2010
Ceramic Fuel Cells (ASX:CFU)
$18.9
Undisclosed
Ceramic Fuel Cells Limited develops fuel cell technology to provide low-emission electricity from natural gas.
8/18/2010
Moser Baer Projects Pvt. Ltd.
$290.0
Blackstone Asia Advisors L.L.C.
Moser Baer Projects Pvt. Ltd. developms and operates solar power projects in India and Europe, as well as hydro power projects in India; and thermal power generation.
8/13/2010
Cool Planet Biofuels, Inc.
$8.0
North Bridge Venture Partners
Cool Planet Biofuels, Inc. develops technologies to produce fuel energy from cellulosic biomass.
8/9/2010
Hydrogenics Corp. (NasdaqGM:HYGS)
$8.5
CommScope, Inc. (NYSE:CTV)
Hydrogenics Corporation, together with its subsidiaries, designs, develops, and manufactures hydrogen generation products based on water electrolysis technology and fuel cell products based on proton exchange membrane technology.
8/5/2010
Aldis, Inc.
$6.0
Murphree Venture Partners; Battelle Ventures; Innovation Valley Partners; Meritus Ventures, L.P.
Aldis, Inc., a CleanTech company, develops, commercializes, and sells traffic and energy management technology and services to municipal partners.
8/4/2010
INFINIA CORP.
$27.0
Undisclosed
Infinia Corporation, an energy technology company, develops solar systems.
7/30/2010
Suncore Photovoltaics Co., Ltd.
$30.0
EMCORE Corporation (NasdaqGM:EMKR); Sanan Optoelectronics Co. Ltd. (SHSE:600703)
Suncore Photovoltaics Co., Ltd. intends to manufacture and market concentration photovoltaic (CPV) receivers, modules and systems for terrestrial solar power applications.
7/30/2010
GreenVolts, Inc.
$7.5
Oak Investment Partners
GreenVolts, Inc. is a utility-scale solar power company.
7/23/2010
AGL Energy Limited (ASX:AGK)
$300.0
Undisclosed
7/20/2010
Calpine Corp. (NYSE:CPN)
$1,090.6
Undisclosed
AGL Energy Limited operates as an integrated renewable energy company in Australia, Papua New Guinea, and Chile. It engages in the purchase and sale of gas and electricity; construction and operation of power generation and energy processing infrastructure; and f f Calpine Corporation, an independent wholesale power generation company, engages in the
7/20/2010
Borrego Solar Systems, Inc.
$20.0
East West Bank; U.S. Bank
Borrego Solar Systems, Inc. engages in the design, development, engineering, and installation of commercial, residential, and public sector grid-connected solar electric systems.
7/14/2010
Terra-Gen Power, LLC
$579.9
Undisclosed
Terra-Gen Power, LLC, through its subsidiaries, engages in the development, ownership, and operation of renewable energy projects focused on geothermal, wind, and solar generation in North America.
7/14/2010
SolarCity Corporation
$21.5
Draper Fisher Jurvetson; Mayfield Fund; DBL Investors SolarCity Corporation provides solar system design and installation services. It offers commercial powerstation, solarguard monitoring, and solar lease and financing services.
7/13/2010
Phoenix Solar Aktiengesellschaft (XTRA:PS4)
$27.2
Undisclosed
Phoenix Solar AG operates as a photovoltaic systems integrator primarily in the European Union.
7/12/2010
CleanTech Innovations, Inc. (OTCBB:EVCP)
$10.0
Undisclosed
CleanTech Innovations, Inc. manufactures and designs wind turbine, bellows expansion joints, pressure vessels, and fabricated metal specialty products.
7/9/2010
Enfinity Management BVBA
$24.0
Waterland Venture Capital Co. Ltd.
Enfinity Management BVBA engages in developing, financing, and implementing renewable energy projects.
7/9/2010
Premier Power Renewable Energy, Inc. (OTCBB:PPRW)
$8.0
Undisclosed
Premier Power Renewable Energy, Inc., through its subsidiaries, designs, engineers, and installs photovoltaic systems in North America, Spain, and Italy.
ownership and operation of natural gas-fired and geothermal power plants in North America.
Source: Capital IQ, VentureSource
Morgan Joseph LLC
Page 37 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics Application Software: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Amdocs Ltd.
DOX
$28.66
206.4
$5,916.0
$1,289.9
$0.0
$4,626.0
Ariba Inc.
ARBA
18.90
90.4
1,708.6
186.7
0.0
Art Technology Group Inc.
ARTG
4.11
158.1
649.8
145.1
Autodesk, Inc.
ADSK
31.97
227.3
7,266.2
1,086.6
BroadVision Inc.
BVSN
10.25
4.5
45.7
60.6
0.0
Callidus Software Inc.
CALD
4.27
31.4
133.9
28.6
0.5
ClickSoftware Technologies Ltd.
CKSW
6.56
30.2
198.4
42.0
0.0
156.4
CVG
10.45
124.1
1,296.6
129.7
165.6
1,332.5
CSG Systems International Inc.
CSGS
18.23
34.1
621.0
229.7
160.9
552.1
Descartes Systems Group Inc.
TSX:DSG
6.60
61.5
405.9
58.5
0.0
Glu Mobile, Inc.
GLUU
1.41
30.8
43.4
6.2
IncrediMail, Ltd.
MAIL
5.98
9.6
57.6
27.1
JDA Software Group Inc.
JDAS
25.36
41.8
1,060.0
Manhattan Associates, Inc.
MANH
29.35
22.1
647.9
Parametric Technology Corporation PMTC
Convergys Corporation
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
1.6x
1.5x
7.7x
1,521.9
4.3
4.1
45.7
0.0
504.7
2.7
2.4
0.0
6,179.6
3.4
3.1
(14.9)
NM
105.8
1.6
NTM EBITDA
LTM EPS
NTM EPS
11.4x
17.6x
12.1x
17.4
73.9
93.6
22.9
19.8
9.9
33.4
39.2
18.4
18.4
11.7
27.2
42.6
23.7
NA
NM
NA
NM
NM
NA
1.4
NM
25.9
NM
NM
NM
2.3
2.0
11.1
9.2
12.8
17.3
14.8
0.5
0.6
9.1
4.6
62.6
NM
9.8
1.1
1.0
5.5
4.0
8.4
20.1
8.2
347.4
4.1
3.2
19.6
11.9
49.8
29.6
14.3
9.1
46.3
0.6
0.7
NM
NA
NM
NM
NA
0.0
30.5
1.1
NA
NA
2.6
6.6
NA
146.2
272.5
1,186.3
2.4
1.8
10.1
6.8
16.6
92.7
13.3
117.7
0.0
530.2
1.9
1.7
9.7
9.4
11.9
20.5
24.1 17.9
NA
6.8x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
19.54
115.4
2,254.0
219.0
0.0
2,035.0
2.1
1.9
15.5
9.6
30.2
43.8
PROS Holdings, Inc.
PRO
9.28
26.1
242.5
60.8
0.0
181.7
2.6
2.4
38.1
18.0
52.8
NM
36.1
Saba Software Inc.
SABA
5.44
28.2
153.3
33.2
0.5
120.5
1.1
1.0
17.8
8.4
NM
NM
14.7
Synopsys Inc.
SNPS
24.77
148.6
3,679.9
1,209.8
0.0
2,470.1
1.8
1.7
8.9
6.8
13.6
16.2
15.8
$1,465.6
$282.1
$33.8
$1,217.3
2.1x
1.9x
16.9x
10.7x
29.1x
36.7x
17.6x
$634.4
$123.7
$0.0
$517.5
1.9x
1.8x
13.3x
9.4x
21.9x
25.1x
15.3x
High
$7,266.2
$1,289.9
$272.5
$6,179.6
4.3x
4.1x
45.7x
25.9x
73.9x
93.6x
36.1x
Low
$43.4
$6.2
$0.0
0.5x
0.6x
5.5x
4.0x
2.6x
6.6x
8.2x
Mean Median
($14.9)
Infrastructure Software: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
BMC Software Inc.
BMC
Citrix Systems, Inc.
CTXS
Microsoft Corporation
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: NTM SALES
LTM EBITDA
LTM EPS
NTM EPS
18.1x
14.2x
18.5
46.0
54.2
32.9
6.7
6.2
7.3
11.7
10.5
1.3
8.5
7.1
11.5
NM
22.9
2.1
1.9
16.9
11.6
25.2
51.3
41.1
4.4
3.7
10.2
8.0
12.6
21.4
13.5
1,164.0
2.2
2.1
8.6
6.5
12.0
32.6
13.2
33.6
1,883.5
2.6
2.4
11.5
8.1
15.8
31.0
16.9
3,611.0
1,832.0
41,333.9
3.7
3.3
12.1
8.8
14.0
21.5
15.6
$46,238.3
$7,538.3
$2,806.0
$41,506.1
3.3x
3.0x
12.7x
9.1x
17.4x
30.2x
20.1x
$7,230.8
$1,042.9
$33.6
$6,188.9
2.9x
2.6x
10.2x
8.0x
12.6x
26.3x
15.6x
High
$211,925.9
$36,559.0
$17,038.0
$181,338.9
6.9x
6.2x
30.0x
18.5x
46.0x
54.2x
41.1x
Low
$389.9
$111.6
$0.0
$278.3
1.3x
1.3x
6.7x
6.2x
7.3x
11.7x
10.5x
178.6
$7,230.8
$1,420.3
$378.4
$6,188.9
3.2x
NA
68.24
186.9
12,756.8
823.0
0.0
11,933.8
6.9
6.2
30.0
MSFT
24.49
8,653.6
211,925.9
36,559.0
5,972.0
181,338.9
2.9
2.7
Novell Inc.
NOVL
5.97
351.3
2,097.3
1,042.9
0.0
1,054.4
1.3
OPNET Technologies Inc.
OPNT
18.15
21.5
389.9
111.6
0.0
278.3
Oracle Corp.
ORCL
26.85
5,027.1
134,978.0
23,637.0
17,038.0
128,379.0
Progress Software Corp.
PRGS
33.10
43.3
1,433.2
269.2
0.0
Quest Software Inc.
QSFT
24.59
90.3
2,220.4
370.4
SAP AG
SAP
36.27
1,188.7
43,112.9
Mean Median
9.9x
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF:
12.1x
$40.48
LTM SALES
6.8x
LTM EBIT
Source: Capital IQ, NTM estimates from Capital IQ
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Morgan Joseph LLC
Page 38 of 51
Monthly Technology Newsletter
2010
On Demand Software and Services: ($ in millions, except per share amounts)
COMPANY NAME
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
TICKER
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBTIDA
$49.44
51.9
$2,566.7
$552.6
$225.9
$2,240.0
Constant Contact, Inc.
CTCT
21.43
29.0
621.0
116.0
0.0
DealerTrack Holdings, Inc.
