Professional Documents
Culture Documents
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
10.3
9.7
10.0
(US$m)
(US$m)
200.0 8.4
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
4.9
100.0
4.0
50.0
2.0
0.0 0.0
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
August closes at $200.6 million on 24 transactions: Total capital raised in August was $200.6 million through 24
transactions, averaging $8.4 million per transaction. In August, online gaming company Turbine secured the largest
financing transaction ($50 million). Friends Reunited was the largest acquisition in the month – selling for $42 million.
Weak price performance: Most of the companies in our universe had negative stock price performances over the
past week (for stocks with prices greater than $1) (Figure 12), with 32 companies showing negative returns on the
week. Frogster (FRG-XTRA) led the group with a 13.4% return, while Gravity Co. (GRVY-NASDAQGM) had the worst
return, dropping 31.0% in the week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Page 2
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
August closes at $200.6 million: Total capital raised in August was $200.6 million through 24 transactions, averaging
$8.4 million per transaction In August, online gaming company Turbine secured the largest financing transaction ($50
million). Friends Reunited was the largest acquisition in the month – selling for $42 million. July closed with $190.2 million
in financing on 34 transactions ($5.6 million average). The averages for the months of May (excluding the Facebook
transaction) and June were $6.6 million and $4.9 million, respectively.
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
10.3
9.7
10.0
(US$m)
(US$m)
200.0 8.4
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
4.9
100.0
4.0
50.0
2.0
0.0 0.0
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
People Media
Super Rewards
Turbine
Friends Reunited
Yapta
iSocket
OneTXT
iLoop Mobile
my6sense
Tremor Media
million round. For additional details on financings, see Figures 29 and 30 (at end of note).
I Love Rewards
Comunitae
Cliqset
Lat49
Aloqa
ChessCube
Tributes.com
CoTweet
AdWhirl
LiquidPlanner
Cellufun
Picaboo
Clikthrough
TodaCell
Glubble
Cognitive Match
MashLogic
BookFresh
Linksify
People Capital
iSyndica
Masher Media
Gigpark
Jaxtr
Jul-09
Jun-09
Aug-09
Page 4
was acquired by ITV for $42 million. On the capital raise front, Turbine had the largest raise in August, securing a $50
Turbine raises $50 million and Friends Reunited is acquired for $42 million: On the acquisition front, Friends Reunited
Page 5
Advertising remains the most active sector in dollars raised and number of transactions: Following recent trends,
Advertising companies (as a sector) had the most activity in dollars raised ($135.4 million) and number of transactions
(15) (Figure 4). Social Networks was the next most active sector with $105.7 million raised and 14 transactions.
160.0
140.0
120.0
100.0
(US$m)
80.0
135.4
60.0
105.7
93.2
40.0 80.0
69.9
64.0 63.5
20.0 34.6
24.3 24.0 22.3 19.3 19.1
13.0 12.5 12.0 12.0 10.7 7.3 5.0 4.1 3.2 3.0
0.0 1.0 1.0 0.5 0.5 0.0
Comment/Reputation
Mobile Payment
Communities
Gaming
Online Dating
Online Calendar
Mobile
Enterprise
Media
Microblog
Online Lending
Collaboration
Online Learning
Publishing
Music
Infrastructure
Blog
Search
Classified
Mobile Ad
SMS/Voice
Social Networks
Virtual Goods
Advertising
Virtual World
Video
Crowdsourced
Analytics
Vertical
Content
# companies
15 14 8 1 5 10 5 6 5 2 7 3 4 1 1 2 2 2 1 1 1 1 2 1 1 1 1 0
Average round size flattens: On a trailing 12-month basis, total financing dollars increased as of August 2009, with
average round sizes flattening (Figure 5).
LTM Financing
4,500.0 18.0
4,000.0 16.0
3,500.0 14.0
3,000.0 12.0
2,500.0 10.0
(US$m)
(US$m)
`
2,000.0 8.0
1,500.0 6.0
1,000.0 4.0
500.0 2.0
0.0 0.0
May-05
May-06
May-07
May-08
May-09
Mar-05
Nov-05
Mar-06
Nov-06
Mar-07
Nov-07
Mar-08
Nov-08
Mar-09
Jan-05
Jul-05
Sep-05
Jan-06
Jul-06
Sep-06
Jan-07
Jul-07
Sep-07
Jan-08
Jul-08
Sep-08
Jan-09
Jul-09
Total Average
Cumulative total almost $8.0 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $7.8 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the
second quarter of 2009 passed that raised in the first quarter of 2009 – the second straight quarter of increased
investments. However, for the period ended Q2/CY09, total capital raised was below the Q2/CY08 level. W ith two months
finished in Q3, the total raised is $387.7 million.
1,600.0 9,000.0
1,404.4
1,400.0 8,000.0
7,000.0
1,200.0
1,007.6 6,000.0
1,000.0
888.2
5,000.0
(US$m)
(US$m)
800.0
705.5
4,000.0
595.2 613.8
600.0
3,000.0
422.2
372.3 387.7
400.0
2,000.0
218.0
163.4 177.3197.6
200.0 143.9151.1 1,000.0
88.3 73.5
59.4
41.5 24.7 33.5 52.2 43.3
0.0 0.0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2004 2005 2006 2007 2008 2009
U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 78.7% of financings/M&A in
the last twelve months involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S.
leads with 74.8% of deals, while Canada and the UK were a distant second with a 4.3% share of the total number of
financings (Figure 8).
China ROW
2.3% 10.2%
Germany
2.0%
ROW
2.9%
USA
78.7%
USA
74.8%
Early-stage funding continues to dominate (by count): Almost half of financings in the last 12 months are for early-
stage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 26.6% of the total, with later-stage (Series D, E
and PIPE) deals accounting for just 7.9%.
Series C
14.9%
Series B
26.6%
Series D
4.4%
Series E
0.9%
Series A
28.5%
Angel/Seed
20.3%
Debt financing
PIPE 1.9%
2.5%
Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C, and D rounds
has all been lower than the overall average (Figure 10). Angel rounds continue to be in the $3 million range.
40.0
35.0 33.7
30.0
27.4
26.3
25.0
22.7
(US$m)
20.0
15.0
12.5
10.0
7.5 7.7 8.0
6.3 6.5
5.3
5.0
3.4 3.3
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 Index outperforms: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index
from mid-2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 11).
120
100
80
60
40
20
0
9/2/2008
9/16/2008
9/30/2008
10/14/2008
10/28/2008
11/11/2008
11/25/2008
12/9/2008
12/23/2008
1/6/2009
1/20/2009
2/3/2009
2/17/2009
3/3/2009
3/17/2009
3/31/2009
4/14/2009
4/28/2009
5/12/2009
5/26/2009
6/9/2009
6/23/2009
7/7/2009
7/21/2009
8/4/2009
8/18/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)
Frogster leads; Gravity falls: Most of the companies in our universe had negative stock price performances over the
past week (for stocks with prices greater than $1) (Figure 12), with 32 companies showing negative returns on the week.
