Summary

Other Scenarios:

Buyer: Microsoft Corporation (MSFT) Last Price: 30.50 Market Cap.: 255.50B
Target: EarthLink, Inc. (ELNK) Last Price: 7.94 Market Cap.: 855.75M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services 611
Consumer   895
Technology 806

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 143)

n/a
Target (Total: 70)

n/a
Buyer
  • Microsoft adCenter
  • Microsoft Advertising
  • MSN Dial-Up
  • Microsoft HealthVault
Target
  • EarthLink trueVoice
  • EarthLink - Internet Access - Cable Broadband
  • EarthLink - Internet Access - HugehesNet
  • ITC DeltaCom, Inc., - Interstate Fibernet - Directory Assistance Services

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 88)
  • Digital River, Inc. (DRIV)
  • DuPont Fabros Technology, Inc. (DFT)
  • Lionbridge Technologies Inc (LIOX)
  • Dolby Laboratories, Inc. (DLB)
Target (Total: 7)
  • AT&T Inc. (T)
  • Verizon Communications Inc (VZ)
  • Comcast Corporation (CMCSA)
  • Time Warner Cable Inc. (TWC)
Buyer (Total: 147)
  • Wal-Mart Stores, Inc. (WMT)
  • Toshiba Corporation (USA) (TOSYY)
  • Daimler AG (DDAIY)
  • 3M Co (MMM)
Target (Total: 0)

n/a

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 90,000 3,214
Revenue Per Employee 773,987.2 779,802.8
Total Revenue 20,885.0 357.3
Total Expenses 12,891.0 325.7
Other Revenue n/a n/a
Cost of Revenue 5,638.0 161.3
SG&A Expense 4,882.0 108.8
Research & Development 2,371.0 n/a
Other Operating Expense n/a n/a
Operating Income 7,994.0 31.6
Unusual Income n/a 9.0
LT Debt to Capital 15.69 46.21
Fwd P/E 11.48 34.91
Fwd P/Rev 3.49 0.65
Book Value 64,121.0 762.5
Curr Portion of LTD/Cap Lease n/a 255.9

Individual Company Summary

Focused

Buyer

Focused (): Technology > Software

Target

Focused (): Business and Public Services > Telecommunications Services > Wireline Services > Domestic > Data Services > Internet Service Providers (ISP)

Business Description

Buyer

Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services. The Company also designs and sells hardware, and delivers online advertising to the customers. It operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division (OSD), Microsoft Business Division (MBD), and Entertainment and Devices Division (EDD). The Company?s products include operating systems for personal computers (PCs), servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games, and online advertising. It also designs and sells hardware, including the Xbox 360 gaming and entertainment console and Xbox 360 accessories. Its cloud-based computing services include Bing and Windows Live Essentials suite.

Target

EarthLink, Inc. provides a suite of communications services to individual and business customers. The Company operates two segments: Consumer Services and Business Services. Its Consumer Services segment provides nationwide Internet access and related value-added services to individual customers. Its Business Services segment provides integrated communications and related value-added services to businesses, enterprise organizations and communications carriers. The Company provides its consumer services primarily through third-party telecommunications service providers, and it provides its business services primarily through a nationwide fiber optic-based network utilizing Multi-Protocol Label Switching (MPLS). In December 2010, the Company acquired ITC DeltaCom, Inc. In March 2011, the Company acquired STS Telecom. In April 2011, the Company completed the acquisition of One Communications Corp.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 76.38 56.31
Operating Margin % 37.58 10.75
Quick Ratio 2.58 1.86
Current Ratio 2.86 1.44
Coverage Ratio n/a n/a
Total Assets 112,243.0 1,948.6
Return on Equity % 146.4 18.74
Return on Assets % 83.63 7.33
Cash+ ST Inv. Per Share 6.11 7.58
Total Debt 11,932.0 1,158.2
Total Debt to Equity % 18.61 151.89
Total Debt to Tangible Equity % 28.5 3,201.52
Debt to Asset % 10.63 59.44

Product Summary

Sector Buyer Target
Business and Public Services
Business Services  
Professional Services
Includes accounting, advertising, consulting, legal, and printing services.
  
Telecommunications Services
Cable Services
Television, Internet, and Telephone services offered over a co-axial cable in the consumer's home.
  
Satellite Services
Communications service provided over a satellite network that is used for data uplink/downlink, video broadcast, data transport, telephone, and internet access services.
  
Wireless Services
Any terrestrial-based communications transmission which can be received through microwave or radio frequencies without the use of a cable connection for reception.
  
Wireline Services
Voice, video, and data services delivered via twisted pair networks.
Consumer  
Media  
Electronic Media
The Electronic Media sector focuses on content delivered electronically, primarily over the Internet, and comprises both online publishing intended for end users, and services providing data feeds for other electronic publishers and Web sites. (The online presences of companies delivering content primarily via Television, Radio, and Print are generally not included.) Does not include trade name delivered via mobile devices, if this content is also offered primarily via the internet.
  
Technology
Hardware  
Computer Hardware
The Computer Hardware sector includes corporate, consumer, and industrial computer systems, and related peripherals, components, and power management products.
  
Consumer Electronics
The Consumer Electronics sector encompasses a broad field of electronics that include products such as TVs, VCRs, radios, hi-fi stereo, home theater, handheld and software-based games, as well as other electronic devices intended for home or mobile use.
  
Information Technology (IT) Services
Enterprise and Technology Consulting
Information technology related to consulting services designed to improve a client company's operating efficiency, and business capabilities through the expert application of information technology resources and best practices. These services can be delivered on a project-by-project basis, or via an on-going relationship.
  
Internet/Online Services
The Internet/Online Services subsector is comprised primarily of outsourced services that help companies do business or establish a presence on the Internet. The sector includes services such as website development, Internet strategy consulting, ecommerce, marketing, security, and hosting.
Software  
Design/Engineering
Software used in professional design and development applications, including the design of integrated circuits, creating/editing multimedia productions, and creating web-based or stand-alone software applications.
  
Enterprise Management
Software designed to maximize the efficiency and productivity with which the enterprise is run. Includes Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) software.
  
Home/Office
Personal productivity and entertainment software targeted toward consumer and business users.
  
IT Infrastructure
Software, employed typically by the IT department of an enterprise, which ensures that computer based systems perform efficiently and securely.
  
Industry-Specific
Software that has functionality specific to a vertical industry.
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services
Business Services  
Professional Services  
Marketing Communications and Advertising Services  
Online Marketing and Advertising Support Services
Companies that provide a wide variety of marketing and advertising support solutions for online businesses (paid search advertising, search-and-call based advertising, etc.). Includes Internet lead aggregation services. Digital/Interactive Marketing Agencies are included under Marketing Specialists.

Buyer Products:

  • Microsoft adCenter
  • Microsoft Advertising
  
Telecommunications Services
Cable Services  
Domestic  
Caribbean Territories
Puerto Rico and/or US Virgin Islands

Target Products:

  • EarthLink trueVoice
  
East
Region comprising the following states: CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV

Target Products:

  • EarthLink trueVoice
  • EarthLink - Internet Access - Cable Broadband
  
Midwest
Region comprising the following states: IA, IL, IN, MI, MN, ND, NE, OH, SD, WI

Target Products:

  • EarthLink trueVoice
  • EarthLink - Internet Access - Cable Broadband
  
South
Region comprising the following states: AL, AR, FL, GA, KS, KY, LA, MO, MS, NC, OK, SC, TN, TX

Target Products:

  • EarthLink trueVoice
  • EarthLink - Internet Access - Cable Broadband
  
West
Region comprising the following states: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA and WY

Target Products:

  • EarthLink trueVoice
  • EarthLink - Internet Access - Cable Broadband
  
Satellite Services  
Fixed  
Domestic  
Internet Service Provider
ISP Services provided via satellite.