TRAK
17.08
40.4
689.3
167.0
DemandTec, Inc.
DMAN
9.41
30.5
286.7
65.1
j2 Global Communications, Inc.
JCOM
23.79
45.6
1,084.2
223.3
Kenexa Corp.
KNXA
17.52
22.6
396.5
65.5
0.4
331.4
2.0
1.7
19.2
11.5
74.6
NM
26.3
LivePerson Inc.
LPSN
8.40
51.0
428.6
52.8
0.0
375.8
3.8
3.2
18.7
12.3
26.1
47.3
24.5
1,403.5
8.0
6.9
NM
N
Salesforce.com
23.57
63.7
1,501.7
98.2
34.5x
22.9x
505.1
3.3
2.6
70.8
0.7
523.0
2.3
2.0
0.0
221.7
2.8
2.5
0.0
860.9
3.5
3.3
NTM EPS
CNQR
Rightnow Technologies Inc.
6.7x
LTM EPS
Concur Technologies, Inc.
NetSuite Inc.
8.0x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
0.0
54.5x
NM
57.0x
17.4
NM
NM
39.3
22.3
10.1
NM
NM
26.0
NM
49.8
NM
NM
90.2
7.3
6.3
8.3
14.8
12.5
66.6
NM
NM
RNOW
19.70
32.0
631.1
99.4
0.0
531.7
3.2
2.8
37.1
17.0
81.4
98.9
35.3
CRM
111.80
129.9
14,522.8
742.3
475.8
14,256.3
9.8
8.2
84.9
42.2
NM
NM
84.9
NM
SuccessFactors, Inc.
SFSF
25.11
73.7
1,851.5
343.2
0.0
1,508.2
8.8
6.6
NM
NM
NM
NM
NM
Synchronoss Technologies, Inc.
SNCR
17.81
31.4
558.7
94.4
9.2
473.5
3.4
2.5
16.0
8.7
22.3
42.2
24.1
Taleo Corp.
TLEO
28.99
40.0
1,160.0
244.9
0.2
915.3
4.3
3.6
33.3
17.7
NM
NM
35.5
Ultimate Software Group, Inc.
ULTI
38.64
25.1
969.7
30.9
3.8
942.6
4.5
3.8
78.9
22.4
NM
NM
62.9
Vocus Inc.
VOCS
18.48
19.4
359.0
95.6
0.4
263.8
3.0
2.6
NM
15.0
NM
NM
28.1
Workstream Inc.
WSTM
0.02
811.7
17.0
0.4
22.1
38.7
2.3
NA
NM
NA
NM
NM
NA
$1,727.8
$187.0
$46.2
$1,587.0
4.6x
3.9x
38.5x
22.9x
44.5x
50.8x
42.0x
$660.2
$98.8
$0.3
$527.4
3.4x
3.2x
33.3x
17.2x
40.3x
44.7x
35.3x
High
$14,522.8
$742.3
$475.8
$14,256.3
9.8x
8.2x
84.9x
66.6x
81.4x
98.9x
90.2x
Low
$17.0
$0.4
$0.0
$38.7
2.0x
1.7x
7.3x
6.3x
8.3x
14.8x
12.5x
Mean Median
Open Source Software: COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
Red Hat Inc.
RHT
$41.00
188.7
$7,737.1
$975.2
$0.0
$6,761.9
Sourcefire, Inc.
FIRE
28.84
26.9
775.7
125.4
0.0
650.2
Geeknet, Inc.
GKNT
1.98
60.7
120.1
28.0
0.0
92.1
1.3
Renewable Energy Generatio WIND
0.51
103.3
52.1
28.5
0.0
23.7
3.7
$2,171.2
$289.3
$0.0
$1,882.0
4.7x
$447.9
$76.9
$0.0
$371.2
4.6x
High
$7,737.1
$975.2
$0.0
$6,761.9
Low
$52.1
$28.0
$0.0
$23.7
Mean Median
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
8.3x
7.2x
39.4x
24.2x
54.2x
90.8x
49.7x
5.5
4.4
38.7
22.3x
47.6
40.9
48.4
NA
NM
70.5x
NM
NM
NA
NA
46.0
NA
NM
NM
NA
5.8x
41.4x
39.0x
50.9x
65.8x
49.0x
5.8x
39.4x
24.2x
50.9x
65.8x
49.0x
8.3x
7.2x
46.0x
70.5x
54.2x
90.8x
49.7x
1.3x
4.4x
38.7x
22.3x
47.6x
40.9x
48.4x
Business Intelligence and Analytic Software: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Actuate Corporation
ACTU
$5.15
45.4
$233.8
$63.6
$40.0
$210.2
Keynote Systems Inc.
KEYN
11.62
14.5
168.9
60.4
0.0
108.5
MICROS Systems, Inc.
MCRS
42.33
79.7
3,372.7
545.3
1.4
2,828.9
NICE Systems Ltd.
NICE
0.00
61.8
0.0
339.0
0.0
Mean
$943.8
$252.1
Median
$201.3
$201.3
High
$3,372.7
Low
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS 34.0x
NTM EPS
1.8x
1.5x
13.4x
5.8x
17.8x
1.4
1.3
14.6
7.8x
47.1
NM
19.5
10.4x
3.1
2.8
15.3
12.7x
16.8
30.1
24.2
(339.0)
NM
NM
NM
NM
NM
0.0
0.0
$10.4
$702.1
2.1x
1.9x
14.4x
8.8x
27.3x
21.3x
13.5x
$0.7
$159.3
1.8x
1.5x
14.6x
7.8x
17.8x
30.1x
15.0x
$545.3
$40.0
$2,828.9
3.1x
2.8x
15.3x
12.7x
47.1x
34.0x
24.2x
$0.0
$60.4
$0.0
($339.0)
1.4x
1.3x
13.4x
5.8x
16.8x
0.0x
0.0x
Communications Software: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Nuance Communications, Inc.
NUAN
$15.64
279.8
$4,375.6
$492.1
$860.1
$4,743.6
Openwave Systems Inc.
OPWV
1.70
83.5
142.0
106.1
0.0
PGI
7.08
60.1
425.4
42.3
$1,647.7 $425.4
High Low
Premiere Global Services, Inc.
Mean Median
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
4.4x
3.7x
35.8
0.2
266.5
649.6
$213.5
$375.5
$106.1
$266.5
$4,375.6
$492.1
$142.0
$42.3
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
21.8x
10.0x
73.9x
NM
0.2
7.4
2.5x
NM
NM
12.3x NM
1.1
1.1
6.8
5.7x
11.1
30.8
15.4
$1,809.7
1.9x
1.7x
12.0x
6.1x
42.5x
30.8x
13.9x
$649.6
1.1x
1.1x
7.4x
5.7x
42.5x
30.8x
13.9x
$860.1
$4,743.6
4.4x
3.7x
21.8x
10.0x
73.9x
30.8x
15.4x
$0.0
$35.8
0.2x
0.2x
6.8x
2.5x
11.1x
30.8x
12.3x
Source: Capital IQ, NTM estimates from Capital IQ
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Morgan Joseph LLC
Page 39 of 51
Monthly Technology Newsletter
2010
Security Software: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
Blue Coat Systems Inc.
BCSI
24.06
42.7
1,027.9
261.6
77.5
843.8
1.7
1.7
9.1
7.0
13.1
21.3
15.3
Check Point Software Technologies Ltd.
CHKP
36.93
207.6
7,667.4
983.2
0.0
6,684.2
6.6
6.0
12.5
10.4
14.1
19.4
15.1
EMC Corporation
EMC
20.31
2,053.5
41,706.9
6,800.0
3,156.4
38,063.4
2.5
2.2
12.8
8.2
17.9
28.9
15.8
ID
11.73
93.2
1,093.0
2.8
469.3
1,559.5
2.4
2.1
22.1
14.9
49.6
NM
NM
MFE
47.26
154.0
7,278.7
788.4
0.0
6,490.3
3.2
3.0
15.1
9.2
25.5
44.8
17.6
L-1 Identity Solutions Inc. McAfee, Inc. Sourcefire, Inc.
FIRE
28.84
27.7
799.9
125.4
0.0
674.5
5.7
4.5
40.2
23.1
49.4
40.9
48.4
Symantec Corporation
SYMC
15.13
789.3
11,942.7
2,739.0
1,897.0
11,100.7
1.9
1.8
6.2
5.6
10.0
15.4
11.7
VeriSign Inc.
VRSN
31.74
174.1
5,526.9
1,337.3
575.9
4,765.6
4.5
NA
10.7
12.4
13.1
27.6
25.6
Websense, Inc.
WBSN
17.74
42.5
753.3
82.2
70.1
741.2
2.3
2.2
13.5
6.6
70.1
NM
14.0
Mean
$8,644.1
$1,457.8
$694.0
$7,880.4
3.4x
2.9x
15.8x
10.8x
29.2x
28.3x
20.4x
Median
$5,526.9
$788.4
$77.5
$4,765.6
2.5x
2.2x
12.8x
9.2x
17.9x
27.6x
High
$41,706.9
$6,800.0
$3,156.4
$38,063.4
6.6x
6.0x
40.2x
23.1x
70.1x
44.8x
48.4x
Low
$753.3
$2.8
$0.0
$674.5
1.7x
1.7x
6.2x
5.6x
10.0x
15.4x
11.7x
15.5x
Search: ($ in millions, except per share amounts)
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
317.3
$166,817.6
$30,059.0
$0.0
$136,758.6
1,401.1
19,853.0
2,759.6
140.1
Mean
$93,335.3
$16,409.3
Median
$93,335.3
$16,409.3
High
$166,817.6
Low
$19,853.0
COMPANY NAME
TICKER
Google Inc.
GOOG
$525.79
Yahoo! Inc.
YHOO
14.17
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
5.2x
4.5x
12.6x
17,233.4
2.6
NA
13.0
$70.0
$76,996.0
3.9x
4.5x
12.8x
$70.0
$76,996.0
3.9x
4.5x
12.8x
$30,059.0
$140.1
$136,758.6
5.2x
4.5x
$2,759.6
$0.0
$17,233.4
2.6x
4.5x
LTM SALES
NTM SALES
NTM EBITDA 10.1x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
14.5x
22.8x
18.2x
26.7
23.2
21.1
10.0x
20.6x
23.0x
19.7x
10.0x
20.6x
23.0x
19.7x
13.0x
10.1x
26.7x
23.2x
21.1x
12.6x
9.9x
14.5x
22.8x
18.2x
9.9x
Internet Commerce: ($ in millions, except per share amounts)
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
COMPANY NAME
TICKER
Amazon.com Inc.
AMZN
$157.06
eBay Inc.
