SEG Monthly Flash Report September 2011

Software Equity Group Flash Report
September 2011 Select M&A Transactions and Financial and Stock Market Performance Public Software Companies By Product Category Public SaaS Companies Public Internet Companies By Product Category
Software Equity Group, L.L.C. 12220 El Camino Real, #320 San Diego, CA 92130 p: (858) 509-2800 f: (858) 509-2818 info@softwareequity.com
Copyright 2011 by Software Equity Group, L.L.C., All Rights Reserved
ABOUT OUR FIRM Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently ranked among the top ten investment banks worldwide for application software mergers and acquisitions. Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value. THE SEG SOFTWARE COMPANY MENTORING PROGRAM As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in the next few years. We meet with them periodically, invite them to call whenever theyd like our opinion on an operational issue that might have exit implications later on, and we keep them apprised of M&A activity and fi h i d f i i d financings i their product category. A d the b i in h i d And h best news we d charge f this mentoring advice. I complimentary. I our way of b ildi dont h for hi i d i Its li Its f building value, and relationships. Were looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone conversation. Well then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, well discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. Well assess the strengths and weakness of your financial performance, how that compares to other software companies your size, and how that relates to buyer expectations. Well discuss your market strategy, sales strategy, sales team track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road. Were a terrific sounding board. Well give you an informed, honest and frank opinion thats what were known for. And well offer informed and insightful observations, ideas and options based on 17 years of working with countless software companies worldwide. If you run a profitable software company with revenue in excess of $10 million, and youre interested in learning more about SEGs complimentary, no obligation mentoring program, please contact Kris Beible at kbeible@softwareequity.com or 858-509-2800. ADDITIONAL RESEARCH For our complimentary current and archived Quarterly Reports from 1Q03, please visit: http://www.softwareequity.com/research_quarterly_reports.aspx For our complimentary current and archived Monthly Flash Reports from July 2008, please visit: http://www.softwareequity.com/research_flash_reports.aspx For our Annual Reports from 2003 through 2010, please visit: http://www.softwareequity.com/research_annual_reports.aspx
List of Commonly Used Acronyms

CAD CAM CRM EBITDA EV FCF FORWARD HR NASDAQ OS PLM R&D S&P SaaS SEG SG&A SW TTM YoY YTD Computer-aided Design Computer-aided Manufacturing Customer Relationship Management Earnings before Interest, Taxes, Depreciation, and Amortization Enterprise Value Free Cash Flow Current EV / Next Four Quarters' Consensus Financial Estimates Human Resources National Association of Securities Dealers Automated Quotation System Operating System Product Lifecycle Management Research and Development Standard & Poor's Software-as-a-Service Software Equity Group Selling, General, & Administrative Software Trailing Twelve Month Year-over-Year Year-to-date
Select Software Industry M&A Transactions August 2011
Select August 2011 Software Industry M&A Transactions

Date Announced 08/31/2011 08/30/2011 08/30/2011 08/29/2011 08/29/2011 08/26/2011 08/26/2011 08/26/2011 08/26/2011 08/25/2011 08/25/2011 08/25/2011 08/23/2011 08/22/2011 08/22/2011 08/21/2011 08/21/2011 08/18/2011 08/18/2011 08/18/2011 08/15/2011 08/15/2011 08/15/2011 08/13/2011 08/10/2011 08/09/2011 08/08/2011 08/08/2011 08/08/2011 08/08/2011 08/05/2011 08/04/2011 08/04/2011 08/04/2011 08/04/2011 08/03/2011 08/03/2011 08/03/2011 08/02/2011 08/02/2011 08/02/2011 08/01/2011 08/01/2011 08/01/2011 08/01/2011 08/01/2011 Acquirer International Business Machines Corp. (NYSE:IBM) DG FastChannel, Inc. (NasdaqGS:DGIT) TIBCO Software Inc. (NasdaqGS:TIBX) Cisco Systems, Inc. (NasdaqGS:CSCO) Daily Group Savings, Inc. Marine Drive Mobile Corp. Salesforce.com (NYSE:CRM) VMware, Inc. (NYSE:VMW) Yandex LLC Autodesk, Inc. (NasdaqGS:ADSK) Nortel Networks Netas Telekomunikasyon AS Terremark Worldwide, Inc. Group Commerce Inc. PLATO Learning, Inc. RealPage, Inc. (NasdaqGS:RP) Cisco Systems, Inc. (NasdaqGS:CSCO) Skype Global S. r.l. CrowdSavings.com, LLC Hewlett-Packard Company (NYSE:HPQ) HubSpot, Inc. Digital Chocolate, Inc. Electronic Arts Inc. (NasdaqGS:ERTS) Ellie Mae, Inc. (AMEX:ELLI) Nuance Communications, Inc. (NasdaqGS:NUAN) Citrix Systems, Inc. (NasdaqGS:CTXS) Bitly, Inc. CrowdSavings.com, LLC Demand Media, Inc. (NYSE:DMD) Silicon Graphics International Corp. (NasdaqGS:SGI) Twitter, Inc. Demand Media, Inc. (NYSE:DMD) Datatel, Inc. Groupon, Inc. LocalResponse, Inc. Meltwater Group Augme Technologies, Inc. (OTCBB:AUGT) comScore, Inc. (NasdaqGS:SCOR) Web.com Group, Inc. (NasdaqGS:WWWW) Apollo Group Inc. (NasdaqGS:APOL) Glu Mobile, Inc. (NasdaqGM:GLUU) InMobi Autodesk, Inc. (NasdaqGS:ADSK) EMC Corporation (NYSE:EMC) Glu Mobile, Inc. (NasdaqGM:GLUU) Google Inc. (NasdaqGS:GOOG) ValueClick, Inc. (NasdaqGS:VCLK) Target i2 Limited chors GmbH And EyeWonder, Inc. Nimbus Partners Limited Versly DailyFlash, LLC I Like A Deal, LLC Navajo Systems PacketMotion, Inc. The Tweeted Times NUMENUS GmbH Probil AS CloudSwitch, Inc. Socialight, Inc. Renaissance Learning Inc. Multifamily Technology Solutions, Inc. Axiom Systems Limited, Axioss Software GroupMe, Inc. DealDaddies, Inc. Autonomy Corp. plc (LSE:AU.) Oneforty, Inc. Sandlot Games Corporation Bight Interactive Inc. Del Mar Datatrac, Inc. Loquendo S.p.A. RingCube Technologies, Inc. Twitterfeed, Inc. QponDay.com LLC IndieClick Media Group, Inc. SGI OpenFOAM Bagcheck Inc. RSS Graffiti, LLC Sungard Higher Education, Inc. Obtiva Corporation Philo Media Corporation IceRocket.com, LLC HipCricket, Inc. AdXpose, Inc. Network Solutions, LLC Carnegie Learning, Inc. Griptonite Inc. ChipIn, Inc. Instructables, Inc. Asankya, Inc. Blammo Games Inc. Center'd Corporation Dotomi, Inc. Target TTM Revenue ($mm) $136.1 $16.1 $931.1 $8.8 Implied Enterprise EV/ Revenue Value ($mm) $66.0 $31.0 $443.7 3.3x $74.4 4.6x $30.7 $10,300.6 11.1x $25.2 $75.5 $14.0 $17.7 $1,775.0 $57.4 6.5x $19.4 $755.5 $75.0 $57.8 $32.0 $21.9 $278.2 -
SEG Software Index Category Performance
SEG Software Index: All Categories

Category Name SEG Software Index Billing & Service Management Business Intelligence Content/Document Management Data Management & Integration Development Tools & Open Source Education & eLearning Electronic Design Automation Engineering, PLM & CAD/CAM Software Enterprise Resource Planning Financial Services Healthcare IT Conglomerates Mobile Solutions/Content Multimedia, Graphics, Digital Media Networking & Networking Performance Mgmt. Security Storage & Systems Management Software Supply Chain Management & Logistics Vertical - Finance Vertical - Other Video Games Workforce & Service Management Market Cap $986.6 $630.3 $1,416.6 $11,215.6 $4,049.1 $7,632.1 $369.2 $347.7 $2,113.9 $430.2 $884.1 $672.8 $141,998.2 $192.8 $421.9 $774.1 $803.0 $11,378.2 $360.2 $1,298.0 $943.1 $3,117.8 $649.8 EV $905.2 $610.4 $1,270.2 $10,685.1 $3,647.9 $6,721.6 $365.8 $322.0 $2,103.1 $554.0 $787.4 $758.5 $129,541.2 $132.0 $426.8 $652.9 $729.4 $10,479.8 $255.1 $1,419.1 $941.4 $2,994.5 $914.8 TTM Revenue $355.3 $328.4 $326.9 $2,541.2 $773.7 $964.9 $197.5 $142.0 $626.7 $319.3 $357.8 $231.7 $69,943.0 $123.1 $632.7 $171.4 $412.3 $3,314.8 $218.6 $349.9 $323.6 $2,158.2 $429.2 TTM Gross Margin 68.1% 51.2% 79.2% 70.2% 74.8% 77.7% 80.7% 81.5% 85.3% 61.4% 57.2% 63.5% 61.8% 65.4% 66.7% 79.7% 82.5% 76.4% 55.4% 52.4% 56.3% 48.9% 62.7% TTM EBITDA Margin 20.5% 20.4% 9.2% 26.6% 23.5% 29.3% 22.8% 10.7% 20.3% 11.3% 22.5% 23.7% 25.8% 9.9% 21.1% 22.6% 20.9% 23.1% 9.9% 31.7% 18.6% 7.9% 7.8% TTM Revenue Growth EV/ Revenue 16.0% 2.2x 18.5% 1.3x 26.3% 4.1x 16.4% 2.6x 20.8% 2.9x 24.3% 2.6x 12.5% 3.3x 12.0% 1.6x 14.2% 2.4x 20.6% 1.7x 7.2% 2.0x 27.3% 3.3x 7.9% 2.1x 16.4% 1.8x 17.6% 3.2x 21.2% 3.8x 12.8% 2.3x 10.8% 2.1x 14.4% 1.8x 15.6% 3.7x 15.5% 2.9x 0.1% 1.2x 11.9% 2.1x EV/ Forward Forward EBITDA EV/ Revenue EV/ EBITDA 10.6x 2.2x 8.1x 5.8x 1.2x 5.8x 35.1x 3.2x 20.2x 9.8x 2.2x 8.1x 13.0x 2.7x 10.9x 6.9x 2.6x 6.4x 13.4x 2.9x 12.9x 14.4x 1.3x 6.3x 12.5x 2.2x 7.8x 8.9x 1.5x 6.7x 9.0x 1.9x 7.5x 18.0x 2.6x 9.4x 6.1x 2.0x 5.7x 15.9x 0.9x 9.4x 12.7x 3.0x 7.6x 20.4x 3.2x 11.2x 10.3x 2.2x 9.1x 9.5x 2.0x 6.8x 10.2x 1.8x 7.8x 11.1x 3.3x 9.0x 12.2x 2.7x 11.7x 9.1x 1.1x 7.0x 13.5x 1.8x 8.8x YoY Stock Market Return 19.6% 2.7% 58.8% 36.9% 33.3% 16.9% 8.5% 23.3% 3.8% 8.9% 14.6% 40.2% 13.4% -2.3% 1.6% 9.1% 12.4% 18.0% 13.8% 17.0% 35.4% 53.8% 27.3%
Income Statement Analysis (Median) TTM Revenue Growth TTM EBITDA Growth TTM Earnings Growth Gross Profit Margin EBITDA Margin Net Income Margin SG&A Expenses as a % of Total Revenue R&D Expenses as a % of Total Revenue Balance Sheet Analysis (Median) Current Ratio Quick Ratio Cash as Percent of Market Cap Avg Days Outstanding: Accounts Receivable Avg Days Outstanding: Accounts Payable Working Capital to TTM Operating Expense Ratio Cash Flow Statement Analysis (Median) Levered FCF Margin Cash from Operations Growth (YoY) Cash from Investing Growth (YoY) Cash from Financing Growth (YoY) Levered FCF Growth (YoY)
SEG SW Index Software Stock Market Return: Jan - August 2011