Target Products:

  • EarthLink - Internet Access - HugehesNet
  
Wireless Services  
Domestic  
Carrier Services  
Enhanced Services
Services offered to wireless carriers, to provide their customers with enhanced services, including directory assistance and other connectivity features.

Target Products:

  • ITC DeltaCom, Inc., - Interstate Fibernet - Directory Assistance Services
  
Data Services  
Internet Service Provider  
East
Region comprising the following states: CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV

Target Products:

  • Earthlink Wi-Fi
  
Midwest
Region comprising the following states: IA, IL, IN, MI, MN, ND, NE, OH, SD, WI

Target Products:

  • Earthlink Wi-Fi
  
South
Region comprising the following states: AL, AR, FL, GA, KS, KY, LA, MO, MS, NC, OK, SC, TN, TX

Target Products:

  • Earthlink Wi-Fi
  
West
Region comprising the following states: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA and WY

Target Products:

  • Earthlink Wi-Fi
  
Mobile Telephony Services  
Voice Services  
MVNO/Prepaid Service/Equipment Reseller
MVNO (Mobile Virtual Network Operator), a wireless service whereby wholesale minutes are purchased from the 5 major wireless carriers (Cingular, Nextel, Sprint, T-Mobile, and Verizon), to provide a wireless service to customers under the resellers brand name. Also includes reselling branded National carrier service and equipment.

Target Products:

  • ITC DeltaCom, Inc., - Simpli-Mobile
  
National Carriers
Wireless Voice Carriers which provide service throughout the US.

Target Products:

  • One Communications Corp. - Mobility Services
  
Wireline Services
Domestic
Converged Voice/Data Services  
Audio/Video Conferencing
Service which enables several users to meet from remote locations, using audio, video, web/based presentations, or a combination of all three.

Target Products:

  • ITC DeltaCom, Inc., - Conferencing Solutions - Web Conferencing
  • ITC DeltaCom, Inc., - Conferencing Solutions - Audio Conferencing
  • ITC DeltaCom, Inc., - Conferencing Solutions - Conference Calling
  • ITC DeltaCom, Inc., - Conferencing Solutions - Video Conferencing
  
Integrated Communications Network (ICN)
Communications service that uses a fully-integrated broadband network infrastructure to provide voice, data, multimedia, and Internet communications services over a single connection.

Target Products:

  • One Communications Corp. - Bundled Solutions
  • ITC DeltaCom, Inc., - Integrated Packages - Simplici-T
  • ITC DeltaCom, Inc., - Simpli-Business
  
Data Services
Internet Service Providers (ISP)
DSL
Digital Subscriber Line. Accessed via a phone line, but which, in most cases, allows calls to be made using the same phone line while connected to the internet. While speeds are dependant on the distance of the connection to the providers central office, speeds are typically far greater than Dial-Up, and range from 1.5 Mbps upwards.

Target Products:

  • ITC DeltaCom, Inc., - Internet Services - Internet Access
  • EarthLink DSL & Home Phone Service
  • New Edge Networks - Internet Access - Business DSL
  • EarthLink High Speed DSL Internet
  • ITC DeltaCom, Inc., - Interstate Fibernet - Broadband Services
  
Dial-up
Internet service provided over an analog modem. Speeds are limited to 56 Kbps.

Buyer Products:

  • MSN Dial-Up

Target Products:

  • EarthLink - Internet Access - Dial-Up
T1 Dedicated
Digital service targeted toward businesses using a dedicated line. Speeds start at 1.5 Mbps (T1) , and go as high as 2.488 Gbps (OC-48).

Target Products:

  • ITC DeltaCom, Inc., - Networking & Internet Service
  • ITC DeltaCom, Inc., - Internet Services - Secure Access
  • ITC DeltaCom, Inc., - Internet Services - Internet Access
  • ITC DeltaCom, Inc., - INET Service
  • ITC DeltaCom, Inc., - Enterprise - Data
  • New Edge Networks - Internet Access - Business T1
  • New Edge Networks - Internet Access - Enterprise T1|T3
  • One Communications Corp. - Data and Internet Services
  • New Edge Networks
  • STS Telecom - Mega One
  • STS Telecom - Mega PRI
  
Transport Services  
Call Management/Routing Services
Service provided to telecommunications companies which includes Call Management; SS7 Connectivity (Caller ID, Call forwarding services); and Subscriber Management Services.

Target Products:

  • ITC DeltaCom, Inc., - Interstate Fibernet - Operator Services
  
Data Transport
Service provided to business and other organizations which require dedicated connections to local and wide area networks. Includes ATM, Frame Relay, SONET, Ethernet, Private Line, and VPN data services.

Target Products:

  • ITC DeltaCom, Inc., - Interstate FiberNet - Data Services - VPN
  • ITC DeltaCom, Inc., - Interstate FiberNet - Data Services - Point-to-Point
  • New Edge Networks
  • New Edge Networks - Private IP Networks - IPsec
  • New Edge Networks - Private IP Networks - Ethernet
  • New Edge Networks - Private IP Networks - EVDO
  • New Edge Networks - Private IP Networks - DSL
  • New Edge Networks - Private IP Networks - T1
  • STS Telecom - Metro-E
  • STS Telecom - OC-X
  • ITC DeltaCom, Inc., - Data Services - ATM
  • ITC DeltaCom, Inc., - Data Services - Frame Relay
  • ITC DeltaCom, Inc., - Data Services - IP VPN
  • ITC DeltaCom, Inc., - Data Services - Point-to-Point
  • ITC DeltaCom, Inc., - Data Services - Secure IP
  • ITC DeltaCom, Inc., - Data services - Simpli-Data
  • ITC DeltaCom, Inc., - Internet Services - Diversi-T
  • ITC DeltaCom, Inc., - Interstate FiberNet - Data Services - ATM
  • ITC DeltaCom, Inc., - Interstate FiberNet - Data Services - Frame Relay
  • ITC DeltaCom, Inc., - Interstate FiberNet - Data Services - DS3
  • ITC DeltaCom, Inc., - Interstate FiberNet - Data Services - DS1
  
IP Backbone Connection
Internet connectivity services typically offered to telecommunications providers, which in turn sell these to end users.

Target Products:

  • ITC DeltaCom, Inc., - Interstate FiberNet - Metro Network Services
  
Voice Services  
Local
Intra-LATA (Local Access and Transport Area) voice services.

Target Products:

  • Earthlink True Voice
  • ITC DeltaCom, Inc., - Voice Services - Local Telephone Service
  
Long Distance
Long distance services offered within the United States and with other countries.

Target Products:

  • ITC DeltaCom, Inc., - Long Distance - International Calling
  • Earthlink True Voice
  • STS Telecom - Long Distance & Toll Free
  
Voice Over IP Telephony (VoIP)
Telephone service which employs a users high-speed internet connection to make calls, rather than the conventional 'Circuit switching' method employed by traditional long distance carriers.