EBAY
444.5
$69,820.4
$5,108.0
$132.0
$64,844.4
24.40
1,299.0
31,695.8
4,897.9
0.0
ENTERPRISE VALUE AS A MULTIPLE OF: LTM EBITDA
NTM EBITDA
2.3x
NA
37.7x
23.0x
26,797.9
3.0
2.9
9.7
8.1x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
44.9x
65.0x
53.6x
13.6
12.8
14.7
Ediets.com Inc.
DIET
0.87
29.0
25.3
3.0
0.1
22.3
1.2
0.9
NM
NM
NM
NM
NM
eHealth, Inc.
EHTH
12.91
23.3
301.3
141.3
0.0
160.1
1.1
1.0
5.7
5.3x
6.2
21.8
21.1
Expedia Inc.
EXPE
28.23
290.0
8,186.7
1,127.1
895.4
7,954.9
2.6
2.3
10.4
7.9x
11.7
21.1
NA
GSI Commerce Inc.
GSIC
24.70
60.2
1,487.1
63.7
154.8
1,578.2
1.4
1.1
20.1
10.8x
NM
NM
NM
Liquidity Services, Inc.
LQDT
16.01
27.1
434.4
69.2
0.0
365.2
1.3
NA
12.8
9.3x
15.4
43.4
NA
Rovi Corporation
ROVI
50.41
104.2
5,252.1
460.0
524.2
5,316.3
10.3
9.5
27.9
18.9x
59.5
48.2
23.6
MELI
72.18
44.1
3,184.6
42.8
0.2
3,142.0
15.9
11.8
41.7
31.9x
44.1
75.1
NA
TSX: PTS
0.73
149.8
109.4
22.4
0.0
87.0
1.1
0.8
46.1
15.5x
57.9
50.1
NA
PCLN
348.34
45.6
15,877.7
1,220.2
516.0
15,173.5
5.8
4.6
24.5
16.9x
26.2
31.4
26.6
Tree.Com, Inc.
TREE
6.54
10.9
71.3
73.7
91.1
88.7
0.5
NA
NM
12.5x
NM
NM
NM
United Online, Inc.
UNTD
5.72
85.0
486.0
94.9
276.6
667.6
0.7
0.7
3.7
3.8x
5.4
9.0
6.0
$10,533.2
$1,024.9
$199.3
$9,707.5
3.6x
3.6x
21.8x
13.7x
28.5x
37.8x
24.3x
$1,487.1
$94.9
$91.1
$1,578.2
1.4x
1.7x
20.1x
11.6x
20.8x
37.4x
22.3x
High
$69,820.4
$5,108.0
$895.4
$64,844.4
15.9x
11.8x
46.1x
31.9x
59.5x
75.1x
53.6x
Low
$25.3
$3.0
$0.0
$22.3
0.5x
0.7x
3.7x
3.8x
5.4x
9.0x
6.0x
Mercadolibre, Inc. Points International Ltd. priceline.com Incorporated
Mean Median
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 40 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Internet Media: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA 4.0x
NTM EBITDA
Answers Corporation
ANSW
$6.14
8.0
$48.9
$25.2
$0.1
$23.7
1.1x
1.2x
4.3x
CoStar Group Inc.
CSGP
48.71
20.7
1,008.5
200.6
0.0
808.0
3.7
3.6
20.3
17.3
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT 5.0x
LTM EPS
NTM EPS
48.4x
14.0x
31.9
70.6
40.3
Dice Holdings, Inc.
DHX
8.48
62.9
533.7
40.4
29.7
522.9
4.7
3.8
12.8
10.1
20.6
40.9
24.3
Digital River Inc.
DRIV
34.04
39.6
1,349.3
348.5
8.8
1,009.6
2.6
2.9
17.0
14.0
33.4
44.4
34.8
DivX, Inc.
DIVX
9.53
33.2
316.5
143.2
0.0
173.2
2.2
1.9
NM
31.8
NM
NM
35.5
IAC/InterActiveCorp.
IACI
26.27
104.6
2,747.7
1,467.0
95.8
1,376.6
0.9
0.8
10.5
5.3
31.9
NM
24.8
Internet Brands, Inc.
INET
13.28
46.3
615.0
58.7
0.0
556.3
5.2
4.6
13.8
11.1
24.3
41.0
41.1 46.8
LoopNet, Inc.
LOOP
11.84
39.6
468.5
100.5
0.0
368.0
4.9
4.6
20.8
12.8
25.1
40.9
Monster Worldwide, Inc.
MWW
12.96
129.8
1,682.4
297.0
50.0
1,435.4
1.7
1.5
45.0
12.7
NM
NM
NM
Move, Inc.
MOVE
2.23
156.5
349.0
156.5
0.0
192.5
1.0
1.0
71.2
7.8
NM
NM
38.6
Netflix, Inc.
NFLX
162.16
52.4
8,490.4
279.1
237.2
8,448.4
4.5
3.4
30.6
22.4
35.8
65.9
50.1
PRIMEDIA Inc.
PRM
3.80
44.2
168.0
4.4
218.8
382.4
1.6
NA
5.9
6.3
7.9
8.3
NA
Shutterfly, Inc.
SFLY
26.00
27.3
709.1
159.0
0.0
550.1
2.1
1.8
16.3
9.6
56.3
NM
75.0
Spark Networks, Inc.
LOV
3.22
20.6
66.3
9.7
0.0
56.6
1.3
NA
6.5
NA
7.8
NM
NA
TTGT
5.25
42.6
223.6
70.5
0.0
153.2
1.7
1.5
39.1
6.9
NM
NM
20.9
The Knot, Inc.
KNOT
9.13
34.0
310.8
124.3
0.0
186.5
1.7
1.6
14.5
14.9
34.5
NM
NM
TheStreet.com, Inc.
TSCM
2.81
31.7
89.0
38.2
0.0
50.8
0.8
0.8
29.6
11.3
NM
NM
NA
ValueClick, Inc.
VCLK
13.08
81.8
1,070.0
171.7
0.0
898.3
2.2
2.1
7.9
7.2
10.7
17.4
20.0
WebMD Health Corp.
WBMD
49.87
58.3
2,905.8
534.7
112.4
2,483.5
5.2
4.5
27.2
13.9
33.2
43.5
56.0
ZIPR
2.89
20.5
59.3
39.9
0.0
19.4
0.1
0.1
NM
NM
NM
NM
NM
$1,160.6
$213.5
$37.6
$984.8
2.5x
2.3x
21.8x
12.2x
25.6x
42.1x
37.3x
$501.1
$133.8
$0.0
$452.7
1.9x
1.9x
16.6x
11.2x
28.5x
42.2x
37.1x
High
$8,490.4
$1,467.0
$237.2
$8,448.4
5.2x
4.6x
71.2x
31.8x
56.3x
70.6x
75.0x
Low
$48.9
$4.4
$0.0
$19.4
0.1x
0.1x
4.0x
4.3x
5.0x
8.3x
14.0x
TechTarget, Inc.
zipRealty Inc.
Mean Median
Internet Gaming and Mobile Content: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Activision Blizzard, Inc.
ATVI
$10.82
1,268.3
$13,723.2
$2,846.0
$0.0
$10,877.2
Electronic Arts Inc.
ERTS
16.45
326.4
5,368.4
1,730.0
0.0
3,638.4
GameLoft SA
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
2.4x
NA
10.4x
NA
14.1x
42.0x
NA
1.0
NA
NM
8.5
NM
NM
21.5
ENXTPA:GFT
3.58
74.8
267.8
25.3
0.1
242.5
1.8
NA
13.9
NA
20.8
NA
NA
Glu Mobile, Inc.
GLUU
1.41
30.3
42.7
6.2
9.1
45.6
0.6
0.7
NM
NM
NM
NM
NA
RealNetworks Inc.
RNWK
3.26
134.8
439.6
313.2
0.0
126.3
0.3
0.3
NM
18.6
NM
NM
NM
Take-Two Interactive Software Inc.
TTWO
10.14
83.2
843.5
232.1
102.2
713.6
0.5
NA
13.9
NA
20.9
NM
NA
THQI
4.02
67.5
271.4
216.0
100.0
155.4
0.2
NA
0.7
NA
NM
NM
NA
$2,993.8
$767.0
$30.2
$2,257.0
1.0x
0.5x
9.7x
13.6x
NM
NM
$439.6
$232.1
$0.1
$242.5
0.6x
0.5x
9.7x
13.6x
NM
NM
21.5x
High
$13,723.2
$2,846.0
$102.2
$10,877.2
2.4x
0.7x
13.9x
18.6x
NM
NM
21.5x
Low
$42.7
$6.2
$0.0
$45.6
0.2x
0.3x
0.7x
8.5x
NM
NM
21.5x
THQ Inc.
Mean Median
21.5x
Internet Infrastructure: ($ in millions, except per share amounts)
COMPANY NAME Akamai Technologies Inc.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
AKAM
$50.18
171.3
$8,594.8
$503.6
$63.6
$8,154.8
Cogent Communications Group Inc.
CCOI
EarthLink Inc.
ELNK
9.47
44.6
9.09
107.0
422.1
52.4
178.1
972.8
561.5
236.2
Equinix, Inc.
EQIX
Internap Network Services Corp.
INAP
102.35 4.91
39.4
4,030.0
717.5
50.8
249.2
78.8
iPass Inc.
IPAS
1.22
62.2
75.9
Level 3 Communications Inc.
LVLT
0.94
1,641.9
Limelight Networks, Inc. NaviSite Inc.
LLNW
5.89
NAVI
3.34
SAVVIS Inc.
SVVS
Terremark Worldwide, Inc. United Online, Inc. VMware, Inc.
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
8.8x
7.5x
547.8
2.2
647.4
1.0
2,059.4
5,372.0
40.4
210.9
32.9
0.0
1,539.0
442.0
85.0
500.7
37.3
124.6
21.08
54.4
TMRK
10.34
UNTD
5.72
VMW
84.94
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
2.0
8.4
6.9
67.7
NM
NM
1.2
3.0
3.3
3.3
3.5
11.4
5.3
3.7
13.3
8.7
26.2
87.7
56.3
0.8
0.9
5.9
5.4
NM
NM
NM
43.1
0.3
0.3
NM
22.9
NM
NM
NM
6,264.0
7,361.0
2.0
2.0
9.4
8.9
NM
NM
NM
82.8
0.3
418.2
2.9
2.1
NM
17.6
NM
NM
NM
7.8
58.6
175.4
1.2
1.3
5.6
6.3
19.0
NM
NM
1,146.3
118.7
734.3
1,761.9
2.0
1.8
9.5
7.1
68.4
NM
NM
65.0
672.2
52.3
517.4
1,137.2
3.7
3.1
16.0
10.3
37.5
NM
NM
85.0
486.0
94.9
276.6
667.6
0.7
0.7
3.7
3.8
5.4
9.0
6.0
402.8
34,212.6
2,779.8
450.0
31,882.7
13.3
10.5
75.1
29.0
NM
NM
56.2
$4,078.9
$425.0
$836.8
$4,490.8
3.4x
2.9x
15.7x
11.3x
32.4x
40.5x
32.8x
$672.2
$94.9
$236.2
$667.6
2.0x
2.0x
9.4x
8.7x
28.9x
35.4x
34.0x
High
$34,212.6
$2,779.8
$6,264.0
$31,882.7
13.3x
10.5x
75.1x
29.0x
68.4x
87.7x
56.3x
Low
$75.9
$7.8
$0.0
$43.1
0.3x
0.3x
3.0x
3.3x
3.3x
3.5x
6.0x
Median
61.8x
NTM EPS
16.2x
Mean
31.6x
LTM EPS
22.4x
34.0x
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 41 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Optical Components: ($ in millions, except per share amounts)
COMPANY NAME EMCORE Corporation Enablence Technologies Inc. IPG Photonics Corporation
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
EMKR
0.80
81.7
65.5
18.4
10.4
57.4
0.3
NA
NM
NA
NM
NM
NA
TSXV: ENA
0.60
254.7
152.8
6.9
18.9
164.9
2.8
2.1
NM
NM
NM
NM
NM
IPGP
24.14
45.7
1,102.9
90.7
25.7
1,038.0
4.7
3.5
21.8
11.4
38.5
59.5
24.7
JDS Uniphase Corp.