16.0% 22.2% 26.0% 68.1% 20.5% 10.1% 34.3% 13.5%
2.1 1.8 17.9% 65 40 0.4
12.4% 13.9% -4.0% -11.4% 0.6%
15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% -7% -8% -9% -10% -11% -12% -13% -14%
DOW S&P NASDAQ SEG SW Index
August 2011 Monthly Flash Report
SEG Software Index Category: Billing and Service Management

Company Name Amdocs Limited AsiaInfo Holdings, Inc. CSG Systems International, Inc. Evolving Systems, Inc. MIND C.T.I. Ltd. Synchronoss Technologies, Inc. Ticker DOX ASIA CSGS EVOL MNDO SNCR Median: Market Cap $4,969.5 $822.9 $437.7 $73.3 $39.9 $1,035.0 $630.3 EV $3,835.6 $603.4 $617.5 $57.1 $23.9 $878.4 $610.4 TTM Revenue $3,127.7 $455.5 $652.2 $35.1 $19.0 $201.4 $328.4 TTM Gross Margin 35.1% 44.0% 50.7% 65.1% 69.3% 51.8% 51.2% TTM EBITDA Margin 18.9% 25.9% 21.9% 17.9% 29.9% 14.6% 20.4% TTM Revenue Growth EV/ Revenue 6.8% 1.2x 104.5% 1.3x 26.9% 0.9x 10.0% 1.6x -0.9% 1.3x 42.8% 4.4x 18.5% 1.3x EV/ Forward Forward EBITDA EV/ Revenue EV/ EBITDA 6.5x 1.2x 5.8x 5.1x 1.2x 4.8x 4.3x 0.8x 3.5x 9.1x 2.6x 19.8x 4.2x n/a n/a 29.9x 3.5x 13.2x 5.8x 1.2x 5.8x YoY Stock Market Return 4.7% -35.9% -27.0% 0.7% 17.0% 75.7% 2.7%
18.5% 7.7% -0.1% 51.2% 20.4% 14.7% 18.7% 13.6%
Billing and Service Management Software Stock Market Return: Jan - August 2011
25% 20% 15% 10% 5%
2.8 2.2 24.8% 84 30 0.8
0% -5% -10% -15%
1.8% -14.3% -266.1% 89.4% -67.3%
-20% -25%
Billing and Service Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Business Intelligence

Company Name Actuate Corporation Informatica Corporation MicroStrategy Incorporated Pegasystems Inc. PROS Holdings Qlik Technologies Ticker BIRT INFA MSTR PEGA PRO QLIK Median: Market Cap $301.0 $4,457.1 $1,316.1 $1,517.0 $427.2 $2,106.8 $1,416.6 EV $246.8 $3,893.0 $1,123.0 $1,417.4 $362.8 $1,932.3 $1,270.2 TTM Revenue $137.9 $720.0 $513.8 $385.1 $81.1 $268.7 $326.9 TTM Gross Margin 83.4% 84.1% 75.1% 60.7% 74.5% 88.9% 79.2% TTM EBITDA Margin 21.4% 24.7% 7.9% 6.7% 10.5% 5.3% 9.2% TTM Revenue Growth EV/ Revenue 15.0% 1.8x 27.4% 5.4x 25.1% 2.2x 30.5% 3.7x 18.2% 4.5x 39.2% 7.2x 26.3% 4.1x EV/ Forward EBITDA EV/ Revenue 8.3x 1.8x 21.9x 4.6x 27.6x 1.9x 54.9x 3.0x 42.7x 3.4x 136.2x 5.4x 35.1x 3.2x Forward EV/ EBITDA 6.9x 16.4x 22.8x 19.3x 21.1x 39.2x 20.2x YoY Stock Market Return 59.9% 30.0% 57.7% 84.5% 101.5% 36.2% 58.8%
Business Intelligence Software Stock Market Return: Jan - August 2011

26.3% 37.1% -31.8% 79.2% 9.2% 5.7% 43.7% 16.6% 50%
40%
30%
20% 1.7 1.6 14.7% 72 30 0.8
10%
0%
-10% 3.8% 6.4% 5.1% -56.6% -26.7%
-20%
Business Intelligence S&P NASDAQ SEG SW Index
SEG Software Index Category: Content and Document Management

Company Name Adobe Systems Incorporated Autonomy Corp. EasyLink Services International EMC IBM Open Text Corporation Ticker ADBE LSE:AU. ESIC EMC IBM OTEX Median: Market Cap $12,465.2 $9,966.0 $150.8 $46,647.1 $205,308.4 $3,382.6 $11,215.6 EV $11,358.1 $10,012.2 $239.9 $45,652.1 $223,373.4 $3,396.1 $10,685.1 TTM Revenue $4,049.2 $931.1 $137.9 $18,553.9 $104,562.0 $1,033.3 $2,541.2 TTM Gross Margin 89.5% 87.3% 66.8% 59.8% 46.4% 73.6% 70.2% TTM EBITDA Margin 35.8% 44.1% 24.6% 22.4% 24.7% 28.6% 26.6% TTM Revenue Growth EV/ Revenue 24.3% 2.8x 12.2% 10.8x 67.8% 1.7x 19.5% 2.5x 7.4% 2.1x 13.3% 3.3x 16.4% 2.6x EV/ Forward EBITDA EV/ Revenue 7.8x 2.7x 24.4x n/a 7.1x 1.2x 11.0x 2.2x 8.7x 2.0x 11.5x 2.8x 9.8x 2.2x Forward EV/ EBITDA 6.4x n/a n/a 7.8x 8.4x 9.6x 8.1x YoY Stock Market Return -8.9% 71.2% 106.7% 23.8% 39.6% 34.1% 36.9%
Content and Document Management Software Stock Market Return: Jan - August 2011
16.4% 23.7% 29.5% 70.2% 26.6% 14.8% 31.7% 12.5% 30% 25% 20% 15% 10% 1.2 1.0 9.9% 50 45 0.1 5% 0% -5% -10% 12.9% 20.8% -95.9% -53.1% -8.7% -15%
Content and Document Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Data Management and Integration

Company Name Guidance Software, Inc. IBM Informatica Corporation Oracle Corporation Pervasive Software Inc. TIBCO Software Inc. Ticker GUID IBM INFA ORCL PVSW TIBX Median: Market Cap $161.0 $205,308.4 $4,457.1 $141,998.2 $104.5 $3,641.1 $4,049.1 EV $133.5 $223,373.4 $3,893.0 $129,541.2 $66.0 $3,402.9 $3,647.9 TTM Revenue $97.3 $104,562.0 $720.0 $35,622.0 $48.4 $827.5 $773.7 TTM Gross Margin 70.5% 46.4% 84.1% 76.4% 86.7% 73.1% 74.8% TTM EBITDA Margin -0.7% 24.7% 24.7% 40.8% 10.5% 22.3% 23.5% TTM Revenue Growth EV/ Revenue 18.8% 1.4x 7.4% 2.1x 27.4% 5.4x 32.8% 3.6x 2.5% 1.4x 22.7% 4.1x 20.8% 2.9x EV/ Forward EBITDA EV/ Revenue n/a 1.2x 8.7x 2.0x 21.9x 4.6x 8.9x 3.3x 13.0x 1.3x 18.5x 3.6x 13.0x 2.7x Forward EV/ EBITDA 95.3x 8.4x 16.4x 6.7x 9.2x 12.6x 10.9x YoY Stock Market Return 27.5% 39.6% 30.0% 28.5% 36.6% 54.5% 33.3%
Data Management and Integration Software Stock Market Return: Jan - August 2011
20.8% 20.3% 18.3% 74.8% 23.5% 12.9% 41.0% 16.5% 30% 25% 20% 15% 10% 2.0 1.8 14.9% 64 37 0.5 5% 0% -5% -10% -15%
Data Management and Integration S&P NASDAQ SEG SW Index
13.0% 10.9% -16.9% 7.1% 5.0%
SEG Software Index Category: Development Tools and Open Source

Company Name Adobe Systems Incorporated BSQUARE Corporation Magic Software Enterprises Ltd. Microsoft Corporation Oracle Corporation Progress Software Corporation Red Hat, Inc. Ticker ADBE BSQR MGIC MSFT ORCL PRGS RHT Median: Market Cap $12,465.2 $50.1 $161.7 $222,861.9 $141,998.2 $1,391.9 $7,632.1 $7,632.1 EV $11,358.1 $27.9 $115.4 $184,628.9 $129,541.2 $1,003.4 $6,721.6 $6,721.6 TTM Revenue $4,049.2 $102.4 $100.3 $69,943.0 $35,622.0 $542.8 $964.9 $964.9 TTM Gross Margin 89.5% 21.4% 41.1% 77.7% 76.4% 84.8% 83.5% 77.7% TTM EBITDA Margin 35.8% 4.3% 16.6% 42.9% 40.8% 29.3% 21.3% 29.3% TTM Revenue Growth EV/ Revenue 24.3% 2.8x 35.7% 0.3x 45.0% 1.2x 11.9% 2.6x 32.8% 3.6x 6.1% 1.8x 23.2% 7.0x 24.3% 2.6x EV/ Forward EBITDA EV/ Revenue 7.8x 2.7x 6.4x n/a 6.9x 1.0x 6.1x 2.5x 8.9x 3.3x 6.3x 1.8x 32.7x 6.0x 6.9x 2.6x Forward EV/ EBITDA 6.4x n/a n/a 5.7x 6.7x 5.5x 20.2x 6.4x YoY Stock Market Return -8.9% 63.2% 84.7% 13.4% 28.5% 16.9% 14.4% 16.9%
Development Tools and Open Source Software Stock Market Return: Jan - August 2011
24.3% 29.5% 53.7% 77.7% 29.3% 12.5% 26.4% 12.8% 20% 15% 10% 5% 0% -5% 2.7 2.5 22.1% 62 32 0.7 -10% -15% -20% -25% 18.4% 27.5% -21.1% 37.0% -0.7% -30% -35%
Development Tools and Open Source S&P NASDAQ SEG SW Index
SEG Software Index Category: Education and eLearning