Target Products:

  • Earthlink True Voice
  • STS Telecom - SIP Trunking
  • ITC DeltaCom, Inc., - Deltacom - IP Telephony Solutions
  • EarthLink DSL & Home Phone Service
  • STS Telecom - VPX
  • One Communications Corp. - VoIP & Voice Services
  • One Communications Corp. - Managed Services
  
International  
Americas  
Canada  
Voice Services
Voice communications services or POTS (Plain Old Telephone Service) offered in Canada. Includes basic ISP connectivity (i.e. Dial-up) services offered by most phone companies.

Target Products:

  • Earthlink True Voice
  
Consumer  
Media  
Electronic Media  
Consumer Content  
Information and News  
Healthcare
Healthcare related content targeted toward consumers.

Buyer Products:

  • Microsoft HealthVault
  
Maps
Web sites that provide online maps and driving directions.

Buyer Products:

  • Bing Maps
  
Web Navigation  
Portal
Portals are destination sites that aid users in navigating the World Wide Web. Incorporating both Search Engines and Directories, these sites act as all-inclusive starting points for the web, usually offering additional services such as news, shopping, e-mail/instant messaging, online games, and clubs/groups.

Buyer Products:

  • MSN.com
  
Search  
Search Engine
A web site that employs 'bots' to search the internet. Search engines take the information obtained by these bots and use it to create a searchable index of the internet.

Buyer Products:

  • Bing.com
  
Technology
Hardware  
Computer Hardware  
Peripherals  
Audio  
Input Microphones/Headsets
Personal computer microphones and headsets used to convert sound waves into electrical signals for audio input.

Buyer Products:

  • LifeChat Series
  
Output Speakers/Headphones
Personal computer speakers, subwoofers, and headphones used to output digital audio.

Buyer Products:

  • LifeChat Series
  
Human Interface  
Gaming Controls
Human interface controllers designed to enhance game play experience. Includes hand-held game pads, joysticks, flight sticks, steering wheels, pedals, and targeting devices.

Buyer Products:

  • SideWinder Series Mice
  • Xbox 360 Controller
  • Habu Gaming Mouse
  • SideWinder Series Keyboards
  
Home/Office Productivity  
Keyboards
Alphanumeric character input devices. Includes keyboards that are ergonomically enhanced to reduce user stress, keyboards with programmable extra keys, built-in pointing devices, and wireless keyboards.

Buyer Products:

  • Natural Series Keyboards
  • Comfort Series Keyboards
  • Bluetooth Mobile Keyboards
  • Arc Keyboard Series
  • Wireless Series Keyboards
  • Notebook Cooling Base
  • Wireless Media Desktop Series
  
Pointing Devices
Input devices used to control an on-screen pointer for efficient point-and-click, scroll, drag-and-drop, draw, and window manipulating operations.

Buyer Products:

  • Comfort Series Mice
  • Explorer Series Mice
  • Wireless Series Mice
  • SideWinder Mice
  • Arc Mouse
  • Natural Series Mice
  • Wireless Mobile Mouse Series Mice
  • Notebook Series Mice
  • IntelliMouse Series Mice
  • Wireless Media Desktop Series
  • Presenter Series Mice
  • Optical Series Mice
  
Visual  
Video  
Desktop Digital Cameras (Live Motion)
Computer system peripheral that captures live video images.

Buyer Products:

  • LifeCam Series
  
Systems  
Business/Personal  
Surface Computing
Surface Computing describes a type of next generation touch-controlled "table-top" computing systems. These systems can also communicate and share content with other digital devices wirelessly.

Buyer Products:

  • Microsoft Surface
  
Consumer Electronics  
Audio  
Personal Stereo  
Audio Players  
Digital Audio Players
Hard-drive or flash memory-based portable consumer electronics device that organizes and plays audio files.

Buyer Products:

  • Zune Media Players
  
Electronic Gaming/Entertainment  
Gaming Peripherals
Devices such as keypads, joysticks and other controllers and products, sometimes used in conjunction with video game consoles.

Buyer Products:

  • Kinect for Xbox 360
  • Microsoft Xbox Series Controllers/Racing Wheel & Accessories
  
Video Game Consoles
Video game console-based systems that use game cartridges or discs and connect with a television unit.

Buyer Products:

  • Microsoft Xbox
  
Information Technology (IT) Services
Enterprise and Technology Consulting  
Information Technology (IT) Consulting  
Infrastructure and Network Services  
Design, Integration, and Implementation  
Networks and Servers
The design, installation, and legacy integration of network and server infrastructure.

Target Products:

  • ITC DeltaCom, Inc., - Interstate Fibernet - Professional Services
  
Procurement
Service in which all of the procurement of the clients hardware and software requirements are handled by the service provider, using close relationships with vendors, and bulk buying to minimize cost for the client.

Target Products:

  • ITC DeltaCom, Inc., - Interstate Fibernet - Professional Services
  
Security and Management  
Disaster Recovery/Planning Services
Developing policies and procedures to ensure rapid restoration of computer systems and resumption of computer-based operations in the event of a systems disruption. Includes backing up and maintenance of files for clients from offsite locations.

Target Products:

  • ITC DeltaCom, Inc., - Data Services - Data Assurance - PC Assurance
  • ITC DeltaCom, Inc., - Data Services - Data Assurance - Server Assurance
  • Business Vitals - Technology & IT Solutions
  
Network Security
Network services which revolve around managing the security of a company's network and preventing unauthorized access.

Target Products:

  • Business Vitals - Technology & IT Solutions
  
Internet/Online Services
Development/Design Services  
Domain Services
Internet services involving the registration and management of alphanumeric domain names to Internet Protocol (IP) addresses. For example, the domain name www.reveredata.com is registered to IP address 66.106.163.210.

Target Products:

  • EarthLink Business Web Hosting and e-Commerce
  
Product Presentation
Services that improve the website presentation of a client's products, including the creation and hosting of virtual walkthroughs or VRML models.

Target Products:

  • EarthLink Business Web Hosting and e-Commerce
  
Web Development/Consulting
Services designed to build and maintain a client's Web presence. Includes site planning, storefront building, integration, and graphic design.

Target Products:

  • EarthLink Business Web Hosting and e-Commerce
  
E-Commerce Service Providers  
Internet Merchant Services
Technologies and services which provide the store hosting and/or payment processing infrastructure for Electronic Commerce storefronts such as credit card acceptance, shopping carts, procurement services, etc.

Target Products:

  • EarthLink Business Web Hosting and e-Commerce
  
Hosting Services
Application Service Providers (ASPs)  
Enterprise Applications
Hosted services in which enterprise-class software applications are accessed using a thin client. The application logic is run on a remote machine and the host retains ownership of both the software and the server hardware. Includes Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Human Resource Management (HRM) applications.

Buyer Products:

  • Windows Azure Platform
  
Messaging
Hosted services that provide enterprises with messaging functions such as e-mail, calendaring, fax, and unified messaging.

Target Products:

  • EarthLink Business Web Hosting and e-Commerce
  
Online Meeting Place
Services in which the provider provides the virtual facilities necessary for online meetings.

Target Products:

  • ITC DeltaCom, Inc., - Conferencing Solutions - Conference Calling
  • ITC DeltaCom, Inc., - Conferencing Solutions - Web Conferencing
  
Web Hosting Services  
Colocation/Data Centers
The hosting of physical servers at an Internet Data Center. The host provides high speed Internet access while the client maintains ownership of the hardware and software.

Target Products:

  • ITC DeltaCom, Inc., - Interstate FiberNet - PRI Services - Colocation
  • One Communications Corp. - Data Center Collocation
  
Managed Hosting
Service in which the Web hosting company provides the connectivity and the hardware, and the client company provides only the Web content.

