Applications Software Vendors Benchmark - The Strong Get Stronger and the Weak Get Weaker

This report is a comprehensive look at 75 publicly held applications software companies that range in size from micro-cap firms to the leading large capitalization software companies such as Microsoft, Oracle and SAP. Using the MGI scores the study highlights key trends in financial performance of the sector – and whether the overall sector is strengthening or weakening, and which companies are improving or deteriorating. As the title of the report states generally the poor economic backdrop accentuated the already sharp differences between the winners and losers. The report also highlights the exceptions to the trend, as well as discussing the outlook for the sector overall.

Excerpt -- The overall trend for the application software vendor (ASV) sector is negative and in our view is indicative of continued economic headwinds. Still, the companies that performed well in the last ASV benchmark have again scored high and in actually have improved their average efficiency. A complete listing of all benchmark scores is included at the end of the report in Table 2. Table 1 below provides an extract of MGI-X scores for the companies with the Top 10 and Bottom 10 MGI-X scores.  In the July 2008 benchmark, three companies led with the highest MGI Index (MGI-X) scores:  #1: Quality Systems, Inc. (QSII, MGI-X: 2,809). QSII was also the highest scoring in our first benchmark in October of  2007.  #2: CAM Commerce (CADA, MGI-X: 2,480). CAM Commerce previous score was also in the top quintile. The company was recently acquired by Great Hill Partners, a private equity firm.  #3: Oracle Corporation (ORCL, MGI-X: 2,070). Oracle was the second highest scoring company in our earlier benchmark, and continues to demonstrate high efficiency. Companies with the lowest MGI-X scores include: #75: Imageware Systems (IWSY, MGI-X: 202)  #74: Support Soft (SPRT, MGI-X: 278) #73: Callidus Software (CALD, MGI-X: 361)

24 Pages. Companies and sectors mentioned - QSII, CADA, ORCL, MSFT, MCRS, EBIX, DOX, BBBB, VOCS, ADBE, LGTY, ATEA, KNXA, BLKB, MGIC, CRM, CNQR, SAP, HSTM, AMSWA, JDAS, MEDW, EPIC, SXCI, RADS, MRGE, TZIX, CERN, SKIL, DSGX, SONE, MANH, SCIL, RLRN, LWSN, ECLP, CHRD, LPSN, ITWO, NUAN, TLEO, FNDT, ININ, QADI, STRM, ADVS, EPAY, TTPA, KNTA, PEGA, TITR, ULTI, RNOW, SABA, CKSW, UNCA, SUMT, ACCL, VTAL, SLRY, ASUR, QD, RTLX, ARTG, IMNY, KANA.OB, AMCS, ARBA, WSTM, XATA, DMAN, SLTC, CALD, SPRT, IW, applications software, ERP, CRM, supply chain, health care IT, retail software, financial services applications.