JDSU
12.39
218.1
2,701.8
567.6
301.8
2,436.0
1.8
1.4
23.9
9.7
NM
NM
18.2
MRV Communications Inc.
MRVC
1.36
157.6
214.3
68.9
51.6
197.1
0.4
0.4
6.7
4.5
10.4
7.1
10.9
Oplink Communications Inc.
OPLK
19.80
20.8
410.8
150.3
0.0
260.5
1.9
1.3
12.3
6.2
23.9
38.6
12.4
Opnext, Inc.
OPXT
1.57
88.3
138.6
105.9
48.0
80.7
0.3
0.2
NM
NA
NM
NM
NM
Mean
$683.8
$144.1
$65.2
$604.9
1.7x
1.5x
16.2x
8.0x
24.3x
35.1x
16.5x
Median
$214.3
$90.7
$25.7
$197.1
1.8x
1.4x
17.0x
8.0x
23.9x
38.6x
15.3x
High
$2,701.8
$567.6
$301.8
$2,436.0
4.7x
3.5x
23.9x
11.4x
38.5x
59.5x
24.7x
Low
$65.5
$6.9
$0.0
$57.4
0.3x
0.2x
6.7x
4.5x
10.4x
7.1x
10.9x
Wireline Telecom: ($ in millions, except per share amounts)
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF:
COMPANY NAME
TICKER
Acme Packet, Inc.
APKT
$37.94
58.2
$2,209.9
$217.3
$0.0
$1,992.6
10.9x
ADC Telecommunications Inc.
ADCT
12.67
96.6
1,224.3
630.2
666.1
1,260.2
ADTRAN Inc.
LTM SALES
NTM SALES
LTM EBITDA
8.3x
42.7x
1.1
1.0
12.3
NTM EBITDA 22.6x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
50.1x
79.9x
49.1x
9.2
36.7
23.7
17.9 21.1
ADTN
35.30
62.8
2,218.4
179.9
47.8
2,086.2
3.9
3.4
16.1
12.7
17.5
26.0
LSE:ALU
1.18
35.9
42.1
5.6
14.9
51.5
0.6
NA
6.1
NA
9.7
18.9
NA
AudioCodes Ltd.
AUDC
3.90
40.3
157.0
54.5
19.1
121.6
0.9
0.8
11.1
7.1
18.5
29.9
12.6
CIENA Corp.
CIEN
15.57
92.0
1,433.0
470.4
1,174.6
2,137.2
2.1
1.2
NM
39.7
NM
NM
NM
CommScope, Inc.
CTV
23.74
93.8
2,226.6
577.3
1,385.5
3,034.7
1.0
0.9
6.2
5.9
10.3
22.9
11.6
Alumasc Group plc
Infinera Corp.
INFN
11.67
96.9
1,130.5
267.9
0.0
862.6
2.3
1.7
NM
58.1
NM
NM
31.5
Juniper Networks, Inc.
JNPR
30.35
525.4
15,947.1
2,223.4
0.0
13,723.7
3.8
3.2
16.7
11.5
20.2
40.7
22.7
Occam Networks Inc.
OCNW
7.83
20.5
160.6
41.9
0.0
118.7
1.3
1.2
NM
NA
NM
NM
35.6
Sonus Networks, Inc.
SONS
3.53
274.3
968.4
353.2
0.0
615.2
2.5
2.5
32.0
37.7
68.5
NM
NA
Tekelec
TKLC
12.96
67.3
872.6
226.3
0.0
646.4
1.4
1.5
5.8
9.7
7.7
18.3
16.9
7.45
386.2
2,877.1
1,417.5
223.1
1,682.7
1.1
1.0
5.9
4.8
8.1
14.4
13.9
43.6
NA
29.7
0.0
NA
NA
NA
NA
NA
NA
NA
NA
$559.3
$532.6
$2,221.2
2.4x
2.2x
15.1x
19.9x
24.8x
27.5x
23.3x
Tellabs Inc.
TLAB
Veraz Networks, Inc.
VRAZ
(Invalid Identifier)
Mean
$2,247.7
Median
$1,177.4
$267.9
$14.9
$1,471.4
1.4x
1.4x
11.7x
11.5x
18.5x
23.3x
19.5x
High
$15,947.1
$2,223.4
$4,458.0
$13,723.7
10.9x
8.3x
42.7x
58.1x
68.5x
79.9x
49.1x
Low
$0.0
$5.6
$0.0
$51.5
0.6x
0.8x
5.8x
4.8x
7.7x
0.0x
11.6x
LTM SALES
NTM SALES
Storage/Enterprise: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM EBITDA
Brocade Communications Systems, I BRCD
$5.86
440.6
$2,581.8
$295.7
$957.5
$3,243.5
1.6x
1.5x
EMC Corporation
20.31
2,039.8
41,428.8
6,800.0
3,156.4
37,785.2
2.4
2.2
12.7
Emulex Corp.
EMC
8.3x
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
5.6x
17.2x
21.5x
11.7x
8.2x
17.7
28.9
15.8 24.1
ELX
10.44
81.0
845.5
294.8
0.0
550.7
1.4
1.3
10.5
7.5x
91.1
36.4
Fujitsu Ltd.
TSE:6702
586.00
2,066.0
1,210,649.9
406,236.0
634,005.0
1,438,418.9
0.3
NA
3.7
NA
10.2
10.5
NA
Hitachi Ltd.
TSE:6501
365.00
4,414.2
1,611,166.6
708,347.0
3,092,285.0
3,995,104.6
0.4
0.4
4.5
4.5x
11.7
23.9
13.9
LSI
4.55
653.2
2,971.9
669.9
0.0
2,302.0
0.9
0.9
6.7
7.0x
30.8
20.3
10.1
Mellanox Technologies, Ltd.
MLNX
19.64
32.3
634.1
230.7
0.7
404.0
2.8
2.5
12.1
20.9x
14.0
34.6
23.8
NetApp, Inc.
NTAP
49.79
338.9
16,874.1
3,920.9
1,113.4
14,066.6
3.3
NA
18.8
NA
24.1
36.8
NA
QLogic Corp.
QLGC
17.64
114.6
2,021.6
348.6
0.0
1,673.0
2.9
2.8
10.6
8.3x
14.1
31.3
13.6
16.2x
LSI Corporation
Mean
$321,019.4
$125,238.2
$414,613.1
$610,394.3
1.8x
1.6x
9.8x
8.9x
25.7x
27.1x
$2,971.9
$669.9
$957.5
$3,243.5
1.6x
1.5x
10.5x
7.5x
17.2x
28.9x
13.9x
High
$1,611,166.6
$708,347.0
$3,092,285.0
$3,995,104.6
3.3x
2.8x
18.8x
20.9x
91.1x
36.8x
24.1x
Low
$634.1
$230.7
$0.0
$404.0
0.3x
0.4x
3.7x
4.5x
10.2x
10.5x
10.1x
Median
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 42 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Semiconductor Equipment: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Advanced Energy Industries, Inc AEIS
$13.06
42.0
$548.9
$128.9
$0.0
$420.0
AMAT
11.68
1,343.1
15,687.7
1.0
206.3
ATMI Inc.
ATMI
14.86
31.4
466.3
124.0
Brooks Automation Inc.
BRKS
6.71
64.6
433.1
104.1
Cabot Microelectronics Corp.
CCMP
32.18
23.6
758.4
Entegris, Inc.
ENTG
4.67
130.0
Lam Research Corporation
LRCX
41.85
127.3
MKS Instruments Inc.
MKSI
17.98
49.5
890.1
323.4
Novellus Systems, Inc.
NVLS
26.58
97.0
2,578.3
555.0
Ultra Clean Holdings Inc.
UCTT
8.62
21.5
185.0
23.1
$2,748.0 $682.7
High Low
Applied Materials Inc.
Mean Median
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
1.4x
0.7x
15,893.0
1.9
NA
0.0
342.3
1.0
0.0
329.0
0.7
250.1
1.6
509.9
607.0
75.3
26.3
5,325.4
826.5
22.6 13.0 100.1 18.1
180.0
$241.1
$38.8
$126.4
$15.5
$15,687.7
$826.5
$185.0
$1.0
LTM EBITDA
NTM EBITDA
16.9x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
4.4x
27.9x
63.5x
7.9x
9.6
6.1
11.8
25.9
NA
NA
4.9
5.0
8.1
15.8
NA
0.5
10.3
3.0
25.6
21.1
6.0
1.3
1.2
5.3
5.8
7.1
16.2
15.1
558.0
1.0
NA
4.8
3.7
7.9
15.9
7.0
4,521.6
2.1
1.5
8.7
5.6
10.0
15.5
8.0
579.7
0.9
NA
4.6
2.9
5.2
83.4
NA
2,123.3
2.1
1.4
9.9
5.1
12.4
18.9
7.9
0.6
0.4
13.2
5.0
15.6
18.1
7.5
$2,545.7
1.3x
1.0x
8.8x
4.7x
13.2x
NM
$533.9
1.2x
1.0x
9.1x
5.0x
10.9x
NM
7.9x
$206.3
$15,893.0
2.1x
1.5x
16.9x
6.1x
27.9x
83.4x
15.1x
$0.0
$180.0
0.6x
0.4x
4.6x
2.9x
5.2x
15.5x
6.0x
8.5x
Memory/Programmable: ($ in millions, except per share amounts)
COMPANY NAME Advanced Micro Devices, Inc.