Frogster (FRG-XTRA) led the group with a 13.4% return, while Gravity Co. (GRVY-NASDAQGM) had the worst return,
dropping 31.0% in the week.
IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp La unch of P roduction Compa ny, IAC /I nterA ctiveC orp. a nnounc ed the launc h of Notiona l, a video content c ompa ny born out of its enterta inment property CollegeH umor. com.
Notiona l; Appoints R i ck y V a n V een to H ea d N otiona l CollegeH umor's origina l video s have been viewed over 300 million times a nd its viewers wa tch 100 y ea rs worth of video content eac h month.
B uilding on this succ ess ful foundation the new production company will crea te programming of a ll genres for a ll demogra phic s , to be
distributed ac ross multiple media platforms, inc luding television. T he new endeavor wa s conceiv ed a s a n ex tens ion of CollegeH umor. co m's
industry-leading c ontent s ensi bility and production capabilities . B y building o n top of that ba s e, Notional hopes to bring the DN A of an
internet compa ny to an in terna tiona l producti on compa ny . B ut unlik e CollegeH umor's y oung ma le-focus ed a udie nce, N otional's content will
a ppeal to a much broa der bas e.
Notiona l will be headed by R ic ky V an V een, who will transition from hi s current role as E ditor-in-Chief of C ollegeH umor.
S ohu. c om Inc . (Nas daqG S : S OHU) S ohu.com I nc. P rovides R evenue G uida nc e for the Third S ohu.com I nc. provided revenue guidance for the third quarter of 2009. For the qua rter, the co mpa ny ex pects tota l revenues to be between
Quarter of 2009 $133.5 mi llion to $137. 5 million, with advertis ing rev enues of $49. 5 million to $51.5 million. B rand a dvertising revenues of $48 to $50 million.
T his implies a 10% to 15% qu arter-on-qua rter growth or a negative 3% to pos itive 1% y ear-on-yea r growth. T his will bring bra nd advertising
growth for the firs t qua rter-for the firs t three qua rters of 2009 to between 5% to 7% yea r-on-y ear. O nline games revenues of $67 mil lion to
$69 million. B efore deduc ting the s ha re of non-G AAP net income pertaining to the non-c ontrolling interest in C ha ngyou, the c ompa ny
estimates pro forma non-G AAP net income to be between $50 million to $52 mill ion, a s compared to $49 million for the s econd quarter as
mentioned a bove. After deduc ting the s ha re of non-G AAP net income pertaining to the non-controlling interes t in Changy ou, S ohu es tima tes
non-G AAP net income attributable to S ohu for the third qua rter of 2009 to be between $36 million to $38 million a nd non-G AAP fully diluted
earnings per s hare for the third qua rter of 2009 to be between $0. 92 to $0. 97. As s uming no new grants of s hare-based a wa rds , S ohu estima te
IAC /InterAc tiveC orp. (Nas daqG S : IAC I) B en S ilverma n to Join IAC /I nterActiveC orp. to H ead I ts B en S ilv erma n res igned to his job a s co-c ha irman of N B C E ntertainment a nd Universa l Movie S tudios to hea d a new v enture with B a rry
New V enture Diller's I AC /InterActiveCorp. focusing on produc ing and dis tributing multimedia content. I AC a nnounc ed that it is forming a new production
company led by S ilverma n tha t will look to bring a dv ertis ers into further into the dev elopment proces s on new media produc ts .
Neteas e. com Inc. (Nas daqG S : NT E S ) Netea se. c om I nc. R eports Online G a ming R ev enue Netea se. com Inc. reported online gaming rev enue res ults for the first quarter of 2009. For the quarter, the compa ny reported rev enue of C N Y
R es ults for the F irst Quarter of 2009 710 million, with a 12. 9% mark et s ha re.
DADA S pA (C M: DA) DAD A S pA R eports E a rnings R es ults for the F irst S ix DAD A S pA reported ea rnings res ults for the first s ix months of 2009. For the period, the company notched up rev enues of €76. 3 million,
Months of 2009 down from the €81.3 mill ion of the s a me period la s t year and net profits of €1. 1 million, down (from €8 million).
S handa Interactive E ntertainment L td. S handa I nteractive E ntertainment L td. R eports Online S handa I nterac tive E ntertainment L td. reports online gaming rev enue res ults for the first quarter of 2009. For the quarter, the company
(Nas daqG S : S NDA) G a ming R evenue R es ults for the F irs t Q ua rter of 2009 reported revenue of CN Y 1.08 billion, with a 19. 6% ma rk et sh are.
T enc en t Ho ldings Ltd. (S E H K: 700) T enc ent H oldings Ltd. R eports C hines e Online G aming T enc ent Holdin gs Ltd. reported Chines e online ga ming revenue res ults for the first qua rter of 2009. F or the qua rter, the company reported
R evenue R esul ts for the Firs t Quarter of 2009 revenue of C N Y 910 million, with a 13% increas e quarter on qua rter.
T he9 L imited (Nas daqG S :NC TY) T he9 Limited R eports Online G a ming R evenue R es ults T he9 Limi ted reported online gaming revenue results for the firs t qua rter of 2009. T he company reported tha t its firs t-qua rter rev enue
for th e F irst Quarter of 2009 decreas ed by 6% quarter on qua rter.
C hang yo u. c om L imited Changy ou.com Limited R eports Onl ine G a ming R evenu e Changy ou.com Limited reported online ga ming revenue res ults for the firs t qua rter of 2009. For the qua rter, the compa ny reported revenue of
(Nas daqG S : C YOU) R es ults for the F irst Quarter of 2009 CN Y 420 million.
G ian t Interactive G ro up, Inc . G ia nt I nterac tiv e G roup, Inc . (NY S E : G A) agreed to G ia nt Interac tiv e G roup, I nc . (NY S E : G A) agreed to ac quire 51% s tak e in X uela ng S oftware on J uly 27, 2009.
(NYS E : G A); Xuelang S oftw are a cquire 51% stake in X uela ng S oftwa re.