Company Name Archipelago Learning, Inc. Blackboard Inc. Renaissance Learning, Inc. Rosetta Stone, Inc. Ticker ARCL BBBB RLRN RST Median: Market Cap $244.7 $1,483.9 $454.7 $283.8 $369.2 EV $286.1 $1,610.2 $445.4 $168.6 $365.8 TTM Revenue $68.1 $481.4 $136.1 $258.9 $197.5 TTM Gross Margin 90.9% 68.7% 79.1% 82.3% 80.7% TTM EBITDA Margin 31.3% 16.4% 29.1% -4.3% 22.8% TTM Revenue Growth EV/ Revenue 39.8% 4.2x 18.2% 3.3x 6.8% 3.3x -3.8% 0.7x 12.5% 3.3x EV/ Forward EBITDA EV/ Revenue 13.4x 3.6x 20.3x 2.8x 11.3x 3.1x n/a 0.6x 13.4x 2.9x Forward EV/ EBITDA 14.2x 11.8x 10.4x 14.0x 12.9x YoY Stock Market Return -10.7% 27.6% 95.0% -21.2% 8.5%
Education and eLearning Software Stock Market Return: Jan - August 2011
12.5% -1.9% -44.4% 80.7% 22.8% 3.2% 51.6% 10.9% 15%
10%
5%
0% 0.8 0.7 10.3% 59 51 -0.2
-5%
-10%
-15% 17.4% -7.1% -42.0% -53.4% -2.3%
-20%
Education & eLearning S&P NASDAQ SEG SW Index
SEG Software Index Category: Electronic Design Automation

Company Name Cadence Design Systems, Inc. Magma Design Automation, Inc. Mentor Graphics Corporation PDF Solutions, Inc. Synopsys, Inc. Ticker SCIL LAVA MENT PDFS SNPS Median: Market Cap $53.1 $347.7 $1,242.9 $140.9 $3,718.1 $347.7 EV $44.4 $322.0 $1,342.9 $99.2 $2,679.8 $322.0 TTM Revenue $42.8 $142.0 $990.0 $63.2 $1,520.6 $142.0 TTM Gross Margin 75.2% 86.4% 85.1% 61.1% 81.5% 81.5% TTM EBITDA Margin -6.0% 10.7% 16.3% 7.7% 20.6% 10.7% TTM Revenue Growth EV/ Revenue -27.9% 1.0x 12.0% 2.3x 24.6% 1.4x 6.7% 1.6x 13.2% 1.8x 12.0% 1.6x EV/ Forward EBITDA EV/ Revenue n/a 1.0x 21.2x 1.9x 8.3x 1.3x 20.3x 1.2x 8.6x 1.7x 14.4x 1.3x Forward EV/ EBITDA 88.8x 6.7x 6.3x 6.2x 5.9x 6.3x YoY Stock Market Return -41.5% 62.6% 23.3% 45.4% 13.2% 23.3%
Electronic Design Automation Software Stock Market Return: Jan - August 2011
12.0% 117.4% 94.4% 81.5% 10.7% -0.1% 43.2% 29.3% 40%
30%
20%
1.6 1.4 16.3% 69 19 0.2
10%
0%
-10% 8.5% 113.2% -58.2% -87.3% 11.0%
-20%
Electronic Design Automation S&P NASDAQ SEG SW Index
SEG Software Index Category: Engineering, PLM & CAD/CAM

Company Name ANSYS, Inc. Autodesk, Inc. Cimatron Ltd. Dassault Systmes GSE Systems Inc. Parametric Technology Corporation Stratasys, Inc. Ticker ANSS ADSK CIMT DSY GVP PMTC SSYS Median: Market Cap $4,978.7 $6,452.2 $35.9 $9,892.5 $39.6 $2,113.9 $489.7 $2,113.9 EV $4,497.3 $5,078.9 $21.4 $8,490.5 $21.0 $2,103.1 $474.1 $2,103.1 TTM Revenue $626.7 $2,079.0 $38.6 $2,474.6 $47.8 $1,095.6 $135.9 $626.7 TTM Gross Margin 88.0% 90.0% 85.3% 86.0% 24.2% 69.4% 51.4% 85.3% TTM EBITDA Margin 49.1% 20.3% 12.3% 30.0% -1.0% 14.9% 24.3% 20.3% TTM Revenue Growth EV/ Revenue 13.5% 7.2x 14.2% 2.4x 16.0% 0.6x 28.3% 3.4x 8.0% 0.4x 10.9% 1.9x 25.1% 3.5x 14.2% 2.4x EV/ Forward EBITDA EV/ Revenue 14.6x 6.0x 12.0x 2.2x 4.5x n/a 11.4x n/a n/a 0.4x 12.9x 1.6x 14.4x 2.8x 12.5x 2.2x Forward EV/ EBITDA 11.5x 7.8x n/a n/a n/a 7.5x n/a 7.8x YoY Stock Market Return 39.2% 1.7% n/a 34.7% -42.7% 5.8% 1.9% 3.8%
Engineering, PLM & CAD/CAM Software Stock Market Return: Jan - August 2011
14.2% 25.3% 44.9% 85.3% 20.3% 12.1% 38.8% 17.4% 15% 10% 5% 0% -5% 2.2 2.0 18.3% 86 65 0.5 -10% -15% -20% -25% -30%
Engineering, PLM & CAD/CAM S&P NASDAQ SEG SW Index
12.6% 13.0% -111.2% 23.6% -2.2%
SEG Software Index Category: Enterprise Resource Planning

Company Name CDC Software Corporation Deltek Oracle Corporation QAD Inc. SAP Ticker CDCS PROJ ORCL QADA SAP Median: Market Cap $103.6 $430.2 $141,998.2 $179.8 $65,233.8 $430.2 EV $72.8 $554.0 $129,541.2 $117.3 $65,119.9 $554.0 TTM Revenue $218.6 $319.3 $35,622.0 $239.2 $19,433.8 $319.3 TTM Gross Margin 54.5% 61.4% 76.4% 57.1% 70.2% 61.4% TTM EBITDA Margin 11.3% 8.3% 40.8% 8.6% 35.7% 11.3% TTM Revenue Growth EV/ Revenue 6.1% 0.3x 21.5% 1.7x 32.8% 3.6x 13.3% 0.5x 20.6% 3.4x 20.6% 1.7x EV/ Forward EBITDA EV/ Revenue 3.0x 0.3x 20.8x 1.5x 8.9x 3.3x 5.7x 0.5x 9.4x 3.1x 8.9x 1.5x Forward EV/ EBITDA 3.0x 7.2x 6.7x 4.1x 8.5x 6.7x YoY Stock Market Return -30.3% -7.7% 28.5% n/a 25.5% 8.9%
Enterprise Resource Planning Software Stock Market Return: Jan - August 2011
20.6% 21.8% 23.9% 61.4% 11.3% 6.1% 34.5% 14.2% 20% 15% 10% 5% 0% 1.1 1.0 18.7% 77 56 0.1 -5% -10% -15% -20% -25%
Enterprise Resource Planning S&P NASDAQ SEG SW Index
18.7% 31.4% -84.1% 63.1% 36.6%
SEG Software Index Category: Financial Services

Company Name ACI Worldwide, Inc. Bottomline Technologies DST Systems, Inc. EPIQ Systems, Inc. Fair Isaac Corporation Fiserv NetSol Technologies Inc. S1 Corporation Ticker ACIW EPAY DST EPIQ FICO FISV NTWK SONE Median: Market Cap $1,001.0 $781.7 $2,183.5 $447.0 $986.6 $7,902.8 $50.3 $502.2 $884.1 EV $905.2 $669.6 $2,960.2 $641.5 $1,240.1 $10,942.8 $72.3 $430.5 $787.4 TTM Revenue $456.2 $189.4 $2,321.8 $259.4 $614.5 $4,216.0 $40.4 $227.3 $357.8 TTM Gross Margin 70.3% 54.5% 19.6% 59.9% 69.7% 41.9% 72.6% 46.5% 57.2% TTM EBITDA Margin 20.9% 13.9% 17.0% 24.0% 25.0% 30.7% 41.8% 5.4% 22.5% TTM Revenue Growth EV/ Revenue 11.1% 2.0x 19.9% 3.5x 1.7% 1.3x 11.2% 2.5x 2.0% 2.0x 3.2% 2.6x 22.6% 1.8x 2.1% 1.9x 7.2% 2.0x EV/ Forward EBITDA EV/ Revenue 9.5x 1.9x 25.4x 3.0x 7.5x 1.6x 10.3x 2.0x 8.1x 1.9x 8.5x 2.5x 4.3x 1.7x 35.1x 1.7x 9.0x 1.9x Forward EV/ EBITDA 8.0x 12.9x 5.8x 7.1x 6.2x 7.5x n/a 12.7x 7.5x YoY Stock Market Return 57.5% 64.0% 15.2% 0.6% 14.1% 11.6% 12.2% 89.5% 14.6%
Financial Services Software Stock Market Return: Jan - August 2011

7.2% 3.4% -6.4% 57.2% 22.5% 10.7% 26.6% 11.5% 15%
10%
5%
1.9 1.6 14.3% 69 36 0.3
0%
-5%
-10% 10.8% 18.9% -20.0% 54.2% 51.0%
-15%
Financial Services Software S&P NASDAQ SEG SW Index
SEG Software Index Category: Healthcare

Company Name Accelrys Inc. Allscripts Healthcare Solutions Inc. Cerner Corporation Computer Programs and Sys, Inc. eResearchTechnology, Inc. MedAssets Merge Healthcare Omnicell, Inc. Quality Systems, Inc. Simulations Plus, Inc. Ticker ACCL MDRX CERN CPSI ERT MDAS MRGE OMCL QSII SLP Median: Market Cap $359.2 $3,374.9 $11,150.7 $783.5 $256.5 $672.8 $530.7 $518.2 $2,695.8 $50.2 $672.8 EV $243.6 $3,683.3 $10,583.5 $758.5 $244.9 $1,573.9 $735.8 $337.0 $2,570.7 $40.3 $758.5 TTM Revenue $114.8 $1,240.0 $1,978.8 $173.2 $174.6 $480.7 $199.6 $231.7 $370.9 $11.8 $231.7 TTM Gross Margin 71.0% 47.4% 81.6% 45.0% 42.5% 75.6% 63.5% 54.8% 64.8% 75.9% 63.5% TTM EBITDA Margin -7.0% 17.0% 26.7% 23.7% 24.9% 27.6% 22.6% 7.2% 30.3% 32.7% 23.7% TTM Revenue Growth EV/ Revenue n/a 2.1x n/a 3.0x 12.2% 5.3x 27.3% 4.4x 80.3% 1.4x 31.1% 3.3x 134.4% 3.7x 6.6% 1.5x 20.4% 6.9x 14.1% 3.4x 27.3% 3.3x EV/ Forward Forward EBITDA EV/ Revenue EV/ EBITDA n/a 1.6x 7.3x 17.5x 2.4x 7.9x 20.1x 4.7x 14.7x 18.5x 3.9x 15.8x 5.6x 1.3x 4.3x 11.8x 2.6x 8.3x 16.3x 2.9x 11.8x 20.1x 1.3x 9.4x 22.9x 5.7x 17.3x 10.4x 3.0x 7.2x 18.0x 2.6x 9.4x YoY Stock Market Return 7.4% 7.8% 81.1% 73.3% -29.3% -42.3% 134.9% 40.2% 64.2% 31.3% 40.2%
Healthcare Software Stock M k t R t H lth S ft St k Market Return: J - A Jan August 2011 t

27.3% 34.1% 29.1% 63.5% 23.7% 4.6% 32.9% 7.8% 25% 20% 15% 10% 5% 2.5 2.1 7.3% 78 40 0.3 0% -5% -10% -15% -20%
Healthcare S&P NASDAQ SEG SW Index
10.8% 23.2% -11.6% -100.3% 2.3%
SEG Software Index Category: IT Conglomerates

