SMART Tech (Nasdaq: SMT)
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Qlik Tech (QLIK) $90mm IPO scheduled for Friday, July 16 |
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BUSINESS |
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Business intelligence solutions that enables customers to make better and faster business decisions. |
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SUMMARY |
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. P/E ratio is 111 for the 12 months ended March 31, 2010 |
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. Significant top line revenue growth
. 90% gross margin is a big plus, offset however by very high sales & marketing expenses in the 59% of revenue range
. Seasonal business -- much of the year’s profit comes in the December quarter, based client’s IT budget expenditures |
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. 93% of IPO proceeds targeted to grow the business |
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REVENUE DISTRIBUTION |
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. For the fiscal year ended December 31, 2009, total revenue was comprised of 64% license revenue, 26% maintenance revenue and 10% professional services revenue.
. For the three months ended March 31, 2010, revenue was comprised of 60% license revenue, 30% maintenance revenue and 10% professional services revenue. |
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CUSTOMER BASE |
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. Grew customer base from over 2,000 customers in 2005 to approximately 14,000 as of March 31, 2010 and increased revenue at a 59% compound annual growth rate during the same period.
. Added an average of 404 new customers per month during fiscal year 2009.
. Customers include middle market customers to large enterprises such as BP, Campbell Soup Company, Colonial Life, The Dannon Company, Inc., Heidelberger Druckmaschinen AG, Kraft Foods, ING, Lifetime Brands, National Health Service (NHS), Qualcomm, Symantec and Volvo Car UK Limited.
. Has customers in over 100 countries, and 75% of our revenue for the three months ended March 31, 2010 was derived internationally. |
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INTELLECTUAL PROPERTY |
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Currently has three issued United States patents and has a pending application for a fourth United States patent. In addition, has 17 issued and eight pending foreign patents. |
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COMPETITION |
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. Primarily faces competitors in several broad categories, including business intelligence software, analytical processes, query tools, web-based reporting tools and report delivery technology.
. Independent competitors that are primarily focused on business intelligence products include, among others, MicroStrategy and the SAS Institute.
. Also competes with large software corporations, including suppliers of enterprise resource planning software, that provide one or more capabilities competitive with QLIK’s products, such as IBM, Microsoft, Oracle and SAP AG. |
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. Current and future competitors may also have greater resources to make strategic acquisitions. For example, Oracle acquired Hyperion Solutions in April 2007, IBM acquired Cognos in January 2008 and SAP acquired Business Objects in January 2008. |
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USE OF PROCEEDS |
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$90mm |
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. $6.1 million to repay debt |
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. Balance for working capital, potential capital acquisition expenditures |
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Qlik Tech |
QLIK, C+, 7 |
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Post-IPO shares: 75mm |
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Bus intelligence softwr |
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Radnor PA |
2007 |
2008 |
2009 |
March '09qtr |
March '10qtr |
IPO Mkt |
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Revenue ($mm\) |
$81 |
$118 |
$157 |
$26 |
$44 |
Cap (mm) |
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Gross margin % |
85% |
88% |
89% |
86% |
90% |
$675 |
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Sales & Mkt expense % of rev |
60% |
63% |
59% |
74% |
58% |
@9 |
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Operating profit % of rev |
0% |
1% |
8% |
-24% |
5% |
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Profit (loss) |
$0.4 |
$3.0 |
$6.8 |
-$4.3 |
-$0.1 |
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Profit (loss) % of revenue |
0.4% |
2.5% |
4.3% |
-16.3% |
-0.2% |
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VALUATION RATIOS |
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IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
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12 mos ended March 31, 2010 |
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
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Qlik Tech (QLIK) |
$675 |
3.9 |
111 |
6.2 |
6.7 |
15% |
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SCORECARD |
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Mgt |
Market |
Market Do- |
Proprie- |
Total |
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1-5, 5 is high |
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Growth |
mination |
tary |
rating |
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20 is perfect |
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2 |
2 |
2 |
1 |
7 |
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