S ohu. c om Inc . (Nas daqG S : S OHU) S ohu.com I nc. R eports Una udited Cons olida ted F inancia l S ohu.com I nc. repo rted una udited Cons olida ted fina ncial res ults for the second qua rter a nd s ix mo nths ended June 30, 2009. F or the
R es ults for the S econd Q ua rter a nd S ix Months E nded quarter, the c ompany reported operating profit of $48. 5 million, inc ome before inc ome ta x expens e of $49. 9 million, income from c ontinuing
J une 30, 2009 opera tions of $41.9 mill ion, net inc ome of $42. 3 million a nd net inc ome attributable to company of $33. 5 million or $0. 79 diluted per s ha re on
total rev enues of $127. 1 million against operating profit o f $39.9 million, income before income tax ex pense of $40. 8 million, inc ome from
continuing operations of $40. 2 million, net income of $40.2 million and net income a ttributa ble to compa ny of $40. 2 million or $1. 02 dil uted
per s ha re on to tal revenues of $10 2.0 millio n for the s a me period a y ear a go . Non-G AAP net inc ome attributable to company for the s econd
quarter of 2009 was $38. 7 million or $0. 90 per diluted s hare a ga ins t N on-G AAP net income a ttributable to compa ny for the second qua rter of
2009 wa s $42.3 million or $1.07 per diluted sha re for the s a me period a y ear ago. T he compa ny reported opera ting profit was $55.1 million
a gainst opera ting profit was $42.0 million for the same period a yea r ago.
C hang yo u. c om L imited Changy ou.com Limited R eports U naudited C onsolidated Changy ou.com Limited una udited c onsoli dated reported unaudited ea rnings res ults for the s econd quarter ended J une 30, 2009. T otal
(Nas daqG S : C YOU) E a rnings R esults for the S econd Q ua rter E nded J une 30, revenues for the sec ond quarter of 2009 increa sed 8% qua rter-over-qua rter and 39% y ea r-over-year to $66. 6 million. Opera ting profit for the
2009 ; P rovides E arnings G uida nce for the T hird Quarter sec ond quarter of 2009 increa s ed 4% qua rter-over-qua rter and 42 % y ear-over-y ear to $39. 5 million. N on-G AAP opera ting profit for the
of 2009 sec ond quarter of 2009 increa s ed 17% quarter-ov er-quarter a nd 5 7% y ea r-over-y ea r to $45. 1 million. F or the sec ond qua rter of 2009, net
income increas ed 3% quarter-over-quarter a nd 9% y ea r-over-y ear to $ 34.5 millio n. Non-G AAP net income increa sed 17% quarter-ov er-
quarter and 24% ye ar-ov er-year to $40. 2 million. F ully diluted ea rnings per ADS were $0. 66, compared to $0.71 in the firs t quarter of 2009
a nd $0. 67 in the s econd quarter of 2008. N on-G AAP fully dilu ted earnings per A DS were $0.75, up from $0.72 in the firs t qua rter of 2009 and
$0.68 in the second quarter of 2008. Inc ome before inc ome ta x expens e was $40. 3 million against $27. 7 million a y ea r a go. Opera ting ca sh
flow for the qua rter wa s a net inflow of $33.7 mil lion.
Page 13
S pec trumDNA, Inc . (OTC BB :S PXA) New Y ork P ost and S pec trumDN A P artner to L aunc h S pectrumDN A I nc. has signed a contra ct with the N ew Y ork P os t to license its A ddictionary, a S aa S (softwa re-as-a-s ervice) user-generated
E xclusiv e New Y ork Addictionary dictiona ry tha t lets people c reate their own words and definitions . K nown for its eye-ca tching hea dlines , ground-brea king goss ip and pla y on
words , the New Y ork P ost rea ches nearly 5. 5 million online uni que us ers per month and is a natura l fit for the Addic tiona ry s oci a l media
a pplication. T he N ew Y ork Addic tiona ry will s erve as a n engine to inc reas e k ey metric s of us er engagement inc luding pa ge views , time spent
on s ite, frequency of vis its, viral and word-of-mouth distribution a nd premium a d a nd s ponsors hip inv entory. T he a pplic ation is s et to launc h
in Augus t and will pa ve the wa y for deriv ati ve products s uch a s greetin g c ards, ca lendars , games a nd book s featuring the top-ra ted words
created by the community a t ny post. com. T he N ew Y ork P os t Addictionary joins a network of s ocia l media c ommunities which inclu des
NB C 's 'T he O ffice' Addictiona ry, E ! E nterta i nment's Celebrity Addic tiona ry , C omedy C entra l's P olitica l Addic tiona ry , D ictionary. com's
Addictiona ry and FE AR net's H orror Addictionary.
DADA S pA (C M: DA) DAD A S pA R eports E a rnings R es ults for F irs t H a lf of DAD A S pA reported ea rnings before interes t, ta x, depreciation a nd a mortis a ti on (E B I T D A) fell to E UR 10.7 milli on from E U R 14.4 mi llion for
2009; R ea ffirms E arnings O utlook for F ull Y ear 2009 firs t half of 2009. T he earnings before interest a nd ta x (E B IT ) went down to E UR 4 million from E U R 10. 4 million. T he group's net fina nc ia l
debt stood a t E UR 33. 1 million a t end-J une 2009 agains t E UR 31. 4 million a t end-D ecember 2008 and E UR 35. 2 million at end-Ma rc h 2009.
F or the full y ea r 2009, the c ompany rea ffirmed its ea rnings outlook. F or the yea r, the company expec ts a rev enue of E UR 160 mil lion. In
cas e of cons olida tion of D a da E nterta i nment as of J anua ry 1, 2009, the revenue is expec ted to rea ch some E UR 175 mill ion.
C hang yo u. c om L imited Changy ou.com Limited to R elea s e D uke of Mount Deer in Changy ou.com Limited a nnounc ed that it expl a ins why it decided to postpone the release of D uke of Mount D eer (D MD ). P reviously , the
(Nas daqG S : C YOU) 2010 company pla nned to release DM D in the fourth quarter of 2009. However, beca us e of bitterer competition in the ma rket a nd the necess ity to
enrich the ga me's content, Changy ou.c om dec ided to ex tend its R &D to 35 months and releas e the game in the third quarter of 2010.
B esides , C ha ngyou. com will promote a s equel of B l ade O nline (B O ), a 2.5D online fi ghting ga me, in the third qua rter of 2009, a nd Immortal
F aith (I F ), a licensed 2D M MO R P G bas ed on a nc ient Chines e my ths and folk tales , in the fourth qua rter. A new expans ion pa ck of T ian L ong
B a B u (TL B B ) will als o be la unched in the fourth qua rter and the compa ny is preparing for a n open beta test of the game's E uropean version.
B urs t Media Corporation (AIM:B R S T); Cy berplex Inc. (T S X: C X ) made an offer to a cquire B urs t Cy berplex Inc. (TS X : C X ) made an offer to a cquire B urs t Med ia C orpora tion (AIM : B R S T ) for approxima tely £10 million in c ash on July 29,
C yberplex Inc . (TS X: C X) Media C orporation (AIM : B R S T ) for a pproximately £10 2009. T he per s ha re cons ideration is £0. 12 repres enting a total equity v alue of approx imately $16. 5 million. T he B oard of D irectors of B urs t
million. Media rejected the proposa l despite subs tantia l support from B urs t s hareholders. T he proposal ha d the support of a pprox ima tely 40% of
B urst's sha res , or approximately 56% excluding sha res h eld by ma na gement of B urs t.
IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. a nnounc es an E quity B uy ba ck T he B oa rd of Directors of IAC /I nterAc tiveC orp (N asdaqN M: I AC I) a uthoriz ed a s hare repurc ha se progra m on J uly 29, 2009. Under the
program, I AC will repurchase up to 20,000, 000 s hares of its outsta nding common s toc k . IAC ma y purchase s hares over an indefinite period
of time, depending on thos e fa ctors I AC management de ems relev ant a t a ny particula r time, i ncluding, without l imitation, mark et c onditions ,
sha re price, and future outlook . As of June 30, 2009, I AC had app rox imately $1. 9 billi on in cas h an d ma rketa ble sec urities , and $95.8 million
in long-term debt.
B eyond Commerc e, Inc . B eyond Commerce I nc. E le cts B oa rd of Directors B eyond Commerce Inc . a nnounc ed tha t Annua l S ha reholders M eeting wa s held on July 24, 2009. The meeting elected the members of the
(OT CB B: B Y OC) board of directors cons is ting of R obert J . M cN ulty , B arry F a lk, R onald L oveles s, M ich a el W ars insk e, and Murra y W illia ms.
IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. R eports U naudited C onsolidated IAC /I nterA ctiveC orp. reported unaudited c onsoli dated ea rnings resul ts for the sec ond quarter and s ix months ended J une 30, 2009. F or the
E a rnings R esults for the S econd Q ua rter a nd S ix M onths quarter, the c ompany reported earnings from c ontinuing opera tion s of $42,593, 000, or $0.29 per di luted sha re, net ea rnings of $40, 397,000,
E nded J une 30, 2009 net earnings attributable to I AC s ha reholders of $40, 813,000, or $0. 28 per diluted s ha re, ea rnings from continuing opera tions b efore income
tax es of $64,736, 000, opera ting inc ome of $3, 907, 000 on revenue of $340, 045,000 compared to los s from continuing opera tions of
$84,636, 000, or $0.60 per diluted s ha re, net los s of $422, 081, 000, net loss a ttributa ble to I AC s ha reholders of $421,597, 000, or $3.02 per
diluted sha re, loss from c ontinuing operations before income taxes of $106, 910,000, opera ting loss of $6,434, 000 on rev enue of
$354,164, 000 for the same period las t yea r. The company reported a djus ted net inc ome of $3, 270,000, or $0. 02 per s ha re compa red to
a djusted net income of $25,500, 000, or $0.17 per s hare for the same period las t y ear.
F or the six months, the compa ny reported ea rnings from continuing opera tions of $12, 711,000, or $0.09 per diluted share, net earnings of $11
S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly Inc . R ep orts U na udited C ons olidated E arnings S hutterfly I nc . reported una udited c onsolidated ea rnings results for the s econd quarter and s ix months ended J une 30, 2009. F or the quarter,
R es ults for the S econd Q ua rter a nd S ix Months E nded the compa ny reported net los s of $5, 655, 000 or $0.22 per bas ic and diluted s hare on net revenues of $38,858, 000 compared to net loss of
J une 30, 2009; P rov ides E a rnings G uidance for the Thi rd $4,017, 000 or $0. 16 per ba sic and diluted s hare on net revenues of $35, 447,000 for the s a me period a y ear ago. T he company reported los s
Q uarter and Full Y ear of 2009 from opera tions of $9, 408, 000 a nd loss before income ta x es of $9,152 ,000 compared to loss from operations of $7, 939,0 00 a nd loss be fore
income taxes of $7,284, 000 for the sa me period a yea r a go. Adjus ted E B I TD A wa s $0. 2 million, compa red to $0. 4 million in the second
quarter of 2008. O n a N on-G AAP basis , the compan y reported opera ting los s of $6,090, 000 a nd net los s of $3, 527,0 00 or $0.14 per diluted
sha re compa red to opera ting los s of $5, 394,000 a nd net loss of $2, 891, 000 or $0.12 per diluted share for the s ame period a y ea r a go. F ree
cas h flows was nega tive $2,735, 000 compared to free ca s h flows wa s negative $4,835, 000 for the s a me period a year a go. P urchases of
property a nd equipment were $1,826, 000 compared to purc ha s es of property a nd equipment of $3, 840,000 for the s ame period a y ear ago.
W izz ard S oftware Co rporation W izz ard M edia La unches S ec ond P hase of P odc ast W izza rd M edia announced the la unch of the much a nticipated s ec ond pha s e of its new podca st network monetiz ation strategy with the
(A ME X: WZE ) Monetization V ia Apps a pprova l of the Ha waii S urf S ess ion R eport App, the firs t W izz ard N etwork c ustomized P odca s t App currently for s a le through A pple's App
S tore. T he P odca s t App, developed by W iz zard Media , c an be c ustomized for a podca s t produc er in less tha n 30 minutes to inc lude bonus
ma teria l, s how extra s, interactive forms of communica tion between a udience a nd hos t, a s well a s other informa tion and entertainment.
W izza rd plans to offer its top 1, 000 podca st producers , bas ed on a udience s ize, a cus tomiz ed a pp; eventua lly opening this new produc t to
the thous a nds of podc as ts ac ross the W izz a rd N etwork. W iz zard will provide the P odc ast App a s a free tool to p odcas ters on the W iz za rd
Network a nd share in the revenue generated. All Apps submitted to the App S tore require App le approv al to be a vailabl e for s ale on a
worldwide ba s is a nd will generally rang e in price from $0.99 to $4. 99 ea ch.
Openwave S ys tems Inc . O penwa ve S y stems Inc. R eports U na udited C onsolida ted O penwa ve S y stems Inc. reported una udited cons olida ted earnings res ults for the fourth qua rter and y ear ended J une 30, 2009. F or the
(Nas daqG S : OPW V) E a rnings R esults for the F ourth Q uarter and Y ear E nded quarter, the c ompany reported net los s from continuing opera tions and net los s of $3, 444,000 or $0. 04 per bas ic and diluted sha re on tota l
J une 30, 2009 revenues of $47, 937, 000 compa re d to net los s from continuing opera ti ons of $18,051, 000 or $0. 21 per ba s ic a nd diluted share and net
income of $2,157, 000 or $0. 03 per ba sic a nd diluted s ha re on total revenues of $53,487, 000 for the same period a yea r ago. T he c ompany
reported operating los s from continuing operations of $2, 365, 000 a nd pre-tax los s from continuing operations of $2,537, 000 c ompared to
opera ting loss from continuing operations of $15, 881,000 a nd pre-tax los s from continuing opera tions of $16,532, 000 for the same perio d a
yea r ago. O n a Non -G AAP ba s is , the compa ny reported net loss of $278,000 compared to net los s of $1,90 4,000 for the s a me period a y ea r
a go. Net c as h provided by opera ting activities was $4,477, 000 a nd purc ha ses of property a nd equipment, net of $1, 161, 000 c ompared to net
cas h us ed in operating activities wa s $14, 390, 000 a nd purcha s es of property a nd equipment, net of $1, 296, 000 for the s ame period a y ea r a go.