Target Products:

  • ITC DeltaCom, Inc., - Web Hosting Solutions
  • EarthLink Business Web Hosting and e-Commerce
  • Business Vitals - Managed Services
  
Network Security Services  
Access Control
Outsourced security services that ensure protection for a company's Web site, intranet, or extranet. Includes services which screen Web sites for undesirable content, such as pornography, criminal activity, and hate groups.

Target Products:

  • ITC DeltaCom, Inc., - Internet Services - Internet Access
  • ITC DeltaCom, Inc., - Internet Services - Secure Access
  • Business Vitals - Technology & IT Solutions
  
Software  
Design/Engineering  
Design Automation  
Mapping and Geographic Information Systems (GIS)
Software that dynamically creates maps and can either locate an object or location on those maps, or compute driving directions between two points. Companies providing digital map information are also included.

Buyer Products:

  • Bing Maps
  • Microsoft Research Worldwide Telescope
  • Microsoft Streets & Trips
  • Microsoft MapPoint
  • MSN Direct
  
Multimedia  
Graphics Arts  
Layout/Publishing
Professional software used for the creation of print publications. These applications allow for the visual arrangement of text and graphic elements within a variety of formats, as well as for preparation of files for the requirements of high level printing equipment. May include functionality for conversion of documents for use on the web.

Buyer Products:

  • Microsoft Office Publisher
  
Video  
Video Enhancement Technology
Video enhancement technology licensed to video/audio OEMs, as well as film studios, production companies, and movie theaters.

Buyer Products:

  • Microsoft DirectX
  
Software Development  
Development Environments  
General  
Component-based
Computer aided software engineering (CASE) tools that assemble applications from models using pre-built components.

Buyer Products:

  • Microsoft Silverlight
  
Proprietary Programming Languages
Software development tools that use a proprietary software language.

Buyer Products:

  • Microsoft Visual FoxPro
  • Microsoft ASP.NET
  • Microsoft .NET Framework
  • Microsoft XNA Game Studio
  
Standard Programming Languages
Software development environments that permit programming using any number of widely-used standard programming languages such as Basic, C, C++, Java, COBOL, and Fortran.

Buyer Products:

  • Microsoft Robotics Developer Studio
  • Microsoft Silverlight
  • Microsoft Visual Basic
  • Microsoft Visual C
  • Microsoft Visual Studio
  • Microsoft Visual C#
  • Microsoft XNA Game Studio
  
Specialized  
Graphical User Interface (GUI) Builders
Software development tools designed to build graphical user interfaces (GUIs), usually for legacy applications.

Buyer Products:

  • Microsoft Expression Series
  • Microsoft Silverlight
  
Support Utilities  
Component Libraries
Software products which contains a collection of pre-built object components that can be used to rapidly assemble new program applications.

Buyer Products:

  • Microsoft DirectX
  
Website Development  
E-Commerce  
Marketplace
Site development software that focuses on sites that perform one-to-one or one-to-many transactions.

Buyer Products:

  • Microsoft Commerce Server
  
Website Authoring/Publishing
Software used to create non-transactive Websites.

Buyer Products:

  • Microsoft Expression Series
  • Microsoft Office Live Small Business
  • Microsoft Commerce Server
  
Enterprise Management  
Asset Management  
Capital/Fixed
Software that inventories, tracks, and helps manage the use of capital assets.

Buyer Products:

  • Microsoft Dynamics
  
Information Technology
Software that inventories, tracks, and monitors the use of IT assets, such as software applications and hardware.

Buyer Products:

  • Microsoft Dynamics
  
Business Intelligence  
Executive Information Systems
Software that provides summarized business information to improve executive decisions through data modeling forecasting, and simulation. Includes features such as balanced scorecards and "what if" analysis for profitability and performance.

Buyer Products:

  • Microsoft Dynamics
  
Query/Report
Software that allows users to make simple queries and also provide the results in report form.

Buyer Products:

  • Microsoft Dynamics
  
Content Management  
Document Management  
Creation/Management
Software which creates electronic forms/documents, either from multiple data sources, or independently. Includes routing/distribution, search, viewing, and storage capabilities.

Buyer Products:

  • Microsoft Office SharePoint Server
  • Microsoft Office OneNote
  • Microsoft Office InfoPath
  
Information Portals
Enterprise Content Management software, designed to enable sharing of and access to, corporate information across the enterprise.

Buyer Products:

  • Microsoft Dynamics
  • Microsoft Office SharePoint Server
  • Microsoft Commerce Server
  
Web Content Management (WCM)
Software that enables non-technical personnel to update and manage web content.

Buyer Products:

  • Microsoft Office SharePoint Server
  
Customer Relationship Management (CRM)  
Marketing  
Analytics
Tools used for analyzing market trends, customer behavior, profitability, and overall marketing effectiveness.

Buyer Products:

  • Microsoft Dynamics
  
Automation/Management
Enterprise applications that perform the core services associated with marketing, including market segmentation and list management capabilities.

Buyer Products:

  • Microsoft Dynamics
  
Online Marketing
Solutions designed to leverage the Internet as a targeted marketing tool.

Buyer Products:

  • Microsoft Advertising
  • Microsoft Dynamics
  
Telemarketing
Software primarily used in contact centers for improving the effectiveness of telemarketing campaigns.

Buyer Products:

  • Microsoft Dynamics
  
Sales Force Automation (SFA)  
Analytics
Tools used for analyzing customer sales data, measuring sales effectiveness, and managing sales related financials.

Buyer Products:

  • Microsoft Dynamics
  
Automation/Management
Enterprise applications that perform the core services associated with sales force automation, including contact management, marketing encyclopedia, sales analysis, customer tracking, and territory management.

Buyer Products:

  • Microsoft Dynamics
  
Mobile/Field Sales
Software which enables mobile sales force personnel to access sales data.

Buyer Products:

  • Microsoft Dynamics
  
Service  
Analytics
Tools used for measuring service effectiveness and to ensure efficient use of a service organization's resources.

Buyer Products:

  • Microsoft Dynamics
  
Automation/Management
Enterprise applications that perform the core functions associated with customer service, including service level compliance and complaint management.

Buyer Products:

  • Microsoft Dynamics
  
Mobile/Field Service
Software which enables mobile service personnel to access service data.

Buyer Products:

  • Microsoft Dynamics
  
Enterprise Resource Planning (ERP)  
Business Planning/Control  
Business Process Automation/Monitoring
Software used to identify bottlenecks and to streamline business processes.

Buyer Products:

  • Microsoft Office Visio
  
Project Management
Software that is designed specifically to manage project workflow and organization. Includes functions such as task assignment, progress reporting, information dissemination, and project costing.

Buyer Products:

  • Microsoft Dynamics
  • Microsoft Office Project
  
Financial/Compliance  
Financial Management/Automation
ERP Software used for financial management tasks such as budgeting, strategic planning, and reporting. Includes enterprise procurement software.

Buyer Products:

  • Microsoft Dynamics
  
General Ledger/Accounting
Software that performs general accounting functions, such as balance sheet, income, and cash flow calculations.

Buyer Products:

  • Microsoft Dynamics
  
Payment Processing
Software that manages payment processing functionality.

Buyer Products:

  • Microsoft Dynamics
  
Human Resources  
Benefit/Payroll Management
Software that aids in the management of the workforce, performing functions such as benefit and payroll management.

Buyer Products:

  • Microsoft Dynamics
  
Employee Directory
Software used to manage an organization's list of employees or members.

Buyer Products:

  • Microsoft Dynamics
  
Employee Training
Software designed to enable enterprise training and continuing education programs.