Company Name Cisco Systems, Inc. Hewlett Packard IBM Microsoft Corporation Oracle Corporation Ticker CSCO HPQ IBM MSFT ORCL Median: Market Cap $86,187.9 $53,990.3 $205,308.4 $222,861.9 $141,998.2 $141,998.2 EV $58,424.9 $67,128.3 $223,373.4 $184,628.9 $129,541.2 $129,541.2 TTM Revenue $43,218.0 $128,401.0 $104,562.0 $69,943.0 $35,622.0 $69,943.0 TTM Gross Margin 61.8% 24.2% 46.4% 77.7% 76.4% 61.8% TTM EBITDA Margin 25.8% 14.0% 24.7% 42.9% 40.8% 25.8% TTM Revenue Growth EV/ Revenue 7.9% 1.4x 3.9% 0.5x 7.4% 2.1x 11.9% 2.6x 32.8% 3.6x 7.9% 2.1x EV/ Forward Forward EBITDA EV/ Revenue EV/ EBITDA 5.2x 1.3x 4.2x 3.7x 0.5x 4.0x 8.7x 2.0x 8.4x 6.1x 2.5x 5.7x 8.9x 3.3x 6.7x 6.1x 2.0x 5.7x YoY Stock Market Return -21.6% -32.3% 39.6% 13.4% 28.5% 13.4%
IT Conglomerates Software Stock Market Return: Jan - August 2011

7.9% 6.8% 9.7% 61.8% 25.8% 15.0% 21.5% 12.7%
20% 15% 10% 5% 0% -5% -10% -15%
2.6 2.3 23.1% 61 48 1.1
13.9% 9.7% 20.4% 7.1% -6.5%
-20%
IT Conglomerates S&P NASDAQ SEG SW Index
SEG Software Index Category: Mobile Solutions/Content

Company Name Access AutoNavi Holdings Bitstream Inc. DigitalGlobe, Inc. Glu Mobile, Inc. Gree Myriad Group Motricity Openwave Systems Inc. Opera PCTEL, Inc. Sky-mobi Limited Smith Micro Software, Inc. TeleCommunication Systems, Inc. Trunkbow International Holdings Velti Plc Ticker TSE:4813 AMAP BITS DGI GLUU TSE:3632 SWX:MYRN MOTR OPWV OB:OPERA PCTI MOBI SMSI TSYS
TBOW VELT
Median:
Market Cap $336.7 $743.1 $58.8 $1,048.3 $192.6 $7,411.1 $188.7 $108.2 $162.8 $640.3 $110.8 $193.0 $67.5 $216.3 $108.4 $582.3 $192.8
EV $31.4 $579.8 $54.9 $1,248.5 $166.2 $7,121.0 $153.2 $105.2 $81.6 $555.4 $54.1 $110.9 $5.5 $304.3 $90.0 $444.9 $132.0
TTM Revenue $254.9 $105.4 $26.6 $322.9 $65.2 $795.8 $101.0 $140.7 $155.5 $148.2 $73.2 $104.9 $103.2 $396.3 $30.5 $142.0 $123.1
TTM Gross Margin 68.0% 69.7% 52.7% 85.2% 77.6% 91.4% 66.7% 64.1% 60.3% 45.0% 45.1% 30.4% 85.3% 36.8% 73.8% 60.2% 65.4%
TTM EBITDA Margin 19.2% 35.6% -13.8% 47.3% -3.7% 48.8% 8.2% 14.9% -9.8% 22.9% 1.9% 5.4% -2.4% 11.5% 54.1% 7.0% 9.9%
TTM Revenue Growth EV/ Revenue -43.8% 0.1x n/a 5.5x 21.7% 2.1x 6.6% 3.9x -9.4% 2.5x 82.2% 8.9x -4.2% 1.5x 24.7% 0.7x -15.1% 0.5x 32.9% 3.7x 18.3% 0.7x n/a 1.1x -13.1% 0.1x 14.5% 0.8x 104.4% 3.0x 24.5% 3.1x 16.4% 1.8x
EV/ Forward EBITDA EV/ Revenue 0.6x n/a 15.4x 4.2x n/a n/a 8.2x 3.4x n/a 2.3x 18.3x n/a 18.5x n/a 5.0x 0.8x n/a 0.6x 16.3x n/a 39.8x 0.7x 19.5x 1.0x n/a 0.1x 6.7x 0.6x 5.5x n/a 44.7x 2.2x 15.9x 0.9x
Forward EV/ EBITDA n/a 10.6x n/a 5.7x n/a n/a n/a 15.4x 52.3x n/a 6.5x 10.4x n/a 4.6x n/a 8.4x 9.4x
YoY Stock Market Return -36.8% -2.3% -10.2% -26.1% 169.9% 119.1% -23.9% -68.3% 17.9% 48.2% 11.0% n/a -75.3% 23.1% n/a n/a -2.3%
Mobile Solutions/Content Software Stock Market Return: Jan - August 2011

16.4% -1.9% -5.5% 65.4% 9.9% -2.7% 32.3% 20.2% 15% 10% 5% 0% -5% 2.3 2.0 20.2% 66 55 0.6 -10% -15% -20% -25% -30%
Mobile Solutions/Content S&P NASDAQ SEG SW Index
-1.2% -26.4% 41.1% -32.0% -74.0%
SEG Software Index Category: Multimedia, Graphics and Digital Media

Company Name Adobe Systems Incorporated Avid Technology, Inc. Monotype Imaging Holdings Nuance Communications, Inc. RealNetworks, Inc. Rovi Corporation SeaChange International, Inc. Ticker ADBE AVID TYPE NUAN RNWK.D ROVI SEAC Median: Market Cap $12,465.2 $379.2 $421.9 $5,671.7 $316.4 $5,439.6 $252.6 $421.9 EV $11,358.1 $354.6 $426.8 $6,052.1 -$11.5 $6,025.5 $164.3 $426.8 TTM Revenue $4,049.2 $688.1 $118.6 $1,261.5 $355.3 $632.7 $212.7 $632.7 TTM Gross Margin 89.5% 52.7% 92.6% 66.7% 63.2% 85.0% 49.9% 66.7% TTM EBITDA Margin 35.8% 3.1% 41.1% 21.1% 0.9% 38.6% 10.5% 21.1% TTM Revenue Growth EV/ Revenue 24.3% 2.8x 6.7% 0.5x 22.2% 3.6x 17.6% 4.8x -29.4% n/a 22.9% 9.5x 0.1% 0.8x 17.6% 3.2x EV/ Forward EBITDA EV/ Revenue 7.8x 2.7x 16.5x 0.5x 8.8x 3.3x 22.8x 4.0x n/a n/a 24.7x 7.1x 7.3x 0.7x 12.7x 3.0x Forward EV/ EBITDA 6.4x 5.9x 7.6x 10.1x n/a 14.6x n/a 7.6x YoY Stock Market Return -8.9% -11.0% 58.4% 26.7% -14.7% 12.4% 1.6% 1.6%
Multimedia, Graphics and Digital Media Software Stock Market Return: Jan - August 2011
17.6% 35.9% 122.0% 66.7% 21.1% 3.6% 39.1% 17.3% 20% 15% 10% 5% 0% 2.0 1.9 12.6% 49 47 0.4 -5% -10% -15% -20% -25%
Multimedia, Graphics & Digital Media S&P NASDAQ SEG SW Index
18.4% 32.2% 63.7% -85.7% 43.8%
SEG Software Index Category: Networking/Network Performance Mgmt

Company Name Allot Communications Ltd. Cisco Systems, Inc. F5 Networks, Inc. NetScout Systems Inc. OPNET Technologies, Inc. Radware Ltd. SolarWinds, Inc. Ticker ALLT CSCO FFIV NTCT OPNT RDWR SWI Median: Market Cap $312.2 $86,187.9 $6,584.9 $590.0 $774.1 $557.9 $1,804.7 $774.1 EV $251.3 $58,424.9 $5,999.6 $472.5 $652.9 $469.3 $1,635.2 $652.9 TTM Revenue $66.5 $43,218.0 $1,091.5 $287.0 $157.1 $155.6 $171.4 $171.4 TTM Gross Margin 71.6% 61.8% 81.8% 78.9% 79.9% 79.7% 94.5% 79.7% TTM EBITDA Margin 12.2% 25.8% 32.0% 22.6% 18.3% 13.9% 46.8% 22.6% TTM Revenue Growth EV/ Revenue 37.2% 3.8x 7.9% 1.4x 36.0% 5.5x 6.7% 1.6x 21.2% 4.2x 20.0% 3.0x 26.8% 9.5x 21.2% 3.8x EV/ Forward EBITDA EV/ Revenue 31.0x 3.2x 5.2x 1.3x 17.2x 4.6x 7.3x 1.5x 22.7x 3.5x 21.6x 2.7x 20.4x 7.6x 20.4x 3.2x Forward EV/ EBITDA n/a 4.2x 11.2x 5.5x 15.0x n/a 15.3x 11.2x YoY Stock Market Return 158.6% -21.6% -6.7% -12.8% 119.0% 9.1% 71.8% 9.1%
Networking/Network Performance Mgmt Software Stock Market Return: Jan - August 2011
21.2% 60.5% 69.1% 79.7% 22.6% 11.3% 41.2% 14.7% 30%
20%
10%
0% 2.6 2.4 19.5% 64 33 0.7
-10%
-20%
-30% 13.3% 8.2% 35.1% -477.4% 4.7%
-40%
Networking & Network Performance Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Security

Company Name Blue Coat Systems, Inc. Check Point Software Tech Ltd. Commtouch Software Ltd. Sourcefire, Inc. Symantec Corporation Trend Micro VASCO Data Security International Websense, Inc. Ticker BCSI CHKP CTCH FIRE SYMC TSE:4704 VDSI WBSN Median: Market Cap $620.6 $11,301.1 $78.8 $787.5 $12,858.1 $4,132.3 $270.5 $818.6 $803.0 EV $357.6 $10,150.6 $62.8 $653.4 $12,640.1 $2,637.9 $185.9 $805.4 $729.4 TTM Revenue $474.1 $1,173.6 $21.2 $141.4 $6,410.0 $1,196.4 $138.6 $350.5 $412.3 TTM Gross Margin 77.6% 88.1% 83.0% 78.7% 85.2% 81.9% 65.5% 83.5% 82.5% TTM EBITDA Margin 16.2% 54.8% 21.8% 9.1% 27.1% 33.0% 14.7% 19.9% 20.9% TTM Revenue Growth EV/ Revenue -5.7% 0.8x 16.0% 8.6x 31.6% 3.0x 18.7% 4.6x 7.1% 2.0x 0.1% 2.2x 35.0% 1.3x 9.5% 2.3x 12.8% 2.3x EV/ Forward EBITDA EV/ Revenue 4.7x 0.8x 15.8x 7.8x 13.6x 2.5x 50.6x 3.9x 7.3x 1.8x 6.7x n/a 9.1x 1.2x 11.6x 2.2x 10.3x 2.2x Forward EV/ EBITDA 6.4x 13.1x n/a 21.5x 5.1x n/a 10.1x 8.0x 9.1x YoY Stock Market Return -22.0% 56.1% -8.7% 8.9% 25.8% 15.9% 18.9% 5.8% 12.4%
y ) Income Statement Analysis ( (Median) TTM Revenue Growth TTM EBITDA Growth TTM Earnings Growth Gross Profit Margin EBITDA Margin Net Income Margin SG&A Expenses as a % of Total Revenue R&D Expenses as a % of Total Revenue Balance Sheet Analysis (Median) Current Ratio Quick Ratio Cash as Percent of Market Cap Avg Days Outstanding: Accounts Receivable Avg Days Outstanding: Accounts Payable Working Capital to TTM Operating Expense Ratio Cash Flow Statement Analysis (Median) Levered FCF Margin Cash from Operations Growth (YoY) Cash from Investing Growth (YoY) Cash from Financing Growth (YoY) Levered FCF Growth (YoY)
Security Software Stock Market Return: Jan - August 2011