VALUATION
MMOG companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 14). Fifty-seven of the 91 companies have market caps under US$100 million, with 26 under US$10
million. Online gaming companies dominate the top of the list, led by Tencent.
Market C ap (US D m)
Tencent Holdings Ltd. 26993.3
Neteas e. com Inc. 5434.6
S handa Interactive Entertainment Ltd. 3267.6
Modern Times G roup Mtg A B 2683.9
IA C/InterA ctiveCorp. 2452.1
S ohu.com Inc. 2339.1
Changy ou.com Limited 2076.8
G ree, Inc. 1993.9
Open Tex t Corp. 1974.8
Perfect World Co., Ltd. 1876.3
G iant Interactive G roup, Inc. 1709.6
K ings of t Co. Ltd. 1177.6
Chines e Gamer International 1038.2
Mix i, Inc. 994.1
V alueClick Inc. 893.3
United Online Inc. 586.0
NEOW IZ Games Corporation 539.7
NetDragon W ebS oft, Inc. 395.5
S hutterf ly , Inc. 368.1
S K Communications Co., Ltd. 312.8
G ungHo Online Entertainment, Inc. 290.6
G igaMedia Ltd. 257.3
CDC Corp. 249.1
G amania Digital Entertainment Co., 232.7
Openw ave S y s tems Inc. 230.8
XING A G 223.0
The9 Limited 188.2
DA DA S pA 150.4
OA O R B C Information S y s tems 145.7
A ctoz S of t Co., Ltd. 131.2
NeuLion Incorporated 115.2
G ameOn Co Ltd. 107.7
Y edangOnline Corp. 107.1
My riad G roup A G 86.8
Cy berplex Inc. 82.4
K A B Dis tribution Inc. 81.5
Tree.Com, Inc. 76.6
TheS treet.com, Inc. 76.5
HanbitS oft, Inc. 69.9
Frogs ter Interactive Pictures A G 68.8
Fluid Mus ic Canada, Inc. 66.8
G eoS entric Oy j 64.4
PNI Digital Media Inc. 56.0
Eolith Co. Ltd. 54.4
S park Netw orks , Inc. 48.8
Gravity Co., Ltd 45.9
DigitalTow n, Inc. 41.3
Ngi G roup Inc. 40.3
DXN Holdings B hd 35.8
Webz en Inc. 33.7
NeXplore Corporation 31.2
A Q Intera ctive, Inc. 29.3
Northgate Technologies Limited 28.8
S ocialw is e, Inc. 27.4
W iz z ard S oftw are Corporation 24.2
Dolphin Digital Media, Inc. 23.1
LookS mart, Ltd. 20.4
B roadW ebA s ia Inc. 19.5
Y nk K orea Inc. 17.8
Quepas a Corp. 17.8
A cceleriz e New Media, Inc. 15.8
J umbuck Entertainment Pty Ltd. 15.2
UOMO Media, Inc 13.7
Lingo Media Corporation 12.5
S pectrumDNA , Inc. 10.7
IA S Energy , Inc. 9.1
Ex tens ions , Inc. 8.9
B ey ond Commerce, Inc. 7.9
Worlds .com Inc. 6.3
MOK O.mobi Limited 5.5
S NA P Interac tive, Inc. 5.4
CornerWorld Corporation 5.3
V OIS , Inc. 5.0
B right Things plc 4.6
Magnitude Information S y s tems Inc. 4.5
DigitalPos t Interac tive, Inc. 3.9
Wooz y Fly , Inc. 2.6
B etaw ave Corporation 2.3
is eemedia Inc. 2.3
Wy nds torm Corporation 1.8
LiveWorld Inc. 1.5
B igs tring Corp. 1.4
Unis erve Communic ations Corp. 1.0
A s s ociated Media Holdings Inc. 0.6
CLICK ER Inc. 0.4
The Parent Company 0.3
China G atew ay Corporation 0.3
Total S port Online A S 0.1
S NM G lobal Holdings 0.0
Dibz International, Inc. 0.0
S ocial Media V enures , Inc. 0.0
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (up from 5.0x
last week) (Figure 15). However, this is skewed by two companies with multiples greater than 30x trailing revenue:
Bigstring Corporation (BSGC:OTCBB) at 39.4x and Dolphin Digital (OTCBB: DPDM) at 41.4x. The median is only 1.4x.
Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x
45. 0
41.4
39.4
40. 0
35. 0
30. 0
25. 0
21.2
20.4
20. 0 17.3
16.417.0
15.6
15. 0 12.5
11.4 12.112.1
10. 0 8.6
7.5
A v erage, 5. 3 5.9 6.7
4.54.6 4.7 4.7 5.1
5. 0 3.5 3.8 3.8 4.0
2.1 2.2 2.4 2.5 2.6 2.7 2.9 3.0
0.6 0.7 0.7 0.7 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.2 1.3 1.4 1.5 1.5 1.7 1.7
0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.5 0.5 0.6
0. 0
MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.
DXN Holdings B hd
C DC C orp.
G eoS entric O y j
S N M G loba l Holdings
O pen T ex t C orp.
AQ Intera ctive, Inc .
C y berplex Inc .
is eemedia Inc .
S pa rk N etwork s , Inc .
G igaMedia Ltd.
S ohu.com Inc .
E olith C o. Ltd.
Mix i, Inc .
G ree, Inc .
As s ociated Media Holdings Inc .
Y nk K orea Inc .
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (19), trading at an average multiple of 12.7x (up from 11.0x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 5.9x revenue (up from 5.1x last week) (Figure 17).
Ten of the companies are Canadian (average 5.1x revenue).