Buyer Products:

  • Microsoft Dynamics
  
Performance Management
Software which enables organizations to track and enhance the performance of its employees.

Buyer Products:

  • Microsoft Dynamics
  
Recruitment
Software applications that track and manage contacts for employee recruitment.

Buyer Products:

  • Microsoft Dynamics
  
Supply Chain  
Channel Partner Management
Software, including sourcing and catalog management, which helps improve supply chain efficiency through improved partner communication and control.

Buyer Products:

  • Microsoft Dynamics
  
Inventory/Transportation/Order Management
Software used to manage sales orders, transportation, inventory, and warehousing.

Buyer Products:

  • Microsoft Dynamics
  
Management
Supply chain management software, covering critical supply chain components, such as transportation/warehousing, demand management, procurement, MRO (Maintenance, Repair, and Operating equipment) and channel partner management.

Buyer Products:

  • Microsoft Dynamics
  
Home/Office  
Games  
Console Games  
Action/Adventure
Console gaming software that focuses primarily upon real-time/time-based action.

Buyer Products:

  • Microsoft Games Studios Gears of War Series
  • Lionhead Studios Fable Series
  • Microsoft Game Studios Halo Series
  
Family/Children
Console entertainment software that is designed for families or young children.

Buyer Products:

  • Microsoft Game Studios Kinect JoyRide
  • Lionhead Studios The Movies Series
  • Microsoft Game Studios Lips
  • Microsoft Game Studios Kinect Adventures
  • Microsoft Game Studios Viva Pinata
  
Role-Playing Games
Console gaming software focused on the player's assumption of a character and the development of that character.

Buyer Products:

  • Lionhead Studios Battle of The Gods
  • Lionhead Studios Creature Isle
  
Sports
Console gaming software focused on a sport or sporting event such as baseball, football, racing, etc.

Buyer Products:

  • Microsoft Game Studios Forza Motorsport Series
  • Microsoft Game Studios Kinect Sports
  
Strategy
Console gaming software focused on the execution of a strategy - often turn-based.

Buyer Products:

  • Lionhead Studios Black & White Series
  
Online Games
Web sites that allow visitors to engage in video games for fun or prizes. Excludes betting/gambling games.

Buyer Products:

  • Xbox Live Games
  • MSN Games
  
PC Games  
Action/Adventure
Personal Computer gaming software that focuses primarily upon real-time/time-based action.

Buyer Products:

  • Microsoft Games Studios Gears of War Series
  • Microsoft Game Studios Microsoft Flight Simulator
  
Family/Children
Personal Computer entertainment software that is designed for families or young children.

Buyer Products:

  • Microsoft Game Studios Zoo Tycoon Series
  
Handheld/Smart Phone  
Applications  
Browsers
Web browsers specifically designed for Handhelds and Smart Phones.

Buyer Products:

  • Microsoft Internet Explorer
  
Mobile Search
Software service that enables a user to search for content using voice commands or text queries.

Buyer Products:

  • Bing Mobile App
  • Tellme Networks
  
Operating Systems  
Handhelds
Operating system designed for handhelds.

Buyer Products:

  • Windows Mobile
  
Smart Phone
Operating system designed for smart phones, which is a phone with a microprocessor, memory, screen and built-in modem. The smart phone combines some of the capabilities of a PC in a handset device.

Buyer Products:

  • Windows Phone
  • Windows Mobile
  
Multimedia  
Audio  
Authoring
Software that enables a user to write, record, and edit music.

Buyer Products:

  • Microsoft Songsmith
  
Player
Applications which can download, edit, and playback music and sound files, as well as 'burning' and 'ripping' CD's, by converting CD files to MP3 format, and vice versa.

Buyer Products:

  • Microsoft Windows Media Player
  
Video  
Editing
Software-based editing systems used to create and modify web and home videos.

Buyer Products:

  • Windows Live MovieMaker
  
Photo
Software-based editing systems that are designed to modify photographs.

Buyer Products:

  • Windows Live Gallery
  • Microsoft Paint
  • Microsoft AutoCollage
  
Player
Client-side software that decodes and plays downloaded or streaming video files as well as 'burning' and 'ripping' DVD's.

Buyer Products:

  • Microsoft Windows Media Player
  
Productivity  
Communications  
Conferencing/Collaboration Tools  
Online Conference/Meeting
Software which allows enables remote meetings or conferences. The software allows the application to be marked up at any of the remote locations enabling all users see the same screen effects. Functionalities include electronic whiteboard, messaging, bulletin boards, and group scheduling.

Buyer Products:

  • Microsoft Office Live Meeting
  • Microsoft Office Groove
  • Microsoft Office Communicator
  
Messaging  
Chat/Instant Messaging
Software that allows users to send and receive text communications either in a real-time forum (chat) or as batch messages that are conveyed instantly (instant messaging).

Buyer Products:

  • Windows Live Messenger
  • Microsoft Office Communicator
  
E-mail Client
E-mail messaging platforms, which act as the interface for people to send and receive e-mail messages.

Buyer Products:

  • Microsoft Office Outlook
  
Video
Software that allows users to communicate through video messaging or real-time video chat .

Buyer Products:

  • Windows Live Messenger
  • Microsoft Office Communicator
  
VoIP
VoIP (Voice over Internet Protocol) desktop-based applications that allow an individual user to conduct telephone calls using the Internet as the transfer medium.

Buyer Products:

  • Microsoft Office Communicator
  
Web Browsers
Software used to navigate the internet.

Buyer Products:

  • Microsoft Internet Explorer
  
Document Creation  
Desktop Databases
Database software which resides on the desktop for personal use.

Buyer Products:

  • Microsoft Office Access
  
Presentation
Software applications that enable end-users to quickly and easily integrate and create presentations.

Buyer Products:

  • Microsoft Office PowerPoint
  
Specialized  
Business Documents
Desktop publishing software with functionality specific to the creation of business-related documents, such as business cards, labels, diaries, presentations and schedules.

Buyer Products:

  • Microsoft Office Publisher
  
Greeting Cards
Desktop publishing software with functionality specific to the creation of greeting cards.

Buyer Products:

  • Microsoft Office Publisher
  
Spreadsheets
Software which provides sophisticated calculation and rudimentary database functionality based on a two dimensional array of values.

Buyer Products:

  • Microsoft Office Excel
  
Suites
Integrated software packages that incorporate multiple office productivity software functions, including word processing, spreadsheet, database, and graphics applications.

Buyer Products:

  • Microsoft Works
  • Microsoft Office
  
Word Processing
Software that provides creation and editing of text documents.

Buyer Products:

  • Microsoft Office InfoPath
  • Microsoft Office OneNote
  • Microsoft Office Word
  
Personal Information Management  
Finance
Software which provides personal finance information management.

Buyer Products:

  • Microsoft Money
  
Speech Conversion  
Text-to-Speech
Software that allows the computer to recognize text from a document and verbalize it.

Buyer Products:

  • Microsoft Speech Server
  
System Software  
Operating Systems
Single-installation operating systems designed for desktop computers.

Buyer Products:

  • Microsoft Windows Series
  
IT Infrastructure  
Communications  
Data  
Messaging Servers/Systems
Server software stores, manages, and accesses text-based messages such as e-mail and fax.

Buyer Products:

  • Microsoft Office Communications Server
  • Microsoft Exchange Server
  
Voice  
Voice over Internet Protocol (VoIP) Systems
Software that works with corresponding hardware technologies allowing for voice communications over Internet Protocol (IP) networks.