12.8% 11.9% -5.8% 82.5% 20.9% 12.6% 48.5% 17.2% 25% 20% 15%
10% 5% 0% -5% -10%
2.5 2.3 17.4% 52 79 0.9
17.7% 6.7% -94.1% 6.2% 6.6%
-15%
Security S&P NASDAQ SEG SW Index
SEG Software Index Category: Storage and Systems Management

Company Name BMC Software, Inc. CA, Inc. Citrix Systems CommVault Systems, Inc. Compuware Corporation EMC FalconStor Software, Inc. IBM Network Appliance, Inc. Oracle Corporation Quest Software, Inc. Symantec Corporation VMWare Ticker BMC CA CTXS CVLT CPWR EMC FALC IBM NTAP ORCL QSFT SYMC VMW Median: Market Cap $7,127.9 $10,593.6 $11,378.2 $1,509.7 $1,849.3 $46,647.1 $152.8 $205,308.4 $14,009.3 $141,998.2 $1,479.9 $12,858.1 $39,847.8 $11,378.2 EV $5,867.3 $9,044.6 $10,479.8 $1,255.6 $1,654.5 $45,652.1 $115.3 $223,373.4 $10,560.2 $129,541.2 $1,265.4 $12,640.1 $36,594.7 $10,479.8 TTM Revenue $2,106.8 $4,523.0 $2,023.6 $340.0 $952.4 $18,553.9 $84.0 $104,562.0 $5,427.1 $35,622.0 $801.0 $6,410.0 $3,314.8 $3,314.8 TTM Gross Margin 76.1% 86.8% 90.3% 87.2% 68.1% 59.8% 73.1% 46.4% 64.3% 76.4% 88.8% 85.2% 82.8% 76.4% TTM EBITDA Margin 32.1% 35.2% 25.5% 13.6% 20.8% 22.4% -8.3% 24.7% 18.0% 40.8% 15.8% 27.1% 23.1% 23.1% TTM Revenue Growth EV/ Revenue 9.6% 2.8x 6.4% 2.0x 17.3% 5.2x 22.7% 3.7x 7.7% 1.7x 19.5% 2.5x 3.3% 1.4x 7.4% 2.1x 27.8% 1.9x 32.8% 3.6x 10.8% 1.6x 7.1% 2.0x 37.8% 11.0x 10.8% 2.1x EV/ Forward EBITDA EV/ Revenue 8.7x 2.6x 5.7x 1.8x 20.3x 4.5x 27.2x 3.2x 8.3x 1.5x 11.0x 2.2x n/a 1.3x 8.7x 2.0x 10.8x 1.6x 8.9x 3.3x 10.0x 1.4x 7.3x 1.8x 47.8x 9.0x 9.5x 2.0x Forward EV/ EBITDA 5.9x 4.9x 14.8x 16.8x 6.7x 7.8x n/a 8.4x 6.9x 6.7x 5.2x 5.1x 24.3x 6.8x YoY Stock Market Return 12.6% 16.7% 4.3% 38.1% 18.0% 23.8% 4.1% 39.6% -6.8% 28.5% -19.6% 25.8% 20.3% 18.0%
Storage and Systems Management Software Stock Market Return: Jan - August 2011
10.8% 26.4% 26.1% 76.4% 23.1% 11.7% 40.8% 11.6% 25% 20% 15% 10% 5% 1.4 1.2 16.8% 73 37 0.3 0% -5% -10% -15% 13.1% 14.1% 20.4% 6.5% 1.7% -20% -25%
Storage and Systems Management S&P NASDAQ SEG SW Index
SEG Software Index Category: Supply Chain Management & Logistics

Company Name American Software, Inc. Ariba, Inc. Aspen Technology, Inc. CDC Software Corporation JDA Software Group Manhattan Associates, Inc. ModusLink Global Solutions, Inc. Retalix Ltd. The Descartes Systems Group Inc. XATA Corporation Ticker AMSW.A ARBA AZPN CDCS JDAS MANH MLNK RTLX TSX:DSG XATA Median: Market Cap $211.8 $2,532.6 $1,578.5 $103.6 $1,123.3 $755.0 $179.1 $325.9 $394.5 $18.7 $360.2 EV $169.2 $2,322.1 $1,453.4 $72.8 $1,140.1 $645.7 $59.9 $189.7 $320.5 $50.2 $255.1 TTM Revenue $90.2 $446.7 $198.2 $218.6 $653.2 $305.6 $905.8 $218.7 $108.6 $64.8 $218.6 TTM Gross Margin 53.7% 63.5% 73.6% 54.5% 58.5% 56.3% 10.4% 41.3% 66.3% 51.2% 55.4% TTM EBITDA Margin 14.4% 7.2% -25.7% 11.3% 24.3% 17.3% 2.6% 8.6% 29.0% 7.3% 9.9% TTM Revenue Growth EV/ Revenue 17.9% 1.9x 39.7% 5.2x 19.1% 7.3x 6.1% 0.3x 32.5% 1.7x 9.5% 2.1x -1.7% 0.1x 10.9% 0.9x 28.8% 3.0x -7.1% 0.8x 14.4% 1.8x EV/ Forward EBITDA EV/ Revenue 13.0x 1.7x 71.9x 4.7x n/a 6.3x 3.0x 0.3x 7.2x 1.6x 12.2x 1.8x 2.6x n/a 10.1x 0.8x 10.2x 2.7x 10.6x n/a 10.2x 1.8x Forward EV/ EBITDA n/a 19.9x n/a 3.0x 5.8x 8.5x n/a 7.0x 9.5x n/a 7.8x YoY Stock Market Return 58.7% 75.7% 75.3% -30.3% 15.0% 37.0% -28.9% 12.1% 12.5% -33.2% 13.8%
Supply Chain Management & Logistics Software Stock Market Return: Jan - August 2011
14.4% 16.3% 66.2% 55.4% 9.9% 8.4% 34.7% 13.5% 15%
10%
5%
2.1 1.6 19.0% 64 27 0.3
0%
-5%
-10% 12.2% 18.4% -29.1% -101.2% -10.3%
-15%
Supply Chain Management and Logistics S&P NASDAQ SEG SW Index
SEG Software Index Category: Vertical - Finance

Company Name Advent Software, Inc. Fundtech Ltd. Jack Henry & Associates, Inc. MSCI, Inc. SS&C Corporation Ticker ADVS FNDT JKHY MSCI SSNC Median: Market Cap $1,212.4 $260.1 $2,526.2 $4,164.5 $1,298.0 $1,298.0 EV $1,133.9 $185.9 $2,616.2 $4,994.8 $1,419.1 $1,419.1 TTM Revenue $302.9 $151.4 $966.9 $662.9 $349.9 $349.9 TTM Gross Margin 71.9% 52.4% 41.3% 70.0% 49.7% 52.4% TTM EBITDA Margin 20.8% 13.1% 31.7% 44.5% 36.6% 31.7% TTM Revenue Growth EV/ Revenue 13.9% 3.7x 15.1% 1.2x 15.6% 2.7x 49.7% 7.5x 16.7% 4.1x 15.6% 3.7x EV/ Forward EBITDA EV/ Revenue 18.0x 3.3x 9.3x 1.1x 8.5x 2.5x 16.9x 5.2x 11.1x 3.7x 11.1x 3.3x Forward EV/ EBITDA 11.9x 6.8x 8.0x 11.1x 9.0x 9.0x YoY Stock Market Return -6.6% 30.6% 24.3% 15.6% 17.0% 17.0%
Vertical - Finance Software Stock Market Return: Jan - August 2011

15.6% 14.1% 16.6% 52.4% 31.7% 10.5% 28.3% 14.7% 15% 10% 5% 0%
1.8 1.5 17.9% 61 45 0.2
-5% -10% -15% -20%
11.5% 7.1% 43.8% -105.0% -1.7%
-25%
Vertical - Finance S&P NASDAQ SEG SW Index
SEG Software Index Category: Vertical - Other

Company Name Blackbaud, Inc. Constellation Ebix, Inc. Itron, Inc. Micros Systems PROS Holdings Sapiens International Tyler Technologies, Inc. Ticker BLKB TSX:CSU EBIX ITRI MCRS PRO SPNS TYL Median: Market Cap $1,084.8 $1,550.6 $613.1 $1,620.5 $3,851.0 $427.2 $86.4 $801.5 $943.1 EV $1,051.4 $1,595.0 $615.1 $2,030.6 $3,077.3 $362.8 $71.2 $831.5 $941.4 TTM Revenue $350.9 $705.2 $150.7 $2,370.4 $1,007.9 $81.1 $55.4 $296.3 $323.6 TTM Gross Margin 58.7% 56.9% 80.4% 31.3% 55.6% 74.5% 44.6% 44.7% 56.3% TTM EBITDA Margin 19.3% 20.5% 44.1% 14.1% 22.8% 10.5% 14.0% 17.9% 18.6% TTM Revenue Growth EV/ Revenue 11.4% 3.0x 31.2% 2.3x 27.3% 4.1x 21.6% 0.9x 10.2% 3.1x 18.2% 4.5x 12.7% 1.3x 1.8% 2.8x 15.5% 2.9x EV/ Forward EBITDA EV/ Revenue 15.5x 2.7x 11.0x 2.0x 9.3x 3.3x 6.1x 0.9x 13.4x 2.8x 42.7x 3.4x 9.2x n/a 15.7x 2.6x 12.2x 2.7x Forward EV/ EBITDA 11.4x 9.6x n/a 6.0x 11.9x 21.1x n/a 13.1x 11.7x YoY Stock Market Return 20.3% 86.5% -11.8% -26.3% 25.1% 101.5% 101.0% 45.8% 35.4%
Vertical - Other Software Stock Market Return: Jan - August 2011

15.5% 25.2% 36.2% 56.3% 18.6% 12.9% 25.6% 10.7% 30% 25% 20% 15% 10% 1.4 1.2 6.8% 62 47 0.2 5% 0% -5% -10% 16.2% 8.5% 3.1% 19.8% 13.5% -15%
Vertical - Other S&P NASDAQ SEG SW Index
SEG Software Index Category: Video Games

Company Name Activision Blizzard Electronic Arts Inc. Konami Corporation Majesco Entertainment Company TakeTwo Interactive THQ Inc. Ticker ATVI ERTS TSE: 9766 COOL TTWO THQI Median: Market Cap $13,542.4 $7,548.4 $5,088.9 $99.8 $1,146.7 $133.2 $3,117.8 EV $10,598.4 $5,700.4 $4,981.7 $81.3 $1,007.2 $114.2 $2,994.5 TTM Revenue $4,767.0 $3,773.0 $3,220.5 $116.1 $1,095.9 $711.0 $2,158.2 TTM Gross Margin 57.6% 59.8% 28.2% 34.3% 40.1% 60.8% 48.9% TTM EBITDA Margin 28.1% 4.0% 14.9% 10.4% 5.3% 2.6% 7.9% TTM Revenue Growth EV/ Revenue 5.1% 2.2x -1.4% 1.5x 0.1% 1.5x 43.0% 0.7x n/a 0.9x -11.7% 0.2x 0.1% 1.2x EV/ Forward EBITDA EV/ Revenue 7.9x 2.6x 37.5x 1.4x 10.4x 1.4x 6.7x 0.6x 17.2x 0.8x 6.2x 0.1x 9.1x 1.1x Forward EV/ EBITDA 7.0x 9.0x 8.2x n/a 5.0x 2.9x 7.0x YoY Stock Market Return 11.0% 48.3% 128.4% 306.7% 59.3% -45.1% 53.8%
Video Game Software Stock Market Return: Jan - August 2011