TICKER AMD
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
$7.11
674.6
$4,796.2
$1,900.0
$2,580.0
$5,476.2
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES 0.9x
NTM SALES 0.9x
LTM EBITDA 5.3x
NTM EBITDA 8.6x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT 19.8x
LTM EPS 4.0x
NTM EPS 29.7x
Intel Corporation
INTC
19.20
5,568.0
106,905.6
18,303.0
2,406.0
91,008.6
2.2
2.1
4.9
4.7x
6.6
11.5
Altera Corp.
ALTR
30.16
307.2
9,265.9
2,067.2
500.0
7,698.7
5.1
NA
13.0
8.0x
13.7
18.5
10.4 NA
Atmel Corporation
ATML
7.96
461.5
3,673.8
552.2
83.7
3,205.2
2.3
NA
28.6
9.2x
69.3
NM
NA
GSI Technology Inc.
GSIT
5.74
27.7
159.2
43.1
0.0
116.1
1.5
NA
6.9
NA
8.2
12.7
NA
Lattice Semiconductor Corporation
LSCC
4.75
116.9
555.2
212.0
0.0
343.2
1.4
NA
7.8
5.3x
11.3
18.9
NA
Microsemi Corp.
MSCC
1,234.3
2.6
NA
15.8
7.1x
29.3
64.3
17.12
83.1
1,422.5
188.2
0.0
MU
7.21
994.2
7,168.0
2,313.0
2,369.0
7,224.0
1.0
0.7
2.3
2.0x
6.1
4.6
4.7
NetLogic Microsystems Inc.
NETL
27.58
63.5
1,751.3
201.1
6.7
1,556.9
5.3
3.8
53.6
13.9x
NM
NM
19.1
SanDisk Corp.
SNDK
36.65
233.1
8,542.1
2,427.6
963.4
7,078.0
1.6
NA
4.7
4.8x
5.5
8.2
NM
Xilinx Inc.
XLNX
26.64
258.8
6,895.3
1,543.7
849.5
6,201.1
3.0
2.5
9.4
6.5x
10.4
15.4
10.5
$887.1
13.8x
Micron Technology Inc.
Mean
$13,739.5
$11,922.0
2.4x
2.0x
7.0x
18.0x
17.6x
14.9x
$4,796.2
$1,543.7
$500.0
$5,476.2
2.2x
2.1x
7.8x
6.8x
10.8x
12.7x
10.5x
High
$106,905.6
$18,303.0
$2,580.0
$91,008.6
5.3x
3.8x
53.6x
13.9x
69.3x
64.3x
29.7x
Low
$159.2
$43.1
$0.0
$116.1
0.9x
0.7x
2.3x
2.0x
5.5x
4.0x
4.7x
Median
$2,704.6
NA
Analog: ($ in millions, except per share amounts)
COMPANY NAME Analog Devices Inc.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ADI
$31.38
Diodes Incorporated
DIOD
17.09
44.3
Exar Corp.
EXAR
5.99
44.2
IFX
5.08
1,086.7
5,521.7
Infineon Technologies AG Intersil Corporation
298.1
$9,354.0
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES 2.8x
NTM SALES 2.5x
LTM EBITDA
$2,508.3
$395.8
$7,241.5
8.2x
757.8
245.6
131.3
643.4
1.2
1.0
5.5
264.8
208.2
17.5
74.1
0.5
0.5
NM
1,523.0
406.0
4,404.7
1.1
NA
6.0
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EPS
NTM EPS
9.5x
16.0x
12.2x
3.9
9.5
14.7
9.3
8.4
NM
NM
NM
NA
12.5
30.1
NA
6.7x
LTM EBIT
ISIL
11.69
123.8
1,447.5
339.5
300.0
1,408.0
1.9
1.5
9.4
7.5
12.6
NM
10.5
Maxim Integrated Products Inc.
MXIM
18.51
298.3
5,522.1
826.5
300.0
4,995.6
2.5
2.1
8.0
6.0
10.9
45.9
12.8
National Semiconductor Corporation
NSM
12.77
239.6
3,059.3
778.7
1,041.3
3,321.9
2.2
2.1
6.2
6.2
7.5
11.6
STMicroelectronics NV
STM
5.62
881.3
4,949.1
2,887.0
2,029.0
4,091.1
0.4
0.4
3.0
2.4
64.9
34.2
7.8
Texas Instruments Inc.
TXN
27.14
1,195.2
32,437.6
2,305.0
0.0
30,132.6
2.4
2.1
6.5
5.6
8.0
13.1
10.9
Mean
$7,034.9
$1,291.3
$513.4
$6,257.0
1.7x
1.5x
6.6x
5.9x
16.9x
23.7x
10.5x
Median
$4,949.1
$826.5
$300.0
$4,091.1
1.9x
1.8x
6.4x
6.1x
10.2x
16.0x
10.5x
High
$32,437.6
$2,887.0
$2,029.0
$30,132.6
2.8x
2.5x
9.4x
8.4x
64.9x
45.9x
12.8x
Low
$264.8
$208.2
$0.0
$74.1
0.4x
0.4x
3.0x
2.4x
7.5x
11.6x
7.8x
10.0
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 43 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Digital Media: ($ in millions, except per share amounts)
COMPANY NAME AuthenTec, Inc. Cirrus Logic Inc.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
AUTH
$1.65
29.9
$49.4
$39.9
$0.0
$9.5
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES 0.2x
NTM SALES 0.2x
EQUITY VALUE AS A MULTIPLE OF:
LTM EBITDA
NTM EBITDA
LTM EBIT
NM
NA
NM
LTM EPS
NTM EPS
NM
NM 15.5
CRUS
17.84
67.7
1,208.6
142.3
0.0
1,066.2
4.0
2.8
21.4
9.0
25.4
21.4
DB:DLG
16.30
0.0
0.0
128.9
0.6
(128.3)
NM
NA
NM
NM
NM
23.2
NA
DSPG
7.00
23.4
163.5
66.4
0.0
97.1
0.4
0.4
8.3
NA
NM
47.7
16.9
NVIDIA Corporation
NVDA
11.68
574.0
6,705.5
1,772.5
23.7
4,956.7
1.3
1.4
23.8
8.8
NM
27.9
19.3
Pixelworks Inc.
PXLW
3.40
13.5
45.9
29.3
15.8
32.3
0.4
NA
13.2
NA
NM
25.0
NA
Sigma Designs, Inc.
SIGM
11.49
31.3
359.8
129.1
0.0
230.6
1.0
0.8
11.0
5.4
NM
NM
9.5
367.0
168.7
Dialog Semiconductor Plc DSP Group Inc.
Silicon Image, Inc.
SIMG
4.78
1.0
NM
8.2
NM
NM
29.9
SRS Labs Inc.
SRSL
9.34
14.7
137.1
28.1
0.0
109.1
3.7
NA
23.9
13.6
27.9
35.1
19.8
Trident Microsystems Inc.
TRID
1.71
176.7
302.1
96.9
0.0
205.2
0.6
NA
NM
7.3
NM
NM
NA
LSE:WLF
4.23
115.3
487.1
88.5
0.0
398.6
3.1
NA
NM
NA
NM
NM
NA
ZRAN
7.64
49.7
379.4
379.1
0.0
0.3
0.0
0.0
NM
0.0
NM
NM
NA
Wolfson Microelectronics plc Zoran Corporation
76.8
Mean
$850.4
$3.3
198.3
1.3
$598.0
1.5x
0.9x
16.9x
7.5x
26.6x
30.1x
18.5x
$331.0
$112.9
$0.0
$153.7
1.0x
0.8x
17.3x
8.2x
26.6x
26.5x
18.1x
High
$6,705.5
$1,772.5
$23.7
$4,956.7
4.0x
2.8x
23.9x
13.6x
27.9x
47.7x
29.9x
Low
$0.0
$28.1
$0.0
0.0x
0.0x
8.3x
0.0x
25.4x
21.4x
9.5x
Median
$255.8
0.0
($128.3)
Wireless Semiconductor: ($ in millions, except per share amounts)
COMPANY NAME Atheros Communications Inc. Broadcom Corp.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ATHR
$26.35
70.8
$1,866.4
$508.4
$0.0
$1,358.0
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES 1.7x
NTM SALES
LTM EBITDA
1.4x
10.6x
NTM EBITDA 6.8x
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT 14.2x
LTM EPS
NTM EPS
17.7x
10.8x 14.2
BRCM
35.39
503.5
17,818.9
2,048.4
0.0
15,770.5
2.9
2.3
27.9
12.0
35.0
29.8
LSE:CSR
3.59
182.2
654.0
429.1
0.3
225.2
0.3
NA
2.2
NA
3.4
14.1
NA
IFX
5.08
1,086.7
5,521.7
1,523.0
406.0
4,404.7
1.1
NA
6.0
NA
12.5
30.1
NA
Marvell Technology Group Ltd.
MRVL
17.51
650.6
11,392.0
2,380.0
1.5
9,013.6
2.7
2.4
9.0
7.7
11.1
14.4
11.0
QUALCOMM Incorporated
QCOM
45.13
1,605.2
72,446.5
9,968.0
1,278.0
63,756.5
5.9
5.4
16.0
13.7
19.2
23.7
NM
Silicon Laboratories, Inc.
SLAB
36.65
44.6
1,635.7
353.4
4.7
1,287.0
2.5
2.6
9.9
9.6
11.6
16.7
16.5
STMicroelectronics NV
STM
5.62
881.3
4,949.1
2,887.0
2,029.0
4,091.1
0.4
0.4
3.0
2.4
64.9
34.2
7.8
Texas Instruments Inc.
TXN
27.14
1,195.2
32,437.6
2,305.0
0.0
30,132.6
2.4
2.1
6.5
5.6
8.0
13.1
NA
$16,524.6
$2,489.1
$413.3
$14,448.8
2.2x
2.4x
10.1x
8.3x
20.0x
21.5x
12.1x
$5,521.7
$2,048.4
$1.5
$4,404.7
2.4x
2.3x
9.0x
7.7x
12.5x
17.7x
11.0x
High
$72,446.5
$9,968.0
$2,029.0
$63,756.5
5.9x
5.4x
27.9x
13.7x
64.9x
34.2x
16.5x
Low
$654.0
$353.4
$0.0
$225.2
0.3x
0.4x
2.2x
2.4x
3.4x
13.1x
7.8x
CSR plc Infineon Technologies AG
Mean Median
Telecom and Data Networks: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
Applied Micro Circuits Corp.
AMCC
$10.00
66.6
$665.8
$223.2
$0.0
$442.6
Broadcom Corp.
BRCM
35.39
503.5
17,818.9
2,048.4
0.0
Cavium Networks, Inc.
CAVM
28.76
44.7
1,286.2
69.0
8.0
Conexant Systems Inc.
CNXT
1.64
81.3
133.3
69.1
184.3
248.4
1.0
1.2
Himax Technologies, Inc.
HIMX
2.48
176.8
438.3
157.9
0.0
280.5
0.4
0.4
Mindspeed Technologies Inc.