Buyer Products:

  • Microsoft Office Communications Server
  
Voice/Telephony Messaging  
Voice Server
Software-only solutions that record and play back voice messages.

Buyer Products:

  • Microsoft Office Communications Server
  
Data Storage  
Database  
Database Management Systems (DBMS)  
Relational
System software that stores data in a relational table. Includes Client/Server, Embedded, and Mainframe systems.

Buyer Products:

  • Microsoft SQL Azure
  • Microsoft SQL Server
  
Storage Administration  
Data Availability
Software designed to ensure availability of information stored on either a single system or a storage network. Includes protection, replication, mirroring, backup, restoration and clustering software.

Buyer Products:

  • Microsoft Windows Storage Server
  • Microsoft SystemCenter
  
Media Device Management
Software used to manage storage media via various technologies such as computer output to laser disc (COLD), direct access storage device (DASD), and Redundant Array of Inexpensive Disks (RAID).

Buyer Products:

  • Microsoft Data Protection Manager
  
Performance Optimization/Support
Software that enhances or monitors and enhances the performance of enterprise storage systems.

Buyer Products:

  • Microsoft Windows Storage Server
  
Policy/Resource Management
Software that manages the protection, access, and sharing policies of large scale data networks.

Buyer Products:

  • Microsoft Windows Storage Server
  
Enterprise Application Integration (EAI)/Middleware  
Adaptors/Integration Brokers
Software that allows disparate applications to exchange data through adaptors and industry standard interfaces such as object request brokers (ORB). Does not include application-specific APIs.

Buyer Products:

  • Microsoft Host Integration Server
  • Opalis Integration Server
  • Windows Azure Platform - AppFabric
  • Microsoft BizTalk Server
  
Application Servers
Server software that comprises the middle tier of a three-tier architecture. Application servers execute all application logic and then output the information to thin clients.

Buyer Products:

  • Windows Small Business Server
  • Microsoft BizTalk Server
  • Microsoft Host Integration Server
  • Opalis Integration Server
  
Network  
Network Administration  
Network Management
Software that performs one or more of the many functions involved in managing a network, such as configuration, provisioning, and trouble management.

Buyer Products:

  • Microsoft SystemCenter
  
Traffic Management/Load Balancing
Software that can monitor and adjust network data flows in order to optimize bandwidth usage. Includes Virtual LANs (VLANs)

Buyer Products:

  • Microsoft SystemCenter
  
Network Security  
Access Policy  
Policy Management
Software that manages the security policy for enterprises and networks, including authentication and administration of hardware and software resource access.

Buyer Products:

  • Microsoft Forefront
  • Microsoft Identity Lifecycle Manager
  
Virtual Private Network
Software that enables network participants to send and receive data across a shared or public internetwork in a manner that emulates the security properties of a private link.

Buyer Products:

  • Microsoft Virtual PC
  
Filtering  
Anti-Virus
Filtering software that searches for and neutralizes computer viruses in files. Includes anti-Spyware software.

Buyer Products:

  • Microsoft Antigen
  • Microsoft Forefront
  
E-mail
Filtering software that can identify and prevent the transfer of unsolicited bulk e-mails, also known as spam.

Buyer Products:

  • Microsoft Antigen
  • Microsoft Forefront
  
Web Content
Filtering software that prevents access to restricted websites based on criteria set by the administrator.

Buyer Products:

  • Microsoft Forefront
  
Support Utilities  
System Performance/User Productivity Enhancement
Miscellaneous IT infrastructure support utilities used to improve system capabilities and/or user efficiency.

Buyer Products:

  • Microsoft Operations Manager
  
Virtualization
Virtualization is a technology that creates an external, often more simplified and intuitive interface for accessing computing resources, while hiding the underlying technical detail. Virtualization can allow for more efficient, expansive, and improved ease of use of computing resources.

Buyer Products:

  • Microsoft SystemCenter
  • Microsoft Hyper-V Server
  
Operating Systems  
Embedded
Hardware-embedded operating systems, providing greater control and allowing for fewer resource requirements

Buyer Products:

  • Microsoft Windows Embedded Series
  
Enterprise Desktop
Desktop operating systems suitable for enterprise-wide deployment in a highly networked environment, generally allowing for central management.

Buyer Products:

  • Microsoft Windows Series
  
Server/Cluster
Operating systems designed to operate on single servers or networked server clusters.

Buyer Products:

  • Microsoft Windows Server Series
  
Industry-Specific  
Healthcare/Pharma  
Business Management/Information Systems  
Operations Support  
Enterprise Management  
Compliance Management
Software that helps healthcare providers maintain compliance with federal regulations, such as those imposed by Medicare regarding the validation of procedures.

Buyer Products:

  • Sentillion Privacy Auditor
  
Data Warehousing/Analysis/Query
Software that sorts, analyzes, and presents data to help healthcare providers improve their operational efficiency and increase profitability. Includes Data warehousing functionality.

Buyer Products:

  • Microsoft Amalga Hospital Information System
  • Microsoft Amalga Unified Intelligence System
  
Enterprise Resource Planning (ERP)
Software that manages enterprise resource planning specifically for healthcare companies.

Buyer Products:

  • Sentillion Vergence
  • Sentillion expreSSO
  • Sentillion proVision
  • Sentillion Identity Management
  
Network Communications  
Connectivity
Software that manages the integration of multiple healthcare systems and the communication of data between those systems.

Buyer Products:

  • Sentillion Way2
  • Sentillion vThere
  
Drug Development  
Laboratory Information Systems
Software systems designed to handle the general information management needs of a laboratory.

Buyer Products:

  • Microsoft Amalga Life Sciences
  
Manufacturing  
Enterprise Resource Planning  
Business/Cost Management
Software for the management of manufacturing business processes in general or cost accounting and analysis.

Buyer Products:

  • Microsoft Dynamics
  
Product Lifecycle Management
Software that provides storage and access management for product and process data. Product data includes information such as physical dimensions and assembly processes.

Buyer Products:

  • Microsoft Dynamics
  
Manufacturing Management  
Planning/Scheduling/Analysis  
Performance Monitoring/Analysis
Software used to monitor and analyze the performance of manufacturing components, such as programmable logic controllers (PLCs) and instrumentation.

Buyer Products:

  • Microsoft Dynamics
  
Supply Chain Execution
Software that assists manufacturers in optimizing their manufacturing supply chain. Include capacity planning and scheduling operations.

Buyer Products:

  • Microsoft Dynamics
  
Media/Entertainment  
Broadcast Management
Software systems that control the various processes involved in video broadcasting, including capture, scheduling, playback, and distribution.

Buyer Products:

  • Navic Networks HyperGate
  
Interactive Television
Software that enables additional information to be provided to television viewers on an on-demand basis. The content is delivered through a cable set-top box and generally involves an Internet connection.

Buyer Products:

  • Microsoft Mediaroom
  
Radio/Advertising
Software applications targeted toward Radio Stations and/or Advertising companies.

Buyer Products:

  • Navic Networks Apollo EBIF
  • Navic Networks Admira Optimized Media
  • Navic Networks Reveal
  • Microsoft Tag
  
Telecommunications  
Enhanced Services  
Advanced Services
Software pertaining to advanced services offered by wire line and wireless carriers, including Local Number Portability (LNP), CALEA Wiretap compliance, SS7 (Signaling System 7), Call routing, Interactive Voice Response (IVR), and Emergency point of origination software.