0.1% 23.3% 40.4% 48.9% 7.9% 7.3% 21.7% 7.4% 25% 20% 15% 10% 5% 0% -5% -10% 8.9% -3.0% 75.9% -94.6% 53.7% -15%
Video Games S&P NASDAQ SEG SW Index
2.3 1.5 18.8% 39 19 0.3
SEG Software Index Category: Workforce and Service Management

Company Name ClickSoftware Technologies Ltd. Callidus Software, Inc. NICE Systems Ltd. Saba Software Verint Ticker CKSW CALD NICE SABA VRNT Median: Market Cap $269.0 $156.6 $1,990.9 $204.2 $1,095.4 $649.8 EV $213.2 $150.1 $1,650.0 $179.5 $1,801.6 $914.8 TTM Revenue $75.9 $77.7 $741.7 $116.7 $744.8 $429.2 TTM Gross Margin 62.6% 42.1% 61.5% 63.8% 68.5% 62.7% TTM EBITDA Margin 16.5% -3.7% 16.2% -0.5% 18.4% 7.8% TTM Revenue Growth EV/ Revenue 10.3% 2.8x 17.6% 1.9x 17.4% 2.2x 6.5% 1.5x 4.5% 2.4x 11.9% 2.1x EV/ Forward EBITDA EV/ Revenue 17.0x 2.4x n/a 1.7x 13.8x 2.0x n/a 1.4x 13.1x 2.3x 13.5x 1.8x Forward EV/ EBITDA 10.7x 17.3x 7.7x n/a 8.8x 8.8x YoY Stock Market Return 57.3% 44.9% 17.4% 33.3% 21.2% 27.3%
11.9% 31.6% 36.3% 62.7% 7.8% 1.2% 36.7% 12.6%
Workforce and Service Mgmt Software Stock Market Return: Jan - August 2011
30% 25% 20% 15% 10%
2.5 1.5 21.7% 56 53 0.4
5% 0% -5% -10%
20.4% 28.4% -107.7% -98.2% 24.1%
-15% -20%
Workforce and Service Mgmt S&P NASDAQ SEG SW Index
SEG SaaS Index Company Performance
SEG SaaS Index

Company Name Athenahealth Concur Constant Contact Convio Cornerstone OnDemand DealerTrack DemandTec Ellie Mae IntraLinks Holdings Kenexa LivePerson Medidata Solutions Netsuite RealPage Responsys RightNow Salesforce.com SciQuest SoundBite Communications SPS Commerce SuccessFactors Taleo The Ultimate Software Group, Inc. Vocus Zix Corporation Ticker ATHN CNQR CTCT CNVO CSOD TRAK DMAN ELLI IL KNXA LPSN MDSO N RP MKTG RNOW CRM SQI SDBT SPSC SFSF TLEO ULTI VOCS ZIXI Median: Market Cap $2,028.9 $2,258.0 $567.7 $168.6 $746.0 $775.2 $214.2 $113.4 $504.4 $569.3 $624.3 $407.7 $2,161.1 $1,475.2 $685.1 $1,090.3 $17,239.6 $329.5 $46.6 $216.9 $1,948.9 $1,066.4 $1,308.3 $448.6 $217.9 $217 9 $624.3 EV $1,924.5 $1,938.9 $448.0 $118.9 $666.8 $705.0 $148.8 $75.8 $538.8 $525.0 $549.9 $313.9 $2,046.1 $1,423.8 $603.3 $1,009.3 $17,283.2 $279.6 $18.2 $187.1 $1,699.1 $918.0 $1,260.8 $332.1 $200.9 $200 9 $549.9 TTM Revenue $280.3 $331.8 $194.8 $73.8 $54.1 $291.4 $86.8 $46.7 $205.7 $240.8 $120.4 $179.4 $213.1 $221.3 $116.9 $207.1 $1,936.3 $47.2 $38.6 $50.0 $252.1 $273.7 $246.1 $106.2 $36.1 $36 1 $194.8 TTM Gross Margin 62.5% 72.0% 71.1% 62.5% 67.5% 47.1% 64.3% 71.7% 74.6% 62.7% 72.9% 70.3% 69.8% 57.9% 54.0% 69.9% 79.4% 77.0% 58.9% 72.8% 68.9% 67.3% 56.5% 80.7% 80.7% 80 7% 69.8% TTM EBITDA Margin 16.9% 14.7% 8.0% 8.7% -33.7% 15.7% -8.5% 10.5% 13.9% 7.3% 20.5% 21.4% -7.9% 13.1% 18.5% 10.3% 5.9% 15.3% -3.9% 7.6% -11.2% 13.1% 8.6% 0.2% 27.2% 27 2% 10.3% TTM Revenue Growth EV/ Revenue 30.5% 6.9x 18.4% 5.8x 28.2% 2.3x 10.2% 1.6x n/a 12.3x 26.3% 2.4x 12.0% 1.7x n/a 1.6x 30.6% 2.6x 46.9% 2.2x 21.9% 4.6x 19.0% 1.7x 21.1% 9.6x 38.3% 6.4x n/a 5.2x 24.9% 4.9x 33.0% 8.9x 19.7% 5.9x -5.2% 0.5x 22.5% 3.7x 44.0% 6.7x 28.7% 3.4x 16.8% 5.1x 19.1% 3.1x 31.5% 31 5% 5.6x 5 6x 23.7% 4.6x EV/ Forward Forward EBITDA EV/ Revenue EV/ EBITDA 40.6x 5.2x 25.2x 39.8x 4.8x 17.2x 28.7x 1.9x 10.2x 18.6x 1.4x 9.8x n/a 7.5x n/a 15.4x 2.0x 9.4x n/a 1.6x 16.3x 15.5x 1.5x 9.0x 18.8x 2.4x 7.1x 29.8x 1.8x 11.0x 22.3x 3.7x 14.6x 8.2x 1.6x 6.8x n/a 8.0x 72.2x 48.9x 4.7x 21.3x 28.0x 4.2x 25.5x 47.4x 4.1x 23.9x 150.2x 7.0x 36.2x 38.8x 4.7x 21.7x n/a 0.4x 28.0x 49.1x 3.0x 28.8x n/a 4.7x 95.2x 25.7x 2.6x 12.6x 59.5x 4.3x 22.0x 1604.5x 2.7x 15.4x 20.5x 20 5x 4.8x 4 8x 14.2x 14 2x 29.3x 3.7x 16.7x YoY Stock Market Return 115.3% -10.6% 8.0% 11.2% n/a 27.0% -11.8% n/a -27.9% 89.5% 64.6% -3.8% 69.2% 24.4% n/a 96.3% 17.2% n/a -1.7% 77.9% 10.7% 0.7% 53.7% 45.3% 27.3% 27 3% 24.4%
23.7% 15.3% 20.0% 69.8% 10.3% 1.5% 44.9% 14.6%
SEG SaaS Index Software Stock Market Return: Jan - August 2011
20%
15% 10%
5% 2.0 1.9 13.7% 58 28 0.4
0% -5%
-10% -15%
3.6% 32.9% -142.7% 190.4% 28.3%
-20%
SEG SaaS S&P NASDAQ SEG SW Index
SEG Internet Index Category Performance
SEG Internet Index: All Categories

Category Name SEG Internet Index Ad Tech & Lead Generation Infastructure Media Retail Search Services Travel Video Games Market Cap $806.66 $439.72 $510.57 $1,413.05 $497.85 $1,778.44 $1,181.38 $4,679.87 $2,142.45 EV $711.92 $410.83 $382.44 $1,205.20 $424.54 $1,461.73 $944.30 $4,578.41 $1,781.64 TTM Revenue $338.29 $163.98 $222.75 $437.34 $336.27 $522.41 $306.43 $628.99 $596.65 TTM Gross Margin 65.0% 43.7% 62.7% 52.6% 39.3% 54.9% 73.1% 78.8% 78.2% TTM EBITDA Margin 16.3% 9.8% 15.3% 17.9% 9.4% 11.3% 16.8% 20.3% 49.7% TTM Revenue Growth EV/ Revenue 20.4% 2.5x 25.1% 1.6x 24.6% 2.1x 16.3% 2.4x 12.6% 1.4x 26.1% 1.2x 21.9% 5.1x 25.5% 5.6x 29.7% 4.7x EV/ Forward EBITDA EV/ Revenue 12.9x 2.1x 13.6x 1.3x 11.9x 1.7x 10.3x 2.2x 14.4x 1.3x 11.1x 1.0x 29.9x 3.5x 26.4x 5.7x 7.3x 3.0x Forward EV/ EBITDA 8.3x 6.6x 7.3x 8.1x 9.6x 7.5x 14.5x 18.7x 5.3x YoY Stock Market Return 26.1% 25.5% 19.4% 3.8% 32.9% 28.5% 69.1% 3.0% 29.8%
SEG Internet Index Software Stock Market Return: Jan - August 2011
20.4% 27.5% 22.7% 65.0% 16.3% 5.0% 35.3% 10.7% 20%
15%
10%
5%
2.7 2.3 15.2% 33 36 0.4
0%
-5%
-10%
-15% 6.8% 7.7% -72.8% 26.3% 29.2%
-20%
SEG Internet Index S&P NASDAQ SEG SW Index
SEG Internet Index Category: Ad Tech and Lead Generation

Company Name comScore Inc. DG FastChannel, Inc. interCLICK, Inc. Inuvo, Inc. LookSmart, Ltd. Marchex Inc. QuinStreet SINA Corporation ValueClick, Inc. Ticker SCOR DGIT ICLK INUV LOOK MCHX QNST SINA VCLK Median: Market Cap $508.2 $600.7 $142.8 $17.5 $25.2 $371.3 $573.6 $7,074.7 $1,210.9 $439.7 EV $478.7 $541.6 $136.1 $18.9 $4.0 $342.9 $512.4 $6,252.7 $1,068.4 $410.8 TTM Revenue $207.9 $268.4 $118.2 $49.3 $36.2 $120.0 $403.0 $437.4 $477.1 $164.0 TTM Gross Margin 68.4% 66.6% 43.0% 43.6% 43.7% 42.0% 27.5% 57.1% 71.3% 43.7% TTM EBITDA Margin 4.3% 44.9% 9.2% 2.6% 10.5% 1.7% 18.6% 20.9% 28.7% 9.8% TTM Revenue Growth EV/ Revenue 44.6% 2.3x 24.1% 2.0x 64.0% 1.2x 26.1% 0.4x -29.9% 0.1x 31.9% 2.9x 20.4% 1.3x 15.4% 14.3x 16.1% 2.2x 25.1% 1.6x EV/ Forward EBITDA EV/ Revenue 53.2x 1.9x 4.5x 1.3x 12.5x 0.9x 14.7x n/a 1.0x 0.1x 171.3x 2.1x 6.8x 1.1x 68.5x 12.2x 7.8x 1.8x 13.6x 1.3x Forward EV/ EBITDA 9.9x 3.4x 6.6x n/a 1.0x 13.0x 5.4x 108.9x 6.1x 6.6x YoY Stock Market Return -12.2% 38.6% 56.6% -38.9% -5.8% 150.9% 12.4% 150.8% 40.6% 25.5%
25.1% 32.0% 32.2% 43.7% 9.8% 1.1% 29.7% 9.8%
Internet Ad Tech and Lead Generation Software Stock Market Return: Jan - August 2011
30%
20%
10%
0% 2.5 2.4 11.0% 66 37 0.4
-10%
-20%
-30% 11.9% 1.9% -426.7% -79.8% 58.6%
-40%
Internet Ad Tech and Lead Generation S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Infrastructure