10.99.4 10.0
(x)
8.0
8.0 7.4 6.6
6.0 5.7 4.9 4.63.9
3.6 2.8 2.4 6.0 5.9 5.1
4.0 2.2 2.0 2.0 1.9 1.7 4.6
4.0 4.4
2.0 0.8 0.7
2.4 2.0 2.0 1.7
0.0 0.4 0.3 0.0 2.0 0.8 0.7
OTCNO
OTCPK
OTCBB
GTSM
NasdaqGM
SEHK
TSE
OSE
KOSE
NasdaqGS
RTS
OM
CM
XTRA
TSX
AMEX
KLSE
BSE
AIM
TSXV
SWX
0.0
ASX
Germany
United
Finland
China
United
Canada
Japan
Hong Kong
Malaysia
India
Russia
Italy
South
Taiwan
Australia
Norway
Switzerland
Sweden
# Companies 1 19 1 2 3 2 4 5 1 4 11 2 1 1 2 6 14 1 1 1 1 5 1
# Companies 1 1 2 10 3 39 10 1 6 1 2 8 1 1 1 1 1 1
TEV/EBITDA (LTM) averages 12.4x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 12.4x LTM EBITDA (up from 11.9x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 43.4x multiple
(Figure 18). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 9.8x (vs. 9.4x last week).
T E V/L T M E B IT DA (x)
50. 0
45. 0 43. 4
42. 0
40. 0
35. 0
30. 9
30. 0
26. 0
25. 0 22. 9 23. 6
20. 8
19. 4 19. 7
20. 0
C DC C orp.
O pen T ex t C orp.
S park Network s , Inc .
C yberplex Inc .
S ohu. c om Inc .
Mix i, Inc .
G ree, Inc .
Y nk K orea Inc.
TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (19). On a geographic basis, the United States has the most companies
(39), trading at an average of 9.2x EBITDA (Figure 20). Ten of the companies are Canadian (average 13.3x EBITDA).
20.0 19.7
23.6 20.0
19.7 18.4
15.0 18.4
15.0 15.6
(x)
14.1
(x)
13.3 13.1
10.0 11.0 10.3 10.1 10.1 11.0 10.3
6.5 6.4 10.0 9.7 9.2
5.0 6.2 4.6 4.4 4.0
1.3 0.2 6.4
5.0 4.6
0.0 0.2
OTCBB
GTSM
NasdaqGM
1.3
SEHK
KOSE
TSE
NasdaqGS
OSE
RTS
OM
CM
XTRA
TSX
KLSE
AMEX
TSXV
ASX
0.0 0.0
Germany
China
Canada
Japan
Hong Kong
United
Malaysia
Russia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 3 4 2 6 5 1 2 14 1 4 1 5 1 2 19 2 1
# Companies 3 8 10 10 6 1 2 1 39 1 1 2 1 1
P/E (LTM) averages 18.1x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 18.1x LTM EPS, led by Tencent Holdings Ltd.’s (700-SEHK) 58.4x multiple (Figure 21). Eleven of the companies have
P/E multiples under 10x. The median is just 13.2x.
P /E L T M (x)
70.0 65.2
60.0 55.2
50.1
50.0
43.9
40.2
40.0
32.9
29.4
30.0
23.4 23.5 24.0
19.5 20.3
20.0 A verage, 18.1
16.1
13.0 13.2 13.3 13.8 14.3
11.2 11.6 11.9
9.6 10.2
10.0 7.5
4.5 6.0
2.0 2.1 2.6 2.7 3.1
0.0
NE O W IZ G ames C orporation
J umbuck E ntertainment P ty Ltd.
G ameO n C o Ltd.
O pen T ex t C orp.
C y berplex Inc.
G igaMedia Ltd.
S ohu.com Inc.
G ree, Inc.
Mix i, Inc.
P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (19), trading at an average multiple of 16.8x. On a geographic basis, the United States has
the most companies (39), trading at an average of 14.6x earnings (Figure 23). Ten of the companies are Canadian
(average 13.5x EPS).
30.0 23.4
18.4 16.8 20.0 14.6
20.0 13.5
13.3 13.2 10.4 15.0 13.2 12.3
7.5 6.0 4.5
10.0 10.0 6.0
2.0 4.5
0.0 0.0 5.0 0.0
OTCBB
GTSM
NasdaqGM
OSE
TSE
SEHK
KOSE
NasdaqGS
OM
XTRA
AMEX
TSX
KLSE
NYSE
ASX
0.0 0.0
Germany
Japan
Canada
United
China
Malaysia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 1 5 3 2 2 6 19 2 1 14 4 1 2 1 5
# Companies 6 3 2 10 39 10 1 8 1 2 1 1
UPCOMING EVENTS
E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
S handa Interactive E ntertainment L td. (Nas daqG S : S NDA) T hurs day, S eptember 03, 2009 9: 00 P M (E DT ) Q 2 2009 1-866-713-8310
A ccelerize New Media, Inc. US D AC L Z OT C B B 15.8 0.57 1. 8% 26.7% 14.0% 62.9% -9.5% -13.6%
A ctoz S oft C o. , L td. KR W A052790 K OS E 131.2 18, 950 -1.0% -20.0% -37.3% 89.5% 103. 8% -47.4%
A Q Interactive, Inc. JPY 3838 TS E 29.3 50, 000 -0.8% -17.2% -34.6% 62.3% -60. 0% -63.6%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30. 0% -72.0%
B igs tring C orp. US D BSGC OT C B B 1.4 0.02 42.0% -11.1% 26.3% 41.2% -60. 0% -65.7%
B eta wave C orpora tion US D B W AV OT C B B 2.3 0.08 0. 0% 14.3% 11.0% -55.6% -76. 5% -76.5%
B eyond C ommerce, Inc. US D B Y OC OT C B B 7.9 0.17 -5.6% -55.4% -82.1% -69.1% -93. 9% -94.2%
B right T hings plc GB P AIM:B G T A IM 4.6 0.01 3. 6% -21.6% -12.1% 28.9% -21. 6% -41.3%
B roadW ebA s ia Inc. US D BWBA OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84. 7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 249.1 2.35 -10.6% -23.0% 36.6% 193.8% -5.6% -40.1%
C ha ngyou.com Limited US D C Y OU Nas da qG S 2, 076.8 37.76 -0.8% 2.7% 0.3% NM NM -21.9%
C hina G a tewa y C orporation US D CGWY OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50. 0% -57.1%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 038.2 406.00 3. 2% -6.2% 15.8% 208.7% 483. 7% -21.8%
C LIC K E R Inc. US D CLK Z OT C B B 0.4 0.00 -8.0% -33.3% 21.1% -84.7% -99. 2% -99.3%
C ornerW orld C orpora tion US D CW R L OT C B B 5.3 0.06 -8.3% 10.0% -38.9% -63.3% -93. 0% -93.0%