Buyer Products:

  • Tellme Networks - Tellme Platform
  • Musiwave
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Google Inc. n/a 195,640.947 18.49 16.77 3.52 5.51 3.97
Yahoo! Inc. n/a 20,378.558 20.01 19.51 4.09 4.56 2.43
Rackspace Hosting, Inc. n/a 6,326.514 96.48 62.06 6.61 4.93 13.16
AOL, Inc. n/a 1,962.905 142.16 33.35 0.89 0.93 2.02
United Online, Inc. n/a 494.905 7.63 8.43 0.43 0.59 n/a
Cbeyond, Inc. n/a 278.882 n/a 100.44 0.58 0.54 1.68
Buyer
  Apple Inc. n/a 457,445.192 13.84 11.57 3.58 2.92 5.34
International Business Machines Corp. n/a 229,802.973 14.78 12.98 2.15 2.12 n/a
Target
  Microsoft Corporation n/a 255,495.222 10.93 11.48 3.55 3.49 6.10
Google Inc. n/a 195,640.947 18.49 16.77 3.52 5.51 3.97
AT&T Inc. n/a 176,831.840 45.16 12.76 1.40 1.38 n/a
Verizon Communications Inc n/a 106,684.598 44.44 15.17 0.96 0.93 n/a
Comcast Corporation n/a 74,707.146 19.40 14.61 1.48 1.25 n/a
Time Warner Cable Inc. n/a 24,541.576 15.27 13.91 1.25 1.20 n/a
CenturyLink Inc n/a 23,437.193 15.48 14.96 1.66 1.29 n/a
Yahoo! Inc. n/a 20,378.558 20.01 19.51 4.09 4.56 2.43
Sprint Nextel Corporation n/a 6,857.222 n/a -1.98 0.20 0.20 n/a
Charter Communications Inc n/a 6,446.253 n/a -244.96 0.90 0.87 n/a
Rackspace Hosting, Inc. n/a 6,326.514 96.48 62.06 6.61 4.93 13.16
Windstream Corporation n/a 6,305.707 24.02 15.02 1.55 1.40 n/a
Level 3 Communications, Inc. n/a 2,513.122 n/a -6.37 0.48 0.38 n/a
AOL, Inc. n/a 1,962.905 142.16 33.35 0.89 0.93 2.02
Vonage Holdings Corp. n/a 691.046 58.50 7.12 0.79 0.76 n/a
United Online, Inc. n/a 494.905 7.63 8.43 0.43 0.59 n/a
Web.com Group, Inc. n/a 377.285 n/a 10.34 2.31 0.82 n/a

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Digital River, Inc. 24.70% 715.114 43.71 22.47 1.80 1.78 2.15
DuPont Fabros Technology, Inc. 22.40% 1,449.984 26.50 13.35 4.07 4.43 1.21
Lionbridge Technologies Inc 20.00% 159.306 103.60 16.94 0.37 0.37 4.64
Dolby Laboratories, Inc. 13.00% 4,142.196 9.34 15.05 2.90 4.50 2.94
COMSCORE, Inc. 11.00% 717.176 n/a 169.62 3.25 2.52 26.90
VanceInfo Technologies Inc.(ADR) 10.00% 604.637 23.77 18.54 2.37 1.78 2.58
iSoftStone Holdings Ltd (ADR) 10.00% 535.518 n/a 18.16 2.06 1.53 2.11
HiSoft Technology International Ltd 10.00% 348.746 3.62 13.04 1.98 1.35 2.17
International Business Machines Corp. n/a 229,802.973 14.78 12.98 2.15 2.12 n/a
SAP AG (ADR) n/a 77,219.122 29.23 15.69 4.51 3.76 39.20
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) n/a 71,730.727 1.44 15.87 0.61 4.90 0.12
Time Warner Inc. n/a 39,200.033 14.28 11.86 1.35 1.34 n/a
Nokia Oyj n/a 18,943.093 n/a 23.05 0.49 0.39 3.37
WPP PLC (ADR) n/a 15,512.950 4.09 11.05 1.03 0.93 n/a
Activision Blizzard, Inc. n/a 14,085.195 13.28 13.91 2.96 3.17 5.06
Citrix Systems, Inc. n/a 13,454.982 38.07 31.71 6.10 5.40 11.72
Sodexo SA (ADR) n/a 11,832.040 21.66 16.64 0.49 0.52 n/a
Seagate Technology PLC n/a 10,990.023 12.06 4.27 0.95 0.73 3.67
Target
  AT&T Inc. n/a 176,831.840 45.16 12.76 1.40 1.38 n/a
Verizon Communications Inc n/a 106,684.598 44.44 15.17 0.96 0.93 n/a
Comcast Corporation n/a 74,707.146 19.40 14.61 1.48 1.25 n/a
Time Warner Cable Inc. n/a 24,541.576 15.27 13.91 1.25 1.20 n/a
CenturyLink Inc n/a 23,437.193 15.48 14.96 1.66 1.29 n/a
Level 3 Communications, Inc. n/a 2,513.122 n/a -6.37 0.48 0.38 n/a
MegaPath Inc. n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Wal-Mart Stores, Inc. n/a 214,951.526 13.16 12.62 0.49 0.46 4.60
Toshiba Corporation (USA) n/a 106,999.450 1.01 n/a 0.02 n/a 0.14
Daimler AG n/a 65,345.179 12.79 n/a 0.51 n/a n/a
3M Co n/a 61,828.941 14.68 13.95 2.09 2.04 8.96
Hewlett-Packard Company n/a 59,528.277 9.08 6.51 0.47 0.48 n/a
The Boeing Company n/a 55,544.808 13.77 16.79 0.81 0.71 n/a
E.I. du Pont de Nemours & Company n/a 47,697.477 13.83 12.22 1.23 1.17 n/a
France Telecom SA n/a 39,524.617 9.07 8.54 0.45 0.68 n/a
Target Corporation n/a 35,402.162 12.19 12.43 0.51 0.49 2.32
Dell Inc. n/a 32,383.313 9.16 8.90 0.52 0.52 42.44
General Mills, Inc. n/a 25,275.500 16.13 15.03 1.60 1.51 n/a
Yahoo! Inc. n/a 20,378.558 20.01 19.51 4.09 4.56 2.43
Sony Corporation (ADR) n/a 19,620.580 n/a -9.67 0.00 0.24 0.01
Nokia Oyj n/a 18,943.093 n/a 23.05 0.49 0.39 3.37
NetApp Inc. n/a 14,778.281 23.95 18.77 2.60 2.47 5.64
Activision Blizzard, Inc. n/a 14,085.195 13.28 13.91 2.96 3.17 5.06
CA, Inc. n/a 13,482.959 21.12 12.74 2.84 2.85 n/a
Cerner Corporation n/a 11,710.274 38.05 32.58 5.32 4.69 6.60
Fujitsu Limited (ADR) n/a 10,482.571 0.48 n/a 0.00 n/a 0.02
Lenovo Group Limited (ADR) n/a 8,893.001 2.56 19.93 0.33 0.31 n/a
Amdocs Limited n/a 5,859.043 16.73 12.47 1.83 1.76 5.48
Avnet, Inc. n/a 5,459.808 8.29 8.97 0.20 0.22 1.88
NEC Corporation (ADR) n/a 4,818.756 n/a n/a 0.00 n/a 0.01
MICROS Systems, Inc. n/a 4,191.944 19.24 26.62 2.73 3.84 n/a
IAC/InterActiveCorp n/a 3,827.626 22.35 22.13 1.86 1.53 22.73