Company Name 8x8, Inc. Akamai Technologies, Inc. BroadSoft, Inc. Cbeyond, Inc. ChinaCache International Digital River Inc. EarthLink Inc. Equinix, Inc. Interactive Intelligence, Inc. Internap Network Services Corp. Keynote Systems Inc. Limelight Networks, Inc. Rackspace Hosting Tucows Inc. VeriSign, Inc. Ticker EGHT AKAM BSFT CBEY CCIH DRIV ELNK EQIX ININ INAP KEYN LLNW RAX TCX VRSN Median: Market Cap $270.9 $4,045.2 $814.9 $285.3 $172.7 $798.4 $795.4 $4,423.2 $608.4 $262.3 $412.8 $285.9 $4,768.0 $39.6 $5,183.3 $510.6 EV $252.0 $3,548.0 $701.5 $275.9 $105.1 $443.6 $1,212.9 $6,358.0 $538.6 $270.3 $321.3 $173.0 $4,774.9 $35.6 $4,373.5 $382.4 TTM Revenue $71.8 $1,091.2 $119.9 $469.3 $80.1 $373.4 $918.5 $1,433.5 $192.2 $240.1 $96.0 $205.4 $891.7 $88.9 $722.5 $222.7 TTM Gross Margin 67.6% 69.9% 82.2% 67.6% 30.9% 82.5% 57.8% 44.9% 68.8% 40.7% 54.0% 54.8% 69.1% 24.4% 77.9% 62.7% TTM EBITDA Margin 11.7% 38.6% 21.5% 13.0% 10.3% 13.9% 27.3% 40.1% 16.2% 14.5% 18.2% 1.6% 28.3% 6.8% 48.3% 15.3% TTM Revenue Growth EV/ Revenue 11.1% 3.5x 17.3% 3.3x 59.7% 5.9x 7.6% 0.6x 66.8% 1.3x -3.0% 1.2x 41.5% 1.3x 41.3% 4.4x 34.5% 2.8x -4.7% 1.1x 21.5% 3.3x 42.2% 0.8x 27.7% 5.4x 8.2% 0.4x 12.6% 6.1x 24.6% 2.1x EV/ Forward Forward EBITDA EV/ Revenue EV/ EBITDA 29.9x 3.2x 21.9x 8.4x 3.0x 6.6x 27.3x 4.9x 19.3x 4.5x 0.6x 3.2x 12.7x 1.0x 4.7x 8.5x 1.1x 4.7x 4.8x 0.9x 3.6x 11.1x 3.6x 8.0x 17.3x 2.3x 13.4x 7.8x 1.1x 5.7x 18.4x 3.0x 12.4x 52.4x 0.9x 9.2x 18.9x 4.2x 12.5x 5.9x 0.4x 5.4x 12.5x 5.4x 10.2x 11.9x 1.7x 7.3x YoY Stock Market Return 216.1% -52.4% 275.8% -22.1% n/a -23.7% -13.8% 3.1% 116.8% 26.0% 138.9% -36.6% 85.7% 19.4% 7.1% 19.4%
Internet Infrastructure Software Stock Market Return: Jan - August 2011

24.6% 19.1% 25.6% 62.7% 15.3% 5.6% 38.6% 7.5% 25% 20% 15% 10% 5% 2.2 1.9 15.3% 32 35 0.3 0% -5% -10% -15% -20%
Internet Infrastructure S&P NASDAQ SEG Internet Index
5.2% 5.7% -64.9% -17.9% 34.6%
SEG Internet Index Category: Media

Company Name AOL, Inc. DemandMedia eHealth, Inc. Google, Inc. Local.com Corp. Monster Worldwide, Inc. Netflix Pandora Sohu.com Inc. TheStreet.com, Inc. Tudou Holdings Limited WebMD Health Corp. XO Group Yahoo! Inc. Youku Ticker AOL DMD EHTH GOOG LOCM MWW NFLX P SOHU TST TUDO WBMD XOXO YHOO YOKU Median: Market Cap $1,666.6 $726.0 $272.7 $174,669.4 $62.7 $1,159.5 $12,346.5 $2,126.6 $3,131.5 $77.1 $740.1 $2,072.3 $274.2 $17,184.1 $2,855.9 $1,413.1 EV $1,327.8 $622.4 $136.8 $141,688.4 $49.2 $1,082.6 $12,205.3 $2,031.3 $2,591.7 $20.8 $692.2 $1,723.8 $179.5 $14,710.6 $2,235.4 $1,205.2 TTM Revenue $2,253.8 $297.9 $161.9 $33,328.0 $74.9 $1,015.0 $2,656.3 $203.3 $710.3 $58.2 $51.3 $576.8 $117.1 $5,569.7 $91.7 $437.3 TTM Gross Margin 33.4% 51.3% 81.8% 65.2% 40.8% 49.4% 37.4% 40.3% 73.6% 53.9% 22.1% 65.5% 80.1% 64.3% 32.2% 52.6% TTM EBITDA Margin 20.5% 20.6% 21.3% 38.4% 1.0% 11.0% 15.2% -0.5% 41.1% -7.9% -85.5% 26.1% 11.5% 25.7% 3.5% 17.9% TTM Revenue Growth EV/ Revenue -21.1% 0.6x 34.7% 2.1x 14.2% 0.8x 27.1% 4.3x 2.4% 0.7x 18.3% 1.1x 41.2% 4.6x n/a 10.0x 29.6% 3.6x -2.9% 0.4x n/a 13.5x 20.1% 3.0x 5.2% 1.5x -14.4% 2.6x n/a 24.4x 16.3% 2.4x EV/ Forward EBITDA EV/ Revenue 2.9x 0.6x 10.2x 1.7x 4.0x 0.9x 11.1x 3.4x 68.6x 0.6x 9.7x 1.0x 30.3x 3.1x n/a 5.8x 8.9x 2.8x n/a n/a n/a n/a 11.4x 2.9x 13.3x 1.4x 10.3x 3.2x 695.0x 12.6x 10.3x 2.2x Forward EV/ EBITDA 4.4x 6.2x 6.3x 8.1x 4.1x 4.5x 21.0x n/a 8.3x n/a n/a 8.2x 10.3x 9.5x n/a 8.1x YoY Stock Market Return -29.9% n/a 26.1% 20.2% -16.2% -14.4% 87.2% n/a 68.7% -13.9% n/a -30.7% 27.9% 3.8% n/a 3.8%
Internet Media Software Stock Market Return: Jan - August 2011

16.3% 25.5% 30.5% 52.6% 17.9% 4.1% 35.5% 10.9% 20%
10%
0%
2.6 2.5 21.9% 52 26 0.5
-10%
-20%
-30% 15.5% 15.5% -104.1% -95.2% 0.4%
-40%
Internet Media S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Retail

Company Name 1-800-FLOWERS.COM, Inc. Amazon.com, Inc. Bitauto Holdings Limited Bluefly, Inc. BlueNile DangDang eBay Inc. IAC/InterActiveCorp Liquidity Services, Inc. Mecox Lane Limited Mercadolibre, Inc. Overstock.com, Inc. PetMed Express, Inc. ZAGG, Inc. Ticker FLWS AMZN BITA BFLY NILE DANG EBAY IACI LQDT MCOX MELI OSTK PETS ZAGG Median: Market Cap $159.4 $97,700.4 $280.1 $39.1 $553.9 $622.9 $39,784.0 $3,358.6 $679.2 $116.9 $2,974.3 $243.7 $212.8 $441.8 $497.8 EV $183.7 $91,345.4 $180.4 $35.7 $480.5 $368.6 $37,932.8 $2,599.1 $574.7 $16.5 $2,857.9 $205.0 $153.2 $496.8 $424.5 TTM Revenue $689.8 $40,277.0 $76.0 $93.5 $342.9 $432.4 $10,050.7 $1,810.0 $329.6 $226.3 $249.1 $1,094.8 $230.9 $118.1 $336.3 TTM Gross Margin 40.6% 22.4% 67.5% 34.8% 21.6% 20.0% 71.7% 62.6% 42.1% 38.0% 77.3% 17.4% 35.0% 47.9% 39.3% TTM EBITDA Margin 4.9% 4.5% 16.4% -1.6% 6.7% -0.1% 30.0% 12.2% 12.1% -2.0% 35.0% 1.4% 13.1% 21.0% 9.4% TTM Revenue Growth EV/ Revenue 3.3% 0.3x 40.5% 2.3x n/a 2.4x 13.7% 0.4x 7.0% 1.4x n/a 0.9x 11.4% 3.8x 25.1% 1.4x 19.1% 1.7x 8.1% 0.1x 25.8% 11.5x 8.2% 0.2x -2.0% 0.7x 163.0% 4.2x 12.6% 1.4x EV/ Forward EBITDA EV/ Revenue 5.4x 0.3x 50.0x 1.6x 14.5x 1.6x n/a n/a 20.9x 1.3x n/a 0.6x 12.6x 3.0x 11.7x 1.3x 14.4x 1.6x n/a 0.1x 32.8x 8.4x 12.9x 0.2x 5.1x 0.7x 20.1x 2.7x 14.4x 1.3x Forward EV/ EBITDA 4.3x 30.7x 7.1x n/a 14.4x 87.5x 9.1x 6.8x 10.0x n/a 23.5x 8.1x 6.5x 12.9x 9.6x YoY Stock Market Return 57.6% 72.4% n/a 0.6% -5.4% n/a 32.9% 59.5% 86.5% n/a 2.2% -25.3% -34.4% 336.9% 32.9%
Internet Retail Software Stock Market Return: Jan - August 2011

12.6% 9.3% -13.4% 39.3% 9.4% 2.5% 30.3% 5.8% 20% 15% 10% 5% 0% 2.3 1.4 14.4% 11 40 0.4 -5% -10% -15% -20% 4.0% 16.2% -72.4% 56.9% 8.1% -25% -30%
Internet Retail S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Search