MSPD
7.77
32.2
250.1
34.1
13.7
229.7
1.5
1.2
NetLogic Microsystems Inc.
NETL
27.58
63.5
1,751.3
201.1
6.7
1,556.9
5.3
PMC-Sierra Inc.
LTM EBITDA
NTM EBITDA
2.0x
1.7x
90.4x
10.3x
15,770.5
2.9
2.3
27.9
1,225.2
8.2
5.3
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
NM
NM
12.0
35.0
29.8
14.2
20.1x
NM
27.5
NM
NM
29.4
5.9
3.0
6.1
7.3
13.1
4.6
5.5
6.0
11.0
12.4
17.1
6.8
31.3
24.1
8.9
3.8
53.6
13.9
NM
NM
19.1 10.0
PMCS
7.36
230.5
1,696.7
262.1
59.9
1,494.5
2.6
2.2
9.0
6.9
13.3
17.2
STMicroelectronics NV
STM
5.62
881.3
4,949.1
2,887.0
2,029.0
4,091.1
0.4
0.4
3.0
2.4
64.9
34.2
7.8
TranSwitch Corp.
TXCC
2.63
23.3
61.3
7.7
6.3
59.9
1.1
1.1
NM
NA
NM
NM
25.0
$2,905.1
$596.0
$230.8
$2,539.9
2.5x
1.9x
26.4x
9.8x
26.1x
20.6x
16.0x
$976.0
$179.5
$7.4
$833.9
1.7x
1.4x
13.0x
6.9x
22.3x
20.6x
13.6x
High
$17,818.9
$2,887.0
$2,029.0
$15,770.5
8.2x
5.3x
90.4x
27.5x
64.9x
34.2x
29.4x
Low
$61.3
$7.7
$0.0
$59.9
0.4x
0.4x
3.0x
2.4x
6.0x
7.3x
7.8x
Mean Median
Semiconductor Design IP: ($ in millions, except per share amounts)
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
COMPANY NAME
TICKER
Imagination Technologies Group Plc
LSE:IMG
$3.81
245.0
$934.5
$29.4
$0.4
ARM Holdings plc
LSE:ARM
3.92
1,321.1
5,181.3
202.3
0.0
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
$905.6
11.2x
NA
4,979.0
14.1
LTM EBITDA 79.6x
NTM EBITDA NA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
90.6x
67.6x
NA
12.0
45.9
34.4
56.7
79.4
NA
MIPS Technologies Inc.
MIPS
9.74
47.4
462.0
52.4
0.0
409.7
5.8
5.0
22.8
13.8
25.0
35.8
22.0
MoSys, Inc.
MOSY
4.88
31.9
155.9
21.6
0.0
134.2
9.1
6.2
NM
NM
NM
NM
NM
Rambus Inc.
RMBS
2,334.6
597.6
116.2
1,853.2
7.1
11.1
18.0
NM
20.7
26.5
NA (Invalid Identifier)
(Invalid Identifier)
NA
NA
NA
NA
NA
NA
NA
NA
5.1
NA
28.4
16.5
30.4
34.7
25.7
20.84
112.0
(Invalid Identifier)
VIRL
(Invalid Identifier)
valid Identifier)
CEVA Inc.
CEVA
14.30
21.2
NA
303.8
93.5
0.0
210.3
$1,562.0
$166.1
$19.4
$1,415.3
8.7x
8.6x
38.9x
21.6x
44.7x
48.8x
23.8x
$698.3
$72.9
$0.0
$657.6
8.1x
8.7x
28.4x
16.5x
30.4x
35.8x
23.8x
High
$5,181.3
$597.6
$116.2
$4,979.0
14.1x
12.0x
79.6x
34.4x
90.6x
79.4x
25.7x
Low
$155.9
$21.6
$0.0
$134.2
5.1x
5.0x
18.0x
13.8x
20.7x
26.5x
22.0x
Mean Median
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 44 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Wireless Carriers: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Clearwire Corporation
CLWR
$8.09
242.1
$1,958.8
$2,236.0
$2,747.9
$2,470.7
Leap Wireless International Inc.
LEAP
12.35
78.3
967.4
550.2
2,740.4
3,157.6
MetroPCS Communications, Inc.
PCS
Sprint Nextel Corp. Telephone & Data Systems Inc.
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
EQUITY VALUE AS A MULTIPLE OF:
LTM EBITDA
NTM EBITDA
LTM EBIT
LTM EPS
NTM EPS
6.5x
2.4x
NM
NM
NM
NM
NM
1.3
1.2
6.2
5.1
47.7
NM
NM
10.46
353.9
3,701.7
1,076.4
3,674.8
6,300.1
S
4.63
2,984.5
13,818.3
4,277.0
20,301.0
29,842.3
0.9
0.9
5.0
5.1
NM
NM
NM
TDS
32.80
105.1
3,446.3
757.7
1,494.5
4,183.2
0.8
1.7
NA
1.6
3.8
6.1
3.9
4.1
12.3
10.5
24.7
17.9
22.0
15.5
Mean
$4,778.5
$1,779.5
$6,191.7
$9,190.8
2.2x
1.5x
5.3x
4.5x
23.5x
21.3x
18.7x
Median
$3,446.3
$1,076.4
$2,747.9
$4,183.2
1.3x
1.4x
5.6x
4.6x
12.3x
21.3x
18.7x
High
$13,818.3
$4,277.0
$20,301.0
$29,842.3
6.5x
2.4x
6.2x
5.1x
47.7x
24.7x
22.0x
Low
$967.4
$550.2
$1,494.5
$2,470.7
0.8x
0.9x
3.8x
3.9x
10.5x
17.9x
15.5x
Wireless Infrastructure: ($ in millions, except per share amounts)
COMPANY NAME Amdocs Ltd.
TICKER DOX
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
$28.66
206.4
$5,916.0
$1,289.9
$0.0
$4,626.0
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT 11.4x
LTM EPS 17.6x
NTM EPS
1.6x
NA
7.7x
6.8x
NM
NM
NM
NM
NM
12.3
NA NA
5.9
5.4
16.0
13.7
19.2
23.7
19.2
Comverse Technology Inc.
CMVT
6.73
202.0
1,359.5
2,325.0
515.9
QUALCOMM Incorporated
QCOM
45.13
1,605.2
72,446.5
9,968.0
1,278.0
Openwave Systems Inc.
OPWV
1.70
84.3
143.2
106.1
0.0
37.1
0.2
0.2
7.6
2.6
NM
NM
NM
VeriSign Inc.
VRSN
31.74
174.1
5,526.9
1,337.3
575.9
4,765.6
4.5
NA
10.7
12.4
13.1
27.6
27.9
Mean
(449.6)
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
63,756.5
$17,078.4
$3,005.3
$474.0
$14,547.1
3.1x
2.8x
10.5x
8.9x
14.6x
20.3x
23.5x
$5,526.9
$1,337.3
$515.9
$4,626.0
3.0x
2.8x
9.2x
9.6x
13.1x
20.7x
23.5x
High
$72,446.5
$9,968.0
$1,278.0
$63,756.5
5.9x
5.4x
16.0x
13.7x
19.2x
27.6x
27.9x
Low
$143.2
$106.1
$0.0
0.2x
0.2x
7.6x
2.6x
11.4x
12.3x
19.2x
Median
($449.6)
Integrated Wireline & Wireless Carriers: ($ in millions, except per share amounts)
COMPANY NAME AT&T, Inc. Verizon Communications Inc.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
T
$28.60
5,909.0
$168,997.4
$1,377.0
$69,998.0
$237,618.4
VZ
32.59
2,827.0
92,131.9
5,225.0
57,468.0
144,374.9
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
1.9x
1.9x
5.7x
5.4x
1.3
1.4
4.1
4.1
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
10.6x
13.3x
7.7
NM
NTM EPS 11.5x 14.7
Mean
$130,564.7
$3,301.0
$63,733.0
$190,996.7
1.6x
1.6x
4.9x
4.7x
9.2x
13.3x
13.1x
Median
$130,564.7
$3,301.0
$63,733.0
$190,996.7
1.6x
1.6x
4.9x
4.7x
9.2x
13.3x
13.1x
High
$168,997.4
$5,225.0
$69,998.0
$237,618.4
1.9x
1.9x
5.7x
5.4x
10.6x
13.3x
14.7x
Low
$92,131.9
$1,377.0
$57,468.0
$144,374.9
1.3x
1.4x
4.1x
4.1x
7.7x
13.3x
11.5x
LTM SALES
NTM SALES
Mobile Payment: ($ in millions, except per share amounts)
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
COMPANY NAME
TICKER
ACI Worldwide, Inc.
ACIW
$22.39
33.4
Euronet Worldwide Inc.
EEFT
17.99
Global Payments Inc.
GPN
42.89
MGI SONE
Moneygram International Inc. S1 Corporation Western Union Co. VeriSign Inc.
ENTERPRISE VALUE AS A MULTIPLE OF: LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
$746.9
$117.8
$77.4
$706.5
1.7x
1.6x
9.0x
7.9x
13.2x
30.5x
51.0
917.3
202.6
289.2
1,003.9
1.0
0.9
7.3
7.2
12.7
33.4
13.4
79.7
3,418.9
769.9
500.3
3,149.3
1.9
1.8
8.0
7.6
9.7
17.0
15.9
17.8x
2.44
83.3
203.3
0.0
740.6
943.9
0.8
0.8
3.7
3.8
5.6
NM
23.6
5.21
53.1
276.6
52.0
5.5
230.2
1.0
1.1
8.1
8.6
13.2
20.4
44.9
WU
17.67
660.1
11,664.3
1,746.8
3,296.5
13,214.0
2.6
2.5
9.3
8.3
10.5
14.6
12.7
VRSN
31.74
174.1
5,526.9
1,337.3
575.9
4,765.6
4.5
6.5
10.7
12.4
13.1
27.6
25.6
Mean
$3,250.6
Median
$603.8
$783.6
$3,430.5
1.9x
2.2x
8.0x
8.0x
11.1x
23.9x
22.0x
$917.3
$202.6
$500.3
$1,003.9
1.7x
1.6x
8.1x
7.9x
12.7x
24.0x
17.8x
High
$11,664.3
$1,746.8
$3,296.5
$13,214.0
4.5x
6.5x
10.7x
12.4x
13.2x
33.4x
44.9x
Low
$203.3
$0.0
$5.5
$230.2
0.8x
0.8x
3.7x
3.8x
5.6x
14.6x
12.7x
Payment Software & Solutions: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Bottomline Technologies Inc.
EPAY
$15.36
32.2
Fundtech Ltd.
FNDT
13.95
15.7
218.9
54.6
0.0
Global Payments Inc.