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Comcast Corporation n/a 74,707.146 19.40 14.61 1.48 1.25 n/a
Level 3 Communications, Inc. n/a 2,513.122 n/a -6.37 0.48 0.38 n/a
Buyer
  Apple Inc. n/a 457,445.192 13.84 11.57 3.58 2.92 5.34
International Business Machines Corp. n/a 229,802.973 14.78 12.98 2.15 2.12 n/a
Wal-Mart Stores, Inc. n/a 214,951.526 13.16 12.62 0.49 0.46 4.60
Intel Corp n/a 140,175.445 11.16 11.01 2.60 2.49 4.61
Vodafone Group PLC n/a 139,340.508 10.37 10.21 1.65 1.94 n/a
Toyota Motor Corporation (ADR) n/a 135,144.282 0.83 34.13 0.01 n/a 0.01
Cisco Systems, Inc. n/a 109,426.181 23.05 12.66 2.44 2.38 n/a
Toshiba Corporation (USA) n/a 106,999.450 1.01 n/a 0.02 n/a 0.14
SAP AG (ADR) n/a 77,219.122 29.23 15.69 4.51 3.76 39.20
Comcast Corporation n/a 74,707.146 19.40 14.61 1.48 1.25 n/a
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) n/a 71,730.727 1.44 15.87 0.61 4.90 0.12
Hewlett-Packard Company n/a 59,528.277 9.08 6.51 0.47 0.48 n/a
EMC Corporation n/a 54,101.585 22.47 18.58 2.70 2.46 10.74
News Corp n/a 52,143.826 10.05 14.46 0.89 1.53 12.54
Target
  Google Inc. n/a 195,640.947 18.49 16.77 3.52 5.51 3.97
AT&T Inc. n/a 176,831.840 45.16 12.76 1.40 1.38 n/a
Verizon Communications Inc n/a 106,684.598 44.44 15.17 0.96 0.93 n/a
Comcast Corporation n/a 74,707.146 19.40 14.61 1.48 1.25 n/a
Time Warner Cable Inc. n/a 24,541.576 15.27 13.91 1.25 1.20 n/a
CenturyLink Inc n/a 23,437.193 15.48 14.96 1.66 1.29 n/a
Level 3 Communications, Inc. n/a 2,513.122 n/a -6.37 0.48 0.38 n/a
Synergy Global Solutions, Inc. n/a n/a n/a n/a n/a n/a n/a
MegaPath Inc. n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 72,052.0 1,130.7 73,182.7
Other Revenue n/a n/a n/a
Total Revenue 72,052.0 1,130.7 73,182.7
Cost of Revenue 17,020.0 494.0 17,514.0
SG&A Expense 18,593.0 346.7 18,939.7
Depreciation & Amortization n/a 123.1 123.1
Research & Development 9,362.0 n/a 9,362.0
Interest Expense n/a n/a n/a
Other Operating Expense n/a n/a n/a
Unusual Expense (Income) n/a 45.3 45.3
Total Expenses 44,975.0 1,009.1 45,984.1
Operating Income 27,077.0 121.6 27,198.6
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 457.0 -61.9 395.1
Other, Net 53.0 n/a 53.0
Income Before Taxes 27,889.0 59.6 27,948.6
Income Taxes 4,421.0 23.9 4,444.9
Income After Taxes 23,468.0 35.7 23,503.7
Net Income - Excl. Xord. Items 23,468.0 35.7 23,503.7
Net Income - Incl. Xord. Items 23,468.0 35.7 23,503.7
Income Avail. to Common 23,468.0 35.7 23,503.7
Share Items
Basic Avg. Shares Outstanding 8,402.0 107.8 8,509.8
Basic EPS - Excl. Xord. Items 2.79 0.33 2.76
Basic EPS - Incl. Xord. Items 2.79 0.33 2.76
Full Dilution Adjustment n/a n/a n/a
Fully Diluted Shares Outstanding 8,465.0 108.5 8,573.5
F.D. EPS - Excl. Xord. Items 2.76 0.33 2.74
F.D. EPS - Incl. Xord. Items 2.76 0.33 2.74
Dividends Per Common Share 0.72 0.31 1.03
Balance Sheet
Assets
Cash and Equivalents 10,610.0 515.3 11,125.3
ST Investments 41,126.0 307.8 41,433.8
Accounts Receivable 13,643.0 103.8 13,746.8
Inventory 1,351.0 n/a 1,351.0
Prepayments and Advances n/a 16.0 16.0
Other Current Assets 5,783.0 85.3 5,868.3
Current Assets 72,513.0 720.4 73,233.4
PPE 18,556.0 n/a 18,556.0
Accum D&A -10,546.0 n/a -10,546.0
PPE, Net 8,010.0 384.6 8,394.6
Goodwill & Intangibles 22,251.0 726.3 22,977.3
Long Term Investments 7,550.0 12.3 7,562.3
Other Assets n/a n/a n/a
Other LT Assets 1,919.0 117.3 2,036.3
Total Assets 112,243.0 1,948.6 114,191.6
Liabilities
Accounts Payable 3,884.0 20.9 3,904.9
Payable/Accrued n/a n/a n/a
Accrued Expenses 2,677.0 166.3 2,843.3
ST Debt n/a 247.2 247.2
Curr Port of LTD & Cap Lease Oblg n/a 255.9 255.9
Other (Current) Liabilities 18,812.0 56.0 18,868.0
Current Liab. 25,373.0 499.1 25,872.1
LT Debt 11,932.0 655.1 12,587.1
Total LT Debt 11,932.0 655.1 12,587.1
Deferred Taxes 1,082.0 n/a 1,082.0
Other LT Liab. 9,735.0 32.0 9,767.0
Total Liabilities 48,122.0 1,186.1 49,308.1
Shareholders Equity
Common Stock 63,902.0 2.0 63,904.0
Additional Paid in Capital n/a 2,075.5 2,075.5
Retained Earnings -607.0 -617.8 -1,224.8
Treasure Stock n/a -697.2 -697.2
Other Equity 826.0 0.2 826.2
Total Equity 64,121.0 762.5 64,883.5
Total Liab. & Equity 112,243.0 1,948.6 114,191.6
Shares Outstanding 8,382.0 107.4 8,489.4
Cash Flow
Operating Cash Flow
CF Net Income 23,468.0 35.7 23,503.7
CF Depreciation 2,813.0 123.1 2,936.1
CF Deferred Taxes 683.0 15.9 698.9
Other Non-Cash Items 3,600.0 31.3 3,631.3
Change in Working Capital -1,595.0 -62.2 -1,657.2
Total Cash From Operating Activities 28,969.0 143.7 29,112.7
Investing Cash Flow (not calculated)
Capital Expenditures -2,234.0 -86.2 -2,320.2
Other Investing Cash Flows -13,738.0 97.0 -13,641.0
Total Cash From Investing Activities -15,972.0 10.8 -15,961.2
Financing Cash Flow (not calculated)
Dividends Paid -5,723.0 -34.6 -5,757.6
Purchase Or Sale of Stock -2,951.0 -38.7 -2,989.7
Purchase and Retirement of Debt 2,239.0 6.0 2,245.0
Other Financing Cash Flow 67.0 0.7 67.7
Total Cash From Financing Activities -6,368.0 -66.6 -6,434.6
Exchange Rate Effects -42.0 n/a -42.0
Net Change in Cash 6,587.0 87.9 6,674.9
Cash Taxes Paid n/a 4.8 4.8
Cash Interest Paid n/a 10.8 10.8