Shea & Company Annual Software Market Review - 2007

Software IPO Pricing & Performance Data
2006 – 2007 ($ millions)
Current Trading Data Valuation at IPO Stock Performance
Share price Market Enterprise EV / Revenue Market Enterprise EV / Revenue Revenue % of
Company (12/31/07) Value Value CY07E CY08E IPO Date Share Price Value Value CY07E CY08E Growth % change 52wk High
NetSuite $ 39.18 $ 2,515 $ 2,363 21.9 x 14.9 x 12/19/07 $ 26.00 $ 1,669 $ 1,517 21.9 x 14.9 x 47.0 % 50.7 % 85.2 %
SuccessFactors 11.60 671 586 9.1 5.3 11/19/07 10.00 579 494 9.1 5.3 70.7 16.0 76.0
Deltek 14.79 672 904 3.3 2.9 10/31/07 18.00 818 996 3.3 2.9 13.5 (17.8) 79.4
VMware 92.42 35,755 35,071 26.4 17.0 08/13/07 29.00 10,992 10,542 27.5 18.5 48.5 218.7 99.9
DemandTec 15.85 469 396 7.3 5.3 08/09/07 11.00 323 252 7.3 5.4 34.9 44.1 77.3
BladeLogic 27.90 801 721 10.7 7.8 07/24/07 17.00 464 385 10.8 8.0 34.9 64.1 90.1
Netezza 13.39 801 678 5.9 4.2 07/18/07 12.00 701 606 5.9 4.6 30.4 11.6 76.2
PROS 16.98 444 404 6.6 5.1 06/28/07 11.00 297 261 6.6 5.2 26.3 54.4 87.3
Data Domain 35.51 2,042 1,913 16.4 9.6 06/26/07 15.00 777 668 17.6 10.8 62.3 136.7 97.3
Starent Networks 22.78 1,476 1,476 12.0 8.9 06/05/07 12.00 777 628 12.0 8.9 35.3 89.8 94.5
Aruba Networks 20.03 1,637 1,528 8.8 5.8 03/26/07 11.00 876 778 9.3 6.0 54.2 82.1 84.0
BigBand Networks 5.14 341 201 1.1 1.2 03/14/07 13.00 842 700 0.9 0.7 26.4 (60.5) 23.8
Sourcefire 8.96 234 131 2.3 1.9 03/09/07 15.00 370 273 2.1 1.6 32.5 (40.3) 47.6
Double-Take Software 18.56 440 373 4.5 3.6 12/15/06 11.00 255 206 4.7 3.8 22.5 68.7 95.7
Isilon Systems 7.33 496 401 4.2 3.2 12/14/06 13.00 863 765 3.5 2.1 63.2 (43.6) 25.7
Guidance Software 12.37 292 258 3.3 2.6 12/13/06 11.50 260 230 3.5 2.7 32.8 7.6 69.1
Allot Communications 4.85 111 34 1.0 0.8 11/16/06 12.00 265 181 0.7 0.5 37.2 (59.6) 41.1
Acme Packet 12.59 794 667 5.9 4.4 10/12/06 9.50 572 470 6.0 4.5 33.9 32.5 58.7
CommVault Systems 18.97 888 809 4.4 3.5 09/22/06 14.50 648 603 4.6 3.7 24.1 30.8 91.0
Riverbed Technology 42.87 3,147 2,915 12.6 8.2 09/20/06 9.75 670 576 19.0 12.4 53.7 339.7 86.7
Omniture 29.49 1,932 1,769 12.4 8.1 06/27/06 6.50 354 295 13.9 9.2 50.7 353.7 76.5
Synchronoss Technologies 33.35 1,094 1,006 8.2 6.0 06/15/06 8.00 259 198 10.1 8.1 25.0 316.9 69.4
Corel 10.70 276 423 1.7 1.6 05/02/06 16.00 392 449 2.3 2.3 2.7 (33.1) 74.5
Mean 8.3 x 5.7 x 8.8 x 6.2 x 37.5 % 72.3 % 74.2 %
Median 6.6 5.1 6.6 5.2 34.9 44.1 77.3
Notes:
Enterprise value equals equity value, plus debt, less cash
Source: Company releases, Wall Street research, Shea & Company
proprietary & confidential
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