C yberplex Inc. C AD T S X: C X TS X 82.4 1.39 -13.1% -17.8% -13.7% 297.1% 127. 9% -30.2%
DADA S pA E UR C M:DA CM 150.4 6.47 1. 4% 5.5% 11.2% 32.0% -41. 7% -46.1%
DXN Holdings B hd MY R DXN K LS E 35.8 0.55 3. 8% 34.1% 39.2% 77.4% 41.0% -3.5%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.9 0.05 -16.7% -7.4% 127.3% 733.3% -9.1% -49.5%
DigitalT own, Inc. US D DG T W OT C B B 41.3 1.51 7. 9% 7.9% -24.5% -39.6% -62. 3% -66.4%
Dolphin Digital Media, Inc. US D DP DM OT C B B 23.1 0.43 10.3% -14.0% -21.8% -15.7% -44. 9% -61.9%
E olith C o. L td. KR W A041060 K OS E 54.4 935.00 8. 7% 15.4% 26.4% 74.8% 40.6% -19.4%
E xtens ions , Inc. US D E XT I OT C P K 8.9 0.20 150.0% 150.0% 33.3% 0. 0% 100. 0% -80.2%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 66.8 1.40 6. 1% 55.6% 47.4% 225.6% -11. 9% -22.2%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 68.8 18.99 13.4% 40.7% 133.0% 442.6% 211. 3% -4.5%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 232.7 50.40 0. 2% -15.4% -7.5% 110.4% 157. 1% -26.7%
G ameO n C o L td. JPY 3812 TS E 107.7 103, 400 -1.2% 1.5% -10.1% 14.3% -14. 0% -32.4%
G eoS entric Oyj E UR G E O1V H LS E 64.4 0.05 0. 0% 25.0% 25.0% 66.7% 0.0% -28.6%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 709.6 7.55 -2.6% -7.1% -11.0% 14.9% -8.8% -21.1%
G igaMedia L td. US D G IG M Nas da qG S 257.3 4.72 -0.2% -3.3% -24.1% -9.2% -56. 3% -61.2%
G ra vity C o., Ltd US D GR VY Nas da qG M 45.9 1.65 -31.0% 5.1% 50.0% 146.3% 11.5% -37.3%
G ree, Inc. JPY T S E :3632 TS E 1, 993.9 8, 270 -3.2% 8.1% 42.1% 73.7% NM -5.5%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 290.6 235, 500 -3.1% 14.4% -5.0% 101.3% 16.0% -15.9%
H anbitS oft, Inc. KR W A047080 K OS E 69.9 3, 975 4. 7% -9.0% -23.6% 30.3% 20.8% -40.1%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 452.1 18.52 -2.7% 0.6% 13.1% 27.6% 6.4% -5.3%
IAS E nergy, Inc. US D IA S A. E OT C B B 9.1 0.13 -13.3% 16.1% -43.5% 188.9% -40. 9% -53.6%
is eemedia Inc. C AD IE E T S XV 2.3 0.05 0. 0% -37.5% -37.5% -37.5% -68. 8% -73.7%
J umbuck E ntertainment P ty Ltd. AU D AS X: J MB AS X 15.2 0.37 -1.3% -2.6% -17.8% -17.8% -26. 0% -39.3%
K AB Dis tribution Inc. C AD T S X: K AB TS X 81.5 1 0. 0% 0.0% 4.9% 60.0% -8.6% -24.7%
K ings oft C o. L td. HK D 3888 S E HK 1, 177.6 8 -3.3% 7.0% 60.2% 224.8% 179. 3% -11.5%
L ingo Media C orpora tion C AD T S XV :LM T S XV 12.5 1.10 -1.8% -4.3% 8.9% 22.2% -40. 5% -42.7%
L iveW orld Inc. US D LV W D OT C P K 1.5 0.05 0. 0% 35.1% -37.5% 25.0% -77. 3% -80.0%
L ookS mart, L td. US D LO OK Nas da qG M 20.4 1.19 -7.0% 5.3% -9.2% 13.3% -60. 3% -63.5%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 4.5 0.01 53.8% 53.8% -23.1% -49.5% -28. 6% -66.7%
Mixi, Inc. JPY 2121 TS E 994.1 599,000.00 -2.4% -10.2% 27.4% 65.9% -22. 5% -35.0%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 683.9 290.00 -6.5% 7.8% 25.3% 131.5% -9.9% -18.2%
MO K O .mobi L imited AU D MK B AS X 5.5 0.08 5. 6% 15.4% 13.6% 50.0% 114. 3% -25.0%
Myriad G roup AG C HF MY R N S WX 86.8 4.31 -4.2% 4.1% -24.9% 2. 1% -54. 6% -56.5%
NE O W IZ G ames C orporation KR W A095660 K OS E 539.7 31,950.00 7. 8% 2.4% -15.9% 99.1% 218. 7% -23.9%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 395.5 5.80 -12.7% -5.7% 9.4% 104.2% 10.3% -18.9%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 434.6 41.99 -0.7% -4.7% 17.2% 100.8% 72.4% -10.5%
NeuLion Incorpora ted C AD T S X: NL N TS X 115.2 1.11 0. 9% 33.7% 48.0% 241.5% NM -14.6%
NeXplore C orpora tion US D NXP C OT C P K 31.2 0.56 -6.7% -20.0% -20.0% -13.8% 12.0% -61.4%
Ngi G roup Inc. JPY 2497 TS E 40.3 30,200.00 -6.8% -6.4% -17.0% 50.5% -66. 2% -76.3%
Northgate T echnologies Limited INR 590057 BSE 28.8 40.40 2. 5% 3.2% -18.2% 16.3% -85. 8% -87.1%
O pen T ext C orp. US D OT E X Nas da qG S 1, 974.8 35.17 -2.2% -6.8% 0.1% 14.7% 6.1% -12.5%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 230.8 2.77 -3.1% 5.3% 48.1% 229.8% 89.7% -11.5%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 876.3 38.15 -2.2% 6.7% 73.4% 261.6% 60.2% -9.0%
P NI Digital Media Inc. C AD T S XV :P N T S XV 56.0 1.80 7. 8% 20.0% 20.0% 20.0% -43. 8% -48.6%
Q uepa s a C orp. US D QP S A OT C B B 17.8 1.40 -6.7% 17.6% 37.3% 20.7% -58. 5% -59.5%
O AO R B C Information S ys tems US D R BCI R TS 145.7 1.05 0. 0% 16.7% 6.6% 238.7% -86. 2% -86.6%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 267.6 48.94 0. 4% -1.3% -19.0% 55.9% 76.0% -24.7%
S hutterfly, Inc. US D S F LY Nas da qG S 368.1 14.46 -4.6% -10.0% -1.3% 75.3% 44.9% -12.6%
S K C ommunications C o. , L td. KR W A066270 K OS E 312.8 9,300.00 -0.1% 0.8% -21.5% 46.7% -12. 3% -28.5%