GPN
42.89
79.7
3,418.9
769.9
500.3
$1,377.6
$315.8
$166.8
$494.9
$122.8
$0.1
High
$3,418.9
$769.9
$500.3
$3,149.3
Low
$218.9
$54.6
$0.0
$164.3
Mean Median
$494.9
$122.8
$0.1
$372.2
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
2.4x
2.2x
164.3
1.2
NA
3,149.3
1.9
1.8
$1,228.6
1.8x
$372.2
1.9x
LTM EBITDA 15.0x
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS NM
NTM EPS
9.0x
52.4x
9.1
7.1
16.5
25.0
NA
8.0
7.6
9.7
17.0
15.9
15.2x
2.0x
10.7x
7.9x
26.2x
NM
15.5x
2.0x
9.1x
7.6x
16.5x
NM
2.4x
2.2x
15.0x
9.0x
52.4x
25.0x
15.9x
1.2x
1.8x
8.0x
7.1x
9.7x
17.0x
15.2x
15.5x
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 45 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Broad Based Financial Services: ($ in millions, except per share amounts)
COMPANY NAME Fidelity National Information Services, Inc. Intuit Inc. Marshall & Ilsley Corporation S1 Corporation
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
FIS
$27.13
299.6
$8,128.7
$502.0
$2,990.9
$10,617.6
INTU
43.81
317.5
13,911.3
1,622.0
998.0
MI
7.04
527.6
3,714.4
1,798.8
SONE
5.21
53.1
276.6
52.0
$6,507.7
$993.7
$2,700.1
Mean Median
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
2.3x
2.0x
13,287.3
3.8
3.5
6,806.1
8,721.7
42.7
5.5
230.2
1.0
$8,214.2
12.5x
LTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
6.3x
15.7x
46.3x
11.3x
11.9
9.5
15.3
26.4
16.1
3.8
NA
NM
NA
NM
61.8
1.1
8.1
8.6
13.2
20.4
18.6
2.6x
9.0x
NTM EBITDA
9.7x
8.1x
14.7x
31.0x
27.0x
$5,921.6
$1,062.0
$1,994.5
$9,669.6
3.1x
2.7x
9.0x
8.6x
15.3x
26.4x
17.3x
High
$13,911.3
$1,798.8
$6,806.1
$13,287.3
42.7x
3.8x
11.9x
9.5x
15.7x
46.3x
61.8x
Low
$276.6
$52.0
$5.5
$230.2
1.0x
1.1x
8.1x
6.3x
13.2x
20.4x
11.3x
Alternative Fuels: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF:
EQUITY VALUE AS A MULTIPLE OF:
LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
LTM EBIT
LTM EPS
NTM EPS
The Andersons, Inc.
ANDE
$37.90
18.3
$693.6
$204.3
$305.7
$795.0
$0.3
$0.2
$8.8
$6.0
$12.2
12.8
12.5
Clean Energy Fuels Corp.
82.4
CLNE
14.21
59.7
848.9
55.7
11.9
805.2
5.1
2.6
NM
20.6
NM
NM
Diligent Board Member Services Inc
DIL
0.67
90.4
60.6
1.1
0.2
59.7
9.2
NA
NA
NA
NM
NM
NA
Environmental Power Corporation
EPG
1.72
15.7
26.9
1.0
0.0
25.9
2.8
NA
NM
NA
3.0
5.8
NA
Golden Hope Mines Limited Green Plains Renewable Energy, Inc. Headwaters Inc.
GNH
0.56
82.9
46.4
2.0
0.0
44.4
NA
NA
NA
NA
NM
NM
NA
GPRE
12.17
25.0
303.8
182.8
454.6
575.6
0.3
0.3
4.9
5.0
7.0
NA
NA NM
HW
3.60
60.3
217.2
46.3
485.8
656.6
1.0
1.0
7.8
5.8
26.3
NM
MGPI
7.85
16.6
130.4
7.1
2.8
126.1
0.6
NA
7.7
NA
16.1
15.3
NA
Pacific Ethanol, Inc.
PEIX
0.89
57.6
51.4
2.0
16.2
65.7
0.2
NA
NM
NA
NM
NM
NA
Panda Ethanol Inc.
PDAE
0.00
40.7
0.2
0.3
164.6
164.5
NA
NA
NM
NA
NM
NM
NA
RTK
0.99
213.4
210.4
47.9
99.8
262.2
2.2
1.6
NM
NM
NM
NM
NM
Mean
$235.4
$50.1
$140.2
$325.5
2.4x
1.1x
7.3x
9.3x
12.9x
11.3x
47.5x
Median
$130.4
$7.1
$16.2
$164.5
1.0x
1.0x
7.8x
5.9x
12.2x
12.8x
47.5x
High
$848.9
$204.3
$485.8
$805.2
9.2x
2.6x
8.8x
20.6x
26.3x
15.3x
82.4x
Low
$0.2
$0.3
$0.0
$25.9
0.2x
0.2x
4.9x
5.0x
3.0x
5.8x
12.5x
MGP Ingredients Inc.
Rentech, Inc.
Wind: ($ in millions, except per share amounts)
COMPANY NAME Broadwind Energy, Inc. Clipper Windpower Plc
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
BWEN
$1.87
106.7
$199.5
$13.3
$18.2
$204.5
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES 1.4x
NTM SALES
LTM EBITDA
0.9x
NM
NTM EBITDA NA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT NM
LTM EPS NM
NTM EPS NA
CWP
0.40
214.6
85.9
49.9
20.9
56.8
0.1
NA
NM
NA
NM
NM
NA
CATS:GAM
5.14
240.5
1,234.9
494.5
853.2
1,593.7
0.6
NA
9.0
NA
12.5
17.1
NA
Mass Megawatts Wind Power Inc.
MMGW
0.36
7.5
2.7
0.2
0.0
2.5
NM
NA
NM
NA
NM
NM
NA
McKenzie Bay International Ltd.
MKBY
0.03
34.0
1.0
0.3
1.9
2.5
NA
NA
NM
NA
NM
NM
NA
SBX
8.06
21.7
174.7
19.9
12.0
166.8
0.6
0.6
NM
NA
NM
NM
NA
$113.0
$177.6
17.1x
Gamesa Corporación Tecnológica S.A.
SeaBright Insurance Holdings Inc.
Mean
$364.5
0.4x
NA
9.0x
NA
12.5x
$85.9
$19.9
$12.0
$56.8
0.6x
NA
9.0x
NA
12.5x
17.1x
NA
High
$1,234.9
$299.8
$494.5
$853.2
$1,593.7
0.6x
NA
9.0x
NA
12.5x
17.1x
NA
Low
$1.0
$0.2
$0.0
$2.5
0.1x
NA
9.0x
NA
12.5x
17.1x
NA
Median
NA
Solar: ($ in millions, except per share amounts)
COMPANY NAME Ascent Solar Technologies, Inc.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ASTI
$3.16
Canadian Solar Inc.
CSIQ
Evergreen Solar Inc.
ESLR
First Solar, Inc.
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES 37.4x
NTM SALES 0.9x
EQUITY VALUE AS A MULTIPLE OF:
LTM EBITDA
NTM EBITDA
LTM EBIT
NM
NM
NM
LTM EPS NM
NTM EPS
26.6
$83.9
$41.4
$8.0
$50.4
16.30
42.7
696.3
255.2
668.7
1,109.7
1.0
0.8
14.5
9.0
20.2
47.0
9.0
0.73
207.8
152.5
115.4
420.4
457.5
1.5
1.2
18.3
24.0
NM
NM
NM
NM
FSLR
147.35
85.1
12,540.7
796.5
140.5
11,884.7
5.2
NA
14.1
13.2
17.2
20.3
NA
JA Solar Holdings Co., Ltd.
JASO
9.33
161.4
1,506.1
2,201.0
2,391.6
1,696.7
0.2
1.0
1.3
5.6
1.5
2.0
8.5
MEMC Electronic Materials Inc.
WFR
11.92
223.6
2,664.9
704.7
463.0
2,423.2
1.6
1.0
47.6
6.1
NM
NM
14.2
Solarfun Power Holdings Co. Ltd.
SOLF
13.15
53.9
709.0
885.4
1,800.2
1,623.8
0.3
1.5
1.3
9.4
1.6
1.3
8.1
Spire Corp.
SPIR
4.40
8.3
36.7
8.0
1.5
30.2
0.4
NA
NM
NA
NM
NM
NA
Suntech Power Holdings Co. Ltd.
STP
9.64
178.9
1,724.4
765.6
1,617.8
2,576.6
1.1
0.9
7.7
7.1
10.1
NM
11.1
Trina Solar Ltd.
TSL
30.18
69.7
2,102.9
640.0
627.4
2,090.3
1.6
1.3
NA
6.0
7.8
12.7
9.8
10.1x
Mean
$2,221.7
$641.3
$813.9
$2,394.3
5.0x
1.1x
15.0x
10.1x
9.7x
16.7x
Median
$1,107.6
$672.3
$545.2
$1,660.2
1.3x
1.0x
14.1x
8.0x
8.9x
12.7x
9.4x
High
$12,540.7
$2,201.0
$2,391.6
$11,884.7
37.4x
1.5x
47.6x
24.0x
20.2x
47.0x
14.2x
Low
$36.7
$8.0
$1.5
$30.2
0.2x
0.8x
1.3x
5.6x
1.5x
1.3x
8.1x
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 46 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Hydrogen/Methanol Fuel Cell: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
$407.8
$4,189.6
$21,352.2
APD
Avista Corp.
AVA
20.88
54.8
1,143.8
38.5
1,279.9
2,385.2
1.6
1.5
AVX Corp.
AVX
13.82
170.2
2,352.8
742.4
0.0
1,610.4
1.1
1.0
DESC.Q
0.00
40.1
0.2
3.6
12.4
9.0
0.3
NA
FCEL
1.23
84.4
103.8
52.7
4.7
55.8
0.8
0.8
FuelCell Energy Inc. GrafTech International Ltd. Hydrogenics Corp.
Quantum Fuel Systems Technologies Worldwide VIASPACE Inc.
$17,570.4
2.4x
2.2x
LTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EPS
NTM EPS
17.9x
15.3x
11.4
13.6
12.4x
7.5
13.8
NA
NA
NM
NM
NA
NM
NM
NM
NM
NM
9.3x
NTM EBITDA
LTM EBIT
8.2x
15.0x
7.6
6.9
6.0
4.3
NM
GTI
15.63
120.4
1,882.0
63.4
45.2
1,863.8
2.2
1.9
9.6
7.4
11.7
16.7
NA
HYGS
3.97
105.1
417.0
8.8
0.0
408.2
23.6
11.0
NM
NA
NM
NM
NM
MOD
12.97
46.2
158.0
722.6
5.9
19.4
Modine Manufacturing Company Plug Power Inc.
212.2
NTM SALES
Air Products & Chemicals Inc.
Distributed Energy Systems Corp.