Company Name Baidu.com, Inc. Google Inc. IAC/InterActiveCorp InfoSpace, Inc. Local.com Corp. LookSmart, Ltd. ReachLocal, Inc. Sohu.com Inc. Yandex Ticker BIDU GOOG IACI INSP LOCM LOOK RLOC SOHU YNDX Median: Market Cap $50,868.3 $174,669.4 $3,358.6 $364.7 $62.7 $25.2 $425.4 $3,131.5 $10,003.0 $1,778.4 EV $49,321.2 $141,688.4 $2,599.1 $101.3 $49.2 $4.0 $331.7 $2,591.7 $9,334.0 $1,461.7 TTM Revenue $1,632.8 $33,328.0 $1,810.0 $238.6 $74.9 $36.2 $334.5 $710.3 $563.0 $522.4 TTM Gross Margin 80.5% 65.2% 62.6% 35.7% 40.8% 43.7% 47.1% 73.6% 78.4% 54.9% TTM EBITDA Margin 56.9% 38.4% 12.2% 6.8% 1.0% 10.5% -1.9% 41.1% 45.1% 11.3% TTM Revenue Growth EV/ Revenue 83.7% 30.2x 27.1% 4.3x 25.1% 1.4x -0.1% 0.4x 2.4% 0.7x -29.9% 0.1x 35.8% 1.0x 29.6% 3.6x n/a 16.6x 26.1% 1.2x EV/ Forward EBITDA EV/ Revenue 53.1x 18.1x 11.1x 3.4x 11.7x 1.3x 6.2x 0.5x 68.6x 0.6x 1.0x 0.1x n/a 0.7x 8.9x 2.8x 36.7x 12.5x 11.1x 1.0x Forward EV/ EBITDA 30.2x 8.1x 6.8x 3.2x 4.1x 1.0x 15.7x 8.3x 25.3x 7.5x YoY Stock Market Return 85.9% 20.2% 59.5% 36.8% -16.2% -5.8% 11.8% 68.7% n/a 28.5%
Internet Search Software Stock Market Return: Jan - August 2011

26.1% 24.4% 26.1% 54.9% 11.3% 6.6% 25.1% 8.5% 20% 15% 10% 5% 0% -5% -10% -15% 3.0% 15.6% -72.8% 37.9% 60.6% -20%
Internet Search S&P NASDAQ SEG Internet Index
3.6 3.5 24.2% 31 34 0.8
SEG Internet Index Category: Services

Company Name Active Networks Ancestory.com Bankrate eHealth, Inc. FriendFinder Jiayuan.com International LinkedIn LoopNet, Inc. Qihoo Renren Stamps.com Shutterfly VistaPrint Zillow Ticker ACTV ACOM RATE EHTH FFN DATE LNKD LOOP QIHU RENN STMP SFLY VPRT Z Median: Market Cap $876.9 $1,621.3 $1,665.0 $272.7 $84.2 $403.6 $8,098.4 $716.8 $2,748.3 $2,877.4 $280.6 $1,854.4 $1,181.4 $1,024.6 $1,181.4 EV $722.3 $1,550.3 $1,797.2 $136.8 $523.4 $313.3 $7,726.3 $608.7 $2,439.0 $1,649.1 $257.4 $1,778.5 $944.3 $1,008.4 $944.3 TTM Revenue $306.4 $354.4 $345.4 $161.9 $342.1 $32.5 $358.5 $82.1 $93.3 $83.1 $92.8 $348.2 $817.0 $44.9 $306.4 TTM Gross Margin 56.4% 83.6% 62.4% 81.8% 69.4% 65.7% 82.7% 84.1% 88.7% 79.4% 73.1% 54.6% 64.8% 84.1% 73.1% TTM EBITDA Margin 7.2% 33.1% 31.9% 21.3% 32.8% 21.5% 13.4% 24.8% 0.7% 13.4% 12.6% 9.5% 16.8% 2.8% 16.8% TTM Revenue Growth EV/ Revenue n/a 2.4x 38.4% 4.4x 156.2% 5.2x 14.2% 0.8x 2.5% 1.5x n/a 9.6x n/a 21.6x 9.1% 7.4x 120.0% 26.1x n/a 19.9x 10.4% 2.8x 31.8% 5.1x 21.9% 1.2x n/a 22.5x 21.9% 5.1x EV/ Forward EBITDA EV/ Revenue 32.7x 2.0x 13.2x 3.5x 16.3x 4.2x 4.0x 0.9x 4.7x 1.5x 44.7x 5.0x 161.3x 12.8x 29.9x 6.6x 3813.9x 12.8x 148.3x 10.7x 21.9x 2.5x 53.8x 3.3x 6.9x 0.9x 797.8x 13.0x 29.9x 3.5x Forward EV/ EBITDA 15.4x 9.7x 13.3x 6.3x 5.2x 18.3x 87.5x 18.7x 48.9x n/a 13.6x 17.8x 6.5x 79.1x 14.5x YoY Stock Market Return n/a 86.0% n/a 26.1% n/a n/a n/a 66.6% n/a n/a 71.7% 141.4% -4.1% n/a 69.1%
Internet Services Software Stock Market Return: Jan - August 2011

21.9% 32.2% 22.0% 73.1% 16.8% 4.7% 42.2% 14.8% 25% 20% 15% 10% 5% 3.1 2.7 11.3% 18 28 0.4 0% -5% -10% -15% -20%
Internet Services S&P NASDAQ SEG Internet Index
9.6% 5.8% -74.6% 46.4% 20.2%
SEG Internet Index Category: Travel

Company Name Ctrip Expedia HomeAway MakeMyTrip Orbitz Pricelilne Travelzoo Ticker CTRP EXPE AWAY MMYT OWW PCLN TZOO Median: Market Cap $5,989.5 $8,312.7 $3,370.3 $695.4 $262.5 $26,739.4 $601.2 $4,679.9 EV $5,401.3 $7,801.1 $3,755.5 $598.1 $589.8 $25,432.5 $560.9 $4,578.4 TTM Revenue $494.4 $3,642.0 $200.8 $143.0 $763.6 $3,645.1 $130.7 $629.0 TTM Gross Margin 78.1% 79.6% 84.7% 36.6% 79.6% 65.8% 93.2% 78.8% TTM EBITDA Margin 37.9% 23.8% 16.8% 4.1% 14.7% 29.1% 24.6% 20.3% TTM Revenue Growth EV/ Revenue 33.6% 10.9x 17.4% 2.1x n/a 18.7x n/a 4.2x 2.9% 0.8x 38.9% 7.0x 25.7% 4.3x 25.5% 5.6x EV/ Forward EBITDA EV/ Revenue 28.8x 8.9x 9.0x 1.9x 111.5x 14.8x 101.2x 6.1x 5.3x 0.8x 24.0x 5.3x 17.4x 3.2x 26.4x 5.7x Forward EV/ EBITDA 21.6x 7.2x 53.4x 38.5x 4.6x 15.8x 10.5x 18.7x YoY Stock Market Return 3.0% 32.6% n/a -44.1% -49.6% 84.3% 100.0% 3.0%
Internet Travel Software Stock Market Return: Jan - August 2011

25.5% 45.5% 12.1% 78.8% 20.3% 3.3% 46.5% 12.9% 35% 30% 25% 20% 15% 10% 2.0 1.9 10.1% 35 338 0.3 5% 0% -5% -10% 22.0% 6.9% -36.9% 56.5% 65.6% -15% -20%
Internet Travel S&P NASDAQ SEG Internet Index
SEG Internet Index Category: Video Games

Company Name ChangeYou Giant Interactive Netease NCSoft Perfect World Shanda Tencent Holdings Ticker CYOU GA NTES KOSE:A036 PWRD SNDA SEHK:700 Median: Market Cap $2,142.5 $1,877.1 $6,601.2 $6,500.6 $1,066.7 $1,929.4 $43,281.4 $2,142.5 EV $1,781.6 $923.3 $4,858.3 $6,011.5 $752.8 $1,102.8 $41,306.8 $1,781.6 TTM Revenue $379.5 $239.1 $969.3 $596.6 $425.6 $967.5 $3,685.0 $596.6 TTM Gross Margin 88.6% 87.3% 66.9% 78.2% 82.7% 59.0% 66.3% 78.2% TTM EBITDA Margin 64.6% 63.6% 49.7% 32.7% 38.2% 20.5% 50.4% 49.7% TTM Revenue Growth EV/ Revenue 31.2% 4.7x 29.7% 3.9x 36.5% 5.0x -8.8% 10.1x 13.8% 1.8x 12.3% 1.1x 49.4% 11.2x 29.7% 4.7x EV/ Forward EBITDA EV/ Revenue 7.3x 3.6x 6.1x 3.0x 10.1x 4.2x 30.9x n/a 4.6x 1.5x 5.6x 0.9x 22.2x n/a 7.3x 3.0x Forward EV/ EBITDA 6.2x 4.9x 8.3x n/a 3.7x 5.3x n/a 5.3x YoY Stock Market Return 53.7% 32.9% 27.3% 70.8% -14.1% -17.3% 29.8% 29.8%
Internet Video Games Software Stock Market Return: Jan - August 2011
29.7% 9.3% -5.8% 78.2% 49.7% 39.1% 22.2% 12.9% 40%
30%
20%
3.3 3.1 28.7% 14 55 1.6
10%
0%
-10% 28.4% 41.4% -138.9% 215.2% 22.2%
-20%
Internet Video Games S&P NASDAQ SEG Internet Index
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SEG Monthly Flash Report September 2011

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Software Equity Group Flash Report

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SEG Software Index Category Performance

Copyright 2011 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index: All Categories

SEG SW Index Software Stock Market Return: Jan - August 2011

2.1 1.8 17.9% 65 40 0.4

12.4% 13.9% -4.0% -11.4% 0.6%

August 2011 Monthly Flash Report

SEG Software Index Category: Billing and Service Management

18.5% 7.7% -0.1% 51.2% 20.4% 14.7% 18.7% 13.6%

2.8 2.2 24.8% 84 30 0.8

0% -5% -10% -15%

1.8% -14.3% -266.1% 89.4% -67.3%

August 2011 Monthly Flash Report

SEG Software Index Category: Business Intelligence

Business Intelligence Software Stock Market Return: Jan - August 2011

20% 1.7 1.6 14.7% 72 30 0.8

-10% 3.8% 6.4% 5.1% -56.6% -26.7%

August 2011 Monthly Flash Report

SEG Software Index Category: Content and Document Management

August 2011 Monthly Flash Report

SEG Software Index Category: Data Management and Integration

13.0% 10.9% -16.9% 7.1% 5.0%

August 2011 Monthly Flash Report

SEG Software Index Category: Development Tools and Open Source

August 2011 Monthly Flash Report

SEG Software Index Category: Education and eLearning

0% 0.8 0.7 10.3% 59 51 -0.2

-15% 17.4% -7.1% -42.0% -53.4% -2.3%

August 2011 Monthly Flash Report

SEG Software Index Category: Electronic Design Automation

1.6 1.4 16.3% 69 19 0.2

-10% 8.5% 113.2% -58.2% -87.3% 11.0%

August 2011 Monthly Flash Report

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

12.6% 13.0% -111.2% 23.6% -2.2%

August 2011 Monthly Flash Report

SEG Software Index Category: Enterprise Resource Planning

18.7% 31.4% -84.1% 63.1% 36.6%

August 2011 Monthly Flash Report

SEG Software Index Category: Financial Services

Financial Services Software Stock Market Return: Jan - August 2011

1.9 1.6 14.3% 69 36 0.3

-10% 10.8% 18.9% -20.0% 54.2% 51.0%

August 2011 Monthly Flash Report

SEG Software Index Category: Healthcare

Healthcare Software Stock M k t R t H lth S ft St k Market Return: J - A Jan August 2011 t

10.8% 23.2% -11.6% -100.3% 2.3%

August 2011 Monthly Flash Report

SEG Software Index Category: IT Conglomerates

IT Conglomerates Software Stock Market Return: Jan - August 2011

20% 15% 10% 5% 0% -5% -10% -15%

2.6 2.3 23.1% 61 48 1.1

13.9% 9.7% 20.4% 7.1% -6.5%