S NA P Intera ctive, Inc. US D S TVI OT C B B 5.4 1 25.0% 150.0% -36.7% -47.4% -43. 8% -53.7%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.01 55.6% 40.0% 250.0% 600.0% -99. 0% -99.4%
S ocial Media V enures , Inc. US D S MV I OT C P K 0.0 0.11 0. 0% -73.8% 1000. 0% -90.8% -56. 0% -97.8%
S ocialwis e, Inc. US D S CLW OT C B B 27.4 0.62 3. 3% -18.3% -10.1% 47.6% -72. 4% -76.2%
S ohu.com Inc. US D S O HU Nas da qG S 2, 339.1 61.02 -5.4% -0.2% -6.5% 32.7% -10. 2% -21.3%
S pa rk Networks , Inc. US D LO V A ME X 48.8 2 10.4% -3.7% 1.3% -1.2% -44. 2% -46.9%
S pectrumDNA, Inc. US D S P XA OT C B B 10.7 0 -4.3% 57.1% -40.5% 131.6% -62. 7% -61.4%
T encent H oldings Ltd. HK D 700 S E HK 26,993. 3 115 -3.9% 10.2% 36.8% 153.4% 93.3% -6.0%
T he P a rent C ompany US D K IDS . Q OT C P K 0.3 0.01 -28.9% -6.7% -6.7% -12.5% -99. 2% -99.2%
T he9 L imited US D NC T Y Nas da qG S 188.2 7.50 -11.1% -13.8% -29.3% -25.8% -61. 3% -62.2%
T heS treet.com, Inc. US D TS CM Nas da qG M 76.5 2.50 8. 2% 20.2% 28.2% 35.1% -61. 5% -65.9%
T ota l S port Online A S NO K T OS O O T C NO 0.1 0.03 0. 0% 0.0% 0.0% -25.0% -40. 0% -40.0%
T ree.C om, Inc. US D TR E E Nas da qG M 76.6 7.09 -17.7% -29.0% -33.5% 67.6% -9.1% -45.8%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.0 0.05 0. 0% 0.0% -25.0% -10.0% -78. 6% -82.0%
U nited O nline Inc. US D UNT D Nas da qG S 586.0 6.99 -5.5% -23.9% -1.8% 55.7% -33. 2% -37.0%
U OMO Media, Inc US D UO MO OT C B B 13.7 0.16 6. 7% -5.9% -23.8% 128.6% -55. 6% -84.9%
V alueC lick Inc. US D V CLK Nas da qG S 893.3 10.25 -4.7% -10.9% -6.7% 71.4% -10. 9% -24.1%
V OIS , Inc. US D V O IS OT C B B 5.0 0.01 0. 0% 9.1% 71.4% -7.7% -72. 0% -73.9%
W ebzen Inc. US D W ZE N Nas da qG M 33.7 2.84 0. 7% -16.4% -36.9% 199.0% 30.9% -39.3%
W izzard S oftwa re C orporation US D W ZE A ME X 24.2 0.48 6. 7% -5.9% -14.3% 0. 0% -66. 0% -72.3%
W orlds .com Inc. US D W DDD OT C B B 6.3 0.12 9. 1% 0.0% -7.7% 0. 0% -45. 5% -65.7%
W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0. 0% NM 0.0% 0. 0% NM -96.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 233.3% -16.7% -83. 3% -83.3%
XING A G E UR O1B C XT R A 223.0 29.50 7. 3% 3.5% -10.2% 8. 9% -9.1% -16.9%
Y eda ngOnline C orp. KR W A052770 K OS E 107.1 8, 900 4. 1% 12.1% -14.4% 30.9% 30.7% -28.2%
Y nk K orea Inc. KR W A023770 K OS E 17.8 4, 160 2. 1% -22.0% -44.5% 23.8% -54. 6% -66.5%
H igh 150.0% 650.0% 1000. 0% 733.3% 483. 7% -3.5%
L ow -31.0% -73.8% -82.1% -90.8% -99. 2% -99.4%
Average 699.3 1.5% 11.2% 35.4% 79.2% -6.7% -47.9%
Media n -0.1% 0.0% -0.6% 41.2% -27. 3% -45.9%
United S tates 39 C hina 45, 458. 8 C hina 4,545. 9 C hina 4,093. 2 C hina 2, 038. 5 C hina 49. 2%
C a na da 10 U nited S ta tes 5, 088. 9 S weden 2,683. 9 United S tates 3,887. 3 S weden 296. 2 A us tralia 42. 8%
C hina 10 J a pan 3, 455. 9 J apan 576. 0 S weden 1,927. 9 United S tates 290. 4 T aiwan 36. 9%
S outh K orea 8 S weden 2, 683. 9 T aiwan 509. 4 C a na da 1,011. 1 C a na da 200. 1 G ermany 28. 8%
J a pa n 6 C anada 2, 348. 4 Hong K ong 249. 1 S outh K orea 684. 8 J a pa n 184. 4 J apan 24. 2%
T a iwa n 3 T a iwa n 1, 528. 2 C anada 234. 8 J a pa n 629. 3 S outh K orea 118. 0 S weden 15. 4%
Aus tralia 2 S outh K orea 1, 294. 5 S outh K orea 161. 8 T a iwa n 378. 4 T a iwa n 56. 0 Mala ys ia 14. 4%
G erma ny 2 G ermany 291. 8 Ita ly 150. 4 Hong K ong 361. 6 Ita ly 31. 1 Italy 13. 1%
S witzerla nd 1 Hong K ong 249. 1 G ermany 145. 9 Ita ly 236. 9 Hong K ong 25. 1 R us s ia 13. 1%
Hong K ong 1 Ita ly 150. 4 R us s ia 145. 7 R us s ia 148. 9 R us s ia 19. 5 S outh K orea 12. 7%
F inla nd 1 R us s ia 145. 7 U nited S ta tes 130. 5 India 81. 2 Ma lays ia 11. 0 Hong K ong 6. 9%
Ita ly 1 S witzerla nd 86. 8 S witzerla nd 86. 8 Ma lays ia 76. 1 G erma ny 10. 4 S witzerla nd 1. 9%
United K ingdom 1 F inland 64. 4 F inland 64. 4 G erma ny 60. 9 Aus tralia 4. 4 C anada -8. 5%
India 1 Malays ia 35. 8 Malays ia 35. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 28. 8 India 28. 8 Aus tralia 17. 4 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 20. 7 Aus tralia 10. 3 F inla nd 5. 3 United K ingdom -1. 8 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 4. 6 U nited K ingdom 4. 6 Norwa y 2. 2 F inla nd -17. 1 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 3 India -40. 6 F inland NA
G rand Total 90 G rand Total 62,936.8 G rand Total 699.3 G rand Total 13,642.9 G rand Total 3,225.3 G rand Total 6.0%
G rand Total 90 G rand Total 62,936.8 G rand Total 699.3 G rand Total 13,642.9 G rand Total 3,225.3 G rand Total 6.0%
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.
T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550
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