$82.82
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
599.8
35.2
NM
NA
PLUG
0.38
129.6
49.5
58.4
26.8
17.9
1.3
1.1
NM
NM
NM
NM
NM
QTWW
0.50
146.0
73.0
4.0
21.7
90.6
9.0
2.2
NM
NM
NM
NM
0.6
OTCBB:VSPC
0.01
885.3
10.6
0.6
5.4
15.3
4.1
NA
NM
NA
NM
0.3
NA
$2,200.3
$128.7
$522.2
$2,593.7
4.3x
2.5x
7.9x
6.5x
13.0x
12.4x
9.4x
$417.0
$38.5
$21.7
$408.2
1.6x
1.5x
7.6x
6.9x
11.7x
13.8x
12.4x
High
$17,570.4
$742.4
$4,189.6
$21,352.2
23.6x
11.0x
9.6x
8.2x
19.4x
17.9x
15.3x
Low
$0.2
$0.6
$0.0
$9.0
0.3x
0.5x
6.0x
4.3x
7.5x
0.3x
0.6x
Mean Median
0.6
0.5
7.1
Weather/Geothermal: ($ in millions, except per share amounts)
COMPANY NAME Danaher Corp.
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
DHR
Flow International Corp.
FLOW
Ocean Power Technologies, Inc
$40.61
322.7
$13,106.3
$1,232.9
$2,824.9
$14,698.3
2.63
46.9
123.3
7.2
8.2
124.3
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
1.2x
1.1x
0.7
0.6
LTM EBITDA 6.1x 18.5
NTM EBITDA 5.6x 14.8
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT 7.3x NM
LTM EPS 21.2x NM
NTM EPS 17.1x 37.6
OPTT
5.11
10.2
52.2
27.4
0.6
25.3
4.9
NA
NM
NM
NM
NM
NA
Ormat Technologies Inc.
ORA
29.17
45.4
1,325.0
54.2
699.8
1,970.6
5.0
4.8
17.5
11.6
51.5
37.1
30.8
Geo Group Inc.
GEO
23.35
51.4
1,199.4
40.1
644.2
1,803.5
1.5
1.2
9.9
7.3
12.5
17.2
15.3
AMEX:HTM
0.81
62.1
50.4
8.7
0.3
42.0
NA
NA
NM
NA
NM
NM
NA
WFI
26.11
12.1
315.7
15.7
0.2
300.2
2.2
2.0
12.4
10.3
12.8
21.4
17.0
US Geothermal Inc. WaterFurnace Renewable Energy, Inc.
Mean
$2,709.2
2.6x
2.0x
12.9x
9.9x
21.0x
24.2x
23.6x
$315.7
$27.4
$8.2
$300.2
1.9x
1.2x
12.4x
10.3x
12.6x
21.3x
17.1x
High
$13,106.3
$2,310.3
$1,232.9
$2,824.9
$14,698.3
5.0x
4.8x
18.5x
14.8x
51.5x
37.1x
37.6x
Low
$50.4
$7.2
$0.2
$25.3
0.7x
0.6x
6.1x
5.6x
7.3x
17.2x
15.3x
Median
$198.0
$596.9
Recycling Technologies/Services: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
Appliance Recycling Centers of America Inc.
ARCI
$3.11
4.6
$14.2
$3.2
$13.1
$24.2
Bion Environmental Technologies Inc.
BNET
2.67
11.7
31.4
1.5
0.0
César Group
CSAR
0.34
7.8
2.6
1.9
11.6
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
0.2x
NA
9.8x
NA
17.0x
NM
29.9
NA
NA
NM
NA
NM
NM
NA NA
12.3
0.3
NA
NM
NA
NM
NM
NA
Clean Harbors, Inc.
CLH
67.75
26.2
1,776.5
296.6
309.3
1,789.1
1.2
1.1
7.5
6.7
11.7
20.3
21.1
Commercial Metals Company
CMC
14.49
112.9
1,635.8
289.6
1,343.9
2,690.1
0.4
0.4
76.1
6.7
NM
NM
14.9
327.7
77.1
0.0
250.5
NM
22.9
NM
NM
NM
NM
NM
NA valid Identifier) alid Identifier)
NA
NA
NA
NA
NA
NA
NA
NA
Metabolix, Inc.
MBLX
12.58
26.0
Startech Environmental Corp.
STHK
(Invalid Identifier)
23.8
Mean
$799.3
0.5x
$179.5
$40.1
$12.3
$140.2
0.4x
1.1x
9.8x
6.7x
14.3x
20.3x
18.0x
High
$1,776.5
$631.4
$296.6
$1,343.9
$2,690.1
1.2x
22.9x
76.1x
6.7x
17.0x
20.3x
21.1x
Low
$2.6
$1.5
$0.0
$12.3
0.2x
0.4x
7.5x
6.7x
11.7x
20.3x
14.9x
Median
$111.7
$279.6
8.1x
31.1x
6.7x
14.3x
20.3x
18.0x
Clean Energy Management: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
Ambient Corporation
ABTG
$0.09
897.8
$80.8
$1.4
$0.0
$79.4
10.5x
NA
NM
NA
NM
NM
NA
Comverge, Inc.
COMV
7.86
24.7
194.3
35.4
11.3
170.1
1.6
1.3
NM
40.9x
NM
NM
NM
ENA
0.65
31.4
20.4
10.4
1.4
11.3
1.5
NA
NM
NA
NM
NM
NA
Enova Systems Inc.
Mean
$98.5
$15.7
$4.2
$87.0
4.5x
1.3x
NM
NA
NM
NM
NA
Median
$80.8
$10.4
$1.4
$79.4
1.6x
1.3x
NM
NA
NM
NM
NA
High
$194.3
$35.4
$11.3
$170.1
10.5x
1.3x
NM
NA
NM
NM
NA
Low
$20.4
$1.4
$0.0
$11.3
1.5x
1.3x
NM
NA
NM
NM
NA
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 47 of 51
Monthly Technology Newsletter
2010
Detailed Sector Data, Valuation Multiples, Metrics (Continued) Waste Emissions/Purification: ($ in millions, except per share amounts)
COMPANY NAME
TICKER
SHARE PRICE AS OF:
SHARES
EQUITY
TOTAL
TOTAL
ENTERPRISE
September 30, 2010
OUTSTANDING
MKT VALUE
CASH
DEBT
VALUE
ENTERPRISE VALUE AS A MULTIPLE OF: LTM SALES
NTM SALES
LTM EBITDA
NTM EBITDA
EQUITY VALUE AS A MULTIPLE OF: LTM EBIT
LTM EPS
NTM EPS
Ambient Corporation
ABTG
$0.09
897.8
$80.8
$1.4
$0.0
$79.4
10.5x
NA
NM
NA
NM
NM
NA
Comverge, Inc.
COMV
7.86
24.7
194.3
35.4
11.3
170.1
1.6
1.3
NM
40.9x
NM
NM
NM
ENA
0.65
NM
NA
NM
NM
NA
Enova Systems Inc.
20.4
10.4
1.4
11.3
1.5
NA
Mean
31.4
$98.5
$15.7
$4.2
$87.0
4.5x
1.3x
NM
NA
NM
NM
NA
Median
$80.8
$10.4
$1.4
$79.4
1.6x
1.3x
NM
NA
NM
NM
NA
High
$194.3
$35.4
$11.3
$170.1
10.5x
1.3x
NM
NA
NM
NM
NA
Low
$20.4
$1.4
$0.0
$11.3
1.5x
1.3x
NM
NA
NM
NM
NA
Source: Capital IQ, NTM estimates from Capital IQ
Morgan Joseph LLC
Page 48 of 51
Monthly Technology Newsletter
2010
Morgan Joseph LLC Overview About Morgan Joseph: Morgan Joseph LLC is a full service investment banking firm with over 130 employees and 9 offices in 9 cities dedicated to serving middle market companies. The firm's primary focus is on providing financial advisory and capital raising services in the U.S., Asia and Europe. Our services include mergers and acquisitions advice, restructuring advice, private placements and public offerings of debt and equity. For its institutional investor clients, Morgan Joseph provides a full range of sales and execution services, including equity research and specialized reports.
Organizational Highlights: •
Headquartered in New York City with offices in Atlanta, GA; Boston, MA; Dallas, TX; Miami, FL; Nashville, TN; Rochester, NY; San Francisco, CA; and Stamford, CT.
•
Member of IMAP, the International Network of M&A Partners
Investment Banking Highlights: •
Team of over 67 professionals organized into specialty industry and product groups, each including at least one Managing Director with over 20 years of experience
•
Over $21.5 billion of completed transactions since June 2001
•
Over 165 completed M&A transactions and restructuring assignments
•
Over 100 completed financings, including private equity and debt placements, high yield debt and public equity offerings
Morgan Joseph Investment Banking Division Offering: •
Public Equity offerings
•
M&A Advisory
•
Equity/Debt Private Placements
•
PIPEs
Morgan Joseph LLC
Page 49 of 51
Monthly Technology Newsletter
2010
General Newsletter Disclaimer: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or buy any security. The information presented is drawn from publicly available sources, including public filings with the Securities and Exchange Commissions and market information made publicly available by third party providers. Any reference to or omission of any reference to any company in this newsletter should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is not intended to be, and should not be construed as, investment advice or an analysis, ranking, rating or recommendation with respect to the securities, companies or industries described. No investment decision should be based on this newsletter. This newsletter is published solely for general informational purposes only. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. Morgan Joseph LLC, its affiliates, shareholders, officers, staff, and/or members of their families, including persons involved in the preparation or issuance of this newsletter, may from time to time have long and short positions in the securities mentioned herein, and, before or after your receipt of this report, may make or recommend purchases and/or sales of securities or derivatives for their own accounts or for the accounts of other customers of the Firm from time to time in the open market or otherwise. Additional information is available upon request. The companies mentioned in this newsletter may be clients of Morgan Joseph LLC. The decision to include any company in this newsletter is unrelated in all respects to any service Morgan Joseph LLC may provide to such company. This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consent of Morgan Joseph LLC.
Morgan Joseph LLC
Page 50 of 51
Monthly Technology Newsletter
2010
Morgan Joseph Technology Investment Banking Team
Rick Juarez Managing Director 650-270-2702
[email protected]
Gene Ramirez Managing Director 650-270-2703
[email protected]
Sandeep Beotra Director 212-218-3722
[email protected]
Zachary Fisher Director 212-218-3749
[email protected]
Piyush Pandey Vice President 650-270-2706
[email protected]
Anthony Cresci Associate 650-270-2704
[email protected]
Amar Kuray Associate 212.218.3790
[email protected]
Eamon Brady Analyst 212-218-3858
[email protected]
Greg South Analyst 650-270-2707
[email protected]
Morgan Joseph LLC
Matt McLeod Associate 650-270-2705
[email protected] Cody Werner Analyst 650-270-2708
[email protected]
Page 51 of 51
