TOM INGRAM & ASSOCIATES, INC.
How Do You Compare to the Top 25% of Software Companies?
The following analysis is complied from publicly available financial data over the last 10 years
The following observations and comments are for informational purposes only, based on the opinion of Tom Ingram and Associates, which is not a licensed securities broker or financial analyst. No recommendation for purchase or sale of any security is intended. These comments and data are solely to assist software company owners and executives in development of strategy and operating goals.
Note: Some generic strategy categories seem to be emerging:
| Company Name |
Company Size, Based on Revenues (Large = > $500 million, Medium = >$100 million, < $500 million, Small = < $100 million) |
Results Category | Nature of The Business | Approx % of Revenues from Software Liscenses | Financial Analysis and Performance Charts | Observations / Comments |
| Documentum | Large | Flameout: No significant profits, enormous investment, marginal outcome for shareholders | Document management systems | 60% | DocumentumCashFlowAnalysisv8.pdf | |
| Cerner | Large | Big Win: Very strong profits, avg 18%, strong return on invested capital due to steady profits | Administrative systems for hospitals | n/a | CernerCashFlowAnalysisv8.pdf | |
| Carreker | Medium | Couldn't Sustain: Was steadily profitable, now profits off hard, market value way down, looks like bad outcome for shareholders | Systems for banks and financial industry | n/a | CarrekerCashFlowAnalysisv8.pdf | |
| Avatar | Small | Win: Solid profits avg 11%, fair market value based on low invested capital, debt paid down. Profits uncertain due to accounting treatment of capitalized software | ERP Software for Petroleum Exploration Industry | 18% | AvatarSystemsCashFlowAnalysisv8.pdf | |
| CACI International | Large | Steady fundamentals, if unspectacular: 6-7% consistent profits, Good return for shareholders on modest invested capital | Services Only to Government | very small | CACIInternationalCashFlowAnalysisv8.pdf | |
| Computer Programs | Small | Big Win: Spectacular performance for shareholders, avg 16% profits, fantastic cash generation, paying dividends back, very high market value with little capital invested | Financial and clinical systems for small / medium hospitals | n/a | ComputerProgramsCashFlowAnalysisv8.pdf | |
| Dendrite | Medium | Big Win: Solid profits, avg 12%, spectacular market value for low amount of invested capital, great recovery of market value after bubble burst | Systems for selling to pharmaceutical and Consumer Package Goods industries | n/a | DendriteCashFlowAnalysisv8.pdf | Revenue side focus |
| Docucorp | Small | Big Win: From initial losses, rose to solid profits, spectacular return on low invested capital, avg 11% profits | Document management for insurance, financial services, utilities | n/a | DocuCorpCashFlowAnalysisv8.pdf | |
| Filenet | Medium | Win: Solid, if unspectacular profits, avg 4-5%, good market value on large invested capital, great recovery of market value after bubble burst | Imaging, workflow, optical storage systems for company-wide applications (may have vertical niche focus) | FileNetCashFlowAnalysisv8.pdf | ||
| Fiserve | Large | Big Win: Very strong profits, avg 15%, spectacular market value on moderate invested capital, sustained market value as bubble burst | Services and software to financial services industry | 6% | FiServCashFlowAnalysisv8.pdf | "Little bit'o software sells a lot of services" |
| Group 1 Software | Medium | Big Win: Strong profits, avg 12%, spectacular market value from very low invested capital | Direct marketing and customer relationship systems | n/a | Group1SoftwareCashFlowAnalysisv8.pdf | Revenue side focus |
| Hyperion | Large | Big Win: Strong profits, avg 11%, spectacular market value on moderate invested capital, eventually recovered market value after bubble burst | Software for consolidation and reporting of financial results from separate business units | n/a | HyperionSolutionsCashFlowAnalysisv8.pdf | |
| IMPAC Medical | Small | Big Win: Strong profits, avg 11%, big win for shareholders, very high market value on moderate capital invested, took off after tech bubble burst | Medical (clinical?) systems for hospitals and labs | n/a | IMPACMedicalCashFlowAnalysisv8.pdf | |
| Intelligent Systems | Small | Big Loser, but Hard to be Certain: Erratic results, difficult to interpret because of investing activity | Invests in information technology and industrial companies | n/a | IntelligentSystemsCashFlowAnalysisv8.pdf | |
| Intergraph | Medium | Big Loser, Being Turned Around, Dramatic Improvement: Big losses until 2002, strong profits on much lower revenues since 2002, market value up significantly with profits | Graphics software and systems for engineering, et. al. applications | IntergraphCashFlowAnalysisv8.pdf | ||
| Jack Henry | Medium | Biggest Win: Profitable for nine straight years, avg 22% per year! Spectacular market value on very low invested capital, debt paid down | Software and services for the financial services industry | Estimate 15 to 20% | JackHenryCashFlowAnalysisv8.pdf | "A little bit of software sells a lot of services" |
| JDA Software | Medium | Modest Win: Profits erratic, but positive, market value volatile, return modest on large invested capital | Software for retailer trade funds management, other retailer supply chain areas | n/a | JDASoftwareCashFlowAnalysisv8.pdf | |
| Acxiom Software | Large | Big Win: Steady profits, avg 11%, spectacular return on low invested capital because debt has been paid down |
Data Services to Financial Institutions (Not sure if sell software) |
n/a | AcxiomCashFlowAnalysisv8.pdf | |
| American Software | Small | Big Loser: Medium size, erratic profits, mostly losses, erratic and low market value from large invested capital |
General accounting and
manufacturing software? *** Need more description |
n/a | AmericanSoftwareCashFlowAnalysisv8.pdf | |
| Lawson | Medium | Moderate Win: Minimal profits, good market value on moderate invested capital | General accounting software for services, healthcare, retail, public sector and telecom |
n/a | LawsonSoftwareCashFlowAnalysisv8.pdf | |
| Logility | Small | Big Loser: Smaller, moderate losses, did not recover market value after tech bubble burst, poor market value on large invested capital | Supply chain software for managing procurements and vendors | n/a | LogilityCashFlowAnalysisv8.pdf | |
| Manatron | Small | Big Win: Early losses brought to strong profits, great market value on low invested capital due to repayment of debt | Software and services for local government auditors, treasures, assessors, etc. | n/a | ManatronCashFlowAnalysisv8.pdf | |
| Manhattan Associates | Medium | Big Win: Very strong profits, avg 17%, spectacular market value on low invested capital, held value through tech bubble burst | Software for warehouse, transportation, trading partners, distribution, logistics | n/a | ManhattanAssociatesCashFlowAnalysisv8.pdf | |
| MapInfo | Small | Moderate Loser: Profits modest, avg 6%, low market value considering very large invested capital | Software and databases for geographic map applications for business intelligence and forecasting | n/a | MapInfoCashFlowAnalysisv8.pdf | |
| Micros | Medium | Big Win: Strong profits, avg 12%, spectacular market value on very low invested capital | Point of sale systems and terminals for hospitality industry | n/a | MICROSSystemsCashFlowAnalysisv8.pdf | |
| MRO Software | Medium | Jury Is Out: Profits good, but erratic, avg 9%, market value fair on very heavy invested capital | Asset management software for computers and other assets | n/a | MROSoftwareCashFlowAnalysisv8.pdf | |
| Net Smart | Small | Moderate Win: Big initial losses, now solid profits, fair market value on large invested capital | Practice management software for specialty medical care facilities such as mental health facilities, including billing and patient tracking | n/a | NetSmartTechCashFlowAnalysisv8.pdf | |
| PAR Technology | Small | Loser: Erratic profits and very low market value on very large invested capital | Point of sale systems for fast food restaurants, services to government | n/a | PARTechnologyCashFlowAnalysisv8.pdf | |
| Pega Systems | Medium | Jury is Out: Profits erratic but sometimes large, good recently, modest market value on very heavy invested capital | Process management software for financial services, insurance, health care | n/a | PegasystemsCashFlowAnalysisv8.pdf | |
| Private Business | Small | Big Win: Moderate but consistent profits, avg 6%, spectacular market value on invested capital due to dividends paid out | Software for accounts receivable factoring by banks | n/a | PrivateBusinessCashFlowAnalysisv8.pdf | |
| Progress Software | Medium | Big Win: Very strong profits, avg 13%, spectacular market value on low invested capital due to repayment of debt | General software development tools | n/a | ProgressSoftwareCashFlowAnalysisv8.pdf | |
| Reynolds & Reynolds | Large | Big Win: Outstanding profits, avg 15%, spectacular market value on very low invested capital due to debt pay down and stock repurchase | Software for automotive retailers | n/a | ReynoldsReynoldsCashFlowAnalysisv8.pdf | |
| United Systems Technologies | Small | A Win After Early Losses: Profitable last 5 years, avg 14%, recovered from early losses to produce a fair return on low invested capital | Billing, records, license software for county and local governments | n/a | UnitedSystemsTechCashFlowAnalysisv8.pdf | |
| Tyler Technologies | Small | Big Win: Steady revenue and profits in last 4 years, avg 12%, great recovery of market value after bubble burst, great return for shareholders on large amount of invested capital, due to profits and paying off debt | Diverse portfolio of technology companies | n/a | TylerTechCashFlowAnalysisv8.pdf | |
| SunGuard Data | Large | Big Win: Very strong, consistent profits, avg 20%, spectacular recovery of market value after bubble burst, spectacular return on very low invested capital | Investment support systems for transaction processing, asset mgmt, securites, commodities trading | n/a | SunGardDataCashFlowAnalysisv8.pdf | |
| SSC Technology | Small | Big Win: Avg 12% profits, some losses, profitable last 5 years, very strong market value based on moderate invested capital | Software for financial portfolios, loans, real estate, equity, back-office processing, securities trading | n/a | SSCTechCashFlowAnalysisv8.pdf | |
| Seibel Systems | Large | Big Win (even though nowhere near its market value during tech bubble) Strong profits, avg 12%, wildly over valued during tech bubble, very strong return on low invested capital | Customer relationship / customer service software for large companies | n/a | SeibelSystemsCashFlowAnalysisv8.pdf |